[Congressional Record (Bound Edition), Volume 152 (2006), Part 16]
[House]
[Pages 20743-21228]
[From the U.S. Government Publishing Office, www.gpo.gov]




     CONFERENCE REPORT ON H.R. 5122, JOHN WARNER NATIONAL DEFENSE 
                 AUTHORIZATION ACT FOR FISCAL YEAR 2007

  Mr. HUNTER of California (during consideration of H. Res. 1053) 
submitted the following conference report and statement on the bill 
(H.R. 5122) to authorize appropriations for fiscal year 2007 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes:

                  Conference Report (H. Rept. 109-702)

       The Committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     5122), to authorize appropriations for fiscal year 2007 for 
     military activities of the Department of Defense, for 
     military construction, and for defense activities of the 
     Department of Energy, to prescribe military personnel 
     strengths for such fiscal year, 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 proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; FINDINGS.

       (a) Short Title.--This Act may be cited as the ``John 
     Warner National Defense Authorization Act for Fiscal Year 
     2007''.
       (b) Findings.--Congress makes the following findings:
       (1) Senator John Warner of Virginia was elected a member of 
     the United States Senate on November 7, 1978, for a full term 
     beginning on January 3, 1979. He was subsequently appointed 
     by the Governor of Virginia to fill a vacancy on January 2, 
     1979, and has served continuously since that date. He was 
     appointed a member of the Committee on Armed Services in 
     January 1979, and has served continuously on the Committee 
     since that date, a period of nearly 28 years. Senator 
     Warner's service on the Committee represents nearly half of 
     its existence since it was established after World War II.
       (2) Senator Warner came to the Senate and the Committee on 
     Armed Services after a distinguished record of service to the 
     Nation, including combat service in the Armed Forces and high 
     civilian office.
       (3) Senator Warner enlisted in the United States Navy upon 
     graduation from high school in 1945, and served until the 
     summer of 1946, when he was discharged as a Petty Officer 3rd 
     Class. He then attended Washington and Lee University on the 
     G.I. Bill. He graduated in 1949 and entered the University of 
     Virginia Law School.
       (4) Upon the outbreak of the Korean War in 1950, Senator 
     Warner volunteered for active duty, interrupting his 
     education to accept a commission in the United States Marine 
     Corps. He served in combat in Korea as a ground officer in 
     the First Marine Air Wing. Following his active service, he 
     remained in the Marine Corps Reserve for several years, 
     attaining the rank of captain.
       (5) Senator Warner resumed his legal education upon 
     returning from the Korean War and graduated from the 
     University of Virginia Law School in 1953. He was selected by 
     the late Chief Judge E. Barrett Prettyman of the United 
     States Court of Appeals for the District of Columbia Circuit 
     as his law clerk. After his service to Judge Prettyman, 
     Senator Warner became an Assistant United States Attorney in 
     the District of Columbia, and later entered private law 
     practice.
       (6) In 1969, the Senate gave its advice and consent to the 
     appointment of Senator Warner as Under Secretary of the Navy. 
     He served in this position until 1972, when he was confirmed 
     and appointed as the 61st Secretary of the Navy since the 
     office was established in 1798. As Secretary, Senator Warner 
     was the principal United States negotiator and signatory of 
     the Incidents at Sea Executive Agreement with the Soviet 
     Union, which was signed in 1972 and remains in effect today. 
     It has served as the model

[[Page 20744]]

     for similar agreements between states covering the operation 
     of naval ships and aircraft in international sea lanes 
     throughout the world.
       (7) Senator Warner left the Department of the Navy in 1974. 
     His next public service was as Administrator of the American 
     Revolution Bicentennial Commission. In this capacity, he 
     coordinated the celebration of the Nation's founding, 
     directing the Federal role in all 50 States and in over 20 
     foreign nations.
       (8) Senator Warner has served as chairman of the Committee 
     on Armed Services of the United States Senate from 1999 to 
     2001, and again since January 2003. He served as ranking 
     minority member of the committee from 1987 to 1993, and again 
     from 2001 to 2003. Senator Warner concludes his service as 
     chairman at the end of the 109th Congress, but will remain a 
     member of the committee.
       (9) This Act is the twenty-eighth annual authorization Act 
     for the Department of Defense for which Senator Warner has 
     taken a major responsibility as a member of the Committee on 
     Armed Services of the United States Senate, and the 
     fourteenth for which he has exercised a leadership role as 
     chairman or ranking minority member of the committee.
       (10) Senator Warner, as seaman, Marine officer, Under 
     Secretary and Secretary of the Navy, and member, ranking 
     minority member, and chairman of the Committee on Armed 
     Services of the United States Senate, has made unique and 
     lasting contributions to the national security of the United 
     States.
       (11) It is altogether fitting and proper that this Act, the 
     last annual authorization Act for the national defense 
     managed by Senator Warner in and for the United States Senate 
     as chairman of the Committee on Armed Services, be named in 
     his honor, as provided in subsection (a).

     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; findings.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees.

            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.

                       Subtitle B--Army Programs

Sec. 111. Sense of Congress on future multiyear procurement authority 
              for Family of Medium Tactical Vehicles.
Sec. 112. Multiyear procurement authority for MH-60R helicopters and 
              mission equipment.
Sec. 113. Funding profile for Modular Force Initiative of the Army.
Sec. 114. Bridge to Future Networks program.
Sec. 115. Comptroller General report on the contract for the Future 
              Combat Systems program.
Sec. 116. Priority for allocation of replacement equipment to 
              operational units based on combat mission deployment 
              schedule.

                       Subtitle C--Navy Programs

Sec. 121. CVN-21 class aircraft carrier procurement.
Sec. 122. Adherence to Navy cost estimates for CVN-21 class of aircraft 
              carriers.
Sec. 123. Modification of limitation on total cost of procurement of 
              CVN-77 aircraft carrier.
Sec. 124. Construction of first two vessels under the DDG-1000 Next-
              Generation Destroyer program.
Sec. 125. Adherence to Navy cost estimates for LHA Replacement 
              amphibious assault ship program.
Sec. 126. Cost limitation for San Antonio (LPD-17) class amphibious 
              ship program.
Sec. 127. Multiyear procurement authority for V-22 tiltrotor aircraft 
              program.
Sec. 128. Alternative technologies for future surface combatants.
Sec. 129. Sense of Congress regarding the size of the attack submarine 
              force.
Sec. 130. Quality control in procurement of ship critical safety items 
              and related services.

                     Subtitle D--Air Force Programs

Sec. 131. Bomber force structure.
Sec. 132. Strategic airlift force structure.
Sec. 133. Limitation on retirement of U-2 aircraft.
Sec. 134. Multiyear procurement authority for F-22A Raptor fighter 
              aircraft.
Sec. 135. Limitation on retirement of KC-135E aircraft during fiscal 
              year 2007.
Sec. 136. Limitation on retirement of F-117A aircraft during fiscal 
              year 2007.
Sec. 137. Limitation on retirement of C-130E tactical airlift aircraft.
Sec. 138. Procurement of Joint Primary Aircraft Training System 
              aircraft after fiscal year 2006.
Sec. 139. Minuteman III intercontinental ballistic missile 
              modernization.

               Subtitle E--Joint and Multiservice Matters

Sec. 141. Clarification of limitation on initiation of new unmanned 
              aerial vehicle systems.

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

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Acquisition of, and independent cost analyses for, the Joint 
              Strike Fighter propulsion system.
Sec. 212. Expansion and extension of authority to award prizes for 
              advanced technology achievements.
Sec. 213. Defense Acquisition Challenge Program extension, enhancement, 
              and modification to address critical cost growth 
              threshold breaches in major defense acquisition programs.
Sec. 214. Future Combat Systems milestone review.
Sec. 215. Dedicated amounts for implementing or evaluating Navy 
              shipbuilding technology proposals under Defense 
              Acquisition Challenge Program.
Sec. 216. Independent estimate of costs of the Future Combat Systems.
Sec. 217. Funding of defense science and technology programs.
Sec. 218. Hypersonics development.
Sec. 219. Report on program for replacement of nuclear warheads on 
              certain Trident sea-launched ballistic missiles with 
              conventional warheads.

                  Subtitle C--Missile Defense Programs

Sec. 221. Fielding of ballistic missile defense capabilities.
Sec. 222. Limitation on use of funds for space-based interceptor.
Sec. 223. Policy of the United States on priorities in the development, 
              testing, and fielding of missile defense capabilities.
Sec. 224. One-year extension of Comptroller General assessments of 
              ballistic missile defense programs.
Sec. 225. Submittal of plans for test and evaluation of the operational 
              capability of the Ballistic Missile Defense System.
Sec. 226. Annual reports on transition of ballistic missile defense 
              programs to the military departments.

                       Subtitle D--Other Matters

Sec. 231. Policies and practices on test and evaluation to address 
              emerging acquisition approaches.
Sec. 232. Extension of requirement for Global Research Watch Program.
Sec. 233. Sense of Congress on technology sharing of Joint Strike 
              Fighter technology.
Sec. 234. Report on vehicle-based active protection systems for certain 
              battlefield threats.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense programs.

                  Subtitle B--Environmental Provisions

Sec. 311. Revision of requirement for unexploded ordnance program 
              manager.
Sec. 312. Funding of cooperative agreements under environmental 
              restoration program.
Sec. 313. Response plan for remediation of unexploded ordnance, 
              discarded military munitions, and munitions constituents.
Sec. 314. Research on effects of ocean disposal of munitions.
Sec. 315. Reimbursement of Environmental Protection Agency for certain 
              costs in connection with Moses Lake Wellfield Superfund 
              Site, Moses Lake, Washington.
Sec. 316. Transfer of Government-furnished uranium stored at Sequoyah 
              Fuels Corporation, Gore, Oklahoma.
Sec. 317. Extension of authority to grant exemptions to certain 
              requirements.
Sec. 318. National Academy of Sciences study on human exposure to 
              contaminated drinking water at Camp Lejeune, North 
              Carolina.

    Subtitle C--Program Requirements, Restrictions, and Limitations

Sec. 321. Limitation on financial management improvement and audit 
              initiatives within the Department of Defense.
Sec. 322. Funds for exhibits for the national museums of the Armed 
              Forces.
Sec. 323. Prioritization of funds for equipment readiness and strategic 
              capability.
Sec. 324. Limitation on deployment of Marine Corps Total Force System 
              to Navy.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Permanent exclusion of certain contract expenditures from 
              percentage limitation on the performance of depot-level 
              maintenance.

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Sec. 332. Minimum capital investment for certain depots.
Sec. 333. Extension of temporary authority for contractor performance 
              of security guard functions.

                          Subtitle E--Reports

Sec. 341. Report on Navy Fleet Response Plan.
Sec. 342. Report on Navy surface ship rotational crew programs.
Sec. 343. Report on Army live-fire ranges in Hawaii.
Sec. 344. Comptroller General report on joint standards and protocols 
              for access control systems at Department of Defense 
              installations.
Sec. 345. Comptroller General report on readiness of Army and Marine 
              Corps ground forces.
Sec. 346. Report on Air Force safety requirements for Air Force flight 
              training operations at Pueblo Memorial Airport, Colorado.
Sec. 347. Annual report on Personnel Security Investigations for 
              Industry and National Industrial Security Program.
Sec. 348. Five-year extension of annual report on training range 
              sustainment plan and training range inventory.
Sec. 349. Reports on withdrawal or diversion of equipment from reserve 
              units for support of reserve units being mobilized and 
              other units.

                       Subtitle F--Other Matters

Sec. 351. Department of Defense strategic policy on prepositioning of 
              materiel and equipment.
Sec. 352. Authority to make Department of Defense horses available for 
              adoption.
Sec. 353. Sale and use of proceeds of recyclable munitions materials.
Sec. 354. Recovery and transfer to Corporation for the Promotion of 
              Rifle Practice and Firearms Safety of certain firearms, 
              ammunition, and parts granted to foreign countries.
Sec. 355. Extension of Department of Defense telecommunications benefit 
              program.
Sec. 356. Extension of availability of funds for commemoration of 
              success of the Armed Forces in Operation Enduring Freedom 
              and Operation Iraqi Freedom.
Sec. 357. Capital security cost sharing.
Sec. 358. Utilization of fuel cells as back-up power systems in 
              Department of Defense operations.
Sec. 359. Improving Department of Defense support for civil 
              authorities.
Sec. 360. Energy efficiency in weapons platforms.
Sec. 361. Prioritization of funds within Navy mission operations, ship 
              maintenance, combat support forces, and weapons system 
              support.
Sec. 362. Provision of adequate storage space to secure personal 
              property outside of assigned military family housing 
              unit.
Sec. 363. Expansion of payment of replacement value of personal 
              property damaged during transport at Government expense.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum 
              levels.
Sec. 403. Additional authority for increases of Army and Marine Corps 
              active duty end strengths for fiscal years 2008 and 2009.

                       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 2007 limitation on number of non-dual status 
              technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on 
              active duty for operational support.

              Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

               Part I--Officer Personnel Policy Generally

Sec. 501. Military status of officers serving in certain intelligence 
              community positions.
Sec. 502. Extension of age for mandatory retirement for active-duty 
              general and flag officers.
Sec. 503. Increased mandatory retirement ages for reserve officers.
Sec. 504. Standardization of grade of senior dental officer of the Air 
              Force with that of senior dental officer of the Army.
Sec. 505. Management of chief warrant officers.
Sec. 506. Extension of temporary reduction of time-in-grade requirement 
              for eligibility for promotion for certain active-duty 
              list officers in grades of first lieutenant and 
              lieutenant (junior grade).
Sec. 507. Grade and exclusion from active-duty general and flag officer 
              distribution and strength limitations of officer serving 
              as Attending Physician to the Congress.
Sec. 508. Modification of qualifications for leadership of the Naval 
              Postgraduate School.

                   Part II--Officer Promotion Policy

Sec. 511. Revisions to authorities relating to authorized delays of 
              officer promotions.
Sec. 512. Consideration of adverse information by selection boards in 
              recommendations on officers to be promoted.
Sec. 513. Expanded authority for removal from reports of selection 
              boards of officers recommended for promotion to grades 
              below general and flag grades.
Sec. 514. Special selection board authorities.
Sec. 515. Removal from promotion list of officers not promoted within 
              18 months of approval of list by the President.

            Part III--Joint Officer Management Requirements

Sec. 516. Modification and enhancement of general authorities on 
              management of officers who are joint qualified.
Sec. 517. Modification of promotion policy objectives for joint 
              officers.
Sec. 518. Applicability of joint duty assignment requirements limited 
              to graduates of National Defense University schools.
Sec. 519. Modification of certain definitions relating to jointness.

                 Subtitle B--Reserve Component Matters

                  Part I--Reserve Component Management

Sec. 521. Recognition of former Representative G. V. `Sonny' Montgomery 
              for his 30 years of service in the House of 
              Representatives.
Sec. 522. Revisions to reserve call-up authority.
Sec. 523. Military retirement credit for certain service by National 
              Guard members performed while in a State duty status 
              immediately after the terrorist attacks of September 11, 
              2001.

        Part II--Authorities Relating to Guard and Reserve Duty

Sec. 524. Title 10 definition of Active Guard and Reserve duty.
Sec. 525. Authority for Active Guard and Reserve duties to include 
              support of operational missions assigned to the reserve 
              components and instruction and training of active-duty 
              personnel.
Sec. 526. Governor's authority to order members to Active Guard and 
              Reserve duty.
Sec. 527. Expansion of operations of civil support teams.
Sec. 528. Modification of authorities relating to the Commission on the 
              National Guard and Reserves.
Sec. 529. Additional matters to be reviewed by Commission on the 
              National Guard and Reserves.

                   Subtitle C--Education and Training

                       Part I--Service Academies

Sec. 531. Expansion of service academy exchange programs with foreign 
              military academies.
Sec. 532. Revision and clarification of requirements with respect to 
              surveys and reports concerning sexual harassment and 
              sexual violence at the service academies.
Sec. 533. Department of Defense policy on service academy and ROTC 
              graduates seeking to participate in professional sports 
              before completion of their active-duty service 
              obligations.

         Part II--Scholarship and Financial Assistance Programs

Sec. 535. Authority to permit members who participate in the guaranteed 
              reserve forces duty scholarship program to participate in 
              the health professions scholarship program and serve on 
              active duty.
Sec. 536. Detail of commissioned officers as students at medical 
              schools.
Sec. 537. Increase in maximum amount of repayment under education loan 
              repayment for officers in specified health professions.
Sec. 538. Health Professions Scholarship and Financial Assistance 
              Program for Active Service.

                     Part III--Junior ROTC Program

Sec. 539. Junior Reserve Officers' Training Corps instructor 
              qualifications.
Sec. 540. Expansion of members eligible to be employed to provide 
              Junior Reserve Officers' Training Corps instruction.
Sec. 541. Expansion of Junior Reserve Officers' Training Corps program.
Sec. 542. Review of legal status of Junior ROTC program.

             Part IV--Other Education and Training Programs

Sec. 543. Expanded eligibility for enlisted members for instruction at 
              Naval Postgraduate School.

[[Page 20746]]

                Subtitle D--General Service Authorities

Sec. 546. Test of utility of test preparation guides and education 
              programs in enhancing recruit candidate performance on 
              the Armed Services Vocational Aptitude Battery (ASVAB) 
              and Armed Forces Qualification Test (AFQT).
Sec. 547. Clarification of nondisclosure requirements applicable to 
              certain selection board proceedings.
Sec. 548. Report on extent of provision of timely notice of long-term 
              deployments.

                  Subtitle E--Military Justice Matters

Sec. 551. Applicability of Uniform Code of Military Justice to members 
              of the Armed Forces ordered to duty overseas in inactive 
              duty for training status.
Sec. 552. Clarification of application of Uniform Code of Military 
              Justice during a time of war.

                   Subtitle F--Decorations and Awards

Sec. 555. Authority for presentation of Medal of Honor Flag to living 
              Medal of Honor recipients and to living primary next-of-
              kin of deceased Medal of Honor recipients.
Sec. 556. Review of eligibility of prisoners of war for award of the 
              Purple Heart.
Sec. 557. Report on Department of Defense process for awarding 
              decorations.

               Subtitle G--Matters Relating to Casualties

Sec. 561. Authority for retention after separation from service of 
              assistive technology and devices provided while on active 
              duty.
Sec. 562. Transportation of remains of casualties dying in a theater of 
              combat operations.
Sec. 563.  Annual budget display of funds for POW/MIA activities of 
              Department of Defense.
Sec. 564. Military Severely Injured Center.
Sec. 565. Comprehensive review on procedures of the Department of 
              Defense on mortuary affairs.
Sec. 566. Additional elements of policy on casualty assistance to 
              survivors of military decedents.
Sec. 567.  Requirement for deploying military medical personnel to be 
              trained in preservation of remains under combat or 
              combat-related conditions.

     Subtitle H--Impact Aid and Defense Dependents Education System

Sec. 571. Enrollment in defense dependents' education system of 
              dependents of foreign military members assigned to 
              Supreme Headquarters Allied Powers, Europe.
Sec. 572. Continuation of authority to assist local educational 
              agencies that benefit dependents of members of the Armed 
              Forces and Department of Defense civilian employees.
Sec. 573. Impact aid for children with severe disabilities.
Sec. 574. Plan and authority to assist local educational agencies 
              experiencing growth in enrollment due to force structure 
              changes, relocation of military units, or base closures 
              and realignments.
Sec. 575. Pilot program on parent education to promote early childhood 
              education for dependent children affected by military 
              deployment or relocation of military units.

                Subtitle I--Armed Forces Retirement Home

Sec. 578. Report on leadership and management of the Armed Forces 
              Retirement Home.
Sec. 579. Report on Local Boards of Trustees of the Armed Forces 
              Retirement Home.

                          Subtitle J--Reports

Sec. 581. Report on personnel requirements for airborne assets 
              identified as Low-Density, High-Demand Airborne Assets.
Sec. 582. Report on feasibility of establishment of Military Entrance 
              Processing Command station on Guam.
Sec. 583. Inclusion in annual Department of Defense report on sexual 
              assaults of information on results of disciplinary 
              actions.
Sec. 584. Report on provision of electronic copy of military records on 
              discharge or release of members from the Armed Forces.
Sec. 585. Report on omission of social security account numbers from 
              military identification cards.
Sec. 586. Report on maintenance and protection of data held by the 
              Secretary of Defense as part of the Department of Defense 
              Joint Advertising, Market Research and Studies (JAMRS) 
              program.
Sec. 587. Comptroller General report on military conscientious 
              objectors.

                       Subtitle K--Other Matters

Sec. 591. Modification in Department of Defense contributions to 
              Military Retirement Fund.
Sec. 592. Revision in Government contributions to Medicare-Eligible 
              Retiree Health Care Fund.
Sec. 593. Dental Corps of the Navy Bureau of Medicine and Surgery.
Sec. 594. Permanent authority for presentation of recognition items for 
              recruitment and retention purposes.
Sec. 595. Persons authorized to administer enlistment and appointment 
              oaths.
Sec. 596. Military voting matters.
Sec. 597. Physical evaluation boards.
Sec. 598. Military ID cards for retiree dependents who are permanently 
              disabled.
Sec. 599. United States Marine Band and United States Marine Drum and 
              Bugle Corps.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2007 increase in military basic pay and reform of 
              basic pay rates.
Sec. 602. Increase in maximum rate of basic pay for general and flag 
              officer grades to conform to increase in pay cap for 
              Senior Executive Service personnel.
Sec. 603. One-year extension of prohibition against requiring certain 
              injured members to pay for meals provided by military 
              treatment facilities.
Sec. 604. Availability of second basic allowance for housing for 
              certain reserve component or retired members serving in 
              support of contingency operations.
Sec. 605. Extension of temporary continuation of housing allowance for 
              dependents of members dying on active duty to spouses who 
              are also members.
Sec. 606. Payment of full premium for coverage under Servicemembers' 
              Group Life Insurance program during service in Operation 
              Enduring Freedom or Operation Iraqi Freedom.
Sec. 607. Clarification of effective date of prohibition on 
              compensation for correspondence courses.
Sec. 608. Extension of pilot program on contributions to Thrift Savings 
              Plan for initial enlistees in the Army.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonus and special pay authorities for 
              reserve forces.
Sec. 612. Extension of certain bonus and special pay authorities for 
              health care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
              officers.
Sec. 614. Extension of authorities relating to payment of other bonuses 
              and special pays.
Sec. 615. Expansion of eligibility of dental officers for additional 
              special pay.
Sec. 616. Increase in maximum annual rate of special pay for Selected 
              Reserve health care professionals in critically short 
              wartime specialties.
Sec. 617. Expansion and enhancement of accession bonus authorities for 
              certain officers in health care specialities.
Sec. 618. Authority to provide lump sum payment of nuclear officer 
              incentive pay.
Sec. 619. Increase in maximum amount of nuclear career accession bonus.
Sec. 620. Increase in maximum amount of incentive bonus for transfer 
              between Armed Forces.
Sec. 621. Additional authorities and incentives to encourage retired 
              members and reserve component members to volunteer to 
              serve on active duty in high-demand, low-density 
              assignments.
Sec. 622. Accession bonus for members of the Armed Forces appointed as 
              commissioned officers after completing officer candidate 
              school.
Sec. 623. Modification of certain authorities applicable to the 
              targeted shaping of the Armed Forces.
Sec. 624. Enhancement of bonus to encourage certain persons to refer 
              other persons for enlistment in the Army.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for transportation of 
              family members incident to illness or injury of members.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Retired pay of general and flag officers to be based on rates 
              of basic pay provided by law.
Sec. 642. Inapplicability of retired pay multiplier maximum percentage 
              to certain service of members of the Armed Forces in 
              excess of 30 years.
Sec. 643. Military Survivor Benefit Plan beneficiaries under insurable 
              interest coverage.
Sec. 644. Modification of eligibility for commencement of authority for 
              optional annuities for dependents under the Survivor 
              Benefit Plan.
Sec. 645. Study of training costs, manning, operations tempo, and other 
              factors that affect retention of members of the Armed 
              Forces with special operations designations.

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    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 661. Treatment of price surcharges of certain merchandise sold at 
              commissary stores.
Sec. 662. Limitations on lease of non-excess Department of Defense 
              property for protection of morale, welfare, and 
              recreation activities and revenue.
Sec. 663. Report on cost effectiveness of purchasing commercial 
              insurance for commissary and exchange facilities and 
              facilities of other morale, welfare, and recreation 
              programs and nonappropriated fund instrumentalities.
Sec. 664. Study and report regarding access of disabled persons to 
              morale, welfare, and recreation facilities and 
              activities.

                       Subtitle F--Other Matters

Sec. 670. Limitations on terms of consumer credit extended to 
              servicemembers and dependents.
Sec. 671. Enhancement of authority to waive claims for overpayment of 
              pay and allowances and travel and transportation 
              allowances.
Sec. 672. Exception for notice to consumer reporting agencies regarding 
              debts or erroneous payments pending a decision to waive, 
              remit, or cancel.
Sec. 673. Expansion and enhancement of authority to remit or cancel 
              indebtedness of members and former members of the Armed 
              Forces incurred on active duty.
Sec. 674. Phased recovery of overpayments of pay made to members of the 
              uniformed services.
Sec. 675. Joint family support assistance program.
Sec. 676. Special working group on transition to civilian employment of 
              National Guard and Reserve members returning from 
              deployment in Operation Iraqi Freedom or Operation 
              Enduring Freedom.
Sec. 677. Audit of pay accounts of members of the Army evacuated from a 
              combat zone for inpatient care.
Sec. 678. Report on eligibility and provision of assignment incentive 
              pay.
Sec. 679. Sense of Congress calling for payment to World War II 
              veterans who survived Bataan Death March.

                   TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

Sec. 701. TRICARE coverage for forensic examination following sexual 
              assault or domestic violence.
Sec. 702. Authorization of anesthesia and other costs for dental care 
              for children and certain other patients.
Sec. 703. Improvements to descriptions of cancer screening for women.
Sec. 704. Prohibition on increases in certain health care costs for 
              members of the uniformed services.
Sec. 705. Demonstration project on coverage of selected over-the-
              counter drugs under the pharmacy benefits program.
Sec. 706. Expanded eligibility of Selected Reserve members under 
              TRICARE program.
Sec. 707. Relationship between the TRICARE program and employer-
              sponsored group health care plans.
Sec. 708. Temporary prohibition on increase in copayments under retail 
              pharmacy system of pharmacy benefits program.

                    Subtitle B--Studies and Reports

Sec. 711. Department of Defense task force on the future of military 
              health care.
Sec. 712. Study relating to chiropractic health care services.
Sec. 713. Comptroller General audits of Department of Defense health 
              care costs and cost-saving measures.
Sec. 714. Transfer of custody of the Air Force Health Study assets to 
              Medical Follow-up Agency.
Sec. 715. Study on allowing dependents of activated members of reserve 
              components to retain civilian health care coverage.
Sec. 716. Study of health effects of exposure to depleted uranium.
Sec. 717. Report and plan on services to military dependent children 
              with autism.
Sec. 718. Comptroller General study on Department of Defense pharmacy 
              benefits program.
Sec. 719. Review of Department of Defense medical quality improvement 
              program.
Sec. 720. Report on distribution of hemostatic agents for use in the 
              field.
Sec. 721. Longitudinal study on traumatic brain injury incurred by 
              members of the Armed Forces in Operation Iraqi Freedom 
              and Operation Enduring Freedom.

           Subtitle C--Planning, Programming, and Management

Sec. 731. Standardization of claims processing under TRICARE program 
              and Medicare program.
Sec. 732. Requirements for support of military treatment facilities by 
              civilian contractors under TRICARE.
Sec. 733. Standards and tracking of access to health care services for 
              wounded, injured, or ill servicemembers returning to the 
              United States from a combat zone.
Sec. 734. Disease and chronic care management.
Sec. 735. Additional elements of assessment of Department of Defense 
              task force on mental health relating to mental health of 
              members who were deployed in Operation Iraqi Freedom and 
              Operation Enduring Freedom.
Sec. 736. Additional authorized option periods for extension of current 
              contracts under TRICARE.
Sec. 737. Military vaccination matters.
Sec. 738. Enhanced mental health screening and services for members of 
              the Armed Forces.

                       Subtitle D--Other Matters

Sec. 741. Pilot projects on early diagnosis and treatment of post 
              traumatic stress disorder and other mental health 
              conditions.
Sec. 742. Requirement to certify and report on conversion of military 
              medical and dental positions to civilian medical and 
              dental positions.
Sec. 743. Three-year extension of joint incentives program on sharing 
              of health care resources by the Department of Defense and 
              Department of Veterans Affairs.
Sec. 744. Training curricula for family caregivers on care and 
              assistance for members and former members of the Armed 
              Forces with traumatic brain injury.
Sec. 745. Recognition of Representative Lane Evans upon his retirement 
              from the House of Representatives.

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

 Subtitle A--Provisions Relating to Major Defense Acquisition Programs

Sec. 801. Requirements management certification training program.
Sec. 802. Additional requirements relating to technical data rights.
Sec. 803. Study and report on revisions to Selected Acquisition Report 
              requirements.
Sec. 804. Biannual updates on implementation of acquisition reform in 
              the Department of Defense.
Sec. 805. Additional certification requirements for major defense 
              acquisition programs before proceeding to Milestone B.
Sec. 806. Original baseline estimate for major defense acquisition 
              programs.
Sec. 807. Lead system integrators.

             Subtitle B--Acquisition Policy and Management

Sec. 811. Time-certain development for Department of Defense 
              information technology business systems.
Sec. 812. Pilot program on time-certain development in acquisition of 
              major weapon systems.
Sec. 813. Establishment of Panel on Contracting Integrity.
Sec. 814. Linking of award and incentive fees to acquisition outcomes.
Sec. 815. Report on defense instruction relating to contractor 
              personnel authorized to accompany Armed Forces.
Sec. 816. Major automated information system programs.
Sec. 817. Internal controls for procurements on behalf of the 
              Department of Defense by certain non-defense agencies.
Sec. 818. Determination of contract type for development programs.
Sec. 819. Three-year extension of requirement for reports on commercial 
              price trend analyses of the Department of Defense.
Sec. 820. Government performance of critical acquisition functions.

Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 831. One-year extension of special temporary contract closeout 
              authority.
Sec. 832. Limitation on contracts for the acquisition of certain 
              services.
Sec. 833. Use of Federal supply schedules by State and local 
              governments for goods and services for recovery from 
              natural disasters, terrorism, or nuclear, biological, 
              chemical, or radiological attack.
Sec. 834. Waivers to extend task order contracts for advisory and 
              assistance services.

      Subtitle D--United States Defense Industrial Base Provisions

Sec. 841. Assessment and annual report of United States defense 
              industrial base capabilities and acquisitions of 
              articles, materials, and supplies manufactured outside 
              the United States.
Sec. 842. Protection of strategic materials critical to national 
              security.
Sec. 843. Strategic Materials Protection Board.

                       Subtitle E--Other Matters

Sec. 851. Report on former Department of Defense officials employed by 
              contractors of the Department of Defense.

[[Page 20748]]

Sec. 852. Report and regulations on excessive pass-through charges.
Sec. 853. Program manager empowerment and accountability.
Sec. 854. Joint policies on requirements definition, contingency 
              program management, and contingency contracting.
Sec. 855. Clarification of authority to carry out certain prototype 
              projects.
Sec. 856. Contracting with employers of persons with disabilities.
Sec. 857. Enhanced access for small business.
Sec. 858. Procurement goal for Hispanic-serving institutions.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Increase in authorized number of Assistant Secretaries of 
              Defense.
Sec. 902. Modifications to the Combatant Commander Initiative Fund.
Sec. 903. Addition to membership of specified council.
Sec. 904. Consolidation and standardization of authorities relating to 
              Department of Defense Regional Centers for Security 
              Studies.
Sec. 905. Oversight by Office of Under Secretary of Defense for 
              Acquisition, Technology, and Logistics of exercise of 
              acquisition authority by combatant commanders and heads 
              of Defense Agencies.
Sec. 906. Standardization of statutory references to ``national 
              security system'' within laws applicable to Department of 
              Defense.
Sec. 907. Correction of reference to predecessor of Defense Information 
              Systems Agency.

                      Subtitle B--Space Activities

Sec. 911. Designation of successor organizations for the disestablished 
              Interagency Global Positioning Executive Board.
Sec. 912.  Extension of authority for pilot program for provision of 
              space surveillance network services to non-United States 
              Government entities.
Sec. 913. Operationally responsive space.
Sec. 914. Independent review and assessment of Department of Defense 
              organization and management for national security in 
              space.

             Subtitle C--Chemical Demilitarization Program

Sec. 921. Sense of Congress on completion of destruction of United 
              States chemical weapons stockpile.
Sec. 922. Comptroller General review of cost-benefit analysis of off-
              site versus on-site treatment and disposal of hydrolysate 
              derived from neutralization of VX nerve gas at Newport 
              Chemical Depot, Indiana.
Sec. 923. Incentives clauses in chemical demilitarization contracts.
Sec. 924. Chemical demilitarization program contracting authority.

                Subtitle D--Intelligence-Related Matters

Sec. 931. Four-year extension of authority of Secretary of Defense to 
              engage in commercial activities as security for 
              intelligence collection activities.
Sec. 932. Annual reports on intelligence oversight activities of the 
              Department of Defense.
Sec. 933. Collection by National Security Agency of service charges for 
              certification or validation of information assurance 
              products.

                       Subtitle E--Other Matters

Sec. 941. Department of Defense policy on unmanned systems.
Sec. 942. Executive Schedule level IV for Deputy Under Secretary of 
              Defense for Logistics and Materiel Readiness.
Sec. 943. Study and report on reform of Defense Travel System.
Sec. 944. Administration of pilot project on Civilian Linguist Reserve 
              Corps.
Sec. 945. Improvement of authorities on the National Security Education 
              Program.
Sec. 946. Report on the posture of United States Special Operations 
              Command to conduct the global war on terrorism.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. Authorization of additional emergency supplemental 
              appropriations for fiscal year 2006.
Sec. 1003. Reduction in certain authorizations due to savings relating 
              to lower inflation.
Sec. 1004. Increase in fiscal year 2006 general transfer authority.
Sec. 1005. United States contribution to NATO common-funded budgets in 
              fiscal year 2007.
Sec. 1006. Report on budgeting for fluctuations in fuel cost rates.
Sec. 1007. Modification of date of submittal of OMB/CBO report on 
              scoring of outlays.
Sec. 1008. Budgeting for ongoing military operations in Afghanistan and 
              Iraq.

          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Aircraft carrier force structure.
Sec. 1012. Sense of Congress on naming the CVN-78 aircraft carrier as 
              the U.S.S. Gerald R. Ford.
Sec. 1013. Transfer of naval vessels to foreign nations based upon 
              vessel class.
Sec. 1014. Overhaul, repair, and maintenance of vessels in foreign 
              shipyards.
Sec. 1015. Report on options for future lease arrangement for Guam 
              Shipyard.
Sec. 1016. Assessments of naval vessel construction efficiencies and of 
              effectiveness of special contractor incentives.
Sec. 1017. Obtaining carriage by vessel: criterion regarding overhaul, 
              repair, and maintenance of vessels in the United States.
Sec. 1018. Riding gang member requirements.
Sec. 1019. Authority to transfer SS Arthur M. Huddell to the Government 
              of Greece.

                  Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority of Department of Defense to provide 
              additional support for counterdrug activities of other 
              governmental agencies.
Sec. 1022. Extension and expansion of Department of Defense authority 
              to provide support for counter-drug activities of certain 
              foreign governments.
Sec. 1023. Extension of authority to support unified counterdrug and 
              counterterrorism campaign in Colombia.
Sec. 1024. Continuation of reporting requirement regarding Department 
              of Defense expenditures to support foreign counterdrug 
              activities.
Sec. 1025. Report on interagency counter-narcotics plan for Afghanistan 
              and South and Central Asian regions.
Sec. 1026. Report on United States support for Operation Bahamas, Turks 
              & Caicos.

         Subtitle D--Force Structure and Defense Policy Matters

Sec. 1031. Improvements to Quadrennial Defense Review.
Sec. 1032. Quarterly reports on implementation of 2006 Quadrennial 
              Defense Review Report.
Sec. 1033. Report on feasibility of establishing a regional combatant 
              command for Africa.
Sec. 1034. Determination of Department of Defense intratheater and 
              intertheater airlift requirements and sealift mobility 
              requirements.
Sec. 1035. Presidential report on improving interagency support for 
              United States 21st century national security missions and 
              interagency operations in support of stability, security, 
              transition, and reconstruction operations.

                          Subtitle E--Reports

Sec. 1041. Additional element in annual report on chemical and 
              biological warfare defense.
Sec. 1042. Report on biodefense human capital requirements in support 
              of biosafety laboratories.
Sec. 1043. Report on technologies for neutralizing or defeating threats 
              to military rotary-wing aircraft from portable air 
              defense systems and rocket-propelled grenades.
Sec. 1044. Reports on expanded use of unmanned aerial vehicles in the 
              National Airspace System.
Sec. 1045. Report on incentives to encourage certain members and former 
              members of the Armed Forces to serve in the Bureau of 
              Customs and Border Protection.
Sec. 1046. Repeal of certain report requirements.
Sec. 1047. Requirement for identification of recently enacted recurring 
              reporting requirements applicable to the Department of 
              Defense.

 Subtitle F--Miscellaneous Authorities and Limitations on Availability 
                            and Use of Funds

Sec. 1051. Acceptance and retention of reimbursement from non-Federal 
              sources to defray Department of Defense costs of 
              conferences.
Sec. 1052. Increased flexibility in use of funds for Joint Staff 
              exercises.
Sec. 1053. Prohibition on parking of funds.
Sec. 1054. Modification of authorities relating to the Special 
              Inspector General for Iraq Reconstruction.

                Subtitle G--Matters Involving Detainees

Sec. 1061. Provision of information to Congress on certain criminal 
              investigations and prosecutions involving detainees.

                       Subtitle H--Other Matters

Sec. 1071. Technical and clerical amendments.
Sec. 1072. Revision to authorities relating to Commission on the 
              Implementation of the New Strategic Posture of the United 
              States.
Sec. 1073. Revised deadline for submission of final report of EMP 
              Commission.
Sec. 1074. Extension of returning worker exemption to H-2B numerical 
              limitation.
Sec. 1075. Patent term extensions for the badges of the American 
              Legion, the American Legion Women's Auxiliary, and the 
              Sons of the American Legion.
Sec. 1076. Use of the Armed Forces in major public emergencies.

[[Page 20749]]

Sec. 1077. Increased hunting and fishing opportunities for members of 
              the Armed Forces, retired members, and disabled veterans.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Accrual of annual leave for members of the uniformed 
              services performing dual employment.
Sec. 1102. Strategy for improving the senior management, functional, 
              and technical workforce of the Department of Defense.
Sec. 1103. Three-year extension of authority for experimental personnel 
              management program for scientific and technical 
              personnel.
Sec. 1104. Reports on members of the Armed Forces and civilian 
              employees of the Department of Defense serving in the 
              legislative branch.
Sec. 1105. Extension of authority to waive annual limitation on total 
              compensation paid to Federal civilian employees.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                  Subtitle A--Assistance and Training

Sec. 1201. Logistic support for allied forces participating in combined 
              operations.
Sec. 1202. Temporary authority to use acquisition and cross-servicing 
              agreements to lend certain military equipment to foreign 
              forces in Iraq and Afghanistan for personnel protection 
              and survivability.
Sec. 1203. Recodification and revision to law relating to Department of 
              Defense humanitarian demining assistance.
Sec. 1204. Enhancements to Regional Defense Combating Terrorism 
              Fellowship Program.
Sec. 1205. Participation of the Department of Defense in multinational 
              military centers of excellence.
Sec. 1206. Modification and extension of authorities relating to 
              program to build the capacity of foreign military forces.
Sec. 1207. Authority for distribution to certain foreign personnel of 
              education and training materials and information 
              technology to enhance military interoperability.

     Subtitle B--Nonproliferation Matters and Countries of Concern

Sec. 1211. North Korea.
Sec. 1212. Report on participation of multinational partners in the 
              United Nations Command in the Republic of Korea.
Sec. 1213. Intelligence on Iran.
Sec. 1214. Sense of Congress on United States policy on the nuclear 
              programs of Iran.

                       Subtitle C--Other Matters

Sec. 1221. Exclusion of petroleum, oil, and lubricants from limitations 
              on annual amount of liabilities the United States may 
              accrue under acquisition and cross-servicing agreements.
Sec. 1222. Modification of limitations on assistance under the American 
              Servicemembers' Protection Act of 2002.
Sec. 1223. Humanitarian support for Iraqi children in urgent need of 
              medical care.
Sec. 1224. Sense of Congress opposing the granting of amnesty by the 
              government of Iraq to persons known to have attacked, 
              killed, or wounded members of the United States Armed 
              Forces in Iraq.
Sec. 1225. Annual reports on United States contributions to the United 
              Nations.
Sec. 1226. Comprehensive regional strategy and annual reports on 
              Somalia.
Sec. 1227. Report on the implementation of the Darfur Peace Agreement.
Sec. 1228. Sense of Congress concerning cooperation with Russia on 
              issues pertaining to missile defense.
Sec. 1229. Sense of Congress calling for convening of a summit for a 
              comprehensive political agreement for Iraq.
Sec. 1230. Sense of Congress on the commendable actions of the Armed 
              Forces in Iraq.
Sec. 1231. Annual report on foreign sales of significant military 
              equipment manufactured in the United States.

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1302. Funding allocations.
Sec. 1303. Extension of temporary authority to waive limitation on 
              funding for chemical weapons destruction facility in 
              Russia.
Sec. 1304. National Academy of Sciences study of prevention of 
              proliferation of biological weapons.

  TITLE XIV--MATTERS RELATED TO DEFENSE AGAINST TERRORISM AND RELATED 
                            SECURITY MATTERS

Sec. 1401. Enhancement to authority to pay rewards for assistance in 
              combating terrorism.
Sec. 1402. Quarterly reports on Department of Defense response to 
              threat posed by improvised explosive devices.
Sec. 1403. Requirement that all military wheeled vehicles used in Iraq 
              and Afghanistan outside of secure military operating 
              bases be protected by Improvised Explosive Device (IED) 
              jammers.
Sec. 1404. Report on assessment process of Chairman of the Joint Chiefs 
              of Staff relating to Global War on Terrorism.
Sec. 1405. Treatment under Freedom of Information Act of certain 
              confidential information shared with State and local 
              personnel.
Sec. 1406. Database of emergency response capabilities.

  TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM

Sec. 1501. Purpose.
Sec. 1502. Army procurement.
Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Air Force procurement.
Sec. 1505. Defense-wide activities procurement.
Sec. 1506. Research, development, test and evaluation.
Sec. 1507. Operation and maintenance.
Sec. 1508. Defense Health Program.
Sec. 1509. Classified programs.
Sec. 1510. Military personnel.
Sec. 1511. Treatment as additional authorizations.
Sec. 1512. Transfer authority.
Sec. 1513. Availability of funds.
Sec. 1514. Joint Improvised Explosive Device Defeat Fund.
Sec. 1515. Iraq Freedom Fund.
Sec. 1516. Iraq Security Forces Fund.
Sec. 1517. Afghanistan Security Forces Fund.
Sec. 1518. Submittal to Congress of Department of Defense supplemental 
              and cost of war execution reports.
Sec. 1519. Limitation on availability of funds for certain purposes 
              relating to Iraq.
Sec. 1520. Intelligence Community Management Account.

           DIVISION  B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title
Sec. 2002. Recognition of Representative Joel Hefley upon his 
              retirement from the House of Representatives.

                            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

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 
              2004, 2005, and 2006 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. Modification of authority to carry out certain fiscal year 
              2006 project.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Family housing.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorized base closure and realignment activities funded 
              through Department of Defense Base Closure Account 2005.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Modification of authority to carry out certain fiscal year 
              2006 project.

   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

        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 2004 
              projects.

[[Page 20750]]

Sec. 2703. Extension of authorizations of certain fiscal year 2003 
              projects.
Sec. 2704. Effective date.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

Sec. 2801. Increase in maximum annual amount authorized to be obligated 
              for emergency military construction.
Sec. 2802. One-year extension of temporary, limited authority to use 
              operation and maintenance funds for construction projects 
              outside the United States.
Sec. 2803. Repeal of requirement to determine availability of suitable 
              alternative housing for acquisition in lieu of 
              construction of new family housing.
Sec. 2804. Authority to continue to occupy leased family housing for 
              United States Southern Command personnel.
Sec. 2805. Consideration of alternative and more efficient uses for 
              general officer and flag officer quarters in excess of 
              6,000 square feet.
Sec. 2806. Modification of notification requirements related to cost 
              variation authority.
Sec. 2807. Consideration of local comparability of floor areas in 
              construction, acquisition, and improvement of military 
              unaccompanied housing.
Sec. 2808. Certification required for military construction projects 
              for facilities designed to provide training in urban 
              operations.
Sec. 2809. Authority to carry out military construction projects in 
              connection with industrial facility investment program.
Sec. 2810. Repeal of special requirement for military construction 
              contracts on Guam.
Sec. 2811. Temporary expansion of authority to convey property at 
              military installations to support military construction.
Sec. 2812. Pilot projects for acquisition or construction of military 
              unaccompanied housing.

        Subtitle B--Real Property and Facilities Administration

Sec. 2821. Congressional notice requirements, in advance of acquisition 
              of land by condemnation for military purposes.
Sec. 2822. Consolidation of Department of Defense authorities regarding 
              granting of easements for rights-of-way.
Sec. 2823. Authority to grant restrictive easements for conservation 
              purposes in connection with land conveyances.
Sec. 2824. Maximum term of leases for structures and real property 
              relating to structures in foreign countries needed for 
              purposes other than family housing.
Sec. 2825. Consolidation of laws relating to transfer of Department of 
              Defense real property within the Department of Defense 
              and to other Federal agencies.
Sec. 2826. Defense access road program.
Sec. 2827. Reports on Army operational ranges.

                Subtitle C--Base Closure and Realignment

Sec. 2831. Modification of deposit requirements in connection with 
              lease proceeds received at military installations 
              approved for closure or realignment after January 1, 
              2005.
Sec. 2832. Report on Air Force and Air National Guard bases affected by 
              2005 round of defense base closure and realignment.

                      Subtitle D--Land Conveyances

Sec. 2841. Conveyance of easement, Pine Bluff Arsenal, Arkansas.
Sec. 2842. Modification of land transfer authority, Potomac Annex, 
              District of Columbia.
Sec. 2843. Land conveyance, Naval Air Station, Barbers Point, Hawaii.
Sec. 2844. Land conveyances, Omaha, Nebraska.
Sec. 2845. Land conveyance, Hopkinton, New Hampshire.
Sec. 2846. Land conveyance, North Hills Army Reserve Center, Allison 
              Park, Pennsylvania.
Sec. 2847. Transfer of jurisdiction, Fort Jackson, South Carolina.
Sec. 2848. Sense of Congress regarding land conveyance involving Army 
              Reserve Center, Marshall, Texas.
Sec. 2849. Modifications to land conveyance authority, Engineering 
              Proving Ground, Fort Belvoir, Virginia.
Sec. 2850. Land conveyance, Radford Army Ammunition Plant, New River 
              Unit, Virginia.

                      Subtitle E--Energy Security

Sec. 2851. Consolidation and enhancement of laws to improve Department 
              of Defense energy efficiency and conservation.
Sec. 2852. Department of Defense goal regarding use of renewable energy 
              to meet electricity needs.
Sec. 2853. Congressional notification of cancellation ceiling for 
              Department of Defense energy savings performance 
              contracts.
Sec. 2854. Use of energy efficiency products in new construction.

                       Subtitle F--Other Matters

Sec. 2861. Availability of research and technical assistance under 
              Defense Economic Adjustment Program.
Sec. 2862. Availability of community planning assistance relating to 
              encroachment of civilian communities on military 
              facilities used for training by the Armed Forces.
Sec. 2863. Prohibitions against making certain military airfields or 
              facilities available for use by civil aircraft.
Sec. 2864. Modification of certain transportation projects.
Sec. 2865. Availability of funds for South County Commuter Rail 
              project, Providence, Rhode Island.
Sec. 2866. Fox Point Hurricane Barrier, Providence, Rhode Island.
Sec. 2867. Federal funding for fixed guideway projects.
Sec. 2868. Feasibility study regarding use of General Services 
              Administration property for Fort Belvoir, Virginia, 
              realignment.

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 cleanup.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Plan for transformation of National Nuclear Security 
              Administration nuclear weapons complex.
Sec. 3112. Extension of Facilities and Infrastructure Recapitalization 
              Program.
Sec. 3113. Utilization of contributions to Global Threat Reduction 
              Initiative.
Sec. 3114. Utilization of contributions to Second Line of Defense 
              program.
Sec. 3115. Two-year extension of authority for appointment of certain 
              scientific, engineering, and technical personnel.
Sec. 3116. National Academy of Sciences study of quantification of 
              margins and uncertainty methodology for assessing and 
              certifying the safety and reliability of the nuclear 
              stockpile.
Sec. 3117. Consolidation of counterintelligence programs of Department 
              of Energy and National Nuclear Security Administration.
Sec. 3118. Notice-and-wait requirement applicable to certain third-
              party financing arrangements.
Sec. 3119. Extension of deadline for transfer of lands to Los Alamos 
              County, New Mexico, and of lands in trust for the Pueblo 
              of San Ildefonso.
Sec. 3120. Limitations on availability of funds for Waste Treatment and 
              Immobilization Plant.
Sec. 3121. Report on Russian Surplus Fissile Materials Disposition 
              Program.
Sec. 3122. Limitation on availability of funds for construction of MOX 
              Fuel Fabrication Facility.
Sec. 3123. Education of future nuclear engineers.
Sec. 3124. Technical correction related to authorization of 
              appropriations for fiscal year 2006.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revisions to required receipt objectives for previously 
              authorized disposals from National Defense Stockpile.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2007.
Sec. 3502. Amendments relating to the Maritime Security Fleet program.
Sec. 3503. Applicability to certain Maritime Administration vessels of 
              limitations on overhaul, repair, and maintenance of 
              vessels in foreign shipyards.
Sec. 3504. Vessel transfer authority.
Sec. 3505. United States Merchant Marine Academy graduates: service 
              requirements.
Sec. 3506. United States Merchant Marine Academy graduates: service 
              obligation performance reporting requirement.

[[Page 20751]]

Sec. 3507. Temporary authority to transfer obsolete combatant vessels 
              to Navy for disposal.
Sec. 3508. Qualifying Reserve duty for receipt of student incentive 
              payments.
Sec. 3509. Large passenger ship crew requirements.
Sec. 3510. Miscellaneous Maritime Administration provisions.

     SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

       For purposes of this Act, the term ``congressional defense 
     committees'' has the meaning given that term in section 
     101(a)(16) of title 10, United States Code.
            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

 101. Army.
 102. Navy and Marine Corps.
 103. Air Force.
 104. Defense-wide activities.

                       Subtitle B--Army Programs

 111. Sense of Congress on future multiyear procurement authority for 
              Family of Medium Tactical Vehicles.
 112. Multiyear procurement authority for MH-60R helicopters and 
              mission equipment.
 113. Funding profile for Modular Force Initiative of the Army.
 114. Bridge to Future Networks program.
 115. Comptroller General report on the contract for the Future Combat 
              Systems program.
 116. Priority for allocation of replacement equipment to operational 
              units based on combat mission deployment schedule.

                       Subtitle C--Navy Programs

 121. CVN-21 class aircraft carrier procurement.
 122. Adherence to Navy cost estimates for CVN-21 class of aircraft 
              carriers.
 123. Modification of limitation on total cost of procurement of CVN-77 
              aircraft carrier.
 124. Construction of first two vessels under the DDG-1000 Next-
              Generation Destroyer program.
 125. Adherence to Navy cost estimates for LHA Replacement amphibious 
              assault ship program.
 126. Cost limitation for San Antonio (LPD-17) class amphibious ship 
              program.
 127. Multiyear procurement authority for V-22 tiltrotor aircraft 
              program.
 128. Alternative technologies for future surface combatants.
 129. Sense of Congress regarding the size of the attack submarine 
              force.
 130. Quality control in procurement of ship critical safety items and 
              related services.

                     Subtitle D--Air Force Programs

 131. Bomber force structure.
 132. Strategic airlift force structure.
 133. Limitation on retirement of U-2 aircraft.
 134. Multiyear procurement authority for F-22A Raptor fighter 
              aircraft.
 135. Limitation on retirement of KC-135E aircraft during fiscal year 
              2007.
 136. Limitation on retirement of F-117A aircraft during fiscal year 
              2007.
 137. Limitation on retirement of C-130E tactical airlift aircraft.
 138. Procurement of Joint Primary Aircraft Training System aircraft 
              after fiscal year 2006.
 139. Minuteman III intercontinental ballistic missile modernization.

               Subtitle E--Joint and Multiservice Matters

 141. Clarification of limitation on initiation of new unmanned aerial 
              vehicle systems.
              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2007 for procurement for the Army as follows:
       (1) For aircraft, $3,451,429,000.
       (2) For missiles, $1,328,859,000.
       (3) For weapons and tracked combat vehicles, 
     $2,278,604,000.
       (4) For ammunition, $1,984,325,000.
       (5) For other procurement, $7,687,502,000.
       (6) For National Guard Equipment, $318,000,000.

     SEC. 102. NAVY AND MARINE CORPS.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 2007 for procurement for the Navy as follows:
       (1) For aircraft, $10,734,071,000.
       (2) For weapons, including missiles and torpedoes, 
     $2,549,020,000.
       (3) For shipbuilding and conversion, $11,021,553,000.
       (4) For other procurement, $4,995,033,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 2007 for procurement for the 
     Marine Corps in the amount of $1,253,813,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for fiscal year 2007 for 
     procurement of ammunition for the Navy and the Marine Corps 
     in the amount of $797,943,000.

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2007 for procurement for the Air Force as follows:
       (1) For aircraft, $12,179,154,000.
       (2) For ammunition, $1,072,749,000.
       (3) For missiles, $4,171,886,000.
       (4) For other procurement, $15,443,286,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2007 for Defense-wide procurement in the amount of 
     $2,886,361,000.
                       Subtitle B--Army Programs

     SEC. 111. SENSE OF CONGRESS ON FUTURE MULTIYEAR PROCUREMENT 
                   AUTHORITY FOR FAMILY OF MEDIUM TACTICAL 
                   VEHICLES.

       (a) Future Acquisition Strategy.--It is the sense of 
     Congress that, as part of the Army's planning, programming, 
     and budgeting process for fiscal year 2008, the Secretary of 
     the Army should request from Congress authority by law to 
     enter into a multiyear procurement (MYP) contract for the 
     Family of Medium Tactical Vehicles (FMTV) program and that, 
     in support of such request, the Secretary should submit to 
     Congress the necessary justification materials required by 
     law to justify a multiyear procurement (MYP) contract, 
     including the material required by section 2306b of title 10, 
     United States Code.
       (b) Incorporation of Product Improvements.--It is the sense 
     of Congress that any proposal by the Secretary of the Army 
     for multiyear procurement authority for procurement of 
     vehicles under the Family of Medium Tactical Vehicles program 
     should provide for incorporation into the vehicles to be 
     procured through such authority of improvements from--
       (1) lessons learned from operations involving the Global 
     War on Terrorism; and
       (2) product improvement programs carried out for the Family 
     of Medium Tactical Vehicles program in the areas of force 
     protection, survivability, reliability, network 
     communications, situational awareness, and safety.

     SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR MH-60R 
                   HELICOPTERS AND MISSION EQUIPMENT.

       (a) MH-60R Helicopter.--Subject to subsection (c), the 
     Secretary of the Army, acting as executive agent for the 
     Department of the Navy, may enter into a multiyear contract 
     for the procurement of MH-60R helicopters.
       (b) MH-60R Helicopter Mission Equipment.--Subject to 
     subsection (c), the Secretary of the Navy may enter into a 
     multiyear contract for the procurement of MH-60R helicopter 
     mission equipment for the helicopters covered by a multiyear 
     contract under subsection (a).
       (c) Contract Requirements.--Any multiyear contract under 
     this section--
       (1) shall be entered into in accordance with section 2306b 
     of title 10, United States Code, and shall commence with the 
     fiscal year 2007 program year; and
       (2) shall provide that any obligation of the United States 
     to make a payment under the contract is subject to the 
     availability of appropriations for that purpose.

     SEC. 113. FUNDING PROFILE FOR MODULAR FORCE INITIATIVE OF THE 
                   ARMY.

       The Secretary of the Army shall set forth in the budget 
     presentation materials of the Army submitted to Congress in 
     support of the President's budget for any fiscal year after 
     fiscal year 2007, and in other relevant materials submitted 
     to Congress with respect to the budget of the Army for any 
     such fiscal year, all amounts for procurement for the M1A2 
     Abrams tank System Enhancement Program (SEP) and for the 
     Bradley A3 fighting vehicle as elements within the amounts 
     requested for the Modular Force Initiative of the Army, in 
     accordance with the report of the Army titled ``The Army 
     Modular Force Initiative'', submitted to Congress in March 
     2006.

     SEC. 114. BRIDGE TO FUTURE NETWORKS PROGRAM.

       (a) Limitation on Fiscal Year 2007 Amount.--Of the amount 
     authorized to be appropriated for the Army for fiscal year 
     2007 for Other Procurement, Army, that is available for the 
     program of the Army designated as the Bridge to Future 
     Networks, not more than 75 percent shall be made available 
     for obligation until the Secretary of the Army submits to the 
     congressional defense committees a report on that program 
     that includes the matters specified in subsection (b).
       (b) Matters to Be Included.--The report under subsection 
     (a) shall include the following:
       (1) An analysis of how the systems specified in subsection 
     (c) will fit together, including, for each such system, an 
     analysis of whether there are opportunities to leverage 
     technologies and equipment from that system as part of the 
     development of the other systems.
       (2) A description of the extent to which components of the 
     systems specified in subsection (c) could be used together as 
     elements of a single tactical network.
       (3) A description of the strategy of the Army for 
     completing the systems engineering necessary to ensure the 
     end-to-end interoperability of a single tactical network 
     referred to in paragraph (2).
       (4) An assessment of the costs of acquiring each of the 
     systems specified in subsection (c).
       (5) An assessment of the technical compatibility of the 
     systems specified in subsection (c).
       (6) A description of the plans of the Army for fielding the 
     systems specified in subsection (c).
       (7) A description of the plans of the Army for sustaining 
     the Joint Network Node through fiscal year 2020 and an 
     assessment of the need to upgrade its technologies and 
     equipment.
       (8) A description of the plans of the Army for the 
     insertion of new technology into the Joint Network Node.
       (c) Specified Systems.--The systems referred to in 
     subsection (b) are as follows:
       (1) The Joint Network Node (JNN) element of the Bridge to 
     Future Networks program.
       (2) The Warfighter Information Network-Tactical (WIN-T) 
     program.

[[Page 20752]]

       (3) The Mounted Battle Command On-the-Move (MBCOTM) system.

     SEC. 115. COMPTROLLER GENERAL REPORT ON THE CONTRACT FOR THE 
                   FUTURE COMBAT SYSTEMS PROGRAM.

       (a) Report Required.--Not later than March 15, 2007, the 
     Comptroller General of the United States shall submit to the 
     congressional defense committees a report on the 
     participation and activities of the lead systems integrator 
     in the Future Combat Systems (FCS) program under the contract 
     of the Army for the Future Combat Systems.
       (b) Elements.--The report required by subsection (a) shall 
     include the following:
       (1) A description of the responsibilities of the lead 
     systems integrator in managing the Future Combat Systems 
     program under the contract for the Future Combat Systems, and 
     an assessment of the manner in which such responsibilities 
     differ from the typical responsibilities of a lead systems 
     integrator under acquisition contracts of the Department of 
     Defense.
       (2) A description and assessment of the responsibilities of 
     the Army in managing the Future Combat Systems program, 
     including oversight of the activities of the lead systems 
     integrator and the decisions made by the lead systems 
     integrator.
       (3) An assessment of the manner in which the Army--
       (A) ensures that the lead systems integrator meets goals 
     for the Future Combat Systems in a timely manner; and
       (B) evaluates the extent to which such goals are met.
       (4) An identification of the mechanisms in place to ensure 
     the protection of the interests of the United States in the 
     Future Combat Systems program.
       (5) An identification of the mechanisms in place to 
     mitigate organizational conflicts of interest with respect to 
     competition on Future Combat Systems technologies and 
     equipment under subcontracts under the Future Combat Systems 
     program.

     SEC. 116. PRIORITY FOR ALLOCATION OF REPLACEMENT EQUIPMENT TO 
                   OPERATIONAL UNITS BASED ON COMBAT MISSION 
                   DEPLOYMENT SCHEDULE.

       The Secretary of Defense shall ensure that priority for the 
     distribution of new and combat-serviceable replacement 
     equipment acquired using funds authorized to be appropriated 
     by this title (together with associated support and test 
     equipment) is given to operational units (regardless of 
     component) based on combat mission deployment schedule.
                       Subtitle C--Navy Programs

     SEC. 121. CVN-21 CLASS AIRCRAFT CARRIER PROCUREMENT.

       (a) Contract Authority for Construction.--In the fiscal 
     year immediately following the last fiscal year of the 
     contract for advance procurement for a CVN-21 class aircraft 
     carrier designated CVN-78, CVN-79, or CVN-80, as applicable, 
     the Secretary may enter into a contract for the construction 
     of such aircraft carrier to be funded in the fiscal year of 
     such contract for construction and the succeeding three 
     fiscal years.
       (b) Condition for Out-Year Contract Payments.--A contract 
     entered into under subsection (a) shall provide that any 
     obligation of the United States to make a payment under the 
     contract for any subsequent fiscal year is subject to the 
     availability of appropriations for that purpose for such 
     subsequent fiscal year.
       (c) Repeal of Superceded Provision.--Section 128 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3159) is repealed.

     SEC. 122. ADHERENCE TO NAVY COST ESTIMATES FOR CVN-21 CLASS 
                   OF AIRCRAFT CARRIERS.

       (a) Limitation.--
       (1) Lead ship.--The total amount obligated or expended from 
     funds appropriated or otherwise made available for 
     Shipbuilding and Conversion, Navy, or for any other 
     procurement account, for the aircraft carrier designated as 
     CVN-21 may not exceed $10,500,000,000 (as adjusted pursuant 
     to subsection (b)).
       (2) Follow-on ships.--The total amount obligated or 
     expended from funds appropriated or otherwise made available 
     for Shipbuilding and Conversion, Navy, or for any other 
     procurement account, for the construction of any ship that is 
     constructed in the CVN-21 class of aircraft carriers after 
     the lead ship of that class may not exceed $8,100,000,000 (as 
     adjusted pursuant to subsection (b)).
       (b) Adjustment of Limitation Amount.--The Secretary of the 
     Navy may adjust the amount set forth in subsection (a) for 
     any ship constructed in the CVN-21 class of aircraft carriers 
     by the following:
       (1) The amounts of increases or decreases in costs 
     attributable to economic inflation after September 30, 2006.
       (2) The amounts of increases or decreases in costs 
     attributable to compliance with changes in Federal, State, or 
     local laws enacted after September 30, 2006.
       (3) The amounts of outfitting costs and post-delivery costs 
     incurred for that ship.
       (4) The amounts of increases or decreases in costs of that 
     ship that are attributable to insertion of new technology 
     into that ship, as compared to the technology baseline as it 
     was defined in the approved acquisition program baseline 
     estimate of December 2005.
       (5) The amounts of increases or decreases to nonrecurring 
     design and engineering cost attributable to achieving 
     compliance with the cost limitation.
       (6) The amounts of increases or decreases to cost required 
     to correct deficiencies that may affect the safety of the 
     ship and personnel or otherwise preclude the ship from safe 
     operations and crew certification.
       (c) Limitation on Technology Insertion Cost Adjustment.--
     The Secretary of the Navy may use the authority under 
     paragraph (4) of subsection (b) to adjust the amount set 
     forth in subsection (a) for a ship referred to in that 
     subsection with respect to insertion of new technology into 
     that ship only if--
       (1) the Secretary determines, and certifies to the 
     congressional defense committees, that insertion of the new 
     technology would lower the life-cycle cost of the ship; or
       (2) the Secretary determines, and certifies to the 
     congressional defense committees, that insertion of the new 
     technology is required to meet an emerging threat and the 
     Secretary of Defense certifies to those committees that such 
     threat poses grave harm to national security.
       (d) Written Notice of Change in Amount.--
       (1) Requirement.--The Secretary of the Navy shall submit to 
     the congressional defense committees each year, at the same 
     time that the budget is submitted under section 1105(a) of 
     title 31, United States Code, for the next fiscal year, 
     written notice of any change in the amount set forth in 
     subsection (a) during the preceding fiscal year that the 
     Secretary has determined to be associated with a cost 
     referred to in subsection (b).
       (2) Effective date.--The requirement in paragraph (1) shall 
     become effective with the budget request for the year of 
     procurement of the first ship referred to in subsection (a).

     SEC. 123. MODIFICATION OF LIMITATION ON TOTAL COST OF 
                   PROCUREMENT OF CVN-77 AIRCRAFT CARRIER.

       Section 122(f)(1) of the National Defense Authorization Act 
     for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1650) is 
     amended by striking ``$4,600,000,000 (such amount being the 
     estimated cost for the procurement of the CVN-77 aircraft 
     carrier in the March 1997 procurement plan)'' and inserting 
     ``$6,057,000,000''.

     SEC. 124. CONSTRUCTION OF FIRST TWO VESSELS UNDER THE DDG-
                   1000 NEXT-GENERATION DESTROYER PROGRAM.

       (a) Availability of Funds.--Of the amount authorized to be 
     appropriated by section 102(a)(3) for fiscal year 2007 for 
     Shipbuilding and Conversion, Navy, $2,568,000,000 may be 
     available for the construction of the first two vessels under 
     the DDG-1000 Next-Generation Destroyer program.
       (b) Contract Authority.--
       (1) In general.--The Secretary of the Navy may enter into a 
     contract beginning with the fiscal year 2007 program year for 
     procurement of each of the first two vessels under the DDG-
     1000 Next-Generation Destroyer program.
       (2) Limitation.--Not more than one contract described in 
     paragraph (1) may be awarded under that paragraph to a single 
     shipyard.
       (3) Split funding authorized.--Each contract under 
     paragraph (1) shall contemplate funding for the procurement 
     of a vessel under such contract using a combination of funds 
     appropriated for fiscal year 2007 and funds appropriated for 
     fiscal year 2008.
       (4) Condition on out-year contract payments.--A contract 
     entered into under paragraph (1) shall provide that any 
     obligation of the United States to make a payment under such 
     contract for any fiscal year after fiscal year 2007 is 
     subject to the availability of appropriations for that 
     purpose for such fiscal year.
       (c) Sense of Congress on Funding for Follow-on Ships.--It 
     is the sense of Congress that there is sufficient benefit to 
     authorizing the one-time exception provided in this section 
     to the full funding policy in order to support the 
     competitive procurement of the follow-on ships of the DDG-
     1000 Next-Generation Destroyer program. However, it is the 
     expectation of Congress that the Secretary of the Navy will 
     structure the DDG-1000 program so that each ship, after the 
     first two ships, is procured using the method of full funding 
     in a single year.

     SEC. 125. ADHERENCE TO NAVY COST ESTIMATES FOR LHA 
                   REPLACEMENT AMPHIBIOUS ASSAULT SHIP PROGRAM.

       (a) Limitation.--The total amount obligated or expended 
     from funds appropriated or otherwise made available for 
     Shipbuilding and Conversion, Navy, or for any other 
     procurement account, for procurement of any ship that is 
     constructed under the LHA Replacement (LHA(R)) amphibious 
     assault ship program may not exceed $2,813,600,000 (as 
     adjusted pursuant to subsection (b)).
       (b) Adjustment of Limitation Amount.--The Secretary of the 
     Navy may adjust the amount set forth in subsection (a) for 
     any ship constructed under the LHA Replacement amphibious 
     assault ship program by the following:
       (1) The amounts of increases or decreases in costs 
     attributable to economic inflation after September 30, 2006.
       (2) The amounts of increases or decreases in costs 
     attributable to compliance with changes in Federal, State, or 
     local laws enacted after September 30, 2006.
       (3) The amounts of outfitting costs and post-delivery costs 
     incurred for that ship.
       (4) The amounts of increases or decreases in costs of that 
     ship that are attributable to insertion of new technology 
     into that ship, as compared to the technology baseline as it 
     was defined at the development stage referred to as Milestone 
     B.
       (5) The amounts of increases or decreases to nonrecurring 
     design and engineering cost attributable to achieving 
     compliance with the cost limitation.

[[Page 20753]]

       (6) The amounts of increases or decreases to cost required 
     to correct deficiencies that may affect the safety of the 
     ship and personnel or otherwise preclude the ship from safe 
     operations and crew certification.
       (7) Contract cost adjustments directly attributed to the 
     effect of Hurricane Katrina in August 2005 or other force 
     majeure contract modifications.
       (c) Limitation on Technology Insertion Cost Adjustment.--
     The Secretary of the Navy may use the authority under 
     paragraph (4) of subsection (b) to adjust the amount set 
     forth in subsection (a) for a ship referred to in that 
     subsection with respect to insertion of new technology into 
     that ship only if--
       (1) the Secretary determines, and certifies to the 
     congressional defense committees, that insertion of the new 
     technology would lower the life-cycle cost of the ship; or
       (2) the Secretary determines, and certifies to the 
     congressional defense committees, that insertion of the new 
     technology is required to meet an emerging threat and the 
     Secretary of Defense certifies to those committees that such 
     threat poses grave harm to national security.
       (d) Written Notice of Change in Amount.--
       (1) Requirement.--The Secretary of the Navy shall submit to 
     the congressional defense committees each year, at the same 
     time that the budget is submitted under section 1105(a) of 
     title 31, United States Code, for the next fiscal year, 
     written notice of any change in the amount set forth in 
     subsection (a) during the preceding fiscal year that the 
     Secretary has determined to be associated with a cost 
     referred to in subsection (b).
       (2) Effective date.--The requirement in paragraph (1) shall 
     become effective with the budget request for the year of 
     procurement of the first ship referred to in subsection (a).

     SEC. 126. COST LIMITATION FOR SAN ANTONIO (LPD-17) CLASS 
                   AMPHIBIOUS SHIP PROGRAM.

       (a) Limitation.--
       (1) Procurement cost.--The total amount obligated or 
     expended from funds appropriated or otherwise made available 
     for Shipbuilding and Conversion, Navy, for the San Antonio-
     class amphibious ships designated as LPD-22, LPD-23, LPD-24, 
     and LPD-25 may not exceed the amount for each such vessel 
     specified in paragraph (2).
       (2) Specified cost limit by vessel.--The limitation under 
     this subsection for each vessel specified in paragraph (1) is 
     the following:
       (A) For the LPD-22 ship, $1,523,000,000 (as adjusted 
     pursuant to subsection (b)).
       (B) For the LPD-23 ship, $1,477,000,000 (as adjusted 
     pursuant to subsection (b)).
       (C) For the LPD-24 ship, $1,633,000,000 (as adjusted 
     pursuant to subsection (b)).
       (D) For the LPD-25 ship, $1,927,000,000 (as adjusted 
     pursuant to subsection (b)).
       (b) Adjustment of Limitation Amounts.--The Secretary of the 
     Navy may adjust the amount set forth in subsection (a) for 
     any ship specified in that subsection by the following:
       (1) The amounts of increases or decreases in costs 
     attributable to economic inflation after September 30, 2006.
       (2) The amounts of increases or decreases in costs 
     attributable to compliance with changes in Federal, State, or 
     local laws enacted after September 30, 2006.
       (3) The amounts of outfitting costs and post-delivery costs 
     incurred for that ship.
       (4) The amounts of increases or decreases in costs of that 
     ship that are attributable to insertion of new technology 
     into that ship, as compared to the technology built into the 
     U.S.S. San Antonio (LPD-17), the lead ship of the LPD-17 
     class.
       (5) Contract cost adjustments directly attributed to the 
     effect of Hurricane Katrina in August 2005 or other force 
     majeure contract modifications.
       (6) The amounts of closeout costs associated with 
     completion of the LPD-17 class program.
       (c) Limitation on Technology Insertion Cost Adjustment.--
     The Secretary of the Navy may use the authority under 
     paragraph (4) of subsection (b) to adjust the amount set 
     forth in subsection (a) for any LPD-17 class ship with 
     respect to insertion of new technology into that ship only 
     if--
       (1) the Secretary determines, and certifies to the 
     congressional defense committees, that insertion of the new 
     technology would lower the life-cycle cost of the ship; or
       (2) the Secretary determines, and certifies to the 
     congressional defense committees, that insertion of the new 
     technology is required to meet an emerging threat and the 
     Secretary of Defense certifies to those committees that such 
     threat poses grave harm to national security.
       (d) Written Notice of Change in Amount.--
       (1) Requirement.--The Secretary of the Navy shall submit to 
     the congressional defense committees each year, at the same 
     time that the budget is submitted under section 1105(a) of 
     title 31, United States Code, for the next fiscal year, 
     written notice of any change in the amount set forth in 
     subsection (a) during the preceding fiscal year that the 
     Secretary has determined to be associated with a cost 
     referred to in subsection (b).
       (2) Effective date.--The requirement in paragraph (1) shall 
     become effective with the budget request for the year of 
     procurement of the first ship referred to in subsection (a).

     SEC. 127. MULTIYEAR PROCUREMENT AUTHORITY FOR V-22 TILTROTOR 
                   AIRCRAFT PROGRAM.

       The Secretary of the Navy, in accordance with section 2306b 
     of title 10, United States Code, and acting as executive 
     agent for the Secretary of the Air Force and the commander of 
     the United States Special Operations Command, may enter into 
     a multiyear contract, beginning with the fiscal year 2008 
     program year, for procurement of V-22 tiltrotor aircraft.

     SEC. 128. ALTERNATIVE TECHNOLOGIES FOR FUTURE SURFACE 
                   COMBATANTS.

       (a) Findings.--Congress makes the following findings:
       (1) Securing and maintaining access to affordable and 
     plentiful sources of energy is a vital national security 
     interest for the United States.
       (2) The Nation's dependence upon foreign oil is a threat to 
     national security due to the inherently volatile nature of 
     the global oil market and the political instability of some 
     of the world's largest oil producing states.
       (3) Given the recent increase in the cost of crude oil, 
     which cannot realistically be expected to improve over the 
     long term, other energy sources must be seriously considered.
       (4) Alternate propulsion sources such as nuclear power 
     offer many advantages over conventional power for major 
     surface combatant ships of the Navy, including--
       (A) virtually unlimited high-speed endurance;
       (B) elimination of vulnerable refueling; and
       (C) reduction in the requirement for replenishment vessels 
     and the need to protect those vessels.
       (b) Sense of Congress.--In light of the findings in 
     subsection (a), it is the sense of Congress that the Navy 
     should make greater use of alternative technologies, 
     including expanded application of integrated power systems, 
     fuel cells, and nuclear power, for propulsion of future major 
     surface combatant ships.
       (c) Requirement.--The Secretary of the Navy shall include 
     integrated power systems, fuel cells, and nuclear power as 
     propulsion alternatives to be evaluated within the analysis 
     of alternatives for future major surface combatant ships.

     SEC. 129. SENSE OF CONGRESS REGARDING THE SIZE OF THE ATTACK 
                   SUBMARINE FORCE.

       (a) Findings.--Congress makes the following findings:
       (1) The United States Navy must be large enough, agile 
     enough, and lethal enough to deter any threat and defeat any 
     foe.
       (2) The proliferation of modern nuclear and nonnuclear 
     submarines in the navies of nations around the globe will 
     make undersea superiority a more significant challenge in the 
     future.
       (3) The unique combination of firepower, stealth, sensors, 
     and communications equipment contained in a modern attack 
     submarine make the attack submarine a critical component of 
     the Armed Forces of the United States.
       (4) The report entitled ``Report to Congress on Annual 
     Long-Range Plan for Construction of Naval Vessels for fiscal 
     year 2007'', submitted to Congress by the Secretary of the 
     Navy pursuant to section 231 of title 10, United States 
     Code--
       (A) identifies future naval force structure requirements 
     indexed to Department of Defense fiscal year 2020 threat 
     assessments and compliant with the Fiscal Year 2006 
     Quadrennial Defense Review and, with respect to the attack 
     submarine force, identifies a need for the Navy to maintain a 
     fleet of not less than 48 attack submarines; and
       (B) projects that the attack submarine force will fall 
     below 48 vessels between 2020 and 2032.
       (b) Sense of Congress.--In light of the findings in 
     subsection (a), it is the sense of Congress that the 
     Secretary of the Navy should take all reasonable effort to 
     accelerate the construction of Virginia Class submarines to 
     maintain the attack submarine force structure at not less 
     than 48 submarines and (if the number of attack submarines 
     should fall below 48), to minimize the period the attack 
     submarine force remains below 48 vessels.

     SEC. 130. QUALITY CONTROL IN PROCUREMENT OF SHIP CRITICAL 
                   SAFETY ITEMS AND RELATED SERVICES.

       (a) Quality Control Policy.--The Secretary of Defense shall 
     prescribe in regulations a quality control policy for the 
     procurement of the following:
       (1) Ship critical safety items.
       (2) Modifications, repair, and overhaul of ship critical 
     safety items.
       (b) Elements.--The policy required under subsection (a) 
     shall include requirements as follows:
       (1) That the head of the design control activity for ship 
     critical safety items establish processes to identify and 
     manage the procurement, modification, repair, and overhaul of 
     such items.
       (2) That the head of the contracting activity for a ship 
     critical safety item enter into a contract for the 
     procurement, modification, repair, or overhaul of such item 
     only with a source on a qualified manufacturers list or a 
     source approved by the design control activity in accordance 
     with section 2319 of title 10, United States Code (as amended 
     by subsection (d)).
       (3) That the ship critical safety items delivered, and the 
     services performed with respect to such items, meet all 
     technical and quality requirements specified by the design 
     control activity.
       (c) Definitions.--In this section, the terms ``ship 
     critical safety item'' and ``design control activity'' have 
     the meanings given such terms in subsection (g) of 2319 of 
     title 10, United States Code (as so amended).
       (d) Conforming Amendments.--Section 2319 of title 10, 
     United States Code, is amended--
       (1) in subsection (c)(3), by inserting ``or ship critical 
     safety item'' after ``aviation critical safety item''; and
       (2) in subsection (g)--
       (A) by redesignating paragraph (2) as paragraph (3);

[[Page 20754]]

       (B) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) The term `ship critical safety item' means any ship 
     part, assembly, or support equipment containing a 
     characteristic the failure, malfunction, or absence of which 
     could cause a catastrophic or critical failure resulting in 
     loss of or serious damage to the ship or unacceptable risk of 
     personal injury or loss of life.''; and
       (C) in paragraph (3), as so redesignated--
       (i) by inserting ``or ship critical safety item'' after 
     ``aviation critical safety item'';
       (ii) by inserting ``, or the seaworthiness of a ship or 
     ship equipment,'' after ``equipment''; and
       (iii) by striking ``the item'' and inserting ``such item''.
                     Subtitle D--Air Force Programs

     SEC. 131. BOMBER FORCE STRUCTURE.

       (a) Requirement for B-52 Force Structure.--
       (1) Retirement limitation.--During the B-52 retirement 
     limitation period, the Secretary of the Air Force--
       (A) may not retire more than 18 B-52 aircraft; and
       (B) shall maintain not less than 44 such aircraft as 
     combat-coded aircraft.
       (2) B-52 retirement limitation period.--For purposes of 
     paragraph (1), the B-52 retirement limitation period is the 
     period beginning on the date of the enactment of this Act and 
     ending on the date that is the earlier of--
       (A) January 1, 2018; and
       (B) the date as of which a long-range strike replacement 
     aircraft with equal or greater capability than the B-52H 
     model aircraft has attained initial operational capability 
     status.
       (b) Limitation on Retirement Pending Report on Bomber Force 
     Structure.--
       (1) Limitation.--No funds authorized to be appropriated for 
     the Department of Defense may be obligated or expended for 
     retiring any of the 93 B-52H bomber aircraft in service in 
     the Air Force as of the date of the enactment of this Act 
     until 45 days after the date on which the Secretary of the 
     Air Force submits the report specified in paragraph (2).
       (2) Report.--A report specified in this subsection is a 
     report submitted by the Secretary of the Air Force to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives on the amount and type of bomber force 
     structure of the Air Force, including the matters specified 
     in paragraph (4).
       (3) Amount and type of bomber force structure defined.--In 
     this subsection, the term ``amount and type of bomber force 
     structure'' means the number of each of the following types 
     of aircraft that are required to carry out the national 
     security strategy of the United States:
       (A) B-2 bomber aircraft.
       (B) B-52H bomber aircraft.
       (C) B-1 bomber aircraft.
       (4) Matter to be included.--A report under paragraph (2) 
     shall include the following:
       (A) The plan of the Secretary of the Air Force for the 
     modernization of the B-52, B-1, and B-2 bomber aircraft 
     fleets.
       (B) The amount and type of bomber force structure for the 
     conventional mission and strategic nuclear mission in 
     executing two overlapping ``swift defeat'' campaigns.
       (C) A justification of the cost and projected savings of 
     any reductions to the B-52H bomber aircraft fleet as a result 
     of the retirement of the B-52H bomber aircraft covered by the 
     report.
       (D) The life expectancy of each bomber aircraft to remain 
     in the bomber force structure.
       (E) The capabilities of the bomber force structure that 
     would be replaced, augmented, or superseded by any new bomber 
     aircraft.
       (5) Preparation of report.--A report under paragraph (2) 
     shall be prepared by the Institute for Defense Analyses and 
     submitted to the Secretary of the Air Force for submittal by 
     the Secretary in accordance with that paragraph.

     SEC. 132. STRATEGIC AIRLIFT FORCE STRUCTURE.

       Section 8062 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(g)(1) Effective October 1, 2008, the Secretary of the 
     Air Force shall maintain a total aircraft inventory of 
     strategic airlift aircraft of not less than 299 aircraft.
       ``(2) In this subsection:
       ``(A) The term `strategic airlift aircraft' means an 
     aircraft--
       ``(i) that has a cargo capacity of at least 150,000 pounds; 
     and
       ``(ii) that is capable of transporting outsized cargo an 
     unrefueled range of at least 2,400 nautical miles.
       ``(B) The term `outsized cargo' means any single item of 
     equipment that exceeds 1,090 inches in length, 117 inches in 
     width, or 105 inches in height.''.

     SEC. 133. LIMITATION ON RETIREMENT OF U-2 AIRCRAFT.

       (a) Fiscal Year 2007.--The Secretary of the Air Force may 
     not retire any U-2 aircraft of the Air Force in fiscal year 
     2007.
       (b) Years After Fiscal Year 2007.--
       (1) Certification required.--After fiscal year 2007, the 
     Secretary of the Air Force may retire a U-2 aircraft only if 
     the Secretary of Defense certifies to Congress that the 
     intelligence, surveillance, and reconnaissance (ISR) 
     capabilities provided by the U-2 aircraft no longer 
     contribute to mitigating any gaps in intelligence, 
     surveillance, and reconnaissance capabilities identified in 
     the 2006 Quadrennial Defense Review.
       (2) Limitations.--No action may be taken by the Department 
     of Defense to retire (or to prepare to retire) any U-2 
     aircraft before a certification specified in paragraph (1) is 
     submitted to Congress. If such a certification is submitted, 
     no such action may be taken until after the end of the 60-day 
     period beginning on the date on which the certification is 
     submitted.

     SEC. 134. MULTIYEAR PROCUREMENT AUTHORITY FOR F-22A RAPTOR 
                   FIGHTER AIRCRAFT.

       (a) Prohibition on Use of Incremental Funding.--The 
     Secretary of the Air Force may not use incremental funding 
     for the procurement of F-22A aircraft.
       (b) Multiyear Authority.--The Secretary of the Air Force 
     may enter into a multiyear contract for the procurement of up 
     to 60 F-22A Raptor fighter aircraft beginning with the 2007 
     program year.
       (c) Compliance With Law Applicable to Multiyear 
     Contracts.--A contract under subsection (b) for the 
     procurement of F-22A aircraft shall be entered into in 
     accordance with section 2306b of title 10, United States 
     Code, except that, notwithstanding subsection (k) of that 
     section, such a contract may not be for a period in excess of 
     three program years.
       (d) Secretary of Defense Certification.--In the case of a 
     contract under subsection (b) for the procurement of F-22A 
     aircraft, a certification under subsection (i)(1)(A) of 
     section 2306b of title 10, United States Code, with respect 
     to that contract may only be submitted if the certification 
     includes an additional certification by the Secretary that 
     each of the conditions specified in subsection (a) of that 
     section has been satisfied with respect to that contract, as 
     follows:
       (1) That the use of such contract will result in 
     substantial savings of the total anticipated costs of 
     carrying out the program through annual contracts.
       (2) That the minimum need for the property to be purchased 
     is expected to remain substantially unchanged during the 
     contemplated contract period in terms of production rate, 
     procurement rate, and total quantities.
       (3) That there is a reasonable expectation that throughout 
     the contemplated contract period the Secretary of the Air 
     Force will request funding for the contract at the level 
     required to avoid contract cancellation.
       (4) That there is a stable design for the property to be 
     acquired and that the technical risks associated with such 
     property are not excessive.
       (5) That the estimates of both the cost of the contract and 
     the anticipated cost avoidance through the use of a multiyear 
     contract are realistic.
       (6) That the use of such contract will promote the national 
     security of the United States.
     In certifying that the cost savings are substantial, the 
     Secretary shall duly consider the historical cost savings 
     that led to a decision to proceed with a multiyear 
     procurement contract under section 2306b of title 10, United 
     States Code, in the case of previous aviation-related 
     multiyear contracts authorized by law dating back to fiscal 
     year 1982.
       (e) FFRDC Cost Report.--The Secretary of Defense shall 
     provide for a federally funded research and development 
     center (other than the Institute for Defense Analyses) to 
     report on the cost estimates for a three year, 60-aircraft, 
     F-22A multiyear procurement program, beginning in fiscal year 
     2007, compared to a corresponding annual procurement program.
       (f) Notice-and-Wait Requirement.--Upon submission to 
     Congress of a certification referred to in subsection (d) 
     with respect to a proposed contract under subsection (b) for 
     the procurement of F-22A aircraft and the Secretary's 
     submission to the congressional defense committees of the 
     report referred to in subsection (e), the contract may then 
     be entered into only after the end of the 30-day period 
     beginning on the later of the date of the submission of the 
     certification or the date of the submission of the report.

     SEC. 135. LIMITATION ON RETIREMENT OF KC-135E AIRCRAFT DURING 
                   FISCAL YEAR 2007.

       (a) Limitation.--The number of KC-135E aircraft retired by 
     the Secretary of the Air Force during fiscal year 2007 may 
     not exceed 29.
       (b) Treatment of Retired Aircraft.--The Secretary of the 
     Air Force shall maintain each KC-135E aircraft that is 
     retired by the Secretary after September 30, 2006, in a 
     condition that would allow recall of that aircraft to future 
     service in the Air Force Reserve, Air National Guard, or 
     active forces aerial refueling force structure.

     SEC. 136. LIMITATION ON RETIREMENT OF F-117A AIRCRAFT DURING 
                   FISCAL YEAR 2007.

       (a) Limitation.--The number of F-117A aircraft retired by 
     the Secretary of the Air Force during fiscal year 2007 may 
     not exceed 10.
       (b) Treatment of Retired Aircraft.--The Secretary of the 
     Air Force shall maintain each F-117A aircraft that is retired 
     by the Secretary after September 30, 2006, in a condition 
     that would allow recall of that aircraft to future service.

     SEC. 137. LIMITATION ON RETIREMENT OF C-130E TACTICAL AIRLIFT 
                   AIRCRAFT.

       (a) Limitation.--The number of C-130E tactical airlift 
     aircraft retired by the Secretary of the Air Force during 
     fiscal year 2007 may not exceed 51.
       (b) Treatment of Retired Aircraft.--The Secretary of the 
     Air Force shall maintain each C-130E tactical airlift 
     aircraft that is retired by the Secretary after September 30, 
     2006, in a condition that would allow recall of that aircraft 
     to future service.

[[Page 20755]]



     SEC. 138. PROCUREMENT OF JOINT PRIMARY AIRCRAFT TRAINING 
                   SYSTEM AIRCRAFT AFTER FISCAL YEAR 2006.

       Any Joint Primary Aircraft Training System (JPATS) aircraft 
     procured after fiscal year 2006 shall be procured through a 
     contract under part 15 of the Federal Acquisition Regulation 
     (FAR), relating to acquisition of items by negotiated 
     contract (48 C.F.R. 15.000 et seq.), rather than through a 
     contract under part 12 of the Federal Acquisition Regulation, 
     relating to acquisition of commercial items (48 C.F.R. 12.000 
     et seq.).

     SEC. 139. MINUTEMAN III INTERCONTINENTAL BALLISTIC MISSILE 
                   MODERNIZATION.

       (a) Modernization of Intercontinental Ballistic Missiles 
     Required.--The Secretary of the Air Force shall modernize 
     Minuteman III intercontinental ballistic missiles in the 
     United States inventory as required to maintain a sufficient 
     supply of launch test assets and spares to sustain the 
     deployed force of such missiles through 2030.
       (b) Limitation on Termination of Modernization Programs 
     Pending Report.--
       (1) Limitation.--No funds authorized to be appropriated for 
     the Department of Defense may be obligated or expended for 
     the termination of any ICBM modernization program with 
     respect to the Minuteman III intercontinental ballistic 
     missile system, or for the withdrawal of any Minuteman III 
     intercontinental ballistic missile from the active force, 
     until 30 days after the date on which the Secretary of 
     Defense submits to the congressional defense committees a 
     report described in subsection (c).
       (2) ICBM modernization program defined.--In this 
     subsection, the term ``ICBM Modernization program'' means 
     each of the following:
       (A) The Guidance Replacement Program (GRP).
       (B) The Propulsion Replacement Program (PRP).
       (C) The Propulsion System Rocket Engine (PSRE) program.
       (D) The Safety Enhanced Reentry Vehicle (SERV) program.
       (c) Report Elements.--A report under subsection (b)(1) is a 
     report setting forth the following:
       (1) A detailed strategic justification for the proposal to 
     reduce the Minuteman III intercontinental ballistic missile 
     force from 500 to 450 missiles, including an analysis of the 
     effects of the reduction on the ability of the United States 
     to assure allies and dissuade potential competitors.
       (2) A detailed analysis of the strategic ramifications of 
     continuing to equip a portion of the Minuteman III missile 
     force with multiple independent warheads rather than single 
     warheads.
       (3) An assessment of the test assets and spares required to 
     maintain a force of 500 deployed Minuteman III missiles 
     through 2030.
       (4) An assessment of the test assets and spares required to 
     maintain a force of 450 deployed Minuteman III missiles 
     through 2030.
       (5) An inventory of currently available Minuteman III 
     missile test assets and spares.
       (6) A plan to sustain and complete the modernization of all 
     deployed and spare Minuteman III missiles, a test plan, and 
     an analysis of the funding required to carry out 
     modernization of all deployed and spare Minuteman III 
     missiles.
       (7) An assessment of whether halting upgrades to the 
     Minuteman III missiles withdrawn from the deployed force 
     would compromise the ability of those missiles to serve as 
     test assets.
       (8) A description of the plan of the Department of Defense 
     for extending the life of the Minuteman III missile force 
     beyond fiscal year 2030.
               Subtitle E--Joint and Multiservice Matters

     SEC. 141. CLARIFICATION OF LIMITATION ON INITIATION OF NEW 
                   UNMANNED AERIAL VEHICLE SYSTEMS.

       (a) Applicability of Limitation Only to Procurement 
     Funds.--Subsection (a) of section 142 of National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163; 
     119 Stat. 3164) is amended--
       (1) by inserting ``for procurement'' after ``the Department 
     of Defense''; and
       (2) by inserting before the period at the end the 
     following: ``(or by an official within the Office of the 
     Under Secretary designated by the Under Secretary for that 
     purpose)''.
       (b) Applicability Only to New Systems.--Subsection (b) of 
     that section is amended to read as follows:
       ``(b) Exception for Existing Systems.--The limitation in 
     subsection (a) does not apply with respect to an unmanned 
     aerial vehicle (UAV) system (or any component or other item 
     of associated equipment of any such system described in 
     subsection (a)) if as of January 6, 2006--
       ``(1) the system (or component or item of associated 
     equipment) to be procured is otherwise under contract or has 
     previously been procured by the Department; or
       ``(2) funds have been appropriated but not yet obligated 
     for the system (or component or item of associated equipment) 
     .''.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Acquisition of, and independent cost analyses for, the Joint 
              Strike Fighter propulsion system.
Sec. 212. Expansion and extension of authority to award prizes for 
              advanced technology achievements.
Sec. 213. Defense Acquisition Challenge Program extension, enhancement, 
              and modification to address critical cost growth 
              threshold breaches in major defense acquisition programs.
Sec. 214. Future Combat Systems milestone review.
Sec. 215. Dedicated amounts for implementing or evaluating Navy 
              shipbuilding technology proposals under Defense 
              Acquisition Challenge Program.
Sec. 216. Independent estimate of costs of the Future Combat Systems.
Sec. 217. Funding of defense science and technology programs.
Sec. 218. Hypersonics development.
Sec. 219. Report on program for replacement of nuclear warheads on 
              certain Trident sea-launched ballistic missiles with 
              conventional warheads.

                  Subtitle C--Missile Defense Programs

Sec. 221. Fielding of ballistic missile defense capabilities.
Sec. 222. Limitation on use of funds for space-based interceptor.
Sec. 223. Policy of the United States on priorities in the development, 
              testing, and fielding of missile defense capabilities.
Sec. 224. One-year extension of Comptroller General assessments of 
              ballistic missile defense programs.
Sec. 225. Submittal of plans for test and evaluation of the operational 
              capability of the Ballistic Missile Defense System.
Sec. 226. Annual reports on transition of ballistic missile defense 
              programs to the military departments.

                       Subtitle D--Other Matters

Sec. 231. Policies and practices on test and evaluation to address 
              emerging acquisition approaches.
Sec. 232. Extension of requirement for Global Research Watch Program.
Sec. 233. Sense of Congress on technology sharing of Joint Strike 
              Fighter technology.
Sec. 234. Report on vehicle-based active protection systems for certain 
              battlefield threats.
              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2007 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $10,876,609,000.
       (2) For the Navy, $17,383,857,000.
       (3) For the Air Force, $24,235,951,000.
       (4) For Defense-wide activities, $21,111,559,000, of which 
     $181,520,000 is authorized for the Director of Operational 
     Test and Evaluation.

     SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

       (a) Fiscal Year 2007.--Of the amounts authorized to be 
     appropriated by section 201, $11,662,554,000 shall be 
     available for the Defense Science and Technology Program, 
     including basic research, applied research, and advanced 
     technology development projects.
       (b) Basic Research, Applied Research, and Advanced 
     Technology Development Defined.--For purposes of this 
     section, the term ``basic research, applied research, and 
     advanced technology development'' means work funded in 
     program elements for defense research and development under 
     Department of Defense budget activity 1, 2, or 3.
    Subtitle B--Program Requirements, Restrictions, and Limitations

     SEC. 211. ACQUISITION OF, AND INDEPENDENT COST ANALYSES FOR, 
                   THE JOINT STRIKE FIGHTER PROPULSION SYSTEM.

       (a) Acquisition.--
       (1) In general.--The Secretary of Defense shall provide for 
     the development and procurement of the propulsion system for 
     the Joint Strike Fighter aircraft through the continued 
     development and sustainment of two interchangeable propulsion 
     systems for that aircraft by two separate contractors 
     throughout the life cycle of the aircraft.
       (2) Modifications prohibited.--Except as provided by 
     paragraph (3), the Secretary may not carry out any 
     modification to the acquisition program for the Joint Strike 
     Fighter aircraft that would result in the development or 
     procurement of the propulsion system for that aircraft in a 
     manner other than that required by paragraph (1).
       (3) Modifications allowed.--Notwithstanding paragraph (1), 
     a modification described in paragraph (2) may be carried out 
     to the extent that each of the following requirements is met:
       (A) The Secretary of Defense has notified the congressional 
     defense committees of the modification.
       (B) Each of the reports required by subsection (b) has been 
     submitted.
       (C) Funds are appropriated for that purpose pursuant to an 
     authorization of appropriations.
       (b) Independent Cost Analyses.--
       (1) In general.--A comprehensive and detailed cost analysis 
     of the Joint Strike Fighter engine program shall be 
     independently performed by each of the following:

[[Page 20756]]

       (A) The Comptroller General.
       (B) A federally funded research and development center 
     selected by the Secretary of Defense.
       (C) The Secretary of Defense, acting through the Cost 
     Analysis Improvement Group of the Office of the Secretary of 
     Defense.
       (2) Matters covered.--Each such cost analysis shall cover--
       (A) an alternative under which the Joint Strike Fighter 
     aircraft is capable of using the F135 engine only;
       (B) an alternative under which the program executes a one-
     time firm-fixed price contract for a selected propulsion 
     system for the Joint Strike Fighter aircraft for the life 
     cycle of the aircraft following the Initial Service Release 
     of the propulsion system in fiscal year 2008;
       (C) an alternative under which the Joint Strike Fighter 
     aircraft is capable of using either the F135 engine or the 
     F136 engine, and the engine selection is carried out on a 
     competitive basis; and
       (D) any other alternative, whether competitive or sole 
     source, that would reduce total life-cycle cost, improve 
     program schedule, or both.
       (3) Reports.--Not later than March 15, 2007, the Secretary 
     of Defense, the Comptroller General, and the chief executive 
     officer of the federally funded research and development 
     center selected under paragraph (1)(B) shall independently 
     submit to the congressional defense committees a report on 
     the cost analysis carried out under paragraph (1). Each such 
     report shall include each of the following matters:
       (A) The key assumptions used in carrying out the cost 
     analysis.
       (B) The methodology and techniques used in carrying out the 
     cost analysis.
       (C) For each alternative required by paragraph (2)--
       (i) a comparison of the life-cycle costs, including costs 
     in current and constant dollars and a net-present-value 
     analysis;
       (ii) estimates of--

       (I) supply, maintenance, and other operations manpower 
     required to support the alternative;
       (II) the number of flight hours required to achieve engine 
     maturity and the year in which that is expected to be 
     achieved; and
       (III) the total number of engines expected to be procured 
     over the lifetime of the Joint Strike Fighter program; and

       (iii) an evaluation of benefits, other than cost, provided 
     by competition, to include an assessment of improved 
     performance, operational readiness and warfighting 
     capability, risk reduction, technology innovation, and 
     contractor responsiveness.
       (D) A description of the acquisition strategies (including 
     development and production) that were used for, and 
     experience with respect to cost, schedule, and performance 
     under, past acquisition programs for engines for tactical 
     fighter aircraft, including the F-15, F-16, F-18, and F-22 
     aircraft.
       (E) A comparison of the experiences under past acquisition 
     programs carried out on a sole-source basis with respect to 
     performance, savings, maintainability, reliability, and 
     technical innovation.
       (F) The impact that canceling the F136 competitive engine 
     would have on the high-performance military engine industrial 
     base, and on the Department of Defense's ability to make 
     competitive engine choices for future combat aircraft systems 
     beyond the Joint Strike Fighter.
       (G) Conclusions and recommendations.
       (4) Certifications.--In submitting the report required by 
     paragraph (3), the Comptroller General and the chief 
     executive officer of the federally funded research and 
     development center shall also submit a certification as to 
     whether the Secretary of Defense provided access to 
     sufficient information to enable the Comptroller General or 
     the chief executive officer, as the case may be, to make 
     informed judgments on the matters required to be included in 
     the report.
       (c) Life-Cycle Costs Defined.--In this section, the term 
     ``life-cycle costs'' includes--
       (1) those elements of cost that would be considered for a 
     life-cycle cost analysis for a major defense acquisition 
     program, including procurement of engines, procurement of 
     spare engines, and procurement of engine components and 
     parts; and
       (2) good-faith estimates of routine engine costs (such as 
     performance upgrades and component improvement) that 
     historically have occurred in tactical fighter engine 
     programs.

     SEC. 212. EXPANSION AND EXTENSION OF AUTHORITY TO AWARD 
                   PRIZES FOR ADVANCED TECHNOLOGY ACHIEVEMENTS.

       (a) Expansion.--
       (1) In general.--Subsection (a) of section 2374a of title 
     10, United States Code, is amended--
       (A) by striking ``Director of the Defense Advanced Research 
     Projects Agency'' and inserting ``Director of Defense 
     Research and Engineering and the service acquisition 
     executive for each military department''; and
       (B) by striking ``a program'' and inserting ``programs''.
       (2) Conforming amendments.--Such section is further 
     amended--
       (A) in subsection (b), by striking ``The program'' and 
     inserting ``Each program''; and
       (B) in subsection (d)--
       (i) by striking ``The program'' and inserting ``A 
     program''; and
       (ii) by striking ``the Director'' and inserting ``an 
     official referred to in that subsection''.
       (b) Extension.--Subsection (f) of such section is amended 
     by striking ``September 30, 2007'' and inserting ``September 
     30, 2010''.
       (c) Modification of Reporting Requirement.--Subsection (e) 
     of such section is amended to read as follows:
       ``(e) Annual Report.--
       ``(1) In general.--Not later than March 1 of each year, the 
     Secretary shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives a report on the activities carried out 
     during the preceding fiscal year under the authority in 
     subsection (a).
       ``(2) Information included.--The report for a fiscal year 
     under this subsection shall include, for each program under 
     subsection (a), the following:
       ``(A) A description of the proposed goals of the 
     competitions established under the program, including the 
     areas of research, technology development, or prototype 
     development to be promoted by such competitions and the 
     relationship of such areas to the military missions of the 
     Department of Defense.
       ``(B) An analysis of why the utilization of the authority 
     in subsection (a) was the preferable method of achieving the 
     goals described in subparagraph (A) as opposed to other 
     authorities available to the Department, such as contracts, 
     grants, and cooperative agreements.
       ``(C) The total amount of cash prizes awarded under the 
     program, including a description of the manner in which the 
     amounts of cash prizes awarded and claimed were allocated 
     among the accounts of the Department for recording as 
     obligations and expenditures.
       ``(D) The methods used for the solicitation and evaluation 
     of submissions under the program, together with an assessment 
     of the effectiveness of such methods.
       ``(E) A description of the resources, including personnel 
     and funding, used in the execution of the program, together 
     with a detailed description of the activities for which such 
     resources were used and an accounting of how funding for 
     execution was allocated among the accounts of the Department 
     for recording as obligations and expenditures.
       ``(F) A description of any plans to transition the 
     technologies or prototypes developed as a result of the 
     program into an acquisition program of the Department.
       ``(3) Suspension of authority for failure to include 
     information.--For each program under subsection (a), the 
     authority to obligate or expend funds under that program is 
     suspended as of the date specified in paragraph (1) if the 
     Secretary does not, by that date, submit a report that 
     includes, for that program, all the information required by 
     paragraph (2). As of the date on which the Secretary does 
     submit a report that includes, for that program, all the 
     information required by paragraph (2), the suspension is 
     lifted.''.

     SEC. 213. DEFENSE ACQUISITION CHALLENGE PROGRAM EXTENSION, 
                   ENHANCEMENT, AND MODIFICATION TO ADDRESS 
                   CRITICAL COST GROWTH THRESHOLD BREACHES IN 
                   MAJOR DEFENSE ACQUISITION PROGRAMS.

       (a) Assessment of Additional Issues Required in the Event 
     of Critical Cost Growth.--Section 2433(e)(2)(A) of title 10, 
     United States Code, is amended--
       (1) by redesignating clauses (i), (ii), and (iii) as 
     clauses (ii), (iii), and (iv) respectively; and
       (2) by inserting before clause (ii) (as so redesignated) 
     the following new clause:
       ``(i) any design, engineering, manufacturing, or technology 
     integration issues that contributed significantly to the cost 
     growth of the program;''.
       (b) Requirement for Challenge Program to Address Critical 
     Cost Growth Threshold Breaches in Major Defense Acquisition 
     Programs.--
       (1) Solicitation of challenge proposals.--Section 2359b(c) 
     of title 10, United States Code, is amended--
       (A) by redesignating paragraphs (4), (5), and (6) as 
     paragraphs (5), (6), and (7), respectively; and
       (B) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4)(A) The Under Secretary shall establish procedures for 
     the prompt issuance of a solicitation for challenge proposals 
     addressing--
       ``(i) any acquisition program for which, since the last 
     such announcement, the Secretary concerned has determined 
     under section 2433(d) of this title that the program's 
     acquisition unit cost or procurement unit cost has increased 
     by a percentage equal to or greater than the critical cost 
     growth threshold for the program (in this section referred to 
     as a `critical cost growth threshold breach'); and
       ``(ii) any design, engineering, manufacturing, or 
     technology integration issues, in accordance with the 
     assessment required by section 2433(e)(2)(A) of this title, 
     that have contributed significantly to the cost growth of 
     such program.
       ``(B) A solicitation under this paragraph may be included 
     in a broad agency announcement issued pursuant to paragraph 
     (3) as long as the broad agency announcement is released in 
     an expeditious manner following the determination of the 
     Secretary concerned that a critical cost growth threshold 
     breach has occurred with respect to a major defense 
     acquisition program.''.
       (2) Requirement for guidelines for covering costs of 
     challenge proposals.--Section 2359b(e) of such title is 
     amended by adding at the end the following new paragraph:
       ``(3) In the case of a challenge proposal submitted in 
     response to a solicitation issued as a result of a critical 
     cost growth threshold breach that is determined under full 
     review and evaluation to satisfy each of the criteria 
     specified in subsection (c)(5), the Under Secretary shall 
     establish guidelines for covering the costs of the

[[Page 20757]]

     challenge proposal. If appropriate, such guidelines shall not 
     be restricted to funding provided by the Defense Acquisition 
     Challenge Program, but shall also consider alternative 
     funding sources, such as the acquisition program with respect 
     to which the breach occurred.''.
       (3) Action upon unfavorable full review and evaluation.--
     Section 2359b of such title is amended--
       (A) by redesignating subsections (f), (g), (h), (i), and 
     (j) as subsections (g), (h), (i), (j), and (k) respectively; 
     and
       (B) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f) Action Upon Unfavorable Full Review and Evaluation.--
     Under procedures prescribed by the Under Secretary, if a 
     challenge proposal is determined by a Panel to satisfy each 
     of the criteria specified in subsection (c)(5), but is not 
     determined under a full review and evaluation to satisfy such 
     criteria, the following provisions apply:
       ``(1) The office carrying out the full review and 
     evaluation shall provide to the Panel that conducted the 
     preliminary evaluation a statement containing a summary of 
     the rationale for the unfavorable evaluation.
       ``(2) If the Panel disagrees with the rationale provided 
     under paragraph (1), the Panel may return the challenge 
     proposal to the office for further consideration.''.
       (4) Additional information required to be included in 
     annual report.--Section 2359b(j) of such title, as 
     redesignated by paragraph (3), is amended by striking ``No 
     report is required for a fiscal year in which the Challenge 
     Program is not carried out.'' and inserting ``The report 
     shall also include a list of each challenge proposal that was 
     determined by a Panel to satisfy each of the criteria 
     specified in subsection (c)(5), but was not determined under 
     a full review and evaluation to satisfy such criteria, 
     together with a detailed rationale for the Department's 
     determination that such criteria were not satisfied.''.
       (c) Evaluation and Report Required.--The Under Secretary of 
     Defense for Acquisition, Technology, and Logistics, in 
     coordination with the service acquisition executives, shall--
       (1) evaluate the efficacy of the incentives provided to 
     encourage the adoption of each challenge proposal receiving 
     favorable full review and evaluation, as required by section 
     2359b(e)(2) of title 10, United States Code;
       (2) identify additional incentives and authorities 
     required, if any, to further facilitate the adoption of each 
     challenge proposal receiving favorable full review and 
     evaluation, particularly in the case of challenge proposals 
     submitted in response to critical cost growth threshold 
     breaches (as such term is used in section 2359b of such 
     title); and
       (3) not later than March 1, 2007, submit to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives a report setting forth the results of such 
     evaluation and identification.
       (d) Priority for Proposals From Certain Businesses.--
     Paragraph (6) of section 2359b(c) of such title, as 
     redesignated by paragraph (b)(1)(A), is amended to read as 
     follows:
       ``(6) The Under Secretary--
       ``(A) may establish procedures to ensure that the Challenge 
     Program does not become an avenue for the repetitive 
     submission of proposals that have been previously reviewed 
     and found not to have merit; and
       ``(B) may establish procedures to ensure that the Challenge 
     Program establishes appropriate priorities for proposals from 
     businesses that are not major contractors with the Department 
     of Defense.''.
       (e) Confidentiality.--Subsection (h) of section 2359b of 
     such title, as redesignated by subsection (b)(3), is 
     amended--
       (1) by amending the heading to read as follows: ``Conflicts 
     of Interest and Confidentiality''; and
       (2) by striking the period at the end and inserting the 
     following: ``and that the identity of any person or activity 
     submitting a challenge proposal is not disclosed outside the 
     Federal Government, prior to contract award, without the 
     consent of the person or activity. For purposes of the 
     proceeding sentence, the term `Federal Government' includes 
     both employees of the Federal Government and employees of 
     Federal Government contractors providing advisory and 
     assistance services as described in part 37 of the Federal 
     Acquisition Regulation.''.
       (f) Extension.--Subsection (k) of section 2359b of title 
     10, United States Code, as redesignated by subsection (b)(3), 
     is amended by striking ``September 30, 2007'' and inserting 
     ``September 30, 2012''.
       (g) Additional Conforming Amendments.--Section 2359b of 
     such title is further amended--
       (1) in subsection (c)(7), as redesignated by subsection 
     (b), by striking ``paragraph (4)'' and inserting ``paragraph 
     (5)'';
       (2) in subsection (d)(1), by striking ``subsection (c)(6)'' 
     and inserting ``subsection (c)(7)'';
       (3) in subsection (d)(2), by striking ``subsection (c)(4)'' 
     and inserting ``subsection (c)(5)''; and
       (4) in subsection (e)(1), by striking ``subsection (c)(4)'' 
     and inserting ``subsection (c)(5)''.

     SEC. 214. FUTURE COMBAT SYSTEMS MILESTONE REVIEW.

       (a) Milestone Review Required.--Not later than 120 days 
     after the preliminary design review of the Future Combat 
     Systems program is completed, the Secretary of Defense shall 
     carry out a Defense Acquisition Board milestone review of the 
     Future Combat Systems program. The milestone review shall 
     include an assessment as to each of the following:
       (1) Whether the warfighter's needs are valid and can be 
     best met with the concept of the program.
       (2) Whether the concept of the program can be developed and 
     produced within existing resources.
       (3) Whether the program should--
       (A) continue as currently structured;
       (B) continue in restructured form; or
       (C) be terminated.
       (b) Determinations to Be Made in Assessing Whether Program 
     Should Continue.--In making the assessment required by 
     subsection (a)(3), the Secretary shall make a determination 
     with respect to each of the following:
       (1) Whether each critical technology for the program is at 
     least Technical Readiness Level 6.
       (2) For each system and network component of the program, 
     what the key design and technology risks are, based on System 
     Functional Reviews, Preliminary Design Reviews, and Technical 
     Readiness Levels.
       (3) Whether actual demonstrations, rather than simulations, 
     have shown that the concept of the program will work.
       (4) Whether actual demonstrations, rather than plans, have 
     shown that the software for the program is functional.
       (5) What the cost estimate for the program is.
       (6) What the affordability assessment for the program is, 
     based on that cost estimate.
       (c) Report.--The Secretary shall submit to the 
     congressional defense committees a report on the findings and 
     conclusions of the milestone review required by subsection 
     (a). The report shall include, and display, each of the 
     assessments required by subsection (a) and each of the 
     determinations required by subsection (b).
       (d) Restriction on Procurement Funds Effective Fiscal 
     2009.--
       (1) In general.--For fiscal years beginning with 2009, the 
     Secretary may not obligate any funds for procurement for the 
     Future Combat Systems program.
       (2) Exceptions.--Paragraph (1) does not apply with respect 
     to--
       (A) the obligation of funds for costs attributable to an 
     insertion of new technology (to include spinout systems) into 
     the current force, if the insertion is approved by the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics; or
       (B) the obligation of funds for the non-line-of-sight 
     cannon system.
       (3) Termination.--The requirement of paragraph (1) 
     terminates after the report required by subsection (c) is 
     submitted.

     SEC. 215. DEDICATED AMOUNTS FOR IMPLEMENTING OR EVALUATING 
                   NAVY SHIPBUILDING TECHNOLOGY PROPOSALS UNDER 
                   DEFENSE ACQUISITION CHALLENGE PROGRAM.

       (a) Amounts Required.--Of the amounts appropriated pursuant 
     to the authorization of appropriations in section 201(4) for 
     research, development, test, and evaluation, Defense-wide, 
     $4,000,000 may be available to implement or evaluate 
     challenge proposals specified in subsection (b).
       (b) Challenge Proposals Covered.--A challenge proposal 
     referred to in subsection (a) is a proposal under the Defense 
     Acquisition Challenge Program established by section 2359b of 
     title 10, United States Code, that relates to technology 
     directly contributing to combat systems and open architecture 
     design for Navy ship platforms.

     SEC. 216. INDEPENDENT ESTIMATE OF COSTS OF THE FUTURE COMBAT 
                   SYSTEMS.

       (a) Independent Estimate Required.--
       (1) In general.--The Secretary of Defense shall provide for 
     the preparation of an independent estimate of the anticipated 
     costs of systems development and demonstration with respect 
     to the Future Combat Systems.
       (2) Conduct of estimate.--The estimate required by this 
     subsection shall be prepared by a federally funded research 
     and development center selected by the Secretary for purposes 
     of this subsection.
       (3) Matters to be addressed.--The independent estimate 
     prepared under this subsection shall address costs of 
     research, development, test, and evaluation, and costs of 
     procurement, for--
       (A) the system development and demonstration phase of the 
     core Future Combat Systems;
       (B) the Future Combat Systems technologies to be 
     incorporated into the equipment of the current force of the 
     Army (often referred to as ``spinouts'');
       (C) the installation kits for the incorporation of such 
     technologies into such equipment;
       (D) the systems treated as complementary systems for the 
     Future Combat Systems;
       (E) science and technology initiatives that support the 
     Future Combat Systems program; and
       (F) any pass-through charges anticipated to be assessed by 
     the lead systems integrator of the Future Combat Systems and 
     its major subcontractors.
       (4) Submittal to congress.--Upon completion of the 
     independent estimate required by this subsection, the 
     Secretary shall submit to the congressional defense 
     committees a report on the estimate.
       (5) Deadline for submittal.--The report described in 
     paragraph (4) shall be submitted not later than April 1, 
     2007.
       (b) Pass-Through Charge Defined.--In this section, the term 
     ``pass-through charge'' has the meaning given that term in 
     section 805(c)(5) of the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3373).

[[Page 20758]]



     SEC. 217. FUNDING OF DEFENSE SCIENCE AND TECHNOLOGY PROGRAMS.

       (a) Failure to Comply With Funding Objective.--Section 212 
     of the National Defense Authorization Act for Fiscal Year 
     2000 (10 U.S.C. 2501 note) is amended in subsection (a) by 
     striking ``especially the Air Force Science and Technology 
     Program,''.
       (b) Extension of Funding Objective.--Such section is 
     amended in subsection (b) by striking ``through 2009'' and 
     inserting ``through 2012''.
       (c) Actions Following Failure to Comply With Objective.--
     Such section is further amended by adding at the end the 
     following new subsection:
       ``(c) Actions Following Failure to Comply With Objective.--
     If the proposed budget for a fiscal year covered by 
     subsection (b) fails to comply with the objective set forth 
     in that subsection, the Secretary of Defense shall submit to 
     the congressional defense committees, at the same time that 
     the Department of Defense budget justification materials for 
     the next fiscal year are submitted to Congress--
       ``(1) a detailed, prioritized list, including estimates of 
     required funding, of highly-rated science and technology 
     projects received by the Department through competitive 
     solicitations and broad agency announcements which--
       ``(A) are not funded solely due to lack of resources, but
       ``(B) represent science and technology opportunities that 
     support the research and development programs and goals of 
     the military departments and the Defense Agencies; and
       ``(2) a report, in both classified and unclassified form, 
     containing an analysis and evaluation of international 
     research and technology capabilities, including an 
     identification of any technology areas in which the United 
     States may not have global technical leadership within the 
     next 10 years, in each of the technology areas described in 
     the following plans:
       ``(A) The most current Joint Warfighting Science and 
     Technology Plan required by section 270 of the National 
     Defense Authorization Act for Fiscal Year 1997 (10 U.S.C. 
     2501 note).
       ``(B) The Defense Technology Area Plan of the Department of 
     Defense.
       ``(C) The Basic Research Plan of the Department of 
     Defense.''.

     SEC. 218. HYPERSONICS DEVELOPMENT.

       (a) Establishment of Joint Technology Office on 
     Hypersonics.--The Secretary of Defense shall establish within 
     the Office of the Secretary of Defense a joint technology 
     office on hypersonics. The office shall carry out the program 
     required under subsection (b), and shall have such other 
     responsibilities relating to hypersonics as the Secretary 
     shall specify.
       (b) Program on Hypersonics.--The joint technology office 
     established under subsection (a) shall carry out a program 
     for the development of hypersonics for defense purposes.
       (c) Responsibilities.--In carrying out the program required 
     by subsection (b), the joint technology office established 
     under subsection (a) shall do the following:
       (1) Coordinate and integrate current and future research, 
     development, test, and evaluation programs and system 
     demonstration programs of the Department of Defense on 
     hypersonics.
       (2) Undertake appropriate actions to ensure--
       (A) close and continuous integration of the programs on 
     hypersonics of the military departments with the programs on 
     hypersonics of the Defense Agencies;
       (B) coordination of the programs referred to in 
     subparagraph (A) with the programs on hypersonics of the 
     National Aeronautics and Space Administration; and
       (C) that developmental testing resources are adequate and 
     facilities are made available in a timely manner to support 
     hypersonics research, demonstration programs, and system 
     development.
       (3) Approve demonstration programs on hypersonic systems.
       (4) Ensure that any demonstration program on hypersonic 
     systems that is carried out in any year after its approval 
     under paragraph (3) is carried out only if certified under 
     subsection (e) as being consistent with the roadmap under 
     subsection (d).
       (d) Roadmap.--
       (1) Roadmap required.--The joint technology office 
     established under subsection (a) shall develop, and every two 
     years revise, a roadmap for the hypersonics programs of the 
     Department of Defense.
       (2) Coordination.--The roadmap shall be developed and 
     revised under paragraph (1) in coordination with the Joint 
     Staff and in consultation with the National Aeronautics and 
     Space Administration.
       (3) Elements.--The roadmap shall include the following 
     matters:
       (A) Anticipated or potential mission requirements for 
     hypersonics.
       (B) Short-term, mid-term, and long-term goals for the 
     Department of Defense on hypersonics, which shall be 
     consistent with the missions and anticipated requirements of 
     the Department over the applicable period.
       (C) A schedule for meeting such goals, including--
       (i) the activities and funding anticipated to be required 
     for meeting such goals; and
       (ii) the activities of the National Aeronautics and Space 
     Administration to be leveraged by the Department to meet such 
     goals.
       (D) The test and evaluation facilities required to support 
     the activities identified in subparagraph (C), along with the 
     schedule and funding required to upgrade those facilities, as 
     necessary.
       (E) Acquisition transition plans for hypersonics.
       (4) Submittal to congress.--The Secretary shall submit to 
     the congressional defense committees--
       (A) at the same time as the submittal to Congress of the 
     budget for fiscal year 2008 (as submitted pursuant to section 
     1105 of title 31, United States Code), the roadmap developed 
     under paragraph (1); and
       (B) at the same time as the submittal to Congress of the 
     budget for each even-numbered fiscal year after 2008, the 
     roadmap revised under paragraph (1).
       (e) Annual Review and Certification of Funding.--
       (1) Annual review.--The joint technology office established 
     under subsection (a) shall conduct on an annual basis a 
     review of--
       (A) the funding available for research, development, test, 
     and evaluation and demonstration programs within the 
     Department of Defense for hypersonics, in order to determine 
     whether or not such funding is consistent with the roadmap 
     developed under subsection (d); and
       (B) the hypersonics demonstration programs of the 
     Department, in order to determine whether or not such 
     programs avoid duplication of effort and support the goals of 
     the Department in a manner consistent with the roadmap 
     developed under subsection (d).
       (2) Certification.--The joint technology office shall, as a 
     result of each review under paragraph (1), certify to the 
     Secretary whether or not the funding and programs subject to 
     such review are consistent with the roadmap developed under 
     subsection (d).
       (3) Termination.--The requirements of this subsection shall 
     terminate after the submittal to Congress of the budget for 
     fiscal year 2012 pursuant to section 1105 of title 31, United 
     States Code.
       (f) Reports to Congress.--If, as a result of a review under 
     subsection (e), funding or a program on hypersonics is 
     certified under that subsection not to be consistent with the 
     roadmap developed under subsection (d), the Secretary shall 
     submit to the congressional defense committees, at the same 
     time as the submittal to Congress of the budget (as submitted 
     pursuant to section 1105 of title 31, United States Code), a 
     report on such funding or program, as the case may be, 
     describing how such funding or program is not consistent with 
     the roadmap, together with a statement of the actions to be 
     taken by the Department.

     SEC. 219. REPORT ON PROGRAM FOR REPLACEMENT OF NUCLEAR 
                   WARHEADS ON CERTAIN TRIDENT SEA-LAUNCHED 
                   BALLISTIC MISSILES WITH CONVENTIONAL WARHEADS.

       (a) Report Required.--Not later than February 1, 2007, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report setting forth a proposal to 
     replace nuclear warheads on 24 Trident D-5 sea-launched 
     ballistic missiles with conventional kinetic warheads for 
     deployment on submarines that carry Trident sea-launched 
     ballistic missiles. The report shall be prepared in 
     consultation with the Secretary of State.
       (b) Elements.--The report required by subsection (a) shall 
     include the following:
       (1) A description of the types of scenarios, types of 
     targets, and circumstances in which a conventional sea-
     launched ballistic missile might be used.
       (2) A discussion of the weapon systems or weapons, whether 
     current or planned, that could be used as an alternative for 
     each of the scenarios, target types, and circumstances set 
     forth under paragraph (1), and a statement of any reason why 
     each such weapon system or weapon is not a suitable 
     alternative to a conventional sea-launched ballistic missile.
       (3) A description of the command and control arrangements 
     for conventional sea-launched ballistic missiles, including 
     launch authority and the use of Permissive Action Links 
     (PALs).
       (4) An assessment of the capabilities of other countries to 
     detect and track the launch of a conventional or nuclear sea-
     launched ballistic missile.
       (5) An assessment of the capabilities of other countries to 
     discriminate between the launch of a nuclear sea-launched 
     ballistic missile and a conventional sea-launched ballistic 
     missile, other than in a testing scenario.
       (6) An assessment of the notification and other protocols 
     that would have to be in place before using any conventional 
     sea-launched ballistic missile and a plan for entering into 
     such protocols.
       (7) An assessment of the adequacy of the intelligence that 
     would be needed to support an attack involving conventional 
     sea-launched ballistic missiles.
       (8) A description of the total program cost, including the 
     procurement costs of additional D-5 missiles, of the 
     conventional Trident sea-launched ballistic missile program, 
     by fiscal year.
       (9) An analysis and assessment of the implications for 
     ballistic missile proliferation if the United States decides 
     to go forward with the conventional Trident sea-launched 
     ballistic missile program or any other conventional long-
     range ballistic missile program.
       (10) An analysis and assessment of the implications for the 
     United States missile defense system if other countries use 
     conventional long-range ballistic missiles.
       (11) An analysis of any problems created by the ambiguity 
     that results from the use of the same ballistic missile for 
     both conventional and nuclear warheads.
       (12) An analysis and assessment of the methods that other 
     countries might use to resolve the

[[Page 20759]]

     ambiguities associated with a nuclear or conventional sea-
     launched ballistic missile.
       (13) An analysis, by the Secretary of State, of the 
     international, treaty, and other concerns that would be 
     associated with the use of a conventional sea-launched 
     ballistic missile and recommendations for measures to 
     mitigate or eliminate such concerns.
       (14) A joint statement by the Secretary of Defense and the 
     Secretary of State on how to ensure that the use of a 
     conventional sea-launched ballistic missile will not result 
     in an intentional, inadvertent, mistaken, or accidental 
     reciprocal or responsive launch of a nuclear strike by any 
     other country.
                  Subtitle C--Missile Defense Programs

     SEC. 221. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

       Upon approval by the Secretary of Defense, funds authorized 
     to be appropriated for fiscal years 2007 and 2008 for 
     research, development, test, and evaluation for the Missile 
     Defense Agency may be used for the development and fielding 
     of ballistic missile defense capabilities.

     SEC. 222. LIMITATION ON USE OF FUNDS FOR SPACE-BASED 
                   INTERCEPTOR.

       (a) Limitation.--No funds appropriated or otherwise made 
     available to the Department of Defense may be obligated or 
     expended for the testing or deployment of a space-based 
     interceptor until 90 days after the date on which a report 
     described in subsection (c) is submitted.
       (b) Space-Based Interceptor Defined.--For purposes of this 
     section, the term ``space-based interceptor'' means a kinetic 
     or directed energy weapon that is stationed on a satellite or 
     orbiting platform and that is intended to destroy another 
     satellite in orbit or a ballistic missile launched from 
     earth.
       (c) Report.--A report described in this subsection is a 
     report prepared by the Director of the Missile Defense Agency 
     and submitted to the congressional defense committees 
     containing the following:
       (1) A description of the essential components of a proposed 
     space-based interceptor system, including a description of 
     how the system proposed would enhance or complement other 
     missile defense systems.
       (2) An estimate of the acquisition and life-cycle cost of 
     the system described under paragraph (1), including lift cost 
     and periodic replacement cost due to depreciation and 
     attrition.
       (3) An analysis of the vulnerability of such a system to 
     counter-measures, including direct ascent and co-orbital 
     interceptors, and an analysis of the functionality of such a 
     system in the aftermath of a nuclear detonation in space.
       (4) A projection of the foreign policy and national 
     security implications of a space-based interceptor program, 
     including the probable response of United States adversaries 
     and United States allies.

     SEC. 223. POLICY OF THE UNITED STATES ON PRIORITIES IN THE 
                   DEVELOPMENT, TESTING, AND FIELDING OF MISSILE 
                   DEFENSE CAPABILITIES.

       (a) Findings.--Congress makes the following findings:
       (1) In response to the threat posed by ballistic missiles, 
     President George W. Bush in December 2002 directed the 
     Secretary of Defense to proceed with the fielding of an 
     initial set of missile defense capabilities in 2004 and 2005.
       (2) According to assessments by the intelligence community 
     of the United States, North Korea tested in 2005 a new solid 
     propellant short-range ballistic missile, conducted a launch 
     of a Taepodong-2 ballistic missile/space launch vehicle in 
     2006, and is likely developing intermediate-range and 
     intercontinental ballistic missile capabilities that could 
     someday reach as far as the United States with a nuclear 
     payload.
       (3) According to assessments by the intelligence community 
     of the United States, Iran continued in 2005 to test its 
     medium-range ballistic missile, and the danger that Iran will 
     acquire a nuclear weapon and integrate it with a ballistic 
     missile Iran already possesses is a reason for immediate 
     concern.
       (b) Policy.--It is the policy of the United States that the 
     Department of Defense accord a priority within the missile 
     defense program to the development, testing, fielding, and 
     improvement of effective near-term missile defense 
     capabilities, including the ground-based midcourse defense 
     system, the Aegis ballistic missile defense system, the 
     Patriot PAC-3 system, the Terminal High Altitude Area Defense 
     system, and the sensors necessary to support such systems.

     SEC. 224. ONE-YEAR EXTENSION OF COMPTROLLER GENERAL 
                   ASSESSMENTS OF BALLISTIC MISSILE DEFENSE 
                   PROGRAMS.

       Section 232(g) of the National Defense Authorization Act 
     for Fiscal Year 2002 (10 U.S.C. 2431 note) is amended--
       (1) in paragraph (1), by striking ``through 2007'' and 
     inserting ``through 2008''; and
       (2) in paragraph (2), by striking ``through 2008'' and 
     inserting ``through 2009''.

     SEC. 225. SUBMITTAL OF PLANS FOR TEST AND EVALUATION OF THE 
                   OPERATIONAL CAPABILITY OF THE BALLISTIC MISSILE 
                   DEFENSE SYSTEM.

       Section 234(a) of the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3174; 10 
     U.S.C. 2431 note) is amended by adding at the end the 
     following new paragraph:
       ``(3) Submittal to congress.--Each plan prepared under this 
     subsection and approved by the Director of Operational Test 
     and Evaluation shall be submitted to the congressional 
     defense committees not later than 30 days after the date of 
     the approval of such plan by the Director.''.

     SEC. 226. ANNUAL REPORTS ON TRANSITION OF BALLISTIC MISSILE 
                   DEFENSE PROGRAMS TO THE MILITARY DEPARTMENTS.

       (a) Report Required.--Not later than March 1, 2007, and 
     annually thereafter through 2013, the Under Secretary of 
     Defense for Acquisition, Technology, and Logistics shall 
     submit to the congressional defense committees a report on 
     the plans of the Department of Defense for the transition of 
     missile defense programs from the Missile Defense Agency to 
     the military departments.
       (b) Scope of Reports.--Each report required by subsection 
     (a) shall cover the period covered by the future-years 
     defense program that is submitted under section 221 of title 
     10, United States Code, in the year in which such report is 
     submitted.
       (c) Elements.--Each report required by subsection (a) shall 
     include the following:
       (1) An identification of--
       (A) the missile defense programs planned to be transitioned 
     from the Missile Defense Agency to the military departments; 
     and
       (B) the missile defense programs, if any, not planned for 
     transition to the military departments.
       (2) The schedule for transition of each missile defense 
     program planned to be transitioned to a military department, 
     and an explanation of such schedule.
       (3) A description of--
       (A) the status of the plans of the Missile Defense Agency 
     and the military departments for the transition of missile 
     defense programs from that agency to the military 
     departments; and
       (B) the status of any agreement between the Missile Defense 
     Agency and one or more of the military departments on the 
     transition of any such program from that agency to the 
     military departments, including any agreement on the 
     operational test criteria that must be achieved before such 
     transition.
       (4) An identification of the entity of the Department of 
     Defense (whether the Missile Defense Agency, a military 
     department, or both) that will be responsible for funding 
     each missile defense program to be transitioned to a military 
     department, and at what date.
       (5) A description of the type of funds that will be used 
     (whether funds for research, development, test, and 
     evaluation, procurement, military construction, or operation 
     and maintenance) for each missile defense program to be 
     transitioned to a military department.
       (6) An explanation of the number of systems planned for 
     procurement for each missile defense program to be 
     transitioned to a military department, and the schedule for 
     procurement of each such system.
                       Subtitle D--Other Matters

     SEC. 231. POLICIES AND PRACTICES ON TEST AND EVALUATION TO 
                   ADDRESS EMERGING ACQUISITION APPROACHES.

       (a) Revision to Report Requirement.--Section 2399(b) of 
     title 10, United States Code, is amended--
       (1) by amending paragraph (2) to read as follows:
       ``(2) The Director shall analyze the results of the 
     operational test and evaluation conducted for each major 
     defense acquisition program. At the conclusion of such 
     testing, the Director shall prepare a report stating--
       ``(A) the opinion of the Director as to--
       ``(i) whether the test and evaluation performed were 
     adequate; and
       ``(ii) whether the results of such test and evaluation 
     confirm that the items or components actually tested are 
     effecive and suitable for combat; and
       ``(B) additional information on the operational 
     capabilities of the items or components that the Director 
     considers appropriate based on the testing conducted.'';
       (2) by redesignating paragraph (5) as paragraph (6); and
       (3) by inserting after paragraph (4) the following:
       ``(5) If, before a final decision described in paragraph 
     (4) is made for a major defense acquisition program, a 
     decision is made within the Department of Defense to proceed 
     to operational use of that program or to make procurement 
     funds available for that program, the Director shall submit 
     to the Secretary of Defense and the congressional defense 
     committees the report with respect to that program under 
     paragraph (2) as soon as practicable after the decision 
     described in this paragraph is made.''.
       (b) Review and Revision of Policies and Practices.--
       (1) Review.--During fiscal year 2007, the Under Secretary 
     of Defense for Acquisition, Technology, and Logistics and the 
     Director of Operational Test and Evaluation shall review 
     Department of Defense policies and practices on test and 
     evaluation in order to--
       (A) reaffirm the test and evaluation principles that should 
     guide traditional acquisition programs; and
       (B) determine how best to apply appropriate test and 
     evaluation principles to emerging acquisition approaches.
       (2) Revised guidance.--If the Under Secretary determines as 
     a result of the review under paragraph (1) that a revision of 
     the policies and practices referred to in that paragraph is 
     necessary, the Under Secretary and the Director shall jointly 
     issue new or revised guidance for the Department of Defense 
     on test and evaluation to address that determination.
       (c) Issues to Be Addressed.--In carrying out subsection 
     (b), the Under Secretary shall address policies and practices 
     on test and evaluation in order to--
       (1) ensure the performance of test and evaluation 
     activities with regard to--

[[Page 20760]]

       (A) items that are acquired pursuant to the authority for 
     rapid acquisition and deployment of items in section 806 of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003 (10 U.S.C. 2302 note);
       (B) programs that are conducted pursuant to the authority 
     for spiral development in section 803 of the Bob Stump 
     National Defense Authorization Act for Fiscal Year 2003 
     (Public Law 107-314; 116 Stat. 2603; 10 U.S.C. 2430 note), or 
     other authority for the conduct of incremental acquisition 
     programs;
       (C) systems that are acquired pursuant to other emerging 
     acquisition approaches, as approved by the Under Secretary; 
     and
       (D) equipment that is not subject to the operational test 
     and evaluation requirements in sections 2366 and 2399 of 
     title 10, United States Code, but that may require limited 
     operational test and evaluation for the purpose of ensuring 
     the safety and survivability of such equipment and personnel 
     using such equipment; and
       (2) ensure the appropriate use, if any, of operational test 
     and evaluation resources to assess technology readiness 
     levels for the purpose of section 2366a of title 10, United 
     States Code, and other applicable technology readiness 
     requirements.
       (d) Inclusion of Testing Needs in Strategic Plan.--The 
     Director, Test Resource Management Center, shall ensure that 
     the strategic plan for Department of Defense test and 
     evaluation resources developed pursuant to section 196 of 
     title 10, United States Code--
       (1) reflects any testing needs of the Department of Defense 
     that are identified as a result of activities under 
     subsection (b); and
       (2) includes an assessment of the test and evaluation 
     facilities, resources, and budgets that will be required to 
     meet such needs.
       (e) Report to Congress.--Not later than nine months after 
     the date of the enactment of this Act, the Under Secretary 
     and the Director of Operational Test and Evaluation shall 
     submit to the congressional defense committees a report on 
     the review conducted under paragraph (1) of subsection (b), 
     including any new or revised guidance issued pursuant to 
     paragraph (2) of that subsection.
       (f) Clarification of Duties With Respect to Force 
     Protection Equipment.--Section 139(b) of title 10, United 
     States Code, is amended--
       (1) by redesignating paragraphs (3) through (6) as 
     paragraphs (4) through (7), respectively; and
       (2) by inserting after paragraph (2) the following:
       ``(3) provide guidance to and consult with the officials 
     described in paragraph (2) with respect to operational test 
     and evaluation or survivability testing (or both) within the 
     Department of Defense of force protection equipment 
     (including non-lethal weapons), which, in such a case--
       ``(A) shall be guidance and consultation for the purposes 
     of--
       ``(i) expediting suitable operational test and evaluation;
       ``(ii) providing objective subject-matter expertise;
       ``(iii) encouraging data sharing between Department of 
     Defense components; and
       ``(iv) where appropriate, facilitating the use of common 
     test standards; and
       ``(B) does not authorize the Director--
       ``(i) to approve test and evaluation plans for such 
     equipment; or
       ``(ii) to in any manner delay deployment of such 
     equipment;''.

     SEC. 232. EXTENSION OF REQUIREMENT FOR GLOBAL RESEARCH WATCH 
                   PROGRAM.

       Section 2365(f) of title 10, United States Code, is amended 
     by striking ``September 30, 2006'' and inserting ``September 
     30, 2011''.

     SEC. 233. SENSE OF CONGRESS ON TECHNOLOGY SHARING OF JOINT 
                   STRIKE FIGHTER TECHNOLOGY.

       It is the sense of Congress that the Secretary of Defense 
     should share technology with regard to the Joint Strike 
     Fighter between the United States Government and the 
     Government of the United Kingdom consistent with the national 
     security interests of both nations.

     SEC. 234. REPORT ON VEHICLE-BASED ACTIVE PROTECTION SYSTEMS 
                   FOR CERTAIN BATTLEFIELD THREATS.

       (a) Independent Assessment.--The Secretary of Defense shall 
     enter into a contract with an appropriate entity independent 
     of the United States Government to conduct an assessment of 
     various foreign and domestic technological approaches to 
     vehicle-based active protection systems for defense against 
     both chemical energy and kinetic energy top-attack and direct 
     fire threats, including anti-tank missiles and rocket 
     propelled grenades, mortars, and other similar battlefield 
     threats.
       (b) Report.--
       (1) Report required.--The contract required by subsection 
     (a) shall require the entity entering into such contract to 
     submit to the Secretary of Defense, and to the congressional 
     defense committees, not later than 180 days after the date of 
     the enactment of this Act, a report on the assessment 
     required by that subsection.
       (2) Elements.--The report required under paragraph (1) 
     shall include--
       (A) a detailed comparative analysis and assessment of the 
     technical approaches covered by the assessment under 
     subsection (a), including the feasibility, military utility, 
     cost, and potential short-term and long-term development and 
     deployment schedule of such approaches; and
       (B) any other elements specified by the Secretary in the 
     contract under subsection (a).
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense programs.

                  Subtitle B--Environmental Provisions

Sec. 311. Revision of requirement for unexploded ordnance program 
              manager.
Sec. 312. Funding of cooperative agreements under environmental 
              restoration program.
Sec. 313. Response plan for remediation of unexploded ordnance, 
              discarded military munitions, and munitions constituents.
Sec. 314. Research on effects of ocean disposal of munitions.
Sec. 315. Reimbursement of Environmental Protection Agency for certain 
              costs in connection with Moses Lake Wellfield Superfund 
              Site, Moses Lake, Washington.
Sec. 316. Transfer of Government-furnished uranium stored at Sequoyah 
              Fuels Corporation, Gore, Oklahoma.
Sec. 317. Extension of authority to grant exemptions to certain 
              requirements.
Sec. 318. National Academy of Sciences study on human exposure to 
              contaminated drinking water at Camp Lejeune, North 
              Carolina.

    Subtitle C--Program Requirements, Restrictions, and Limitations

Sec. 321. Limitation on financial management improvement and audit 
              initiatives within the Department of Defense.
Sec. 322. Funds for exhibits for the national museums of the Armed 
              Forces.
Sec. 323. Prioritization of funds for equipment readiness and strategic 
              capability.
Sec. 324. Limitation on deployment of Marine Corps Total Force System 
              to Navy.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Permanent exclusion of certain contract expenditures from 
              percentage limitation on the performance of depot-level 
              maintenance.
Sec. 332. Minimum capital investment for certain depots.
Sec. 333. Extension of temporary authority for contractor performance 
              of security guard functions.

                          Subtitle E--Reports

Sec. 341. Report on Navy Fleet Response Plan.
Sec. 342. Report on Navy surface ship rotational crew programs.
Sec. 343. Report on Army live-fire ranges in Hawaii.
Sec. 344. Comptroller General report on joint standards and protocols 
              for access control systems at Department of Defense 
              installations.
Sec. 345. Comptroller General report on readiness of Army and Marine 
              Corps ground forces.
Sec. 346. Report on Air Force safety requirements for Air Force flight 
              training operations at Pueblo Memorial Airport, Colorado.
Sec. 347. Annual report on Personnel Security Investigations for 
              Industry and National Industrial Security Program.
Sec. 348. Five-year extension of annual report on training range 
              sustainment plan and training range inventory.
Sec. 349. Reports on withdrawal or diversion of equipment from reserve 
              units for support of reserve units being mobilized and 
              other units.

                       Subtitle F--Other Matters

Sec. 351. Department of Defense strategic policy on prepositioning of 
              materiel and equipment.
Sec. 352. Authority to make Department of Defense horses available for 
              adoption.
Sec. 353. Sale and use of proceeds of recyclable munitions materials.
Sec. 354. Recovery and transfer to Corporation for the Promotion of 
              Rifle Practice and Firearms Safety of certain firearms, 
              ammunition, and parts granted to foreign countries.
Sec. 355. Extension of Department of Defense telecommunications benefit 
              program.
Sec. 356. Extension of availability of funds for commemoration of 
              success of the Armed Forces in Operation Enduring Freedom 
              and Operation Iraqi Freedom.
Sec. 357. Capital security cost sharing.
Sec. 358. Utilization of fuel cells as back-up power systems in 
              Department of Defense operations.
Sec. 359. Improving Department of Defense support for civil 
              authorities.
Sec. 360. Energy efficiency in weapons platforms.
Sec. 361. Prioritization of funds within Navy mission operations, ship 
              maintenance, combat support forces, and weapons system 
              support.
Sec. 362. Provision of adequate storage space to secure personal 
              property outside of assigned military family housing 
              unit.

[[Page 20761]]

Sec. 363. Expansion of payment of replacement value of personal 
              property damaged during transport at Government expense.
              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2007 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, $24,416,352,000.
       (2) For the Navy, $31,157,639,000.
       (3) For the Marine Corps, $3,863,462,000.
       (4) For the Air Force, $31,081,257,000.
       (5) For Defense-wide activities, $20,093,876,000.
       (6) For the Army Reserve, $2,260,802,000.
       (7) For the Naval Reserve, $1,275,764,000.
       (8) For the Marine Corps Reserve, $211,311,000.
       (9) For the Air Force Reserve, $2,698,400,000.
       (10) For the Army National Guard, $4,776,421,000.
       (11) For the Air National Guard, $5,292,517,000.
       (12) For the United States Court of Appeals for the Armed 
     Forces, $11,721,000.
       (13) For Environmental Restoration, Army, $413,794,000.
       (14) For Environmental Restoration, Navy, $304,409,000.
       (15) For Environmental Restoration, Air Force, 
     $423,871,000.
       (16) For Environmental Restoration, Defense-wide, 
     $18,431,000.
       (17) For Environmental Restoration, Formerly Used Defense 
     Sites, $282,790,000.
       (18) For Former Soviet Union Threat Reduction programs, 
     $372,128,000.
       (19) For Overseas Humanitarian Disaster and Civic Aid, 
     $63,204,000.

     SEC. 302. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2007 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, $161,998,000.
       (2) For the National Defense Sealift Fund, $1,071,932,000.
       (3) For the Defense Working Capital Fund, Defense 
     Commissary, $1,184,000,000.
       (4) For the Pentagon Reservation Maintenance Revolving 
     Fund, $18,500,000.

     SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

       (a) Defense Health Program.--Funds are hereby authorized to 
     be appropriated for the Department of Defense for fiscal year 
     2007 for expenses, not otherwise provided for, for the 
     Defense Health Program, $21,426,621,000, of which--
       (1) $20,894,663,000 is for Operation and Maintenance;
       (2) $135,603,000 is for Research, Development, Test, and 
     Evaluation; and
       (3) $396,355,000 is for Procurement.
       (b) Chemical Agents and Munitions Destruction, Defense.--
     (1) Funds are hereby authorized to be appropriated for the 
     Department of Defense for fiscal year 2007 for expenses, not 
     otherwise provided for, for Chemical Agents and Munitions 
     Destruction, Defense, $1,277,304,000, of which--
       (A) $1,046,290,000 is for Operation and Maintenance; and
       (B) $231,014,000 is for Research, Development, Test, and 
     Evaluation.
       (2) Amounts authorized to be appropriated under paragraph 
     (1) are authorized for--
       (A) the destruction of lethal chemical agents and munitions 
     in accordance with section 1412 of the Department of Defense 
     Authorization Act for Fiscal Year 1986 (50 U.S.C. 1521); and
       (B) the destruction of chemical warfare materiel of the 
     United States that is not covered by section 1412 of such 
     Act.
       (c) Drug Interdiction and Counter-Drug Activities, Defense-
     Wide.--Funds are hereby authorized to be appropriated for the 
     Department of Defense for fiscal year 2006 for expenses, not 
     otherwise provided for, for Drug Interdiction and Counter-
     Drug Activities, Defense-wide, $926,890,000.
       (d) Defense Inspector General.--Funds are hereby authorized 
     to be appropriated for the Department of Defense for fiscal 
     year 2006 for expenses, not otherwise provided for, for the 
     Office of the Inspector General of the Department of Defense, 
     $216,297,000, of which--
       (1) $214,897,000 is for Operation and Maintenance; and
       (2) $1,400,000 is for Procurement.
                  Subtitle B--Environmental Provisions

     SEC. 311. REVISION OF REQUIREMENT FOR UNEXPLODED ORDNANCE 
                   PROGRAM MANAGER.

       Section 2701(k) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``establish'' and inserting ``designate''; 
     and
       (B) by inserting ``research,'' after ``characterization,'';
       (2) by striking paragraph (2) and redesignating paragraph 
     (3) as paragraph (4); and
       (3) by inserting after paragraph (1) the following new 
     paragraphs:
       ``(2) The position of program manager shall be filled by--
       ``(A) an employee in a position that is equivalent to pay 
     grade O-6 or above; or
       ``(B) a member of the armed forces who is serving in the 
     grade of colonel or, in the case of the Navy, captain, or in 
     a higher grade.
       ``(3) The program manager shall report to the Deputy Under 
     Secretary of Defense for Installations and Environment.''.

     SEC. 312. FUNDING OF COOPERATIVE AGREEMENTS UNDER 
                   ENVIRONMENTAL RESTORATION PROGRAM.

       Section 2701(d)(2) of title 10, United States Code, is 
     amended by adding at the end the following new sentence: 
     ``This two-year limitation does not apply to an agreement 
     funded using amounts in the Department of Defense Base 
     Closure Account 1990 or the Department of Defense Base 
     Closure Account 2005 established under sections 2906 and 
     2906A of the Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).''.

     SEC. 313. RESPONSE PLAN FOR REMEDIATION OF UNEXPLODED 
                   ORDNANCE, DISCARDED MILITARY MUNITIONS, AND 
                   MUNITIONS CONSTITUENTS.

       (a) Performance Goals for Remediation.--The Secretary of 
     Defense shall set the following remediation goals with regard 
     to unexploded ordnance, discarded military munitions, and 
     munitions constituents:
       (1) To complete, by not later than September 30, 2007, 
     preliminary assessments of unexploded ordnance, discarded 
     military munitions, and munitions constituents at all active 
     installations and formerly used defense sites (other than 
     operational ranges).
       (2) To complete, by not later than September 30, 2010, site 
     inspections of unexploded ordnance, discarded military 
     munitions, and munitions constituents at all active 
     installations and formerly used defense sites (other than 
     operational ranges).
       (3) To achieve, by not later than September 30, 2009, a 
     remedy in place or response complete for unexploded ordnance, 
     discarded military munitions, and munitions constituents at 
     all military installations closed or realigned as part of a 
     round of defense base closure and realignment occurring prior 
     to the 2005 round.
       (4) To achieve, by a date certain established by the 
     Secretary of Defense, a remedy in place or response complete 
     for unexploded ordnance, discarded military munitions, and 
     munitions constituents at all active installations and 
     formerly used defense sites (other than operational ranges) 
     and all military installations realigned or closed under the 
     2005 round of defense base closure and realignment.
       (b) Response Plan Required.--
       (1) In general.--Not later than March 1, 2007, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a comprehensive plan for addressing the 
     remediation of unexploded ordnance, discarded military 
     munitions, and munitions constituents at current and former 
     defense sites (other than operational ranges).
       (2) Content.--The plan required by paragraph (1) shall 
     include--
       (A) a schedule, including interim goals, for achieving the 
     goals described in paragraphs (1) through (3) of subsection 
     (a), based upon the Munitions Response Site Prioritization 
     Protocol established by the Department of Defense;
       (B) such interim goals as the Secretary determines feasible 
     for efficiently achieving the goal required under paragraph 
     (4) of such subsection; and
       (C) an estimate of the funding required to achieve the 
     goals established pursuant to such subsection and the interim 
     goals established pursuant to subparagraphs (A) and (B).
       (3) Updates.--Not later than March 15 of 2008, 2009, and 
     2010, the Secretary shall submit to the congressional defense 
     committees an update of the plan required under paragraph 
     (1). The Secretary may include the update in the report on 
     environmental restoration activities that is submitted to 
     Congress under section 2706(a) of title 10, United States 
     Code, in the year in which that update is required and may 
     include in the update any adjustment to the remediation goals 
     established under subsection (a) that the Secretary 
     determines necessary to respond to unforeseen circumstances.
       (c) Report on Reuse Standards and Principles.--Not later 
     than March 1, 2007, the Secretary of Defense shall submit to 
     the congressional defense committees a report on the status 
     of the efforts of the Department of Defense to achieve 
     agreement with relevant regulatory agencies on appropriate 
     reuse standards or principles, including--
       (1) a description of any standards or principles that have 
     been agreed upon; and
       (2) a discussion of any issues that remain in disagreement, 
     including the impact that any such disagreement is likely to 
     have on the ability of the Department of Defense to carry out 
     the response plan required by subsection (b).
       (d) Definitions.--In this section:
       (1) The terms ``unexploded ordnance'' and ``operational 
     range'' have the meanings given such terms in section 101(e) 
     of title 10, United States Code.
       (2) The terms ``discarded military munitions'', ``munitions 
     constituents'', and ``defense site'' have the meanings given 
     such terms in section 2710(e) of such title.
       (e) Conforming Repeal.--Section 313 of the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107; 
     115 Stat. 1051; 10 U.S.C. 2706 note) is repealed.

     SEC. 314. RESEARCH ON EFFECTS OF OCEAN DISPOSAL OF MUNITIONS.

       (a) Identification of Disposal Sites.--
       (1) Historical review.--The Secretary of Defense shall 
     conduct a historical review of available records to determine 
     the number, size, and

[[Page 20762]]

     probable locations of sites where the Armed Forces disposed 
     of military munitions in coastal waters. The historical 
     review shall, to the extent possible, identify the types of 
     munitions at individual sites.
       (2) Cooperation.--The Secretary shall request the 
     assistance of the Coast Guard, the National Oceanic and 
     Atmospheric Administration, and other relevant Federal 
     agencies in conducting the review required by this 
     subsection.
       (3) Interim reports.--The Secretary shall periodically, but 
     no less often than annually, release any new information 
     obtained during the historical review conducted under 
     paragraph (1). The Secretary may withhold from public release 
     the exact nature and locations of munitions the potential 
     unauthorized retrieval of which could pose a significant 
     threat to the national defense or public safety.
       (4) Inclusion of information in annual report on 
     environmental restoration activities.--The Secretary shall 
     include the information obtained pursuant to the review 
     conducted under paragraph (1) in the annual report on 
     environmental restoration activities submitted to Congress 
     under section 2706 of title 10, United States Code.
       (5) Final report.--The Secretary shall complete the 
     historical review required under paragraph (1) and submit a 
     final report on the findings of such review in the annual 
     report on environmental restoration activities submitted to 
     Congress for fiscal year 2009.
       (b) Identification of Navigational and Safety Hazards.--
       (1) Identification of hazards.--The Secretary of Defense 
     shall provide available information to the Secretary of 
     Commerce to assist the National Oceanic and Atmospheric 
     Administration in preparing nautical charts and other 
     navigational materials for coastal waters that identify known 
     or potential hazards posed by disposed military munitions to 
     private activities, including commercial shipping and fishing 
     operations.
       (2) Continuation of information activities.--The Secretary 
     of Defense shall continue activities to inform potentially 
     affected users of the ocean environment, particularly fishing 
     operations, of the possible hazards from contact with 
     disposed military munitions and the proper methods to 
     mitigate such hazards.
       (c) Research.--
       (1) In general.--The Secretary of Defense shall continue to 
     conduct research on the effects on the ocean environment and 
     those who use it of military munitions disposed of in coastal 
     waters.
       (2) Scope.--Research under paragraph (1) shall include--
       (A) the sampling and analysis of ocean waters and sea beds 
     at or adjacent to military munitions disposal sites selected 
     pursuant to paragraph (3) to determine whether the disposed 
     military munitions have caused or are causing contamination 
     of such waters or sea beds;
       (B) investigation into the long-term effects of seawater 
     exposure on disposed military munitions, particularly effects 
     on chemical munitions;
       (C) investigation into the impacts any such contamination 
     may have on the ocean environment and those who use it, 
     including public health risks;
       (D) investigation into the feasibility of removing or 
     otherwise remediating the military munitions; and
       (E) the development of effective safety measures for 
     dealing with such military munitions.
       (3) Research criteria.--In conducting the research required 
     by this subsection, the Secretary shall ensure that the 
     sampling, analysis, and investigations are conducted at 
     representative sites, taking into account factors such as 
     depth, water temperature, nature of the military munitions 
     present, and relative proximity to onshore populations. In 
     conducting such research, the Secretary shall select at least 
     two representative sites each in the areas of the Atlantic 
     coast, the Pacific coast (including Alaska), and the Hawaiian 
     Islands.
       (4) Authority to make grants and enter into cooperative 
     agreements.--In conducting research under this subsection, 
     the Secretary may make grants to, and enter into cooperative 
     agreements with, qualified research entities.
       (d) Monitoring.--If the historical review required by 
     subsection (a) or the research required by subsection (c) 
     indicates that contamination is being released into the ocean 
     waters from disposed military munitions at a particular site 
     or that the site poses a significant public health or safety 
     risk, the Secretary of Defense shall institute appropriate 
     monitoring mechanisms at that site and report to the 
     congressional defense committees on any additional measures 
     that may be necessary to address the release or risk, as 
     applicable.
       (e) Definitions.--In this section:
       (1) The term ``coastal waters'' means that part of the 
     ocean extending from the coast line of the United States to 
     the outer boundary of the outer Continental Shelf.
       (2) The term ``coast line'' has the meaning given that term 
     in section 2(c) of the Submerged Lands Act (43 U.S.C. 
     1301(c)).
       (3) The term ``military munitions'' has the meaning given 
     that term in section 101(e) of title 10, United States Code.
       (4) The term ``outer Continental Shelf'' has the meaning 
     given that term in section 2(a) of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1331(a)).

     SEC. 315. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY 
                   FOR CERTAIN COSTS IN CONNECTION WITH MOSES LAKE 
                   WELLFIELD SUPERFUND SITE, MOSES LAKE, 
                   WASHINGTON.

       (a) Authority To Reimburse.--
       (1) Transfer amount.--Using funds described in subsection 
     (b), the Secretary of Defense may transfer not more than 
     $111,114.03 to the Moses Lake Wellfield Superfund Site 10-6J 
     Special Account.
       (2) Purpose of reimbursement.--The payment under paragraph 
     (1) is to reimburse the Environmental Protection Agency for 
     its costs incurred in overseeing a remedial investigation/
     feasibility study performed by the Department of the Army 
     under the Defense Environmental Restoration Program at the 
     former Larson Air Force Base, Moses Lake Superfund Site, 
     Moses Lake, Washington.
       (3) Interagency agreement.--The reimbursement described in 
     paragraph (2) is provided for in the interagency agreement 
     entered into by the Department of the Army and the 
     Environmental Protection Agency for the Moses Lake Wellfield 
     Superfund Site in March 1999.
       (b) Source of Funds.--Any payment under subsection (a) 
     shall be made using funds authorized to be appropriated by 
     section 301(17) for operation and maintenance for 
     Environmental Restoration, Formerly Used Defense Sites.
       (c) Use of Funds.--The Environmental Protection Agency 
     shall use the amount transferred under subsection (a) to pay 
     costs incurred by the Agency at the Moses Lake Wellfield 
     Superfund Site.

     SEC. 316. TRANSFER OF GOVERNMENT-FURNISHED URANIUM STORED AT 
                   SEQUOYAH FUELS CORPORATION, GORE, OKLAHOMA.

       (a) Transport and Disposal.--Subject to subsection (c), the 
     Secretary of the Army shall transport to an authorized 
     disposal facility for appropriate disposal all of the 
     Government-furnished uranium in the chemical and physical 
     form in which it is stored at the Sequoyah Fuels Corporation 
     site in Gore, Oklahoma.
       (b) Source of Funds.--Funds authorized to be appropriated 
     pursuant to section 301(1) for operation and maintenance for 
     the Army may be used for the transport and disposal required 
     under subsection (a).
       (c) Liability.--The Secretary may only transport uranium 
     under subsection (a) after receiving from Sequoyah Fuels 
     Corporation a written agreement satisfactory to the Secretary 
     that provides that--
       (1) the United States assumes no liability, legal or 
     otherwise, of Sequoyah Fuels Corporation by transporting the 
     uranium; and
       (2) the Sequoyah Fuels Corporation waives any and all 
     claims it may have against the United States related to the 
     transported uranium.
       (d) Completion of Transport.--The Secretary shall complete 
     the transport of uranium under subsection (a) not later than 
     March 31, 2007.

     SEC. 317. EXTENSION OF AUTHORITY TO GRANT EXEMPTIONS TO 
                   CERTAIN REQUIREMENTS.

       (a) Amendment to Toxic Substances Control Act.--Section 
     6(e)(3) of the Toxic Substances Control Act (15 U.S.C. 
     2605(e)(3)) is amended--
       (1) in subparagraph (A), by striking ``subparagraphs (B) 
     and (C)'' and inserting ``subparagraphs (B), (C), and (D)'';
       (2) in subparagraph (B), by striking ``but not more than 
     one year from the date it is granted'' and inserting ``but 
     not more than 1 year from the date it is granted, except as 
     provided in subparagraph (D)''; and
       (3) by adding at the end the following new subparagraph:
       ``(D) The Administrator may extend an exemption granted 
     pursuant to subparagraph (B) that has not yet expired for a 
     period not to exceed 60 days for the purpose of authorizing 
     the Secretary of Defense and the Secretaries of the military 
     departments to provide for the transportation into the 
     customs territory of the United States of polychlorinated 
     biphenyls generated by or under the control of the Department 
     of Defense for purposes of their disposal, treatment, or 
     storage in the customs territory of the United States if 
     those polychlorinated biphenyls are already in transit from 
     their storage locations but the Administrator determines, in 
     the sole discretion of the Administrator, they would not 
     otherwise arrive in the customs territory of the United 
     States within the period of the original exemption. The 
     Administrator shall promptly publish notice of such extension 
     in the Federal Register.''.
       (b) Sunset Date.--The amendments made by subsection (a) 
     shall cease to have effect on September 30, 2012. The 
     termination of the authority to grant exemptions pursuant to 
     such amendments shall not effect the validity of any 
     exemption granted prior to such date.
       (c) Report.--Not later than March 1, 2011, the Secretary of 
     Defense shall submit to the Committee on Armed Services and 
     the Committee on Environment and Public Works of the Senate 
     and the Committee on Armed Services and the Committee on 
     Energy and Commerce of the House of Representatives a report 
     on the status of foreign-manufactured polychlorinated 
     biphenyls under the control of the Department of Defense 
     outside the United States. The report shall address, at a 
     minimum--
       (1) the remaining volume of such foreign-manufactured 
     polychlorinated biphenyls that may require transportation 
     into the customs territory of the United States for disposal, 
     treatment, or storage; and
       (2) the efforts that have been made by the Department of 
     Defense and other Federal agencies to reduce such volume by--

[[Page 20763]]

       (A) reducing the volume of foreign-manufactured 
     polychlorinated biphenyls under the control of the Department 
     of Defense outside the United States; or
       (B) developing alternative options for the disposal, 
     treatment, or storage of such foreign-manufactured 
     polychlorinated biphenyls.

     SEC. 318. NATIONAL ACADEMY OF SCIENCES STUDY ON HUMAN 
                   EXPOSURE TO CONTAMINATED DRINKING WATER AT CAMP 
                   LEJEUNE, NORTH CAROLINA.

       (a) Study Required.--
       (1) In general.--Not later than 60 days after the date of 
     the enactment of this Act, the Secretary of the Navy shall 
     enter into an agreement with the National Academy of Sciences 
     to conduct a comprehensive review and evaluation of the 
     available scientific and medical evidence regarding 
     associations between pre-natal, child, and adult exposure to 
     drinking water contaminated with trichloroethylene (TCE) and 
     tetrachloroethylene (PCE) at Camp Lejeune, North Carolina, as 
     well as other pre-natal, child, and adult exposures to levels 
     of trichloroethylene and tetrachloroethylene similar to those 
     experienced at Camp Lejeune, and birth defects or diseases 
     and any other adverse health effects.
       (2) Elements.--In conducting the review and evaluation, the 
     Academy shall review and summarize the scientific and medical 
     evidence and assess the strength of that evidence in 
     establishing a link or association between exposure to 
     trichloroethylene and tetrachloroethylene and each birth 
     defect or disease suspected to be associated with such 
     exposure. For each birth defect or disease reviewed, the 
     Academy shall determine, to the extent practicable with 
     available scientific and medical data, whether--
       (A) a statistical association with such contaminant 
     exposures exists; and
       (B) there exist plausible biological mechanisms or other 
     evidence of a causal relationship between contaminant 
     exposures and the birth defect or disease.
       (3) Scope of review.--In conducting the review and 
     evaluation, the Academy shall include a review and evaluation 
     of--
       (A) the toxicologic and epidemiologic literature on adverse 
     health effects of trichloroethylene and tetrachloroethylene, 
     including epidemiologic and risk assessment reports from 
     government agencies;
       (B) recent literature reviews by the National Research 
     Council, Institute of Medicine, and other groups;
       (C) the completed and on-going Agency for Toxic Substances 
     Disease Registry (ATSDR) studies on potential 
     trichloroethylene and tetrachloroethylene exposure at Camp 
     Lejeune; and
       (D) published meta-analyses.
       (4) Peer review.--The Academy shall obtain the peer review 
     of the report prepared as a result of the review and 
     evaluation under applicable Academy procedures.
       (5) Submittal.--The Academy shall submit the report 
     prepared as a result of the review and evaluation to the 
     Secretary and Congress not later than 18 months after 
     entering into the agreement for the review and evaluation 
     under paragraph (1).
       (b) Notice on Exposure.--
       (1) Notice required.--Upon completion of the current 
     epidemiological study by the Agency for Toxic Substances 
     Disease Registry, known as the Exposure to Volatile Organic 
     Compounds in Drinking Water and Specific Birth Defects and 
     Childhood Cancers, United States Marine Corps Base Camp 
     Lejeune, North Carolina, the Commandant of the Marine Corps 
     shall take appropriate actions, including the use of national 
     media such as newspapers, television, and the Internet, to 
     notify former Camp Lejeune residents and employees who may 
     have been exposed to drinking water impacted by 
     trichloroethylene and tetrachloroethylene of the results of 
     the study.
       (2) Elements.--The information provided by the Commandant 
     of the Marine Corps under paragraph (1) shall be prepared in 
     conjunction with the Agency for Toxic Substances Disease 
     Registry and shall include a description of sources of 
     additional information relating to such exposure, including, 
     but not be limited to, the following:
       (A) A description of the events resulting in exposure to 
     contaminated drinking water at Camp Lejeune.
       (B) A description of the duration and extent of the 
     contamination of drinking water at Camp Lejeune.
       (C) The known and suspected health effects of exposure to 
     the drinking water impacted by trichloroethylene and 
     tetrachloroethylene at Camp Lejeune.
    Subtitle C--Program Requirements, Restrictions, and Limitations

     SEC. 321. LIMITATION ON FINANCIAL MANAGEMENT IMPROVEMENT AND 
                   AUDIT INITIATIVES WITHIN THE DEPARTMENT OF 
                   DEFENSE.

       (a) Limitation.--The Secretary of Defense may not obligate 
     or expend any funds for the purpose of any financial 
     management improvement activity relating to the preparation, 
     processing, or auditing of financial statements until the 
     Secretary submits to the congressional defense committees a 
     written determination that each activity proposed to be 
     funded is--
       (1) consistent with the financial management improvement 
     plan of the Department of Defense required by section 
     376(a)(1) of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 190-163; 119 Stat. 3213); and
       (2) likely to improve internal controls or otherwise result 
     in sustained improvements in the ability of the Department to 
     produce timely, reliable, and complete financial management 
     information.
       (b) Exception.--The limitation in subsection (a) shall not 
     apply to an activity directed exclusively at assessing the 
     adequacy of internal controls and remediating any inadequacy 
     identified pursuant to such assessment.

     SEC. 322. FUNDS FOR EXHIBITS FOR THE NATIONAL MUSEUMS OF THE 
                   ARMED FORCES.

       (a) National Museum of the United States Army.--Of the 
     amounts authorized to be appropriated by section 301(1) for 
     operation and maintenance for the Army, not less than 
     $3,000,000 may be available to the Secretary of the Army for 
     the acquisition, installation, and maintenance of exhibits at 
     the facility designated by the Secretary as the National 
     Museum of the United States Army. The Secretary may enter 
     into a contract with the Army Historical Foundation for the 
     purpose of performing such acquisition, installation, and 
     maintenance.
       (b) National Museum of the United States Navy.--Of the 
     amounts authorized to be appropriated by section 301(2) for 
     operation and maintenance for the Navy, not less than 
     $3,000,000 may be available to the Secretary of the Navy for 
     the acquisition, installation, and maintenance of exhibits at 
     the facility designated by the Secretary as the National 
     Museum of the United States Navy. The Secretary may enter 
     into a contract with the Naval Historical Foundation for the 
     purpose of performing such acquisition, installation, and 
     maintenance.
       (c) National Museum of the Marine Corps and Heritage 
     Center.--Of the amounts authorized to be appropriated by 
     section 301(3) for operation and maintenance for the Marine 
     Corps, not less than $3,000,000 may be available to the 
     Secretary of the Navy for the acquisition, installation, and 
     maintenance of exhibits at the National Museum of the Marine 
     Corps and Heritage Center. The Secretary may enter into a 
     contract with the United States Marine Corps Heritage 
     Foundation for the purpose of performing such acquisition, 
     installation, and maintenance.
       (d) National Museum of the United States Air Force.--Of the 
     amounts authorized to be appropriated by section 301(4) for 
     operation and maintenance for the Air Force, not less than 
     $3,000,000 may be available to the Secretary of the Air Force 
     for the acquisition, installation, and maintenance of 
     exhibits at the facility designated by the Secretary as the 
     National Museum of the United States Air Force. The Secretary 
     may enter into a contract with the Air Force Museum 
     Foundation for the purpose of performing such acquisition, 
     installation, and maintenance.
       (e) Reimbursement.--
       (1) Authority to accept reimbursement.--After September 30, 
     2006, the Secretary of a military department may accept funds 
     from any non-profit entity authorized to support the national 
     museum of the applicable Armed Force to reimburse the 
     Secretary for amounts obligated and expended by the Secretary 
     from amounts made available to the Secretary under this 
     section.
       (2) Treatment.--Amounts accepted as reimbursement under 
     paragraph (1) shall be credited to the account that was used 
     to cover the costs for which the reimbursement was provided. 
     Amounts so credited shall be merged with amounts in that 
     account, and shall be available for the same purposes, and 
     subject to the same conditions and limitations, as other 
     amounts in that account.

     SEC. 323. PRIORITIZATION OF FUNDS FOR EQUIPMENT READINESS AND 
                   STRATEGIC CAPABILITY.

       (a) Prioritization of Funds.--The Secretary of Defense 
     shall take such steps as may be necessary through the 
     planning, programming, budgeting, and execution systems of 
     the Department of Defense to ensure that financial resources 
     are provided for each fiscal year as necessary to enable--
       (1) the Secretary of each military department to meet the 
     requirements of that military department for that fiscal year 
     for the repair, recapitalization, and replacement of 
     equipment used in the global war on terrorism; and
       (2) the Secretary of the Army to meet the requirements of 
     the Army for that fiscal year, in addition to the 
     requirements under paragraph (1), for--
       (A) the fulfillment of the equipment requirements of units 
     transforming to modularity in accordance with the Modular 
     Force Initiative report submitted to Congress in March 2006; 
     and
       (B) the reconstitution of equipment and materiel in 
     prepositioned stocks in accordance with requirements under 
     the Army Prepositioned Stocks Strategy 2012 or a subsequent 
     strategy implemented under the guidelines in section 2229 of 
     title 10, United States Code.
       (b) Submission of Budget Information.--
       (1) Submission of information.--As part of the budget 
     justification materials submitted to Congress in support of 
     the President's budget for a fiscal year or a request for 
     supplemental appropriations, the Secretary of Defense shall 
     include the following:
       (A) The information described in paragraph (2) for the 
     fiscal year for which the budget justification materials are 
     submitted, the fiscal year during which the materials are 
     submitted, and the preceding fiscal year.
       (B) The information described in paragraph (2) for each of 
     the fiscal years covered by the future-years defense program 
     for the fiscal year in which the report is submitted based on 
     estimates

[[Page 20764]]

     of any amounts required to meet each of the requirements 
     under subsection (a) that are not met for that fiscal year 
     and are deferred to the future-years defense program.
       (C) A consolidated budget justification summary of the 
     information submitted under subparagraphs (A) and (B).
       (2) Information described.--The information described in 
     this paragraph is information that clearly and separately 
     identifies, by appropriations account, budget activity, 
     activity group, sub-activity group, and program element or 
     line item, the amounts requested for the programs, projects, 
     and activities of--
       (A) each of the military departments for the repair, 
     recapitalization, or replacement of equipment used in the 
     global war on terrorism; and
       (B) the Army for--
       (i) the fulfillment of the equipment requirements of units 
     transforming to modularity; and
       (ii) the reconstitution of equipment and materiel in 
     prepositioned stocks.
       (3) Additional information in first report.--As part of the 
     budget justification materials submitted to Congress in 
     support of the President's budget for fiscal year 2008, the 
     Secretary of Defense shall also include the information 
     described in paragraph (2) for fiscal years 2003, 2004, and 
     2005.
       (c) Annual Report on Army Progress.--On the date on which 
     the President submits to Congress the budget for a fiscal 
     year under section 1105 of title 31, United States Code, the 
     Secretary of the Army shall submit to the congressional 
     defense committees a report setting forth the progress of the 
     Army in meeting the requirements of subsection (a). Any 
     information required to be included in the report concerning 
     funding priorities under paragraph (1) or (2) of subsection 
     (a) shall be itemized by active duty component and reserve 
     component. Each such report shall include the following:
       (1) A complete itemization of the requirements for the 
     funding priorities in subsection (a), including an 
     itemization for all types of modular brigades and an 
     itemization for the replacement of equipment withdrawn or 
     diverted from the reserve component for use in the global war 
     on terrorism.
       (2) A list of any shortfalls that exist between available 
     funding, equipment, supplies, and industrial capacity and 
     required funding, equipment, supplies, and industrial 
     capacity in accordance with the funding priorities in 
     subsection (a).
       (3) A list of the requirements for the funding priorities 
     in subsection (a) that the Army has included in the budget 
     for that fiscal year, including a detailed listing of the 
     type, quantity, and cost of the equipment the Army plans to 
     repair, recapitalize, or procure, set forth by appropriations 
     account and Army component.
       (4) An assessment of the progress made during that fiscal 
     year toward meeting the overall requirements of the funding 
     priorities in subsection (a).
       (5) A schedule for meeting the requirements of subsection 
     (a).
       (6) A description of how the Army defines costs associated 
     with modularity versus the costs associated with modernizing 
     equipment platforms and the reset (repair, recapitalization, 
     or replacement) of equipment used during the global war on 
     terrorism, including the funding expended on, and the future 
     funding required for, such reset requirements.
       (7) A complete itemization of the amount of funds expended 
     to date on the modular brigades.
       (8) The results of Army assessments of modular force 
     capabilities, including lessons learned from existing modular 
     units and any modifications that have been made to 
     modularity.
       (9) The comments of the Chief of the National Guard Bureau 
     and the Chief of the Army Reserve on each of the items 
     described in paragraphs (1) through (8).
       (d) Annual Comptroller General Report on Army Progress.--
     Not later than 45 days after the date on which the President 
     submits to Congress the budget for a fiscal year under 
     section 1105 of title 31, United States Code, the Comptroller 
     General shall submit to the congressional defense committees 
     a report containing the assessment of the Comptroller General 
     on the following:
       (1) The progress of the Army in meeting the requirements of 
     subsection (a), including progress in equipping and manning 
     modular units in the regular components and reserve 
     components of the Armed Forces.
       (2) The use of funds by the Army for meeting the 
     requirements of subsection (a).
       (3) The progress of the Army in conducting further testing 
     and evaluations of designs under the modularity initiative.
       (e) Termination of Report Requirements.--The requirement 
     for the submission of a report under subsection (c) or (d) 
     shall terminate on the date of the submission of the report 
     required to be submitted under that subsection to accompany 
     or follow the President's budget submission for fiscal year 
     2012.

     SEC. 324. LIMITATION ON DEPLOYMENT OF MARINE CORPS TOTAL 
                   FORCE SYSTEM TO NAVY.

       (a) Limitation.--The Secretary of the Navy may not deploy 
     the Marine Corps Total Force System (MCTFS) (or any 
     derivative system of the MCTFS) to the Navy until the date on 
     which the congressional defense committees and the Secretary 
     of the Navy receive the written determination of the Chairman 
     of the Defense Business Systems Management Committee 
     submitted under subsection (d) that the deployment of the 
     MCTFS to the Navy is in the best interests of the Department 
     of Defense.
       (b) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of the Navy 
     shall submit to the congressional defense committees and the 
     Comptroller General a report on the Marine Corps Total Force 
     System (MCTFS). The report shall include the following:
       (1) An analysis of alternatives to the MCTFS, including a 
     detailed comparison between the cost of deploying and 
     operating the MCTFS within the Navy and the cost of including 
     the Navy in the Defense Integrated Military Human Resources 
     System.
       (2) A business case analysis, including an analysis of the 
     costs and benefits to both the Department of Navy and the 
     Department of Defense of the alternatives to the MCTFS 
     considered under the analysis required by paragraph (1).
       (3) An analysis of the compatibility of the MCTFS with the 
     enterprise architecture of the Department of Defense, 
     including a detailed estimate of all interface costs with 
     current or planned Department-wide military manpower, 
     personnel, and pay information technology systems.
       (c) Comptroller General Assessment.--Not later than 90 days 
     after the date on which the Comptroller General receives the 
     report submitted under subsection (b), the Comptroller 
     General shall submit to the congressional defense committees 
     and to the Chairman of the Defense Business Systems 
     Management Committee a written assessment of the report.
       (d) Determination of Chairman of Defense Business Systems 
     Management Committee.--Not sooner than 120 days after the 
     date on which the Comptroller General receives the report 
     submitted under subsection (b), the Chairman of the Defense 
     Business Systems Management Committee shall review the 
     analysis included in the report, together with any other 
     relevant information available to the Chairman, and submit to 
     the congressional defense committees and the Secretary of the 
     Navy the written determination of the Chairman of whether the 
     deployment of the MCTFS to the Navy is in the best interests 
     of the Department of Defense.
                 Subtitle D--Workplace and Depot Issues

     SEC. 331. PERMANENT EXCLUSION OF CERTAIN CONTRACT 
                   EXPENDITURES FROM PERCENTAGE LIMITATION ON THE 
                   PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.

       (a) Permanent Exclusion.--Section 2474(f) of title 10, 
     United States Code, is amended--
       (1) by striking ``(1) Amounts'' and inserting ``Amounts'';
       (2) by striking ``entered into during fiscal years 2003 
     through 2009''; and
       (3) by striking paragraph (2).
       (b) Inclusion of Certain Items in Annual Report.--
       (1) Inclusion of certain items.--Paragraph (2) of section 
     2466(d) of such title is amended to read as follows:
       ``(2) Each report required under paragraph (1) shall 
     include as a separate item any expenditure covered by section 
     2474(f) of this title that was made during the fiscal year 
     covered by the report and shall specify the amount and nature 
     of each such expenditure.''.
       (2) Conforming amendment.--The heading for subsection (d) 
     of section 2466 of such title is amended to read as follows: 
     ``Annual Report.--''.

     SEC. 332. MINIMUM CAPITAL INVESTMENT FOR CERTAIN DEPOTS.

       (a) Minimum Investment Levels.--Chapter 146 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2476. Minimum capital investment for certain depots

       ``(a) Minimum Investment.--Each fiscal year, the Secretary 
     of a military department shall invest in the capital budgets 
     of the covered depots of that military department a total 
     amount equal to not less than six percent of the average 
     total combined workload funded at all the depots of that 
     military department for the preceding three fiscal years.
       ``(b) Capital Budget.--For purposes of this section, the 
     capital budget of a depot includes investment funds spent on 
     depot infrastructure, equipment, and process improvement in 
     direct support of depot operations.
       ``(c) Waiver.--The Secretary of Defense may waive the 
     requirement under subsection (a) with respect to a military 
     department for a fiscal year if the Secretary determines that 
     the waiver is necessary for reasons of national security. 
     Whenever the Secretary makes such a waiver, the Secretary 
     shall notify the congressional defense committees of the 
     waiver and the reasons for the waiver.
       ``(d) Annual Report.--(1) Not later than 45 days after the 
     date on which the President submits to Congress the budget 
     for a fiscal year under section 1105 of title 31, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report containing budget justification 
     documents summarizing the level of capital investment for 
     each military department as of the end of the preceding 
     fiscal year.
       ``(2) Each report submitted under paragraph (1) shall 
     include the following:
       ``(A) A specification of any statutory, regulatory, or 
     operational impediments to achieving the requirement under 
     subsection (a) with respect to each military department.
       ``(B) A description of the benchmarks for capital 
     investment established for each covered depot and military 
     department and the relationship of the benchmarks to 
     applicable performance measurement methods used in the 
     private sector.

[[Page 20765]]

       ``(C) If the requirement under subsection (a) is not met 
     for a military department for the fiscal year covered by the 
     report, a statement of the reasons why the requirement was 
     not met and a plan of actions for meeting the requirement for 
     the fiscal year beginning in the year in which such report is 
     submitted.
       ``(e) Covered Depot.--In this section, the term `covered 
     depot' means any of the following:
       ``(1) With respect to the Department of the Army:
       ``(A) Anniston Army Depot, Alabama.
       ``(B) Letterkenny Army Depot, Pennsylvania.
       ``(C) Tobyhanna Army Depot, Pennsylvania.
       ``(D) Corpus Christi Army Depot, Texas.
       ``(E) Red River Army Depot, Texas.
       ``(2) With respect to the Department of the Navy:
       ``(A) Fleet Readiness Center East Site, Cherry Point, North 
     Carolina.
       ``(B) Fleet Readiness Center Southwest Site, North Island, 
     California.
       ``(C) Fleet Readiness Center Southeast Site, Jacksonville, 
     Florida.
       ``(D) Portsmouth Naval Shipyard, Maine.
       ``(E) Pearl Harbor Naval Shipyard, Hawaii.
       ``(F) Puget Sound Naval Shipyard, Washington.
       ``(G) Norfolk Naval Shipyard, Virginia.
       ``(H) Marine Corps Logistics Base, Albany, Georgia.
       ``(I) Marine Corps Logistics Base, Barstow, California.
       ``(3) With respect to the Department of the Air Force:
       ``(A) Warner-Robins Air Logistics Center, Georgia.
       ``(B) Ogden Air Logistics Center, Utah.
       ``(C) Oklahoma City Air Logistics Center, Oklahoma.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2476. Minimum capital investment for certain depots.''.

       (c) Effective Date.--Section 2476 of title 10, United 
     States Code, as added by subsection (a), shall take effect on 
     October 1, 2006.
       (d) Two Year Phase-in for Departments of the Army and the 
     Navy.--
       (1) Reduced percentage of required investment for fiscal 
     years 2007 and 2008.--The Secretary of the Army shall apply 
     subsection (a) of section 2476 of title 10, United States 
     Code, as added by subsection (a), to the covered depots of 
     the Army, and the Secretary of the Navy shall apply such 
     subsection to the covered depots of the Department of the 
     Navy--
       (A) for fiscal year 2007, by substituting ``four percent'' 
     for ``six percent''; and
       (B) for fiscal year 2008, by substituting ``five percent'' 
     for ``six percent''.
       (2) Covered depots.--In this subsection, the term ``covered 
     depot'' has the meaning given that term in subsection (e) of 
     section 2476 of title 10, United States Code, as added by 
     subsection (a).

     SEC. 333. EXTENSION OF TEMPORARY AUTHORITY FOR CONTRACTOR 
                   PERFORMANCE OF SECURITY GUARD FUNCTIONS.

       (a) Extension and Limitation on Total Number of 
     Contractors.--Section 332(c) of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003 (Public Law 
     107-314) is amended--
       (1) by striking ``September 30, 2007'' both places it 
     appears and inserting ``September 30, 2009'';
       (2) by redesignating subsection (d) as subsection (e); and
       (3) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Limitation.--The total number of personnel employed 
     to perform security guard functions under all contracts 
     entered into pursuant to this section shall not exceed--
       ``(1) for fiscal year 2007, the total number of such 
     personnel employed under such contracts on October 1, 2006;
       ``(2) for fiscal year 2008, the number equal to 90 percent 
     of the total number of such personnel employed under such 
     contracts on October 1, 2006; and
       ``(3) for fiscal year 2009, the number equal to 80 percent 
     of the total number of such personnel employed under such 
     contracts on October 1, 2006.''.
       (b) Report on Contractor Performance of Security-Guard 
     Functions.--Not later than February 1, 2007, the Secretary of 
     Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives a report on contractor performance of 
     security guard functions under section 332 of the Bob Stump 
     National Defense Authorization Act for Fiscal Year 2003 
     (Public Law 107-314). The report shall include the following:
       (1) An explanation of progress made toward implementing 
     each of the seven recommendations in the Comptroller General 
     report entitled ``Contract Security Guards: Army's Guard 
     Program Requires Greater Oversight and Reassessment of 
     Acquisition Approach'' (GAO-06-284).
       (2) An assessment, taking into considerations the 
     observations made by the Comptroller General on the report of 
     the Department of Defense of November 2005 that is entitled 
     ``Department of Defense Installation Security Guard 
     Requirement Assessment and Plan'', of the following:
       (A) The cost-effectiveness of using contractors rather than 
     Department of Defense employees to perform security-guard 
     functions.
       (B) The performance of contractors employed as security 
     guards compared with the performance of military personnel 
     who have served as security guards.
       (C) Specific results of on-site visits made by officials 
     designated by the Secretary of Defense to military 
     installations using contractors to perform security-guard 
     functions.
       (c) Contract Limitation.--No contract may be entered into 
     under section 332 of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314) 
     after September 30, 2007, until the report required under 
     subsection (b) is submitted.
                          Subtitle E--Reports

     SEC. 341. REPORT ON NAVY FLEET RESPONSE PLAN.

       (a) Report Required.--Not later than December 1, 2006, the 
     Secretary of the Navy shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a report on the program of the 
     Navy referred to as the Fleet Response Plan. The report shall 
     include the following:
       (1) A directive that provides guidance for the conduct of 
     the Plan and standardizes terms and definitions.
       (2) Performance measures for evaluation of the Plan.
       (3) Costs and resources needed to achieve objectives of the 
     Plan, including any incremental effect on the Navy Operation 
     and Maintenance budget.
       (4) Operational tests, exercises, war games, experiments, 
     and deployments used to test performance.
       (5) A collection and synthesis of lessons learned from the 
     implementation of the Plan as of the date on which the report 
     is submitted.
       (6) Evaluation of each of the following with respect to 
     each ship participating in the Plan:
       (A) Combat readiness, including training requirements.
       (B) Ship material condition, including trending data for 
     mission degrading casualty reports rated as C3 or C4.
       (C) Professional development training requirements 
     accomplished during a deployment and at home station.
       (D) Crew retention statistics.
       (7) Any proposed changes to the Surface Force Training 
     Manual.
       (8) The amount of funding required to effectively implement 
     the operation and maintenance requirements of the Plan by 
     ship class.
       (9) Any recommendations of the Secretary of the Navy with 
     respect to expanding the Plan to include Expeditionary Strike 
     Groups.
       (b) Comptroller General Report.--Not later than 120 days 
     after the date on which the Secretary of the Navy submits the 
     report required under subsection (a), the Comptroller General 
     shall submit to the congressional defense committees a report 
     containing a review of the report required under that 
     subsection. The Comptroller General's report shall include 
     the following:
       (1) An examination of the management approaches of the Navy 
     in implementing the Fleet Response Plan.
       (2) An assessment of the adequacy of Navy directives and 
     guidance with respect to maintenance and training 
     requirements and procedures.
       (3) An analysis and assessment of the adequacy of the 
     Navy's evaluation criteria for the Plan.
       (4) An evaluation of Navy data on aircraft carriers, 
     destroyers, and cruisers that participated in the Plan with 
     respect to readiness, response time, and availability for 
     routine or unforeseen deployments.
       (5) An assessment of the Navy's progress in identifying the 
     amount of funding required to effectively implement the 
     operations and maintenance requirements of the Plan and the 
     effect of providing funding in an amount less than that 
     amount.
       (6) Any recommendations of the Comptroller General with 
     respect to expanding the Plan to include Expeditionary Strike 
     Groups.
       (c) Postponement of Expansion.--The Secretary of the Navy 
     may not expand the implementation of the Fleet Response Plan 
     beyond the Carrier Strike Groups until the date that is six 
     months after the date on which the Secretary of the Navy 
     submits the report required under subsection (a).

     SEC. 342. REPORT ON NAVY SURFACE SHIP ROTATIONAL CREW 
                   PROGRAMS.

       (a) Report Required.--Not later than April 1, 2007, the 
     Secretary of the Navy shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a report on the ship rotational 
     crew experiment referred to in subsection (c)(1). The report 
     shall include the following:
       (1) A comparison between the three destroyers participating 
     in that experiment and destroyers not participating in the 
     experiment that takes into consideration each of the 
     following:
       (A) Cost-effectiveness, including a comparison of travel 
     and per diem expenses, maintenance costs, and other costs.
       (B) Maintenance procedures, impacts, and deficiencies, 
     including the number and characterization of maintenance 
     deficiencies, the extent of voyage repairs, post-deployment 
     assessments of the material condition of the ships, and the 
     extent to which work levels were maintained.
       (C) Mission training requirements.
       (D) Professional development requirements and 
     opportunities.
       (E) Liberty port of call opportunities.
       (F) Movement and transportation of crew.
       (G) Inventory and property accountability.
       (H) Policies and procedures for assigning billets for 
     rotating crews.
       (I) Crew retention statistics.

[[Page 20766]]

       (J) Readiness and mission capability data.
       (2) Results from surveys administered or focus groups held 
     to obtain representative views from commanding officers, 
     officers, and enlisted members on the effects of rotational 
     crew experiments on quality of life, training, professional 
     development, maintenance, mission effectiveness, and other 
     issues.
       (3) The extent to which standard policies and procedures 
     were developed and used for participating ships.
       (4) Lessons learned from the experiment.
       (5) An assessment from the combatant commanders on the crew 
     mission performance when deployed.
       (6) An assessment from the commander of the Fleet Forces 
     Command on the material condition, maintenance, and crew 
     training of each participating ship.
       (7) Any recommendations of the Secretary of the Navy with 
     respect to the extension of the ship rotational crew 
     experiment or the implementation of the experiment for other 
     surface vessels.
       (b) Postponement of Implementation.--The Secretary of the 
     Navy may not begin implementation of any new surface ship 
     rotational crew experiment or program during the period 
     beginning on the date of the enactment of this Act and ending 
     on October 1, 2009.
       (c) Treatment of Existing Experiments.--
       (1) Destroyer experiment.--Not later than January 1, 2007, 
     the Secretary of the Navy shall terminate the existing ship 
     rotational crew experiment involving the U.S.S. Gonzalez 
     (DDG-66), the U.S.S. Stout (DDG-55), and the U.S.S. Laboon 
     (DDG-58) that is known as the ``sea swap''.
       (2) Patrol coastal class ship experiment.--The Secretary of 
     the Navy may continue the existing ship rotational crew 
     program that is currently in use by overseas-based Patrol 
     Coastal class ships.
       (3) Mine countermeasures ships.--The Secretary of the Navy 
     may continue the existing ship rotational crew program that 
     is currently in use by MCM and MHC ships.
       (4) Littoral combat ships.--The Secretary of the Navy may 
     employ a two crew for one ship (commonly referred to as Blue-
     Gold) rotational crew program for the first two ships of each 
     Littoral combat ship design (LCS 1-4).
       (d) Comptroller General Report.--Not later than July 15, 
     2007, the Comptroller General shall submit to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report on the ship 
     rotational crew experiment referred to in subsection (c)(1). 
     The report shall include the following:
       (1) A review of the report submitted by the Secretary of 
     the Navy under subsection (a) and an assessment of the extent 
     to which the Secretary fully addressed costs, quality of 
     life, training, maintenance, and mission effectiveness, and 
     other relevant issues in that report.
       (2) An assessment of the extent to which the Secretary 
     established and applied a comprehensive framework for 
     assessing the use of ship rotational crew experiments, 
     including formal objectives, metrics, and methodology for 
     assessing the cost-effectiveness of such experiments.
       (3) An assessment of the extent to which the Secretary 
     established effective guidance for the use of ship rotational 
     crew experiments.
       (4) Lessons learned from recent ship rotational crew 
     experiments and an assessment of the extent to which the Navy 
     systematically collects and shares lessons learned.
       (e) Congressional Budget Office Report.--Not later than 
     July 15, 2007, the Director of the Congressional Budget 
     Office shall submit to the Committee on Armed Services of the 
     Senate and the Committee on Armed Services of the House of 
     Representatives a report on the long-term implications of the 
     use of crew rotation on Navy ships on the degree of forward 
     presence provided by Navy ships. The report shall include the 
     following:
       (1) An analysis of different approaches to crew rotation 
     and the degree of forward presence each approach would 
     provide.
       (2) A comparison of the degree of forward presence provided 
     by the fleet under the long-term shipbuilding plan of the 
     Navy with and without the widespread use of crew rotation.
       (3) The long-term benefits and costs of using crew rotation 
     on Navy ships.

     SEC. 343. REPORT ON ARMY LIVE-FIRE RANGES IN HAWAII.

       Not later than March 1, 2007, the Secretary of the Army 
     shall submit to Congress a report on the adequacy of the 
     live-fire ranges of the Army in the State of Hawaii with 
     respect to current and future training requirements. The 
     report shall include the following:
       (1) An evaluation of the capacity of the existing live-fire 
     ranges to meet the training requirements of the Army, 
     including the training requirements of Stryker Brigade Combat 
     Teams.
       (2) A description of any existing plan to modify or expand 
     any range in Hawaii for the purpose of meeting anticipated 
     live-fire training requirements.
       (3) A description of the current live-fire restrictions at 
     the Makua Valley range and the effect of these restrictions 
     on unit readiness.
       (4) Cost and schedule estimates for the construction of new 
     ranges or the modification of existing ranges that are 
     necessary to support future training requirements if existing 
     restrictions on training at the Makua Valley range remain in 
     place.

     SEC. 344. COMPTROLLER GENERAL REPORT ON JOINT STANDARDS AND 
                   PROTOCOLS FOR ACCESS CONTROL SYSTEMS AT 
                   DEPARTMENT OF DEFENSE INSTALLATIONS.

       (a) Report Required.--Not later than one year after the 
     date of the enactment of this Act, the Comptroller General 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report containing the assessment of the 
     Comptroller General of--
       (1) the extent to which consistency exists in standards, 
     protocols, and procedures for access control across 
     installations of the Department of Defense; and
       (2) whether the establishment of joint standards and 
     protocols for access control at such installations would be 
     likely to--
       (A) address any need of the Department identified by the 
     Comptroller General; or
       (B) improve access control across such installations by 
     providing greater consistency and improved force protection.
       (b) Issues to Be Assessed.--In conducting the assessment 
     required by subsection (a), the Comptroller General shall 
     assess the extent to which each installation of the 
     Department of Defense has or would benefit from having an 
     access control system with the ability to--
       (1) electronically check any identification card issued by 
     any Federal agency or any State or local government within 
     the United States, including any identification card of a 
     visitor to the installation who is a citizen or legal 
     resident of the United States;
       (2) verify that an identification card used to obtain 
     access to the installation was legitimately issued and has 
     not been reported lost or stolen;
       (3) check on a real-time basis all relevant watch lists 
     maintained by the Government, including terrorist watch lists 
     and lists of persons wanted by Federal, State, or local law 
     enforcement authorities;
       (4) maintain a log of individuals seeking access to the 
     installation and of individuals who are denied access to the 
     installation; and
       (5) exchange information with any installation with a 
     system that complies with the joint standards and protocols.

     SEC. 345. COMPTROLLER GENERAL REPORT ON READINESS OF ARMY AND 
                   MARINE CORPS GROUND FORCES.

       (a) Report Required.--
       (1) In general.--Not later than June 1, 2007, the 
     Comptroller General shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a report on the readiness of the 
     active component and reserve component ground forces of the 
     Army and the Marine Corps.
       (2) One or more reports.--In complying with the 
     requirements of this section, the Comptroller General may 
     submit a single report addressing all the elements specified 
     in subsection (b) or two or more reports addressing any 
     combination of such elements. If the Comptroller General 
     submits more than one report under this section, all such 
     reports shall be submitted not later than the date specified 
     in paragraph (1).
       (b) Elements.--The elements specified in this subsection 
     are the following:
       (1) An analysis of the current readiness status of each of 
     the active component and reserve component ground forces of 
     the Army and the Marine Corps, including a description of any 
     major deficiency identified, an analysis of the trends in 
     readiness of such forces during not less than the ten-year 
     period preceding the date on which the report is submitted, 
     and a comparison of the current readiness indicators of such 
     ground forces with historical patterns.
       (2) An assessment of the ability of the Army and the Marine 
     Corps to provide trained and ready forces for ongoing 
     operations as well as other commitments assigned to the Army 
     and the Marine Corps in defense planning documents.
       (3) An analysis of the availability of equipment for 
     training by units of the Army and the Marine Corps in the 
     United States in configurations comparable to the equipment 
     being used by units of the Army and the Marine Corps, as 
     applicable, in ongoing operations.
       (4) An analysis of the current and projected requirements 
     for repair or replacement of equipment of the Army and the 
     Marine Corps due to ongoing operations and the effect of such 
     required repair or replacement of equipment on the 
     availability of equipment for training.
       (5) An assessment of the current personnel tempo of Army 
     and Marine Corps forces, including--
       (A) a comparison of such tempos to historical trends;
       (B) an identification of particular occupational 
     specialties that are experiencing unusually high or low 
     deployment rates; and
       (C) an analysis of retention rates in the occupational 
     specialties identified under subparagraph (B).
       (6) An assessment of the efforts of the Army and the Marine 
     Corps to mitigate the impact of high operational tempos, 
     including cross-leveling of personnel and equipment or cross 
     training of personnel or units for new or additional mission 
     requirements.
       (7) A description of the current policy of the Army and the 
     Marine Corps with respect to the mobilization of reserve 
     component personnel, together with an analysis of the number 
     of reserve component personnel in each of the Army and the 
     Marine Corps that are projected to be available for 
     deployment under such policy.
       (c) Form of Report.--Any report submitted under subsection 
     (a) shall be submitted in both classified and unclassified 
     form.

[[Page 20767]]



     SEC. 346. REPORT ON AIR FORCE SAFETY REQUIREMENTS FOR AIR 
                   FORCE FLIGHT TRAINING OPERATIONS AT PUEBLO 
                   MEMORIAL AIRPORT, COLORADO.

       (a) Report Required.--Not later than February 15, 2007, the 
     Secretary of the Air Force shall submit to the congressional 
     defense committees a report on Air Force safety requirements 
     for Air Force flight training operations at Pueblo Memorial 
     Airport, Colorado.
       (b) Elements.--The report required under subsection (a) 
     shall include each of the following:
       (1) A description of the Air Force flying operations at 
     Pueblo Memorial Airport, including the Initial Flight 
     Screening program.
       (2) An assessment of the impact of Air Force operations at 
     Pueblo Memorial Airport on non-Air Force activities at the 
     airport.
       (3) A description of the requirements necessary at Pueblo 
     Memorial Airport to ensure safe Air Force flying operations, 
     including the continuous availability of fire protection, 
     crash rescue, and other emergency response capabilities.
       (4) An assessment of the necessity of providing for a 
     continuous fire-fighting capability at Pueblo Memorial 
     Airport.
       (5) A description and analysis of any alternatives for Air 
     Force flying operations at Pueblo Memorial Airport, including 
     the cost and availability of any such alternatives.
       (6) A description of Air Force funding of fire-fighting and 
     crash rescue support at Pueblo Memorial Airport through the 
     services contract for the Initial Flight Screening program.
       (7) An assessment of whether Air Force funding is required 
     to assist the City of Pueblo, Colorado, in meeting Air Force 
     requirements for safe Air Force flight operations at Pueblo 
     Memorial Airport, and if such funding is required, the plan 
     of the Secretary of the Air Force to provide such funding to 
     the city.

     SEC. 347. ANNUAL REPORT ON PERSONNEL SECURITY INVESTIGATIONS 
                   FOR INDUSTRY AND NATIONAL INDUSTRIAL SECURITY 
                   PROGRAM.

       (a) Annual Report Required.--The Secretary of Defense shall 
     include in the budget justification documents submitted to 
     Congress in support of the President's budget for the 
     Department of Defense for each fiscal year, a report on the 
     future requirements of the Department of Defense with respect 
     to the Personnel Security Investigations for Industry and the 
     National Industrial Security Program of the Defense Security 
     Service.
       (b) Contents of Report.--Each report required to be 
     submitted under subsection (a) shall include the following:
       (1) The funding requirements of the personnel security 
     clearance investigation program and ability of the Secretary 
     of Defense to fund the program.
       (2) The size of the personnel security clearance 
     investigation process backlog.
       (3) The length of the average delay for an individual case 
     pending in the personnel security clearance investigation 
     process.
       (4) Any progress made by the Secretary of Defense during 
     the 12 months preceding the date on which the report is 
     submitted toward implementing planned changes in the 
     personnel security clearance investigation process.
       (5) A determination certified by the Secretary of Defense 
     of whether the personnel security clearance investigation 
     process has improved during the 12 months preceding the date 
     on which the report is submitted.
       (c) Comptroller General Report.--Not later than 180 days 
     after the Secretary of Defense submits the first report 
     required under subsection (a), the Comptroller General shall 
     submit to Congress a report that contains a review of such 
     report. The Comptroller General's report shall include the 
     following:
       (1) The number of personnel security clearance 
     investigations conducted during the period beginning on 
     October 1, 1999, and ending on September 30, 2006.
       (2) The number of each type of security clearance granted 
     during that period.
       (3) The unit cost to the Department of Defense of each 
     security clearance granted during that period.
       (4) The amount of any fee or surcharge paid to the Office 
     of Personnel Management as a result of conducting a personnel 
     security clearance investigation.
       (5) A description of the procedures used by the Secretary 
     of Defense to estimate the number of personnel security 
     clearance investigations to be conducted during a fiscal 
     year.
       (6) A description of any plan developed by the Secretary of 
     Defense to reduce delays and backlogs in the personnel 
     security clearance investigation process.
       (7) A description of any plan developed by the Secretary of 
     Defense to adequately fund the personnel security clearance 
     investigation process.
       (8) A description of any plan developed by the Secretary of 
     Defense to establish a more stable and effective Personnel 
     Security Investigations Program.

     SEC. 348. FIVE-YEAR EXTENSION OF ANNUAL REPORT ON TRAINING 
                   RANGE SUSTAINMENT PLAN AND TRAINING RANGE 
                   INVENTORY.

       Section 366 of the Bob Stump National Defense Authorization 
     Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2522; 
     10 U.S.C. 113 note) is amended--
       (1) in subsections (a)(5) and (c)(2), by striking ``fiscal 
     years 2005 through 2008'' and inserting ``fiscal years 2005 
     through 2013''; and
       (2) in subsection (d), by striking ``within 60 days of 
     receiving a report'' and inserting ``within 90 days of 
     receiving a report''.

     SEC. 349. REPORTS ON WITHDRAWAL OR DIVERSION OF EQUIPMENT 
                   FROM RESERVE UNITS FOR SUPPORT OF RESERVE UNITS 
                   BEING MOBILIZED AND OTHER UNITS.

       (a) Report Required on Withdrawal or Diversion of 
     Equipment.--Not later than 90 days after the date on which 
     the Secretary concerned (as that term is defined in section 
     101(a)(9) of title 10, United States Code) withdraws or 
     diverts equipment from any reserve component unit for the 
     purpose of transferring such equipment to a reserve component 
     unit that is ordered to active duty under section 12301, 
     12302, or 12304 of title 10, United States Code, or to an 
     active component unit for the purpose of discharging the 
     mission of the unit to which the equipment is diverted, the 
     Secretary concerned shall submit to the Secretary of Defense 
     a status report on such withdrawal or diversion of equipment.
       (b) Elements of Status Report.--Each status report under 
     subsection (a) shall include the following:
       (1) A plan to repair, recapitalize, or replace the 
     equipment withdrawn or diverted within the unit from which it 
     is being withdrawn or diverted.
       (2) In the case of equipment that is to remain in a theater 
     of operations while the unit from which the equipment is 
     withdrawn or diverted leaves the theater of operations, a 
     plan to provide that unit with equipment appropriate to 
     ensure the continuation of the readiness training of the 
     unit.
       (3) A signed memorandum of understanding between the active 
     or reserve component to which the equipment is diverted and 
     the reserve component from which the equipment is withdrawn 
     or diverted that specifies--
       (A) how the equipment will be accounted for; and
       (B) when the equipment will be returned to the component 
     from which it was withdrawn or diverted.
       (c) Reports to Congress.--Not later than 90 days after the 
     date of the enactment of this Act and every 90 days 
     thereafter, the Secretary of Defense shall submit to Congress 
     all status reports submitted under subsection (a) during the 
     90-day period preceding the date on which the Secretary of 
     Defense submits such reports.
       (d) Termination.--This section shall terminate on the date 
     that is five years after the date of the enactment of this 
     Act.
                       Subtitle F--Other Matters

     SEC. 351. DEPARTMENT OF DEFENSE STRATEGIC POLICY ON 
                   PREPOSITIONING OF MATERIEL AND EQUIPMENT.

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

     ``Sec. 2229. Strategic policy on prepositioning of materiel 
       and equipment

       ``(a) Policy Required.--The Secretary of Defense shall 
     maintain a strategic policy on the programs of the Department 
     of Defense for the prepositioning of materiel and equipment. 
     Such policy shall take into account national security 
     threats, strategic mobility, service requirements, and the 
     requirements of the combatant commands.
       ``(b) Limitation of Diversion of Prepositioned Materiel.--
     The Secretary of a military department may not divert 
     materiel or equipment from prepositioned stocks except--
       ``(1) in accordance with a change made by the Secretary of 
     Defense to the policy maintained under subsection (a); or
       ``(2) for the purpose of directly supporting a contingency 
     operation or providing humanitarian assistance under chapter 
     20 of this title.
       ``(c) Congressional Notification.--The Secretary of Defense 
     may not implement or change the policy required under 
     subsection (a) until the Secretary submits to the 
     congressional defense committees a report describing the 
     policy or change to the policy.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2229. Strategic policy on prepositioning of materiel and 
              equipment.''.

       (c) Deadline for Establishment of Policy.--
       (1) Deadline.--Not later than six months after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     establish the strategic policy on the programs of the 
     Department of Defense for the prepositioning of materiel and 
     equipment required under section 2229 of title 10, United 
     States Code, as added by subsection (a).
       (2) Limitation on diversion of prepositioned materiel.--
     During the period beginning on the date of the enactment of 
     this Act and ending on the date on which the Secretary of 
     Defense submits the report required under section 2229(c) of 
     title 10, United States Code, on the policy referred to in 
     paragraph (1), the Secretary of a military department may not 
     divert materiel or equipment from prepositioned stocks except 
     for the purpose of directly supporting a contingency 
     operation or providing humanitarian assistance under chapter 
     20 of that title.

     SEC. 352. AUTHORITY TO MAKE DEPARTMENT OF DEFENSE HORSES 
                   AVAILABLE FOR ADOPTION.

       (a) Inclusion of Department of Defense Horses in Existing 
     Authority.--Section 2583 of title 10, United States Code, is 
     amended--
       (1) in the section heading, by striking ``working dogs'' 
     and inserting ``animals'';
       (2) by striking ``working'' each place it appears;

[[Page 20768]]

       (3) by striking ``dog'' and ``dogs'' each place they appear 
     and inserting ``animal'' and ``animals'', respectively;
       (4) by striking ``dog's'' in paragraphs (1) and (2) of 
     subsection (a) and inserting ``animal's'';
       (5) by striking ``a dog's adoptability'' in subsection (b) 
     and inserting ``the adoptability of the animal''; and
       (6) by adding at the end the following new subsection:
       ``(g) Military Animal Defined.--In this section, the term 
     `military animal' means the following:
       ``(1) A military working dog.
       ``(2) A horse owned by the Department of Defense.''.
       (b) Clerical Amendment.--The item relating to such section 
     in the table of sections at the beginning of chapter 153 of 
     such title is amended to read as follows:

``2583. Military animals: transfer and adoption.''.

     SEC. 353. SALE AND USE OF PROCEEDS OF RECYCLABLE MUNITIONS 
                   MATERIALS.

       (a) Establishment of Program.--Chapter 443 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 4690. Recyclable munitions materials: sale; use of 
       proceeds

       ``(a) Authority for Program.--Notwithstanding section 2577 
     of this title, the Secretary of the Army may carry out a 
     program to sell recyclable munitions materials resulting from 
     the demilitarization of conventional military munitions 
     without regard to chapter 5 of title 40 and use any proceeds 
     in accordance with subsection (c).
       ``(b) Method of Sale.--The Secretary shall use competitive 
     procedures to sell recyclable munitions materials under this 
     section in a manner consistent with Federal procurement laws 
     and regulations.
       ``(c) Proceeds.--(1) Proceeds from the sale of recyclable 
     munitions materials under this section shall be credited to 
     an account that is specified as being for Army ammunition 
     demilitarization from funds made available for the 
     procurement of ammunition, to be available only for 
     reclamation, recycling, and reuse of conventional military 
     munitions (including research and development and equipment 
     purchased for such purpose).
       ``(2) Amounts credited under this subsection shall be 
     available for obligation for the fiscal year during which the 
     funds are so credited and for three subsequent fiscal years.
       ``(d) Regulations.--The Secretary shall prescribe 
     regulations to carry out the program established under this 
     section. Such regulations shall be consistent and in 
     compliance with the Solid Waste Disposal Act (42 U.S.C. 6901 
     et seq.) and the regulations implementing that Act.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``4690. Recyclable munitions materials: sale; use of proceeds.''.

     SEC. 354. RECOVERY AND TRANSFER TO CORPORATION FOR THE 
                   PROMOTION OF RIFLE PRACTICE AND FIREARMS SAFETY 
                   OF CERTAIN FIREARMS, AMMUNITION, AND PARTS 
                   GRANTED TO FOREIGN COUNTRIES.

       (a) Authority to Recover; Transfer to Corporation.--
     Subchapter II of chapter 407 of title 36, United States Code, 
     is amended by inserting after section 40728 the following new 
     section:

     ``Sec. 40728A. Recovery of excess firearms, ammunition, and 
       parts granted to foreign countries and transfer to 
       corporation

       ``(a) Authority to Recover.--The Secretary of the Army may 
     recover from any country to which rifles, ammunition, repair 
     parts, or other supplies described in section 40731(a) of 
     this title are furnished on a grant basis under the 
     conditions imposed by section 505 of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2314) any such rifles, ammunition, 
     repair parts, or supplies that become excess to the needs of 
     such country.
       ``(b) Cost of Recovery.--(1) Except as provided in 
     paragraph (2), the cost of recovery of any rifles, 
     ammunition, repair parts, or supplies under subsection (a) 
     shall be treated as incremental direct costs incurred in 
     providing logistical support to the corporation for which 
     reimbursement shall be required as provided in section 
     40727(a) of this title.
       ``(2) The Secretary may require the corporation to pay 
     costs of recovery described in paragraph (1) in advance of 
     incurring such costs. Amounts so paid shall not be subject to 
     the provisions of section 3302 of title 31, but shall be 
     administered in accordance with the last sentence of section 
     40727(a) of this title.
       ``(c) Availability for Transfer to Corporation.--Any 
     rifles, ammunition, repair parts, or supplies recovered under 
     subsection (a) shall be available for transfer to the 
     corporation in accordance with section 40728 of this title 
     under such additional terms and conditions as the Secretary 
     shall prescribe for purposes of this section.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 40728 the following new item:

``40728A. Recovery of excess firearms, ammunition, and parts granted to 
              foreign countries and transfer to corporation.''.

     SEC. 355. EXTENSION OF DEPARTMENT OF DEFENSE 
                   TELECOMMUNICATIONS BENEFIT PROGRAM.

       (a) Termination at End of Contingency Operation.--
     Subsection (c) of section 344 of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136) 
     is amended to read as follows:
       ``(c) Termination of Benefit.--The authority to provide a 
     benefit under subsection (a)(1) to a member directly 
     supporting a contingency operation shall terminate on the 
     date that is 60 days after the date on which the Secretary 
     determines that the contingency operation has ended.''.
       (b) Application to Other Contingency Operations.--Such 
     section is further amended--
       (1) in subsection (a), by striking ``Operation Iraqi 
     Freedom and Operation Enduring Freedom'' and inserting ``a 
     contingency operation''; and
       (2) by adding at the end the following new subsection:
       ``(g) Contingency Operation Defined.--In this section, the 
     term `contingency operation' has the meaning given that term 
     in section 101(a)(13) of title 10, United States Code. The 
     term includes Operation Iraqi Freedom and Operation Enduring 
     Freedom.''.
       (c) Extension to Hospitalized Members.--Subsection (a) of 
     such section is further amended--
       (1) by striking ``As soon as possible after the date of the 
     enactment of this Act, the'' and inserting ``(1) The''; and
       (2) by adding at the end the following new paragraph:
       ``(2) As soon as possible after the date of the enactment 
     of the John Warner National Defense Authorization Act for 
     Fiscal Year 2007, the Secretary shall provide, wherever 
     practicable, prepaid phone cards, packet based telephony 
     service, or an equivalent telecommunications benefit which 
     includes access to telephone service to members of the Armed 
     Forces who, although are no longer directly supporting a 
     contingency operation, are hospitalized as a result of wounds 
     or other injuries incurred while serving in direct support of 
     a contingency operation.''.
       (d) Report on Implementation of Modified Benefits.--Not 
     later than 90 days after the date of the enactment of this 
     Act, the Secretary of Defense shall submit to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report describing 
     the status of the efforts of the Department of Defense to 
     implement the modifications of the Department of Defense 
     telecommunications benefit required by section 344 of the 
     National Defense Authorization Act for Fiscal Year 2004 that 
     result from the amendments made by this section.

     SEC. 356. EXTENSION OF AVAILABILITY OF FUNDS FOR 
                   COMMEMORATION OF SUCCESS OF THE ARMED FORCES IN 
                   OPERATION ENDURING FREEDOM AND OPERATION IRAQI 
                   FREEDOM.

       Section 378(b)(2) of the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3214) is 
     amended by striking ``fiscal year 2006'' and inserting 
     ``fiscal years 2006 and 2007''.

     SEC. 357. CAPITAL SECURITY COST SHARING.

       (a) Reconciliation Required.--For each fiscal year, the 
     Secretary of Defense shall reconcile (1) the estimate of 
     overseas presence of the Secretary of Defense under 
     subsection (b) for that fiscal year, with (2) the 
     determination of the Secretary of State under section 
     604(e)(1) of the Secure Embassy Construction and 
     Counterterrorism Act of 1999 (22 U.S.C. 4865 note) of the 
     total overseas presence of the Department of Defense for that 
     fiscal year.
       (b) Annual Estimate of Overseas Presence.--Not later than 
     February 1 of each year, the Secretary of Defense shall 
     submit to the congressional defense committees an estimate of 
     the total number of Department of Defense overseas personnel 
     subject to chief of mission authority pursuant to section 207 
     of the Foreign Service Act of 1980 (22 U.S.C. 3927) during 
     the fiscal year that begins on October 1 of that year.

     SEC. 358. UTILIZATION OF FUEL CELLS AS BACK-UP POWER SYSTEMS 
                   IN DEPARTMENT OF DEFENSE OPERATIONS.

       The Secretary of Defense shall consider the utilization of 
     fuel cells as replacements for current back-up power systems 
     in a variety of Department of Defense operations and 
     activities, including in telecommunications networks, 
     perimeter security, individual equipment items, and remote 
     facilities, in order to increase the operational longevity of 
     back-up power systems and stand-by power systems in such 
     operations and activities.

     SEC. 359. IMPROVING DEPARTMENT OF DEFENSE SUPPORT FOR CIVIL 
                   AUTHORITIES.

       (a) Consultation.--In the development of concept plans for 
     the Department of Defense for providing support to civil 
     authorities, the Secretary of Defense may consult with the 
     Secretary of Homeland Security and State governments.
       (b) Prepositioning of Department of Defense Assets.--The 
     Secretary of Defense may provide for the prepositioning of 
     prepackaged or preidentified basic response assets, such as 
     medical supplies, food and water, and communications 
     equipment, in order to improve the ability of the Department 
     of Defense to rapidly provide support to civil authorities. 
     The prepositioning of basic response assets shall be carried 
     out in a manner consistent with Department of Defense concept 
     plans for providing support to civil authorities and section 
     2229 of title 10, United States Code, as added by section 
     351.
       (c) Reimbursement.--To the extent required by section 1535 
     of title 31, United States Code, or other applicable law, the 
     Secretary of Defense shall require that the Department of 
     Defense be

[[Page 20769]]

     reimbursed for costs incurred by the Department in the 
     prepositioning of basic response assets under subsection (b).
       (d) Military Readiness.--The Secretary of Defense shall 
     ensure that the prepositioning of basic response assets under 
     subsection (b) does not adversely affect the military 
     preparedness of the United States.
       (e) Procedures and Guidelines.--The Secretary may develop 
     procedures and guidelines applicable to the prepositioning of 
     basic response assets under subsection (b).

     SEC. 360. ENERGY EFFICIENCY IN WEAPONS PLATFORMS.

       (a) Policy.--It shall be the policy of the Department of 
     Defense to improve the fuel efficiency of weapons platforms, 
     consistent with mission requirements, in order to--
       (1) enhance platform performance;
       (2) reduce the size of the fuel logistics systems;
       (3) reduce the burden high fuel consumption places on 
     agility;
       (4) reduce operating costs; and
       (5) dampen the financial impact of volatile oil prices.
       (b) Report Required.--
       (1) In general.--Not later than one year after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     submit to the congressional defense committees a report on 
     the progress of the Department of Defense in implementing the 
     policy established by subsection (a).
       (2) Elements.--The report shall include the following:
       (A) An assessment of the feasibility of designating a 
     senior Department of Defense official to be responsible for 
     implementing the policy established by subsection (a).
       (B) A summary of the recommendations made as of the time of 
     the report by--
       (i) the Energy Security Integrated Product Team established 
     by the Secretary of Defense in April 2006;
       (ii) the Defense Science Board Task Force on Department of 
     Defense Energy Strategy established by the Under Secretary of 
     Defense for Acquisition, Technology and Logistics on May 2, 
     2006; and
       (iii) the January 2001 Defense Science Board Task Force 
     report on Improving Fuel Efficiency of Weapons Platforms.
       (C) For each recommendation summarized under subparagraph 
     (B)--
       (i) the steps that the Department has taken to implement 
     such recommendation;
       (ii) any additional steps the Department plans to take to 
     implement such recommendation; and
       (iii) for any recommendation that the Department does not 
     plan to implement, the reasons for the decision not to 
     implement such recommendation.
       (D) An assessment of the extent to which the research, 
     development, acquisition, and logistics guidance and 
     directives of the Department for weapons platforms are 
     appropriately designed to address the policy established by 
     subsection (a).
       (E) An assessment of the extent to which such guidance and 
     directives are being carried out in the research, 
     development, acquisition, and logistics programs of the 
     Department.
       (F) A description of any additional actions that, in the 
     view of the Secretary, may be needed to implement the policy 
     established by subsection (a).

     SEC. 361. PRIORITIZATION OF FUNDS WITHIN NAVY MISSION 
                   OPERATIONS, SHIP MAINTENANCE, COMBAT SUPPORT 
                   FORCES, AND WEAPONS SYSTEM SUPPORT.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) the President's budget for fiscal year 2007 failed to 
     fund the required number of ship steaming days per quarter 
     for Navy ship operations as well as deferring projected depot 
     maintenance for Navy ships and aircraft; and
       (2) the Secretary of Defense should ensure that sufficient 
     financial resources are provided for each fiscal year to 
     support the critical training and depot maintenance accounts 
     of the Navy in order to enable the Navy to maintain the 
     current readiness levels required to support the national 
     military strategy without putting future readiness at risk by 
     underfunding investment in modernization, including ship 
     construction programs.
       (b) Certification.--The Secretary of Defense shall submit 
     to the congressional defense committees a written 
     certification, at the same time the President submits the 
     budget for each of fiscal years 2008, 2009, and 2010, that 
     the Navy has budgeted and programmed funding to fully meet 
     the requirements for that fiscal year for each of the 
     following:
       (1) Ship steaming days per quarter for deployed and non-
     deployed ship operations.
       (2) Projected depot maintenance requirements for ships and 
     aircraft.
       (c) Limitation.--Of the funds available for Operation and 
     Maintenance, Defense-Wide, for the Office of the Secretary of 
     Defense for each of fiscal years 2008, 2009, and 2010, no 
     more than 80 percent may be obligated in that fiscal year 
     until after the submission of the certification required by 
     subsection (b) for the annual budget submitted in February of 
     that year for the following fiscal year.
       (d) Annual Report.--Beginning with the fiscal year 2008 
     budget of the President, the Secretary of the Navy shall 
     submit to the congressional defense committees an annual 
     report (to be submitted when the budget is submitted) setting 
     forth the progress toward funding the requirements of 
     subsection (a). The annual reporting requirement shall 
     terminate after the fiscal year 2010 budget submission. Each 
     such report shall include the following:
       (1) An assessment of the deployed and non-deployed 
     quarterly ship steaming day requirements, itemized by active-
     duty component and reserve component.
       (2) An assessment of the associated budget request for each 
     of the following:
       (A) Deployed and non-deployed ship steaming days per 
     quarter.
       (B) Chief of Naval Operations ship depot maintenance 
     availabilities, shown by type of maintenance availability and 
     by location.
       (C) Air depot maintenance workload, shown by type of 
     airframe and by location.
       (e) Report on Riverine Squadrons.--
       (1) Report required.--The Secretary of Navy shall submit to 
     the congressional defense committees a report on the Riverine 
     Squadrons of the Navy. The report shall be submitted with the 
     President's budget for fiscal year 2008 and shall include the 
     following:
       (A) The total amount funded for fiscal year 2006 and 
     projected funding for fiscal year 2007 and fiscal year 2008 
     for those squadrons.
       (B) The operational requirement of the commander of the 
     United States Central Command for those squadrons and the 
     corresponding Department of Navy concept of operations for 
     deployments of those squadrons to support Operation Iraqi 
     Freedom or Operation Enduring Freedom.
       (C) The military table of organization and equipment for 
     those squadrons.
       (D) A summary of existing Department of Navy equipment that 
     has been assigned in fiscal year 2006 or will be provided in 
     fiscal year 2007 and fiscal year 2008 for those squadrons.
       (E) The Department of Navy directive for the mission 
     assigned to those squadrons.
       (2) Limitation.--Of the amount made available for fiscal 
     year 2007 to the Department of Navy for operation and 
     maintenance for the Office of the Secretary of the Navy, not 
     more than 80 percent may be obligated before the date on 
     which the report required under paragraph (1) is submitted.

     SEC. 362. PROVISION OF ADEQUATE STORAGE SPACE TO SECURE 
                   PERSONAL PROPERTY OUTSIDE OF ASSIGNED MILITARY 
                   FAMILY HOUSING UNIT.

       The Secretary of a military department shall ensure that a 
     member of the Armed Forces under the jurisdiction of the 
     Secretary who occupies a unit of military family housing is 
     provided with adequate storage space to secure personal 
     property that the member is unable to secure within the unit 
     whenever--
       (1) the member is assigned to duty in an area for which 
     special pay under section 310 of title 37, United States 
     Code, is available and the assignment is pursuant to orders 
     specifying an assignment of 180 days or more; and
       (2) the dependents of the member who otherwise occupy the 
     unit of military family housing are absent from the unit for 
     more than 30 consecutive days during the period of the 
     assignment of the member.

     SEC. 363. EXPANSION OF PAYMENT OF REPLACEMENT VALUE OF 
                   PERSONAL PROPERTY DAMAGED DURING TRANSPORT AT 
                   GOVERNMENT EXPENSE.

       (a) Coverage of Property of Civilian Employees of 
     Department of Defense.--Subsection (a) of section 2636a of 
     title 10, United States Code, is amended by striking ``of 
     baggage and household effects for members of the armed forces 
     at Government expense'' and inserting ``at Government expense 
     of baggage and household effects for members of the armed 
     forces or civilian employees of the Department of Defense (or 
     both)''.
       (b) Requirement for Payment and Deduction Upon Failure of 
     Carrier to Settle.--Effective March 1, 2008, such section is 
     further amended--
       (1) in subsection (a), by striking ``may include'' and 
     inserting ``shall include''; and
       (2) in subsection (b), by striking ``may be deducted'' and 
     inserting ``shall be deducted''.
       (c) Certification on Families First Program.--The Secretary 
     of Defense shall submit to the congressional defense 
     committees a report containing the certifications of the 
     Secretary with respect to the program of the Department of 
     Defense known as ``Families First'' on the following matters:
       (1) Whether there is an alternative to the system under the 
     program that would provide equal or greater capability at a 
     lower cost.
       (2) Whether the estimates on costs, and the anticipated 
     schedule and performance parameters, for the program and 
     system are reasonable.
       (3) Whether the management structure for the program is 
     adequate to manage and control program costs.
       (d) Comptroller General Reports on Families First 
     Program.--
       (1) Review and assessment required.--The Comptroller 
     General of the United States shall conduct a review and 
     assessment of the progress of the Department of Defense in 
     implementing the program of the Department of Defense known 
     as ``Families First''.
       (2) Elements of review and assessment.--In conducting the 
     review and assessment required by paragraph (1), the 
     Comptroller General shall--
       (A) assess the progress of the Department in achieving the 
     goals of the Families First program, including progress in 
     the development and deployment of the Defense Personal 
     Property System;
       (B) assess the organization, staffing, resources, and 
     capabilities of the Defense Personal Property System Project 
     Management Office established on April 7, 2006;
       (C) evaluate the growth in cost of the program since the 
     previous assessment of the program by

[[Page 20770]]

     the Comptroller General, and estimate the current annual cost 
     of the Defense Personal Property System and each component of 
     that system; and
       (D) assess the feasibility of implementing processes and 
     procedures, pending the satisfactory development of the 
     Defense Personal Property System, which would achieve the 
     goals of the program of providing improved personal property 
     management services to members of the Armed Forces.
       (3) Reports.--The Comptroller General shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives reports as 
     follows:
       (A) An interim report on the review and assessment required 
     by paragraph (1) by not later than December 1, 2006.
       (B) A final report on such review and assessment by not 
     later than June 1, 2007.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum 
              levels.
Sec. 403. Additional authority for increases of Army and Marine Corps 
              active duty end strengths for fiscal years 2008 and 2009.

                       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 2007 limitation on number of non-dual status 
              technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on 
              active duty for operational support.

              Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.
                       Subtitle A--Active Forces

     SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

       (a) In General.--The Armed Forces are authorized strengths 
     for active duty personnel as of September 30, 2007, as 
     follows:
       (1) The Army, 512,400.
       (2) The Navy, 340,700.
       (3) The Marine Corps, 180,000.
       (4) The Air Force, 334,200.
       (b) Limitation.--
       (1) Army.--The authorized strength for the Army provided in 
     paragraph (1) of subsection (a) for active duty personnel for 
     fiscal year 2007 is subject to the condition that costs of 
     active duty personnel of the Army for that fiscal year in 
     excess of 482,400 shall be paid out of funds authorized to be 
     appropriated for that fiscal year for a contingent emergency 
     reserve fund or as an emergency supplemental appropriation.
       (2) Marine corps.--The authorized strength for the Marine 
     Corps provided in paragraph (3) of subsection (a) for active 
     duty personnel for fiscal year 2007 is subject to the 
     condition that costs of active duty personnel of the Marine 
     Corps for that fiscal year in excess of 175,000 shall be paid 
     out of funds authorized to be appropriated for that fiscal 
     year for a contingent emergency reserve fund or as an 
     emergency supplemental appropriation.

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

       Section 691(b) of title 10, United States Code, is amended 
     by striking paragraphs (1) through (4) and inserting the 
     following:
       ``(1) For the Army, 502,400.
       ``(2) For the Navy, 340,700.
       ``(3) For the Marine Corps, 180,000.
       ``(4) For the Air Force, 334,200.''.

     SEC. 403. ADDITIONAL AUTHORITY FOR INCREASES OF ARMY AND 
                   MARINE CORPS ACTIVE DUTY END STRENGTHS FOR 
                   FISCAL YEARS 2008 AND 2009.

       Effective October 1, 2007, the text of section 403 of the 
     Ronald W. Reagan National Defense Authorization Act for 
     Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1863) is 
     amended to read as follows:
       ``(a) Authority.--
       ``(1) Army.--For each of fiscal years 2008 and 2009, the 
     Secretary of Defense may, as the Secretary determines 
     necessary for the purposes specified in paragraph (3), 
     establish the active- duty end strength for the Army at a 
     number greater than the number otherwise authorized by law up 
     to the number equal to the fiscal-year 2007 baseline plus 
     20,000.
       ``(2) Marine corps.--For each of fiscal years 2008 and 
     2009, the Secretary of Defense may, as the Secretary 
     determines necessary for the purposes specified in paragraph 
     (3), establish the active-duty end strength for the Marine 
     Corps at a number greater than the number otherwise 
     authorized by law up to the number equal to the fiscal-year 
     2007 baseline plus 4,000.
       ``(3) Purpose of increases.--The purposes for which 
     increases may be made in Army and Marine Corps active duty 
     end strengths under paragraphs (1) and (2) are--
       ``(A) to support operational missions; and
       ``(B) to achieve transformational reorganization 
     objectives, including objectives for increased numbers of 
     combat brigades and battalions, increased unit manning, force 
     stabilization and shaping, and rebalancing of the active and 
     reserve component forces.
       ``(4) Fiscal-year 2007 baseline.--In this subsection, the 
     term `fiscal-year 2007 baseline', with respect to the Army 
     and Marine Corps, means the active-duty end strength 
     authorized for those services in section 401 of the John 
     Warner National Defense Authorization Act for Fiscal Year 
     2007.
       ``(5) Active-duty end strength.--In this subsection, the 
     term `active-duty end strength' means the strength for 
     active-duty personnel of one of the Armed Forces as of the 
     last day of a fiscal year.
       ``(b) Relationship to Presidential Waiver Authority.--
     Nothing in this section shall be construed to limit the 
     President's authority under section 123a of title 10, United 
     States Code, to waive any statutory end strength in a time of 
     war or national emergency.
       ``(c) Relationship to Other Variance Authority.--The 
     authority under subsection (a) is in addition to the 
     authority to vary authorized end strengths that is provided 
     in subsections (e) and (f) of section 115 of title 10, United 
     States Code.
       ``(d) Budget Treatment.--
       ``(1) Fiscal year 2008 budget.--The budget for the 
     Department of Defense for fiscal year 2008 as submitted to 
     Congress shall comply, with respect to funding, with 
     subsections (c) and (d) of section 691 of title 10, United 
     States Code.
       ``(2) Other increases.--If the Secretary of Defense plans 
     to increase the Army or Marine Corps active duty end strength 
     for a fiscal year under subsection (a), then the budget for 
     the Department of Defense for that fiscal year as submitted 
     to Congress shall include the amounts necessary for funding 
     that active duty end strength in excess of the fiscal year 
     2007 active duty end strength authorized for that service 
     under section 401 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007.''.
                       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, 2007, as follows:
       (1) The Army National Guard of the United States, 350,000.
       (2) The Army Reserve, 200,000.
       (3) The Navy Reserve, 71,300.
       (4) The Marine Corps Reserve, 39,600.
       (5) The Air National Guard of the United States, 107,000.
       (6) The Air Force Reserve, 74,900.
       (7) The Coast Guard Reserve, 10,000.
       (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 increased proportionately 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, 2007, 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, 27,441.
       (2) The Army Reserve, 15,416.
       (3) The Navy Reserve, 12,564.
       (4) The Marine Corps Reserve, 2,261.
       (5) The Air National Guard of the United States, 13,291.
       (6) The Air Force Reserve, 2,707.

     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 2007 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, 7,912.
       (2) For the Army National Guard of the United States, 
     26,050.
       (3) For the Air Force Reserve, 10,124.
       (4) For the Air National Guard of the United States, 
     23,255.

     SEC. 414. FISCAL YEAR 2007 LIMITATION ON NUMBER OF NON-DUAL 
                   STATUS TECHNICIANS.

       (a) Limitations.--
       (1) National guard.--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, 2007, 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) Army reserve.--The number of non-dual status 
     technicians employed by the Army Reserve as of September 30, 
     2007, may not exceed 595.

[[Page 20771]]

       (3) Air force reserve.--The number of non-dual status 
     technicians employed by the Air Force Reserve as of September 
     30, 2007, may not exceed 90.
       (b) Non-Dual Status Technicians Defined.--In this section, 
     the term ``non-dual status technician'' has the meaning given 
     that term in section 10217(a) of title 10, United States 
     Code.

     SEC. 415. MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO 
                   BE ON ACTIVE DUTY FOR OPERATIONAL SUPPORT.

       During fiscal year 2007, the maximum number of members of 
     the reserve components of the Armed Forces who may be serving 
     at any time on full-time operational support duty under 
     section 115(b) of title 10, United States Code, is the 
     following:
       (1) The Army National Guard of the United States, 17,000.
       (2) The Army Reserve, 13,000.
       (3) The Navy Reserve, 6,200.
       (4) The Marine Corps Reserve, 3,000.
       (5) The Air National Guard of the United States, 16,000.
       (6) The Air Force Reserve, 14,000.
              Subtitle C--Authorization of Appropriations

     SEC. 421. MILITARY PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel for fiscal year 
     2007 a total of $110,098,628,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 2007.

     SEC. 422. ARMED FORCES RETIREMENT HOME.

       There is hereby authorized to be appropriated for fiscal 
     year 2007 from the Armed Forces Retirement Home Trust Fund 
     the sum of $54,846,000 for the operation of the Armed Forces 
     Retirement Home.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

               Part I--Officer Personnel Policy Generally

Sec. 501. Military status of officers serving in certain intelligence 
              community positions.
Sec. 502. Extension of age for mandatory retirement for active-duty 
              general and flag officers.
Sec. 503. Increased mandatory retirement ages for reserve officers.
Sec. 504. Standardization of grade of senior dental officer of the Air 
              Force with that of senior dental officer of the Army.
Sec. 505. Management of chief warrant officers.
Sec. 506. Extension of temporary reduction of time-in-grade requirement 
              for eligibility for promotion for certain active-duty 
              list officers in grades of first lieutenant and 
              lieutenant (junior grade).
Sec. 507. Grade and exclusion from active-duty general and flag officer 
              distribution and strength limitations of officer serving 
              as Attending Physician to the Congress.
Sec. 508. Modification of qualifications for leadership of the Naval 
              Postgraduate School.

                   Part II--Officer Promotion Policy

Sec. 511. Revisions to authorities relating to authorized delays of 
              officer promotions.
Sec. 512. Consideration of adverse information by selection boards in 
              recommendations on officers to be promoted.
Sec. 513. Expanded authority for removal from reports of selection 
              boards of officers recommended for promotion to grades 
              below general and flag grades.
Sec. 514. Special selection board authorities.
Sec. 515. Removal from promotion list of officers not promoted within 
              18 months of approval of list by the President.

            Part III--Joint Officer Management Requirements

Sec. 516. Modification and enhancement of general authorities on 
              management of officers who are joint qualified.
Sec. 517. Modification of promotion policy objectives for joint 
              officers.
Sec. 518. Applicability of joint duty assignment requirements limited 
              to graduates of National Defense University schools.
Sec. 519. Modification of certain definitions relating to jointness.

                 Subtitle B--Reserve Component Matters

                  Part I--Reserve Component Management

Sec. 521. Recognition of former Representative G. V. `Sonny' Montgomery 
              for his 30 years of service in the House of 
              Representatives.
Sec. 522. Revisions to reserve call-up authority.
Sec. 523. Military retirement credit for certain service by National 
              Guard members performed while in a State duty status 
              immediately after the terrorist attacks of September 11, 
              2001.

        Part II--Authorities Relating to Guard and Reserve Duty

Sec. 524. Title 10 definition of Active Guard and Reserve duty.
Sec. 525. Authority for Active Guard and Reserve duties to include 
              support of operational missions assigned to the reserve 
              components and instruction and training of active-duty 
              personnel.
Sec. 526. Governor's authority to order members to Active Guard and 
              Reserve duty.
Sec. 527. Expansion of operations of civil support teams.
Sec. 528. Modification of authorities relating to the Commission on the 
              National Guard and Reserves.
Sec. 529. Additional matters to be reviewed by Commission on the 
              National Guard and Reserves.

                   Subtitle C--Education and Training

                       Part I--Service Academies

Sec. 531. Expansion of service academy exchange programs with foreign 
              military academies.
Sec. 532. Revision and clarification of requirements with respect to 
              surveys and reports concerning sexual harassment and 
              sexual violence at the service academies.
Sec. 533. Department of Defense policy on service academy and ROTC 
              graduates seeking to participate in professional sports 
              before completion of their active-duty service 
              obligations.

         Part II--Scholarship and Financial Assistance Programs

Sec. 535. Authority to permit members who participate in the guaranteed 
              reserve forces duty scholarship program to participate in 
              the health professions scholarship program and serve on 
              active duty.
Sec. 536. Detail of commissioned officers as students at medical 
              schools.
Sec. 537. Increase in maximum amount of repayment under education loan 
              repayment for officers in specified health professions.
Sec. 538. Health Professions Scholarship and Financial Assistance 
              Program for Active Service.

                     Part III--Junior ROTC Program

Sec. 539. Junior Reserve Officers' Training Corps instructor 
              qualifications.
Sec. 540. Expansion of members eligible to be employed to provide 
              Junior Reserve Officers' Training Corps instruction.
Sec. 541. Expansion of Junior Reserve Officers' Training Corps program.
Sec. 542. Review of legal status of Junior ROTC program.

             Part IV--Other Education and Training Programs

Sec. 543. Expanded eligibility for enlisted members for instruction at 
              Naval Postgraduate School.

                Subtitle D--General Service Authorities

Sec. 546. Test of utility of test preparation guides and education 
              programs in enhancing recruit candidate performance on 
              the Armed Services Vocational Aptitude Battery (ASVAB) 
              and Armed Forces Qualification Test (AFQT).
Sec. 547. Clarification of nondisclosure requirements applicable to 
              certain selection board proceedings.
Sec. 548. Report on extent of provision of timely notice of long-term 
              deployments.

                  Subtitle E--Military Justice Matters

Sec. 551. Applicability of Uniform Code of Military Justice to members 
              of the Armed Forces ordered to duty overseas in inactive 
              duty for training status.
Sec. 552. Clarification of application of Uniform Code of Military 
              Justice during a time of war.

                   Subtitle F--Decorations and Awards

Sec. 555. Authority for presentation of Medal of Honor Flag to living 
              Medal of Honor recipients and to living primary next-of-
              kin of deceased Medal of Honor recipients.
Sec. 556. Review of eligibility of prisoners of war for award of the 
              Purple Heart.
Sec. 557. Report on Department of Defense process for awarding 
              decorations.

               Subtitle G--Matters Relating to Casualties

Sec. 561. Authority for retention after separation from service of 
              assistive technology and devices provided while on active 
              duty.
Sec. 562. Transportation of remains of casualties dying in a theater of 
              combat operations.
Sec. 563.  Annual budget display of funds for POW/MIA activities of 
              Department of Defense.
Sec. 564. Military Severely Injured Center.
Sec. 565. Comprehensive review on procedures of the Department of 
              Defense on mortuary affairs.
Sec. 566. Additional elements of policy on casualty assistance to 
              survivors of military decedents.
Sec. 567.  Requirement for deploying military medical personnel to be 
              trained in preservation of remains under combat or 
              combat-related conditions.

[[Page 20772]]

     Subtitle H--Impact Aid and Defense Dependents Education System

Sec. 571. Enrollment in defense dependents' education system of 
              dependents of foreign military members assigned to 
              Supreme Headquarters Allied Powers, Europe.
Sec. 572. Continuation of authority to assist local educational 
              agencies that benefit dependents of members of the Armed 
              Forces and Department of Defense civilian employees.
Sec. 573. Impact aid for children with severe disabilities.
Sec. 574. Plan and authority to assist local educational agencies 
              experiencing growth in enrollment due to force structure 
              changes, relocation of military units, or base closures 
              and realignments.
Sec. 575. Pilot program on parent education to promote early childhood 
              education for dependent children affected by military 
              deployment or relocation of military units.

                Subtitle I--Armed Forces Retirement Home

Sec. 578. Report on leadership and management of the Armed Forces 
              Retirement Home.
Sec. 579. Report on Local Boards of Trustees of the Armed Forces 
              Retirement Home.

                          Subtitle J--Reports

Sec. 581. Report on personnel requirements for airborne assets 
              identified as Low-Density, High-Demand Airborne Assets.
Sec. 582. Report on feasibility of establishment of Military Entrance 
              Processing Command station on Guam.
Sec. 583. Inclusion in annual Department of Defense report on sexual 
              assaults of information on results of disciplinary 
              actions.
Sec. 584. Report on provision of electronic copy of military records on 
              discharge or release of members from the Armed Forces.
Sec. 585. Report on omission of social security account numbers from 
              military identification cards.
Sec. 586. Report on maintenance and protection of data held by the 
              Secretary of Defense as part of the Department of Defense 
              Joint Advertising, Market Research and Studies (JAMRS) 
              program.
Sec. 587. Comptroller General report on military conscientious 
              objectors.

                       Subtitle K--Other Matters

Sec. 591. Modification in Department of Defense contributions to 
              Military Retirement Fund.
Sec. 592. Revision in Government contributions to Medicare-Eligible 
              Retiree Health Care Fund.
Sec. 593. Dental Corps of the Navy Bureau of Medicine and Surgery.
Sec. 594. Permanent authority for presentation of recognition items for 
              recruitment and retention purposes.
Sec. 595. Persons authorized to administer enlistment and appointment 
              oaths.
Sec. 596. Military voting matters.
Sec. 597. Physical evaluation boards.
Sec. 598. Military ID cards for retiree dependents who are permanently 
              disabled.
Sec. 599. United States Marine Band and United States Marine Drum and 
              Bugle Corps.
                  Subtitle A--Officer Personnel Policy

               PART I--OFFICER PERSONNEL POLICY GENERALLY

     SEC. 501. MILITARY STATUS OF OFFICERS SERVING IN CERTAIN 
                   INTELLIGENCE COMMUNITY POSITIONS.

       (a) Clarification of Military Status.--Section 528 of title 
     10, United States Code, is amended--
       (1) by striking subsections (a) and (b) and inserting the 
     following:
       ``(a) Military Status.--An officer of the armed forces, 
     while serving in a position covered by this section--
       ``(1) shall not be subject to supervision or control by the 
     Secretary of Defense or any other officer or employee of the 
     Department of Defense, except as directed by the Secretary of 
     Defense concerning reassignment from such position; and
       ``(2) may not exercise, by reason of the officer's status 
     as an officer, any supervision or control with respect to any 
     of the military or civilian personnel of the Department of 
     Defense except as otherwise authorized by law.
       ``(b) Director and Deputy Director of CIA.--When the 
     position of Director or Deputy Director of the Central 
     Intelligence Agency is held by an officer of the armed 
     forces, the officer serving in that position, while so 
     serving, shall be excluded from the limitations in sections 
     525 and 526 of this title. However, if both such positions 
     are held by an officer of the armed forces, only one such 
     officer may be excluded from those limitation while so 
     serving.''; and
       (2) by adding at the end the following new subsections:
       ``(e) Effect of Appointment.--Except as provided in 
     subsection (a), the appointment or assignment of an officer 
     of the armed forces to a position covered by this section 
     shall not affect--
       ``(1) the status, position, rank, or grade of such officer 
     in the armed forces; or
       ``(2) any emolument, perquisite, right, privilege, or 
     benefit incident to or arising out of such status, position, 
     rank, or grade.
       ``(f) Military Pay and Allowances.--(1) An officer of the 
     armed forces on active duty who is appointed or assigned to a 
     position covered by this section shall, while serving in such 
     position and while remaining on active duty, continue to 
     receive military pay and allowances and shall not receive the 
     pay prescribed for such position.
       ``(2) Funds from which pay and allowances under paragraph 
     (1) are paid to an officer while so serving shall be 
     reimbursed as follows:
       ``(A) For an officer serving in a position within the 
     Central Intelligence Agency, such reimbursement shall be made 
     from funds available to the Director of the Central 
     Intelligence Agency.
       ``(B) For an officer serving in a position within the 
     Office of the Director of National Intelligence, such 
     reimbursement shall be made from funds available to the 
     Director of National Intelligence.
       ``(g) Covered Positions.--The positions covered by this 
     section are the positions specified in subsections (b) and 
     (c) and the positions designated under subsection (d).''.
       (b) Clerical Amendments.--
       (1) The heading of such section is amended to read as 
     follows:

     ``Sec. 528. Officers serving in certain intelligence 
       positions: military status; exclusion from distribution and 
       strength limitations; pay and allowances''.

       (2) The item relating to section 528 in the table of 
     sections at the beginning of chapter 32 of such title is 
     amended to read as follows:

``528. Officers serving in certain intelligence positions: military 
              status; exclusion from distribution and strength 
              limitations; pay and allowances.''.

     SEC. 502. EXTENSION OF AGE FOR MANDATORY RETIREMENT FOR 
                   ACTIVE-DUTY GENERAL AND FLAG OFFICERS.

       (a) Revised Age Limits for General and Flag Officers.--
     Chapter 63 of title 10, United States Code, is amended by 
     inserting after section 1252 the following new section:

     ``Sec. 1253. Age 64: regular commissioned officers in general 
       and flag officer grades; exception

       ``(a) General Rule.--Unless retired or separated earlier, 
     each regular commissioned officer of the Army, Navy, Air 
     Force, or Marine Corps serving in a general or flag officer 
     grade shall be retired on the first day of the month 
     following the month in which the officer becomes 64 years of 
     age.
       ``(b) Exception for Officers Serving in O-9 and O-10 
     Positions.--In the case of an officer serving in a position 
     that carries a grade above major general or rear admiral, the 
     retirement under subsection (a) of that officer may be 
     deferred--
       ``(1) by the President, but such a deferment may not extend 
     beyond the first day of the month following the month in 
     which the officer becomes 68 years of age; or
       ``(2) by the Secretary of Defense, but such a deferment may 
     not extend beyond the first day of the month following the 
     month in which the officer becomes 66 years of age.''.
       (b) Restatement and Modification of Current Age Limits for 
     Other Officers.--Section 1251 of such title is amended to 
     read as follows:

     ``Sec. 1251. Age 62: regular commissioned officers in grades 
       below general and flag officer grades; exceptions

       ``(a) General Rule.--Unless retired or separated earlier, 
     each regular commissioned officer of the Army, Navy, Air 
     Force, or Marine Corps (other than an officer covered by 
     section 1252 of this title or a commissioned warrant officer) 
     serving in a grade below brigadier general or rear admiral 
     (lower half), in the case of an officer in the Navy, shall be 
     retired on the first day of the month following the month in 
     which the officer becomes 62 years of age.
       ``(b) Deferred Retirement of Health Professions Officers.--
     (1) The Secretary of the military department concerned may, 
     subject to subsection (d), defer the retirement under 
     subsection (a) of a health professions officer if during the 
     period of the deferment the officer will be performing duties 
     consisting primarily of providing patient care or performing 
     other clinical duties.
       ``(2) For purposes of this subsection, a health professions 
     officer is--
       ``(A) a medical officer;
       ``(B) a dental officer; or
       ``(C) an officer in the Army Nurse Corps, an officer in the 
     Navy Nurse Corps, or an officer in the Air Force designated 
     as a nurse.
       ``(c) Deferred Retirement of Chaplains.--The Secretary of 
     the military department concerned may, subject to subsection 
     (d), defer the retirement under subsection (a) of an officer 
     who is appointed or designated as a chaplain if the Secretary 
     determines that such deferral is in the best interest of the 
     military department concerned.
       ``(d) Limitation on Deferment of Retirements.--(1) Except 
     as provided in paragraph (2), a deferment under subsection 
     (b) or (c) may not extend beyond the first day of the month 
     following the month in which the officer becomes 68 years of 
     age.
       ``(2) The Secretary of the military department concerned 
     may extend a deferment under subsection (b) or (c) beyond the 
     day referred to in paragraph (1) if the Secretary determines 
     that extension of the deferment is necessary for the needs of 
     the military department concerned. Such an extension shall be 
     made on a case-by-

[[Page 20773]]

     case basis and shall be for such period as the Secretary 
     considers appropriate.''.
       (c) Clerical Amendments.--The table of sections at the 
     beginning of chapter 63 of such title is amended--
       (1) by striking the item relating to section 1251 and 
     inserting the following new item:

``1251. Age 62: regular commissioned officers in grades below general 
              and flag officer grades; exceptions.''; and
       (2) by inserting after the item relating to section 1252 
     the following new item:

``1253. Age 64: regular commissioned officers in general and flag 
              officer grades; exception.''.
       (d) Conforming Amendments.--Chapter 71 of such title is 
     amended--
       (1) in the table in section 1401(a), by inserting at the 
     bottom of the column under the heading ``For sections'', in 
     the entry for Formula Number 5, the following: ``1253''; and
       (2) in the table in section 1406(b)(1), by inserting at the 
     bottom of the first column the following: ``1253''.

     SEC. 503. INCREASED MANDATORY RETIREMENT AGES FOR RESERVE 
                   OFFICERS.

       (a) Major Generals and Rear Admirals.--
       (1) Increased age.--Section 14511 of title 10, United 
     States Code, is amended by striking ``62 years'' and 
     inserting ``64 years''.
       (2) Conforming amendment.--The heading of such section is 
     amended to read as follows:

     ``Sec. 14511. Separation at age 64: major generals and rear 
       admirals''.

       (b) Brigadier Generals and Rear Admirals (lower Half).--
       (1) Increased age.--Section 14510 of such title is amended 
     by striking ``60 years'' and inserting ``62 years''.
       (2) Conforming amendment.--The heading of such section is 
     amended to read as follows:

     ``Sec. 14510. Separation at age 62: brigadier generals and 
       rear admirals (lower half)''.

       (c) Officers Below Brigadier General or Rear Admiral (Lower 
     Half)--
       (1) Increased age.--Section 14509 of such title is amended 
     by striking ``60 years'' and inserting ``62 years''.
       (2) Conforming amendment.--The heading of such section is 
     amended to read as follows:

     ``Sec. 14509. Separation at age 62: reserve officers in 
       grades below brigadier general or rear admiral (lower 
       half)''.

       (d) Certain Other Officers.--
       (1) Increased age.--Section 14512 of such title is amended 
     by striking ``64 years'' both places it appears and inserting 
     ``66 years''.
       (2) Conforming amendment.--The heading of such section is 
     amended to read as follows:

     ``Sec. 14512. Separation at age 66: officers holding certain 
       offices''.

       (e) Conforming Amendments.--Section 14508 of such title is 
     amended--
       (1) in subsection (c), by striking ``60 years'' and 
     inserting ``62 years''; and
       (2) in subsection (d), by striking ``62 years'' and 
     inserting ``64 years''.
       (f) Clerical Amendment.--The table of sections at the 
     beginning of chapter 1407 of such title is amended by 
     striking the items relating to sections 14509, 14510, 14511, 
     and 14512 and inserting the following new items:

``14509. Separation at age 62: reserve officers in grades below 
              brigadier general or rear admiral (lower half).
``14510. Separation at age 62: brigadier generals and rear admirals 
              (lower half).
``14511. Separation at age 64: major generals and rear admirals.
``14512. Separation at age 66: officers holding certain offices.''.

     SEC. 504. STANDARDIZATION OF GRADE OF SENIOR DENTAL OFFICER 
                   OF THE AIR FORCE WITH THAT OF SENIOR DENTAL 
                   OFFICER OF THE ARMY.

       (a) Air Force Assistant Surgeon General for Dental 
     Services.--Section 8081 of title 10, United States Code, is 
     amended by striking ``brigadier general'' in the second 
     sentence and inserting ``major general''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of the occurrence of the next 
     vacancy in the position of Assistant Surgeon General for 
     Dental Services in the Air Force that occurs after the date 
     of the enactment of this Act or, if earlier, on the date of 
     the appointment to the grade of major general of the officer 
     who is the incumbent in that position on the date of the 
     enactment of the Act.

     SEC. 505. MANAGEMENT OF CHIEF WARRANT OFFICERS.

       (a) Retention of Chief Warrant Officers, w-4, Who Have 
     Twice Failed of Selection for Promotion.--Paragraph (1) of 
     section 580(e) of title 10, United States Code, is amended by 
     striking ``continued on active duty if'' and all that follows 
     and inserting ``continued on active duty if--
       ``(A) in the case of a warrant officer in the grade of 
     chief warrant officer, W-2, or chief warrant officer, W-3, 
     the warrant officer is selected for continuation on active 
     duty by a selection board convened under section 573(c) of 
     this title; and
       ``(B) in the case of a warrant officer in the grade of 
     chief warrant officer, W-4, the warrant officer is selected 
     for continuation on active duty by the Secretary concerned 
     under such procedures as the Secretary may prescribe.''.
       (b) Eligibility for Consideration for Promotion of Warrant 
     Officers Continued on Active Duty.--Paragraph (2) of such 
     section is amended--
       (1) by inserting ``(A)'' after ``(2)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) A warrant officer in the grade of chief warrant 
     officer, W-4, who is retained on active duty pursuant to 
     procedures prescribed under paragraph (1)(B) is eligible for 
     further consideration for promotion while remaining on active 
     duty.''.
       (c) Mandatory Retirement for Length of Service.--Section 
     1305(a) of such title is amended--
       (1) by striking ``(1) Except as'' and all the follows 
     through ``W-5)'' and inserting ``A regular warrant officer'';
       (2) by inserting ``as a warrant officer'' after ``years of 
     active service'';
       (3) by inserting ``the date on which'' after ``60 days 
     after''; and
       (4) by striking paragraph (2).

     SEC. 506. EXTENSION OF TEMPORARY REDUCTION OF TIME-IN-GRADE 
                   REQUIREMENT FOR ELIGIBILITY FOR PROMOTION FOR 
                   CERTAIN ACTIVE-DUTY LIST OFFICERS IN GRADES OF 
                   FIRST LIEUTENANT AND LIEUTENANT (JUNIOR GRADE).

       Section 619(a)(1)(B) of title 10, United States Code, is 
     amended by striking ``October 1, 2005'' and inserting 
     ``October 1, 2008''.

     SEC. 507. GRADE AND EXCLUSION FROM ACTIVE-DUTY GENERAL AND 
                   FLAG OFFICER DISTRIBUTION AND STRENGTH 
                   LIMITATIONS OF OFFICER SERVING AS ATTENDING 
                   PHYSICIAN TO THE CONGRESS.

       (a) Grade.--
       (1) Regular officer.--(A) Chapter 41 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 722. Attending Physician to the Congress: grade

       ``A general officer serving as Attending Physician to the 
     Congress, while so serving, holds the grade of major general. 
     A flag officer serving as Attending Physician to the 
     Congress, while so serving, holds the grade of rear 
     admiral.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``722. Attending Physician to the Congress: grade.''.
       (2) Reserve officer.--(A) Section 12210 of such title is 
     amended by striking ``who holds'' and all that follows and 
     inserting ``holds the reserve grade of major general or rear 
     admiral, as appropriate.''.
       (B) The heading of such section is amended to read as 
     follows:

     ``Sec. 12210. Attending Physician to the Congress: reserve 
       grade''.

       (C) The table of sections at the beginning of chapter 1205 
     of such title is amended by striking the item relating to 
     section 12210 and inserting the following new item:

``12210. Attending Physician to the Congress: reserve grade.''.
       (b) Distribution Limitations.--Section 525 of such title is 
     amended by adding at the end the following new subsection:
       ``(f) An officer while serving as Attending Physician to 
     the Congress is in addition to the number that would 
     otherwise be permitted for that officer's armed force for 
     officers serving on active duty in grades above brigadier 
     general or rear admiral (lower half) under subsection (a).''.
       (c) Active-Duty Strength Limitations.--Section 526 of such 
     title is amended by adding at the end the following new 
     subsection:
       ``(f) Exclusion of Attending Physician to the Congress.--
     The limitations of this section do not apply to the general 
     or flag officer who is serving as Attending Physician to the 
     Congress.''.

     SEC. 508. MODIFICATION OF QUALIFICATIONS FOR LEADERSHIP OF 
                   THE NAVAL POSTGRADUATE SCHOOL.

       Subsection (a) of section 7042 of title 10, United States 
     Code, is amended to read as follows:
       ``(a)(1) The President of the Naval Postgraduate School 
     shall be one of the following:
       ``(A) An active-duty officer of the Navy or Marine Corps in 
     a grade not below the grade of captain, or colonel, 
     respectively, who is assigned or detailed to such position.
       ``(B) A civilian individual, including an individual who 
     was retired from the Navy or Marine Corps in a grade not 
     below captain, or colonel, respectively, who has the 
     qualifications appropriate to the position of President and 
     is selected by the Secretary of the Navy as the best 
     qualified from among candidates for the position in 
     accordance with--
       ``(i) the criteria specified in paragraph (4);
       ``(ii) a process determined by the Secretary; and
       ``(iii) other factors the Secretary considers essential.
       ``(2) Before making an assignment, detail, or selection of 
     an individual for the position of President of the Naval 
     Postgraduate School, the Secretary shall--
       ``(A) consult with the Board of Advisors for the Naval 
     Postgraduate School;
       ``(B) consider any recommendation of the leadership and 
     faculty of the Naval Postgraduate School regarding the 
     assignment or selection to that position; and
       ``(C) consider the recommendations of the Chief of Naval 
     Operations and the Commandant of the Marine Corps.
       ``(3) An individual selected for the position of President 
     of the Naval Postgraduate School under paragraph (1)(B) shall 
     serve in that position for a term of not more than five years 
     and may be continued in that position for an additional term 
     of up to five years.

[[Page 20774]]

       ``(4) The qualifications appropriate for selection of an 
     individual for detail or assignment to the position of 
     President of the Naval Postgraduate School include the 
     following:
       ``(A) An academic degree that is either--
       ``(i) a doctorate degree in a field of study relevant to 
     the mission and function of the Naval Postgraduate School; or
       ``(ii) a master's degree in a field of study relevant to 
     the mission and function of the Naval Postgraduate School, 
     but only if--
       ``(I) the individual is an active-duty or retired officer 
     of the Navy or Marine Corps in a grade not below the grade of 
     captain or colonel, respectively; and
       ``(II) at the time of the selection of that individual as 
     President, the individual permanently appointed to the 
     position of Provost and Academic Dean has a doctorate degree 
     in such a field of study.
       ``(B) A comprehensive understanding of the Department of 
     the Navy, the Department of Defense, and joint and combined 
     operations.
       ``(C) Leadership experience at the senior level in a large 
     and diverse organization.
       ``(D) Demonstrated ability to foster and encourage a 
     program of research in order to sustain academic excellence.
       ``(E) Other qualifications, as determined by the Secretary 
     of the Navy.''.

                   PART II--OFFICER PROMOTION POLICY

     SEC. 511. REVISIONS TO AUTHORITIES RELATING TO AUTHORIZED 
                   DELAYS OF OFFICER PROMOTIONS.

       (a) Officers on Active-Duty List.--
       (1) Secretary of defense regulations for delays of 
     appointment upon promotion.--Paragraphs (1) and (2) of 
     subsection (d) of section 624 of title 10, United States 
     Code, are amended by striking ``prescribed by the Secretary 
     concerned'' in and inserting ``prescribed by the Secretary of 
     Defense''.
       (2) Additional basis for delay of appointment by reason of 
     investigations and proceedings.--Subsection (d)(1) of such 
     section is further amended--
       (A) by striking ``or'' at the end of subparagraph (C);
       (B) by striking the period at the end of subparagraph (D) 
     and inserting ``; or'';
       (C) by inserting after subparagraph (D) the following new 
     subparagraph:
       ``(E) substantiated adverse information about the officer 
     that is material to the decision to appoint the officer is 
     under review by the Secretary of Defense or the Secretary 
     concerned.''; and
       (D) in the flush matter following subparagraph (E), as 
     inserted by subparagraph (C) of this paragraph--
       (i) by striking ``or'' after ``chapter 60 of this title''; 
     and
       (ii) by inserting after ``brought against him,'' the 
     following: ``or if, after a review of substantiated adverse 
     information about the officer regarding the requirement for 
     exemplary conduct set forth in section 3583, 5947, or 8583 of 
     this title, as applicable, the officer is determined to be 
     among the officers best qualified for promotion,''.
       (3) Additional basis for delay in appointment for lack of 
     qualifications.--Subsection (d)(2) of such section is further 
     amended--
       (A) in the first sentence, by inserting before ``is 
     mentally, physically,'' the following: ``has not met the 
     requirement for exemplary conduct set forth in section 3583, 
     5947, or 8583 of this title, as applicable, or''; and
       (B) in the second sentence, by striking ``If the Secretary 
     concerned later determines that the officer is qualified for 
     promotion to such grade'' and inserting ``If it is later 
     determined by a civilian official of the Department of 
     Defense (not below the level of Secretary of a military 
     department) that the officer is qualified for promotion to 
     such grade and, after a review of adverse information 
     regarding the requirement for exemplary conduct set forth in 
     section 3583, 5947, or 8583 of this title, as applicable, the 
     officer is determined to be among the officers best qualified 
     for promotion to such grade''.
       (b) Officers on Reserve Active-Status List.--
       (1) Secretary of defense regulations for delays of 
     appointment upon promotion.--Subsections (a)(1) and (b) of 
     section 14311 of such title are amended by striking 
     ``Secretary of the military department concerned'' and 
     inserting ``Secretary of Defense''.
       (2) Additional basis for original delay of appointment by 
     reason of investigations and proceedings.--Section 14311(a) 
     of such title is further amended--
       (A) in paragraph (1), by adding at the end the following 
     new subparagraph:
       ``(E) Substantiated adverse information about the officer 
     that is material to the decision to appoint the officer is 
     under review by the Secretary of Defense or the Secretary 
     concerned.''; and
       (B) in paragraph (2)--
       (i) by striking ``or'' after ``show cause for retention,''; 
     and
       (ii) by inserting after ``of the charges,'' the following: 
     ``or if, after a review of substantiated adverse information 
     about the officer regarding the requirement for exemplary 
     conduct set forth in section 3583, 5947, or 8583 of this 
     title, as applicable, the officer is determined to be among 
     the officers best qualified for promotion,''.
       (3) Additional basis for delay in appointment for lack of 
     qualifications.--Section 14311(b) of such section is further 
     amended--
       (A) in the first sentence, by inserting before ``is 
     mentally, physically,'' the following: ``has not met the 
     requirement for exemplary conduct set forth in section 3583, 
     5947, or 8583 of this title, as applicable, or''; and
       (B) in the second sentence, by striking ``If the Secretary 
     concerned later determines that the officer is qualified for 
     promotion to the higher grade'' and inserting ``If it is 
     later determined by a civilian official of the Department of 
     Defense (not below the level of Secretary of a military 
     department) that the officer is qualified for promotion to 
     the higher grade and, after a review of adverse information 
     regarding the requirement for exemplary conduct set forth in 
     section 3583, 5947, or 8583 of this title, as applicable, the 
     officer is determined to be among the officers best qualified 
     for promotion to the higher grade''.
       (c) Deadline for Uniform Regulations on Delay of 
     Promotions.--
       (1) Deadline.--The Secretary of Defense shall prescribe the 
     regulations required by section 624(d) of title 10, United 
     States Code (as amended by subsection (a)(1) of this 
     section), and the regulations required by section 14311 of 
     such title (as amended by subsection (b)(1) of this section) 
     not later than March 1, 2008.
       (2) Savings clause for existing regulations.--Until the 
     Secretary of Defense prescribes regulations pursuant to 
     paragraph (1), regulations prescribed by the Secretaries of 
     the military departments under the sections referred to in 
     paragraph (1) shall remain in effect.
       (d) Technical Amendments to Clarify Date of Establishment 
     of Promotion Lists.--
       (1) Promotion lists for active-duty list officers.--Section 
     624(a)(1) of title 10, United States Code, is amended by 
     adding at the end the following new sentence: ``A promotion 
     list is considered to be established under this section as of 
     the date of the approval of the report of the selection board 
     under the preceding sentence.''.
       (2) Promotion lists for reserve active-status list 
     officers.--Section 14308(a) of title 10, United States Code, 
     is amended by adding at the end the following new sentence: 
     ``A promotion list is considered to be established under this 
     section as of the date of the approval of the report of the 
     selection board under the preceding sentence.''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act 
     and shall apply with respect to officers on promotion lists 
     established on or after the date of the enactment of this 
     Act.

     SEC. 512. CONSIDERATION OF ADVERSE INFORMATION BY SELECTION 
                   BOARDS IN RECOMMENDATIONS ON OFFICERS TO BE 
                   PROMOTED.

       (a) Officers on Active-Duty List.--Section 616(c) of title 
     10, United States Code, is amended--
       (1) by striking ``and'' at the end of paragraph (1);
       (2) by striking the period at the end in paragraph (2) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(3) a majority of the members of the board, after 
     consideration by all members of the board of any adverse 
     information about the officer that is provided to the board 
     under section 615 of this title, finds that the officer is 
     among the officers best qualified for promotion to meet the 
     needs of the armed force concerned consistent with the 
     requirement of exemplary conduct set forth in section 3583, 
     5947, or 8583 of this title, as applicable.''.
       (b) Officers on Reserve-Active Status List.--Section 
     14108(b) of such title is amended--
       (1) in the heading, by striking ``Majority Required.--'' 
     and inserting ``Actions Required.--'';
       (2) by striking ``and'' at the end of paragraph (1);
       (3) by striking the period at the end in paragraph (2) and 
     inserting ``; and''; and
       (4) by adding at the end the following new paragraph:
       ``(3) a majority of the members of the board, after 
     consideration by all members of the board of any adverse 
     information about the officer that is provided to the board 
     under section 14107 of this title, finds that the officer is 
     among the officers best qualified for promotion to meet the 
     needs of the armed force concerned consistent with the 
     requirement of exemplary conduct set forth in section 3583, 
     5947, or 8583 of this title, as applicable.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act 
     and shall apply with respect to selection boards convened on 
     or after that date.

     SEC. 513. EXPANDED AUTHORITY FOR REMOVAL FROM REPORTS OF 
                   SELECTION BOARDS OF OFFICERS RECOMMENDED FOR 
                   PROMOTION TO GRADES BELOW GENERAL AND FLAG 
                   GRADES.

       (a) Officers on Active-Duty List.--Section 618(d) of title 
     10, United States Code, is amended--
       (1) by striking ``The name'' and inserting ``(1) Except as 
     provided in paragraph (2), the name''; and
       (2) by adding at the end the following new paragraph:
       ``(2) In the case of an officer recommended by a selection 
     board for promotion to a grade below brigadier general or 
     rear admiral (lower half), the name of the officer may also 
     be removed from the report of the selection board by the 
     Secretary of Defense or the Deputy Secretary of Defense.''.
       (b) Officers on Reserve-Active Status List.--Section 
     14111(b) of such title is amended--

[[Page 20775]]

       (1) by striking ``The name'' and inserting ``(1) Except as 
     provided in paragraph (2), the name''; and
       (2) by adding at the end the following new paragraph:
       ``(2) In the case of an officer recommended by a selection 
     board for promotion to a grade below brigadier general or 
     rear admiral (lower half), the name of the officer may also 
     be removed from the report of the selection board by the 
     Secretary of Defense or the Deputy Secretary of Defense.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to selection boards convened on or 
     after the date of the enactment of this Act.

     SEC. 514. SPECIAL SELECTION BOARD AUTHORITIES.

       (a) Officers on Active-Duty List.--
       (1) Boards for administrative error available only to 
     officers in or above promotion zone.--Subsection (a)(1) of 
     section 628 of title 10, United States Code, is amended by 
     inserting ``from in or above the promotion zone'' after ``for 
     selection for promotion''.
       (2) Actions treatable as material unfairness.--Subsection 
     (b)(1)(A) of such section is amended by inserting ``in a 
     matter material to the decision of the board'' after 
     ``contrary to law''.
       (b) Officers on Reserve Active-Status List.--Section 
     14502(b)(1)(A) of such title is amended by inserting ``in a 
     matter material to the decision of the board'' after 
     ``contrary to law''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on March 1, 2007, and shall apply with 
     respect to selection boards convened on or after that date.

     SEC. 515. REMOVAL FROM PROMOTION LIST OF OFFICERS NOT 
                   PROMOTED WITHIN 18 MONTHS OF APPROVAL OF LIST 
                   BY THE PRESIDENT.

       (a) Officers on Active-Duty Lists.--
       (1) Clarification of removal due to senate not giving 
     advice and consent.--Subsection (b) of section 629 of title 
     10, United States Code, is amended--
       (A) by inserting ``Removal Due to Senate Not Giving Advice 
     and Consent.--'' after ``(b)'' ; and
       (B) by inserting ``to a grade for which appointment is 
     required by section 624(c) of this title to be made by and 
     with the advice and consent of the Senate'' after ``the 
     President''.
       (2) Removal after 18 months.--Such section is further 
     amended--
       (A) by redesignating subsection (c) as subsection (d); and
       (B) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Removal After 18 Months.--(1) If an officer whose 
     name is on a list of officers approved for promotion under 
     section 624(a) of this title to a grade for which appointment 
     is required by section 624(c) of this title to be made by and 
     with the advice and consent of the Senate is not appointed to 
     that grade under such section during the officer's promotion 
     eligibility period, the officer's name shall be removed from 
     the list unless as of the end of such period the Senate has 
     given its advice and consent to the appointment.
       ``(2) Before the end of the promotion eligibility period 
     with respect to an officer under paragraph (1), the President 
     may extend that period for purposes of paragraph (1) by an 
     additional 12 months.
       ``(3) In this subsection, the term `promotion eligibility 
     period' means, with respect to an officer whose name is on a 
     list of officers approved for promotion under section 624(a) 
     of this title to a grade for which appointment is required by 
     section 624(c) of this title to be made by and with the 
     advice and consent of the Senate, the period beginning on the 
     date on which the list is so approved and ending on the first 
     day of the eighteenth month following the month during which 
     the list is so approved.''.
       (3) Cross-reference amendment.--Paragraph (1) of subsection 
     (d) of such section, as redesignated by paragraph (2)(A) of 
     this subsection, is amended by striking ``or (b)'' and 
     inserting ``(b), or (c)''.
       (4) Stylistic amendments.--Such section is further 
     amended--
       (A) in subsection (a), by inserting ``Removal by 
     President.--'' after ``(a)''; and
       (B) in subsection (d) (as amended by paragraph (3)), by 
     inserting ``Continued Eligibility for Promotion.--'' before 
     ``(1)''.
       (b) Officers on Reserve Active Status List.--
       (1) Removal following return.--Section 14310 of such title 
     is amended--
       (A) by redesignating subsection (c) as subsection (d); and
       (B) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Removal After 18 Months.--(1) If an officer whose 
     name is on a list of officers approved for promotion under 
     section 14308(a) of this title to a grade for which 
     appointment is required by section 12203(a) of this title to 
     be made by and with the advice and consent of the Senate is 
     not appointed to that grade under such section during the 
     officer's promotion eligibility period, the officer's name 
     shall be removed from the list unless as of the end of such 
     period the Senate has given its advice and consent to the 
     appointment.
       ``(2) Before the end of the promotion eligibility period 
     with respect to an officer under paragraph (1), the President 
     may extend that period for purposes of paragraph (1) by an 
     additional 12 months.
       ``(3) In this subsection, the term `promotion eligibility 
     period' means, with respect to an officer whose name is on a 
     list of officers approved for promotion under section 
     14308(a) of this title to a grade for which appointment is 
     required by section 12203(a) of this title to be made by and 
     with the advice and consent of the Senate, the period 
     beginning on the date on which the list is so approved and 
     ending on the first day of the eighteenth month following the 
     month during which the list is so approved.''.
       (2) Cross-reference amendment.--Paragraph (1) of subsection 
     (d) of such section, as redesignated by paragraph (1)(A) of 
     this subsection, is amended by striking ``or (b)'' and 
     inserting ``(b), or (c)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to any promotion list approved by the President 
     after January 1, 2007.

            PART III--JOINT OFFICER MANAGEMENT REQUIREMENTS

     SEC. 516. MODIFICATION AND ENHANCEMENT OF GENERAL AUTHORITIES 
                   ON MANAGEMENT OF OFFICERS WHO ARE JOINT 
                   QUALIFIED.

       (a) Redesignation of Applicability of Policies Toward Joint 
     Qualification.--Subsection (a) of section 661 of title 10, 
     United States Code, is amended by striking the last sentence.
       (b) Revision to General Authorities.--Subsections (b), (c), 
     and (d) of such section are amended to read as follows:
       ``(b) Levels, Designation, and Numbers.--(1)(A) The 
     Secretary of Defense shall establish different levels of 
     joint qualification, as well as the criteria for 
     qualification at each level. Such levels of joint 
     qualification shall be established by the Secretary with the 
     advice of the Chairman of the Joint Chiefs of Staff. Each 
     level shall, as a minimum, have both joint education criteria 
     and joint experience criteria. The purpose of establishing 
     such qualification levels is to ensure a systematic, 
     progressive, career-long development of officers in joint 
     matters and to ensure that officers serving as general and 
     flag officers have the requisite experience and education to 
     be highly proficient in joint matters.
       ``(B) The number of officers who are joint qualified shall 
     be determined by the Secretary of Defense, with the advice of 
     the Chairman of the Joint Chiefs of Staff. Such number shall 
     be large enough to meet the requirements of subsection (d).
       ``(2) Certain officers shall be designated as joint 
     qualified by the Secretary of Defense with the advice of the 
     Chairman of the Joint Chiefs of Staff.
       ``(3) An officer may be designated as joint qualified under 
     paragraph (2) only if the officer--
       ``(A) meets the education and experience criteria of 
     subsection (c);
       ``(B) meets such additional criteria as prescribed by the 
     Secretary of Defense; and
       ``(C) holds the grade of captain or, in the case of the 
     Navy, lieutenant or a higher grade.
       ``(4) The authority of the Secretary of Defense under 
     paragraph (2) to designate officers as joint qualified may be 
     delegated only to the Deputy Secretary of Defense or an Under 
     Secretary of Defense.
       ``(c) Education and Experience Requirements.--(1) An 
     officer may not be designated as joint qualified until the 
     officer--
       ``(A) successfully completes an appropriate program of 
     joint professional military education, as described in 
     subsections (b) and (c) of section 2155 of this title, at a 
     joint professional military education school; and
       ``(B) successfully completes--
       ``(i) a full tour of duty in a joint assignment, as 
     described in section 664(f) of this title; or
       ``(ii) such other assignments and experiences in a manner 
     that demonstrate the officer's mastery of knowledge, skills, 
     and abilities in joint matters, as determined under such 
     regulations and policy as the Secretary of Defense may 
     prescribe.
       ``(2) Subject to paragraphs (3) through (6), the Secretary 
     of Defense may waive the requirement under paragraph (1)(A) 
     that an officer have successfully completed a program of 
     education, as described in subsections (b) and (c) of section 
     2155 of this title.
       ``(3) In the case of an officer in a grade below brigadier 
     general or rear admiral (lower half), a waiver under 
     paragraph (2) may be granted only if--
       ``(A) the officer has completed two full tours of duty in a 
     joint duty assignment, as described in section 664(f) of this 
     title, in such a manner as to demonstrate the officer's 
     mastery of knowledge, skills, and abilities on joint matters; 
     and
       ``(B) the Secretary of Defense determines that the types of 
     joint duty experiences completed by the officer have been of 
     sufficient breadth to prepare the officer adequately for 
     service as a general or flag officer in a joint duty 
     assignment position.
       ``(4) In the case of a general or flag officer, a waiver 
     under paragraph (2) may be granted only--
       ``(A) under unusual circumstances justifying the variation 
     from the education requirement under paragraph (1)(A); and
       ``(B) under circumstances in which the waiver is necessary 
     to meet a critical need of the armed forces, as determined by 
     the Chairman of the Joint Chiefs of Staff.
       ``(5) In the case of officers in grades below brigadier 
     general or rear admiral (lower half), the total number of 
     waivers granted under paragraph (2) for officers in the same 
     pay grade during a fiscal year may not exceed 10 percent of 
     the total number of officers in that pay grade

[[Page 20776]]

     designated as joint qualified during that fiscal year.
       ``(6) There may not be more than 32 general and flag 
     officers on active duty at the same time who, while holding a 
     general or flag officer position, were designated joint 
     qualified (or were selected for the joint specialty before 
     October 1, 2007) and for whom a waiver was granted under 
     paragraph (2).
       ``(d) Number of Joint Duty Assignments.--(1) The Secretary 
     of Defense shall ensure that approximately one-half of the 
     joint duty assignment positions in grades above major or, in 
     the case of the Navy, lieutenant commander are filled at any 
     time by officers who have the appropriate level of joint 
     qualification.
       ``(2) The Secretary of Defense, with the advice of the 
     Chairman of the Joint Chiefs of Staff, shall designate an 
     appropriate number of joint duty assignment positions as 
     critical joint duty assignment positions. A position may be 
     designated as a critical joint duty assignment position only 
     if the duties and responsibilities of the position make it 
     important that the occupant be particularly trained in, and 
     oriented toward, joint matters.
       ``(3)(A) Subject to subparagraph (B), a position designated 
     under paragraph (2) may be held only by an officer who--
       ``(i) was designated as joint qualified in accordance with 
     this chapter; or
       ``(ii) was selected for the joint specialty before October 
     1, 2007.
       ``(B) The Secretary of Defense may waive the requirement in 
     subparagraph (A) with respect to the assignment of an officer 
     to a position designated under paragraph (2). Any such waiver 
     shall be granted on a case-by-case basis. The authority of 
     the Secretary to grant such a waiver may be delegated only to 
     the Chairman of the Joint Chiefs of Staff.
       ``(4) The Secretary of Defense shall ensure that, of those 
     joint duty assignment positions that are filled by general or 
     flag officers, a substantial portion are among those 
     positions that are designated under paragraph (2) as critical 
     joint duty assignment positions.''.
       (c) Career Guidelines.--Subsection (e) of such section is 
     amended by striking ``officers with the joint specialty'' and 
     inserting ``officers to achieve joint qualification and for 
     officers who have been designated as joint qualified''.
       (d) Technical Amendment Regarding Treatment of Certain 
     Service.--Subsection (f) of such section is amended by 
     striking ``section 619(e)(1)'' and inserting ``section 
     619a''.
       (e) Clerical Amendments.--
       (1) Section heading.--The heading of such section is 
     amended to read as follows:

     ``Sec. 661. Management policies for officers who are joint 
       qualified''.

       (2) Table of sections.--The table of sections at the 
     beginning of chapter 38 of such title is amended by striking 
     the item relating to section 661 and inserting the following 
     new item:

``661. Management policies for officers who are joint qualified.''.
       (f) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2007.
       (g) Treatment of Current Joint Specialty Officers.--For the 
     purposes of chapter 38 of title 10, United States Code, and 
     sections 154, 164, and 619a of such title, an officer who, as 
     of September 30, 2007, has been selected for or has the joint 
     specialty under section 661 of such title, as in effect on 
     that date, shall be considered after that date to be an 
     officer designated as joint qualified by the Secretary of 
     Defense under section 661(b)(2) of such title, as amended by 
     this section.
       (h) Implementation Plan.--
       (1) Plan required.--Not later than March 31, 2007, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a plan for the implementation of 
     the joint officer management system, which will take effect 
     on October 1, 2007, as provided in subsection (f), as a 
     result of the amendments made by this section and other 
     provisions of this Act to provisions of chapter 38 of title 
     10, United States Code.
       (2) Elements of plan.--In developing the plan required by 
     this subsection, the Secretary shall pay particular attention 
     to matters related to the transition of officers from the 
     joint specialty system in effect before October 1, 2007, to 
     the joint officer management system in effect after that 
     date. At a minimum, the plan shall include the following:
       (A) The policies and criteria to be used for designating 
     officers as joint qualified on the basis of service performed 
     by such officers before that date, had the amendments made by 
     this section and other provisions of this Act to provisions 
     of chapter 38 of title 10, United States Code, taken effect 
     before the date of the enactment of this Act.
       (B) The policies and criteria prescribed by the Secretary 
     of Defense to be used in making determinations under section 
     661(c)(1)(B)(ii) of such title, as amended by this section.
       (C) The recommendations of the Secretary for any 
     legislative changes that may be necessary to effectuate the 
     joint officer management system.

     SEC. 517. MODIFICATION OF PROMOTION POLICY OBJECTIVES FOR 
                   JOINT OFFICERS.

       Section 662(a) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1), by inserting ``and'' after the 
     semicolon; and
       (2) by striking paragraphs (2) and (3) and inserting the 
     following new paragraph (2):
       ``(2) officers who are serving in or have served in joint 
     duty assignments are expected, as a group, to be promoted to 
     the next higher grade at a rate not less than the rate for 
     all officers of the same armed force in the same grade and 
     competitive category.''.

     SEC. 518. APPLICABILITY OF JOINT DUTY ASSIGNMENT REQUIREMENTS 
                   LIMITED TO GRADUATES OF NATIONAL DEFENSE 
                   UNIVERSITY SCHOOLS.

       (a) Applicability.--Section 663 of title 10, United States 
     Code, is amended--
       (1) in subsection (a), by striking ``a joint professional 
     military education school'' and inserting ``a school within 
     the National Defense University specified in subsection 
     (c)''; and
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``a joint professional 
     military education school'' and inserting ``a school within 
     the National Defense University specified in subsection 
     (c)''; and
       (B) in paragraph (2), by striking ``a joint professional 
     military education school'' and inserting ``a school referred 
     to in paragraph (1)''.
       (b) Covered Schools Within NDU.--Such section is further 
     amended by adding at the end the following new subsection:
       ``(c) Covered Schools Within the National Defense 
     University.--For purposes of this section, a school within 
     the National Defense University specified in this subsection 
     is one of the following:
       ``(1) The National War College.
       ``(2) The Industrial College of the Armed Forces.
       ``(3) The Joint Forces Staff College.''.

     SEC. 519. MODIFICATION OF CERTAIN DEFINITIONS RELATING TO 
                   JOINTNESS.

       (a) Definition of Joint Matters.--Subsection (a) of section 
     668 of title 10, United States Code, is amended to read as 
     follows:
       ``(a) Joint Matters.--(1) In this chapter, the term `joint 
     matters' means matters related to the achievement of unified 
     action by multiple military forces in operations conducted 
     across domains such as land, sea, or air, in space, or in the 
     information environment, including matters relating to--
       ``(A) national military strategy;
       ``(B) strategic planning and contingency planning;
       ``(C) command and control of operations under unified 
     command;
       ``(D) national security planning with other departments and 
     agencies of the United States; and
       ``(E) combined operations with military forces of allied 
     nations.
       ``(2) In the context of joint matters, the term `multiple 
     military forces' refers to forces that involve participants 
     from the armed forces and one or more of the following:
       ``(A) Other departments and agencies of the United States.
       ``(B) The military forces or agencies of other countries.
       ``(C) Non-governmental persons or entities.''.
       (b) Definition of Joint Duty Assignment.--Paragraph (1) of 
     subsection (b) of such section is amended by striking ``That 
     definition shall'' and all that follows and inserting the 
     following: ``That definition--
       ``(A) shall be limited to assignments in which the officer 
     gains significant experience in joint matters; and
       ``(B) shall exclude assignments for joint training and 
     education, except an assignment as an instructor responsible 
     for preparing and presenting courses in areas of the 
     curricula designated in section 2155(c) of this title as part 
     of a program designated by the Secretary of Defense as joint 
     professional military education Phase II.''.
       (c) Definition of Critical Occupational Specialty.--Such 
     section is further amended by adding at the end the following 
     new subsection:
       ``(d) Critical Occupational Specialty.--(1) In this 
     chapter, the term `critical occupational specialty' means a 
     military occupational specialty involving combat operations 
     within the combat arms, in the case of the Army, or the 
     equivalent arms, in the case of the Navy, Air Force, and 
     Marine Corps, that the Secretary of Defense designates as 
     critical.
       ``(2) At a minimum, the Secretary of Defense shall 
     designate as a critical occupational specialty under 
     paragraph (1) any military occupational specialty within a 
     combat arms (or the equivalent) that is experiencing a severe 
     shortage of trained officers in that specialty, as determined 
     by the Secretary.''.
       (d) Conforming Amendments.--
       (1) Initial assignment of officers with critical 
     occupational specialties.--Section 664(c) of such title is 
     amended--
       (A) in the matter before paragraph (1) by striking 
     ``section 661(c)(2)'' and inserting ``section 661(c)(1)(B)'';
       (B) by striking paragraph (1);
       (C) by redesignating paragraph (2) as paragraph (1) and, in 
     such paragraph, by striking ``section 661(c)(2)'' and 
     inserting ``section 668(d)''; and
       (D) by redesignating paragraph (3) as paragraph (2).
       (2) Annual report on number of officers with critical 
     occupational specialties.--Section 667(3) of such title is 
     amended by striking ``section 661(c)(2)'' and inserting 
     ``section 668(d)''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2007.

[[Page 20777]]


                 Subtitle B--Reserve Component Matters

                  PART I--RESERVE COMPONENT MANAGEMENT

     SEC. 521. RECOGNITION OF FORMER REPRESENTATIVE G. V. `SONNY' 
                   MONTGOMERY FOR HIS 30 YEARS OF SERVICE IN THE 
                   HOUSE OF REPRESENTATIVES.

       (a) Findings.--Congress makes the following findings:
       (1) G.V. ``Sonny'' Montgomery was elected to the House of 
     Representatives in 1967 and served the people of east-central 
     Mississippi for 30 years with distinction, dedication, and 
     conviction.
       (2) Sonny Montgomery had a distinguished military career 
     both before and during his service in Congress, serving in 
     World War II and the Korean War, and retired from the 
     Mississippi National Guard with the rank of Major General.
       (3) As a Member of the House of Representatives, Sonny 
     Montgomery served on the Committee on Armed Services and 
     served with great distinction as the Chairman of the 
     Committee on Veterans' Affairs for 13 years from 1981 through 
     1994.
       (4) Representative Montgomery's colleagues knew him as a 
     statesman of the institution and as a tireless advocate for 
     policies that would improve the lives of persons who serve 
     the United States.
       (5) Representative Montgomery was deeply committed to all 
     members of the Armed Forces who served in combat and traveled 
     to Korea and Southeast Asia to recover remains and help 
     determine the fate of POW/MIAs from the Korean and Vietnam 
     Wars.
       (6) Through his years of service on the Committee on Armed 
     Services, Representative Montgomery made great contributions 
     to the capabilities of the National Guard and Reserves, by 
     improving their training and equipment and by better 
     integrating them with the active force.
       (7) Under the revised GI Bill that bears his name and was 
     signed into law in 1984, Representative Montgomery brought 
     educational benefits to millions of veterans, including those 
     members who had served in the National Guard and Reserves, 
     and strengthened the all-volunteer force.
       (8) Representative Montgomery had received many honors and 
     commendations before his passing on May 12, 2006, including 
     most recently and notably the Presidential Medal of Freedom, 
     the highest civilian honor accorded by the United States.
       (b) Recognition.--Congress recognizes and commends former 
     Representative G.V. ``Sonny'' Montgomery for his 30 years of 
     service to benefit the people of Mississippi, members of the 
     Armed Forces and their families, veterans, and the United 
     States.

     SEC. 522. REVISIONS TO RESERVE CALL-UP AUTHORITY.

       (a) Maximum Number of Days.--Subsection (a) of section 
     12304 of title 10, United States Code, is amended by striking 
     ``270 days'' and inserting ``365 days.''
       (b) Fair Treatment.--Such section is further amended--
       (1) by redesignating subsection (i) as subsection (j); and
       (2) by inserting after subsection (h) the following new 
     subsection (i):
       ``(i) Considerations for Involuntary Order to Active 
     Duty.--(1) In determining which members of the Selected 
     Reserve and Individual Ready Reserve will be ordered to duty 
     without their consent under this section, appropriate 
     consideration shall be given to--
       ``(A) the length and nature of previous service, to assure 
     such sharing of exposure to hazards as the national security 
     and military requirements will reasonably allow;
       ``(B) the frequency of assignments during service career;
       ``(C) family responsibilities; and
       ``(D) employment necessary to maintain the national health, 
     safety, or interest.
       ``(2) The Secretary of Defense shall prescribe such 
     policies and procedures as the Secretary considers necessary 
     to carry out this subsection.''.

     SEC. 523. MILITARY RETIREMENT CREDIT FOR CERTAIN SERVICE BY 
                   NATIONAL GUARD MEMBERS PERFORMED WHILE IN A 
                   STATE DUTY STATUS IMMEDIATELY AFTER THE 
                   TERRORIST ATTACKS OF SEPTEMBER 11, 2001.

       Subsection (c) of section 514 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163; 
     119 Stat. 3232) is amended by adding at the end the following 
     new paragraph:
       ``(3) In the State of New Jersey: Bergen, Hudson, Union, 
     and Middlesex.''.

        PART II--AUTHORITIES RELATING TO GUARD AND RESERVE DUTY

     SEC. 524. TITLE 10 DEFINITION OF ACTIVE GUARD AND RESERVE 
                   DUTY.

       Section 101 of title 10, United States Code, is amended--
       (1) by adding at the end of subsection (b) the following 
     new paragraph:
       ``(16) The term `Active Guard and Reserve' means a member 
     of a reserve component who is on active duty pursuant to 
     section 12301(d) of this title or, if a member of the Army 
     National Guard or Air National Guard, is on full-time 
     National Guard duty pursuant to section 502(f) of title 32, 
     and who is performing Active Guard and Reserve duty.''; and
       (2) in paragraph (6)(A) of subsection (d)--
       (A) by striking ``or full-time National Guard duty'' after 
     ``means active duty''; and
       (B) by striking ``, pursuant to an order to active duty or 
     full-time National Guard duty'' and inserting ``pursuant to 
     an order to full-time National Guard duty,''.

     SEC. 525. AUTHORITY FOR ACTIVE GUARD AND RESERVE DUTIES TO 
                   INCLUDE SUPPORT OF OPERATIONAL MISSIONS 
                   ASSIGNED TO THE RESERVE COMPONENTS AND 
                   INSTRUCTION AND TRAINING OF ACTIVE-DUTY 
                   PERSONNEL.

       (a) AGR Duty Under Title 10.--Subsections (a) and (b) of 
     section 12310 of title 10, United States Code, are amended to 
     read as follows:
       ``(a) Authority.--(1) The Secretary concerned may order a 
     member of a reserve component under the Secretary's 
     jurisdiction to active duty pursuant to section 12301(d) of 
     this title to perform Active Guard and Reserve duty 
     organizing, administering, recruiting, instructing, or 
     training the reserve components.
       ``(2) A Reserve ordered to active duty under paragraph (1) 
     shall be ordered in the Reserve's reserve grade. While so 
     serving, the Reserve continues to be eligible for promotion 
     as a Reserve, if otherwise qualified.
       ``(b) Duties.--A Reserve on active duty under subsection 
     (a) may perform the following additional duties to the extent 
     that the performance of those duties does not interfere with 
     the performance of the Reserve's primary Active Guard and 
     Reserve duties described in subsection (a)(1):
       ``(1) Supporting operations or missions assigned in whole 
     or in part to the reserve components.
       ``(2) Supporting operations or missions performed or to be 
     performed by--
       ``(A) a unit composed of elements from more than one 
     component of the same armed force; or
       ``(B) a joint forces unit that includes--
       ``(i) one or more reserve component units; or
       ``(ii) a member of a reserve component whose reserve 
     component assignment is in a position in an element of the 
     joint forces unit.
       ``(3) Advising the Secretary of Defense, the Secretaries of 
     the military departments, the Joint Chiefs of Staff, and the 
     commanders of the combatant commands regarding reserve 
     component matters.
       ``(4) Instructing or training in the United States or the 
     Commonwealth of Puerto Rico or possessions of the United 
     States of--
       ``(A) active-duty members of the armed forces;
       ``(B) members of foreign military forces (under the same 
     authorities and restrictions applicable to active-duty 
     members providing such instruction or training);
       ``(C) Department of Defense contractor personnel; or
       ``(D) Department of Defense civilian employees.''.
       (b) Military Technicians Under Title 10.--Section 10216(a) 
     of such title is amended--
       (1) in paragraph (1)(C), by striking ``administration and'' 
     and inserting ``organizing, administering, instructing, or''; 
     and
       (2) by adding at the end the following new paragraph:
       ``(3) A military technician (dual status) who is employed 
     under section 3101 of title 5 may perform the following 
     additional duties to the extent that the performance of those 
     duties does not interfere with the performance of the primary 
     duties described in paragraph (1):
       ``(A) Supporting operations or missions assigned in whole 
     or in part to the technician's unit.
       ``(B) Supporting operations or missions performed or to be 
     performed by--
       ``(i) a unit composed of elements from more than one 
     component of the technician's armed force; or
       ``(ii) a joint forces unit that includes--
       ``(I) one or more units of the technician's component; or
       ``(II) a member of the technician's component whose reserve 
     component assignment is in a position in an element of the 
     joint forces unit.
       ``(C) Instructing or training in the United States or the 
     Commonwealth of Puerto Rico or possessions of the United 
     States of--
       ``(i) active-duty members of the armed forces;
       ``(ii) members of foreign military forces (under the same 
     authorities and restrictions applicable to active-duty 
     members providing such instruction or training);
       ``(iii) Department of Defense contractor personnel; or
       ``(iv) Department of Defense civilian employees.''.
       (c) National Guard Title 32 Training Duty.--Section 502(f) 
     of title 32, United States Code, title is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (2) by inserting ``(1)'' before ``Under regulations''; and
       (3) by striking the last sentence and inserting the 
     following:
       ``(2) The training or duty ordered to be performed under 
     paragraph (1) may include the following:
       ``(A) Support of operations or missions undertaken by the 
     member's unit at the request of the President or Secretary of 
     Defense.
       ``(B) Support of training operations and training missions 
     assigned in whole or in part to the National Guard by the 
     Secretary concerned, but only to the extent that such 
     training missions and training operations--
       ``(i) are performed in the United States or the 
     Commonwealth of Puerto Rico or possessions of the United 
     States; and
       ``(ii) are only to instruct active duty military, foreign 
     military (under the same authorities and restrictions 
     applicable to active duty troops), Department of Defense 
     contractor personnel, or Department of Defense civilian 
     employees.
       ``(3) Duty without pay shall be considered for all purposes 
     as if it were duty with pay.''.

[[Page 20778]]

       (d) National Guard Technicians Under Title 32.--Section 
     709(a) of title 32, United States Code, is amended--
       (1) in paragraph (1)--
       (A) by striking ``administration and'' and inserting 
     ``organizing, administering, instructing, or''; and
       (B) by striking ``and'' at the end of such paragraph;
       (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) the performance of the following additional duties to 
     the extent that the performance of those duties does not 
     interfere with the performance of the duties described by 
     paragraphs (1) and (2):
       ``(A) Support of operations or missions undertaken by the 
     technician's unit at the request of the President or the 
     Secretary of Defense.
       ``(B) Support of Federal training operations or Federal 
     training missions assigned in whole or in part to the 
     technician's unit.
       ``(C) Instructing or training in the United States or the 
     Commonwealth of Puerto Rico or possessions of the United 
     States of--
       ``(i) active-duty members of the armed forces;
       ``(ii) members of foreign military forces (under the same 
     authorities and restrictions applicable to active-duty 
     members providing such instruction or training);
       ``(iii) Department of Defense contractor personnel; or
       ``(iv) Department of Defense civilian employees.''.

     SEC. 526. GOVERNOR'S AUTHORITY TO ORDER MEMBERS TO ACTIVE 
                   GUARD AND RESERVE DUTY.

       (a) In General.--Chapter 3 of title 32, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 328. Active Guard and Reserve duty: Governor's 
       authority

       ``(a) Authority.--The Governor of a State or the 
     Commonwealth of Puerto Rico, Guam, or the Virgin Islands, or 
     the commanding general of the District of Columbia National 
     Guard, as the case may be, with the consent of the Secretary 
     concerned, may order a member of the National Guard to 
     perform Active Guard and Reserve duty, as defined by section 
     101(d)(6) of title 10, pursuant to section 502(f) of this 
     title.
       ``(b) Duties.--A member of the National Guard performing 
     duty under subsection (a) may perform the additional duties 
     specified in section 502(f)(2) of this title to the extent 
     that the performance of those duties does not interfere with 
     the performance of the member's primary Active Guard and 
     Reserve duties of organizing, administering, recruiting, 
     instructing, and training the reserve components.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``328. Active Guard and Reserve duty: Governor's authority.''.

     SEC. 527. EXPANSION OF OPERATIONS OF CIVIL SUPPORT TEAMS.

       (a) In General.--Section 12310(c) of title 10, United 
     States Code, is amended--
       (1) in paragraph (1)--
       (A) by striking ``involving--'' and inserting ``involving 
     any of the following:''; and
       (B) by striking subparagraphs (A) and (B) and inserting the 
     following:
       ``(A) The use or threatened use of a weapon of mass 
     destruction (as defined in section 12304(i)(2) of this title) 
     in the United States.
       ``(B) A terrorist attack or threatened terrorist attack in 
     the United States that results, or could result, in 
     catastrophic loss of life or property.
       ``(C) The intentional or unintentional release of nuclear, 
     biological, radiological, or toxic or poisonous chemical 
     materials in the United States that results, or could result, 
     in catastrophic loss of life or property.
       ``(D) A natural or manmade disaster in the United States 
     that results in, or could result in, catastrophic loss of 
     life or property.'';
       (2) by amending paragraph (3) to read as follows:
       ``(3) A Reserve may perform duty described in paragraph (1) 
     only while assigned to a reserve component weapons of mass 
     destruction civil support team.''; and
       (3) by adding at the end the following new paragraph:
       ``(7) In this subsection, the term `United States' includes 
     the Commonwealth of Puerto Rico, Guam, and the Virgin 
     Islands.''.
       (b) Technical and Conforming Amendments.--Such section is 
     further amended--
       (1) by striking the subsection heading and inserting 
     ``Operations Relating to Defense Against Weapons of Mass 
     Destruction and Terrorist Attacks.--'';
       (2) in paragraph (5), by striking ``rapid assessment 
     element team'' and inserting ``weapons of mass destruction 
     civil support team''; and
       (3) in paragraph (6)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``paragraph (3)'' and inserting ``paragraphs (1) and (3)''; 
     and
       (B) in subparagraph (B), by striking ``paragraph (3)(B)'' 
     and inserting ``paragraph (3)''.

     SEC. 528. MODIFICATION OF AUTHORITIES RELATING TO THE 
                   COMMISSION ON THE NATIONAL GUARD AND RESERVES.

       (a) Annuities and Pay of Members on Federal Reemployment.--
     Subsection (e) of section 513 of the Ronald W. Reagan 
     National Defense Authorization Act for Fiscal Year 2005 
     (Public Law 108-375; 118 Stat. 1882), as amended by section 
     516 of the National Defense Authorization Act for Fiscal Year 
     2006 (Public Law 109-163; 119 Stat. 3237), is further amended 
     by adding at the end the following new paragraph:
       ``(3) If warranted by circumstances described in 
     subparagraph (A) or (B) of section 8344(i)(1) of title 5, 
     United States Code, or by circumstances described in 
     subparagraph (A) or (B) of section 8468(f)(1) of such title, 
     as applicable, the chairman of the Commission may exercise, 
     with respect to the members of the Commission, the same 
     waiver authority as would be available to the Director of the 
     Office of Personnel Management under such section.''.
       (b) Final Report.--Subsection (f)(2) of such section 513 
     (118 Stat. 1882) is amended by striking ``Not later than one 
     year after the first meeting of the Commission'' and 
     inserting ``Not later than January 31, 2008''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as of October 28, 2004, as if included in 
     the enactment of the Ronald W. Reagan National Defense 
     Authorization Act for Fiscal Year 2005. The amendment made by 
     subsection (a) shall apply to members of the Commission on 
     the National Guard and Reserves appointed on or after that 
     date.

     SEC. 529. ADDITIONAL MATTERS TO BE REVIEWED BY COMMISSION ON 
                   THE NATIONAL GUARD AND RESERVES.

       (a) Additional Matters to Be Reviewed by Commission.--The 
     Commission on the National Guard and Reserves shall include 
     among the matters it studies (in addition to the matters 
     specified in subsection (c) of the commission charter) each 
     of the following:
       (1) National guard bureau enhancement proposals.--The 
     advisability and feasibility of implementing the provisions 
     of S. 2658 and H.R. 5200 of the 109th Congress, as introduced 
     in the Senate and the House of Representatives, respectively, 
     on April 26, 2006.
       (2) Chief of national guard bureau.--As an alternative to 
     implementation of the provisions of the bills specified in 
     paragraph (1) that provide for the Chief of the National 
     Guard Bureau to be a member of the Joint Chiefs of Staff and 
     to hold the grade of general, the advisability and 
     feasibility of providing for the Chief of the National Guard 
     Bureau to hold the grade of general in the performance of the 
     current duties of that office.
       (3) National guard officers authority to command.--The 
     advisability and feasibility of implementing the provisions 
     of section 544 of H.R. 5122 of the 109th Congress, as passed 
     the House of Representatives on May 11, 2006.
       (4) National guard equipment and funding requirements.--The 
     adequacy of the Department of Defense processes for defining 
     the equipment and funding necessary for the National Guard to 
     conduct both its responsibilities under title 10, United 
     States Code, and its responsibilities under title 32, United 
     States Code, including homeland defense and related homeland 
     missions, including as part of such study--
       (A) consideration of the extent to which those processes 
     should be developed taking into consideration the views of 
     the Chief of the National Guard Bureau, as well as the views 
     of the 54 Adjutant Generals and the views of the Chiefs of 
     the Army National Guard and the Air Guard; and
       (B) whether there should be an improved means by which 
     National Guard equipment requirements are validated by the 
     Joint Chiefs of Staff and are considered for funding by the 
     Secretaries of the Army and Air Force.
       (b) Priority Review and Report.--
       (1) Priority review.--The Commission on the National Guard 
     and Reserves shall carry out its study of the matters 
     specified in paragraphs (1), (2), and (3) of subsection (a) 
     on a priority basis, with a higher priority for matters under 
     those paragraphs relating to the grade and functions of the 
     Chief of the National Guard Bureau.
       (2) Report.--In addition to the reports required under 
     subsection (f) of the commission charter, the Commission 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives an interim report, not later than March 1, 
     2007, specifically on the matters covered by paragraph (1). 
     In such report, the Commission shall set forth its findings 
     and any recommendations it considers appropriate with respect 
     to those matters.
       (c) Commission Charter Defined.--For purposes of this 
     section, the term ``commission charter'' means section 513 of 
     the Ronald W. Reagan National Defense Authorization Act for 
     Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1880).
                   Subtitle C--Education and Training

                       PART I--SERVICE ACADEMIES

     SEC. 531. EXPANSION OF SERVICE ACADEMY EXCHANGE PROGRAMS WITH 
                   FOREIGN MILITARY ACADEMIES.

       (a) United States Military Academy.--
       (1) Number of participants in exchange program.--Subsection 
     (b) of section 4345 of title 10, United States Code, is 
     amended by striking ``24'' and inserting ``100''.
       (2) Costs and expenses.--Subsection (c) of such section is 
     amended--
       (A) by striking ``for the Academy'' in paragraph (3) and 
     all that follows in that paragraph and inserting ``for the 
     Academy and such additional funds as may be available to the 
     Academy from a source other than appropriated funds to 
     support cultural immersion, regional awareness, or foreign 
     language training activities in connection with the exchange 
     program.''; and
       (B) by adding at the end the following new paragraph:
       ``(4) Expenditures in support of the exchange program from 
     funds appropriated for the Academy may not exceed $1,000,000 
     during any fiscal year.''.

[[Page 20779]]

       (b) United States Naval Academy.--
       (1) Number of participants in exchange program.--Subsection 
     (b) of section 6957a of title 10, United States Code, is 
     amended by striking ``24'' and inserting ``100''.
       (2) Costs and expenses.--Subsection (c) of such section is 
     amended--
       (A) by striking ``for the Academy'' in paragraph (3) and 
     all that follows in that paragraph and inserting ``for the 
     Academy and such additional funds as may be available to the 
     Academy from a source other than appropriated funds to 
     support cultural immersion, regional awareness, or foreign 
     language training activities in connection with the exchange 
     program.''; and
       (B) by adding at the end the following new paragraph:
       ``(4) Expenditures in support of the exchange program from 
     funds appropriated for the Naval Academy may not exceed 
     $1,000,000 during any fiscal year.''.
       (c) United States Air Force Academy.--
       (1) Number of participants in exchange program.--Subsection 
     (b) of section 9345 of title 10, United States Code, is 
     amended by striking ``24'' and inserting ``100''.
       (2) Costs and expenses.--Subsection (c) of such section is 
     amended--
       (A) by striking ``for the Academy'' in paragraph (3) and 
     all that follows in that paragraph and inserting ``for the 
     Academy and such additional funds as may be available to the 
     Academy from a source other than appropriated funds to 
     support cultural immersion, regional awareness, or foreign 
     language training activities in connection with the exchange 
     program.''; and
       (B) by adding at the end the following new paragraph:
       ``(4) Expenditures in support of the exchange program from 
     funds appropriated for the Academy may not exceed $1,000,000 
     during any fiscal year.''.
       (d) Effective Dates.--The amendments made by subsection (a) 
     shall take effect on the date of the enactment of this Act. 
     The amendments made by subsections (b) and (c) shall take 
     effect on October 1, 2008.

     SEC. 532. REVISION AND CLARIFICATION OF REQUIREMENTS WITH 
                   RESPECT TO SURVEYS AND REPORTS CONCERNING 
                   SEXUAL HARASSMENT AND SEXUAL VIOLENCE AT THE 
                   SERVICE ACADEMIES.

       (a) Codification and Revision to Existing Requirement for 
     Service Academy Policy on Sexual Harassment and Sexual 
     Violence.--
       (1) United states military academy.--Chapter 403 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 4361. Policy on sexual harassment and sexual violence

       ``(a) Required Policy.--Under guidance prescribed by the 
     Secretary of Defense, the Secretary of the Army shall direct 
     the Superintendent of the Academy to prescribe a policy on 
     sexual harassment and sexual violence applicable to the 
     cadets and other personnel of the Academy.
       ``(b) Matters to Be Specified in Policy.--The policy on 
     sexual harassment and sexual violence prescribed under this 
     section shall include specification of the following:
       ``(1) Programs to promote awareness of the incidence of 
     rape, acquaintance rape, and other sexual offenses of a 
     criminal nature that involve cadets or other Academy 
     personnel.
       ``(2) Procedures that a cadet should follow in the case of 
     an occurrence of sexual harassment or sexual violence, 
     including--
       ``(A) if the cadet chooses to report an occurrence of 
     sexual harassment or sexual violence, a specification of the 
     person or persons to whom the alleged offense should be 
     reported and the options for confidential reporting;
       ``(B) a specification of any other person whom the victim 
     should contact; and
       ``(C) procedures on the preservation of evidence 
     potentially necessary for proof of criminal sexual assault.
       ``(3) Procedures for disciplinary action in cases of 
     alleged criminal sexual assault involving a cadet or other 
     Academy personnel.
       ``(4) Any other sanction authorized to be imposed in a 
     substantiated case of sexual harassment or sexual violence 
     involving a cadet or other Academy personnel in rape, 
     acquaintance rape, or any other criminal sexual offense, 
     whether forcible or nonforcible.
       ``(5) Required training on the policy for all cadets and 
     other Academy personnel, including the specific training 
     required for personnel who process allegations of sexual 
     harassment or sexual violence involving Academy personnel.
       ``(c) Annual Assessment.--(1) The Secretary of Defense, 
     through the Secretary of the Army, shall direct the 
     Superintendent to conduct at the Academy during each Academy 
     program year an assessment, to be administered by the 
     Department of Defense, to determine the effectiveness of the 
     policies, training, and procedures of the Academy with 
     respect to sexual harassment and sexual violence involving 
     Academy personnel.
       ``(2) For the assessment at the Academy under paragraph (1) 
     with respect to an Academy program year that begins in an 
     odd-numbered calendar year, the Secretary of the Army shall 
     conduct a survey, to be administered by the Department of 
     Defense, of Academy personnel--
       ``(A) to measure--
       ``(i) the incidence, during that program year, of sexual 
     harassment and sexual violence events, on or off the Academy 
     reservation, that have been reported to officials of the 
     Academy; and
       ``(ii) the incidence, during that program year, of sexual 
     harassment and sexual violence events, on or off the Academy 
     reservation, that have not been reported to officials of the 
     Academy; and
       ``(B) to assess the perceptions of Academy personnel of--
       ``(i) the policies, training, and procedures on sexual 
     harassment and sexual violence involving Academy personnel;
       ``(ii) the enforcement of such policies;
       ``(iii) the incidence of sexual harassment and sexual 
     violence involving Academy personnel; and
       ``(iv) any other issues relating to sexual harassment and 
     sexual violence involving Academy personnel.
       ``(d) Annual Report.--(1) The Secretary of the Army shall 
     direct the Superintendent of the Academy to submit to the 
     Secretary a report on sexual harassment and sexual violence 
     involving cadets or other personnel at the Academy for each 
     Academy program year.
       ``(2) Each report under paragraph (1) shall include, for 
     the Academy program year covered by the report, the 
     following:
       ``(A) The number of sexual assaults, rapes, and other 
     sexual offenses involving cadets or other Academy personnel 
     that have been reported to Academy officials during the 
     program year and, of those reported cases, the number that 
     have been substantiated.
       ``(B) The policies, procedures, and processes implemented 
     by the Secretary of the Army and the leadership of the 
     Academy in response to sexual harassment and sexual violence 
     involving cadets or other Academy personnel during the 
     program year.
       ``(C) A plan for the actions that are to be taken in the 
     following Academy program year regarding prevention of and 
     response to sexual harassment and sexual violence involving 
     cadets or other Academy personnel.
       ``(3) Each report under paragraph (1) for an Academy 
     program year that begins in an odd-numbered calendar year 
     shall include the results of the survey conducted in that 
     program year under subsection (c)(2).
       ``(4)(A) The Secretary of the Army shall transmit to the 
     Secretary of Defense, and to the Board of Visitors of the 
     Academy, each report received by the Secretary under this 
     subsection, together with the Secretary's comments on the 
     report.
       ``(B) The Secretary of Defense shall transmit each such 
     report, together with the Secretary's comments on the report, 
     to the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of 
     Representatives.''.
       (2) United states naval academy.--Chapter 603 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 6980. Policy on sexual harassment and sexual violence

       ``(a) Required Policy.--Under guidance prescribed by the 
     Secretary of Defense, the Secretary of the Navy shall direct 
     the Superintendent of the Naval Academy to prescribe a policy 
     on sexual harassment and sexual violence applicable to the 
     midshipmen and other personnel of the Naval Academy.
       ``(b) Matters to Be Specified in Policy.--The policy on 
     sexual harassment and sexual violence prescribed under this 
     section shall include specification of the following:
       ``(1) Programs to promote awareness of the incidence of 
     rape, acquaintance rape, and other sexual offenses of a 
     criminal nature that involve midshipmen or other Academy 
     personnel.
       ``(2) Procedures that a midshipman should follow in the 
     case of an occurrence of sexual harassment or sexual 
     violence, including--
       ``(A) if the midshipman chooses to report an occurrence of 
     sexual harassment or sexual violence, a specification of the 
     person or persons to whom the alleged offense should be 
     reported and the options for confidential reporting;
       ``(B) a specification of any other person whom the victim 
     should contact; and
       ``(C) procedures on the preservation of evidence 
     potentially necessary for proof of criminal sexual assault.
       ``(3) Procedures for disciplinary action in cases of 
     alleged criminal sexual assault involving a midshipman or 
     other Academy personnel.
       ``(4) Any other sanction authorized to be imposed in a 
     substantiated case of sexual harassment or sexual violence 
     involving a midshipman or other Academy personnel in rape, 
     acquaintance rape, or any other criminal sexual offense, 
     whether forcible or nonforcible.
       ``(5) Required training on the policy for all midshipmen 
     and other Academy personnel, including the specific training 
     required for personnel who process allegations of sexual 
     harassment or sexual violence involving Academy personnel.
       ``(c) Annual Assessment.--(1) The Secretary of Defense, 
     through the Secretary of the Navy, shall direct the 
     Superintendent to conduct at the Academy during each Academy 
     program year an assessment, to be administered by the 
     Department of Defense, to determine the effectiveness of the 
     policies, training, and procedures of the Academy with 
     respect to sexual harassment and sexual violence involving 
     Academy personnel.
       ``(2) For the assessment at the Academy under paragraph (1) 
     with respect to an Academy program year that begins in an 
     odd-numbered calendar year, the Secretary of the Navy shall 
     conduct a survey, to be administered by the Department of 
     Defense, of Academy personnel--
       ``(A) to measure--
       ``(i) the incidence, during that program year, of sexual 
     harassment and sexual violence

[[Page 20780]]

     events, on or off the Academy reservation, that have been 
     reported to officials of the Academy; and
       ``(ii) the incidence, during that program year, of sexual 
     harassment and sexual violence events, on or off the Academy 
     reservation, that have not been reported to officials of the 
     Academy; and
       ``(B) to assess the perceptions of Academy personnel of--
       ``(i) the policies, training, and procedures on sexual 
     harassment and sexual violence involving Academy personnel;
       ``(ii) the enforcement of such policies;
       ``(iii) the incidence of sexual harassment and sexual 
     violence involving Academy personnel; and
       ``(iv) any other issues relating to sexual harassment and 
     sexual violence involving Academy personnel.
       ``(d) Annual Report.--(1) The Secretary of the Navy shall 
     direct the Superintendent of the Naval Academy to submit to 
     the Secretary a report on sexual harassment and sexual 
     violence involving midshipmen or other personnel at the 
     Academy for each Academy program year.
       ``(2) Each report under paragraph (1) shall include, for 
     the Academy program year covered by the report, the 
     following:
       ``(A) The number of sexual assaults, rapes, and other 
     sexual offenses involving midshipmen or other Academy 
     personnel that have been reported to Naval Academy officials 
     during the program year and, of those reported cases, the 
     number that have been substantiated.
       ``(B) The policies, procedures, and processes implemented 
     by the Secretary of the Navy and the leadership of the Naval 
     Academy in response to sexual harassment and sexual violence 
     involving midshipmen or other Academy personnel during the 
     program year.
       ``(C) A plan for the actions that are to be taken in the 
     following Academy program year regarding prevention of and 
     response to sexual harassment and sexual violence involving 
     midshipmen or other Academy personnel.
       ``(3) Each report under paragraph (1) for an Academy 
     program year that begins in an odd-numbered calendar year 
     shall include the results of the survey conducted in that 
     program year under subsection (c)(2).
       ``(4)(A) The Secretary of the Navy shall transmit to the 
     Secretary of Defense, and to the Board of Visitors of the 
     Naval Academy, each report received by the Secretary under 
     this subsection, together with the Secretary's comments on 
     the report.
       ``(B) The Secretary of Defense shall transmit each such 
     report, together with the Secretary's comments on the report, 
     to the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of 
     Representatives.''.
       (3) United states air force academy.--Chapter 903 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 9361. Policy on sexual harassment and sexual violence

       ``(a) Required Policy.--Under guidance prescribed by the 
     Secretary of Defense, the Secretary of the Air Force shall 
     direct the Superintendent of the Academy to prescribe a 
     policy on sexual harassment and sexual violence applicable to 
     the cadets and other personnel of the Academy.
       ``(b) Matters to Be Specified in Policy.--The policy on 
     sexual harassment and sexual violence prescribed under this 
     section shall include specification of the following:
       ``(1) Programs to promote awareness of the incidence of 
     rape, acquaintance rape, and other sexual offenses of a 
     criminal nature that involve cadets or other Academy 
     personnel.
       ``(2) Procedures that a cadet should follow in the case of 
     an occurrence of sexual harassment or sexual violence, 
     including--
       ``(A) if the cadet chooses to report an occurrence of 
     sexual harassment or sexual violence, a specification of the 
     person or persons to whom the alleged offense should be 
     reported and the options for confidential reporting;
       ``(B) a specification of any other person whom the victim 
     should contact; and
       ``(C) procedures on the preservation of evidence 
     potentially necessary for proof of criminal sexual assault.
       ``(3) Procedures for disciplinary action in cases of 
     alleged criminal sexual assault involving a cadet or other 
     Academy personnel.
       ``(4) Any other sanction authorized to be imposed in a 
     substantiated case of sexual harassment or sexual violence 
     involving a cadet or other Academy personnel in rape, 
     acquaintance rape, or any other criminal sexual offense, 
     whether forcible or nonforcible.
       ``(5) Required training on the policy for all cadets and 
     other Academy personnel, including the specific training 
     required for personnel who process allegations of sexual 
     harassment or sexual violence involving Academy personnel.
       ``(c) Annual Assessment.--(1) The Secretary of Defense, 
     through the Secretary of the Air Force, shall direct the 
     Superintendent to conduct at the Academy during each Academy 
     program year an assessment, to be administered by the 
     Department of Defense, to determine the effectiveness of the 
     policies, training, and procedures of the Academy with 
     respect to sexual harassment and sexual violence involving 
     Academy personnel.
       ``(2) For the assessment at the Academy under paragraph (1) 
     with respect to an Academy program year that begins in an 
     odd-numbered calendar year, the Secretary of the Air Force 
     shall conduct a survey, to be administered by the Department 
     of Defense, of Academy personnel--
       ``(A) to measure--
       ``(i) the incidence, during that program year, of sexual 
     harassment and sexual violence events, on or off the Academy 
     reservation, that have been reported to officials of the 
     Academy; and
       ``(ii) the incidence, during that program year, of sexual 
     harassment and sexual violence events, on or off the Academy 
     reservation, that have not been reported to officials of the 
     Academy; and
       ``(B) to assess the perceptions of Academy personnel of--
       ``(i) the policies, training, and procedures on sexual 
     harassment and sexual violence involving Academy personnel;
       ``(ii) the enforcement of such policies;
       ``(iii) the incidence of sexual harassment and sexual 
     violence involving Academy personnel; and
       ``(iv) any other issues relating to sexual harassment and 
     sexual violence involving Academy personnel.
       ``(d) Annual Report.--(1) The Secretary of the Air Force 
     shall direct the Superintendent of the Academy to submit to 
     the Secretary a report on sexual harassment and sexual 
     violence involving cadets or other personnel at the Academy 
     for each Academy program year.
       ``(2) Each report under paragraph (1) shall include, for 
     the Academy program year covered by the report, the 
     following:
       ``(A) The number of sexual assaults, rapes, and other 
     sexual offenses involving cadets or other Academy personnel 
     that have been reported to Academy officials during the 
     program year and, of those reported cases, the number that 
     have been substantiated.
       ``(B) The policies, procedures, and processes implemented 
     by the Secretary of the Air Force and the leadership of the 
     Academy in response to sexual harassment and sexual violence 
     involving cadets or other Academy personnel during the 
     program year.
       ``(C) A plan for the actions that are to be taken in the 
     following Academy program year regarding prevention of and 
     response to sexual harassment and sexual violence involving 
     cadets or other Academy personnel.
       ``(3) Each report under paragraph (1) for an Academy 
     program year that begins in an odd-numbered calendar year 
     shall include the results of the survey conducted in that 
     program year under subsection (c)(2).
       ``(4)(A) The Secretary of the Air Force shall transmit to 
     the Secretary of Defense, and to the Board of Visitors of the 
     Academy, each report received by the Secretary under this 
     subsection, together with the Secretary's comments on the 
     report.
       ``(B) The Secretary of Defense shall transmit each such 
     report, together with the Secretary's comments on the report, 
     to the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of 
     Representatives.''.
       (b) Further Information From Cadets and Midshipmen at the 
     Service Academies on Sexual Assault and Sexual Harassment 
     Issues.--
       (1) Use of focus groups for years when survey not 
     required.--In any year in which the Secretary of a military 
     department is not required by law to conduct a survey at the 
     service academy under the Secretary's jurisdiction on matters 
     relating to sexual assault and sexual harassment issues at 
     that Academy, the Secretary shall provide for focus groups to 
     be conducted at that Academy for the purposes of ascertaining 
     information relating to sexual assault and sexual harassment 
     issues at that Academy.
       (2) Inclusion in report.--Information ascertained from a 
     focus group conducted pursuant to paragraph (1) shall be 
     included in the Secretary's annual report to Congress on 
     sexual harassment and sexual violence at the service 
     academies.
       (3) Service academies.--For purposes of this subsection, 
     the term ``service academy'' means the following:
       (A) The United States Military Academy.
       (B) The United States Naval Academy.
       (C) The United States Air Force Academy.
       (c) Repeal of Prior Law.--Section 527 of the National 
     Defense Authorization Act for Fiscal Year 2004 (Public Law 
     108-136; 117 Stat. 1469; 10 U.S.C. 4331 note) is repealed.
       (d) Clerical Amendments.--
       (1) The table of sections at the beginning of chapter 403 
     of title 10, United States Code, is amended by adding at the 
     end the following new item:

``4361.  Policy on sexual harassment and sexual violence.''.

       (2) The table of sections at the beginning of chapter 603 
     of such title is amended by adding at the end the following 
     new item:

``6980.  Policy on sexual harassment and sexual violence.''.

       (3) The table of sections at the beginning of chapter 903 
     of such title is amended by adding at the end the following 
     new item:

``9361.  Policy on sexual harassment and sexual violence.''.

     SEC. 533. DEPARTMENT OF DEFENSE POLICY ON SERVICE ACADEMY AND 
                   ROTC GRADUATES SEEKING TO PARTICIPATE IN 
                   PROFESSIONAL SPORTS BEFORE COMPLETION OF THEIR 
                   ACTIVE-DUTY SERVICE OBLIGATIONS.

       (a) Policy Required.--
       (1) In general.--Not later than July 1, 2007, the Secretary 
     of Defense shall prescribe the policy of the Department of 
     Defense on--

[[Page 20781]]

       (A) whether to authorize graduates of the service academies 
     and the Reserve Officers' Training Corps to participate in 
     professional sports before the completion of their 
     obligations for service on active duty as commissioned 
     officers; and
       (B) if so, the obligations for service on active duty as 
     commissioned officers of such graduates who participate in 
     professional sports before the satisfaction of the 
     obligations referred to in subparagraph (A).
       (2) Review of current policies.--In prescribing the policy, 
     the Secretary shall review current policies, practices, and 
     regulations of the military departments on the obligations 
     for service on active duty as commissioned officers of 
     graduates of the service academies and the Reserve Officers' 
     Training Corps, including policies on authorized leaves of 
     absence and policies under excess leave programs.
       (3) Considerations.--In prescribing the policy, the 
     Secretary shall take into account the following:
       (A) The compatibility of participation in professional 
     sports (including training for professional sports) with 
     service on active duty in the Armed Forces or as a member of 
     a reserve component of the Armed Forces.
       (B) The benefits for the Armed Forces of waiving 
     obligations for service on active duty for cadets, 
     midshipmen, and commissioned officers in order to permit such 
     individuals to participate in professional sports.
       (C) The manner in which the military departments have 
     resolved issues relating to the participation of personnel in 
     professional sports, including the extent of and any reasons 
     for, differences in the resolution of such issues by such 
     departments.
       (D) The recoupment of the costs of education provided by 
     the service academies or under the Reserve Officers' Training 
     Corps program if graduates of the service academies or the 
     Reserve Officers' Training Corps, as the case may be, do not 
     complete the period of obligated service to which they have 
     agreed by reason of participation in professional sports.
       (E) Any other matters that the Secretary considers 
     appropriate.
       (b) Elements of Policy.--The policy prescribed under 
     subsection (a) shall address the following matters:
       (1) The eligibility of graduates of the service academies 
     and the Reserve Officers' Training Corps for a reduction in 
     the obligated length of service on active duty as a 
     commissioned officer otherwise required of such graduates on 
     the basis of their participation in professional sports.
       (2) Criteria for the treatment of an individual as a 
     participant or potential participant in professional sports.
       (3) The effect on obligations for service on active duty as 
     a commissioned officer of any unsatisfied obligations under 
     prior enlistment contracts or other forms of advanced 
     education assistance.
       (4) Any authorized variations in the policy that are 
     warranted by the distinctive requirements of a particular 
     Armed Force.
       (5) The eligibility of individuals for medical discharge or 
     disability benefits as a result of injuries incurred while 
     participating in professional sports.
       (6) A prospective effective date for the policy and for the 
     application of the policy to individuals serving on such 
     effective date as a commissioned officer, cadet, or 
     midshipman.
       (c) Application of Policy to Armed Forces.--Not later than 
     December 1, 2007, the Secretary of each military department 
     shall prescribe regulations, or modify current regulations, 
     in order to implement the policy prescribed by the Secretary 
     of Defense under subsection (a) with respect to the Armed 
     Forces under the jurisdiction of such Secretary.

         PART II--SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAMS

     SEC. 535. AUTHORITY TO PERMIT MEMBERS WHO PARTICIPATE IN THE 
                   GUARANTEED RESERVE FORCES DUTY SCHOLARSHIP 
                   PROGRAM TO PARTICIPATE IN THE HEALTH 
                   PROFESSIONS SCHOLARSHIP PROGRAM AND SERVE ON 
                   ACTIVE DUTY.

       Paragraph (3) of section 2107a(b) of title 10, United 
     States Code, is amended--
       (1) by inserting ``or a cadet or former cadet under this 
     section who signs an agreement under section 2122 of this 
     title,'' after ``military junior college,''; and
       (2) by inserting ``, or former cadet,'' after ``consent of 
     the cadet'' and after ``submitted by the cadet''.

     SEC. 536. DETAIL OF COMMISSIONED OFFICERS AS STUDENTS AT 
                   MEDICAL SCHOOLS.

       (a) In General.--Chapter 101 of title 10, United States 
     Code, is amended by inserting after section 2004 the 
     following new section:

     ``Sec. 2004a. Detail of commissioned officers as students at 
       medical schools

       ``(a) Detail Authorized.--The Secretary of each military 
     department may detail commissioned officers of the armed 
     forces as students at accredited medical schools or schools 
     of osteopathy located in the United States for a period of 
     training leading to the degree of doctor of medicine. No more 
     than 25 officers from each military department may commence 
     such training in any single fiscal year.
       ``(b) Eligibility for Detail.--To be eligible for detail 
     under subsection (a), an officer must be a citizen of the 
     United States and must--
       ``(1) have served on active duty for a period of not less 
     than two years nor more than six years and be in the pay 
     grade 0-3 or below as of the time the training is to begin; 
     and
       ``(2) sign an agreement that unless sooner separated the 
     officer will--
       ``(A) complete the educational course of medical training;
       ``(B) accept transfer or detail as a medical officer within 
     the military department concerned when the officer's training 
     is completed; and
       ``(C) agree to serve, following completion of the officer's 
     training, on active duty (or on active duty and in the 
     Selected Reserve) for a period as specified pursuant to 
     subsection (c).
       ``(c) Service Obligation.--An agreement under subsection 
     (c) shall provide that the officer shall serve on active duty 
     for two years for each year or part thereof of the officer's 
     medical training under subsection (a), except that the 
     agreement may authorize the officer to serve a portion of the 
     officer's service obligation on active duty and to complete 
     the service obligation that remains upon separation from 
     active duty in the Selected Reserve, in which case the 
     officer shall serve three years in the Selected Reserve for 
     each year or part thereof of the officer's medical training 
     under subsection (a) for any service obligation that was not 
     completed before separation from active duty.
       ``(d) Selection of Officers for Detail.--Officers detailed 
     for medical training under subsection (a) shall be selected 
     on a competitive basis by the Secretary of the military 
     department concerned.
       ``(e) Relation of Service Obligations to Other Service 
     Obligations.--Any service obligation incurred by an officer 
     under an agreement entered into under subsection (b) shall be 
     in addition to any service obligation incurred by the officer 
     under any other provision of law or agreement.
       ``(f) Expenses.--Expenses incident to the detail of 
     officers under this section shall be paid from any funds 
     appropriated for the military department concerned.
       ``(g) Failure to Complete Program.--(1) An officer who is 
     dropped from a program of medical training to which detailed 
     under subsection (a) for deficiency in conduct or studies, or 
     for other reasons, may be required to perform active duty in 
     an appropriate military capacity in accordance with the 
     active duty obligation imposed on the officer under 
     regulations issued by the Secretary of Defense for purposes 
     of this section.
       ``(2) In no case shall an officer be required to serve on 
     active duty under paragraph (1) for any period in excess of 
     one year for each year or part thereof the officer 
     participated in the program.
       ``(h) Limitation on Details.--No agreement detailing an 
     officer of the armed forces to an accredited medical school 
     or school of osteopathy may be entered into during any period 
     in which the President is authorized by law to induct persons 
     into the armed forces involuntarily. Nothing in this 
     subsection shall affect any agreement entered into during any 
     period when the President is not authorized by law to so 
     induct persons into the armed forces''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2004 the following new item:
``2004a. Detail of commissioned officers as students at medical 
              schools.''.

     SEC. 537. INCREASE IN MAXIMUM AMOUNT OF REPAYMENT UNDER 
                   EDUCATION LOAN REPAYMENT FOR OFFICERS IN 
                   SPECIFIED HEALTH PROFESSIONS.

       (a) Increase in Maximum Amount.--Section 2173(e)(2) of 
     title 10, United States Code, is amended by striking 
     ``$22,000'' and inserting ``$60,000''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     take effect on October 1, 2006, and shall apply to agreements 
     entered into or revised under section 2173 of title 10, 
     United States Code, on or after that date.
       (2) Prohibition on adjustment.--The adjustment required by 
     the second sentence of section 2173(e)(2) of title 10, United 
     States Code, to be made on October 1, 2006, shall not be 
     made.

     SEC. 538. HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL 
                   ASSISTANCE PROGRAM FOR ACTIVE SERVICE.

       (a) Maximum Stipend Amount.--Section 2121(d) of title 10, 
     United States Code, is amended--
       (1) by striking ``at the rate of $579 per month'' and 
     inserting ``at a monthly rate established by the Secretary of 
     Defense, but not to exceed a total of $30,000 per year''; and
       (2) by striking ``That rate'' and inserting ``The maximum 
     annual amount of the stipend''.
       (b) Maximum Annual Grant.--Section 2127(e) of such title is 
     amended--
       (1) by striking ``$15,000'' and inserting ``in an amount 
     not to exceed $45,000''; and
       (2) by striking ``The amount'' and inserting ``The maximum 
     amount''.
       (c) Report on Program.--Not later than March 1, 2007, the 
     Secretary of Defense shall submit to the Congress a report on 
     the Health Professions Scholarship and Financial Assistance 
     Program for Active Service under subchapter I of chapter 105 
     of title 10, United States Code. The report shall include the 
     following:
       (1) An assessment of the success of each military 
     department in achieving its recruiting goals under the 
     program during each of fiscal years 2000 through 2006.
       (2) If any military department failed to achieve its 
     recruiting goals under the program during any fiscal year 
     covered by paragraph (1), an explanation of the failure of 
     the military department to achieve such goal during such 
     fiscal year.

[[Page 20782]]

       (3) An assessment of the adequacy of the stipend authorized 
     by section 2121(d) of title 10, United States Code, in 
     meeting the objectives of the program.
       (4) Such recommendations for legislative or administrative 
     action as the Secretary considers appropriate to enhance the 
     effectiveness of the program in meeting the annual recruiting 
     goals of the military departments for medical personnel 
     covered by the program.
       (d) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on October 1, 2006.
       (2) Prohibition on adjustments.--The adjustments required 
     by the second sentence of subsection (d) of section 2121 of 
     title 10, United States Code, and the second sentence of 
     subsection (e) of section 2127 of such title to be made in 
     2007 shall not be made.

                     PART III--JUNIOR ROTC PROGRAM

     SEC. 539. JUNIOR RESERVE OFFICERS' TRAINING CORPS INSTRUCTOR 
                   QUALIFICATIONS.

       (a) In General.--Chapter 102 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2033. Instructor qualifications

       ``(a) In General.--In order for a retired officer or 
     noncommissioned officer to be employed as an instructor in 
     the program, the officer must be certified by the Secretary 
     of the military department concerned as a qualified 
     instructor in leadership, wellness and fitness, civics, and 
     other courses related to the content of the program, 
     according to the qualifications set forth in subsection 
     (b)(2) or (c)(2), as appropriate.
       ``(b) Senior Military Instructors.--
       ``(1) Role.--Senior military instructors shall be retired 
     officers of the armed forces and shall serve as instructional 
     leaders who oversee the program.
       ``(2) Qualifications.--A senior military instructor shall 
     have the following qualifications:
       ``(A) Professional military qualification, as determined by 
     the Secretary of the military department concerned.
       ``(B) Award of a baccalaureate degree from an institution 
     of higher learning.
       ``(C) Completion of secondary education teaching 
     certification requirements for the program as established by 
     the Secretary of the military department concerned.
       ``(D) Award of an advanced certification by the Secretary 
     of the military department concerned in core content areas 
     based on--
       ``(i) accumulated points for professional activities, 
     services to the profession, awards, and recognitions;
       ``(ii) professional development to meet content knowledge 
     and instructional skills; and
       ``(iii) performance evaluation of competencies and 
     standards within the program through site visits and 
     inspections.
       ``(c) Non-Senior Military Instructors.--
       ``(1) Role.--Non-senior military instructors shall be 
     retired noncommissioned officers of the armed forces and 
     shall serve as instructional leaders and teach independently 
     of, but share program responsibilities with, senior military 
     instructors.
       ``(2) Qualifications.--A non-senior military instructor 
     shall demonstrate a depth of experience, proficiency, and 
     expertise in coaching, mentoring, and practical arts in 
     executing the program, and shall have the following 
     qualifications:
       ``(A) Professional military qualification, as determined by 
     the Secretary of the military department concerned.
       ``(B) Award of an associates degree from an institution of 
     higher learning within five years of employment.
       ``(C) Completion of secondary education teaching 
     certification requirements for the program as established by 
     the Secretary of the military department concerned.
       ``(D) Award of an advanced certification by the Secretary 
     of the military department concerned in core content areas 
     based on--
       ``(i) accumulated points for professional activities, 
     services to the profession, awards, and recognitions;
       ``(ii) professional development to meet content knowledge 
     and instructional skills; and
       ``(iii) performance evaluation of competencies and 
     standards within the program through site visits and 
     inspections.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2033. Instructor qualifications.''.

     SEC. 540. EXPANSION OF MEMBERS ELIGIBLE TO BE EMPLOYED TO 
                   PROVIDE JUNIOR RESERVE OFFICERS' TRAINING CORPS 
                   INSTRUCTION.

       (a) Eligibility of ``Gray-Area'' Guard and Reserve 
     Members.--Section 2031 of title 10, United States Code, is 
     amended by adding at the end the following new subsection:
       ``(e) Instead of, or in addition to, detailing officers and 
     noncommissioned officers on active duty under subsection 
     (c)(1) and authorizing the employment of retired officers and 
     noncommissioned officers who are in receipt of retired pay 
     and members of the Fleet Reserve and Fleet Marine Corps 
     Reserve under subsection (d), the Secretary of the military 
     department concerned may authorize qualified institutions to 
     employ as administrators and instructors in the program 
     officers and noncommissioned officers who are under 60 years 
     of age and who, but for age, would be eligible for retired 
     pay for non-regular service under section 12731 of this title 
     and whose qualifications are approved by the Secretary and 
     the institution concerned and who request such employment, 
     subject to the following:
       ``(1) The Secretary concerned shall pay to the institution 
     an amount equal to one-half of the amount paid to the member 
     by the institution for any period, up to a maximum of one-
     half of the difference between--
       ``(A) the retired or retainer pay for an active duty 
     officer or noncommissioned officer of the same grade and 
     years of service for such period; and
       ``(B) the active duty pay and allowances which the member 
     would have received for that period if on active duty.
       ``(2) Notwithstanding the limitation in paragraph (1), the 
     Secretary concerned may pay to the institution more than one-
     half of the amount paid to the member by the institution if 
     (as determined by the Secretary)--
       ``(A) the institution is in an educationally and 
     economically deprived area; and
       ``(B) the Secretary determines that such action is in the 
     national interest.
       ``(3) Payments by the Secretary concerned under this 
     subsection shall be made from funds appropriated for that 
     purpose.
       ``(4) Amounts may be paid under this subsection with 
     respect to a member after the member reaches the age of 60.
       ``(5) Notwithstanding any other provision of law, a member 
     employed by a qualified institution pursuant to an 
     authorization under this subsection is not, while so 
     employed, considered to be on active duty or inactive duty 
     training for any purpose.''.
       (b) Clarification of Status of Retired Members Providing 
     Instruction.--Subsection (d) of such section is amended in 
     the matter preceding paragraph (1) by inserting ``who are in 
     receipt of retired pay'' after ``retired officers and 
     noncommissioned officers''.

     SEC. 541. EXPANSION OF JUNIOR RESERVE OFFICERS' TRAINING 
                   CORPS PROGRAM.

       (a) In General.--The Secretaries of the military 
     departments shall take appropriate actions to increase the 
     number of secondary educational institutions at which a unit 
     of the Junior Reserve Officers' Training Corps is organized 
     under chapter 102 of title 10, United States Code.
       (b) Expansion Targets.--In increasing under subsection (a) 
     the number of secondary educational institutions at which a 
     unit of the Junior Reserve Officers' Training Corps is 
     organized, the Secretaries of the military departments shall 
     seek to organize units at an additional number of 
     institutions as follows:
       (1) In the case of Army units, 15 institutions.
       (2) In the case of Navy units, 10 institutions.
       (3) In the case of Marine Corps units, 15 institutions.
       (4) In the case of Air Force units, 10 institutions.

     SEC. 542. REVIEW OF LEGAL STATUS OF JUNIOR ROTC PROGRAM.

       (a) Review.--The Secretary of Defense shall conduct a 
     review of the 1976 legal opinion issued by the General 
     Counsel of the Department of Defense regarding instruction of 
     non-host unit students participating in Junior Reserve 
     Officers' Training Corps programs. The review shall consider 
     whether changes to law after the issuance of that opinion 
     allow in certain circumstances for the arrangement for 
     assignment of instructors that provides for the travel of an 
     instructor from one educational institution to another once 
     during the regular school day for the purposes of the Junior 
     Reserve Officers' Training Corps program as an authorized 
     arrangement that enhances administrative efficiency in the 
     management of the program. If the Secretary, as a result of 
     the review, determines that such authority is not available, 
     the Secretary should also consider whether such authority 
     should be available and whether there should be authority to 
     waive the restrictions under certain circumstances.
       (b) Report.--The Secretary shall submit to the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report containing 
     the results of the review not later than 180 days after the 
     date of the enactment of this Act.
       (c) Interim Authority.--A current institution that has more 
     than 70 students and is providing support to another 
     educational institutional with more than 70 students and has 
     been providing for the assignment of instructors from one 
     school to the other may continue to provide such support 
     until 180 days following receipt of the report under 
     subsection (b).

             PART IV--OTHER EDUCATION AND TRAINING PROGRAMS

     SEC. 543. EXPANDED ELIGIBILITY FOR ENLISTED MEMBERS FOR 
                   INSTRUCTION AT NAVAL POSTGRADUATE SCHOOL.

       (a) Certificate Programs and Courses.--Subparagraph (C) of 
     subsection (a)(2) of section 7045 of title 10, United States 
     Code, is amended by striking ``Navy or Marine Corps'' and 
     inserting ``armed forces''.
       (b) Graduate-Level Instruction.--Such subsection is further 
     amended--
       (1) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (2) by inserting after subparagraph (C) the following new 
     subparagraph (D):
       ``(D)(i) The Secretary may permit an eligible enlisted 
     member of the armed forces to receive graduate-level 
     instruction at the Naval Postgraduate School in a program 
     leading to a master's degree in a technical, analytical, or 
     engineering curriculum.
       ``(ii) To be eligible to be provided instruction under this 
     subparagraph, the enlisted member must have been awarded a 
     baccalaureate degree by an institution of higher education.
       ``(iii) Instruction under this subparagraph may be provided 
     only on a space-available basis.

[[Page 20783]]

       ``(iv) An enlisted member who successfully completes a 
     course of instruction under this subparagraph may be awarded 
     a master's degree under section 7048 of this title.
       ``(v) Instruction under this subparagraph shall be provided 
     pursuant to regulations prescribed by the Secretary. Such 
     regulations may include criteria for eligibility of enlisted 
     members for instruction under this subparagraph and 
     specification of obligations for further service in the armed 
     forces relating to receipt of such instruction.''.
       (c) Conforming Amendments.--Such section is further 
     amended--
       (1) in subparagraph (E) of subsection (a)(2), as 
     redesignated by subsection (b)(1), by striking ``and (C)'' 
     and inserting ``(C), and (D)''; and
       (2) in subsection (b)(2), by striking ``(a)(2)(D)'' and 
     inserting ``(a)(2)(E)''.
       (d) Deadline for Submission of Previously Required 
     Report.--The report required by subsection (c) of section 526 
     of the National Defense Authorization Act for Fiscal Year 
     2006 (Public Law 109-163; 119 Stat. 3246), relating to the 
     rationale and plans of the Navy to provide enlisted members 
     an opportunity to obtain graduate degrees, shall be 
     submitted, in accordance with that subsection, not later than 
     March 30, 2007.
       (e) Repeal of Requirement for Report on Pilot Program.--
       (1) Repeal.--Subsection (d) of section 526 of the National 
     Defense Authorization Act for Fiscal Year 2006 (Public Law 
     109-163; 119 Stat. 3246) is repealed.
       (2) Conforming amendment.--Subsection (c)(2) of such 
     section is amended by striking ``, particularly in the career 
     fields under consideration for the pilot program referred to 
     in subsection (d)''.
       (f) Report on Use of NPS and AFIT.--Not later than March 
     30, 2007, the Secretary of the Navy and the Secretary of the 
     Air Force shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives a joint report on the manner by which each 
     Secretary intends to use the Naval Postgraduate School and 
     the Air Force Institute of Technology during fiscal years 
     2008 through 2013 to meet the overall requirements of the 
     Navy and Marine Corps and of the Air Force for enlisted 
     members with graduate degrees. The report shall include the 
     following:
       (1) The numbers and occupational specialities of enlisted 
     members that each Secretary plans to enroll as candidates for 
     graduate degrees each year in each of the two schools.
       (2) A description of the graduate degrees that those 
     enlisted members will pursue at those schools.
       (3) Other matters that the two Secretaries jointly consider 
     to be useful for the committees to better understand the 
     future role that the two schools will each have in meeting 
     service requirements for enlisted members with graduate 
     degrees.
                Subtitle D--General Service Authorities

     SEC. 546. TEST OF UTILITY OF TEST PREPARATION GUIDES AND 
                   EDUCATION PROGRAMS IN ENHANCING RECRUIT 
                   CANDIDATE PERFORMANCE ON THE ARMED SERVICES 
                   VOCATIONAL APTITUDE BATTERY (ASVAB) AND ARMED 
                   FORCES QUALIFICATION TEST (AFQT).

       (a) Requirement for Test.--The Secretary of Defense shall 
     conduct a test of the utility of commercially available test 
     preparation guides and education programs designed to assist 
     recruit candidates achieve scores on military recruit 
     qualification testing that better reflect the full potential 
     of those recruit candidates in terms of aptitude and mental 
     category. The test shall be conducted through the Secretaries 
     of the Army, Navy, and Air Force.
       (b) Assessment of Commercially Available Guides and 
     Programs.--The test shall assess commercially available test 
     preparation guides and education programs designed to enhance 
     test performance. The test preparation guides assessed shall 
     test both written formats and self-paced computer-assisted 
     programs. Education programs assessed may test both self-
     study textbook and computer-assisted courses and instructor-
     led courses.
       (c) Objectives.--The objectives of the test are to 
     determine the following:
       (1) The degree to which test preparation assistance 
     degrades test reliability and accuracy.
       (2) The degree to which test preparation assistance allows 
     more accurate testing of skill aptitudes and mental 
     capability.
       (3) The degree to which test preparation assistance allows 
     individuals to achieve higher scores without sacrificing 
     reliability and accuracy.
       (4) What role is recommended for test preparation 
     assistance in military recruiting.
       (d) Control Group.--As part of the test, the Secretary 
     shall identify a population of recruit candidates who will 
     not receive test preparation assistance and will serve as a 
     control group for the test. Data from recruit candidates 
     participating in the test and data from recruit candidates in 
     the control group shall be compared in terms of both (1) test 
     performance, and (2) subsequent duty performance in training 
     and unit settings following entry on active duty.
       (e) Number of Participants.--The Secretary shall provide 
     test preparation assistance to a minimum of 2,000 recruit 
     candidates and shall identify an equal number to be 
     established as the control group population.
       (f) Duration of Test.--The Secretary shall begin the test 
     not later than nine months after the date of the enactment of 
     this Act. The test shall identify participants over a one-
     year period from the start of the test and shall assess duty 
     performance for each participant for 18 months following 
     entry on active duty. The last participant shall be 
     identified, but other participants may not be identified.
       (g) Report on Findings.--Not later than six months after 
     completion of the duty performance assessment of the last 
     identified participant in the test, the Secretary of Defense 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report providing the findings of the 
     Secretary with respect to each of the objectives specified in 
     subsection (c) and the Secretary's recommendations.

     SEC. 547. CLARIFICATION OF NONDISCLOSURE REQUIREMENTS 
                   APPLICABLE TO CERTAIN SELECTION BOARD 
                   PROCEEDINGS.

       (a) Active-Duty Selection Board Proceedings.--
       (1) Extension to all active-duty boards.--Chapter 36 of 
     title 10, United States Code, is amended by inserting after 
     section 613 the following new section:

     ``Sec. 613a. Nondisclosure of board proceedings

       ``(a) Nondisclosure.--The proceedings of a selection board 
     convened under section 611 this title may not be disclosed to 
     any person not a member of the board.
       ``(b) Prohibited Uses of Board Discussions, Deliberations, 
     and Records.--The discussions and deliberations of a 
     selection board described in subsection (a) and any written 
     or documentary record of such discussions and deliberations--
       ``(1) are immune from legal process;
       ``(2) may not be admitted as evidence; and
       ``(3) may not be used for any purpose in any action, suit, 
     or judicial or administrative proceeding without the consent 
     of the Secretary of the military department concerned.''.
       (2) Conforming amendment.--Section 618 of such title is 
     amended by striking subsection (f).
       (b) Reserve Selection Board Proceedings.--Section 14104 of 
     such title is amended to read as follows:

     ``Sec. 14104. Nondisclosure of board proceedings

       ``(a) Nondisclosure.--The proceedings of a selection board 
     convened under section 14101 of this title may not be 
     disclosed to any person not a member of the board.
       ``(b) Prohibited Uses of Board Discussions, Deliberations, 
     and Records.--The discussions and deliberations of a 
     selection board described in subsection (a) and any written 
     or documentary record of such discussions and deliberations--
       ``(1) are immune from legal process;
       ``(2) may not be admitted as evidence; and
       ``(3) may not be used for any purpose in any action, suit, 
     or judicial or administrative proceeding without the consent 
     of the Secretary of the military department concerned.''.
       (c) Applicability.--Section 613a of title 10, United States 
     Code, as added by subsection (a), shall apply with respect to 
     the proceedings of all selection boards convened under 
     section 611 of that title, including selection boards 
     convened before the date of the enactment of this Act. 
     Section 14104 of such title, as amended by subsection (b), 
     shall apply with respect to the proceedings of all selection 
     boards convened under section 14101 of that title, including 
     selection boards convened before the date of the enactment of 
     this Act.
       (d) Clerical Amendments.--
       (1) The table of sections at the beginning of subchapter I 
     of chapter 36 of title 10, United States Code, is amended by 
     inserting after the item relating to section 613 the 
     following new item:

``613a. Nondisclosure of board proceedings.''.
       (2) The item relating to section 14104 in the table of 
     sections at the beginning of chapter 1403 of such title is 
     amended to read as follows:

``14104. Nondisclosure of board proceedings.''.

     SEC. 548. REPORT ON EXTENT OF PROVISION OF TIMELY NOTICE OF 
                   LONG-TERM DEPLOYMENTS.

       Not later than March 1, 2007, the Secretary of Defense 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report on the number of members of the 
     Armed Forces (shown by service and within each service by 
     reserve component and active component) who, during the 
     period beginning on January 1, 2005, and ending on the date 
     of the enactment of this Act, have not received at least 30 
     days notice (in the form of an official order) before a 
     deployment that will last 180 days or more. With respect to 
     members of the reserve components, the report shall describe 
     the degree of compliance (or noncompliance) with Department 
     of Defense policy concerning the amount of notice to be 
     provided before long-term mobilizations or deployments.
                  Subtitle E--Military Justice Matters

     SEC. 551. APPLICABILITY OF UNIFORM CODE OF MILITARY JUSTICE 
                   TO MEMBERS OF THE ARMED FORCES ORDERED TO DUTY 
                   OVERSEAS IN INACTIVE DUTY FOR TRAINING STATUS.

       Not later than March 1, 2007, the Secretaries of the 
     military departments shall prescribe regulations, or amend 
     current regulations, in order to provide that members of the 
     Armed Forces who are ordered to duty at locations overseas in 
     an inactive duty for training status are subject to the 
     jurisdiction of the Uniform Code of Military Justice, 
     pursuant to the provisions of section 802(a)(3) of title 10, 
     United States Code (article 2(a)(3) of the Uniform Code of 
     Military Justice), continuously from the commencement of

[[Page 20784]]

     execution of such orders to the conclusion of such orders.

     SEC. 552. CLARIFICATION OF APPLICATION OF UNIFORM CODE OF 
                   MILITARY JUSTICE DURING A TIME OF WAR.

       Paragraph (10) of section 802(a) of title 10, United States 
     Code (article 2(a) of the Uniform Code of Military Justice), 
     is amended by striking ``war'' and inserting ``declared war 
     or a contingency operation''.
                   Subtitle F--Decorations and Awards

     SEC. 555. AUTHORITY FOR PRESENTATION OF MEDAL OF HONOR FLAG 
                   TO LIVING MEDAL OF HONOR RECIPIENTS AND TO 
                   LIVING PRIMARY NEXT-OF-KIN OF DECEASED MEDAL OF 
                   HONOR RECIPIENTS.

       (a) Future Presentations.--Sections 3755, 6257, and 8755 of 
     title 10, United States Code, and section 505 of title 14, 
     United States Code, are each amended--
       (1) by striking ``after October 23, 2002''; and
       (2) by adding at the end the following new sentence: ``In 
     the case of a posthumous presentation of the medal, the flag 
     shall be presented to the person to whom the medal is 
     presented.''.
       (b) Presentation of Flag for Prior Recipients of Medal of 
     Honor.--
       (1) Living recipients.--The President shall provide for the 
     presentation of the Medal of Honor Flag as expeditiously as 
     possible after the date of the enactment of this Act to each 
     living recipient of the Medal of Honor who has not already 
     received a Medal of Honor Flag.
       (2) Survivors of deceased recipients.--In the case of 
     presentation of the Medal of Honor Flag for a recipient of 
     the Medal of Honor who was awarded the Medal of Honor before 
     the date of the enactment of this Act and who is deceased as 
     of such date (or who dies after such date and before the 
     presentation required by paragraph (1)), the President shall 
     provide for posthumous presentation of the Medal of Honor 
     Flag, upon written application therefor, to the primary 
     living next of kin, as determined under regulations or 
     procedures prescribed by the Secretary of Defense for the 
     purposes of this paragraph (and notwithstanding the 
     amendments made by paragraph (2) of subsection (a)).
       (3) Medal of honor flag.--In this subsection, the term 
     ``Medal of Honor Flag'' means the flag designated under 
     section 903 of title 36, United States Code.

     SEC. 556. REVIEW OF ELIGIBILITY OF PRISONERS OF WAR FOR AWARD 
                   OF THE PURPLE HEART.

       (a) Report.--Not later than March 1, 2007, the President 
     shall transmit to the Committees on Armed Services of the 
     Senate and House of Representatives a report on the 
     advisability of modifying the criteria for the award of the 
     Purple Heart to authorize the award of the Purple Heart--
       (1) to a member of the Armed Forces who dies in captivity 
     as a prisoner of war under unknown circumstances or as a 
     result of conditions and treatment that, under criteria for 
     eligibility for the Purple Heart as in effect on the date of 
     the enactment of this Act, do not qualify the decedent for 
     award of the Purple Heart; and
       (2) to an individual who while a member of the Armed Forces 
     survives captivity as a prisoner of war, but who dies 
     thereafter as a result of disease or disability, or a result 
     of disease and condition and treatment, incurred during such 
     captivity.
       (b) Determination.--As part of the review undertaken in 
     order to prepare the report required by subsection (a), the 
     President shall make a determination on the advisability of 
     expanding eligibility for the award of the Purple Heart to 
     deceased servicemembers held as a prisoner of war after 
     December 7, 1941, who meet the criteria for eligibility for 
     the prisoner-of-war medal under section 1128 of title 10, 
     United States Code (including the criterion under subsection 
     (e) of that section with respect to honorable conduct), but 
     who do not meet the criteria for eligibility for the Purple 
     Heart.
       (c) Requirements.--In making the determination required by 
     subsection (b), the President shall take into consideration 
     the following:
       (1) The brutal treatment endured by thousands of prisoners 
     of war incarcerated by enemy forces.
       (2) The circumstance that many servicemembers held as 
     prisoners of war died during captivity due to causes that do 
     not meet the criteria for eligibility for award of the Purple 
     Heart, including starvation, abuse, the deliberate 
     withholding of medical treatment for injury or disease, or 
     other causes.
       (3) The circumstance that some members of the Armed Forces 
     died in captivity under circumstances establishing 
     eligibility for the prisoner-of-war medal but under 
     circumstances not otherwise establishing eligibility for the 
     Purple Heart.
       (4) The circumstance that some members and former members 
     of the Armed Forces who were held as prisoners of war and 
     following captivity were issued the prisoner-of-war medal 
     subsequently died due to a disease or disability that was 
     incurred during that captivity, without otherwise having been 
     awarded the Purple Heart due to the injury or conditions 
     resulting in that disease or disability or otherwise having 
     been awarded the Purple Heart for injury incurring during 
     captivity.
       (5) The views of veterans service organizations, including 
     the Military Order of the Purple Heart.
       (6) The importance that has been assigned to determining 
     all available facts before a decision is made to award the 
     Purple Heart.
       (7) The views of the Secretary of Defense and the Chairman 
     of the Joint Chiefs of Staff.

     SEC. 557. REPORT ON DEPARTMENT OF DEFENSE PROCESS FOR 
                   AWARDING DECORATIONS.

       (a) Review.--The Secretary of Defense shall conduct a 
     review of the policy, procedures, and processes of the 
     military departments for awarding decorations to members of 
     the Armed Forces.
       (b) Time Periods.--As part of the review under subsection 
     (a), the Secretary shall compare the time frames of the 
     awards process between active duty and reserve components--
       (1) from the time a recommendation for the award of a 
     decoration is submitted until the time the award of the 
     decoration is approved; and
       (2) from the time the award of a decoration is approved 
     until the time when the decoration is presented to the 
     recipient.
       (c) Reserve Components.--If the Secretary, in conducting 
     the review under subsection (a), finds that the timeliness of 
     the awards process for members of the reserve components is 
     not the same as, or similar to, that for members of the 
     active components, the Secretary shall take appropriate steps 
     to address the discrepancy.
       (d) Report.--Not later than August 1, 2007, the Secretary 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report containing the Secretary's findings 
     as a result of the review under subsection (a), together with 
     a plan for implementing whatever changes are determined to be 
     appropriate to the process for awarding decorations in order 
     to ensure that decorations are awarded in a timely manner, to 
     the extent practicable.
               Subtitle G--Matters Relating to Casualties

     SEC. 561. AUTHORITY FOR RETENTION AFTER SEPARATION FROM 
                   SERVICE OF ASSISTIVE TECHNOLOGY AND DEVICES 
                   PROVIDED WHILE ON ACTIVE DUTY.

       (a) In General.--Chapter 58 of title 10, United States 
     Code, is amended by inserting after section 1150 the 
     following new section:

     ``Sec. 1151. Retention of assistive technology and services 
       provided before separation

       ``(a) Authority.--A member of the armed forces who is 
     provided an assistive technology or assistive technology 
     device for a severe or debilitating illness or injury 
     incurred or aggravated by such member while on active duty 
     may, under regulations prescribed by the Secretary of 
     Defense, be authorized to retain such assistive technology or 
     assistive technology device upon the separation of the member 
     from active service.
       ``(b) Definitions.--In this section, the terms `assistive 
     technology' and `assistive technology device' have the 
     meaning given those terms in section 3 of the Assistive 
     Technology Act of 1998 (29 U.S.C. 3002).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1150 the following new item:

``1151. Retention of assistive technology and services provided before 
              separation.''.

     SEC. 562. TRANSPORTATION OF REMAINS OF CASUALTIES DYING IN A 
                   THEATER OF COMBAT OPERATIONS.

       (a) Required Transportation.--In the case of a member of 
     the Armed Forces who dies in a combat theater of operations 
     and whose remains are returned to the United States through 
     the mortuary facility at Dover Air Force Base, Delaware, the 
     Secretary concerned, under regulations prescribed by the 
     Secretary of Defense, shall provide transportation of the 
     remains of that member from Dover Air Force Base to the 
     applicable escorted remains destination in accordance with 
     section 1482(a)(8) of title 10, United States Code, and this 
     section.
       (b) Escorted Remains Destination.--In this section, the 
     term ``escorted remains destination'' means the place to 
     which remains are authorized to be transported under section 
     1482(a)(8) of title 10, United States Code.
       (c) Air Transportation From Dover AFB.--
       (1) Military transportation.--If transportation of remains 
     under subsection (a) includes transportation by air, such 
     transportation (except as provided under paragraph (2)) shall 
     be made by military aircraft or military-contracted aircraft.
       (2) Alternative transportation by aircraft.--The provisions 
     of paragraph (1) shall not be applicable to the 
     transportation of remains by air to the extent that the 
     person designated to direct disposition of the remains 
     directs otherwise.
       (3) Primary mission.--When remains are transported by 
     military aircraft or military-contracted aircraft under this 
     section, the primary mission of the aircraft providing that 
     transportation shall be the transportation of such remains. 
     However, more than one set of remains may be transported on 
     the same flight.
       (d) Escort.--
       (1) In general.--Except as provided in paragraph (2), the 
     Secretary concerned shall ensure that remains transported 
     under this section are continuously escorted from Dover Air 
     Force Base to the applicable escorted remains destination by 
     a member of the Armed Forces in an appropriate grade, as 
     determined by the Secretary.
       (2) Other escort.--If a specific military escort is 
     requested by the person designated to direct disposition of 
     such remains and the Secretary approves that request, then 
     the Secretary

[[Page 20785]]

     is not required to provide an additional military escort 
     under paragraph (1).
       (e) Honor Guard Detail.--
       (1) Provision of detail.--Except in a case in which the 
     person designated to direct disposition of remains requests 
     that no military honor guard be present, the Secretary 
     concerned shall ensure that an honor guard detail is provided 
     in each case of the transportation of remains under this 
     section. The honor guard detail shall be in addition to the 
     escort provided for the transportation of remains under 
     section (d).
       (2) Composition.--An honor guard detail provided under this 
     section shall consist of sufficient members of the Armed 
     Forces to perform the duties specified in paragraph (3). The 
     members of the honor guard detail shall be in uniform.
       (3) Duties.--Except to the extent that the person 
     designated to direct disposition of remains requests that any 
     of the following functions not be performed, an honor guard 
     detail under this section--
       (A) shall--
       (i) travel with the remains during transportation; or
       (ii) meet the remains at the place to which transportation 
     by air (or by rail or motor vehicle, if applicable) is made 
     for the transfer of the remains;
       (B) shall provide appropriate honors at the arrival of the 
     remains referred to in subparagraph (A)(ii) (unless airline 
     or other security requirements do not permit such honors to 
     be provided); and
       (C) shall participate in the transfer of the remains from 
     an aircraft, when airport and airline security requirements 
     permit, by carrying out the remains with a flag draped over 
     the casket to a hearse or other form of ground transportation 
     for travel to a funeral home or other place designated by the 
     person designated to direct disposition of such remains.
       (f) Secretary Concerned Defined.--In this section, the term 
     ``Secretary concerned'' has the meaning given that term in 
     section 101(a)(9) of title 10, United States Code.
       (g) Effective Date.--This section shall take effect at such 
     time as may be prescribed by the Secretary of Defense, but 
     not later than January 1, 2007.

     SEC. 563. ANNUAL BUDGET DISPLAY OF FUNDS FOR POW/MIA 
                   ACTIVITIES OF DEPARTMENT OF DEFENSE.

       (a) Consolidated Budget Justification.--Chapter 9 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 234. POW/MIA activities: display of budget information

       ``(a) Submission With Annual Budget Justification 
     Documents.--The Secretary of Defense shall submit to 
     Congress, as a part of the defense budget materials for a 
     fiscal year, a consolidated budget justification display, in 
     classified and unclassified form, that covers all programs 
     and activities of Department of Defense POW/MIA accounting 
     and recovery organizations.
       ``(b) Requirements for Budget Display.--The budget display 
     under subsection (a) for a fiscal year shall include for each 
     such organization the following:
       ``(1) A statement of what percentage of the requirements 
     originally requested by the organization in the budget review 
     process that the budget requests funds for.
       ``(2) A summary of actual or estimated expenditures by that 
     organization for the fiscal year during which the budget is 
     submitted and for the fiscal year preceding that year.
       ``(3) The amount in the budget for that organization.
       ``(4) A detailed explanation of the shortfalls, if any, in 
     the funding of any requirement shown pursuant to paragraph 
     (1), when compared to the amount shown pursuant to paragraph 
     (3).
       ``(5) The budget estimate for that organization for the 
     five fiscal years after the fiscal year for which the budget 
     is submitted.
       ``(c) Department of Defense POW/MIA Accounting and Recovery 
     Organizations.--In this section, the term `Department of 
     Defense POW/MIA accounting and recovery organization' means 
     any of the following (and any successor organization):
       ``(1) The Defense Prisoner of War/Missing Personnel Office 
     (DPMO).
       ``(2) The Joint POW/MIA Accounting Command (JPAC).
       ``(3) The Armed Forces DNA Identification Laboratory 
     (AFDIL).
       ``(4) The Life Sciences Equipment Laboratory (LSEL) of the 
     Air Force.
       ``(5) Any other element of the Department of Defense the 
     mission of which (as designated by the Secretary of Defense) 
     involves the accounting for and recovery of members of the 
     armed forces who are missing in action or prisoners of war or 
     who are unaccounted for.
       ``(d) Other Definitions.--In this section:
       ``(1) 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 that 
     fiscal year.
       ``(2) The term `budget', with respect to a fiscal year, 
     means the budget for that fiscal year that is submitted to 
     Congress by the President under section 1105(a) of title 
     31.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``234. POW/MIA activities: display of budget information.''.

     SEC. 564. MILITARY SEVERELY INJURED CENTER.

       (a) Center Required.--In support of the comprehensive 
     policy on the provision of assistance to severely wounded or 
     injured servicemembers required by section 563 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3269; 10 U.S.C. 113 note), the 
     Secretary of Defense shall establish within the Department of 
     Defense a center to augment and support the programs and 
     activities of the military departments for the provision of 
     such assistance, including the programs of the military 
     departments referred to in subsection (c).
       (b) Designation.--The center established under subsection 
     (a) shall be known as the ``Military Severely Injured 
     Center'' (in this section referred to as the ``Center'').
       (c) Programs of the Military Departments.--The programs of 
     the military departments referred to in this subsection are 
     the following:
       (1) The Army Wounded Warrior Support Program.
       (2) The Navy Safe Harbor Program.
       (3) The Palace HART Program of the Air Force.
       (4) The Marine for Life Injured Support Program of the 
     Marine Corps.
       (d) Activities of Center.--
       (1) In general.--The Center shall carry out such programs 
     and activities to augment and support the programs and 
     activities of the military departments for the provision of 
     assistance to severely wounded or injured servicemembers and 
     their families as the Secretary of Defense, in consultation 
     with the Secretaries of the military departments and the 
     heads of other appropriate departments and agencies of the 
     Federal Government (including the Secretary of Labor and the 
     Secretary of Veterans Affairs), determines appropriate.
       (2) Database.--The activities of the Center under this 
     subsection shall include the establishment and maintenance of 
     a central database. The database shall be transparent and 
     shall be accessible for use by all of the programs of the 
     military departments referred to in subsection (c).
       (e) Resources.--The Secretary of Defense shall allocate to 
     the Center such personnel and other resources as the 
     Secretary of Defense, in consultation with the Secretaries of 
     the military departments, considers appropriate in order to 
     permit the Center to carry out effectively the programs and 
     activities assigned to the Center under subsection (d).

     SEC. 565. COMPREHENSIVE REVIEW ON PROCEDURES OF THE 
                   DEPARTMENT OF DEFENSE ON MORTUARY AFFAIRS.

       (a) Report.--As soon as practicable after the completion of 
     a comprehensive review of the procedures of the Department of 
     Defense on mortuary affairs, the Secretary of Defense shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on Armed Services of the House of 
     Representatives a report on the review.
       (b) Additional Elements.--In conducting the comprehensive 
     review described in subsection (a), the Secretary shall 
     address, in addition to any other matter covered by the 
     review, the following:
       (1) The use of additional or increased refrigeration 
     (including icing) in combat theaters in order to enhance 
     preservation of remains.
       (2) The location of refrigeration assets further forward in 
     the field.
       (3) Specific time standards for the movement of remains 
     from combat units.
       (4) The forward location of autopsy and embalming 
     operations.
       (5) Any other matter that the Secretary considers 
     appropriate in order to expedite the return of remains to the 
     United States in a nondecomposed state.

     SEC. 566. ADDITIONAL ELEMENTS OF POLICY ON CASUALTY 
                   ASSISTANCE TO SURVIVORS OF MILITARY DECEDENTS.

       Section 562(b) of the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3267; 10 
     U.S.C. 1475 note) is amended by adding at the end the 
     following new paragraph:
       ``(12) The process by which the Department of Defense, upon 
     request, provides information (in person and otherwise) to 
     survivors of a military decedent on the cause of, and any 
     investigation into, the death of such military decedent and 
     on the disposition and transportation of the remains of such 
     decedent, which process shall--
       ``(A) provide for the provision of such information (in 
     person and otherwise) by qualified Department of Defense 
     personnel;
       ``(B) ensure that information is provided as soon as 
     possible after death and that, when requested, updates are 
     provided, in accordance with the procedures established under 
     this paragraph, in a timely manner when new information 
     becomes available;
       ``(C) ensure that--
       ``(i) the initial provision of such information, and each 
     such update, relates the most complete and accurate 
     information available at the time, subject to limitations 
     applicable to classified information; and
       ``(ii) incomplete or unverified information is identified 
     as such during the course of the provision of such 
     information or update; and
       ``(D) include procedures by which such survivors shall, 
     upon request, receive updates or supplemental information 
     from qualified Department of Defense personnel.''.

[[Page 20786]]



     SEC. 567. REQUIREMENT FOR DEPLOYING MILITARY MEDICAL 
                   PERSONNEL TO BE TRAINED IN PRESERVATION OF 
                   REMAINS UNDER COMBAT OR COMBAT-RELATED 
                   CONDITIONS.

       (a) Requirement.--The Secretary of each military department 
     shall ensure that each military health care professional 
     under that Secretary's jurisdiction who is deployed to a 
     theater of combat operations is trained, before such 
     deployment, in the preservation of remains under combat or 
     combat-related conditions.
       (b) Matters Covered by Training.--The training under 
     subsection (a) shall include, at a minimum, the following:
       (1) Best practices and procedures for the preservation of 
     the remains of a member of the Armed Forces after death, 
     taking into account the conditions likely to be encountered 
     and the objective of returning the remains to the member's 
     family in the best possible condition.
       (2) Practical case studies based on experience of the Armed 
     Forces in a variety of climactic conditions.
       (c) Covered Military Health Care Professionals.--In this 
     section, the term ``military health care professional'' 
     means--
       (1) a physician, nurse, nurse practitioner, physician 
     assistant, or combat medic; and
       (2) any other medical personnel with medical specialties 
     who may provide direct patient care and who are designated by 
     the Secretary of the military department concerned.
       (d) Effective Date.--Subsection (a) shall apply with 
     respect to any military health care professional who is 
     deployed to a theater of combat operations after the end of 
     the 90-day period beginning on the date of the enactment of 
     this Act.
     Subtitle H--Impact Aid and Defense Dependents Education System

     SEC. 571. ENROLLMENT IN DEFENSE DEPENDENTS' EDUCATION SYSTEM 
                   OF DEPENDENTS OF FOREIGN MILITARY MEMBERS 
                   ASSIGNED TO SUPREME HEADQUARTERS ALLIED POWERS, 
                   EUROPE.

       (a) Temporary Enrollment Authority.--Section 1404A of the 
     Defense Dependents' Education Act of 1978 (20 U.S.C. 923a) is 
     amended--
       (1) in subsection (a)--
       (A) by striking ``of the children'' and inserting ``of--
       ``(1) the children'';
       (B) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following new paragraph:
       ``(2) the children of a foreign military member assigned to 
     the Supreme Headquarters Allied Powers, Europe, but only in a 
     school of the defense dependents' education system in Mons, 
     Belgium, and only through the 2010-2011 school year.''; and
       (2) by adding at the end the following new subsection:
       ``(c) Special Rules Regarding Enrollment of Dependents of 
     Foreign Military Members Assigned to Supreme Headquarters 
     Allied Powers, Europe.--(1) In the regulations required by 
     subsection (a), the Secretary shall prescribe a methodology 
     based on the estimated total number of dependents of sponsors 
     under section 1414(2) enrolled in schools of the defense 
     dependents' education system in Mons, Belgium, to determine 
     the number of children described in paragraph (2) of 
     subsection (a) who will be authorized to enroll under such 
     subsection.
       ``(2) If the number of children described in paragraph (2) 
     of subsection (a) who seek enrollment in schools of the 
     defense dependents' education system in Mons, Belgium, 
     exceeds the number authorized by the Secretary under 
     paragraph (1), the Secretary may enroll the additional 
     children on a space-available, tuition-free basis 
     notwithstanding section 1404(d)(2).''.
       (b) Report on Long-Term Plan for Education of Dependents of 
     Military Personnel Assigned to Shape.--Not later than 180 
     days after the date of the enactment of this Act, the 
     Secretary of Defense shall submit to Congress a report 
     evaluating alternatives for the education of dependents of 
     United States military personnel and dependents of foreign 
     military personnel assigned to Supreme Headquarters Allied 
     Powers, Europe, including--
       (1) an evaluation of the feasibility of establishing an 
     international school at Supreme Headquarters Allied Powers, 
     Europe; and
       (2) an estimate of the timeframe necessary for transition 
     to any new model for educating such dependents.

     SEC. 572. CONTINUATION OF AUTHORITY TO ASSIST LOCAL 
                   EDUCATIONAL AGENCIES THAT BENEFIT DEPENDENTS OF 
                   MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF 
                   DEFENSE CIVILIAN EMPLOYEES.

       (a) Assistance to Schools With Significant Numbers of 
     Military Dependent Students.--Of the amount authorized to be 
     appropriated pursuant to section 301(5) for operation and 
     maintenance for Defense-wide activities, $35,000,000 shall be 
     available only for the purpose of providing assistance to 
     local educational agencies under subsection (a) of section 
     572 of the National Defense Authorization Act for Fiscal Year 
     2006 (Public Law 109-163; 119 Stat. 3271; 20 U.S.C. 7703b).
       (b) Assistance to Schools With Enrollment Changes Due to 
     Base Closures, Force Structure Changes, or Force 
     Relocations.--Of the amount authorized to be appropriated 
     pursuant to section 301(5) for operation and maintenance for 
     Defense-wide activities, $10,000,000 shall be available only 
     for the purpose of providing assistance to local educational 
     agencies under subsection (b) of such section 572.
       (c) Local Educational Agency Defined.--In this section, 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. 573. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

       Of the amount authorized to be appropriated pursuant to 
     section 301(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. 574. PLAN AND AUTHORITY TO ASSIST LOCAL EDUCATIONAL 
                   AGENCIES EXPERIENCING GROWTH IN ENROLLMENT DUE 
                   TO FORCE STRUCTURE CHANGES, RELOCATION OF 
                   MILITARY UNITS, OR BASE CLOSURES AND 
                   REALIGNMENTS.

       (a) Plan Required.--Not later than January 1, 2007, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report setting forth a plan to provide 
     assistance to local educational agencies that experience 
     growth in the enrollment of military dependent students as a 
     result of any of the following events:
       (1) Force structure changes.
       (2) The relocation of a military unit.
       (3) The closure or realignment of military installations 
     pursuant to defense base closure and realignment under the 
     base closure laws.
       (b) Elements.--The report required by subsection (a), and 
     each updated report required by subsection (c), shall include 
     the following:
       (1) An identification, current as of the date of the 
     report, of the total number of military dependent students 
     who are anticipated to be arriving at or departing from 
     military installations as a result of any event described in 
     subsection (a), including--
       (A) an identification of the military installations 
     affected by such arrivals and departures;
       (B) an estimate of the number of such students arriving at 
     or departing from each such installation; and
       (C) the anticipated schedule of such arrivals and 
     departures.
       (2) Such recommendations as the Office of Economic 
     Adjustment of the Department of Defense considers appropriate 
     for means of assisting affected local educational agencies in 
     accommodating increases in enrollment of military dependent 
     students as a result of any such event.
       (3) A plan for outreach to be conducted to affected local 
     educational agencies, commanders of military installations, 
     and members of the Armed Forces and civilian personnel of the 
     Department of Defense regarding information on the assistance 
     to be provided under the plan under subsection (a).
       (c) Updated Reports.--Not later than March 1, 2008, and 
     annually thereafter to coincide with the submission of the 
     budget of the President for a fiscal year under section 1105 
     of title 31, United States Code, the Secretary of Defense 
     shall submit to the congressional defense committees an 
     update of the report required by subsection (a).
       (d) Transition of Military Dependents From Department of 
     Defense Dependent Schools to Other Schools.--During the 
     period beginning on the date of the enactment of this Act and 
     ending on September 30, 2011, the Secretary of Defense shall 
     work collaboratively with the Secretary of Education in any 
     efforts to ease the transition of military dependent students 
     from attendance in Department of Defense dependent schools to 
     attendance in schools of local educational agencies. The 
     Secretary of Defense may use funds of the Department of 
     Defense Education Activity to share expertise and experience 
     of the Activity with local educational agencies as military 
     dependent students make such transition, including such a 
     transition resulting from the closure or realignment of 
     military installations under a base closure law, global 
     rebasing, and force restructuring.
       (e) Definitions.--In this section:
       (1) The term ``base closure law'' has the meaning given 
     that term in section 101 of title 10, United States Code.
       (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)).
       (3) The term ``military dependent students'' refers to--
       (A) elementary and secondary school students who are 
     dependents of members of the Armed Forces; and
       (B) elementary and secondary school students who are 
     dependents of civilian employees of the Department of 
     Defense.

     SEC. 575. PILOT PROGRAM ON PARENT EDUCATION TO PROMOTE EARLY 
                   CHILDHOOD EDUCATION FOR DEPENDENT CHILDREN 
                   AFFECTED BY MILITARY DEPLOYMENT OR RELOCATION 
                   OF MILITARY UNITS.

       (a) Pilot Program Authorized.--Using such funds as may be 
     appropriated for this purpose, the Secretary of Defense may 
     carry out a pilot program on the provision of educational and 
     support tools to the parents of preschool-age children--
       (1) whose parent or parents serve as members of the Armed 
     Forces on active duty (including members of the Selected 
     Reserve on active duty pursuant to a call or order to active 
     duty of 180 days or more); and
       (2) who are affected by the deployment of their parent or 
     parents or the relocation of the

[[Page 20787]]

     military unit of which their parent or parents are a member.
       (b) Purpose.--The purpose of the pilot program is to 
     develop models for improving the capability of military child 
     and youth programs on or near military installations to 
     provide assistance to military parents with young children 
     through a program of activities focusing on the unique needs 
     of children described in subsection (a).
       (c) Limits on Commencement and Duration of Program.--The 
     Secretary of Defense may not commence the pilot program 
     before October 1, 2007, and shall conclude the pilot program 
     not later than the end of the three-year period beginning on 
     the date on which the Secretary commences the program.
       (d) Scope of Program.--Under the pilot program, the 
     Secretary of Defense shall utilize one or more models, 
     demonstrated through research, of universal access of parents 
     of children described in subsection (a) to assistance under 
     the pilot program to achieve the following goals:
       (1) The identification and mitigation of specific risk 
     factors for such children related to military life.
       (2) The maximization of the educational readiness of such 
     children.
       (e) Locations and Goals.--
       (1) Selection of participating installations.--In selecting 
     military installations to participate in the pilot program, 
     the Secretary of Defense shall limit selection to those 
     military installations whose military personnel are 
     experiencing significant transition or deployment or which 
     are undergoing transition as a result of the relocation or 
     activation of military units or activities relating to 
     defense base closure and realignment.
       (2) Selection of certain installations.--At least one of 
     the installations selected under paragraph (1) shall be a 
     military installation that will permit, under the pilot 
     program, the meaningful evaluation of a model under 
     subsection (d) that provides outreach to parents in families 
     with a parent who is a member of the National Guard or 
     Reserve, which families live more than 40 miles from the 
     installation.
       (3) Goals of participating installations.--If a military 
     installation is selected under paragraph (1), the Secretary 
     shall require appropriate personnel at the military 
     installation to develop goals, and specific outcome measures 
     with respect to such goals, for the conduct of the pilot 
     program at the installation.
       (4) Evaluation required.--Upon completion of the pilot 
     program at a military installation, the personnel referred to 
     in paragraph (3) at the installation shall be required to 
     conduct an evaluation and assessment of the success of the 
     pilot program at the installation in meeting the goals 
     developed for that installation.
       (f) Guidelines.--As part of conducting the pilot program, 
     the Secretary of Defense shall issue guidelines regarding--
       (1) the goals to be developed under subsection (e)(3);
       (2) specific outcome measures; and
       (3) the selection of curriculum and the conduct of 
     developmental screening under the pilot program.
       (g) Report.--Upon completion of the pilot program, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a report on all of the 
     evaluations prepared under subsection (e)(4) for the military 
     installations participating in the pilot program. The report 
     shall describe the results of the evaluations, and may 
     include such recommendations for legislative or 
     administrative action as the Secretary considers appropriate 
     in light of the evaluations, including recommendations for 
     the continuation of the pilot program.
                Subtitle I--Armed Forces Retirement Home

     SEC. 578. REPORT ON LEADERSHIP AND MANAGEMENT OF THE ARMED 
                   FORCES RETIREMENT HOME.

       Not later than 30 days after the date of the enactment of 
     this Act, the Secretary of Defense shall submit to the 
     congressional defense committees a report evaluating the 
     following:
       (1) The effect of changing the title of the Chief Operating 
     Officer of the Armed Forces Retirement Home to a chief 
     executive officer who will be responsible to the Secretary of 
     Defense for the overall direction, operation, and management 
     of the Retirement Home.
       (2) The effect of no longer permitting a civilian with 
     experience as a continuing care retirement community 
     professional to serve as the Director for a facility of the 
     Armed Forces Retirement Home, but to instead limit 
     eligibility for such positions to members of the Armed Forces 
     serving on active duty in a grade below brigadier general or, 
     in the case of the Navy, rear admiral (lower half).
       (3) The management of the Armed Forces Retirement Home and 
     whether or not there is a need for a greater role by members 
     of the Armed Forces serving on active duty in the overall 
     direction, operation, and management of the Retirement Home.

     SEC. 579. REPORT ON LOCAL BOARDS OF TRUSTEES OF THE ARMED 
                   FORCES RETIREMENT HOME.

       Not later than 30 days after the date of the enactment of 
     this Act, the Secretary of Defense shall submit to the 
     congressional defense committees a report describing the 
     following:
       (1) The current composition and activities of the Local 
     Board of Trustees of the Armed Forces Retirement Home--
     Washington under section 1516 of the Armed Forces Retirement 
     Home Act of 1991 (24 U.S.C. 416).
       (2) The current composition and activities of the Local 
     Board of Trustees of the Armed Forces Retirement Home--
     Gulfport under such section.
       (3) The feasibility and effect of including as a member of 
     each Local Board of Trustees of the Armed Forces Retirement 
     Home a member of the Armed Forces who is serving on active 
     duty in the grade of brigadier general, or in the case of the 
     Navy, rear admiral (lower half).
                          Subtitle J--Reports

     SEC. 581. REPORT ON PERSONNEL REQUIREMENTS FOR AIRBORNE 
                   ASSETS IDENTIFIED AS LOW-DENSITY, HIGH-DEMAND 
                   AIRBORNE ASSETS.

       (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 Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report on personnel requirements for 
     airborne assets identified as Low-Density, High-Demand 
     Airborne Assets based on combatant commander requirements to 
     conduct and sustain operations for the global war on 
     terrorism.
       (b) Matter to Be Included.--The report shall include the 
     following for each airborne asset identified as a Low-
     Density, High-Demand Airborne Asset:
       (1) The numbers of operations and maintenance crews to meet 
     tasking contemplated to conduct operations for the global war 
     on terrorism.
       (2) The current numbers of operations and maintenance 
     crews.
       (3) If applicable, shortages of operations and maintenance 
     crews.
       (4) Whether such shortages are addressed in the future-
     years defense program.
       (5) Whether end-strength increases are required to meet any 
     such shortages.
       (6) Estimated manpower costs of personnel needed to address 
     shortfalls.
       (7) If applicable, the number and types of equipment needed 
     to address training shortfalls.

     SEC. 582. REPORT ON FEASIBILITY OF ESTABLISHMENT OF MILITARY 
                   ENTRANCE PROCESSING COMMAND STATION ON GUAM.

       (a) Review.--The Secretary of Defense shall review the 
     feasibility and cost effectiveness of establishing on Guam a 
     station of the Military Entrance Processing Command to 
     process new recruits for the Armed Forces who are drawn from 
     the western Pacific region. For the purposes of the review, 
     the cost effectiveness of establishing such a facility on 
     Guam shall be measured, in part, against the system in effect 
     in early 2006 of using Hawaii and other locations for the 
     processing of new recruits from Guam and other locations in 
     the western Pacific region.
       (b) Report.--Not later than June 1, 2007, the Secretary 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report providing the results of the study 
     under subsection (a).

     SEC. 583. INCLUSION IN ANNUAL DEPARTMENT OF DEFENSE REPORT ON 
                   SEXUAL ASSAULTS OF INFORMATION ON RESULTS OF 
                   DISCIPLINARY ACTIONS.

       Section 577(f)(2)(B) of the Ronald W. Reagan National 
     Defense Authorization Act for Fiscal Year 2005 (Public Law 
     108-375; 118 Stat. 1927) is amended to read as follows:
       ``(B) A synopsis of each such substantiated case and, for 
     each such case, the disciplinary action taken in the case, 
     including the type of disciplinary or administrative sanction 
     imposed, if any.''.

     SEC. 584. REPORT ON PROVISION OF ELECTRONIC COPY OF MILITARY 
                   RECORDS ON DISCHARGE OR RELEASE OF MEMBERS FROM 
                   THE ARMED FORCES.

       (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 feasibility and advisability of providing an 
     electronic copy of military records (including all military 
     service, medical, and other military records) to members of 
     the Armed Forces on their discharge or release from the Armed 
     Forces.
       (b) Elements.--The report required by subsection (a) shall 
     include the following:
       (1) An estimate of the costs of the provision of military 
     records as described in subsection (a).
       (2) An assessment of providing military records as 
     described in that subsection through the distribution of a 
     portable, readily accessible medium (such as a computer disk 
     or other similar medium) containing such records.
       (3) A description and assessment of the mechanisms required 
     to ensure the privacy of members of the Armed Forces in 
     providing military records as described in that subsection.
       (4) An assessment of the benefits to the members of the 
     Armed Forces of receiving their military records as described 
     in that subsection.
       (5) If the Secretary determines that providing military 
     records to members of the Armed Forces as described in that 
     subsection is feasible and advisable, a plan (including a 
     schedule) for providing such records to members of the Armed 
     Forces as so described in order to ensure that each member of 
     the Armed Forces is provided such records upon discharge or 
     release from the Armed Forces.
       (6) Any other matter to relating to the provision of 
     military records as described in that subsection that the 
     Secretary considers appropriate.

     SEC. 585. REPORT ON OMISSION OF SOCIAL SECURITY ACCOUNT 
                   NUMBERS FROM MILITARY IDENTIFICATION CARDS.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act,

[[Page 20788]]

     the Secretary of Defense shall submit to Congress a report 
     setting forth the assessment of the Secretary of the 
     feasibility of utilizing military identification cards that 
     do not contain, display, or exhibit the social security 
     account number of the individual identified by a military 
     identification card.
       (b) Military Identification Card Defined.--In this section, 
     the term ``military identification card'' means a card or 
     other form of identification used for purposes of 
     demonstrating eligibility for any benefit from the Department 
     of Defense.

     SEC. 586. REPORT ON MAINTENANCE AND PROTECTION OF DATA HELD 
                   BY THE SECRETARY OF DEFENSE AS PART OF THE 
                   DEPARTMENT OF DEFENSE JOINT ADVERTISING, MARKET 
                   RESEARCH AND STUDIES (JAMRS) PROGRAM.

       Not later than 120 days after the date of the enactment of 
     this Act, the Secretary of Defense shall submit to the 
     Committees on Armed Services of the Senate and House of 
     Representatives a report on how the data, including social 
     security account numbers, held by the Secretary as part of 
     the Joint Advertising, Market Research and Studies (JAMRS) 
     program of the Department of Defense are maintained and 
     protected, including a description of the security measures 
     in place to prevent unauthorized access or inadvertent 
     disclosure of such data that could lead to identity theft.

     SEC. 587. COMPTROLLER GENERAL REPORT ON MILITARY 
                   CONSCIENTIOUS OBJECTORS.

       (a) Report Required.--Not later than September 1, 2007, the 
     Comptroller General shall submit to Congress a report 
     concerning members of the Armed Forces who claimed status as 
     a military conscientious objector between September 11, 2001, 
     and December 31, 2006.
       (b) Content of Report.--The report required by subsection 
     (a) shall specifically address the following:
       (1) The number of all applications for status as a military 
     conscientious objector, broken down by Armed Force, including 
     the Coast Guard, and regular and reserve components.
       (2) Number of discharges or reassignments given.
       (3) The process generally used to consider applications, 
     including average processing times and any provision for 
     assignment or reassignment of members while their application 
     is pending.
       (4) Reasons for approval or disapproval of applications.
       (5) Any difference in benefits upon discharge as a military 
     conscientious objector compared to other discharges.
       (6) Pre-war statistical comparisons.
                       Subtitle K--Other Matters

     SEC. 591. MODIFICATION IN DEPARTMENT OF DEFENSE CONTRIBUTIONS 
                   TO MILITARY RETIREMENT FUND.

       (a) Determination of Contributions to the Fund.--
       (1) Calculation of annual department of defense 
     contribution.--Subsection (b)(1) of section 1465 of title 10, 
     United States Code, is amended--
       (A) in subparagraph (A)(ii), by striking ``to members of'' 
     and all that follows and inserting ``for active duty (other 
     than the Coast Guard) and for full-time National Guard duty 
     (other than full-time National Guard duty for training only), 
     but excluding the amount expected to be paid for any duty 
     that would be excluded for active-duty end strength purposes 
     by section 115(i) of this title.''; and
       (B) in subparagraph (B)(ii)--
       (i) by striking ``Ready Reserve'' and inserting ``Selected 
     Reserve''; and
       (ii) by striking ``Coast Guard and other than members on 
     full-time National Guard duty other than for training) who 
     are'' and inserting ``Coast Guard) for service''.
       (2) Quadrennial actuarial valuation.--Subsection (c)(1) of 
     such section is amended--
       (A) in subparagraph (A), by striking ``for members of the 
     armed forces'' and all that follows through ``for training 
     only)'' and inserting ``for active duty (other than the Coast 
     Guard) and for full-time National Guard duty (other than 
     full-time National Guard duty for training only), but 
     excluding the amount expected to be paid for any duty that 
     would be excluded for active-duty end strength purposes by 
     section 115(i) of this title''; and
       (B) in subparagraph (B)--
       (i) by striking ``Ready Reserve'' and inserting ``Selected 
     Reserve''; and
       (ii) by striking ``Coast Guard and other than members on 
     full-time National Guard duty other than for training) who 
     are'' and inserting ``Coast Guard) for service''.
       (b) Payments Into the Fund.--Section 1466(a) of such title 
     is amended--
       (1) in paragraph (1)(B), by striking ``by members'' and all 
     that follows and inserting ``for active duty (other than the 
     Coast Guard) and for full-time National Guard duty (other 
     than full-time National Guard duty for training only), but 
     excluding the amount expected to be paid for any duty that 
     would be excluded for active-duty end strength purposes by 
     section 115(i) of this title''; and
       (2) in paragraph (2)(B)--
       (A) by striking ``Ready Reserve'' and inserting ``Selected 
     Reserve''; and
       (B) by striking ``Coast Guard and other than members on 
     full-time National Guard duty other than for training) who 
     are'' and inserting ``Coast Guard) for service''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2007.

     SEC. 592. REVISION IN GOVERNMENT CONTRIBUTIONS TO MEDICARE-
                   ELIGIBLE RETIREE HEALTH CARE FUND.

       (a) Medicare-Eligible Retiree Health Care Fund.--Section 
     1111 of title 10, United States Code, is amended--
       (1) in subsection (a), by striking ``of the Department of 
     Defense'' and inserting ``of the uniformed services'' ; and
       (2) in subsection (b), by adding at the end of the 
     following new paragraph:
       ``(5) The term `members of the uniformed services on active 
     duty' does not include a cadet at the United States Military 
     Academy, the United States Air Force Academy, or the Coast 
     Guard Academy or a midshipman at the United States Naval 
     Academy.''.
       (b) Determination of Contributions to the Fund.--Section 
     1115 of such title is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)(B), by striking ``on active duty'' and 
     all that follows through ``training only)'' and inserting the 
     following: ``on active duty and full-time National Guard 
     duty, but excluding any member who would be excluded for 
     active-duty end strength purposes by section 115(i) of this 
     title''; and
       (B) in paragraph (2)(B)--
       (i) by striking ``Ready Reserve'' and inserting ``Selected 
     Reserve''; and
       (ii) by striking ``(other than members on full-time 
     National Guard duty other than for training)''; and
       (2) in subsection (c)--
       (A) in paragraph (1)(A), by striking ``on active duty'' and 
     all that follows through ``training only)'' and inserting the 
     following: ``on active duty and full-time National Guard 
     duty, but excluding any member who would be excluded for 
     active-duty end strength purposes by section 115(i) of this 
     title''; and
       (B) in paragraph (1)(B)--
       (i) by striking ``Ready Reserve'' and inserting ``Selected 
     Reserve''; and
       (ii) by striking ``(other than members on full-time 
     National Guard duty other than for training)''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect with respect to payments under chapter 56 
     of title 10, United States Code, beginning with fiscal year 
     2008.

     SEC. 593. DENTAL CORPS OF THE NAVY BUREAU OF MEDICINE AND 
                   SURGERY.

       (a) Deletion of References to Dental Division.--Section 
     5138 of title 10, United States Code, is amended--
       (1) in subsection (a)--
       (A) by striking the first sentence; and
       (B) by striking ``the Dental Division'' and inserting ``the 
     Dental Corps'';
       (2) in subsection (b), by striking ``Dental Division'' and 
     inserting ``Dental Corps''; and
       (3) in subsection (c)--
       (A) by striking ``Dental Division'' at the end of the first 
     sentence and inserting ``Dental Corps''; and
       (B) by striking ``that Division'' at the end of the second 
     sentence and inserting ``the Chief of the Dental Corps''.
       (b) Functions of Chief of Dental Corps.--Subsection (d) of 
     such section is amended to read as follows:
       ``(d) The Chief of the Dental Corps shall--
       ``(1) establish professional standards and policies for 
     dental practice;
       ``(2) initiate and recommend action pertaining to 
     complements, strength, appointments, advancement, training 
     assignment, and transfer of dental personnel; and
       ``(3) serve as the advisor for the Bureau on all matters 
     relating directly to dentistry.''.
       (c) Further Clarifying Amendments.--Subsection (c) of such 
     section is further amended--
       (1) by striking ``so'' after ``shall be''; and
       (2) by striking ``that all such functions will be'' and 
     inserting ``so that all such functions are''.
       (d) Clerical Amendments.--
       (1) The heading of such section is amended to read as 
     follows:

     ``Sec. 5138. Bureau of Medicine and Surgery: Dental Corps; 
       Chief; functions''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 513 of such title is 
     amended to read as follows:

``5138. Bureau of Medicine and Surgery: Dental Corps; Chief; 
              functions.''.

     SEC. 594. PERMANENT AUTHORITY FOR PRESENTATION OF RECOGNITION 
                   ITEMS FOR RECRUITMENT AND RETENTION PURPOSES.

       Section 2261 of title 10, United States Code, is amended by 
     striking subsection (d).

     SEC. 595. PERSONS AUTHORIZED TO ADMINISTER ENLISTMENT AND 
                   APPOINTMENT OATHS.

       (a) Enlistment Oath.--Section 502 of title 10, United 
     States Code, is amended--
       (1) by inserting ``(a) Enlistment Oath.--'' before ``Each 
     person enlisting'';
       (2) by striking the last sentence; and
       (3) by adding at the end the following new subsection:
       ``(b) Who May Administer.--The oath may be taken before the 
     President, the Vice-President, the Secretary of Defense, any 
     commissioned officer, or any other person designated under 
     regulations prescribed by the Secretary of Defense.''.
       (b) Oaths Generally.--Section 1031 of such title is amended 
     by striking ``Any commissioned officer of any component of an 
     armed force, whether or not on active duty, may administer 
     any oath'' and inserting ``The President, the Vice-President, 
     the Secretary of Defense, any

[[Page 20789]]

     commissioned officer, and any other person designated under 
     regulations prescribed by the Secretary of Defense may 
     administer any oath''.

     SEC. 596. MILITARY VOTING MATTERS.

       (a) Repeal of Requirement for Periodic Inspector General 
     Installation Visits for Assessment of Voting Assistance 
     Program Compliance.--Section 1566 of title 10, United States 
     Code, is amended by striking subsection (d).
       (b) Use of Electronic Voting Technology.--
       (1) Continuation of interim voting assistance system.--The 
     Secretary of Defense shall continue the Interim Voting 
     Assistance System (IVAS) ballot request program with respect 
     to all absent uniformed services voters (as defined under 
     section 107(1) of the Uniformed and Overseas Citizens 
     Absentee Voting Act (42 U.S.C. 1973ff-6(1))) and overseas 
     employees of the Department of Defense for the general 
     election and all elections through December 31, 2006.
       (2) Reports.--
       (A) In general.--Not later than 30 days after the date of 
     the regularly scheduled general election for Federal office 
     for November 2006, the Secretary of Defense shall submit to 
     the Congress a report setting forth--
       (i) an assessment of the success of the implementation of 
     the Interim Voting Assistance System ballot request program 
     carried out under paragraph (1);
       (ii) recommendations for continuation of the Interim Voting 
     Assistance System and for improvements to that system; and
       (iii) an assessment of available technologies and other 
     means of achieving enhanced use of electronic and Internet-
     based capabilities under the Interim Voting Assistance 
     System.
       (B) Future elections.--Not later than May 15, 2007, the 
     Secretary of Defense shall submit to the Congress a report 
     setting forth in detail plans for expanding the use of 
     electronic voting technology for individuals covered under 
     the Uniformed and Overseas Citizens Absentee Voting Act (42 
     U.S.C. 1973ff et seq.) for elections through November 30, 
     2010.
       (c) Comptroller General Report.--Not later than March 1, 
     2007, the Comptroller General of the United States shall 
     submit to Congress a report containing the assessment of the 
     Comptroller General with respect to the following:
       (1) The programs and activities undertaken by the 
     Department of Defense to facilitate voter registration, 
     transmittal of ballots to absentee voters, and voting 
     utilizing electronic means of communication (such as 
     electronic mail and fax transmission) for military and 
     civilian personnel covered by the Uniformed and Overseas 
     Citizens Absentee Voting Act (42 U.S.C. 1973ff et seq.).
       (2) The progress of the Department of Defense and the 
     Election Assistance Commission in developing a secure, 
     deployable system for Internet-based electronic voting 
     pursuant to the amendment made by section 567 of the Ronald 
     W. Reagan National Defense Authorization Act for Fiscal Year 
     2005 (Public Law 108-375; 118 Stat. 1919).
       (d) Repeal of Expired Provision.--Section 1566(g)(2) of 
     title 10, United States Code, is amended by striking the last 
     sentence.

     SEC. 597. PHYSICAL EVALUATION BOARDS.

       (a) In General.--
       (1) Procedural requirements.--Chapter 61 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 1222. Physical evaluation boards

       ``(a) Response to Applications and Appeals.--The Secretary 
     of each military department shall ensure, in the case of any 
     member of the armed forces appearing before a physical 
     evaluation board under that Secretary's supervision, that 
     documents announcing a decision of the board in the case 
     convey the findings and conclusions of the board in an 
     orderly and itemized fashion with specific attention to each 
     issue presented by the member in regard to that member's 
     case. The requirement under the preceding sentence applies to 
     a case both during initial consideration and upon subsequent 
     consideration due to appeal by the member or other 
     circumstance.
       ``(b) Liaison Officer (PEBLO) Requirements and Training.--
     (1) The Secretary of Defense shall prescribe regulations 
     establishing--
       ``(A) a requirement for the Secretary of each military 
     department to make available to members of the armed forces 
     appearing before physical evaluation boards operated by that 
     Secretary employees, designated as physical evaluation board 
     liaison officers, to provide advice, counsel, and general 
     information to such members on the operation of physical 
     evaluation boards operated by that Secretary; and
       ``(B) standards and guidelines concerning the training of 
     such physical evaluation board liaison officers.
       ``(2) The Secretary shall ensure compliance by the 
     Secretary of each military department with physical 
     evaluation board liaison officer requirements and training 
     standards and guidelines at least once every three years.
       ``(c) Standardized Staff Training and Operations.--(1) The 
     Secretary of Defense shall prescribe regulations on standards 
     and guidelines concerning the physical evaluation board 
     operated by each of the Secretaries of the military 
     departments with regard to--
       ``(A) assignment and training of staff;
       ``(B) operating procedures; and
       ``(C) timeliness of board decisions.
       ``(2) The Secretary shall ensure compliance with standards 
     and guidelines prescribed under paragraph (1) by each 
     physical evaluation board at least once every three years.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``1222.  Physical evaluation boards.''.

       (b) Effective Date.--Section 1222 of title 10, United 
     States Code, as added by subsection (a), shall apply with 
     respect to decisions rendered on cases commenced more than 
     120 days after the date of the enactment of this Act.

     SEC. 598. MILITARY ID CARDS FOR RETIREE DEPENDENTS WHO ARE 
                   PERMANENTLY DISABLED.

       (a) In General.--Subsection (a) of section 1060b of title 
     10, United States Code, is amended to read as follows:
       ``(a) Issuance of Permanent ID Card.--(1) In issuing 
     military ID cards to retiree dependents, the Secretary 
     concerned shall issue a permanent ID card (not subject to 
     renewal) to any such retiree dependent as follows:
       ``(A) A retiree dependent who has attained 75 years of age.
       ``(B) A retiree dependent who is permanently disabled.
       ``(2) A permanent ID card shall be issued to a retiree 
     dependent under paragraph (1)(A) upon the expiration, after 
     the retiree dependent attains 75 years of age, of any 
     earlier, renewable military card or, if earlier, upon the 
     request of the retiree dependent after attaining age 75.''.
       (b) Conforming and Clerical Amendments.--
       (1) Heading amendment.--The heading of such section is 
     amended to read as follows:

     ``Sec. 1060b. Military ID cards: dependents and survivors of 
       retirees''.

       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 53 of such title is amended by striking 
     the item relating to section 1060b and inserting the 
     following new item:

``1060b. Military ID cards: dependents and survivors of retirees.''.

     SEC. 599. UNITED STATES MARINE BAND AND UNITED STATES MARINE 
                   DRUM AND BUGLE CORPS.

       (a) In General.--Section 6222 of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 6222. United States Marine Band; United States Marine 
       Drum and Bugle Corps: composition; appointment and 
       promotion of members

       ``(a) United States Marine Band.--The band of the Marine 
     Corps shall be composed of one director, two assistant 
     directors, and other personnel in such numbers and grades as 
     the Secretary of the Navy determines to be necessary.
       ``(b) United States Marine Drum and Bugle Corps.--The drum 
     and bugle corps of the Marine Corps shall be composed of one 
     commanding officer and other personnel in such numbers and 
     grades as the Secretary of the Navy determines to be 
     necessary.
       ``(c) Appointment and Promotion.--(1) The Secretary of the 
     Navy shall prescribe regulations for the appointment and 
     promotion of members of the Marine Band and members of the 
     Marine Drum and Bugle Corps.
       ``(2) The President may from time to time appoint members 
     of the Marine Band and members of the Marine Drum and Bugle 
     Corps to grades not above the grade of captain. The authority 
     of the President to make appointments under this paragraph 
     may be delegated only to the Secretary of Defense.
       ``(3) The President, by and with the advice and consent of 
     the Senate, may from time to time appoint any member of the 
     Marine Band or of the Marine Drum and Bugle Corps to a grade 
     above the grade of captain.
       ``(d) Retirement.--Unless otherwise entitled to higher 
     retired grade and retired pay, a member of the Marine Band or 
     Marine Drum and Bugle Corps who holds, or has held, an 
     appointment under this section is entitled, when retired, to 
     be retired in, and with retired pay based on, the highest 
     grade held under this section in which the Secretary of the 
     Navy determines that such member served satisfactorily.
       ``(e) Revocation of Appointment.--The Secretary of the Navy 
     may revoke any appointment of a member of the Marine Band or 
     Marine Drum and Bugle Corps. When a member's appointment to a 
     commissioned grade terminates under this subsection, such 
     member is entitled, at the option of such member--
       ``(1) to be discharged from the Marine Corps; or
       ``(2) to revert to the grade and status such member held at 
     the time of appointment under this section.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 565 of such title is amended by striking 
     the item relating to section 6222 and inserting the following 
     new item:

``6222. United States Marine Band; United States Marine Drum and Bugle 
              Corps: composition; appointment and promotion of 
              members.''.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2007 increase in military basic pay and reform of 
              basic pay rates.
Sec. 602. Increase in maximum rate of basic pay for general and flag 
              officer grades to conform to increase in pay cap for 
              Senior Executive Service personnel.

[[Page 20790]]

Sec. 603. One-year extension of prohibition against requiring certain 
              injured members to pay for meals provided by military 
              treatment facilities.
Sec. 604. Availability of second basic allowance for housing for 
              certain reserve component or retired members serving in 
              support of contingency operations.
Sec. 605. Extension of temporary continuation of housing allowance for 
              dependents of members dying on active duty to spouses who 
              are also members.
Sec. 606. Payment of full premium for coverage under Servicemembers' 
              Group Life Insurance program during service in Operation 
              Enduring Freedom or Operation Iraqi Freedom.
Sec. 607. Clarification of effective date of prohibition on 
              compensation for correspondence courses.
Sec. 608. Extension of pilot program on contributions to Thrift Savings 
              Plan for initial enlistees in the Army.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonus and special pay authorities for 
              reserve forces.
Sec. 612. Extension of certain bonus and special pay authorities for 
              health care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
              officers.
Sec. 614. Extension of authorities relating to payment of other bonuses 
              and special pays.
Sec. 615. Expansion of eligibility of dental officers for additional 
              special pay.
Sec. 616. Increase in maximum annual rate of special pay for Selected 
              Reserve health care professionals in critically short 
              wartime specialties.
Sec. 617. Expansion and enhancement of accession bonus authorities for 
              certain officers in health care specialities.
Sec. 618. Authority to provide lump sum payment of nuclear officer 
              incentive pay.
Sec. 619. Increase in maximum amount of nuclear career accession bonus.
Sec. 620. Increase in maximum amount of incentive bonus for transfer 
              between Armed Forces.
Sec. 621. Additional authorities and incentives to encourage retired 
              members and reserve component members to volunteer to 
              serve on active duty in high-demand, low-density 
              assignments.
Sec. 622. Accession bonus for members of the Armed Forces appointed as 
              commissioned officers after completing officer candidate 
              school.
Sec. 623. Modification of certain authorities applicable to the 
              targeted shaping of the Armed Forces.
Sec. 624. Enhancement of bonus to encourage certain persons to refer 
              other persons for enlistment in the Army.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for transportation of 
              family members incident to illness or injury of members.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Retired pay of general and flag officers to be based on rates 
              of basic pay provided by law.
Sec. 642. Inapplicability of retired pay multiplier maximum percentage 
              to certain service of members of the Armed Forces in 
              excess of 30 years.
Sec. 643. Military Survivor Benefit Plan beneficiaries under insurable 
              interest coverage.
Sec. 644. Modification of eligibility for commencement of authority for 
              optional annuities for dependents under the Survivor 
              Benefit Plan.
Sec. 645. Study of training costs, manning, operations tempo, and other 
              factors that affect retention of members of the Armed 
              Forces with special operations designations.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 661. Treatment of price surcharges of certain merchandise sold at 
              commissary stores.
Sec. 662. Limitations on lease of non-excess Department of Defense 
              property for protection of morale, welfare, and 
              recreation activities and revenue.
Sec. 663. Report on cost effectiveness of purchasing commercial 
              insurance for commissary and exchange facilities and 
              facilities of other morale, welfare, and recreation 
              programs and nonappropriated fund instrumentalities.
Sec. 664. Study and report regarding access of disabled persons to 
              morale, welfare, and recreation facilities and 
              activities.

                       Subtitle F--Other Matters

Sec. 670. Limitations on terms of consumer credit extended to 
              servicemembers and dependents.
Sec. 671. Enhancement of authority to waive claims for overpayment of 
              pay and allowances and travel and transportation 
              allowances.
Sec. 672. Exception for notice to consumer reporting agencies regarding 
              debts or erroneous payments pending a decision to waive, 
              remit, or cancel.
Sec. 673. Expansion and enhancement of authority to remit or cancel 
              indebtedness of members and former members of the Armed 
              Forces incurred on active duty.
Sec. 674. Phased recovery of overpayments of pay made to members of the 
              uniformed services.
Sec. 675. Joint family support assistance program.
Sec. 676. Special working group on transition to civilian employment of 
              National Guard and Reserve members returning from 
              deployment in Operation Iraqi Freedom or Operation 
              Enduring Freedom.
Sec. 677. Audit of pay accounts of members of the Army evacuated from a 
              combat zone for inpatient care.
Sec. 678. Report on eligibility and provision of assignment incentive 
              pay.
Sec. 679. Sense of Congress calling for payment to World War II 
              veterans who survived Bataan Death March.
                     Subtitle A--Pay and Allowances

     SEC. 601. FISCAL YEAR 2007 INCREASE IN MILITARY BASIC PAY AND 
                   REFORM OF BASIC PAY RATES.

       (a) Waiver of Section 1009 Adjustment.--The adjustment to 
     become effective during fiscal year 2007 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) January 1, 2007, Increase in Basic Pay.--Effective on 
     January 1, 2007, the rates of monthly basic pay for members 
     of the uniformed services are increased by 2.2 percent.
       (c) Reform of Basic Pay Rates.--Effective on April 1, 2007, 
     the rates of monthly basic pay for members of the uniformed 
     services within each pay grade (and with years of service 
     computed under section 205 of title 37, United States Code) 
     are as follows:


                                             COMMISSIONED OFFICERS1
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
O-8                                             8,453.10      8,729.70      8,913.60      8,964.90      9,194.10
O-7                                             7,023.90      7,350.00      7,501.20      7,621.20      7,838.40
O-6                                             5,206.20      5,719.20      6,094.50      6,094.50      6,117.60
O-5                                             4,339.80      4,888.80      5,227.50      5,291.10      5,502.00
O-4                                             3,744.60      4,334.70      4,623.90      4,688.40      4,956.90
O-33                                            3,292.20      3,732.30      4,028.40      4,392.00      4,602.00
O-23                                            2,844.30      3,239.70      3,731.40      3,857.40      3,936.60
O-13                                            2,469.30      2,569.80      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
O-8                                             9,577.20      9,666.30     10,030.20     10,134.30     10,447.80
O-7                                             8,052.90      8,301.30      8,548.80      8,797.20      9,577.20
O-6                                             6,380.10      6,414.60      6,414.60      6,779.10      7,423.80
O-5                                             5,628.60      5,906.40      6,110.10      6,373.20      6,776.40
O-4                                             5,244.60      5,602.80      5,882.40      6,076.20      6,187.50
O-33                                            4,833.00      4,982.70      5,228.40      5,355.90      5,355.90
O-23                                            3,936.60      3,936.60      3,936.60      3,936.60      3,936.60

[[Page 20791]]

 
O-13                                            3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
O-102                                              $0.00    $13,659.00    $13,725.90    $14,011.20    $14,508.60
O-9                                                 0.00     11,946.60     12,118.50     12,367.20     12,801.30
O-8                                            10,900.80     11,319.00     11,598.30     11,598.30     11,598.30
O-7                                            10,236.00     10,236.00     10,236.00     10,236.00     10,287.90
O-6                                             7,802.10      8,180.10      8,395.20      8,613.00      9,035.70
O-5                                             6,968.10      7,158.00      7,373.10      7,373.10      7,373.10
O-4                                             6,252.30      6,252.30      6,252.30      6,252.30      6,252.30
O-33                                            5,355.90      5,355.90      5,355.90      5,355.90      5,355.90
O-23                                            3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
O-13                                            3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
O-102                                         $14,508.60    $15,234.00    $15,234.00    $15,995.70    $15,995.70
O-9                                            12,801.30     13,441.50     13,441.50     14,113.50     14,113.50
O-8                                            11,598.30     11,888.40     11,888.40     12,185.70     12,185.70
O-7                                            10,287.90     10,493.70     10,493.70     10,493.70     10,493.70
O-6                                             9,035.70      9,216.30      9,216.30      9,216.30      9,216.30
O-5                                             7,373.10      7,373.10      7,373.10      7,373.10      7,373.10
O-4                                             6,252.30      6,252.30      6,252.30      6,252.30      6,252.30
O-33                                            5,355.90      5,355.90      5,355.90      5,355.90      5,355.90
O-23                                            3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
O-13                                            3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
O-102                                         $16,795.50    $16,795.50
O-9                                            14,819.10     14,819.10
O-8                                            12,185.70     12,185.70
O-7                                            10,493.70     10,493.70
O-6                                             9,216.30      9,216.30
O-5                                             7,373.10      7,373.10
O-4                                             6,252.30      6,252.30
O-33                                            5,355.90      5,355.90
O-23                                            3,936.60      3,936.60
O-13                                            3,106.50      3,106.50
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned
  oficers in pay grades 0-7 through 0-10 may not exceed the rate of pay for level II 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, Commandant of the Coast Guard, or commander of a unified or specified combatant command (as
  defined in section 161(c) of title 10, United States Code), basic pay for this grade is $17,972.10, regardless
  of cumulative years of service computed under section 205 of title 37, United States Code.
3 This table does not apply to commissioned officers in pay grade O-1, O-2, or O-3 who have been credited with
  over 4 years of active duty service as an enlisted member or warrant officer.



     COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
O-3E                                               $0.00         $0.00         $0.00     $4,392.00     $4,602.00
O-2E                                                0.00          0.00          0.00      3,857.40      3,936.60
O-1E                                                0.00          0.00          0.00      3,106.50      3,317.70
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
0-3E                                           $4,833.00     $4,982.70     $5,228.40     $5,435.40     $5,554.20
0-2E                                            4,062.00      4,273.50     4,437.00.      4,558.80      4,558.80
0-1E                                            3,440.10      3,565.50      3,688.80      3,857.40      3,857.40
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
0-3E                                           $5,715.90     $5,715.90     $5,715.90     $5,715.90     $5,715.90
0-2E                                            4,558.80      4,558.80      4,558.80      4,558.80      4,558.80
0-1E                                            3,857.40      3,857.40      3,857.40      3,857.40      3,857.40
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
0-3E                                           $5,715.90     $5,715.90     $5,715.90     $5,715.90     $5,715.90
0-2E                                            4,558.80      4,558.80      4,558.80      4,558.80      4,558.80
0-1E                                            3,857.40      3,857.40      3,857.40      3,857.40      3,857.40
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------

[[Page 20792]]

 
0-3E                                           $5,715.90     $5,715.90
0-2E                                            4,558.80      4,558.80
0-1E                                            3,857.40      3,857.40
----------------------------------------------------------------------------------------------------------------



                                                WARRANT OFFICERS1
----------------------------------------------------------------------------------------------------------------
                 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                                             3,402.00      3,660.00      3,765.00      3,868.50      4,046.40
W-3                                             3,106.80      3,236.40      3,369.00      3,412.80      3,552.00
W-2                                             2,749.20      3,009.30      3,089.40      3,144.60      3,322.80
W-1                                             2,413.20      2,672.40      2,742.90      2,890.50      3,065.10
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
W-5                                                $0.00         $0.00         $0.00         $0.00         $0.00
W-4                                             4,222.20      4,400.70      4,669.20      4,904.40      5,128.20
W-3                                             3,825.90      4,110.90      4,245.30      4,400.40      4,560.30
W-2                                             3,600.00      3,737.10      3,872.40      4,037.70      4,166.70
W-1                                             3,322.20      3,442.20      3,610.20      3,775.50      3,905.10
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
W-5                                                $0.00     $6,049.50     $6,356.40     $6,585.00     $6,838.20
W-4                                             5,310.90      5,489.70      5,752.20      5,967.60      6,213.60
W-3                                             4,847.70      5,042.40      5,158.50      5,282.10      5,450.10
W-2                                             4,284.00      4,423.80      4,515.90      4,589.40      4,589.40
W-1                                             4,024.50      4,170.00      4,170.00      4,170.00      4,170.00
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
W-5                                            $6,838.20     $7,180.20     $7,180.20     $7,539.30     $7,539.30
W-4                                             6,213.60      6,337.80      6,337.80      6,337.80      6,337.80
W-3                                             5,450.10      5,450.10      5,450.10      5,450.10      5,450.10
W-2                                             4,589.40      4,589.40      4,589.40      4,589.40      4,589.40
W-1                                             4,170.00      4,170.00      4,170.00      4,170.00      4,170.00
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
W-5                                            $7,916.40     $7,916.40
W-4                                             6,337.80      6,337.80
W-3                                             5,450.10      5,450.10
W-2                                             4,589.40      4,589.40
W-1                                             4,170.00      4,170.00
----------------------------------------------------------------------------------------------------------------
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 MEMBERS1
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
E-92                                               $0.00         $0.00         $0.00         $0.00         $0.00
E-8                                                 0.00          0.00          0.00          0.00          0.00
E-7                                             2,339.10      2,553.00      2,650.80      2,780.70      2,881.50
E-6                                             2,023.20      2,226.00      2,324.40      2,419.80      2,519.40
E-5                                             1,854.00      1,977.90      2,073.30      2,171.40      2,323.80
E-4                                             1,699.50      1,786.50      1,883.10      1,978.50      2,062.80
E-3                                             1,534.20      1,630.80      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-13                                            1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
E-92                                               $0.00     $4,110.60     $4,203.90     $4,321.20     $4,459.50
E-8                                             3,364.80      3,513.90      3,606.00      3,716.40      3,835.80
E-7                                             3,055.20      3,152.70      3,326.70      3,471.00      3,569.70
E-6                                             2,744.10      2,831.40      3,000.00      3,051.90      3,089.70
E-5                                             2,483.70      2,613.90      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-13                                            1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------

[[Page 20793]]

 
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
E-92                                           $4,598.40     $4,821.60     $5,010.30     $5,209.20     $5,512.80
E-8                                             4,051.80      4,161.30      4,347.30      4,450.50      4,704.90
E-7                                             3,674.40      3,715.50      3,852.00      3,925.20      4,204.20
E-6                                             3,133.50      3,133.50      3,133.50      3,133.50      3,133.50
E-5                                             2,630.10      2,630.10      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-13                                            1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
E-92                                           $5,512.80     $5,788.50     $5,788.50     $6,078.00     $6,078.00
E-8                                             4,704.90      4,799.10      4,799.10      4,799.10      4,799.10
E-7                                             4,204.20      4,204.20      4,204.20      4,204.20      4,204.20
E-6                                             3,133.50      3,133.50      3,133.50      3,133.50      3,133.50
E-5                                             2,630.10      2,630.10      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1                                             1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
E-92                                           $6,381.90     $6,381.90
E-8                                             4,799.10      4,799.10
E-7                                             4,204.20      4,204.20
E-6                                             3,133.50      3,133.50
E-5                                             2,630.10      2,630.10
E-4                                             2,062.80      2,062.80
E-3                                             1,729.20      1,729.20
E-2                                             1,458.90      1,458.90
E-1                                             1,301.40      1,301.40
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the pay rates specified in this table, the actual 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, the rate of basic pay for an enlisted member in this grade 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, Master Chief Petty Officer of the Coast Guard, or Senior Enlisted Advisor
  to the Chairman of the Joint Chiefs of Staff is $6,642.60, 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 $1,203.90.

     SEC. 602. INCREASE IN MAXIMUM RATE OF BASIC PAY FOR GENERAL 
                   AND FLAG OFFICER GRADES TO CONFORM TO INCREASE 
                   IN PAY CAP FOR SENIOR EXECUTIVE SERVICE 
                   PERSONNEL.

       (a) Increase.--Section 203(a)(2) of title 37, United States 
     Code, is amended by striking ``level III of the Executive 
     Schedule'' and inserting ``level II of the Executive 
     Schedule''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 2007, and shall apply with 
     respect to months beginning on or after that date.

     SEC. 603. ONE-YEAR EXTENSION OF PROHIBITION AGAINST REQUIRING 
                   CERTAIN INJURED MEMBERS TO PAY FOR MEALS 
                   PROVIDED BY MILITARY TREATMENT FACILITIES.

       (a) Extension.--Section 402(h)(3) of title 37, United 
     States Code, is amended by striking ``December 31, 2006'' and 
     inserting ``December 31, 2007''.
       (b) Report on Administration of Prohibition.--Not later 
     than February 1, 2007, the Secretary of Defense shall submit 
     to the congressional defense committees a report on the 
     administration of section 402(h) of title 37, United States 
     Code. The report shall include--
       (1) a description and assessment of the mechanisms used by 
     the military departments to implement the prohibition 
     contained in such section; and
       (2) such recommendations as the Secretary considers 
     appropriate regarding making such prohibition permanent.

     SEC. 604. AVAILABILITY OF SECOND BASIC ALLOWANCE FOR HOUSING 
                   FOR CERTAIN RESERVE COMPONENT OR RETIRED 
                   MEMBERS SERVING IN SUPPORT OF CONTINGENCY 
                   OPERATIONS.

       (a) Availability.--Section 403(g) of title 37, United 
     States Code, is amended--
       (1) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (3), (4), and (5), respectively;
       (2) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) The Secretary concerned may provide a basic allowance 
     for housing to a member described in paragraph (1) at a 
     monthly rate equal to the rate of the basic allowance for 
     housing established under subsection (b) or the overseas 
     basic allowance for housing established under subsection (c), 
     whichever applies to the location at which the member is 
     serving, for members in the same grade at that location 
     without dependents. The member may receive both a basic 
     allowance for housing under paragraph (1) and under this 
     paragraph for the same month, but may not receive the portion 
     of the allowance authorized under section 404 of this title, 
     if any, for lodging expenses if a basic allowance for housing 
     is provided under this paragraph.''; and
       (3) in paragraph (3), as so redesignated, by striking 
     ``Paragraph (1)'' and inserting ``Paragraphs (1) and (2)''.
       (b) Effective Date.--Paragraph (2) of section 403(g) of 
     title 37, United States Code, as added by subsection (a), 
     shall apply with respect to months beginning on or after 
     October 1, 2006.

     SEC. 605. EXTENSION OF TEMPORARY CONTINUATION OF HOUSING 
                   ALLOWANCE FOR DEPENDENTS OF MEMBERS DYING ON 
                   ACTIVE DUTY TO SPOUSES WHO ARE ALSO MEMBERS.

       (a) Extension.--Section 403(l) of title 37, United States 
     Code, is amended--
       (1) by redesignating paragraph (3) as paragraph (4); and
       (2) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) An allowance may be paid under paragraph (2) to the 
     spouse of the deceased member even though the spouse is also 
     a member of the uniformed services. The allowance paid under 
     such paragraph is in addition to any other pay and allowances 
     to which the spouse is entitled as a member.''.
       (b) Effective Date.--
       (1) General rule.--The amendments made by subsection (a) 
     shall take effect on October 1, 2006.
       (2) Transitional rule.--After October 1, 2006, the 
     Secretary of Defense, and the Secretary of Homeland Security 
     in the case of the Coast Guard, may pay the allowance 
     authorized by section 403(l)(2) of title 37, United States 
     Code, to a member of the uniformed services who is the spouse 
     of a member who died on active duty during the one-year 
     period ending on that date, except that the payment of the 
     allowance must terminate within 365 days after the date of 
     the member's death.

[[Page 20794]]



     SEC. 606. PAYMENT OF FULL PREMIUM FOR COVERAGE UNDER 
                   SERVICEMEMBERS' GROUP LIFE INSURANCE PROGRAM 
                   DURING SERVICE IN OPERATION ENDURING FREEDOM OR 
                   OPERATION IRAQI FREEDOM.

       (a) Enhanced Allowance to Cover SGLI Deductions.--
     Subsection (a)(1) of section 437 of title 37, United States 
     Code, is amended by striking ``for the first $150,000'' and 
     all that follows through ``of such title'' and inserting 
     ``for the amount of Servicemembers' Group Life Insurance 
     coverage held by the member under section 1967 of such 
     title''.
       (b) Conforming Amendments.--Such section is further 
     amended--
       (1) in subsection (a)--
       (A) by striking ``(1)'' before ``in the case of''; and
       (B) by striking paragraph (2);
       (2) by striking subsection (b); and
       (3) by redesignating subsection (c) as subsection (b) and 
     in paragraph (2) of that subsection by striking ``coverage 
     amount specified in subsection (a)(1) or in effect pursuant 
     to subsection (b),'' and inserting ``maximum coverage amount 
     available for such insurance,''.
       (c) Clerical Amendments.--The heading for such section, and 
     the item relating to such section in the table of sections at 
     the beginning of chapter 7 of such title, are each amended by 
     striking the fourth and fifth words.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the first day of the first month 
     beginning on or after the date of the enactment of this Act 
     and shall apply with respect to service by members of the 
     Armed Forces in the theater of operations for Operation 
     Enduring Freedom or Operation Iraqi Freedom for months 
     beginning on or after that date.

     SEC. 607. CLARIFICATION OF EFFECTIVE DATE OF PROHIBITION ON 
                   COMPENSATION FOR CORRESPONDENCE COURSES.

       Section 206(d) of title 37, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(3) The prohibition in paragraph (1), including the 
     prohibition as it relates to a member of the National Guard 
     while not in Federal service, applies to--
       ``(A) any work or study performed on or after September 7, 
     1962, unless that work or study is specifically covered by 
     the exception in paragraph (2); and
       ``(B) any claim based on that work or study arising after 
     that date.''.

     SEC. 608. EXTENSION OF PILOT PROGRAM ON CONTRIBUTIONS TO 
                   THRIFT SAVINGS PLAN FOR INITIAL ENLISTEES IN 
                   THE ARMY.

       (a) Extension.--Subsection (a) of section 606 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3287; 37 U.S.C. 211 note) is 
     amended by striking ``During fiscal year 2006'' and inserting 
     ``During the period beginning on January 6, 2006, and ending 
     on December 31, 2008''.
       (b) Report Date.--Subsection (d)(1) of such section is 
     amended by striking ``February 1, 2007'' and inserting 
     ``February 1, 2008''.
           Subtitle B--Bonuses and Special and Incentive Pays

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

       (a) Selected Reserve Reenlistment Bonus.--Section 308b(g) 
     of title 37, United States Code, is amended by striking 
     ``December 31, 2006'' and inserting ``December 31, 2007''.
       (b) Selected Reserve Affiliation or Enlistment Bonus.--
     Section 308c(i) of such title is amended by striking 
     ``December 31, 2006'' and inserting ``December 31, 2007''.
       (c) Special Pay for Enlisted Members Assigned to Certain 
     High Priority Units.--Section 308d(c) of such title is 
     amended by striking ``December 31, 2006'' and inserting 
     ``December 31, 2007''.
       (d) Ready Reserve Enlistment Bonus for Persons Without 
     Prior Service.--Section 308g(f)(2) of such title is amended 
     by striking ``December 31, 2006'' and inserting ``December 
     31, 2007''.
       (e) Ready Reserve Enlistment and Reenlistment Bonus for 
     Persons With Prior Service.--Section 308h(e) of such title is 
     amended by striking ``December 31, 2006'' and inserting 
     ``December 31, 2007''.
       (f) Selected Reserve Enlistment Bonus for Persons With 
     Prior Service.--Section 308i(f) of such title is amended by 
     striking ``December 31, 2006'' and inserting ``December 31, 
     2007''.

     SEC. 612. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
                   AUTHORITIES FOR 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, 2006'' and inserting ``December 31, 
     2007''.
       (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, 
     2007'' and inserting ``January 1, 2008''.
       (c) Accession Bonus for Registered Nurses.--Section 
     302d(a)(1) of title 37, United States Code, is amended by 
     striking ``December 31, 2006'' and inserting ``December 31, 
     2007''.
       (d) Incentive Special Pay for Nurse Anesthetists.--Section 
     302e(a)(1) of such title is amended by striking ``December 
     31, 2006'' and inserting ``December 31, 2007''.
       (e) Special Pay for Selected Reserve Health Professionals 
     in Critically Short Wartime Specialties.--Section 302g(e) of 
     such title is amended by striking ``December 31, 2006'' and 
     inserting ``December 31, 2007''.
       (f) Accession Bonus for Dental Officers.--Section 
     302h(a)(1) of such title is amended by striking ``December 
     31, 2006'' and inserting ``December 31, 2007''.
       (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) 
     of such title is amended by striking ``December 31, 2006'' 
     and inserting ``December 31, 2007''.

     SEC. 613. 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, 2006'' and 
     inserting ``December 31, 2007''.
       (b) Nuclear Career Accession Bonus.--Section 312b(c) of 
     such title is amended by striking ``December 31, 2006'' and 
     inserting ``December 31, 2007''.
       (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
     of such title is amended by striking ``December 31, 2006'' 
     and inserting ``December 31, 2007''.

     SEC. 614. EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF 
                   OTHER BONUSES AND SPECIAL PAYS.

       (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
     title 37, United States Code, is amended by striking 
     ``December 31, 2006'' and inserting ``December 31, 2007''.
       (b) Assignment Incentive Pay.--Section 307a(g) of such 
     title is amended by striking ``December 31, 2007'' and 
     inserting ``December 31, 2008''.
       (c) Reenlistment Bonus for Active Members.--Section 308(g) 
     of such title is amended by striking ``December 31, 2006'' 
     and inserting ``December 31, 2007''.
       (d) Enlistment Bonus.--Section 309(e) of such title is 
     amended by striking ``December 31, 2006'' and inserting 
     ``December 31, 2007''.
       (e) Retention Bonus for Members With Critical Military 
     Skills or Assigned to High Priority Units.--Section 323(i) of 
     such title is amended by striking ``December 31, 2006'' and 
     inserting ``December 31, 2007''.
       (f) Accession Bonus for New Officers in Critical Skills.--
     Section 324(g) of such title is amended by striking 
     ``December 31, 2006'' and inserting ``December 31, 2007''.
       (g) Incentive Bonus for Conversion to Military Occupational 
     Specialty to Ease Personnel Shortage.--Section 326(g) of such 
     title is amended by striking ``December 31, 2006'' and 
     inserting ``December 31, 2007''.
       (h) Incentive Bonus for Transfer Between the Armed 
     Forces.--Section 327(h) of such title is amended by striking 
     ``December 31, 2006'' and inserting ``December 31, 2009''.

     SEC. 615. EXPANSION OF ELIGIBILITY OF DENTAL OFFICERS FOR 
                   ADDITIONAL SPECIAL PAY.

       (a) Repeal of Internship and Residency Exception.--Section 
     302b(a)(4) of title 37, United States Code, is amended by 
     striking the first sentence and inserting the following new 
     sentence: ``An officer who is entitled to variable special 
     pay under paragraph (2) or (3) is also entitled to additional 
     special pay for any 12-month period during which an agreement 
     executed under subsection (b) is in effect with respect to 
     the officer.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2006.

     SEC. 616. INCREASE IN MAXIMUM ANNUAL RATE OF SPECIAL PAY FOR 
                   SELECTED RESERVE HEALTH CARE PROFESSIONALS IN 
                   CRITICALLY SHORT WARTIME SPECIALTIES.

       (a) Increase.--Section 302g(a) of title 37, United States 
     Code, is amended by striking ``$10,000'' and inserting 
     ``$25,000''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 2006, and shall apply to 
     agreements entered into or revised under section 302g of 
     title 37, United States Code, on or after that date.

     SEC. 617. EXPANSION AND ENHANCEMENT OF ACCESSION BONUS 
                   AUTHORITIES FOR CERTAIN OFFICERS IN HEALTH CARE 
                   SPECIALITIES.

       (a) Increase in Maximum Amount of Accession Bonus for 
     Dental Officers.--Section 302h(a)(2) of title 37, United 
     States Code, is amended by striking ``$30,000'' and inserting 
     ``$200,000''.
       (b) Accession Bonus for Medical Officers in Critically 
     Short Wartime Specialities.--Chapter 5 of title 37, United 
     States Code, is amended by inserting after section 302j the 
     following new section:

     ``Sec. 302k. Special pay: accession bonus for medical 
       officers in critically short wartime specialties

       ``(a) Accession Bonus Authorized.--A person who is a 
     graduate of an accredited school of medicine or osteopathy in 
     a specialty designated by regulations as a critically short 
     wartime specialty and who executes a written agreement 
     described in subsection (d) to accept a commission as an 
     officer of the armed forces and remain on active duty for a 
     period of not less than four consecutive years may, upon the 
     acceptance of the agreement by the Secretary concerned, be 
     paid an accession bonus in the amount determined by the 
     Secretary concerned.
       ``(b) Amount of Bonus.--The amount of an accession bonus 
     under subsection (a) may not exceed $400,000.
       ``(c) Limitation on Eligibility for Bonus.--A person may 
     not be paid a bonus under subsection (a) if--
       ``(1) the person, in exchange for an agreement to accept an 
     appointment as an officer, received

[[Page 20795]]

     financial assistance from the Department of Defense to pursue 
     a course of study in medicine or osteopathy; or
       ``(2) the Secretary concerned determines that the person is 
     not qualified to become and remain certified as a doctor or 
     osteopath in a specialty designated by regulations as a 
     critically short wartime specialty.
       ``(d) Agreement.--The agreement referred to in subsection 
     (a) shall provide that, consistent with the needs of the 
     armed force concerned, the person executing the agreement 
     will be assigned to duty, for the period of obligated service 
     covered by the agreement, as an officer of the Medical Corps 
     of the Army or the Navy or as an officer of the Air Force 
     designated as a medical officer in a specialty designated by 
     regulations as a critically short wartime specialty.
       ``(e) Repayment.--A person who, after executing an 
     agreement under subsection (a) is not commissioned as an 
     officer of the armed forces, does not become licensed as a 
     doctor or osteopath, as the case may be, or does not complete 
     the period of active duty in a specialty specified in the 
     agreement, shall be subject to the repayment provisions of 
     section 303a(e) of this title.
       ``(f) Termination of Authority.--No agreement under this 
     section may be entered into after December 31, 2007.''.
       (c) Accession Bonus for Dental Specialist Officers in 
     Critically Short Wartime Specialities.--Such chapter is 
     further amended by inserting after section 302k, as added by 
     subsection (b), the following new section:

     ``Sec. 302l. Special pay: accession bonus for dental 
       specialist officers in critically short wartime specialties

       ``(a) Accession Bonus Authorized.--A person who is a 
     graduate of an accredited dental school in a specialty 
     designated by regulations as a critically short wartime 
     specialty and who executes a written agreement described in 
     subsection (d) to accept a commission as an officer of the 
     armed forces and remain on active duty for a period of not 
     less than four consecutive years may, upon the acceptance of 
     the agreement by the Secretary concerned, be paid an 
     accession bonus in the amount determined by the Secretary 
     concerned.
       ``(b) Amount of Bonus.--The amount of an accession bonus 
     under subsection (a) may not exceed $400,000.
       ``(c) Limitation on Eligibility for Bonus.--A person may 
     not be paid a bonus under subsection (a) if--
       ``(1) the person, in exchange for an agreement to accept an 
     appointment as an officer, received financial assistance from 
     the Department of Defense to pursue a course of study in 
     dentistry; or
       ``(2) the Secretary concerned determines that the person is 
     not qualified to become and remain certified as a dentist in 
     a specialty designated by regulations as a critically short 
     wartime specialty.
       ``(d) Agreement.--The agreement referred to in subsection 
     (a) shall provide that, consistent with the needs of the 
     armed force concerned, the person executing the agreement 
     will be assigned to duty, for the period of obligated service 
     covered by the agreement, as an officer of the Dental Corps 
     of the Army or the Navy or as an officer of the Air Force 
     designated as a dental officer in a specialty designated by 
     regulations as a critically short wartime specialty.
       ``(e) Repayment.--A person who, after executing an 
     agreement under subsection (a) is not commissioned as an 
     officer of the armed forces, does not become licensed as a 
     dentist, or does not complete the period of active duty in a 
     specialty specified in the agreement, shall be subject to the 
     repayment provisions of section 303a(e) of this title.
       ``(f) Coordination With Other Accession Bonus Authority.--A 
     person eligible to execute an agreement under both subsection 
     (a) and section 302h of this title shall elect which 
     authority to execute the agreement under. A person may not 
     execute an agreement under both subsection (a) and such 
     section 302h.
       ``(g) Termination of Authority.--No agreement under this 
     section may be entered into after December 31, 2007.''.
       (d) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 302j the following new items:

``302k. Special pay: accession bonus for medical officers in critically 
              short wartime specialties.
``302l. Special pay: accession bonus for dental specialist officers in 
              critically short wartime specialties.''.

       (e) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2006, and shall apply to 
     agreements--
       (1) entered into or revised under section 302h of title 37, 
     United States Code, on or after that date; or
       (2) entered into under section 302k or 302l of such title, 
     as added by subsections (b) and (c), on or after that date.

     SEC. 618. AUTHORITY TO PROVIDE LUMP SUM PAYMENT OF NUCLEAR 
                   OFFICER INCENTIVE PAY.

       (a) Lump Sum Payment Option.--Subsection (a) of section 312 
     of title 37, United States Code, is amended in the matter 
     after paragraph (3)--
       (1) by striking ``in equal annual installments'' and 
     inserting ``in a single lump-sum or in annual installments of 
     equal or different amounts''; and
       (2) by striking ``with the number of installments being 
     equal to the number of years covered by the contract plus 
     one'' and inserting ``and, if the special pay will be paid in 
     annual installments, the number of installments may not 
     exceed the number of years covered by the agreement plus 
     one''.
       (b) Stylistic and Conforming Amendments.--Such section is 
     further amended--
       (1) by redesignating subsections (b) through (e) as 
     subsections (c) through (f), respectively;
       (2) in subsection (a)--
       (A) by striking ``an officer'' in the matter before 
     paragraph (1) and inserting ``the Secretary may pay special 
     pay under subsection (b) to an officer'';
       (B) by striking the comma at the end of paragraph (3) and 
     inserting a period;
       (C) by striking ``may, upon'' and all that follows through 
     ``The Secretary of the Navy shall'' and inserting the 
     following:
       ``(b) Payment Amount; Payment Options.--(1) The total 
     amount paid to an officer under an agreement under subsection 
     (a) or (e)(1) may not exceed $30,000 for each year of the 
     active-service agreement. Amounts paid under the agreement 
     are in addition to all other compensation to which the 
     officer is entitled.
       ``(2) The Secretary shall'';
       (D) by striking ``Upon acceptance of the agreement by the 
     Secretary or his designee'' and inserting the following:
       ``(3) Upon acceptance of an agreement under subsection (a) 
     or (e)(1) by the Secretary''; and
       (E) by striking ``The Secretary (or his designee)'' and 
     inserting the following:
       ``(4) The Secretary'';
       (3) in subsection (c), as redesignated by paragraph (1), by 
     striking ``subsection (a) or subsection (d)(1)'' and 
     inserting ``subsection (b) or (e)(1)''; and
       (4) in the first sentence of subsection (e)(1), as 
     redesignated by paragraph (1)--
       (A) by striking ``such subsection'' and inserting 
     ``subsection (b)''; and
       (B) by striking ``that subsection'' and inserting ``this 
     subsection''.
       (c) Stylistic Amendments.--Such section is further 
     amended--
       (1) in subsection (a), by inserting ``Special Pay 
     Authorized; Eligibility.--'' after ``(a)'';
       (2) in subsection (c), as redesignated by subsection 
     (b)(1), by inserting ``Repayment.--'' after ``(c)'';
       (3) in subsection (d), as redesignated by subsection 
     (b)(1), by inserting ``Relation to Service Obligation.--'' 
     after ``(d)'';
       (4) in subsection (e), as redesignated by subsection 
     (b)(1), by inserting ``New Agreement.--'' after ``(e)''; and
       (5) in subsection (f), as redesignated by subsection 
     (b)(1), by inserting ``Duration of Authority.--'' after 
     ``(f)''.

     SEC. 619. INCREASE IN MAXIMUM AMOUNT OF NUCLEAR CAREER 
                   ACCESSION BONUS.

       (a) Increase.--Section 312b(a)(1) of title 37, United 
     States Code, is amended by striking ``$20,000'' and inserting 
     ``$30,000''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 2006, and shall apply to 
     agreements entered into or revised under section 312b of 
     title 37, United States Code, on or after that date.

     SEC. 620. INCREASE IN MAXIMUM AMOUNT OF INCENTIVE BONUS FOR 
                   TRANSFER BETWEEN ARMED FORCES.

       (a) Increase.--Section 327(d)(1) of title 37, United States 
     Code, is amended by striking ``$2,500'' and inserting 
     ``$10,000''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 2006, and shall apply to 
     agreements entered into or revised under section 327 of title 
     37, United States Code, on or after that date.

     SEC. 621. ADDITIONAL AUTHORITIES AND INCENTIVES TO ENCOURAGE 
                   RETIRED MEMBERS AND RESERVE COMPONENT MEMBERS 
                   TO VOLUNTEER TO SERVE ON ACTIVE DUTY IN HIGH-
                   DEMAND, LOW-DENSITY ASSIGNMENTS.

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

     ``Sec. 329. Incentive bonus: retired members and reserve 
       component members volunteering for high-demand, low-density 
       assignments

       ``(a) Incentive Bonus Authorized.--The Secretary of Defense 
     may pay a bonus under this section to a retired member or 
     former member of the Army, Navy, Air Force, or Marine Corps 
     or to a member of a reserve component of the Army, Navy, Air 
     Force, or Marine Corps (who is not otherwise serving on 
     active duty) who executes a written agreement to serve on 
     active duty for a period specified in the agreement in an 
     assignment intended to alleviate the need for members in a 
     high-demand, low-density military capability or in any other 
     specialty designated by the Secretary as critical to meet 
     wartime or peacetime requirements.
       ``(b) Maximum Amount of Bonus.--A bonus under subsection 
     (a) and any incentive developed under subsection (d) may not 
     exceed $50,000.
       ``(c) Methods of Payment.--At the election of the Secretary 
     of Defense, a bonus under subsection (a) and any incentive 
     developed under subsection (d) shall be paid or provided--
       ``(1) when the member commences service on active duty; or
       ``(2) in annual installments in such amounts as may be 
     determined by the Secretary.
       ``(d) Development of Additional Incentives.--(1) The 
     Secretary of Defense may develop and provide to members 
     referred to in subsection (a) additional incentives to 
     encourage such members to return to active duty in 
     assignments intended to alleviate the need for members in a 
     high-demand, low-density military capability or in others 
     specialties designated by the

[[Page 20796]]

     Secretary as critical to meet wartime or peacetime 
     requirements.
       ``(2) The provision of any incentive developed under this 
     subsection shall be subject to an agreement, as required for 
     bonuses under subsection (a).
       ``(3) Not later than 30 days before first offering any 
     incentive developed under this subsection, the Secretary 
     shall submit to the congressional defense committees a report 
     that contains a description of that incentive and an 
     explanation why a bonus under subsection (a) or other pay and 
     allowances are not sufficient to alleviate the high-demand, 
     low-density military capability or otherwise fill critical 
     military specialties.
       ``(4) In this subsection, the term `congressional defense 
     committees' has the meaning given that term in section 
     101(a)(16) of title 10.
       ``(e) Relationship to Other Pay and Allowances.--A bonus or 
     other incentive paid or provided to a member under this 
     section is in addition to any other pay and allowances to 
     which the member is entitled.
       ``(f) Prohibition on Promotions.--The written agreement 
     required by subsections (a) and (d) shall specify that a 
     member who is paid or receives a bonus or other incentive 
     under this section is not eligible for promotion while 
     serving in the assignment for which the bonus or other 
     incentive is provided.
       ``(g) Repayment.--A member who does not complete the period 
     of active duty specified in the agreement executed under 
     subsection (a) or (d) shall be subject to the repayment 
     provisions of section 303a(e) of this title.
       ``(h) High-Demand, Low-Density Military Capability.--In 
     this section, the term `high-demand, low-density military 
     capability' means a combat, combat support or service support 
     capability, unit, system, or occupational specialty that the 
     Secretary of Defense determines has funding, equipment, or 
     personnel levels that are substantially below the levels 
     required to fully meet or sustain actual or expected 
     operational requirements set by regional commanders.
       ``(i) Regulations.--The Secretary of Defense may prescribe 
     such regulations as the Secretary considers necessary to 
     carry out this section.
       ``(j) Termination of Authority.--No agreement under 
     subsection (a) or (d) may be entered into after December 31, 
     2010.''.
       (b) Temporary Authority to Order Retired Members to Active 
     Duty in High-Demand, Low-Density Military Capability.--
     Section 688a of title 10, United States Code, is amended--
       (1) in subsection (a)--
       (A) by striking the first sentence and inserting the 
     following new sentence: ``The Secretary of a military 
     department may order to active duty a retired member who 
     agrees to serve on active duty in an assignment intended to 
     alleviate a high-demand, low-density military capability or 
     in any other specialty designated by the Secretary as 
     critical to meet wartime or peacetime requirements.''; and
       (B) in the second sentence, by striking ``officer'' both 
     places it appears and inserting ``member'';
       (2) in subsection (b), by striking ``an officer'' and 
     inserting ``a member'';
       (3) in subsection (c), by striking ``500 officers'' and 
     inserting ``1,000 members'';
       (4) in subsection (d), by striking ``officer'' and 
     inserting ``member'';
       (5) in subsection (e), by striking ``Officers'' and 
     inserting ``Retired members'';
       (6) in subsection (f)--
       (A) by striking ``An officer'' and inserting ``A retired 
     member''; and
       (B) by striking ``September 30, 2008'' and inserting 
     ``December 31, 2010''; and
       (7) by adding at the end the following new subsection:
       ``(g) High-Demand, Low-Density Military Capability 
     Defined.--In this section, the term `high-demand, low-density 
     military capability' means a combat, combat support or 
     service support capability, unit, system, or occupational 
     specialty that the Secretary of Defense determines has 
     funding, equipment, or personnel levels that are 
     substantially below the levels required to fully meet or 
     sustain actual or expected operational requirements set by 
     regional commanders.''.
       (c) Exclusion From Active-Duty List.--Section 641 of title 
     10, United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(6) Officers appointed pursuant to an agreement under 
     section 329 of title 37.''.
       (d) Clerical Amendments.--
       (1) Title 37.--The table of sections at the beginning of 
     chapter 5 of title 37, United States Code, is amended by 
     adding at the end the following new item:

``329. Incentive bonus: retired members and reserve component members 
              volunteering for high-demand, low-density assignments.''.

       (2) Title 10.--(A) The heading of section 688a of title 10, 
     United States Code, is amended to read as follows:

     ``Sec. 688a. Retired members: temporary authority to order to 
       active duty in high-demand, low-density assignments''.

       (B) The table of sections at the beginning of chapter 39 of 
     such title is amended by striking the item relating to 
     section 688a and inserting the following new item:

``688a. Retired members: temporary authority to order to active duty in 
              high-demand, low-density assignments.''.

       (e) Effective Date.--No agreement may be entered into under 
     section 329 of title 37, United States Code, as added by 
     subsection (a), before October 1, 2006.
       (f) Limitation on Fiscal Year 2007 Obligations.--During 
     fiscal year 2007, obligations incurred under section 329 of 
     title 37, United States Code, as added by subsection (a), to 
     provide bonuses or other incentives to retired members and 
     former members of the Army, Navy, Air Force, or Marine Corps 
     or to members of the reserve components of the Army, Navy, 
     Air Force, and Marine Corps may not exceed $5,000,000.

     SEC. 622. ACCESSION BONUS FOR MEMBERS OF THE ARMED FORCES 
                   APPOINTED AS COMMISSIONED OFFICERS AFTER 
                   COMPLETING OFFICER CANDIDATE SCHOOL.

       (a) Accession Bonus Authorized.--
       (1) In general.--Chapter 5 of title 37, United States Code, 
     is amended by inserting after section 329, as added by 
     section 621 of this Act, the following new section:

     ``Sec. 330. Special pay: accession bonus for officer 
       candidates

       ``(a) Accession Bonus Authorized.--Under regulations 
     prescribed by the Secretary concerned, a person who executes 
     a written agreement described in subsection (c) may be paid 
     an accession bonus under this section upon acceptance of the 
     agreement by the Secretary concerned.
       ``(b) Amount of Bonus.--The amount of an accession bonus 
     under subsection (a) may not exceed $8,000.
       ``(c) Agreement.--A written agreement referred to in 
     subsection (a) is a written agreement by a person--
       ``(1) to complete officer candidate school;
       ``(2) to accept a commission or appointment as an officer 
     of the armed forces; and
       ``(3) to serve on active duty as a commissioned officer for 
     a period specified in the agreement.
       ``(d) Payment Method.--Upon acceptance of a written 
     agreement under subsection (a) by the Secretary concerned, 
     the total amount of the accession bonus payable under the 
     agreement becomes fixed. The agreement shall specify whether 
     the accession bonus will be paid in a lump sum or 
     installments.
       ``(e) Repayment.--A person who, having received all or part 
     of the bonus under a written agreement under subsection (a), 
     does not complete the total period of active duty as a 
     commissioned officer as specified in such agreement shall be 
     subject to the repayment provisions of section 303a(e) of 
     this title.
       ``(f) Termination of Authority.--No agreement under this 
     section may be entered into after December 31, 2007.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 329, as added by section 621, the 
     following new item:

``330. Special pay: accession bonus for officer candidates.''.

       (3) Effective date.--The amendments made by this subsection 
     shall take effect on October 1, 2006.
       (b) Authority for Payment of Bonus Under Earlier 
     Agreements.--
       (1) Authority.--The Secretary of the Army may pay a bonus 
     to any person who, during the period beginning on April 1, 
     2005, and ending on April 6, 2006, executed an agreement to 
     enlist for the purpose of attending officer candidate school 
     and receive a bonus under section 309 of title 37, United 
     States Code, and who has completed the terms of the agreement 
     required for payment of the bonus.
       (2) Amount of bonus.--The amount of the bonus payable to a 
     person under this subsection may not exceed $8,000.
       (3) Relation to enlistment bonus.--The bonus payable under 
     this subsection is in addition to a bonus payable under 
     section 309 of title 37, United States Code, or any other 
     provision of law.

     SEC. 623. MODIFICATION OF CERTAIN AUTHORITIES APPLICABLE TO 
                   THE TARGETED SHAPING OF THE ARMED FORCES.

       (a) Voluntary Separation Pay and Benefits.--
       (1) Increase in maximum amount of pay.--Subsection (f) of 
     section 1175a of title 10, United States Code, is amended by 
     striking ``two times'' and inserting ``four times''.
       (2) Extension of authority.--Subsection (k)(1) of such 
     section is amended by striking ``December 31, 2008'' and 
     inserting ``December 31, 2012''.
       (3) Repeal of limitation on applicability.--Subsection (b) 
     of section 643 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3310; 10 
     U.S.C. 1175a note) is repealed.
       (b) Enhanced Authority for Early Discharges.--
       (1) Renewal of authority.--Subsection (a) of section 638a 
     of title 10, United States Code, is amended by inserting 
     ``and for the purpose of subsection (b)(4) during the period 
     beginning on October 1, 2006, and ending on December 31, 
     2012,'' after ``December 31, 2001,''.
       (2) Relaxation of limitation on selective early 
     discharge.--Subsection (d)(2) of such section is amended--
       (A) in subparagraph (A), by inserting before the semicolon 
     the following: ``, except that during the period beginning on 
     October 1, 2006, and ending on December 31, 2012, such number 
     may be more than 30 percent of the officers considered in 
     each competitive category, but may not be more than 30 
     percent of the number of officers considered in each grade''; 
     and

[[Page 20797]]

       (B) in subparagraph (B), by inserting before the period the 
     following: ``, except that during the period beginning on 
     October 1, 2006, and ending on December 31, 2012, such number 
     may be more than 30 percent of the officers considered in 
     each competitive category, but may not be more than 30 
     percent of the number of officers considered in each grade''.

     SEC. 624. ENHANCEMENT OF BONUS TO ENCOURAGE CERTAIN PERSONS 
                   TO REFER OTHER PERSONS FOR ENLISTMENT IN THE 
                   ARMY.

       (a) Individuals Eligible for Bonus.--Subsection (a) of 
     section 645 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3310) is 
     amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) Authority.--The Secretary'';
       (2) by striking ``a member of the Army, whether in the 
     regular component of the Army or in the Army National Guard 
     or Army Reserve,'' and inserting ``an individual referred to 
     in paragraph (2)''; and
       (3) by adding at the end the following new paragraph:
       ``(2) Individuals eligible for bonus.--Subject to 
     subsection (c), the following individuals are eligible for a 
     referral bonus under this section:
       ``(A) A member in the regular component of the Army.
       ``(B) A member of the Army National Guard.
       ``(C) A member of the Army Reserve.
       ``(D) A member of the Army in a retired status, including a 
     member under 60 years of age who, but for age, would be 
     eligible for retired pay.
       ``(E) A civilian employee of the Department of the Army.''.
       (b) Certain Referrals Ineligible.--Subsection (c) of such 
     section is amended by adding at the end the following new 
     paragraph:
       ``(3) Junior reserve officers' training corps 
     instructors.--A member of the Army detailed under subsection 
     (c)(1) of section 2031 of title 10, United States Code, to 
     serve as an administrator or instructor in the Junior Reserve 
     Officers' Training Corps program or a retired member of the 
     Army employed as an administrator or instructor in the 
     program under subsection (d) of such section may not be paid 
     a bonus under subsection (a).''.
       (c) Amount of Bonus.--Subsection (d) of such section is 
     amended to read as follows:
       ``(d) Amount of Bonus.--The amount of the bonus payable for 
     a referral under subsection (a) may not exceed $2,000. The 
     amount shall be payable in two lump sums as provided in 
     subsection (e).''.
       (d) Payment of Bonus.--Subsection (e) of such section is 
     amended to read as follows:
       ``(e) Payment.--A bonus payable for a referral of a person 
     under subsection (a) shall be paid as follows:
       ``(1) Not more than $1,000 shall be paid upon the 
     commencement of basic training by the person referred.
       ``(2) Not more than $1,000 shall be paid upon the 
     completion of basic training and individual advanced training 
     by the person referred.''.
       (e) Coordination With Receipt of Retired Pay.--Such section 
     is further amended--
       (1) by redesignating subsection (g) as subsection (h); and
       (2) by inserting after subsection (f) the following new 
     subsection (g):
       ``(g) Coordination With Receipt of Retired Pay.--A bonus 
     paid under this section to a member of the Army in a retired 
     status is in addition to any compensation to which the member 
     is entitled under title 10, 37, or 38, United States Code, or 
     any other provision of law.''.
       (f) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act, 
     and shall apply with respect to bonuses payable under section 
     645 of the National Defense Authorization Act for Fiscal Year 
     2006, as amended by this section, on or after that date.
            Subtitle C--Travel and Transportation Allowances

     SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR 
                   TRANSPORTATION OF FAMILY MEMBERS INCIDENT TO 
                   ILLNESS OR INJURY OF MEMBERS.

       Section 411h(b)(1) of title 37, United States Code, is 
     amended--
       (1) by striking ``and'' at the end of subparagraph (C);
       (2) by striking the period at the end of subparagraph (D) 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(E) a person related to the member as described in 
     subparagraph (A), (B), (C), or (D) who is also a member of 
     the uniformed services.''.
             Subtitle D--Retired Pay and Survivor Benefits

     SEC. 641. RETIRED PAY OF GENERAL AND FLAG OFFICERS TO BE 
                   BASED ON RATES OF BASIC PAY PROVIDED BY LAW.

       (a) Determination of Retired Pay Base.--Chapter 71 of title 
     10, United States Code, is amended by inserting after section 
     1407 the following new section:

     ``Sec. 1407a. Retired pay base: officers retired in general 
       or flag officer grades

       ``(a) Rates of Basic Pay to Be Used in Determination.--In a 
     case in which the determination under section 1406 or 1407 of 
     this title of the retired pay base applicable to the 
     computation of the retired pay of a covered general or flag 
     officer involves a rate of basic pay payable to that officer 
     for any period that was subject to a reduction under section 
     203(a)(2) of title 37 for such period, such retired-pay-base 
     determination shall be made using the rate of basic pay for 
     such period provided by law, rather than such rate as so 
     reduced.
       ``(b) Covered General and Flag Officers.--In this section, 
     the term `covered general or flag officer' means a member or 
     former member who after September 30, 2006, is retired in a 
     general officer grade or flag officer grade.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1407 the following new item:

``1407a.  Retired pay base: officers retired in general or flag officer 
              grades.''.

     SEC. 642. INAPPLICABILITY OF RETIRED PAY MULTIPLIER MAXIMUM 
                   PERCENTAGE TO CERTAIN SERVICE OF MEMBERS OF THE 
                   ARMED FORCES IN EXCESS OF 30 YEARS.

       (a) In General.--Paragraph (3) of section 1409(b) of title 
     10, United States Code, is amended to read as follows:
       ``(3) 30 years of service.--
       ``(A) Retirement before january 1, 2007.--In the case of a 
     member who retires before January 1, 2007, with more than 30 
     years of creditable service, the percentage to be used under 
     subsection (a) is 75 percent.
       ``(B) Retirement after december 31, 2006.--In the case of a 
     member who retires after December 31, 2006, with more than 30 
     years of creditable service, the percentage to be used under 
     subsection (a) is the sum of--
       ``(i) 75 percent; and
       ``(ii) the product (stated as a percentage) of--

       ``(I) 2\1/2\; and
       ``(II) the member's years of creditable service (as defined 
     in subsection (c)) in excess of 30 years of creditable 
     service, under conditions authorized for purposes of this 
     subparagraph during a period designated by the Secretary of 
     Defense for purposes of this subparagraph.''.

       (b) Retired Pay for Non-Regular Service.--Section 12739(c) 
     of such title is amended--
       (1) by striking ``The total amount'' and inserting ``(1) 
     Except as provided in paragraph (2), the total amount''; and
       (2) by adding at the end the following new paragraph:
       ``(2) In the case of a person who retires after December 
     31, 2006, with more than 30 years of service credited to that 
     person under section 12733 of this title, the total amount of 
     the monthly retired pay computed under subsections (a) and 
     (b) may not exceed the sum of--
       ``(A) 75 percent of the retired pay base upon which the 
     computation is based; and
       ``(B) the product of--
       ``(i) the retired pay base upon which the computation is 
     based; and
       ``(ii) 2\1/2\ percent of the years of service credited to 
     that person under section 12733 of this title, for service 
     under conditions authorized for purposes of this paragraph 
     during a period designated by the Secretary of Defense for 
     purposes of this paragraph.''.

     SEC. 643. MILITARY SURVIVOR BENEFIT PLAN BENEFICIARIES UNDER 
                   INSURABLE INTEREST COVERAGE.

       (a) Authority to Elect New Beneficiary.--Section 1448(b)(1) 
     of title 10, United States Code, is amended--
       (1) by inserting ``or under subparagraph (G) of this 
     paragraph'' in the second sentence of subparagraph (E) before 
     the period at the end; and
       (2) by adding at the end the following new subparagraph:
       ``(G) Election of new beneficiary upon death of previous 
     beneficiary.--
       ``(i) Authority for election.--If the reason for 
     discontinuation in the Plan is the death of the beneficiary, 
     the participant in the Plan may elect a new beneficiary. Any 
     such beneficiary must be a natural person with an insurable 
     interest in the participant. Such an election may be made 
     only during the 180-day period beginning on the date of the 
     death of the previous beneficiary.
       ``(ii) Procedures.--Such an election shall be in writing, 
     signed by the participant, and made in such form and manner 
     as the Secretary concerned may prescribe. Such an election 
     shall be effective the first day of the first month following 
     the month in which the election is received by the Secretary.
       ``(iii) Vitiation of election by participant who dies 
     within two years of election.--If a person providing an 
     annuity under a election under clause (i) dies before the end 
     of the two-year period beginning on the effective date of the 
     election--

       ``(I) the election is vitiated; and
       ``(II) the amount by which the person's retired pay was 
     reduced under section 1452 of this title that is attributable 
     to the election shall be paid in a lump sum to the person who 
     would have been the deceased person's beneficiary under the 
     vitiated election if the deceased person had died after the 
     end of such two-year period.''.

       (b) Change in Premium for Coverage of New Beneficiary.--
     Section 1452(c) of such title is amended by adding at the end 
     the following new paragraph:
       ``(5) Rule for designation of new insurable interest 
     beneficiary following death of original beneficiary.--The 
     Secretary of Defense shall prescribe in regulations premiums 
     which a participant making an election under section 
     1448(b)(1)(G) of this title shall be required to pay for 
     participating in the Plan pursuant to that election. The 
     total amount of the premiums to be paid by a participant 
     under the regulations shall be equal to the sum of the 
     following:
       ``(A) The total additional amount by which the retired pay 
     of the participant would have

[[Page 20798]]

     been reduced before the effective date of the election if the 
     original beneficiary (i) had not died and had been covered 
     under the Plan through the date of the election, and (ii) had 
     been the same number of years younger than the participant 
     (if any) as the new beneficiary designated under the 
     election.
       ``(B) Interest on the amounts by which the retired pay of 
     the participant would have been so reduced, computed from the 
     dates on which the retired pay would have been so reduced at 
     such rate or rates and according to such methodology as the 
     Secretary of Defense determines reasonable.
       ``(C) Any additional amount that the Secretary determines 
     necessary to protect the actuarial soundness of the 
     Department of Defense Military Retirement Fund against any 
     increased risk for the fund that is associated with the 
     election.''.
       (c) Transition.--
       (1) Transition period.--In the case of a participant in the 
     Survivor Benefit Plan who made a covered insurable-interest 
     election (as defined in paragraph (2)) and whose designated 
     beneficiary under that election dies before the date of the 
     enactment of this Act or during the 18-month period beginning 
     on such date, the time period applicable for purposes of the 
     limitation in the third sentence of subparagraph (G)(i) of 
     section 1448(b)(1) of title 10, United States Code, as added 
     by subsection (a), shall be the two-year period beginning on 
     the date of the enactment of this Act (rather than the 180-
     day period specified in that sentence).
       (2) Covered insurable-interest elections.--For purposes of 
     paragraph (1), a covered insurable-interest election is an 
     election under section 1448(b)(1) of title 10, United States 
     Code, made before the date of the enactment of this Act, or 
     during the 18-month period beginning on such date, by a 
     participant in the Survivor Benefit Plan to provide an 
     annuity under that plan to a natural person with an insurable 
     interest in that person.
       (3) Survivor benefit plan.--For purposes of this 
     subsection, the term ``Survivor Benefit Plan'' means the 
     program under subchapter II of chapter 73 of title 10, United 
     States Code.

     SEC. 644. MODIFICATION OF ELIGIBILITY FOR COMMENCEMENT OF 
                   AUTHORITY FOR OPTIONAL ANNUITIES FOR DEPENDENTS 
                   UNDER THE SURVIVOR BENEFIT PLAN.

       (a) In General.--Section 1448(d)(2)(B) of title 10, United 
     States Code, is amended by striking ``who dies after November 
     23, 2003'' and inserting ``who dies after October 7, 2001''.
       (b) Applicability.--Any annuity payable to a dependent 
     child under subchapter II of chapter 73 of title 10, United 
     States Code, by reason of the amendment made by subsection 
     (a) shall be payable only for months beginning on or after 
     the date of the enactment of this Act.

     SEC. 645. STUDY OF TRAINING COSTS, MANNING, OPERATIONS TEMPO, 
                   AND OTHER FACTORS THAT AFFECT RETENTION OF 
                   MEMBERS OF THE ARMED FORCES WITH SPECIAL 
                   OPERATIONS DESIGNATIONS.

       (a) Report Required.--Not later than August 1, 2007, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a report on factors that affect 
     retention of members of the Armed Forces who have a special 
     operations forces designation.
       (b) Elements.--The report under subsection (a) shall 
     include the following:
       (1) Information on the cost of training of members of the 
     Armed Forces who have a special operations forces 
     designation, with such information displayed separately and 
     shown as aggregate costs of training for such members at the 
     4-year, 8-year, 12-year, 16-year, and 20-year points of 
     service.
       (2) The average cost of special operations-unique training, 
     both predeployment and during deployment, for the number of 
     members of the Armed Forces who have a special operations 
     forces designation who have been deployed at least twice to 
     areas in which they were eligible for hostile fire pay.
       (3) For each component of the United States Special 
     Operations Command, an estimate of when the assigned strength 
     of that component will be under 90 percent of the authorized 
     strength of that component, taking into account anticipated 
     growth planned for in the most recent Quadrennial Defense 
     Review.
       (4) The percentage of members of the Armed Forces with a 
     special operations forces designation who have accumulated 
     over 48 months of hostile fire pay and the percentage who 
     have accumulated over 60 months of such pay.
    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

     SEC. 661. TREATMENT OF PRICE SURCHARGES OF CERTAIN 
                   MERCHANDISE SOLD AT COMMISSARY STORES.

       (a) Merchandise Procured From Exchanges.--Subsection (c)(3) 
     of section 2484 of title 10, United States Code, is amended--
       (1) by inserting ``(A)'' after ``(3)'';
       (2) by striking ``Subsections'' and inserting ``Except as 
     provided in subparagraph (B), subsections''; and
       (3) by adding at the end the following new subparagraph:
       ``(B) When a military exchange is the vendor of tobacco 
     products or other merchandise authorized for sale in a 
     commissary store under paragraph (1), any revenue above the 
     cost of procuring the merchandise shall be allocated as if 
     the revenue were a uniform sales price surcharge described in 
     subsection (d).''.
       (b) Merchandise Treated as Noncommissary Store Inventory.--
     Subsection (g) of such section is amended--
       (1) by inserting ``(1)'' before ``Notwithstanding'';
       (2) by striking ``Subsections'' and inserting ``Except as 
     provided in paragraph (2), subsections''; and
       (3) by adding at the end the following new paragraph:
       ``(2) When tobacco products are authorized for sale in a 
     commissary store as noncommissary store inventory, any 
     revenue above the cost of procuring the tobacco products 
     shall be allocated as if the revenue were a uniform sales 
     price surcharge described in subsection (d).''.

     SEC. 662. LIMITATIONS ON LEASE OF NON-EXCESS DEPARTMENT OF 
                   DEFENSE PROPERTY FOR PROTECTION OF MORALE, 
                   WELFARE, AND RECREATION ACTIVITIES AND REVENUE.

       (a) Additional Condition on Use of Lease Authority.--
     Subsection (b) section 2667 of title 10, United States Code, 
     is amended--
       (1) in paragraph (4), by striking ``and'' at the end;
       (2) in paragraph (5), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(6) except as otherwise provided in subsection (d), shall 
     require the lessee to provide the covered entities specified 
     in paragraph (1) of that subsection the right to establish 
     and operate a community support facility or provide community 
     support services, or seek equitable compensation for morale, 
     welfare, and recreation programs of the Department of Defense 
     in lieu of the operation of such a facility or the provision 
     of such services, if the Secretary determines that the lessee 
     will provide merchandise or services in direct competition 
     with covered entities through the lease.''.
       (b) Application of Condition; Waiver.--Such section is 
     further amended--
       (1) by redesignating subsections (d) through (i) as 
     subsections (e) through (j), respectively; and
       (2) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Community Support Facilities and Community Support 
     Services Under Lease; Waiver.--(1) In this subsection and 
     subsection (b)(6), the term `covered entity' means each of 
     the following:
       ``(A) The Army and Air Force Exchange Service.
       ``(B) The Navy Exchange Service Command.
       ``(C) The Marine Corps exchanges.
       ``(D) The Defense Commissary Agency.
       ``(E) The revenue-generating nonappropriated fund 
     activities of the Department of Defense conducted for the 
     morale, welfare, and recreation of members of the armed 
     forces.
       ``(2) The Secretary of a military department may waive the 
     requirement in subsection (b)(6) with respect to a lease if--
       ``(A) the lease is entered into under subsection (g); or
       ``(B) the Secretary determines that the waiver is in the 
     best interests of the Government.
       ``(3) The Secretary of the military department concerned 
     shall provide to the congressional defense committees written 
     notice of each waiver under paragraph (2), including the 
     reasons for the waiver.
       ``(4) The covered entities shall exercise the right 
     provided in subsection (b)(6) with respect to a lease, if at 
     all, not later than 90 days after receiving notice from the 
     Secretary of the military department concerned regarding the 
     opportunity to exercise such right with respect to the lease. 
     The Secretary may, at the discretion of the Secretary, extend 
     the period under this paragraph for the exercise of the right 
     with respect to a lease for such additional period as the 
     Secretary considers appropriate.
       ``(5) The Secretary of Defense shall prescribe in 
     regulations uniform procedures and criteria for the 
     evaluation of proposals for enhanced use leases involving the 
     operation of community support facilities or the provision of 
     community support services by either a lessee under this 
     section or a covered entity.
       ``(6) The Secretary of the military department concerned 
     shall provide written notification to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives regarding all leases under this 
     section that include the operation of a community support 
     facility or the provision of community support services, 
     regardless of whether the facility will be operated by a 
     covered entity or the lessee or the services will be provided 
     by a covered entity or the lessee.''.
       (c) Definitions.--Subsection (i) of such section, as 
     redesignated by subsection (b)(1) of this section, is amended 
     to read as follows:
       ``(i) Definitions.--In this section:
       ``(1) The term `community support facility' includes an 
     ancillary supporting facility (as that term is defined in 
     section 2871(1) of this title).
       ``(2) The term `community support services' includes 
     revenue-generating food, recreational, lodging support 
     services, and resale operations and other retail facilities 
     and services intended to support a community.
       ``(3) The term `military installation' has the meaning 
     given such term in section 2687(e)(1) of this title.''.
       (d) Stylistic, Technical, and Conforming Amendments.--Such 
     section is further amended--
       (1) in subsection (a), by inserting ``Lease Authority.--'' 
     after ``(a)'';
       (2) in subsection (b), by inserting ``Conditions on 
     Leases.--'' after ``(b)'';

[[Page 20799]]

       (3) in subsection (c), by inserting ``Types of In-Kind 
     Consideration.--'' after ``(c)'';
       (4) in subsection (e), as redesignated by subsection (b)(1) 
     of this section--
       (A) by inserting ``Deposit and Use of Proceeds.--'' after 
     ``(e)''; and
       (B) in paragraph (5), by striking ``subsection (f)'' and 
     inserting ``subsection (g)'';
       (5) in subsection (f), as redesignated by subsection (b)(1) 
     of this section, by inserting ``Treatment of Lessee Interest 
     in Property.--'' after ``(f)'';
       (6) in subsection (g), as redesignated by subsection (b)(1) 
     of this section--
       (A) by inserting ``Special Rules for Base Closure and 
     Realignment Property.--'' after ``(g)''; and
       (B) in paragraph (1), by striking ``subsection (a)(3)'' and 
     inserting ``subsection (a)(2)'';
       (7) in subsection (h), as redesignated by subsection (b)(1) 
     of this section, by inserting ``Competitive Procedures for 
     Selection of Certain Lessees; Exception.--'' after ``(h)'' 
     and
       (8) in subsection (j), as redesignated by subsection (b)(1) 
     of this section, by inserting ``Exclusion of Certain Lands.--
     '' after ``(j)''.

     SEC. 663. REPORT ON COST EFFECTIVENESS OF PURCHASING 
                   COMMERCIAL INSURANCE FOR COMMISSARY AND 
                   EXCHANGE FACILITIES AND FACILITIES OF OTHER 
                   MORALE, WELFARE, AND RECREATION PROGRAMS AND 
                   NONAPPROPRIATED FUND INSTRUMENTALITIES.

       (a) Report Required.--Not later than July 31, 2007, the 
     Secretary of Defense shall submit to Congress a report 
     evaluating the cost effectiveness of the Defense Commissary 
     Agency and the nonappropriated fund activities specified in 
     subsection (b) purchasing commercial insurance to protect 
     financial interests in facilities operated by the Defense 
     Commissary Agency or those nonappropriated fund activities.
       (b) Covered Nonappropriated Fund Activities.--The report 
     shall apply with respect to--
       (1) the Army and Air Force Exchange Service;
       (2) the Navy Exchange Service Command;
       (3) the Marine Corps exchanges; and
       (4) any nonappropriated fund activity of the Department of 
     Defense for the morale, welfare, and recreation of members of 
     the Armed Forces.

     SEC. 664. STUDY AND REPORT REGARDING ACCESS OF DISABLED 
                   PERSONS TO MORALE, WELFARE, AND RECREATION 
                   FACILITIES AND ACTIVITIES.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a study regarding the current capability of morale, welfare, 
     and recreation facilities and activities operated by 
     nonappropriated fund instrumentalities of the Department of 
     Defense to provide access to and accommodate disabled persons 
     who are otherwise eligible to use such facilities or 
     participate in such activities and the legal requirements 
     regarding such access and accommodation applicable to these 
     morale, welfare, and recreation facilities and activities, 
     with specific attention to the applicability of section 504 
     of the Rehabilitation Act of 1973 (29 U.S.C. 794).
       (b) Elements of Study.--In conducting the study, the 
     Secretary of Defense shall address at a minimum the 
     following:
       (1) The current plans of the Secretary of Defense and the 
     Secretaries of the military departments to improve the access 
     and accommodation of disabled persons to morale, welfare, and 
     recreation facilities and activities operated by 
     nonappropriated fund instrumentalities of the Department of 
     Defense, including plans to make available additional golf 
     carts at military golf courses that are accessible for 
     disabled persons authorized to use such courses, and whether 
     any portion of these plans require congressional 
     authorization or funding.
       (2) The timing and cost of making these morale, welfare, 
     and recreation facilities and activities fully accessible to 
     disabled persons.
       (3) The expected utilization rates of these morale, 
     welfare, and recreation facilities and activities by disabled 
     persons, if the facilities and activities were fully 
     accessible to disabled persons.
       (4) Any legal requirements applicable to providing golf 
     carts at military golf courses that are accessible for 
     disabled persons authorized to use such courses and the 
     current availability of accessible golf carts at such 
     courses.
       (c) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall submit to Congress a report containing the results of 
     the study and any related findings, conclusions, and 
     recommendations that the Secretary considers to be 
     appropriate concerning the access of disabled persons to 
     morale, welfare, and recreation facilities and activities, 
     and specifically the Secretary's conclusions on making 
     accessible golf carts available at all military golf courses 
     for use by disabled persons authorized to use such courses.
                       Subtitle F--Other Matters

     SEC. 670. LIMITATIONS ON TERMS OF CONSUMER CREDIT EXTENDED TO 
                   SERVICEMEMBERS AND DEPENDENTS.

       (a) Terms of Consumer Credit.--Chapter 49 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 987. Terms of consumer credit extended to members and 
       dependents: limitations

       ``(a) Interest.--A creditor who extends consumer credit to 
     a covered member of the armed forces or a dependent of such a 
     member shall not require the member or dependent to pay 
     interest with respect to the extension of such credit, except 
     as--
       ``(1) agreed to under the terms of the credit agreement or 
     promissory note;
       ``(2) authorized by applicable State or Federal law; and
       ``(3) not specifically prohibited by this section.
       ``(b) Annual Percentage Rate.--A creditor described in 
     subsection (a) may not impose an annual percentage rate of 
     interest greater than 36 percent with respect to the consumer 
     credit extended to a covered member or a dependent of a 
     covered member.
       ``(c) Mandatory Loan Disclosures.--
       ``(1) Information required.--With respect to any extension 
     of consumer credit (including any consumer credit originated 
     or extended through the internet) to a covered member or a 
     dependent of a covered member, a creditor shall provide to 
     the member or dependent the following information orally and 
     in writing before the issuance of the credit:
       ``(A) A statement of the annual percentage rate of interest 
     applicable to the extension of credit.
       ``(B) Any disclosures required under the Truth in Lending 
     Act (15 U.S.C. 1601 et seq.).
       ``(C) A clear description of the payment obligations of the 
     member or dependent, as applicable.
       ``(2) Terms.--Such disclosures shall be presented in 
     accordance with terms prescribed by the regulations issued by 
     the Board of Governors of the Federal Reserve System to 
     implement the Truth in Lending Act (15 U.S.C. 1601 et seq.).
       ``(d) Preemption.--
       ``(1) Inconsistent laws.--Except as provided in subsection 
     (f)(2), this section preempts any State or Federal law, rule, 
     or regulation, including any State usury law, to the extent 
     that such law, rule, or regulation is inconsistent with this 
     section, except that this section shall not preempt any such 
     law, rule, or regulation that provides protection to a 
     covered member or a dependent of such a member in addition to 
     the protection provided by this section.
       ``(2) Different treatment under state law of members and 
     dependents prohibited.--States shall not--
       ``(A) authorize creditors to charge covered members and 
     their dependents annual percentage rates of interest for 
     loans higher than the legal limit for residents of the State; 
     or
       ``(B) permit violation or waiver of any State consumer 
     lending protections for the benefit of residents of the State 
     on the basis of nonresident or military status of a covered 
     member or dependent of such a member, regardless of the 
     member's or dependent's domicile or permanent home of record.
       ``(e) Limitations.--It shall be unlawful for any creditor 
     to extend consumer credit to a covered member or a dependent 
     of such a member with respect to which--
       ``(1) the creditor rolls over, renews, repays, refinances, 
     or consolidates any consumer credit extended to the borrower 
     by the same creditor with the proceeds of other credit 
     extended to the same covered member or a dependent;
       ``(2) the borrower is required to waive the borrower's 
     right to legal recourse under any otherwise applicable 
     provision of State or Federal law, including any provision of 
     the Servicemembers Civil Relief Act;
       ``(3) the creditor requires the borrower to submit to 
     arbitration or imposes onerous legal notice provisions in the 
     case of a dispute;
       ``(4) the creditor demands unreasonable notice from the 
     borrower as a condition for legal action;
       ``(5) the creditor uses a check or other method of access 
     to a deposit, savings, or other financial account maintained 
     by the borrower, or the title of a vehicle as security for 
     the obligation;
       ``(6) the creditor requires as a condition for the 
     extension of credit that the borrower establish an allotment 
     to repay an obligation; or
       ``(7) the borrower is prohibited from prepaying the loan or 
     is charged a penalty or fee for prepaying all or part of the 
     loan.
       ``(f) Penalties and Remedies.--
       ``(1) Misdemeanor.--A creditor who knowingly violates this 
     section shall be fined as provided in title 18, or imprisoned 
     for not more than one year, or both.
       ``(2) Preservation of other remedies.--The remedies and 
     rights provided under this section are in addition to and do 
     not preclude any remedy otherwise available under law to the 
     person claiming relief under this section, including any 
     award for consequential and punitive damages.
       ``(3) Contract void.--Any credit agreement, promissory 
     note, or other contract prohibited under this section is void 
     from the inception of such contract.
       ``(4) Arbitration.--Notwithstanding section 2 of title 9, 
     or any other Federal or State law, rule, or regulation, no 
     agreement to arbitrate any dispute involving the extension of 
     consumer credit shall be enforceable against any covered 
     member or dependent of such a member, or any person who was a 
     covered member or dependent of that member when the agreement 
     was made.
       ``(g) Servicemembers Civil Relief Act Protections 
     Unaffected.--Nothing in this section may be construed to 
     limit or otherwise affect the applicability of section 207 of 
     the Servicemembers Civil Relief Act (50 U.S.C. App. 527).
       ``(h) Regulations.--(1) The Secretary of Defense shall 
     prescribe regulations to carry out this section.
       ``(2) Such regulations shall establish the following:
       ``(A) Disclosures required of any creditor that extends 
     consumer credit to a covered member or dependent of such a 
     member.
       ``(B) The method for calculating the applicable annual 
     percentage rate of interest on such obligations, in 
     accordance with the limit established under this section.

[[Page 20800]]

       ``(C) A maximum allowable amount of all fees, and the types 
     of fees, associated with any such extension of credit, to be 
     expressed and disclosed to the borrower as a total amount and 
     as a percentage of the principal amount of the obligation, at 
     the time at which the transaction is entered into.
       ``(D) Definitions of `creditor' under paragraph (5) and 
     `consumer credit' under paragraph (6) of subsection (i), 
     consistent with the provisions of this section.
       ``(E) Such other criteria or limitations as the Secretary 
     of Defense determines appropriate, consistent with the 
     provisions of this section.
       ``(3) In prescribing regulations under this subsection, the 
     Secretary of Defense shall consult with the following:
       ``(A) The Federal Trade Commission.
       ``(B) The Board of Governors of the Federal Reserve System.
       ``(C) The Office of the Comptroller of the Currency.
       ``(D) The Federal Deposit Insurance Corporation.
       ``(E) The Office of Thrift Supervision.
       ``(F) The National Credit Union Administration
       ``(G) The Treasury Department.
       ``(i) Definitions.--In this section:
       ``(1) Covered member.--The term `covered member' means a 
     member of the armed forces who is--
       ``(A) on active duty under a call or order that does not 
     specify a period of 30 days or less; or
       ``(B) on active Guard and Reserve Duty.
       ``(2) Dependent.--The term `dependent', with respect to a 
     covered member, means--
       ``(A) the member's spouse;
       ``(B) the member's child (as defined in section 101(4) of 
     title 38); or
       ``(C) an individual for whom the member provided more than 
     one-half of the individual's support for 180 days immediately 
     preceding an extension of consumer credit covered by this 
     section.
       ``(3) Interest.--The term `interest' includes all cost 
     elements associated with the extension of credit, including 
     fees, service charges, renewal charges, credit insurance 
     premiums, any ancillary product sold with any extension of 
     credit to a servicemember or the servicemember's dependent, 
     as applicable, and any other charge or premium with respect 
     to the extension of consumer credit.
       ``(4) Annual percentage rate.--The term `annual percentage 
     rate' has the same meaning as in section 107 of the Truth and 
     Lending Act (15 U.S.C. 1606), as implemented by regulations 
     of the Board of Governors of the Federal Reserve System. For 
     purposes of this section, such term includes all fees and 
     charges, including charges and fees for single premium credit 
     insurance and other ancillary products sold in connection 
     with the credit transaction, and such fees and charges shall 
     be included in the calculation of the annual percentage rate.
       ``(5) Creditor.--The term `creditor' means a person--
       ``(A) who--
       ``(i) is engaged in the business of extending consumer 
     credit; and
       ``(ii) meets such additional criteria as are specified for 
     such purpose in regulations prescribed under this section; or
       ``(B) who is an assignee of a person described in 
     subparagraph (A) with respect to any consumer credit 
     extended.
       ``(6) Consumer credit.--The term `consumer credit' has the 
     meaning provided for such term in regulations prescribed 
     under this section, except that such term does not include 
     (A) a residential mortgage, or (B) a loan procured in the 
     course of purchasing a car or other personal property, when 
     that loan is offered for the express purpose of financing the 
     purchase and is secured by the car or personal property 
     procured.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such title is amended by adding at the end the 
     following new item:

``987. Terms of consumer credit extended to members and dependents: 
              limitations.''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), 
     section 987 of title 10, United States Code, as added by 
     subsection (a), shall take effect on October 1, 2007, or on 
     such earlier date as may be prescribed by the Secretary of 
     Defense, and shall apply with respect to extensions of 
     consumer credit on or after such effective date.
       (2) Authority to prescribe regulations.--Subsection (h) of 
     such section shall take effect on the date of the enactment 
     of this Act.
       (3) Publication of earlier effective date.--If the 
     Secretary of Defense prescribes an effective date for section 
     987 of title 10, United States Code, as added by subsection 
     (a), earlier than October 1, 2007, the Secretary shall 
     publish that date in the Federal Register. Such publication 
     shall be made not less than 90 days before that earlier 
     effective date.
       (d) Interim Regulations.--The Secretary of Defense may 
     prescribe interim regulations as necessary to carry out such 
     section. For the purpose of prescribing such interim 
     regulations, the Secretary is excepted from compliance with 
     the notice-and-comment requirements of section 553 of title 
     5, United States Code. All interim rules prescribed under the 
     authority of this subsection that are not earlier superseded 
     by final rules shall expire no later than 270 days after the 
     effective date of section 987 of title 10, United States 
     Code, as added by this section.

     SEC. 671. ENHANCEMENT OF AUTHORITY TO WAIVE CLAIMS FOR 
                   OVERPAYMENT OF PAY AND ALLOWANCES AND TRAVEL 
                   AND TRANSPORTATION ALLOWANCES.

       (a) Maximum Waiver Amount; Time for Exercise of 
     Authority.--Section 2774 of title 10, United States Code, is 
     amended--
       (1) in subsection (a)(2)(A), by striking ``$1,500'' and 
     inserting ``$10,000''; and
       (2) in subsection (b)(2), by striking ``three years'' and 
     inserting ``five years''.
       (b) Conforming Amendments Regarding National Guard.--
     Section 716 of title 32, United States Code, is amended--
       (1) in subsection (a)(2)(A), by striking ``$1,500'' and 
     inserting ``$10,000''; and
       (2) in subsection (b)(2), by striking ``three years'' and 
     inserting ``five years''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on March 1, 2007.

     SEC. 672. EXCEPTION FOR NOTICE TO CONSUMER REPORTING AGENCIES 
                   REGARDING DEBTS OR ERRONEOUS PAYMENTS PENDING A 
                   DECISION TO WAIVE, REMIT, OR CANCEL.

       (a) Exception.--Section 2780(b) of title 10, United States 
     Code, is amended--
       (1) by striking ``The Secretary'' and inserting ``(1) 
     Except as provided in paragraph (2), the Secretary of 
     Defense''; and
       (2) by adding at the end the following new paragraph:
       ``(2) No disclosure shall be made under paragraph (1) with 
     respect to an indebtedness while a decision regarding waiver 
     of collection of the indebtedness is pending under section 
     2774 of this title or section 716 of title 32, or while a 
     decision regarding remission or cancellation of the 
     indebtedness is pending under section 4837, 6161, or 9837 of 
     this title, unless the Secretary concerned (as defined in 
     section 101(5) of title 37) determines that disclosure under 
     that paragraph pending such decision is in the best interests 
     of the United States.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on March 1, 2007.
       (2) Application to prior actions.--Paragraph (2) of section 
     2780(b) of title 10, United States Code, as added by 
     subsection (a), shall not be construed to apply to or 
     invalidate any action taken under such section before March 
     1, 2007.
       (c) Report.--Not later than March 1, 2007, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report on the requirement in section 2780(b) of title 10, 
     United States Code, to disclose to consumer reporting 
     agencies in accordance with section 3711 of title 31, United 
     States Code, information concerning certain indebtedness owed 
     to the United States. The report shall include the following:
       (1) The total number of members of the Armed Forces whose 
     indebtedness has been disclosed to consumer reporting 
     agencies under section 2780(b), United States Code, during 
     the period beginning on January 1, 2003, and ending on June 
     30, 2006.
       (2) The circumstances under which a decision to recover the 
     indebtedness was made, rather than a decision to waive, 
     remit, or cancel the indebtedness under the provisions of law 
     referred to in paragraph (2) of such section, as added by 
     subsection (a), and the title of the person who made the 
     decision.
       (3) The cost of contracts for collection services to 
     recover indebtedness owed to the United States that is 
     delinquent.
       (4) An evaluation of whether or not such contracts, and the 
     practice of disclosing to consumer reporting agencies the 
     identity of members of the Armed Forces who owe a delinquent 
     debt to the United States, has been effective in reducing 
     indebtedness to the United States.
       (5) Such recommendations as the Secretary considers 
     appropriate regarding the continuing disclosure of such 
     information with respect to members of the Armed Forces.

     SEC. 673. EXPANSION AND ENHANCEMENT OF AUTHORITY TO REMIT OR 
                   CANCEL INDEBTEDNESS OF MEMBERS AND FORMER 
                   MEMBERS OF THE ARMED FORCES INCURRED ON ACTIVE 
                   DUTY.

       (a) Department of the Army.--
       (1) Coverage of all members and former members.--Subsection 
     (a) of section 4837 of title 10, United States Code, is 
     amended by striking ``of a member'' and all that follows 
     through ``on active duty'' and inserting ``of a person to the 
     United States or any instrumentality of the United States 
     incurred while the person was serving on active duty as a 
     member of the Army''.
       (2) Repeal of limitation on time for exercise of 
     authority.--Such section is further amended--
       (A) by striking subsection (b); and
       (B) by redesignating subsections (c) and (d) as subsections 
     (b) and (c), respectively.
       (3) Repeal of termination of modified authority.--Paragraph 
     (3) of section 683(a) of the National Defense Authorization 
     Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3322; 
     10 U.S.C. 4837 note) is repealed.
       (b) Department of the Navy.--
       (1) Coverage of all members and former members.--Section 
     6161 of title 10, United States Code, is amended by striking 
     ``of a member'' and all that follows through ``on active 
     duty'' and inserting ``of a person to the United States or 
     any instrumentality of the United States incurred while the 
     person was serving on active duty as a member of the naval 
     service''.
       (2) Repeal of limitation on time for exercise of 
     authority.--Such section is further amended--

[[Page 20801]]

       (A) by striking subsection (b); and
       (B) by redesignating subsections (c) and (d) as subsections 
     (b) and (c), respectively.
       (3) Repeal of termination of modified authority.--Paragraph 
     (3) of section 683(b) of the National Defense Authorization 
     Act for Fiscal Year 2006 (119 Stat. 3323; 10 U.S.C. 6161 
     note) is repealed.
       (c) Department of the Air Force.--
       (1) Coverage of all members and former members.--Subsection 
     (a) of section 9837 of title 10, United States Code, is 
     amended by striking ``of a member'' and all that follows 
     through ``on active duty'' and inserting ``of a person to the 
     United States or any instrumentality of the United States 
     incurred while the person was serving on active duty as a 
     member of the Air Force''.
       (2) Repeal of limitation on time for exercise of 
     authority.--Such section is further amended--
       (A) by striking subsection (b); and
       (B) by redesignating subsections (c) and (d) as subsections 
     (b) and (c), respectively.
       (3) Repeal of termination of modified authority.--Paragraph 
     (3) of section 683(c) of the National Defense Authorization 
     Act for Fiscal Year 2006 (119 Stat. 3324; 10 U.S.C. 9837 
     note) is repealed.
       (d) Deadline for Regulations.--The Secretary of Defense 
     shall prescribe the regulations required for purposes of 
     sections 4837, 6161, and 9837 of title 10, United States 
     Code, as amended by this section, not later than March 1, 
     2007.
       (e) Clarifying and Editorial Amendments.--
       (1) Secretary of the army.--Subsection (a) of section 4837 
     of title 10, United States Code, as amended by subsection 
     (a)(1), is further amended--
       (A) by striking ``If the'' and all that follows through 
     ``States, the Secretary'' and inserting ``The Secretary of 
     the Army''; and
       (B) by inserting before the period at the end ``, but only 
     if the Secretary considers such action to be in the best 
     interest of the United States''.
       (2) Secretary of the navy.--Subsection (a) of section 6161 
     of such title, as amended by subsection (b)(1), is further 
     amended--
       (A) by striking ``If the'' and all that follows through 
     ``States, the Secretary'' and inserting ``The Secretary of 
     the Navy''; and
       (B) by inserting before the period at the end ``, but only 
     if the Secretary considers such action to be in the best 
     interest of the United States''.
       (3) Secretary of the air force.--Subsection (a) of section 
     9837 of such title, as amended by subsection (c)(1), is 
     further amended--
       (A) by striking ``If the'' and all that follows through 
     ``States, the Secretary'' and inserting ``The Secretary of 
     the Air Force''; and
       (B) by inserting before the period at the end ``, but only 
     if the Secretary considers such action to be in the best 
     interest of the United States''.

     SEC. 674. PHASED RECOVERY OF OVERPAYMENTS OF PAY MADE TO 
                   MEMBERS OF THE UNIFORMED SERVICES.

       (a) Phased Recovery Required; Maximum Monthly 
     Installment.--Subsection (c) of section 1007 of title 37, 
     United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(3) If the indebtedness of a member of the uniformed 
     services to the United States is due to the overpayment of 
     pay or allowances to the member through no fault of the 
     member, the amount of the overpayment shall be recovered in 
     monthly installments. The amount deducted from the pay of the 
     member for a month to recover the overpayment amount may not 
     exceed 20 percent of the member's pay for that month unless 
     the member requests or consents to collection of the 
     overpayment at an accelerated rate.''.
       (b) Recovery Delay for Injured Members.--Such subsection is 
     further amended by inserting after paragraph (3), as added by 
     subsection (a), the following new paragraph:
       ``(4) If a member of the uniformed services is injured or 
     wounded under the circumstances described in section 
     310(a)(2)(C) of this title or, while in the line of duty, 
     incurs a wound, injury, or illness in a combat operation or 
     combat zone designated by the Secretary of Defense, any 
     overpayment of pay or allowances made to the member while the 
     member recovers from the wound, injury, or illness may not be 
     deducted from the member's pay until--
       ``(A) the end of the 90-day period beginning on the date on 
     which the member is notified of the overpayment; or
       ``(B) such earlier date as may be requested or agreed to by 
     the member.''.
       (c) Conforming Amendments.--Such subsection is further 
     amended--
       (1) by inserting ``(1)'' before ``Under regulations'';
       (2) by striking ``his pay'' both places it appears and 
     inserting ``the member's pay'';
       (3) by striking ``However, after'' and inserting the 
     following:
       ``(2) After''; and
       (4) by inserting ``by a member of the uniformed services'' 
     after ``actually received''.

     SEC. 675. JOINT FAMILY SUPPORT ASSISTANCE PROGRAM.

       (a) Program Required.--The Secretary of Defense shall carry 
     out a joint family support assistance program for the purpose 
     of providing to families of members of the Armed Forces the 
     following types of assistance:
       (1) Financial and material assistance.
       (2) Mobile support services.
       (3) Sponsorship of volunteers and family support 
     professionals for the delivery of support services.
       (4) Coordination of family assistance programs and 
     activities provided by Military OneSource, Military Family 
     Life Consultants, counselors, the Department of Defense, 
     other Federal agencies, State and local agencies, and non-
     profit entities.
       (5) Facilitation of discussion on military family 
     assistance programs, activities, and initiatives between and 
     among the organizations, agencies, and entities referred to 
     in paragraph (4).
       (6) Such other assistance that the Secretary considers 
     appropriate.
       (b) Locations.--The Secretary of Defense shall carry out 
     the program in not more than six areas of the United States 
     selected by the Secretary. Up to three of the areas selected 
     for the program shall be areas that are geographically 
     isolated from military installations.
       (c) Resources and Volunteers.--The Secretary of Defense 
     shall provide personnel and other resources of the Department 
     of Defense necessary for the implementation and operation of 
     the program and may accept and utilize the services of non-
     Government volunteers and non-profit entities under the 
     program.
       (d) Procedures.--The Secretary of Defense shall establish 
     procedures for the operation of the program and for the 
     provision of assistance to families of members of the Armed 
     Forces under the program.
       (e) Relation to Family Support Centers.--The program is not 
     intended to operate in lieu of existing family support 
     centers, but is instead intended to augment the activities of 
     the family support centers.
       (f) Implementation Plan.--
       (1) Plan required.--Not later than 90 days after the date 
     on which funds are first obligated for the program, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report setting forth a plan for the 
     implementation of the program.
       (2) Elements.--The plan required under paragraph (1) shall 
     include the following:
       (A) A description of the actions taken to select the areas 
     in which the program will be conducted.
       (B) A description of the procedures established under 
     subsection (d).
       (C) A review of proposed actions to be taken under the 
     program to improve coordination of family assistance program 
     and activities between and among the Department of Defense, 
     other Federal agencies, State and local agencies, and non-
     profit entities.
       (g) Report.--
       (1) Report required.--Not later than 270 days after the 
     date on which funds are first obligated for the program, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the program.
       (2) Elements.--The report shall include the following:
       (A) A description of the program, including the areas in 
     which the program is conducted, the procedures established 
     under subsection (d) for operation of the program, and the 
     assistance provided through the program for families of 
     members of the Armed Forces.
       (B) An assessment of the effectiveness of the program in 
     providing assistance to families of members of the Armed 
     Forces.
       (C) An assessment of the advisability of extending the 
     program or making it permanent.
       (h) Duration.--The authority to carry out the program shall 
     expire at the end of the three-year period beginning on the 
     date on which funds are first obligated for the program.

     SEC. 676. SPECIAL WORKING GROUP ON TRANSITION TO CIVILIAN 
                   EMPLOYMENT OF NATIONAL GUARD AND RESERVE 
                   MEMBERS RETURNING FROM DEPLOYMENT IN OPERATION 
                   IRAQI FREEDOM OR OPERATION ENDURING FREEDOM.

       (a) Working Group Required.--The Secretary of Defense shall 
     establish within the Department of Defense a working group to 
     identify and assess the needs of members of the National 
     Guard and Reserve returning from deployment in Operation 
     Iraqi Freedom or Operation Enduring Freedom in making the 
     transition to civilian employment on their return from such 
     deployment.
       (b) Members.--
       (1) Appointment.--Subject to paragraph (2), the Secretary 
     of Defense shall appoint the members of the working group. 
     The Secretary of Defense shall attempt to achieve a balance 
     of members on the working group from among employees of the 
     following agencies:
       (A) The Department of Defense.
       (B) The Department of Veterans Affairs.
       (C) The Department of Labor.
       (2) Concurrence.--The appointment of employees of the 
     Department of Veterans Affairs and the Department of Labor 
     under paragraph (1) shall be subject to the concurrence of 
     the Secretary of Veterans Affairs and the Secretary of Labor, 
     respectively.
       (c) Responsibilities.--The working group shall--
       (1) identify and assess the needs of members of the 
     National Guard and Reserve returning from deployment in 
     Operation Iraqi Freedom or Operation Enduring Freedom in 
     making the transition to civilian employment on their return 
     from deployment, including the needs of--
       (A) members who were self-employed before deployment and 
     seek to return to such employment after deployment;
       (B) members who were students before deployment and seek to 
     return to school or commence employment after deployment;

[[Page 20802]]

       (C) members who have experienced multiple recent 
     deployments; and
       (D) members who have been wounded or injured during 
     deployment;
       (2) identify and assess the extent to which such members 
     receive promotions on their return from deployment in 
     Operation Iraqi Freedom or Operation Enduring Freedom or 
     experience constructive termination by their employers as a 
     result of such deployment; and
       (3) develop recommendations on means of improving 
     assistance to such members in meeting the needs identified in 
     paragraph (1) on their return from deployment in Operation 
     Iraqi Freedom or Operation Enduring Freedom.
       (d) Consultation.--In carrying out its responsibilities 
     under subsection (c), the working group shall consult with 
     the following:
       (1) Employees of the Small Business Administration.
       (2) Representatives of employers that employ, and 
     associations of employers whose members employ, members of 
     the National Guard and Reserve deployed in Operation Iraqi 
     Freedom or Operation Enduring Freedom.
       (3) Representatives of employee assistance organizations.
       (4) Representatives of organizations that assist wounded or 
     injured members of the National Guard and Reserves in finding 
     or sustaining employment.
       (5) Representatives of such other public or private 
     organizations and entities as the working group considers 
     appropriate.
       (e) Report.--
       (1) In general.--Not later than one year after the date of 
     the enactment of this Act, the working group established 
     under subsection (a) shall submit to the Secretary of Defense 
     and Congress a report on its activities under subsection (c).
       (2) Elements.--The report shall include the following:
       (A) The results of the identifications and assessments 
     required under subsection (c).
       (B) The recommendations developed under subsection (c)(3), 
     including recommendations on the following:
       (i) The provision of outreach and training to employers, 
     employment assistance organizations, and associations of 
     employers on the employment and transition needs of members 
     of the National Guard and Reserve returning from deployment 
     in Operation Iraqi Freedom or Operation Enduring Freedom.
       (ii) The provision of outreach and training to employers, 
     employment assistance organizations, and associations of 
     employers on the needs of family members of such members.
       (iii) The improvement of collaboration between the pubic 
     and private sectors in order to ensure the successful 
     transition of such members into civilian employment upon 
     their return from such deployment.
       (3) Availability to public.--The Secretary shall take 
     appropriate actions to make the report available to the 
     public, including through the Internet website of the 
     Department of Defense.
       (f) Termination.--The working group shall terminate on the 
     date that is two years after the date of the enactment of 
     this Act.
       (g) Employment Assistance Organization Defined.--In this 
     section, the term ``employment assistance organization'' 
     means an organization or entity, whether public or private, 
     that provides assistance to individuals in finding or 
     retaining employment, including organizations and entities 
     under military career support programs.

     SEC. 677. AUDIT OF PAY ACCOUNTS OF MEMBERS OF THE ARMY 
                   EVACUATED FROM A COMBAT ZONE FOR INPATIENT 
                   CARE.

       (a) Audit Required.--The Secretary of the Army shall 
     conduct a complete audit of the pay accounts of each member 
     of the Army wounded or injured in a combat zone who was 
     evacuated from a theater of operations for inpatient care 
     during the period beginning on May 1, 2005, and ending on 
     April 30, 2006.
       (b) Report on Results of Audit.--
       (1) Report required.--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 on the audit 
     conducted under subsection (a).
       (2) Identification of members.--The report shall include a 
     list of each member of the Army described in subsection (a) 
     identified, in a manner that protects the privacy of the 
     members, by--
       (A) the date of the wound or injury that is the basis for 
     the inclusion of the member on the list; and
       (B) the grade of the member and unit designation as of that 
     date.
       (3) Additional report elements.--For each member included 
     on the list prepared under paragraph (2), the report shall 
     include the following:
       (A) A statement of any underpayment of each of any pay, 
     allowance, or other monetary benefit to which the member was 
     entitled during the period beginning on the date on which the 
     wound or injury was incurred and ending on April 30, 2006, 
     including basic pay, hazardous duty pay, imminent danger pay, 
     basic allowance for housing, basic allowance for subsistence, 
     any family separation allowance, any tax exclusion for combat 
     duty, and any other pay, allowance, or monetary benefit to 
     which such member was entitled during such period.
       (B) A statement of any disbursements made to correct 
     underpayments made to the member, as identified under 
     subparagraph (A).
       (C) A statement of any debts to the United States collected 
     or pending collection from the member.
       (D) A statement of any reimbursements or debt relief 
     granted to the member for a debt identified under 
     subparagraph (C).
       (E) If the members has applied to the United States for a 
     relief of debt--
       (i) a description of the nature of the debt for which 
     relief was applied; and
       (ii) a description of the disposition of the application, 
     including--

       (I) if relief was granted, the date of disbursement of 
     relief; and
       (II) if relief was denied, the reasons for the denial of 
     relief.

       (F) A report of any referral of the member to a collection 
     or credit agency.
       (4) Form of report.--The report shall be submitted in 
     unclassified form, but may include a classified annex.

     SEC. 678. REPORT ON ELIGIBILITY AND PROVISION OF ASSIGNMENT 
                   INCENTIVE PAY.

       Not later than 60 days after the date of the enactment of 
     this Act, the Secretary of the Army shall submit to Congress 
     a report--
       (1) specifying the number of members of the Army National 
     Guard and the Army Reserve adversely affected by the 
     disparate treatment afforded to members who previously served 
     under a call or order to active duty under section 12304 of 
     title 10, United States Code, in determining eligibility for 
     assignment incentive pay; and
       (2) containing proposed remedies or courses of action to 
     correct this disparity, including allowing time served during 
     a call or order to active duty under such section 12304 to 
     count toward the time needed to qualify for assignment 
     incentive pay.

     SEC. 679. SENSE OF CONGRESS CALLING FOR PAYMENT TO WORLD WAR 
                   II VETERANS WHO SURVIVED BATAAN DEATH MARCH.

       (a) Call for Appropriate Compensation.--It is the sense of 
     Congress that--
       (1) there should be paid to each living Bataan Death March 
     survivor an appropriate amount of compensation in recognition 
     of their captivity during World War II; and
       (2) in the case of a Bataan Death March survivor who is 
     deceased, but who has an unremarried surviving spouse, such 
     compensation should be paid to that surviving spouse.
       (b) Bataan Death March Survivor.--In this section, the term 
     ``Bataan Death March survivor'' means an individual who as a 
     member of the Armed Forces during World War II was captured 
     on the peninsula of Bataan or island of Corregidor in the 
     territory of the Philippines by Japanese forces and 
     participated in and survived the Bataan Death March.
                   TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

Sec. 701. TRICARE coverage for forensic examination following sexual 
              assault or domestic violence.
Sec. 702. Authorization of anesthesia and other costs for dental care 
              for children and certain other patients.
Sec. 703. Improvements to descriptions of cancer screening for women.
Sec. 704. Prohibition on increases in certain health care costs for 
              members of the uniformed services.
Sec. 705. Demonstration project on coverage of selected over-the-
              counter drugs under the pharmacy benefits program.
Sec. 706. Expanded eligibility of Selected Reserve members under 
              TRICARE program.
Sec. 707. Relationship between the TRICARE program and employer-
              sponsored group health care plans.
Sec. 708. Temporary prohibition on increase in copayments under retail 
              pharmacy system of pharmacy benefits program.

                    Subtitle B--Studies and Reports

Sec. 711. Department of Defense task force on the future of military 
              health care.
Sec. 712. Study relating to chiropractic health care services.
Sec. 713. Comptroller General audits of Department of Defense health 
              care costs and cost-saving measures.
Sec. 714. Transfer of custody of the Air Force Health Study assets to 
              Medical Follow-up Agency.
Sec. 715. Study on allowing dependents of activated members of reserve 
              components to retain civilian health care coverage.
Sec. 716. Study of health effects of exposure to depleted uranium.
Sec. 717. Report and plan on services to military dependent children 
              with autism.
Sec. 718. Comptroller General study on Department of Defense pharmacy 
              benefits program.
Sec. 719. Review of Department of Defense medical quality improvement 
              program.
Sec. 720. Report on distribution of hemostatic agents for use in the 
              field.
Sec. 721. Longitudinal study on traumatic brain injury incurred by 
              members of the Armed Forces in Operation Iraqi Freedom 
              and Operation Enduring Freedom.

           Subtitle C--Planning, Programming, and Management

Sec. 731. Standardization of claims processing under TRICARE program 
              and Medicare program.
Sec. 732. Requirements for support of military treatment facilities by 
              civilian contractors under TRICARE.

[[Page 20803]]

Sec. 733. Standards and tracking of access to health care services for 
              wounded, injured, or ill servicemembers returning to the 
              United States from a combat zone.
Sec. 734. Disease and chronic care management.
Sec. 735. Additional elements of assessment of Department of Defense 
              task force on mental health relating to mental health of 
              members who were deployed in Operation Iraqi Freedom and 
              Operation Enduring Freedom.
Sec. 736. Additional authorized option periods for extension of current 
              contracts under TRICARE.
Sec. 737. Military vaccination matters.
Sec. 738. Enhanced mental health screening and services for members of 
              the Armed Forces.

                       Subtitle D--Other Matters

Sec. 741. Pilot projects on early diagnosis and treatment of post 
              traumatic stress disorder and other mental health 
              conditions.
Sec. 742. Requirement to certify and report on conversion of military 
              medical and dental positions to civilian medical and 
              dental positions.
Sec. 743. Three-year extension of joint incentives program on sharing 
              of health care resources by the Department of Defense and 
              Department of Veterans Affairs.
Sec. 744. Training curricula for family caregivers on care and 
              assistance for members and former members of the Armed 
              Forces with traumatic brain injury.
Sec. 745. Recognition of Representative Lane Evans upon his retirement 
              from the House of Representatives.
                Subtitle A--TRICARE Program Improvements

     SEC. 701. TRICARE COVERAGE FOR FORENSIC EXAMINATION FOLLOWING 
                   SEXUAL ASSAULT OR DOMESTIC VIOLENCE.

       Section 1079(a) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(17) Forensic examinations following a sexual assault or 
     domestic violence may be provided.''.

     SEC. 702. AUTHORIZATION OF ANESTHESIA AND OTHER COSTS FOR 
                   DENTAL CARE FOR CHILDREN AND CERTAIN OTHER 
                   PATIENTS.

       Paragraph (1) of section 1079(a) of title 10, United States 
     Code, is amended to read as follows:
       ``(1) With respect to dental care--
       ``(A) except as provided in subparagraph (B), only that 
     care required as a necessary adjunct to medical or surgical 
     treatment may be provided; and
       ``(B) in connection with dental treatment for patients with 
     developmental, mental, or physical disabilities or for 
     pediatric patients age 5 or under, only institutional and 
     anesthesia services may be provided.''.

     SEC. 703. IMPROVEMENTS TO DESCRIPTIONS OF CANCER SCREENING 
                   FOR WOMEN.

       (a) Terms Related to Primary and Preventive Health Care 
     Services for Women.--Section 1074d of title 10, United States 
     Code, is amended--
       (1) in subsection (a)(1), by adding at the end the 
     following new sentence: ``The services described in 
     paragraphs (1) and (2) of subsection (b) shall be provided 
     under such procedures and at such intervals as the Secretary 
     of Defense shall prescribe.''; and
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``Papanicolaou tests (pap 
     smear)'' and inserting ``Cervical cancer screening''; and
       (B) in paragraph (2), by striking ``Breast examinations and 
     mammography'' and inserting ``Breast cancer screening''.
       (b) Terms Related to Contracts for Medical Care for Spouses 
     and Children.--Section 1079(a)(2) of such title is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``the schedule of pap smears and mammograms'' and inserting 
     ``the schedule and method of cervical cancer screenings and 
     breast cancer screenings''; and
       (2) in subparagraph (B), by striking ``pap smears and 
     mammograms'' and inserting ``cervical and breast cancer 
     screenings''.

     SEC. 704. PROHIBITION ON INCREASES IN CERTAIN HEALTH CARE 
                   COSTS FOR MEMBERS OF THE UNIFORMED SERVICES.

       (a) Prohibition on Increase in Charges Under Contracts for 
     Medical Care.--Section 1097(e) of title 10, United States 
     Code, is amended by adding at the end the following: ``A 
     premium, deductible, copayment, or other charge prescribed by 
     the Secretary under this subsection may not be increased 
     during the period beginning on April 1, 2006, and ending on 
     September 30, 2007.''.
       (b) Prohibition on Increase in Charges for Inpatient 
     Care.--Section 1086(b)(3) of title 10, United States Code, is 
     amended by inserting after ``charges for inpatient care'' the 
     following: ``, except that in no case may the charges for 
     inpatient care for a patient exceed $535 per day during the 
     period beginning on April 1, 2006, and ending on September 
     30, 2007.''.
       (c) Prohibition on Increase in Premiums Under TRICARE 
     Coverage for Certain Members in the Selected Reserve.--
     Section 1076d(d)(3) of title 10, United States Code, is 
     amended by adding at the end the following: ``During the 
     period beginning on April 1, 2006, and ending on September 
     30, 2007, the monthly amount of the premium may not be 
     increased above the amount in effect for the month of March 
     2006.''.
       (d) Prohibition on Increase in Premiums Under TRICARE 
     Coverage for Members of the Ready Reserve.--Section 
     1076b(e)(3) of title 10, United States Code, is amended by 
     adding at the end the following: ``During the period 
     beginning on April 1, 2006, and ending on September 30, 2007, 
     the monthly amount of a premium under paragraph (2) may not 
     be increased above the amount in effect for the first month 
     health care is provided under this section as amended by 
     Public Law 109-163.''.

     SEC. 705. DEMONSTRATION PROJECT ON COVERAGE OF SELECTED OVER-
                   THE-COUNTER DRUGS UNDER THE PHARMACY BENEFITS 
                   PROGRAM.

       (a) Requirement to Conduct Demonstration.--The Secretary of 
     Defense shall conduct a demonstration project under section 
     1092 of title 10, United States Code, to allow particular 
     over-the-counter drugs to be included on the uniform 
     formulary under section 1074g of such title.
       (b) Elements of Demonstration Project.--
       (1) Inclusion of certain over-the-counter drugs.--(A) As 
     part of the demonstration project, the Secretary shall modify 
     uniform formulary specifications under section 1074g(a) of 
     such title to include an over-the-counter drug (referred to 
     in this section as an ``OTC drug'') on the uniform formulary 
     if the Pharmacy and Therapeutics Committee finds that the OTC 
     drug is cost-effective and therapeutically equivalent to a 
     prescription drug. If the Pharmacy and Therapeutics Committee 
     makes such a finding, the OTC drug shall be considered to be 
     in the same therapeutic class of pharmaceutical agents as the 
     prescription drug.
       (B) An OTC drug shall be made available to a beneficiary 
     through the demonstration project, but only if--
       (i) the beneficiary has a prescription for a drug requiring 
     a prescription; and
       (ii) pursuant to subparagraph (A), the OTC drug--
       (I) is on the uniform formulary; and
       (II) has been determined to be therapeutically equivalent 
     to the prescription drug.
       (2) Conduct through military facilities, retail pharmacies, 
     or mail order program.--The Secretary shall conduct the 
     demonstration project through at least two of the means 
     described in subparagraph (E) of section 1074g(a)(2)(E) of 
     such title through which OTC drugs are provided and may 
     conduct the demonstration project throughout the entire 
     pharmacy benefits program or at a limited number of sites. If 
     the project is conducted at a limited number of sites, the 
     number of sites shall be not less than five in each TRICARE 
     region for each of the two means described in such 
     subparagraph.
       (3) Period of demonstration.--The Secretary shall provide 
     for conducting the demonstration project for a period of time 
     necessary to evaluate the feasibility and cost effectiveness 
     of the demonstration. Such period shall be at least as long 
     as the period covered by pharmacy contracts in existence on 
     the date of the enactment of this Act (including any 
     extensions of the contracts), or five years, whichever is 
     shorter.
       (4) Implementation deadline.--Implementation of the 
     demonstration project shall begin not later than May 1, 2007.
       (c) Evaluation of Demonstration Project.--The Secretary 
     shall evaluate the demonstration project for the following:
       (1) The costs and benefits of providing OTC drugs under the 
     pharmacy benefits program in each of the means chosen by the 
     Secretary to conduct the demonstration project.
       (2) The clinical effectiveness of providing OTC drugs under 
     the pharmacy benefits program.
       (3) Customer satisfaction with the demonstration project.
       (d) Report.--Not later than two years after implementation 
     of the demonstration project begins, the Secretary shall 
     submit to the Committees on Armed Services of the Senate and 
     House of Representatives a report on the demonstration 
     project. The report shall contain--
       (1) the evaluation required by subsection (c);
       (2) recommendations for improving the provision of OTC 
     drugs under the pharmacy benefits program; and
       (3) recommendations on whether permanent authority should 
     be provided to cover OTC drugs under the pharmacy benefits 
     program.
       (e) Continuation of Demonstration Project.--If the 
     Secretary recommends in the report under subsection (d) that 
     permanent authority should be provided, the Secretary may 
     continue the demonstration project for up to one year after 
     submitting the report.
       (f) Definitions.--In this section:
       (1) The term ``drug'' means a drug, including a biological 
     product, within the meaning of section 1074g(f)(2) of title 
     10, United States Code.
       (2) The term ``OTC drug'' has the meaning indicated for 
     such term in subsection (b)(1)(A).
       (3) The term ``over-the-counter drug'' means a drug that is 
     not subject to section 503(b) of the Federal Food, Drug, and 
     Cosmetic Act.
       (4) The term ``prescription drug'' means a drug that is 
     subject to section 503(b) of the Federal Food, Drug, and 
     Cosmetic Act.

     SEC. 706. EXPANDED ELIGIBILITY OF SELECTED RESERVE MEMBERS 
                   UNDER TRICARE PROGRAM.

       (a) General Eligibility.--Subsection (a) of section 1076d 
     of title 10, United States Code, is amended--
       (1) by striking ``(a) Eligibility.--A member'' and 
     inserting ``(a) Eligibility.--(1) Except as provided in 
     paragraph (2), a member'';
       (2) by striking ``after the member completes'' and all that 
     follows through ``one or more whole years following such 
     date''; and

[[Page 20804]]

       (3) by adding at the end the following new paragraph:
       ``(2) Paragraph (1) does not apply to a member who is 
     enrolled, or is eligible to enroll, in a health benefits plan 
     under chapter 89 of title 5.''.
       (b) Condition for Termination of Eligibility.--Subsection 
     (b) of such section is amended--
       (1) by striking ``(b) Period of Coverage.--(1) TRICARE 
     Standard'' and all that follows through ``(4) Eligibility'' 
     and inserting ``(b) Termination of Eligibility Upon 
     Termination of Service.--Eligibility''; and
       (2) by striking paragraph (5).
       (c) Conforming Amendments.--
       (1) Such section is further amended--
       (A) by striking subsection (e);
       (B) by redesignating subsection (g) as subsection (e) and 
     transferring such subsection within such section so as to 
     appear following subsection (d); and
       (C) by striking paragraph (3) of subsection (f).
       (2) The heading for such section is amended to read as 
     follows:

     ``Sec. 1076d. TRICARE program: TRICARE standard coverage for 
       members of the Selected Reserve''.

       (d) Repeal of Obsolete Provision.--Effective October 1, 
     2007, section 1076b of title 10, United States Code, is 
     repealed.
       (e) Clerical Amendments.--Effective October 1, 2007, the 
     table of sections at the beginning of chapter 55 of title 10, 
     United States Code, is amended--
       (1) by striking the item relating to section 1076b; and
       (2) by striking the item relating to section 1076d and 
     inserting the following:

``1076d. TRICARE program: TRICARE Standard coverage for members of the 
              Selected Reserve.''.
       (f) Savings Provision.--Enrollments in TRICARE Standard 
     that are in effect on the day before the date of the 
     enactment of this Act under section 1076d of title 10, United 
     States Code, as in effect on such day, shall be continued 
     until terminated after such day under such section 1076d as 
     amended by this section.
       (g) Effective Date.--The Secretary of Defense shall ensure 
     that health care under TRICARE Standard is provided under 
     section 1076d of title 10, United States Code, as amended by 
     this section, beginning not later than October 1, 2007.

     SEC. 707. RELATIONSHIP BETWEEN THE TRICARE PROGRAM AND 
                   EMPLOYER-SPONSORED GROUP HEALTH CARE PLANS.

       (a) In General.--Chapter 55 of title 10, United States 
     Code, is amended by inserting after section 1097b the 
     following new section:

     ``Sec. 1097c. TRICARE program: relationship with employer-
       sponsored group health plans

       ``(a) Prohibition on Financial Incentives Not to Enroll in 
     a Group Health Plan.--(1) Except as provided in this 
     subsection, the provisions of section 1862(b)(3)(C) of the 
     Social Security Act shall apply with respect to financial or 
     other incentives for a TRICARE-eligible employee not to 
     enroll (or to terminate enrollment) under a health plan which 
     would (in the case of such enrollment) be a primary plan 
     under sections 1079(j)(1) and 1086(g) of this title in the 
     same manner as such section 1862(b)(3)(C) applies to 
     financial or other incentives for an individual entitled to 
     benefits under title XVIII of the Social Security Act not to 
     enroll (or to terminate enrollment) under a group health plan 
     or a large group health plan which would (in the case of 
     enrollment) be a primary plan (as defined in section 
     1862(b)(2)(A) of such Act).
       ``(2)(A) The Secretary of Defense may by regulation adopt 
     such additional exceptions to the prohibition referenced and 
     applied under paragraph (1) as the Secretary deems 
     appropriate and such paragraph (1) shall be implemented 
     taking into account the adoption of such exceptions.
       ``(B) The Secretary of Defense and the Secretary of Health 
     and Human Services are authorized to enter into agreements 
     for carrying out this subsection. Any such agreement shall 
     provide that any expenses incurred by the Secretary of Health 
     and Human Services pertaining to carrying out this subsection 
     shall be reimbursed by the Secretary of Defense.
       ``(C) Authorities of the Inspector General of the 
     Department of Defense shall be available for oversight and 
     investigations of responsibilities of employers and other 
     entities under this subsection.
       ``(D) Information obtained under section 1095(k) of this 
     title may be used in carrying out this subsection in the same 
     manner as information obtained under section 1862(b)(5) of 
     the Social Security may be used in carrying out section 
     1862(b) of such Act.
       ``(E) Any amounts collected in carrying out paragraph (1) 
     shall be handled in accordance with section 1079a of this 
     title.
       ``(b) Election of Tricare-Eligible Employees to Participate 
     in Group Health Plan.--A TRICARE-eligible employee shall have 
     the opportunity to elect to participate in the group health 
     plan offered by the employer of the employee and receive 
     primary coverage for health care services under the plan in 
     the same manner and to the same extent as similarly situated 
     employees of such employer who are not TRICARE-eligible 
     employees.
       ``(c) Inapplicability to Certain Employers.--The provisions 
     of this section do not apply to any employer who has fewer 
     than 20 employees.
       ``(d) Retention of Eligibility for Coverage Under 
     Tricare.--Nothing in this section, including an election made 
     by a TRICARE-eligible employee under subsection (b), shall be 
     construed to affect, modify, or terminate the eligibility of 
     a TRICARE-eligible employee or spouse of such employee for 
     health care or dental services under this chapter in 
     accordance with the other provisions of this chapter.
       ``(e) Outreach.--The Secretary of Defense shall, in 
     coordination with the other administering Secretaries, 
     conduct outreach to inform covered beneficiaries who are 
     entitled to health care benefits under the TRICARE program of 
     the rights and responsibilities of such beneficiaries and 
     employers under this section.
       ``(f) Definitions.--In this section:
       ``(1) The term `employer' includes a State or unit of local 
     government.
       ``(2) The term `group health plan' means a group health 
     plan (as that term is defined in section 5000(b)(1) of the 
     Internal Revenue Code of 1986 without regard to section 
     5000(d) of the Internal Revenue Code of 1986).
       ``(3) The term `TRICARE-eligible employee' means a covered 
     beneficiary under section 1086 of this title entitled to 
     health care benefits under the TRICARE program.
       ``(g) Effective Date.--This section shall take effect on 
     January 1, 2008.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 55 of such title is amended by inserting 
     after the item relating to section 1097b the following new 
     item:

``1097c. TRICARE program: relationship with employer-sponsored group 
              health plans.''.

     SEC. 708. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS 
                   UNDER RETAIL PHARMACY SYSTEM OF PHARMACY 
                   BENEFITS PROGRAM.

       (a) Temporary Prohibition.--During the period beginning on 
     October 1, 2006, and ending on September 30, 2007, the cost 
     sharing requirements established under paragraph (6) of 
     section 1074g of title 10, United States Code, for 
     pharmaceutical agents available through retail pharmacies 
     covered by paragraph (2)(E)(ii) of such section may not 
     exceed amounts as follows:
       (1) In the case of generic agents, $3.
       (2) In the case of formulary agents, $9.
       (3) In the case of nonformulary agents, $22.
       (b) Transfer of Funds.--The Secretary of Defense shall 
     transfer $186,000,000 from the unobligated balances of the 
     National Defense Stockpile Transaction Fund to the Department 
     of Defense Medicare-Eligible Retiree Health Care Fund.
                    Subtitle B--Studies and Reports

     SEC. 711. DEPARTMENT OF DEFENSE TASK FORCE ON THE FUTURE OF 
                   MILITARY HEALTH CARE.

       (a) Requirement to Establish.--The Secretary of Defense 
     shall establish within the Department of Defense a task force 
     to examine matters relating to the future of military health 
     care.
       (b) Composition.--
       (1) Members.--The task force shall consist of not more than 
     14 members appointed by the Secretary of Defense from among 
     individuals described in paragraph (2) who have demonstrated 
     expertise in the area of health care programs and costs.
       (2) Range of members.--The individuals appointed to the 
     task force shall include--
       (A) at least one member of each of the Medical Departments 
     of the Army, Navy, and Air Force;
       (B) a number of persons from outside the Department of 
     Defense equal to the total number of personnel from within 
     the Department of Defense (whether members of the Armed 
     Forces or civilian personnel) who are appointed to the task 
     force;
       (C) persons who have experience in--
       (i) health care actuarial forecasting;
       (ii) health care program and budget development;
       (iii) health care information technology;
       (iv) health care performance measurement;
       (v) health care quality improvement including evidence-
     based medicine; and
       (vi) women's health;
       (D) the senior medical advisor to the Chairman of the Joint 
     Chiefs of Staff;
       (E) the Director of Defense Procurement and Acquisition 
     Policy in the Office of the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics;
       (F) at least one member from the Defense Business Board;
       (G) at least one representative from an organization that 
     advocates on behalf of active duty and retired members of the 
     Armed Forces who has experience in health care; and
       (H) at least one member from the Institute of Medicine.
       (3) Individuals appointed outside the department of 
     defense.--
       (A) Individuals appointed to the task force from outside 
     the Department of Defense may include officers or employees 
     of other departments or agencies of the Federal Government, 
     officers or employees of State and local governments, or 
     individuals from the private sector.
       (B) Individuals appointed to the task force from outside 
     the Department of Defense shall include--
       (i) an officer or employee of the Department of Veterans 
     Affairs; and
       (ii) an officer or employee of the Department of Health and 
     Human Services.
       (4) Deadline for appointment.--All appointments of 
     individuals to the task force shall be made not later than 90 
     days after the date of the enactment of this Act.
       (5) Co-chairs of task force.--There shall be two co-chairs 
     of the task force. One of the co-

[[Page 20805]]

     chairs shall be designated by the Secretary of Defense at the 
     time of appointment from among the Department of Defense 
     personnel appointed to the task force. The other co-chair 
     shall be selected from among the members appointed from 
     outside the Department of Defense by members so appointed.
       (c) Assessment and Recommendations on the Future of 
     Military Health Care.--
       (1) In general.--Not later than 12 months after the date on 
     which all members of the task force have been appointed, the 
     task force shall submit to the Secretary a report containing 
     an assessment of, and recommendations for, sustaining the 
     military health care services being provided to members of 
     the Armed Forces, retirees, and their families.
       (2) Utilization of other efforts.--In preparing the report, 
     the task force shall take into consideration the findings and 
     recommendations included in the Healthcare for Military 
     Retirees Task Group of the Defense Business Board, previous 
     Government Accountability Office reports, studies and reviews 
     by the Assistant Secretary of Defense for Health Affairs, and 
     any other studies or research conducted by organizations 
     regarding program and organizational improvements to the 
     military health care system.
       (3) Elements.--The assessment and recommendations 
     (including recommendations for legislative or administrative 
     action) shall include measures to address the following:
       (A) Wellness initiatives and disease management programs of 
     the Department of Defense, including health risk tracking and 
     the use of rewards for wellness.
       (B) Education programs focused on prevention awareness and 
     patient-initiated health care.
       (C) The ability to account for the true and accurate cost 
     of health care in the military health system.
       (D) Alternative health care initiatives to manage patient 
     behavior and costs, including options and costs and benefits 
     of a universal enrollment system for all TRICARE users.
       (E) The appropriate command and control structure within 
     the Department of Defense and the Armed Forces to manage the 
     military health system.
       (F) The adequacy of the military health care procurement 
     system, including methods to streamline existing procurement 
     activities.
       (G) The appropriate mix of military and civilian personnel 
     to meet future readiness and high-quality health care service 
     requirements.
       (H) The beneficiary and Government cost sharing structure 
     required to sustain military health benefits over the long 
     term.
       (I) Programs focused on managing the health care needs of 
     Medicare-eligible military beneficiaries.
       (J) Efficient and cost effective contracts for health care 
     support and staffing services, including performance-based 
     requirements for health care provider reimbursement.
       (d) Administrative Matters.--
       (1) Compensation.--Each member of the task force who is a 
     member of the Armed Forces or a civilian officer or employee 
     of the United States shall serve without compensation (other 
     than compensation to which entitled as a member of the Armed 
     Forces or an officer or employee of the United States, as the 
     case may be). Other members of the task force shall be 
     treated for purposes of section 3161 of title 5, United 
     States Code, as having been appointed under subsection (b) of 
     such section.
       (2) Oversight.--The Under Secretary of Defense for 
     Personnel and Readiness shall oversee the activities of the 
     task force.
       (3) Administrative support.--The Washington Headquarters 
     Services of the Department of Defense shall provide the task 
     force with personnel, facilities, and other administrative 
     support as necessary for the performance of the duties of the 
     task force.
       (4) Access to facilities.--The Under Secretary of Defense 
     for Personnel and Readiness shall, in coordination with the 
     Secretaries of the military departments, ensure appropriate 
     access by the task force to military installations and 
     facilities for purposes of the discharge of the duties of the 
     task force.
       (e) Reports.--
       (1) Interim report.--Not later than May 31, 2007, the task 
     force shall submit to the Secretary of Defense and the 
     Committees on Armed Services of the Senate and the House of 
     Representatives an interim report on the activities of the 
     task force. At a minimum, the report shall include interim 
     findings and recommendations regarding subsection (c)(3)(H), 
     particularly with regard to cost sharing under the pharmacy 
     benefits program.
       (2) Final report.--(A) The task force shall submit to the 
     Secretary of Defense a final report on its activities under 
     this section. The report shall include--
       (i) a description of the activities of the task force;
       (ii) the assessment and recommendations required by 
     subsection (c); and
       (iii) such other matters relating to the activities of the 
     task force that the task force considers appropriate.
       (B) Not later than 90 days after receipt of the report 
     under subparagraph (A), the Secretary shall transmit the 
     report to the Committees on Armed Services of the Senate and 
     the House of Representatives. The Secretary may include in 
     the transmittal such comments on the report as the Secretary 
     considers appropriate
       (f) Termination.--The task force shall terminate 90 days 
     after the date on which the final report of the task force is 
     transmitted to Congress under subsection (e)(2).

     SEC. 712. STUDY RELATING TO CHIROPRACTIC HEALTH CARE 
                   SERVICES.

       (a) Study Required.--
       (1) Groups covered.--The Secretary of Defense shall conduct 
     a study of providing chiropractic health care services and 
     benefits to the following groups:
       (A) All members of the uniformed services on active duty 
     and entitled to care under section 1074(a) of title 10, 
     United States Code.
       (B) All members described in subparagraph (A) and their 
     eligible dependents, and all members of the Selected Reserves 
     and their eligible dependents.
       (C) All members or former members of the uniformed services 
     who are entitled to retired or retainer pay or equivalent pay 
     and their eligible dependents.
       (2) Matters examined.--
       (A) For each group listed in subparagraphs (A), (B), and 
     (C) of paragraph (1), the study shall examine the following 
     with respect to chiropractic health care services and 
     benefits:
       (i) The cost of providing such services and benefits.
       (ii) The feasibility of providing such services and 
     benefits.
       (iii) An assessment of the health care benefits of 
     providing such services and benefits.
       (iv) An estimate of the potential cost savings of providing 
     such services and benefits in lieu of other medical services.
       (v) The identification of existing and planned health care 
     infrastructure, including personnel, equipment, and 
     facilities, to accommodate the provision of chiropractic 
     health care services.
       (B) For the members of the group listed in subparagraph (A) 
     of paragraph (1), the study shall also examine the effects of 
     providing chiropractic health care services and benefits--
       (i) on the readiness of such members; and
       (ii) on the acceleration of the return to duty of such 
     members following an identified injury or other malady that 
     can be appropriately treated with chiropractic health care 
     services.
       (3) Space available costs.--The study shall also include a 
     detailed analysis of the projected costs of providing 
     chiropractic health care services on a space available basis 
     in the military treatment facilities currently providing 
     chiropractic care under section 702 of the Floyd D. Spence 
     National Defense Authorization Act of Fiscal Year 2001 (as 
     enacted by Public Law 106-398; 10 U.S.C. 1092 note).
       (4) Eligible dependent defined.--In this section, the term 
     ``eligible dependent'' has the meaning given that term in 
     section 1076a(k) of title 10, United States Code.
       (b) Report Required.--Not later than March 31, 2008, the 
     Secretary of Defense shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives a 
     report on the study required under subsection (a) .

     SEC. 713. COMPTROLLER GENERAL AUDITS OF DEPARTMENT OF DEFENSE 
                   HEALTH CARE COSTS AND COST-SAVING MEASURES.

       (a) General Audit Required.--
       (1) In general.--The Comptroller General of the United 
     States, in cooperation with the Director of the Congressional 
     Budget Office, shall conduct an audit of the Department of 
     Defense initiative to manage future medical benefits 
     available through the Department known as ``Sustain the 
     Benefit''.
       (2) Elements.--The audit required by paragraph (1) shall 
     examine the following:
       (A) The basis for the calculation by the Department of 
     Defense of the portion of the costs of health care benefits 
     provided by the Department to beneficiaries that were paid by 
     such beneficiaries in each of 1995 and 2005, including--
       (i) a comparison of the cost to the Department of providing 
     such benefits in each of 1995 and 2005;
       (ii) the explanation for any increases in the costs of the 
     Department of providing such benefits between 1995 and 2005; 
     and
       (iii) a comparison of the amounts paid, by category of 
     beneficiaries, for health care benefits in 1995 with the 
     amounts paid, by category of beneficiaries, for such benefits 
     in 2005.
       (B) The calculations and assumptions utilized by the 
     Department in estimating the savings anticipated through the 
     implementation of proposed increases in cost-sharing for 
     health care benefits beginning in 2007.
       (C) The average annual rate of increase, based on 
     inflation, of medical costs for the Department under the 
     Defense Health Program.
       (D) The annual rate of growth in the cost of the Defense 
     Health Program that is attributable to inflation in the cost 
     of medical services over the last five years and how such 
     rate of growth compares with annual rates of increases in 
     health care premiums under the Federal Employee Health 
     Benefit Program and other health care programs as well as 
     rates of growth of other health care cost indices over that 
     time.
       (E) The assumptions utilized by the Department in 
     estimating savings associated with adjustments in copayments 
     for pharmaceuticals.
       (F) The costs of the administration of the Defense Health 
     Program and the TRICARE program for all categories of 
     beneficiaries.
       (b) Audit of Tricare Reserve Select Program.--
       (1) In general.--In addition to the audit required by 
     subsection (a), the Comptroller General shall conduct an 
     audit of the costs of the Department of Defense in 
     implementing the TRICARE Reserve Select Program.
       (2) Elements.--The audit required by paragraph (1) shall 
     include an examination of the following:
       (A) A comparison of the annual premium amounts established 
     by the Department of Defense for the TRICARE Reserve Select 
     Program

[[Page 20806]]

     with the actual costs of the Department in providing benefits 
     under that program in fiscal years 2004 and 2005.
       (B) The rate of inflation of health care costs of the 
     Department during fiscal years 2004 and 2005, and a 
     comparison of that rate of inflation with the annual increase 
     in premiums under the TRICARE Reserve Select Program in 
     January 2006.
       (C) A comparison of the financial and health-care 
     utilization assumptions utilized by the Department in 
     establishing premiums under the TRICARE Reserve Select 
     Program with actual experiences under that program in the 
     first year of the implementation of that program.
       (3) Tricare reserve select program defined.--In this 
     section, the term ``TRICARE Reserve Select Program'' means 
     the program carried out under section 1076d of title 10, 
     United States Code.
       (c) Use of Independent Experts.--Notwithstanding any other 
     provision of law, in conducting the audits required by this 
     section, the Comptroller General may engage the services of 
     appropriate independent experts, including actuaries.
       (d) Report.--Not later than June 1, 2007, the Comptroller 
     General shall submit to the congressional defense committees 
     a report on the audits conducted under this section. The 
     report shall include--
       (1) the findings of the Comptroller General as a result of 
     the audits; and
       (2) such recommendations as the Comptroller General 
     considers appropriate in light of such findings to ensure 
     maximum efficiency in the administration of the health care 
     benefits programs of the Department of Defense.

     SEC. 714. TRANSFER OF CUSTODY OF THE AIR FORCE HEALTH STUDY 
                   ASSETS TO MEDICAL FOLLOW-UP AGENCY.

       (a) Transfer.--
       (1) Notification of participants.--The Secretary of the Air 
     Force shall notify the participants of the Air Force Health 
     Study that the study as currently constituted is ending as of 
     September 30, 2006. In consultation with the Medical Follow-
     up Agency (in this section referred to as the ``Agency'') of 
     the Institute of Medicine of the National Academy of 
     Sciences, the Secretary of the Air Force shall request the 
     written consent of the participants to transfer their data 
     and biological specimens to the Agency during fiscal year 
     2007 and written consent for the Agency to maintain the data 
     and specimens and make them available for additional studies.
       (2) Completion of transfer.--Custodianship of the Air Force 
     Health Study shall be completely transferred to the Agency on 
     or before September 30, 2007. Assets to be transferred shall 
     include electronic data files and biological specimens of all 
     the study participants.
       (3) Copies to archives.--The Air Force shall send paper 
     copies of all study documents to the National Archives.
       (b) Report on Transfer.--
       (1) Requirement.--Not later than 30 days after completion 
     of the transfer of the assets of the Air Force Health Study 
     under subsection (a), the Secretary of the Air Force shall 
     submit to the Committees on Armed Services of the Senate and 
     the House of Representatives a report on the transfer.
       (2) Matters covered.--At a minimum, the report shall 
     include information on the number of study participants whose 
     data and biological specimens were not transferred, the 
     efforts that were taken to contact such participants, and the 
     reasons why the transfer of their data and specimens did not 
     occur.
       (c) Disposition of Assets Not Transferred.--The Secretary 
     of the Air Force may not destroy any data or biological 
     specimens not transferred under subsection (a) until the 
     expiration of the one-year period following submission of the 
     report under subsection (b).
       (d) Funding.--
       (1) Costs of transfer.--The Secretary of Defense shall make 
     available to the Air Force $850,000 for preparation, transfer 
     of the assets of the Air Force Health Study, and shipment of 
     data and specimens to the Medical Follow-up Agency and the 
     National Archives during fiscal year 2007 from amounts 
     available from the Department of Defense for that fiscal 
     year. The Secretary of Defense is authorized to transfer the 
     freezers and other physical assets assigned to the Air Force 
     Health Study to the Agency without charge.
       (2) Costs of collaboration.--The Secretary of Defense may 
     reimburse the National Academy of Sciences up to $200,000 for 
     costs of the Medical Follow-up Agency to collaborate with the 
     Air Force in the transfer and receipt of the assets of the 
     Air Force Health Study to the Agency during fiscal year 2007 
     from amounts available from the Department of Defense for 
     that fiscal year.

     SEC. 715. STUDY ON ALLOWING DEPENDENTS OF ACTIVATED MEMBERS 
                   OF RESERVE COMPONENTS TO RETAIN CIVILIAN HEALTH 
                   CARE COVERAGE.

       (a) Study Requirement.--The Secretary of Defense shall 
     conduct a study on the feasibility of allowing family members 
     of members of the reserve components of the Armed Forces who 
     are called or ordered to active duty in support of a 
     contingency operation to continue health care coverage under 
     a civilian health care program and provide reimbursement for 
     such health care.
       (b) Elements.--The study required by subsection (a) shall 
     include the following:
       (1) An assessment of the number of military dependents with 
     special health care needs (such as ongoing chemotherapy or 
     physical therapy) who would benefit from continued coverage 
     under the member's civilian health care plan instead of 
     enrolling in the TRICARE program.
       (2) An assessment of the feasibility of providing 
     reimbursement to the member or the sponsor of the civilian 
     health coverage.
       (3) A recommendation on the appropriate rate of 
     reimbursement for members or sponsors of civilian health 
     coverage.
       (4) The feasibility of including dependents who do not have 
     access to health care providers that accept payment under the 
     TRICARE program.
       (c) Report Required.--Not later than 180 days after the 
     date of the enactment 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 the study 
     required under subsection (a).

     SEC. 716. STUDY OF HEALTH EFFECTS OF EXPOSURE TO DEPLETED 
                   URANIUM.

       (a) Study.--The Secretary of Defense, in consultation with 
     the Secretary for Veterans Affairs and the Secretary of 
     Health and Human Services, shall conduct a comprehensive 
     study of the health effects of exposure to depleted uranium 
     munitions on uranium-exposed soldiers and on children of 
     uranium-exposed soldiers who were born after the exposure of 
     the uranium-exposed soldiers to depleted uranium.
       (b) Uranium-Exposed Soldiers.--In this section, the term 
     ``uranium-exposed soldiers'' means a member or former member 
     of the Armed Forces who handled, came in contact with, or had 
     the likelihood of contact with depleted uranium munitions 
     while on active duty, including members and former members 
     who--
       (1) were exposed to smoke from fires resulting from the 
     burning of vehicles containing depleted uranium munitions or 
     fires at depots at which depleted uranium munitions were 
     stored;
       (2) worked within environments containing depleted uranium 
     dust or residues from depleted uranium munitions;
       (3) were within a structure or vehicle while it was struck 
     by a depleted uranium munition;
       (4) climbed on or entered equipment or structures struck by 
     a depleted uranium munition; or
       (5) were medical personnel who provided initial treatment 
     to members of the Armed Forces described in paragraph (1), 
     (2), (3), or (4).
       (c) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to Congress a report on the results of the study described in 
     subsection (a).

     SEC. 717. REPORT AND PLAN ON SERVICES TO MILITARY DEPENDENT 
                   CHILDREN WITH AUTISM.

       (a) Plan Required.--The Secretary of Defense shall, within 
     180 days after the date of the enactment of this Act, develop 
     a plan to provide services to military dependent children 
     with autism pursuant to the authority for an extended health 
     care services program in subsections (d) and (e) of section 
     1079 of title 10, United States Code. Such plan shall 
     include--
       (1) requirements for the education, training, and 
     supervision of individuals providing services for military 
     dependent children with autism;
       (2) standards for identifying and measuring the 
     availability, distribution, and training of individuals of 
     various levels of expertise to provide such services; and
       (3) procedures to ensure that such services are in addition 
     to other publicly provided services to such children.
       (b) Participation of Affected Families.--In developing the 
     plan required under subsection (a), the Secretary shall 
     ensure the involvement and participation of affected military 
     families or their representatives.
       (c) Report Required.--Not later than 30 days after 
     completion of the plan required under subsection (a), the 
     Secretary shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a report on the 
     plan. The report may include any additional information the 
     Secretary considers relevant.

     SEC. 718. COMPTROLLER GENERAL STUDY ON DEPARTMENT OF DEFENSE 
                   PHARMACY BENEFITS PROGRAM.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study of the Department of Defense 
     pharmacy benefits program required by section 1074g of title 
     10, United States Code.
       (b) Elements.--The study required by subsection (a) shall 
     include an examination of the following:
       (1) The cost of the Department of Defense pharmacy benefits 
     program since the inception of the program.
       (2) The relative costs of various options under the 
     program.
       (3) The copayment structure under the program.
       (4) The effectiveness of the rebate system under the 
     program as a way of passing on discounts received by the 
     Federal Government in the purchase of pharmaceutical agents.
       (5) The uniform formulary under the program, including the 
     success of the formulary in achieving savings anticipated 
     through use of the formulary.
       (6) Various alternative means of purchasing pharmaceutical 
     agents more efficiently for availability under the program.
       (7) The composition and decision-making processes of the 
     Pharmacy and Therapeutics Committee.
       (8) The composition of the Beneficiary Advisory Panel and 
     its history as an advisory panel under the program (including 
     the frequency of the acceptance of its recommendations by the 
     Secretary of Defense).
       (9) Quality assurance mechanisms under the program.

[[Page 20807]]

       (10) The role of the program in support of the disease and 
     chronic care management programs of the Department of 
     Defense.
       (11) Mechanisms for customer service and customer feedback 
     under the program.
       (12) Beneficiary satisfaction with the program.
       (c) Report.--Not later than nine months after the date of 
     the enactment of this Act, the Comptroller General shall 
     submit to the congressional defense committees a report on 
     the study required by subsection (a). The report shall 
     include such recommendations as the Comptroller General 
     considers appropriate for legislative or administrative 
     action to improve the Department of Defense pharmacy benefits 
     program in light of the study.

     SEC. 719. REVIEW OF DEPARTMENT OF DEFENSE MEDICAL QUALITY 
                   IMPROVEMENT PROGRAM.

       (a) Report Required.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment 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 actions taken in 
     response to the recommendations of the July 2001 report of 
     the Department of Defense Healthcare Quality Initiatives 
     Review Panel.
       (2) Matters covered.--The report shall address the status 
     of actions concerning each of the Panel's general and 
     specific recommendations, including the amount of resources 
     allocated by fiscal year to implement each recommendation. In 
     any instance in which no action has been taken, justification 
     for such inaction shall be provided in the report.
       (b) Review Required.--
       (1) In general.--The Secretary of Defense shall enter into 
     a contract with the Institute of Medicine of the National 
     Academy of Sciences, or another similarly qualified 
     independent academic medical organization, for the purpose of 
     conducting an independent review of the Department of Defense 
     medical quality improvement program.
       (2) Elements.--The review required pursuant to paragraph 
     (1) shall include the following:
       (A) An assessment of the methods used by the Department of 
     Defense to monitor medical quality in services provided in 
     military hospitals and clinics and in services provided in 
     civilian hospitals and providers under the military health 
     care system.
       (B) An assessment of the transparency and public reporting 
     mechanisms of the Department on medical quality.
       (C) An assessment of how the Department incorporates 
     medical quality into performance measures for military and 
     civilian health care providers within the military health 
     care system.
       (D) An assessment of the patient safety programs of the 
     Department.
       (E) A description of the extent to which the Department 
     seeks to address particular medical errors, and an assessment 
     of the adequacy of such efforts.
       (F) An assessment of accountability within the military 
     health care system for preventable negative outcomes 
     involving negligence.
       (G) An assessment of the performance of the health care 
     safety and quality measures of the Department.
       (H) An assessment of the collaboration of the Department 
     with national initiatives to develop evidence-based quality 
     measures and intervention strategies, especially the 
     initiatives of the Agency for Health Care Research and 
     Quality within the Department of Health and Human Services.
       (I) A comparison of the methods, mechanisms, and programs 
     and activities referred to in subparagraphs (A) through (G) 
     with similar methods, mechanisms, programs, and activities 
     used in other public and private health care systems and 
     organizations.
       (3) Report.--
       (A) In general.--Not later than one year after the date of 
     the enactment of this Act, the Secretary shall submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives a report on the review required pursuant to 
     paragraph (1).
       (B) Elements.--The report required by subparagraph (A) 
     shall include the following:
       (i) The results of the review required pursuant to 
     paragraph (1).
       (ii) A discussion of recent highlights in the 
     accomplishments of the Department of Defense medical quality 
     assurance program.
       (iii) Such recommendations for legislative or 
     administrative action as the Secretary considers appropriate 
     for the improvement of the program.

     SEC. 720. REPORT ON DISTRIBUTION OF HEMOSTATIC AGENTS FOR USE 
                   IN THE FIELD.

       Not later than 60 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 distribution 
     of hemostatic agents to members of the Armed Forces serving 
     in Iraq and Afghanistan, including a description of any 
     distribution problems and attempts to resolve such problems.

     SEC. 721. LONGITUDINAL STUDY ON TRAUMATIC BRAIN INJURY 
                   INCURRED BY MEMBERS OF THE ARMED FORCES IN 
                   OPERATION IRAQI FREEDOM AND OPERATION ENDURING 
                   FREEDOM.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a longitudinal study on the effects of traumatic brain injury 
     incurred by members of the Armed Forces serving in Operation 
     Iraqi Freedom or Operation Enduring Freedom on the members 
     who incur such an injury and their families.
       (b) Duration.--The study required by subsection (a) shall 
     be conducted for a period of 15 years.
       (c) Elements.--The study required by subsection (a) shall 
     specifically address the following:
       (1) The long-term physical and mental health effects of 
     traumatic brain injuries incurred by members of the Armed 
     Forces during service in Operation Iraqi Freedom or Operation 
     Enduring Freedom.
       (2) The health care, mental health care, and rehabilitation 
     needs of such members for such injuries after the completion 
     of inpatient treatment through the Department of Defense, the 
     Department of Veterans Affairs, or both.
       (3) The type and availability of long-term care 
     rehabilitation programs and services within and outside the 
     Department of Defense and the Department of Veterans Affairs 
     for such members for such injuries, including community-based 
     programs and services and in-home programs and services.
       (4) The effect on family members of a member incurring such 
     an injury.
       (d) Consultation.--The Secretary of Defense shall conduct 
     the study required by subsection (a) and prepare the reports 
     required by subsection (e) in consultation with the Secretary 
     of Veterans Affairs.
       (e) Periodic and Final Reports.--After the third, seventh, 
     eleventh, and fifteenth years of the study required by 
     subsection (a), the Secretary of Defense shall submit to 
     Congress a comprehensive report on the results of the study 
     during the preceding years. Each report shall include the 
     following:
       (1) Current information on the cumulative outcomes of the 
     study.
       (2) Such recommendations as the Secretary of Defense and 
     the Secretary of Veterans Affairs jointly consider 
     appropriate based on the outcomes of the study, including 
     recommendations for legislative, programmatic, or 
     administrative action to improve long-term care and 
     rehabilitation programs and services for members of the Armed 
     Forces with traumatic brain injuries.
           Subtitle C--Planning, Programming, and Management

     SEC. 731. STANDARDIZATION OF CLAIMS PROCESSING UNDER TRICARE 
                   PROGRAM AND MEDICARE PROGRAM.

       (a) In General.--Effective beginning with the next contract 
     option period for managed care support contracts under the 
     TRICARE program, the claims processing requirements under the 
     TRICARE program on the matters described in subsection (b) 
     shall be identical to the claims processing requirements 
     under the Medicare program on such matters.
       (b) Covered Matters.--The matters described in this 
     subsection are as follows:
       (1) The utilization of single or multiple provider 
     identification numbers for purposes of the payment of health 
     care claims by Department of Defense contractors.
       (2) The documentation required to substantiate medical 
     necessity for items and services that are covered under both 
     the TRICARE program and the Medicare program.
       (c) Report on Collection of Amounts Owed.--Not later than 
     March 1, 2007, the Secretary of Defense shall submit to the 
     congressional defense committees a report setting forth a 
     detailed description of the following:
       (1) All TRICARE policies and directives concerning 
     collection of amounts owed to the United States pursuant to 
     section 1095 of title 10, United States Code, from third 
     party payers, including--
       (A) collection by military treatment facilities from third-
     party payers; and
       (B) collection by contractors providing managed care 
     support under the TRICARE program from other insurers in 
     cases of private insurance liability for health care costs of 
     a TRICARE beneficiary.
       (2) An estimate of the outstanding amounts owed from third 
     party payers in each of fiscal years 2002, 2003, and 2004.
       (3) The amounts collected from third party payers in each 
     of fiscal years 2002, 2003, and 2004.
       (4) A plan of action to streamline the business practices 
     that underlie the policies and directives described in 
     paragraph (1).
       (5) A plan of action to accelerate and increase the 
     collections or recoupments of amounts owed from third party 
     payers.
       (d) Annual Reports on Claims Processing Standardization.--
       (1) In general.--Not later than October 1, 2007, and 
     annually thereafter, the Secretary of Defense shall submit to 
     the congressional defense committees a report setting forth a 
     complete list of the claims processing requirements under the 
     TRICARE program that differ from claims processing 
     requirements under the Medicare program.
       (2) Elements.--Each report under paragraph (1) shall 
     include, for each claims processing requirement listed in 
     such report, a business case that justifies maintaining such 
     requirement under the TRICARE program as a different claims 
     processing requirement than that required under the Medicare 
     program.
       (e) Definitions.--In this section:
       (1) The term ``Medicare program'' means the program under 
     title XVIII of the Social Security Act (42 U.S.C. 1395 et 
     seq.).
       (2) The term ``TRICARE program'' has the meaning given that 
     term in section 1072(7) of title 10, United States Code.

[[Page 20808]]



     SEC. 732. REQUIREMENTS FOR SUPPORT OF MILITARY TREATMENT 
                   FACILITIES BY CIVILIAN CONTRACTORS UNDER 
                   TRICARE.

       (a) Annual Integrated Regional Requirements on Support.--
     The Regional Director of each region under the TRICARE 
     program shall develop each year integrated, comprehensive 
     requirements for the support of military treatment facilities 
     in such region that is provided by contract civilian health 
     care and administrative personnel under the TRICARE program.
       (b) Purposes.--The purposes of the requirements established 
     under subsection (a) shall be as follows:
       (1) To ensure consistent standards of quality in the 
     support of military treatment facilities by contract civilian 
     health care personnel under the TRICARE program.
       (2) To identify targeted, actionable opportunities 
     throughout each region of the TRICARE program for the most 
     efficient and cost effective delivery of health care and 
     support of military treatment facilities.
       (3) To ensure the most effective use of various available 
     contracting methods in securing support of military treatment 
     facilities by civilian health care personnel under the 
     TRICARE program, including resource-sharing and clinical 
     support agreements, direct contracting, and venture capital 
     investments.
       (c) Facilitation and Enhancement of Contractor Support.--
       (1) In general.--The Secretary of Defense shall take 
     appropriate actions to facilitate and enhance the support of 
     military treatment facilities under the TRICARE program in 
     order to assure maximum quality and productivity.
       (2) Actions.--In taking actions under paragraph (1), the 
     Secretary shall--
       (A) require consistent standards of quality for contract 
     civilian health care personnel providing support of military 
     treatment facilities under the TRICARE program, including--
       (i) consistent credentialing requirements among military 
     treatment facilities;
       (ii) consistent performance standards for private sector 
     companies providing health care staffing services to military 
     treatment facilities and clinics, including, at a minimum, 
     those standards established for accreditation of health care 
     staffing firms by the Joint Commission on the Accreditation 
     of Health Care Organizations Health Care Staffing Standards; 
     and
       (iii) additional standards covering--

       (I) financial stability;
       (II) medical management;
       (III) continuity of operations;
       (IV) training;
       (V) employee retention;
       (VI) access to contractor data; and
       (VII) fraud prevention;

       (B) ensure the availability of adequate and sustainable 
     funding support for projects which produce a return on 
     investment to the military treatment facilities;
       (C) ensure that a portion of any return on investment is 
     returned to the military treatment facility to which such 
     savings are attributable;
       (D) remove financial disincentives for military treatment 
     facilities and civilian contractors to initiate and sustain 
     agreements for the support of military treatment facilities 
     by such contractors under the TRICARE program;
       (E) provide for a consistent methodology across all regions 
     of the TRICARE program for developing cost benefit analyses 
     of agreements for the support of military treatment 
     facilities by civilian contractors under the TRICARE program 
     based on actual cost and utilization data within each region 
     of the TRICARE program; and
       (F) provide for a system for monitoring the performance of 
     significant projects for support of military treatment 
     facilities by a civilian contractor under the TRICARE 
     program.
       (d) Reports to Congress.--
       (1) Annual reports required.--Not later than February 1, 
     2008, and each year thereafter, the Secretary, in 
     coordination with the military departments, shall submit to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives a report on the support of military 
     treatment facilities by civilian contractors under the 
     TRICARE program during the preceding fiscal year.
       (2) Elements.--Each report shall set forth, for the fiscal 
     year covered by such report, the following:
       (A) The level of support of military health treatment 
     facilities that is provided by contract civilian health care 
     personnel under the TRICARE program in each region of the 
     TRICARE program.
       (B) An assessment of the compliance of such support with 
     regional requirements under subsection (a).
       (C) The number and type of agreements for the support of 
     military treatment facilities by contract civilian health 
     care personnel.
       (D) The standards of quality in effect under the 
     requirements under subsection (a).
       (E) The savings anticipated, and any savings achieved, as a 
     result of the implementation of the requirements under 
     subsection (a).
       (F) An assesment of the compliance of contracts for health 
     care staffing services for Department of Defense facilities 
     with the requirements of subsection (c)(2)(A).
       (e) Effective Date.--This section shall take effect on 
     October 1, 2006.

     SEC. 733. STANDARDS AND TRACKING OF ACCESS TO HEALTH CARE 
                   SERVICES FOR WOUNDED, INJURED, OR ILL 
                   SERVICEMEMBERS RETURNING TO THE UNITED STATES 
                   FROM A COMBAT ZONE.

       (a) Report on Uniform Standards for Access.--Not later than 
     90 days after the date of the enactment 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 uniform standards for the access of wounded, 
     injured, or ill members of the Armed Forces to health care 
     services in the United States following return from a combat 
     zone.
       (b) Matters Covered.--The report required by subsection (a) 
     shall describe in detail policies with respect to the 
     following:
       (1) The access of wounded, injured, or ill members of the 
     Armed Forces to emergency care.
       (2) The access of such members to surgical services.
       (3) Waiting times for referrals and consultations of such 
     members by medical personnel, dental personnel, mental health 
     specialists, and rehabilitative service specialists, 
     including personnel and specialists with expertise in 
     prosthetics and in the treatment of head, vision, and spinal 
     cord injuries.
       (4) Waiting times of such members for acute care and for 
     routine follow-up care.
       (c) Referral to Providers Outside Military Health Care 
     System.--The Secretary shall require that health care 
     services and rehabilitation needs of members described in 
     subsection (a) be met through whatever means or mechanisms 
     possible, including through the referral of members described 
     in that subsection to health care providers outside the 
     military health care system.
       (d) Uniform System for Tracking of Performance.--The 
     Secretary shall establish a uniform system for tracking the 
     performance of the military health care system in meeting the 
     requirements for access of wounded, injured, or ill members 
     of the Armed Forces to health care services described in 
     subsection (a).
       (e) Reports.--
       (1) Tracking system.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary shall submit 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives a report on the system established 
     under subsection (d).
       (2) Access.--Not later than October 1, 2006, and each 
     quarter thereafter during fiscal year 2007, the Secretary 
     shall submit to such committees a report on the performance 
     of the health care system in meeting the access standards 
     described in the report required by subsection (a).

     SEC. 734. DISEASE AND CHRONIC CARE MANAGEMENT.

       (a) Program Design and Development Required.--Not later 
     than October 1, 2007, the Secretary of Defense shall design 
     and develop a fully integrated program on disease and chronic 
     care management for the military health care system that 
     provides, to the extent practicable, uniform policies and 
     practices on disease management and chronic care management 
     throughout that system, including both military hospitals and 
     clinics and civilian healthcare providers within the TRICARE 
     network.
       (b) Purposes of Program.--The purposes of the program 
     required by subsection (a) are as follows:
       (1) To facilitate the improvement of the health status of 
     individuals under care in the military health care system.
       (2) To ensure the availability of effective health care 
     services in that system for individuals with diseases and 
     other chronic conditions.
       (3) To ensure the proper allocation of health care 
     resources for individuals who need care for disease or other 
     chronic conditions.
       (c) Elements of Program Design.--The program design 
     required by subsection (a) shall meet the following 
     requirements:
       (1) Based on uniform policies prescribed by the Secretary, 
     the program shall, at a minimum, address the following 
     chronic diseases and conditions:
       (A) Diabetes.
       (B) Cancer.
       (C) Heart disease.
       (D) Asthma.
       (E) Chronic obstructive pulmonary disorder.
       (F) Depression and anxiety disorders.
       (2) The program shall meet nationally recognized 
     accreditation standards for disease and chronic care 
     management.
       (3) The program shall include specific outcome measures and 
     objectives on disease and chronic care management.
       (4) The program shall include strategies for disease and 
     chronic care management for all beneficiaries, including 
     beneficiaries eligible for benefits under the Medicare 
     program under title XVIII of the Social Security Act (42 
     U.S.C. 1395 et seq.), for whom the TRICARE program is not the 
     primary payer for health care benefits.
       (5) Activities under the program shall conform to 
     applicable laws and regulations relating to the 
     confidentiality of health care information.
       (d) Implementation Plan Required.--Not later than February 
     1, 2008, the Secretary of Defense, in coordination with the 
     Secretaries of the military departments, shall develop an 
     implementation plan for the disease and chronic care 
     management program. In order to facilitate the carrying out 
     of the program, the plan developed by the Secretary shall--
       (1) require a comprehensive analysis of the disease and 
     chronic care management opportunities within each region of 
     the TRICARE program, including within military treatment 
     facilities and through contractors under the TRICARE program;
       (2) ensure continuous, adequate funding of disease and 
     chronic care management activities throughout the military 
     health care system in order to achieve maximum health 
     outcomes and cost avoidance;
       (3) eliminate, to the extent practicable, any financial 
     disincentives to sustained investment by

[[Page 20809]]

     military hospitals and health care services contractors of 
     the Department of Defense in the disease and chronic care 
     management activities of the Department;
       (4) ensure that appropriate clinical and claims data, 
     including pharmacy utilization data, is available for use in 
     implementing the program;
       (5) ensure outreach to eligible beneficiaries who, on the 
     basis of their clinical conditions, are candidates for the 
     program utilizing print and electronic media, telephone, and 
     personal interaction; and
       (6) provide a system for monitoring improvements in health 
     status and clinical outcomes under the program and savings 
     associated with the program.
       (e) Report.--
       (1) In general.--Not later than March 1, 2008, the 
     Secretary of Defense shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives a 
     report on the design, development, and implementation of the 
     program on disease and chronic care management required by 
     this section.
       (2) Report elements.--The report required by paragraph (1) 
     shall include the following:
       (A) A description of the design and development of the 
     program required by subsection (a).
       (B) A description of the implementation plan required by 
     subsection (d).
       (C) A description and assessment of improvements in health 
     status and clinical outcomes that are anticipated as a result 
     of implementation of the program.
       (D) A description of the savings and return on investment 
     associated with the program.
       (E) A description of an investment strategy to assure the 
     sustainment of the disease and chronic care management 
     programs of the Department of Defense.

     SEC. 735. ADDITIONAL ELEMENTS OF ASSESSMENT OF DEPARTMENT OF 
                   DEFENSE TASK FORCE ON MENTAL HEALTH RELATING TO 
                   MENTAL HEALTH OF MEMBERS WHO WERE DEPLOYED IN 
                   OPERATION IRAQI FREEDOM AND OPERATION ENDURING 
                   FREEDOM.

       Section 723(c) of the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3348) is 
     amended by adding at the end the following new paragraph:
       ``(4) Mental health needs of members who were deployed in 
     oif or oef.--As part of the assessment required by paragraph 
     (1) of the efficacy of mental health services provided to 
     members of the Armed Forces by the Department of Defense, the 
     task force shall consider the specific needs with respect to 
     mental health of members who were deployed in Operation Iraqi 
     Freedom or Operation Enduring Freedom upon their return from 
     such deployment, including the following:
       ``(A) An identification of mental health conditions and 
     disorders (including Post Traumatic Stress Disorder, suicide 
     attempts, and suicide) occurring among members who have 
     undergone multiple deployments in Operation Iraqi Freedom or 
     Operation Enduring Freedom.
       ``(B) An evaluation of the availability to members of 
     assessments under the Mental Health Self-Assessment Program 
     of the Department of Defense to ensure the long-term 
     availability of the diagnostic mechanisms of the assessment 
     to detect mental health conditions that may emerge in such 
     members over time.
       ``(C) The availability of programs and services under the 
     Mental Health Self-Assessment Program to address the mental 
     health of dependent children of members who were deployed in 
     Operation Iraqi Freedom or Operation Enduring Freedom.
       ``(D) Recommendations on mechanisms for improving the 
     mental health services available to members who were deployed 
     in Operation Iraqi Freedom or Operation Enduring Freedom, 
     including members who have undergone multiple deployments.''.

     SEC. 736. ADDITIONAL AUTHORIZED OPTION PERIODS FOR EXTENSION 
                   OF CURRENT CONTRACTS UNDER TRICARE.

       (a) Additional Number of Authorized Periods.--
       (1) In general.--The Secretary of Defense, after consulting 
     with the other administering Secretaries, may extend any 
     contract for the delivery of health care entered into under 
     section 1097 of title 10, United States Code, that is in 
     force on the date of the enactment of this Act by one year, 
     and upon expiration of such extension by one additional year, 
     if the Secretary determines that such extension--
       (A) is in the best interests of the Department of Defense 
     and covered beneficiaries;
       (B) is cost effective; and
       (C) will--
       (i) facilitate the effective administration of the TRICARE 
     program; or
       (ii) ensure continuity in the delivery of health care under 
     the TRICARE program.
       (2) Limitation on number of extensions.--The total number 
     of one-year extensions of a contract that may be granted 
     under paragraph (1) may not exceed two extensions.
       (3) Notice and wait.--The Secretary may not commence the 
     exercise of the authority in paragraph (1) with respect to a 
     contract covered by that paragraph until 30 days after the 
     date on which the Secretary submits to the Committees on 
     Armed Services of the Senate and House of Representatives a 
     report setting forth the following:
       (A) The minimum level of performance, including beneficiary 
     satisfaction and cost, by the incumbent contractor under the 
     contract that will be required by the Secretary in order to 
     be eligible for an extension authorized by such paragraph.
       (B) The justification for such extension based on each of 
     the criteria in paragraph (1).
       (C) The justification for such extension based on a cost-
     benefit analysis.
       (4) Definitions.--In this subsection, the terms 
     ``administering Secretaries'', ``covered beneficiary'', and 
     ``TRICARE program'' have the meaning given such terms in 
     section 1072 of title 10, United States Code.
       (b) Report on Contracting Mechanisms for Health Care 
     Service Support Contracts.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary shall submit 
     to the Committees on Armed Services of the Senate and House 
     of Representatives a report on contracting mechanisms under 
     consideration for future contracts for health care service 
     support under section 1097 of title 10, United States Code. 
     The report shall include an assessment of the advantages and 
     disadvantages for the Department of Defense (including the 
     potential for stimulating competition and the effect on 
     health care beneficiaries of the Department) of providing in 
     such contracts for a single term of 5 years, with a single 
     optional period of extension of an additional 5 years if 
     performance under such contract is rated as ``excellent''.

     SEC. 737. MILITARY VACCINATION MATTERS.

       (a) Additional Element for Comptroller General Study and 
     Report on Vaccine Healthcare Centers.--Section 736(b) of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3356) is amended by adding at 
     the end the following new paragraph:
       ``(10) The feasibility and advisability of transferring 
     direct responsibility for the Centers from the Army Medical 
     Command to the Under Secretary of Defense for Personnel and 
     Readiness and the Deputy Assistant Secretary of Defense for 
     Force Health Protection and Readiness.''.
       (b) Limitation on Restructuring of Vaccine Healthcare 
     Centers.--The Secretary of Defense may not downsize or 
     otherwise restructure the Vaccine Healthcare Centers of the 
     Department of Defense during fiscal year 2007. The Secretary 
     shall ensure that the Secretary of each military department 
     shall, from amounts allocated during fiscal year 2007 from 
     the Defense Health Program, fund and maintain the Vaccine 
     Healthcare Center of the military department concerned.

     SEC. 738. ENHANCED MENTAL HEALTH SCREENING AND SERVICES FOR 
                   MEMBERS OF THE ARMED FORCES.

       (a) Additional Required Elements for Predeployment and 
     Postdeployment Medical Examinations.--Subsection (b) of 
     section 1074f of title 10, United States Code, is amended--
       (1) by inserting ``(1)'' before ``The system''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The predeployment and postdeployment medical 
     examination of a member of the armed forces required under 
     paragraph (1) shall include the following:
       ``(A) An assessment of the current treatment of the member 
     and any use of psychotropic medications by the member for a 
     mental health condition or disorder.
       ``(B) An assessment of traumatic brain injury.''.
       (b) Criteria for Referral for Further Evaluations.--Such 
     section is further amended by adding at the end the 
     following:
       ``(e) Criteria for Referral for Further Evaluations.--The 
     system described in subsection (a) shall include--
       ``(1) development of clinical practice guidelines to be 
     utilized by healthcare providers in determining whether to 
     refer a member of the armed forces for further evaluation 
     relating to mental health (including traumatic brain injury);
       ``(2) mechanisms to ensure that healthcare providers are 
     trained in the application of such clinical practice 
     guidelines; and
       ``(3) mechanisms for oversight to ensure that healthcare 
     providers apply such guidelines consistently.''.
       (c) Minimum Mental Health Standards for Deployment.--Such 
     section is further amended by adding at the end the 
     following:
       ``(f) Minimum Mental Health Standards for Deployment.--(1) 
     The Secretary of Defense shall prescribe in regulations 
     minimum standards for mental health for the eligibility of a 
     member of the armed forces for deployment to a combat 
     operation or contingency operation.
       ``(2) The standards required by paragraph (1) shall include 
     the following:
       ``(A) A specification of the mental health conditions, 
     treatment for such conditions, and receipt of psychotropic 
     medications for such conditions that preclude deployment of a 
     member of the armed forces to a combat operation or 
     contingency operation, or to a specified type of such 
     operation.
       ``(B) Guidelines for the deployability and treatment of 
     members of the armed forces diagnosed with a severe mental 
     illness or post traumatic stress disorder.
       ``(3) The Secretary shall take appropriate actions to 
     ensure the utilization of the standards prescribed under 
     paragraph (1) in the making of determinations regarding the 
     deployability of members of the armed forces to a combat 
     operation or continency operation.''.
       (d) Quality Assurance.--Subsection (d) of such section is 
     amended--
       (1) by inserting ``(1)'' before ``The Secretary of 
     Defense''; and
       (2) by adding at the end the following new paragraphs:
       ``(2) The quality assurance program established under 
     paragraph (1) shall also include the following elements:

[[Page 20810]]

       ``(A) The types of healthcare providers conducting 
     postdeployment health assessments.
       ``(B) The training received by such providers applicable to 
     the conduct of such assessments, including training on 
     assessments and referrals relating to mental health.
       ``(C) The guidance available to such providers on how to 
     apply the clinical practice guidelines developed under 
     subsection (e)(1) in determining whether to make a referral 
     for further evaluation of a member of the armed forces 
     relating to mental health.
       ``(D) The effectiveness of the tracking mechanisms required 
     under this section in ensuring that members who receive 
     referrals for further evaluations relating to mental health 
     receive such evaluations and obtain such care and services as 
     are warranted.
       ``(E) Programs established for monitoring the mental health 
     of each member who, after deployment to a combat operation or 
     contingency operations, is known--
       ``(i) to have a mental health condition or disorder; or
       ``(ii) to be receiving treatment, including psychotropic 
     medications, for a mental health condition or disorder.''.
       (e) Comptroller General Reports on Implementation of 
     Requirements.--
       (1) Study on implementation.--The Comptroller General of 
     the United States shall carry out a study of the 
     implementation of the requirements of the amendments made by 
     this section.
       (2) Reports.--Not later than March 1, 2008, the Comptroller 
     General shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a report on the 
     study carried out under paragraph (1).
       (f) Implementation.--The Secretary of Defense shall 
     implement the requirements of the amendments made by this 
     section not later than six months after the date of the 
     enactment of this Act.
       (g) Report Required.--The Secretary of Defense shall submit 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives a report on the actions taken to 
     implement the requirements of the amendments made by this 
     section not later than June 1, 2007.
                       Subtitle D--Other Matters

     SEC. 741. PILOT PROJECTS ON EARLY DIAGNOSIS AND TREATMENT OF 
                   POST TRAUMATIC STRESS DISORDER AND OTHER MENTAL 
                   HEALTH CONDITIONS.

       (a) Pilot Projects Required.--The Secretary of Defense 
     shall carry out not less than three pilot projects to 
     evaluate the efficacy of various approaches to improving the 
     capability of the military and civilian health care systems 
     to provide early diagnosis and treatment of post traumatic 
     stress disorder and other mental health conditions.
       (b) Duration.--Any pilot project carried out under this 
     section shall begin not later than October 1, 2007, and cease 
     on September 30, 2008.
       (c) Pilot Project Requirements.--
       (1) Diagnostic and treatment approaches.--One of the pilot 
     projects under this section shall be designed to evaluate 
     effective diagnostic and treatment approaches for use by 
     primary care providers in the military health care system in 
     order to improve the capability of such providers to diagnose 
     and treat post traumatic stress disorder.
       (2) National guard or reserve members.--
       (A) One of the pilot projects under this section shall be 
     focused on members of the National Guard or Reserves who are 
     located more than 40 miles from a military medical facility 
     and who are served primarily by civilian community health 
     resources.
       (B) The pilot project described in subparagraph (A) shall 
     be designed to develop educational materials and other tools 
     for use by members of the National Guard or Reserves who come 
     into contact with other members of the National Guard or 
     Reserves who may suffer from post traumatic stress disorder 
     in order to encourage and facilitate early reporting and 
     referral for treatment.
       (3) Outreach.--One of the pilot projects under this section 
     shall be designed to provide outreach to the family members 
     of the members of the Armed Forces on post traumatic stress 
     disorder and other mental health conditions.
       (d) Evaluation of Pilot Projects.--The Secretary shall 
     evaluate each pilot project carried out under this section in 
     order to assess the effectiveness of the approaches taken 
     under such pilot project--
       (1) to improve the capability of the military and civilian 
     health care systems to provide early diagnosis and treatment 
     of post traumatic stress disorder and other mental health 
     conditions among members of the regular components of the 
     Armed Forces, and among members of the National Guard and 
     Reserves, who have returned from deployment; and
       (2) to provide outreach to the family members of the 
     members of the Armed Forces described in paragraph (1) on 
     post traumatic stress disorder and other mental health 
     conditions among such members of the Armed Forces.
       (e) Report to Congress.--
       (1) Report required.--Not later than December 31, 2008, the 
     Secretary shall submit to the congressional defense 
     committees a report on the pilot projects carried out under 
     this section.
       (2) Elements.--The report required by paragraph (1) shall 
     include the following:
       (A) A description of each pilot project carried out under 
     this section.
       (B) An assessment of the effectiveness of the approaches 
     taken under each pilot project to improve the capability of 
     the military and civilian health care systems to provide 
     early diagnosis and treatment of post traumatic stress 
     disorder and other mental health conditions among members of 
     the Armed Forces.
       (C) Any recommendations for legislative or administrative 
     action that the Secretary considers appropriate in light of 
     the pilot projects, including recommendations on--
       (i) the training of health care providers in the military 
     and civilian health care systems on early diagnosis and 
     treatment of post traumatic stress disorder and other mental 
     health conditions; and
       (ii) the provision of outreach on post traumatic stress 
     disorder and other mental health conditions to members of the 
     National Guard and Reserves who have returned from 
     deployment.
       (D) A plan, in light of the pilot projects, for the 
     improvement of the health care services provided to members 
     of the Armed Forces in order to better assure the early 
     diagnosis and treatment of post traumatic stress disorder and 
     other mental health conditions among members of the Armed 
     Forces, including a specific plan for outreach on post 
     traumatic stress disorder and other mental health conditions 
     to members of the National Guard and Reserves who have 
     returned from deployment in order to facilitate and enhance 
     the early diagnosis and treatment of post traumatic stress 
     disorder and other mental health conditions among such 
     members of the National Guard and Reserves.

     SEC. 742. REQUIREMENT TO CERTIFY AND REPORT ON CONVERSION OF 
                   MILITARY MEDICAL AND DENTAL POSITIONS TO 
                   CIVILIAN MEDICAL AND DENTAL POSITIONS.

       (a) Prohibition on Conversions.--
       (1) Submission of certification.--The Secretary of a 
     military department may not convert any military medical or 
     dental position to a civilian medical or dental position in a 
     fiscal year until the Secretary submits to the congressional 
     defense committees with respect to that fiscal year a 
     certification that the conversions within that department 
     will not increase cost or decrease quality of care or access 
     to care.
       (2) Report on certification.--Each certification under 
     paragraph (1) shall include a written report setting forth 
     the following:
       (A) The methodology used by the Secretary in making the 
     determinations necessary for the certification.
       (B) The number of military medical or dental positions, by 
     grade or band and specialty, planned for conversion to 
     civilian medical or dental positions.
       (C) The results of a market survey in each affected area of 
     the availability of civilian medical and dental care 
     providers in such area in order to determine whether the 
     civilian medical and dental care providers available in such 
     area are adequate to fill the civilian positions created by 
     the conversion of military medical and dental positions to 
     civilian positions in such area.
       (D) An analysis, by affected area, showing the extent to 
     which access to health care and cost of health care will be 
     affected in both the direct care and purchased care systems, 
     including an assessment of the effect of any increased shifts 
     in patient load from the direct care to the purchased care 
     system, or any delays in receipt of care in either the direct 
     or purchased care system because of the planned conversions.
       (E) The extent to which military medical and dental 
     positions planned for conversion to civilian medical or 
     dental positions will affect recruiting and retention of 
     uniformed medical and dental personnel.
       (F) A comparison of the full costs for the military medical 
     and dental positions planned for conversion with the 
     estimated full costs for civilian medical and dental 
     positions, including expenses such as recruiting, salary, 
     benefits, training, and any other costs the Department 
     identifies.
       (G) An assessment showing that the military medical or 
     dental positions planned for conversion are in excess of the 
     military medical and dental positions needed to meet medical 
     and dental readiness requirements of the uniformed services, 
     as determined jointly by all the uniformed services.
       (H) An identification of each medical and dental position 
     scheduled to be converted to a civilian position in the 
     subsequent fiscal year, including the location of each 
     position scheduled for conversion, the estimated cost of such 
     conversion, and whether or not civilian personnel are 
     available in the location for filling a converted military 
     medical or dental position.
       (3) Submission deadline.--A certification and report with 
     respect to any fiscal year after fiscal year 2007 shall be 
     submitted at the same time the budget of the President for 
     such fiscal year is submitted to Congress pursuant to section 
     1105(a) of title 31, United States Code.
       (b) Requirement for Comptroller General Review.--Not later 
     than 120 days after the submission of the budget of the 
     President for a fiscal year, the Comptroller General shall 
     submit to the congressional defense committees a report on 
     any certifications and reports submitted with respect to that 
     fiscal year under subsection (a).
       (c) Requirement to Resubmit Certification and Report 
     Required by Public Law 109-163.--The Secretary of each 
     military department shall resubmit the certification and 
     report required by section 744(a) of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163; 
     119 Stat. 3360; 10 U.S.C. 129c note). Such resubmissions 
     shall address in their entirety the elements required by 
     section 744(a)(2) of such Act.
       (d) Special Requirements for Fiscal Year 2007 
     Certification.--

[[Page 20811]]

       (1) List of 2007 planned conversions.--The report required 
     by paragraph (2) of subsection (a) with respect to fiscal 
     year 2007 shall contain, in addition to the elements required 
     by that paragraph, a list of each military medical or dental 
     position scheduled to be converted to a civilian medical or 
     dental position in fiscal year 2007.
       (2) Resubmission required first.--The certification and 
     report required by subsection (a) with respect to fiscal year 
     2007 may not be submitted prior to the resubmission required 
     by subsection (c).
       (3) Prohibition on conversions during fiscal year 2007.--No 
     conversions of a military medical or dental position may 
     occur during fiscal year 2007 prior to both the resubmission 
     required by subsection (c) and the submission of the 
     certification and report required by subsection (a).
       (e) Report on Fiscal Year 2008 Conversion.--Not later than 
     90 days after the date of the enactment of this Act, the 
     Secretary of Defense shall submit to the Committees on Armed 
     Services of the Senate and House of Representatives a report 
     that identifies the military medical or dental positions 
     scheduled to be converted to civilian medical or dental 
     positions in fiscal year 2008. Such report shall include the 
     location of the positions scheduled for conversion, the 
     estimated cost of such conversion, and whether or not 
     civilian personnel are available in the location for filling 
     the proposed converted military medical or dental position.
       (f) Definitions.--In this section:
       (1) The term ``military medical or dental position'' means 
     a position for the performance of health care functions 
     within the Armed Forces held by a member of the Armed Forces.
       (2) The term ``civilian medical or dental position'' means 
     a position for the performance of health care functions 
     within the Department of Defense held by an employee of the 
     Department or of a contractor of the Department.
       (3) The term ``affected area'' means an area in which 
     military medical or dental positions were converted to 
     civilian medical or dental positions before October 1, 2004, 
     or in which such conversions are scheduled to occur in the 
     future.
       (4) The term ``uniformed services'' has the meaning given 
     that term in section 1072(1) of title 10, United States Code.
       (5) The term ``conversion'', with respect to a military 
     medical or dental position, means a change, effective as of 
     the date of the documentation by the Department of Defense 
     making the change, of the position to a civilian medical or 
     dental position.

     SEC. 743. THREE-YEAR EXTENSION OF JOINT INCENTIVES PROGRAM ON 
                   SHARING OF HEALTH CARE RESOURCES BY THE 
                   DEPARTMENT OF DEFENSE AND DEPARTMENT OF 
                   VETERANS AFFAIRS.

       Section 8111(d)(3) of title 38, United States Code, is 
     amended by striking ``September 30, 2007'' and inserting 
     ``September 30, 2010''.

     SEC. 744. TRAINING CURRICULA FOR FAMILY CAREGIVERS ON CARE 
                   AND ASSISTANCE FOR MEMBERS AND FORMER MEMBERS 
                   OF THE ARMED FORCES WITH TRAUMATIC BRAIN 
                   INJURY.

       (a) Traumatic Brain Injury Family Caregiver Panel.--
       (1) Establishment.--The Secretary of Defense shall 
     establish a panel within the Department of Defense, to be 
     known as the ``Traumatic Brain Injury Family Caregiver 
     Panel'', to develop coordinated, uniform, and consistent 
     training curricula to be used in training family members in 
     the provision of care and assistance to members and former 
     members of the Armed Forces with traumatic brain injuries.
       (2) Members.--The Traumatic Brain Injury Family Caregiver 
     Panel shall consist of 15 members appointed by the Secretary 
     of Defense from among the following:
       (A) Physicians, nurses, rehabilitation therapists, and 
     other individuals with an expertise in caring for and 
     assisting individuals with traumatic brain injury, including 
     persons who specialize in caring for and assisting 
     individuals with traumatic brain injury incurred in combat.
       (B) Representatives of family caregivers or family 
     caregiver associations.
       (C) Health and medical personnel of the Department of 
     Defense and the Department of Veterans Affairs with expertise 
     in traumatic brain injury and personnel and readiness 
     representatives of the Department of Defense with expertise 
     in traumatic brain injury.
       (D) Psychologists or other individuals with expertise in 
     the mental health treatment and care of individuals with 
     traumatic brain injury.
       (E) Experts in the development of training curricula.
       (F) Family members of members of the Armed Forces with 
     traumatic brain injury.
       (G) Such other individuals the Secretary considers 
     appropriate.
       (3) Consultation.--In establishing the Traumatic Brain 
     Injury Family Caregiver Panel and appointing the members of 
     the Panel, the Secretary of Defense shall consult with the 
     Secretary of Veterans Affairs.
       (b) Development of Curricula.--
       (1) Development.--The Traumatic Brain Injury Family 
     Caregiver Panel shall develop training curricula to be used 
     by family members of members and former members of the Armed 
     Forces on techniques, strategies, and skills for care and 
     assistance for such members and former members with traumatic 
     brain injury.
       (2) Scope of curricula.--The curricula shall--
       (A) be based on empirical research and validated 
     techniques; and
       (B) shall provide for training that permits recipients to 
     tailor caregiving to the unique circumstances of the member 
     or former member of the Armed Forces receiving care.
       (3) Particular requirements.--In developing the curricula, 
     the Traumatic Brain Injury Family Caregiver Panel shall--
       (A) specify appropriate training commensurate with the 
     severity of traumatic brain injury; and
       (B) identify appropriate care and assistance to be provided 
     for the degree of severity of traumatic brain injury for 
     caregivers of various levels of skill and capability.
       (4) Use of existing materials.--In developing the 
     curricula, the Traumatic Brain Injury Family Caregiver Panel 
     shall use and enhance any existing training curricula, 
     materials, and resources applicable to such curricula as the 
     Panel considers appropriate.
       (5) Deadline for development.--The Traumatic Brain Injury 
     Family Caregiver Panel shall develop the curricula not later 
     than one year after the date of the enactment of this Act.
       (c) Dissemination of Curricula.--
       (1) Dissemination mechanisms.--The Secretary of Defense 
     shall develop mechanisms for the dissemination of the 
     curricula developed under subsection (b)--
       (A) to health care professionals who treat or otherwise 
     work with members and former members of the Armed Forces with 
     traumatic brain injury;
       (B) to family members affected by the traumatic brain 
     injury of such members and former members; and
       (C) to other care or support personnel who may provide 
     service to members or former members affected by traumatic 
     brain injury.
       (2) Use of existing mechanisms.--In developing such 
     mechanisms, the Secretary may use and enhance existing 
     mechanisms, including the Military Severely Injured Center 
     (authorized under section 564 of this Act) and the programs 
     for service to severely injured members established by the 
     military departments.
       (d) Report.--Not later than one year after the development 
     of the curricula required by subsection (b), the Secretary of 
     Defense and the Secretary of Veterans Affairs shall submit to 
     the Committees on Armed Services and Veterans Affairs of the 
     Senate and the House of Representatives a report on the 
     following:
       (1) The actions undertaken under this section.
       (2) Recommendations for the improvement or updating of 
     training curriculum developed and provided under this 
     section.

     SEC. 745. RECOGNITION OF REPRESENTATIVE LANE EVANS UPON HIS 
                   RETIREMENT FROM THE HOUSE OF REPRESENTATIVES.

       (a) Findings.--Congress makes the following findings:
       (1) Representative Lane Evans was elected to the House of 
     Representatives in 1982 and is completing his 12th term 
     representing the people of Illinois' 17th Congressional 
     district.
       (2) As a member of the Committee on Armed Services of the 
     House of Representatives since 1988, Representative Evans has 
     worked to bring common sense priorities to defense spending 
     and strengthen the military's conventional readiness.
       (3) Representative Evans has served as the ranking member 
     of the Committee on Veterans' Affairs of the House of 
     Representatives since 1997 and has been a tireless advocate 
     for military veterans, ensuring that veterans receive the 
     medical care they need and advocating for individuals 
     suffering from post-traumatic stress disorder and Gulf War 
     Syndrome.
       (5) Drawing on his own experience as a member of the Marine 
     Corps, Representative Evans has tirelessly fought for both 
     current members of the Armed Forces and veterans and has been 
     a leader in legislative efforts to assist members exposed to 
     Agent Orange.
       (4) Representative Evans' efforts to improve the transition 
     of individuals from military service to the care of the 
     Department of Veterans Affairs will continue to benefit 
     generations of veterans long into the future.
       (6) Representative Evans is credited with bringing new 
     services to veterans living in his Congressional district, 
     including outpatient clinics in the Quad Cities and Quincy 
     and the Quad-Cities Vet Center.
       (7) Representative Evans has worked with local leaders to 
     promote the Rock Island Arsenal and has seen it win new jobs 
     and missions through his support.
       (b) Recognition.--Congress recognizes and commends 
     Representative Lane Evans for his 24 years of service to 
     benefit the people of Illinois, members of the Armed Forces 
     and their families, veterans, and the United States.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

 Subtitle A--Provisions Relating to Major Defense Acquisition Programs

Sec. 801. Requirements management certification training program.
Sec. 802. Additional requirements relating to technical data rights.
Sec. 803. Study and report on revisions to Selected Acquisition Report 
              requirements.
Sec. 804. Biannual updates on implementation of acquisition reform in 
              the Department of Defense.
Sec. 805. Additional certification requirements for major defense 
              acquisition programs before proceeding to Milestone B.
Sec. 806. Original baseline estimate for major defense acquisition 
              programs.
Sec. 807. Lead system integrators.

[[Page 20812]]

             Subtitle B--Acquisition Policy and Management

Sec. 811. Time-certain development for Department of Defense 
              information technology business systems.
Sec. 812. Pilot program on time-certain development in acquisition of 
              major weapon systems.
Sec. 813. Establishment of Panel on Contracting Integrity.
Sec. 814. Linking of award and incentive fees to acquisition outcomes.
Sec. 815. Report on defense instruction relating to contractor 
              personnel authorized to accompany Armed Forces.
Sec. 816. Major automated information system programs.
Sec. 817. Internal controls for procurements on behalf of the 
              Department of Defense by certain non-defense agencies.
Sec. 818. Determination of contract type for development programs.
Sec. 819. Three-year extension of requirement for reports on commercial 
              price trend analyses of the Department of Defense.
Sec. 820. Government performance of critical acquisition functions.

Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 831. One-year extension of special temporary contract closeout 
              authority.
Sec. 832. Limitation on contracts for the acquisition of certain 
              services.
Sec. 833. Use of Federal supply schedules by State and local 
              governments for goods and services for recovery from 
              natural disasters, terrorism, or nuclear, biological, 
              chemical, or radiological attack.
Sec. 834. Waivers to extend task order contracts for advisory and 
              assistance services.

      Subtitle D--United States Defense Industrial Base Provisions

Sec. 841. Assessment and annual report of United States defense 
              industrial base capabilities and acquisitions of 
              articles, materials, and supplies manufactured outside 
              the United States.
Sec. 842. Protection of strategic materials critical to national 
              security.
Sec. 843. Strategic Materials Protection Board.

                       Subtitle E--Other Matters

Sec. 851. Report on former Department of Defense officials employed by 
              contractors of the Department of Defense.
Sec. 852. Report and regulations on excessive pass-through charges.
Sec. 853.  Program manager empowerment and accountability.
Sec. 854. Joint policies on requirements definition, contingency 
              program management, and contingency contracting.
Sec. 855. Clarification of authority to carry out certain prototype 
              projects.
Sec. 856. Contracting with employers of persons with disabilities.
Sec. 857. Enhanced access for small business.
Sec. 858. Procurement goal for Hispanic-serving institutions.
 Subtitle A--Provisions Relating to Major Defense Acquisition Programs

     SEC. 801. REQUIREMENTS MANAGEMENT CERTIFICATION TRAINING 
                   PROGRAM.

       (a) Training Program.--
       (1) Requirement.--The Under Secretary of Defense for 
     Acquisition, Technology, and Logistics, in consultation with 
     the Defense Acquisition University, shall develop a training 
     program to certify military and civilian personnel of the 
     Department of Defense with responsibility for generating 
     requirements for major defense acquisition programs (as 
     defined in section 2430(a) of title 10, United States Code).
       (2) Competency and other requirements.--The Under Secretary 
     shall establish competency requirements for the personnel 
     undergoing the training program. The Under Secretary shall 
     define the target population for such training program by 
     identifying which military and civilian personnel should have 
     responsibility for generating requirements. The Under 
     Secretary also may establish other training programs for 
     personnel not subject to chapter 87 of title 10, United 
     States Code, who contribute significantly to other types of 
     acquisitions by the Department of Defense.
       (b) Applicability.--Effective on and after September 30, 
     2008, a member of the Armed Forces or an employee of the 
     Department of Defense with authority to generate requirements 
     for a major defense acquisition program may not continue to 
     participate in the requirements generation process unless the 
     member or employee successfully completes the certification 
     training program developed under this section.
       (c) Reports.--The Secretary of Defense shall submit to the 
     Committees on Armed Services of the Senate and House of 
     Representatives an interim report, not later than March 1, 
     2007, and a final report, not later than March 1, 2008, on 
     the implementation of the training program required under 
     this section.

     SEC. 802. ADDITIONAL REQUIREMENTS RELATING TO TECHNICAL DATA 
                   RIGHTS.

       (a) Additional Requirements Relating to Technical Data 
     Rights.--Section 2320 of title 10, United States Code, is 
     amended by adding at the end the following new subsection:
       ``(e) The Secretary of Defense shall require program 
     managers for major weapon systems and subsystems of major 
     weapon systems to assess the long-term technical data needs 
     of such systems and subsystems and establish corresponding 
     acquisition strategies that provide for technical data rights 
     needed to sustain such systems and subsystems over their life 
     cycle. Such strategies may include the development of 
     maintenance capabilities within the Department of Defense or 
     competition for contracts for sustainment of such systems or 
     subsystems. Assessments and corresponding acquisition 
     strategies developed under this section with respect to a 
     weapon system or subsystem shall--
       ``(1) be developed before issuance of a contract 
     solicitation for the weapon system or subsystem;
       ``(2) address the merits of including a priced contract 
     option for the future delivery of technical data that were 
     not acquired upon initial contract award;
       ``(3) address the potential for changes in the sustainment 
     plan over the life cycle of the weapon system or subsystem; 
     and
       ``(4) apply to weapon systems and subsystems that are to be 
     supported by performance-based logistics arrangements as well 
     as to weapons systems and subsystems that are to be supported 
     by other sustainment approaches.''.
       (b) Modification of Presumption of Development Exclusively 
     at Private Expense.--Section 2321(f) of title 10, United 
     States Code, is amended--
       (1) by striking ``Expense for Commercial Items Contracts.--
     In'' and inserting ``Expense.--(1) Except as provided in 
     paragraph (2), in''; and
       (2) by adding at the end the following new paragraph:
       ``(2) In the case of a challenge to a use or release 
     restriction that is asserted with respect to technical data 
     of a contractor or subcontractor (whether or not under a 
     contract for commercial items) for a major system or a 
     subsystem or component thereof on the basis that the major 
     system, subsystem or component was developed exclusively at 
     private expense, the challenge to the use or release 
     restriction shall be sustained unless information provided by 
     the contractor or subcontractor demonstrates that the item 
     was developed exclusively at private expense.''.
       (c) Regulations.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     revise regulations under section 2320 of title 10, United 
     States Code, to implement subsection (e) of such section (as 
     added by this section), including incorporating policy 
     changes developed under such subsection into Department of 
     Defense Directive 5000.1 and Department of Defense 
     Instruction 5000.2.

     SEC. 803. STUDY AND REPORT ON REVISIONS TO SELECTED 
                   ACQUISITION REPORT REQUIREMENTS.

       (a) Study Requirement.--The Secretary of Defense, acting 
     through the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics in coordination with the service 
     acquisition executives of each military department, shall 
     conduct a study on revisions to requirements relating to 
     Selected Acquisition Reports, as set forth in section 2432 of 
     title 10, United States Code.
       (b) Matters Covered.--The study required under subsection 
     (a) shall--
       (1) focus on incorporating into the Selected Acquisition 
     Report those elements of program progress that the Department 
     of Defense considers most relevant to evaluating the 
     performance and progress of major defense acquisition 
     programs, with particular reference to the cost estimates and 
     program schedule established when a major defense acquisition 
     program receives Milestone B approval;
       (2) address the need to ensure that data provided through 
     the Selected Acquisition Report is consistent with data 
     provided through internal Department of Defense reporting 
     systems for management purposes; and
       (3) include any recommendations to add to, modify, or 
     delete elements of the Selected Acquisition Report, 
     consistent with the findings of the study.
       (c) Report.--Not later than March 1, 2007, the Secretary 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report on the 
     results of the study, including such recommendations as the 
     Secretary considers appropriate.

     SEC. 804. BIANNUAL UPDATES ON IMPLEMENTATION OF ACQUISITION 
                   REFORM IN THE DEPARTMENT OF DEFENSE.

       (a) Biannual Updates Requirement.--Not later than January 1 
     and July 1 of each year, beginning with January 1, 2007, the 
     Secretary of Defense shall provide to the Committees on Armed 
     Services of the Senate and the House of Representatives a 
     report containing an update on the implementation of plans to 
     reform the acquisition system in the Department of Defense.
       (b) Matters Covered.--Each report provided under subsection 
     (a) shall cover the implementation of reforms of the 
     processes for acquisition, including generation of 
     requirements, award of contracts, and financial management. 
     At a minimum, the reports shall take into account the 
     recommendations made by the following:
       (1) The Defense Acquisition Performance Assessment Panel.
       (2) The Defense Science Board Summer Study on 
     Transformation, issued in February 2006.
       (3) The Beyond Goldwater-Nichols Study of the Center for 
     Strategic and International Studies.
       (4) The Quadrennial Defense Review, issued February 6, 
     2006.

[[Page 20813]]

       (c) Recommendations.--Each report submitted under 
     subsection (a) shall include such recommendations as the 
     Secretary considers appropriate, and implementation plans for 
     the recommendations.
       (d) Termination of Report Requirement.--The requirement to 
     submit reports under subsection (a) shall terminate on 
     December 31, 2008.

     SEC. 805. ADDITIONAL CERTIFICATION REQUIREMENTS FOR MAJOR 
                   DEFENSE ACQUISITION PROGRAMS BEFORE PROCEEDING 
                   TO MILESTONE B.

       (a) Additional Certification Requirements.--Subsection (a) 
     of section 2366a of title 10, United States Code, is 
     amended--
       (1) by redesignating paragraph (7) as paragraph (10);
       (2) by redesignating paragraphs (1) through (6) as 
     paragraphs (2) through (7), respectively;
       (3) by inserting before paragraph (2) (as so redesignated) 
     the following new paragraph (1):
       ``(1) appropriate market research has been conducted prior 
     to technology development to reduce duplication of existing 
     technology and products;'';
       (4) in paragraph (7) (as so redesignated), by striking 
     ``and'' at the end; and
       (5) by inserting after such paragraph (7) the following new 
     paragraphs:
       ``(8) reasonable cost and schedule estimates have been 
     developed to execute the product development and production 
     plan under the program;
       ``(9) funding is available to execute the product 
     development and production plan under the program, through 
     the period covered by the future-years defense program 
     submitted during the fiscal year in which the certification 
     is made, consistent with the estimates described in paragraph 
     (8) for the program; and''.
       (b) Waiver for National Security.--Subsection (c) of such 
     section is amended by striking ``(5), or (6)'' and inserting 
     ``(5), (6), (7), (8), or (9)''.

     SEC. 806. ORIGINAL BASELINE ESTIMATE FOR MAJOR DEFENSE 
                   ACQUISITION PROGRAMS.

       Section 2435(d)(1) of title 10, United States Code, is 
     amended by inserting after ``with respect to the program 
     under subsection (a)'' the following: ``prepared before the 
     program enters system development and demonstration, or at 
     program initiation, whichever occurs later''.

     SEC. 807. LEAD SYSTEM INTEGRATORS.

       (a) Limitations on Contractors Acting as Lead System 
     Integrators.--
       (1) In general.--Chapter 141 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2410p. Contracts: limitations on lead system 
       integrators

       ``(a) In General.--Except as provided in subsection (b), no 
     entity performing lead system integrator functions in the 
     acquisition of a major system by the Department of Defense 
     may have any direct financial interest in the development or 
     construction of any individual system or element of any 
     system of systems.
       ``(b) Exception.--An entity described in subsection (a) may 
     have a direct financial interest in the development or 
     construction of an individual system or element of a system 
     of systems if--
       ``(1) the Secretary of Defense certifies to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives that--
       ``(A) the entity was selected by the Department of Defense 
     as a contractor to develop or construct the system or element 
     concerned through the use of competitive procedures; and
       ``(B) the Department took appropriate steps to prevent any 
     organizational conflict of interest in the selection process; 
     or
       ``(2) the entity was selected by a subcontractor to serve 
     as a lower-tier subcontractor, through a process over which 
     the entity exercised no control.
       ``(c) Construction.--Nothing in this section shall be 
     construed to preclude an entity described in subsection (a) 
     from performing work necessary to integrate two or more 
     individual systems or elements of a system of systems with 
     each other.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 141 of such title is amended by adding 
     at the end the following new item:

``2410p. Contracts: limitations on lead system integrators''.

       (3) Effective date.--Section 2410p of title 10, United 
     States Code, as added by paragraph (1), shall apply with 
     respect to contracts entered into after December 31, 2006.
       (b) Update of Regulations on Lead System Integrators.--Not 
     later than December 31, 2006, the Secretary of Defense shall 
     update the acquisition regulations of the Department of 
     Defense in order to specify fully in such regulations the 
     matters with respect to lead system integrators set forth in 
     section 805(b) of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3372) and the 
     amendments made by subsection (a).
       (c) Additional Report Requirements.--The Secretary of 
     Defense shall include in the report required by section 805 
     of such Act--
       (1) a precise and comprehensive definition of the term 
     ``lead system integrator'', as that term is used in such 
     section; and
       (2) a specification of various types of contracts and fee 
     structures that are appropriate for use by lead system 
     integrators in the production, fielding, and sustainment of 
     complex systems.
             Subtitle B--Acquisition Policy and Management

     SEC. 811. TIME-CERTAIN DEVELOPMENT FOR DEPARTMENT OF DEFENSE 
                   INFORMATION TECHNOLOGY BUSINESS SYSTEMS.

       (a) Milestone A Limitation.--The Department of Defense 
     executive or entity that is the milestone decision authority 
     for an information system described in subsection (c) may not 
     provide Milestone A approval for the system unless, as part 
     of the decision process for such approval, that authority 
     determines that the system will achieve initial operational 
     capability within a specified period of time not exceeding 
     five years.
       (b) Initial Operational Capability Limitation.--If an 
     information system described in subsection (c), having 
     received Milestone A approval, has not achieved initial 
     operational capability within five years after the date of 
     such approval, the system shall be deemed to have undergone a 
     critical change in program requiring the evaluation and 
     report required by section 2445c(d) of title 10, United 
     States Code (as added by section 816 of this Act).
       (c) Covered Systems.--An information system described in 
     this subsection is any Department of Defense information 
     technology business system that is not a national security 
     system, as defined in 3542(b)(2) of title 44, United States 
     Code.
       (d) Definitions.--In this section:
       (1) Milestone decision authority.--The term ``milestone 
     decision authority'' has the meaning given that term in 
     Department of Defense Instruction 5000.2, dated May 12, 2003.
       (2) Milestone a.--The term ``Milestone A'' has the meaning 
     given that term in Department of Defense Instruction 5000.2, 
     dated May 12, 2003.

     SEC. 812. PILOT PROGRAM ON TIME-CERTAIN DEVELOPMENT IN 
                   ACQUISITION OF MAJOR WEAPON SYSTEMS.

       (a) Pilot Program Authorized.--The Secretary of Defense may 
     carry out a pilot program on the use of time-certain 
     development in the acquisition of major weapon systems.
       (b) Purpose of Pilot Program.--The purpose of the pilot 
     program authorized by subsection (a) is to assess the 
     feasibility and advisability of utilizing time-certain 
     development in the acquisition of major weapon systems in 
     order to deliver new capabilities to the warfighter more 
     rapidly through--
       (1) disciplined decision-making;
       (2) emphasis on technological maturity; and
       (3) appropriate trade-offs between--
       (A) cost and system performance; and
       (B) program schedule.
       (c) Inclusion of Systems in Pilot Program.--
       (1) In general.--The Secretary of Defense may include a 
     major weapon system in the pilot program only if--
       (A) the major weapon system meets the criteria under 
     paragraph (2) in accordance with that paragraph; and
       (B) the Milestone Decision Authority nominates such program 
     to the Secretary of Defense for inclusion in the program.
       (2) Criteria.--For purposes of paragraph (1) a major weapon 
     system meets the criteria under this paragraph only if the 
     Milestone Decision Authority determines, in consultation with 
     the service acquisition executive for the military department 
     carrying out the acquisition program for the system and one 
     or more combatant commanders responsible for fielding the 
     system, that--
       (A) the certification requirements of section 2366a of 
     title 10, United States Code (as amended by section 805 of 
     this Act), have been met, and no waivers have been granted 
     from such requirements;
       (B) a preliminary design has been reviewed using systems 
     engineering, and the system, as so designed, will meet 
     battlefield needs identified by the relevant combatant 
     commanders after appropriate requirements analysis;
       (C) a representative model or prototype of the system, or 
     key subsystems, has been demonstrated in a relevant 
     environment, such as a well-simulated operational 
     environment;
       (D) an independent cost estimate has been conducted and 
     used as the basis for funding requirements for the 
     acquisition program for the system;
       (E) the budget of the military department responsible for 
     carrying out the acquisition program for the system provides 
     the funding necessary to execute the product development and 
     production plan consistent with the requirements identified 
     pursuant to subparagraph (D);
       (F) an appropriately qualified program manager has entered 
     into a performance agreement with the Milestone Decision 
     Authority that establishes expected parameters for the cost, 
     schedule, and performance of the acquisition program for the 
     system, consistent with a business case for such acquisition 
     program;
       (G) the service acquisition executive and the program 
     manager have developed a strategy to ensure stability in 
     program management until, at a minimum, the delivery of the 
     initial operational capability under the acquisition program 
     for the system has occurred;
       (H) the service acquisition executive, the relevant 
     combatant commanders, and the program manager have agreed 
     that no additional requirements that would be inconsistent 
     with the agreed-upon program schedule will be added during 
     the development phase of the acquisition program for the 
     system; and
       (I) a planned initial operational capability will be 
     delivered to the relevant combatant commanders within a 
     defined period of time as prescribed in regulations by the 
     Secretary of Defense.
       (3) Timing of decision.--The decision whether to include a 
     major weapon system in the pilot

[[Page 20814]]

     program shall be made at the time of milestone approval for 
     the acquisition program for the system.
       (d) Limitation on Number of Weapons Systems in Pilot 
     Program.--The number of major weapon systems included in the 
     pilot program at any time may not exceed six major weapon 
     systems.
       (e) Limitation on Cost of Weapons Systems in Pilot 
     Program.--The Secretary of Defense may include a major weapon 
     system in the pilot program only if, at the time a major 
     weapon system is proposed for inclusion, the total cost for 
     system design and development of the weapon system, as set 
     forth in the cost estimate referred to in subsection 
     (c)(2)(D), does not exceed $1,000,000,000 during the period 
     covered by the current future-years defense program.
       (f) Special Funding Authority.--
       (1) Authority for reserve account.--Notwithstanding any 
     other provision of law, the Secretary of Defense may 
     establish a special reserve account utilizing funds made 
     available for the major weapon systems included in the pilot 
     program.
       (2) Elements.--The special reserve account may include--
       (A) funds made available for any major weapon system 
     included in the pilot program to cover termination liability;
       (B) funds made available for any major weapon system 
     included in the pilot program for award fees that may be 
     earned by contractors; and
       (C) funds appropriated to the special reserve account.
       (3) Availability of funds.--Funds in the special reserve 
     account may be used, in accordance with guidance issued by 
     the Secretary for purposes of this section, for the following 
     purposes:
       (A) To cover termination liability for any major weapon 
     system included in the pilot program.
       (B) To pay award fees that are earned by any contractor for 
     a major weapon system included in the pilot program.
       (C) To address unforeseen contingencies that could prevent 
     a major weapon system included in the pilot program from 
     meeting critical schedule or performance requirements.
       (4) Reports on use of funds.--Not later than 30 days after 
     the use of funds in the special reserve account for the 
     purpose specified in paragraph (3)(C), the Secretary shall 
     submit to the congressional defense committees a report on 
     the use of funds in the account for such purpose. The report 
     shall set forth the purposes for which the funds were used 
     and the reasons for the use of the funds for such purposes.
       (5) Relationship to appropriations.--Nothing in this 
     subsection may be construed as extending any period of time 
     for which appropriated funds are made available.
       (g) Administration of Pilot Program.--The Secretary of 
     Defense shall prescribe policies and procedures on the 
     administration of the pilot program. Such policies and 
     procedures shall--
       (1) provide for the use of program status reports based on 
     earned value data to track progress on a major weapon system 
     under the pilot program against baseline estimates applicable 
     to such system at each systems engineering technical review 
     point; and
       (2) grant authority, to the maximum extent practicable, to 
     the program manager for the acquisition program for a major 
     weapon system to make key program decisions and trade-offs, 
     subject to management reviews only if cost or schedule 
     deviations exceed the baselines for such acquisition program 
     by 10 percent or more.
       (h) Removal of Weapons Systems From Pilot Program.--The 
     Secretary of Defense shall remove a major weapon system from 
     the pilot program if--
       (1) the weapon system receives Milestone C approval; or
       (2) the Secretary determines that the weapon system is no 
     longer in substantial compliance with the criteria in 
     subsection (c)(2) or is otherwise no longer appropriate for 
     inclusion in the pilot program.
       (i) Expiration of Authority to Include Additional Systems 
     in Pilot Program.--
       (1) Expiration.--A major weapon system may not be included 
     in the pilot program after September 30, 2012.
       (2) Retention of systems.--A major weapon system included 
     in the pilot program before the date specified in paragraph 
     (1) in accordance with the requirements of this section may 
     remain in the pilot program after that date.
       (j) Annual Report.--
       (1) In general.--Not later than one year after including 
     the first major weapon system in the pilot program, and 
     annually thereafter, the Secretary shall submit to the 
     congressional defense committees a report on the pilot 
     program, and the major weapon systems included in the pilot 
     program, during the one-year period ending on the date of 
     such report.
       (2) Elements.--Each report under this subsection shall 
     include--
       (A) a description of progress under the pilot program, and 
     on each major weapon system included in the pilot program, 
     during the period covered by such report;
       (B) a description of the use of all funds in the special 
     reserve account established under subsection (f); and
       (C) such other matters as the Secretary considers 
     appropriate.
       (k) Major Weapon System Defined.--In this section, the term 
     ``major weapon system'' means a weapon system that is 
     treatable as a major system under section 2302(5) of title 
     10, United States Code.

     SEC. 813. ESTABLISHMENT OF PANEL ON CONTRACTING INTEGRITY.

       (a) Establishment.--
       (1) In general.--The Secretary of Defense shall establish a 
     panel to be known as the ``Panel on Contracting Integrity''.
       (2) Composition.--The panel shall be composed of the 
     following:
       (A) A representative of the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics, who shall be the 
     chairman of the panel.
       (B) A representative of the service acquisition executive 
     of each military department.
       (C) A representative of the Inspector General of the 
     Department of Defense.
       (D) A representative of the Inspector General of each 
     military department.
       (E) A representative of each Defense Agency involved with 
     contracting, as determined appropriate by the Secretary of 
     Defense.
       (F) Such other representatives as may be determined 
     appropriate by the Secretary of Defense.
       (b) Duties.--In addition to other matters assigned to it by 
     the Secretary of Defense, the panel shall--
       (1) conduct reviews of progress made by the Department of 
     Defense to eliminate areas of vulnerability of the defense 
     contracting system that allow fraud, waste, and abuse to 
     occur;
       (2) review the report by the Comptroller General required 
     by section 841 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3389), 
     relating to areas of vulnerability of Department of Defense 
     contracts to fraud, waste, and abuse; and
       (3) recommend changes in law, regulations, and policy that 
     it determines necessary to eliminate such areas of 
     vulnerability.
       (c) Meetings.--The panel shall meet as determined necessary 
     by the Secretary of Defense but not less often than once 
     every six months.
       (d) Report.--
       (1) Requirement.--The panel shall prepare and submit to the 
     Secretary of Defense and the congressional defense committees 
     an annual report on its activities. The report shall be 
     submitted not later then December 31 of each year and contain 
     a summary of the panel's findings and recommendations for the 
     year covered by the report.
       (2) First report.--The first report under this subsection 
     shall be submitted not later than December 31, 2007, and 
     shall contain an examination of the current structure in the 
     Department of Defense for contracting integrity and 
     recommendations for any changes needed to the system of 
     administrative safeguards and disciplinary actions to ensure 
     accountability at the appropriate level for any violations of 
     appropriate standards of behavior in contracting.
       (3) Interim reports.--The panel may submit such interim 
     reports to the congressional defense committees as the 
     Secretary of Defense considers appropriate.
       (e) Termination.--The panel shall terminate on December 31, 
     2009.

     SEC. 814. LINKING OF AWARD AND INCENTIVE FEES TO ACQUISITION 
                   OUTCOMES.

       (a) Guidance on Linking of Award and Incentive Fees to 
     Acquisition Outcomes.--Not later than 180 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     issue guidance, with detailed implementation instructions 
     (including definitions), for the Department of Defense on the 
     appropriate use of award and incentive fees in Department of 
     Defense acquisition programs.
       (b) Elements.--The guidance under subsection (a) shall--
       (1) ensure that all new contracts using award fees link 
     such fees to acquisition outcomes (which shall be defined in 
     terms of program cost, schedule, and performance);
       (2) establish standards for identifying the appropriate 
     level of officials authorized to approve the use of award and 
     incentive fees in new contracts;
       (3) provide guidance on the circumstances in which 
     contractor performance may be judged to be ``excellent'' or 
     ``superior'' and the percentage of the available award fee 
     which contractors should be paid for such performance;
       (4) establish standards for determining the percentage of 
     the available award fee, if any, which contractors should be 
     paid for performance that is judged to be ``acceptable'', 
     ``average'', ``expected'', ``good'', or ``satisfactory'';
       (5) ensure that no award fee may be paid for contractor 
     performance that is judged to be below satisfactory 
     performance or performance that does not meet the basic 
     requirements of the contract;
       (6) provide specific direction on the circumstances, if 
     any, in which it may be appropriate to roll over award fees 
     that are not earned in one award fee period to a subsequent 
     award fee period or periods;
       (7) ensure consistent use of guidelines and definitions 
     relating to award and incentive fees across the military 
     departments and Defense Agencies;
       (8) ensure that the Department of Defense--
       (A) collects relevant data on award and incentive fees paid 
     to contractors; and
       (B) has mechanisms in place to evaluate such data on a 
     regular basis;
       (9) include performance measures to evaluate the 
     effectiveness of award and incentive fees as a tool for 
     improving contractor performance and achieving desired 
     program outcomes; and
       (10) provide mechanisms for sharing proven incentive 
     strategies for the acquisition of different types of products 
     and services among contracting and program management 
     officials.
       (c) Assessment of Independent Evaluation Mechanisms.--

[[Page 20815]]

       (1) In general.--The Secretary of Defense shall select a 
     federally funded research and development center to assess 
     various mechanisms that could be used to ensure an 
     independent evaluation of contractor performance for the 
     purpose of making determinations applicable to the judging 
     and payment of award fees.
       (2) Considerations.--The assessment conducted pursuant to 
     paragraph (1) shall include consideration of the advantages 
     and disadvantages of a system in which award fees are--
       (A) held in a separate fund or funds of the Department of 
     Defense; and
       (B) allocated to a specific program only upon a 
     determination by an independent board, charged with comparing 
     contractor performance across programs, that such fees have 
     been earned by the contractor for such program.
       (3) Report.--The Secretary shall submit to the 
     congressional defense committees a report on the assessment 
     conducted pursuant to paragraph (1) not later than one year 
     after the date of the enactment of this Act.

     SEC. 815. REPORT ON DEFENSE INSTRUCTION RELATING TO 
                   CONTRACTOR PERSONNEL AUTHORIZED TO ACCOMPANY 
                   ARMED FORCES.

       (a) Report on Implementation of Instruction.--The Secretary 
     of Defense shall submit to Congress a report on the 
     Department of Defense instruction described in subsection 
     (c).
       (b) Matters Covered.--The report shall include the 
     following:
       (1) Information on the status of the implementation of the 
     instruction.
       (2) A discussion of how the instruction is being applied 
     to--
       (A) contracts in existence on the date the instruction was 
     issued, including contracts with respect to which an option 
     to extend is exercised after such date;
       (B) task orders issued under such contracts after the date 
     referred to in subparagraph (A); and
       (C) contracts entered into after the date referred to in 
     subparagraph (A).
       (3) An analysis of the effectiveness of the instruction.
       (4) A review of compliance with the instruction.
       (c) Instruction Described.--The instruction referred to in 
     this section is Department of Defense Instruction Number 
     3020.14, titled ``Contractor Personnel Authorized to 
     Accompany the United States Armed Forces''.

     SEC. 816. MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS.

       (a) Reports and Information on Program Cost and 
     Performance.--
       (1) In general.--Part IV of subtitle A of title 10, United 
     States Code, is amended by inserting after chapter 144 the 
     following new chapter:

      ``CHAPTER 144A--MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS

``Sec.
``2445a. Major automated information system program defined.
``2445b. Cost, schedule, and performance information.
``2445c. Reports: quarterly reports; reports on program changes.
``2445d. Construction with other reporting requirements.

     ``Sec. 2445a. Major automated information system program 
       defined

       ``(a) In General.--In this chapter, the term `major 
     automated information system program' means a Department of 
     Defense program for the acquisition of an automated 
     information system (either as a product or a service) if--
       ``(1) the program is designated by the Secretary of 
     Defense, or a designee of the Secretary, as a major automated 
     information system program; or
       ``(2) the dollar value of the program is estimated to 
     exceed--
       ``(A) $32,000,000 in fiscal year 2000 constant dollars for 
     all program costs in a single fiscal year;
       ``(B) $126,000,000 in fiscal year 2000 constant dollars for 
     all program acquisition costs for the entire program; or
       ``(C) $378,000,000 in fiscal year 2000 constant dollars for 
     the total life-cycle costs of the program (including 
     operation and maintenance costs).
       ``(b) Adjustment.--The Secretary of Defense may adjust the 
     amounts (and base fiscal year) set forth in subsection (a) on 
     the basis of Department of Defense escalation rates. An 
     adjustment under this subsection shall be effective after the 
     Secretary transmits a written notification of the adjustment 
     to the congressional defense committees.
       ``(c) Increments.--In the event any increment of a major 
     automated information system program separately meets the 
     requirements for treatment as a major automated information 
     system program, the provisions of this chapter shall apply to 
     such increment as well as to the overall major automated 
     information system program of which such increment is a part.

     ``Sec. 2445b. Cost, schedule, and performance information

       ``(a) Submittal of Cost, Schedule, and Performance 
     Information.--The Secretary of Defense shall submit to 
     Congress each calendar year, not later than 45 days after the 
     President submits to Congress the budget for a fiscal year 
     under section 1105 of title 31, budget justification 
     documents regarding cost, schedule, and performance for each 
     major automated information system program for which funds 
     are requested by the President in the budget.
       ``(b) Elements.--The documents submitted under subsection 
     (a) with respect to a major automated information system 
     program shall include detailed and summarized information 
     with respect to the automated information system to be 
     acquired under the program, and shall specifically include 
     each of the following:
       ``(1) The development schedule, including major milestones.
       ``(2) The implementation schedule, including estimates of 
     milestone dates, initial operational capability, and full 
     operational capability.
       ``(3) Estimates of development costs and full life-cycle 
     costs.
       ``(4) A summary of key performance parameters.
       ``(c) Baseline.--(1) For purposes of this chapter, the 
     initial submittal to Congress of the documents required by 
     subsection (a) with respect to a major automated information 
     system program shall constitute the original estimate or 
     information originally submitted on such program for purposes 
     of the reports and determinations on program changes in 
     section 2445c of this title.
       ``(2) An adjustment or revision of the original estimate or 
     information originally submitted on a program may be treated 
     as the original estimate or information originally submitted 
     on the program if the adjustment or revision is the result of 
     a critical change in the program covered by section 2445c(d) 
     of this title.
       ``(3) In the event of an adjustment or revision to the 
     original estimate or information originally submitted on a 
     program under paragraph (2), the Secretary of Defense shall 
     include in the next budget justification documents submitted 
     under subsection (a) after such adjustment or revision a 
     notification to the congressional defense committees of such 
     adjustment or revision, together with the reasons for such 
     adjustment or revision.

     ``Sec. 2445c. Reports: quarterly reports; reports on program 
       changes

       ``(a) Quarterly Reports by Program Managers.--The program 
     manager of a major automated information system program 
     shall, on a quarterly basis, submit to the senior Department 
     of Defense official responsible for the program a written 
     report identifying any variance in the projected development 
     schedule, implementation schedule, life-cycle costs, or key 
     performance parameters for the major automated information 
     system to be acquired under the program from such information 
     as originally submitted to Congress under section 2445b of 
     this title.
       ``(b) Senior Officials Responsible for Programs.--For 
     purposes of this section, the senior Department of Defense 
     official responsible for a major automated information system 
     program is--
       ``(1) in the case of an automated information system to be 
     acquired for a military department, the senior acquisition 
     executive for the military department; or
       ``(2) in the case of any other automated information system 
     to be acquired for the Department of Defense or any component 
     of the Department of Defense, the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics.
       ``(c) Report on Significant Changes in Program.--
       ``(1) In general.--If, based on a quarterly report 
     submitted by the program manager of a major automated 
     information system program pursuant to subsection (a), the 
     senior Department of Defense official responsible for the 
     program makes a determination described in paragraph (2), the 
     official shall, not later than 45 days after receiving such 
     report, notify the congressional defense committees in 
     writing of such determination.
       ``(2) Covered determination.--A determination described in 
     this paragraph with respect to a major automated information 
     system program is a determination that--
       ``(A) there has been a schedule change that will cause a 
     delay of more than six months but less than a year in any 
     program schedule milestone or significant event from the 
     schedule originally submitted to Congress under paragraph (1) 
     or (2) of section 2445b(b) of this title;
       ``(B) the estimated program development cost or full life-
     cycle cost for the program has increased by at least 15 
     percent, but less than 25 percent, over the original estimate 
     submitted to Congress under paragraph (3) of section 2445b(b) 
     of this title; or
       ``(C) there has been a significant, adverse change in the 
     expected performance of the major automated information 
     system to be acquired under the program from the parameters 
     originally submitted to Congress under paragraph (4) of 
     section 2445b(b) of this title.
       ``(d) Report on Critical Changes in Program.--
       ``(1) In general.--If, based on a quarterly report 
     submitted by the program manager of a major automated 
     information system program pursuant to subsection (a), the 
     senior Department of Defense official responsible for the 
     program makes a determination described in paragraph (2), the 
     official shall, not later than 60 days after receiving such 
     report--
       ``(A) carry out an evaluation of the program under 
     subsection (e); and
       ``(B) submit, through the Secretary of Defense, to the 
     congressional defense committees a report meeting the 
     requirements of subsection (f).
       ``(2) Covered determination.--A determination described in 
     this paragraph with respect to a major automated information 
     system program is a determination that--
       ``(A) the system failed to achieve initial operational 
     capability within five years of milestone A approval;
       ``(B) there has been a schedule change that will cause a 
     delay of one year or more in any program schedule milestone 
     or significant event

[[Page 20816]]

     from the schedule originally submitted to Congress under 
     paragraph (1) or (2) of section 2445b(b) of this title;
       ``(C) the estimated program development cost or full life-
     cycle cost for the program has increased by 25 percent or 
     more over the original estimate submitted to Congress under 
     paragraph (3) of section 2445b(b) of this title; or
       ``(D) there has been a change in the expected performance 
     of the major automated information system to be acquired 
     under the program that will undermine the ability of the 
     system to perform the functions anticipated at the time 
     information on the program was originally submitted to 
     Congress under section 2445b(b) of this title.
       ``(e) Program Evaluation.--The evaluation of a major 
     automated information system program conducted under this 
     subsection for purposes of subsection (d)(1)(A) shall include 
     an assessment of--
       ``(1) the projected cost and schedule for completing the 
     program if current requirements are not modified;
       ``(2) the projected cost and schedule for completing the 
     program based on reasonable modification of such 
     requirements; and
       ``(3) the rough order of magnitude of the cost and schedule 
     for any reasonable alternative system or capability.
       ``(f) Report on Critical Program Changes.--A report on a 
     major automated information system program conducted under 
     this subsection for purposes of subsection (d)(1)(B) shall 
     include a written certification (with supporting explanation) 
     stating that--
       ``(1) the automated information system to be acquired under 
     the program is essential to the national security or to the 
     efficient management of the Department of Defense;
       ``(2) there is no alternative to the system which will 
     provide equal or greater capability at less cost;
       ``(3) the new estimates of the costs, schedule, and 
     performance parameters with respect to the program and system 
     are reasonable; and
       ``(4) the management structure for the program is adequate 
     to manage and control program costs.
       ``(g) Prohibition on Obligation of Funds.--(1) If the 
     determination of a critical change to a program is made by 
     the senior Department official responsible for the program 
     under subsection (d)(2) and a report is not submitted to 
     Congress within the 60-day period provided by subsection 
     (d)(1), appropriated funds may not be obligated for any major 
     contract under the program.
       ``(2) The prohibition on the obligation of funds for a 
     program under paragraph (1) shall cease to apply on the date 
     on which Congress has received a report in compliance with 
     the requirements of subsection (d)(2).

     ``Sec. 2445d. Construction with other reporting requirements

       ``In the case of a major automated information system 
     program covered by this chapter that is also treatable as a 
     major defense acquisition program for which reports would be 
     required under chapter 144 of this title, no reports on the 
     program are required under such chapter if the requirements 
     of this chapter with respect to the program are met.''.
       (2) Clerical amendments.--The tables of chapters the 
     beginning of subtitle A of such title, and of part IV of 
     subtitle A of such title, are each amended by inserting after 
     the item relating to chapter 144 the following new item:

``144A. Major Automated Information System Programs........2445a''.....

       (b) Report on Reporting Requirements Applicable to Major 
     Automated Information System Programs.--Not later than 180 
     days after the date of enactment of this Act, the Secretary 
     of Defense shall submit to the congressional defense 
     committees a report setting forth the reporting requirements 
     applicable to major automated information system programs as 
     of the date of the report, including a specification of such 
     reporting requirements considered by the Secretary to be 
     duplicative or redundant.
       (c) Effective Date.--
       (1) In general.--The amendments made by subsection (a) 
     shall take effect on January 1, 2008, and shall apply with 
     respect to any major automated information system program for 
     which amounts are requested in the budget of the President 
     (as submitted to Congress under section 1105 of title 31, 
     United States Code) for a fiscal year after fiscal year 2008, 
     regardless of whether the acquisition of the automated 
     information system to be acquired under the program was 
     initiated before, on, or after January 1, 2008.
       (2) Report requirement.--Subsection (b) shall take effect 
     on the date of the enactment of this Act.

     SEC. 817. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF THE 
                   DEPARTMENT OF DEFENSE BY CERTAIN NON-DEFENSE 
                   AGENCIES.

       (a) Inspector General Reviews and Determinations.--
       (1) In general.--For each covered non-defense agency, the 
     Inspector General of the Department of Defense and the 
     Inspector General of such non-defense agency shall, not later 
     than March 15, 2007, jointly--
       (A) review--
       (i) the procurement policies, procedures, and internal 
     controls of such non-defense agency that are applicable to 
     the procurement of property and services on behalf of the 
     Department by such non-defense agency; and
       (ii) the administration of those policies, procedures, and 
     internal controls; and
       (B) determine in writing whether--
       (i) such non-defense agency is compliant with defense 
     procurement requirements;
       (ii) such non-defense agency is not compliant with defense 
     procurement requirements, but has a program or initiative to 
     significantly improve compliance with defense procurement 
     requirements;
       (iii) neither of the conclusions stated in clauses (i) and 
     (ii) is correct in the case of such non-defense agency; or
       (iv) such non-defense agency is not compliant with defense 
     procurement requirements to such an extent that the interests 
     of the Department of Defense are at risk in procurements 
     conducted by such non-defense agency.
       (2) Actions following certain determinations.--If the 
     Inspectors General determine under paragraph (1) that a 
     conclusion stated in clause (ii), (iii), or (iv) of 
     subparagraph (B) of that paragraph is correct in the case of 
     a covered non-defense agency, such Inspectors General shall, 
     not later than June 15, 2008, jointly--
       (A) conduct a second review, as described in subparagraph 
     (A) of that paragraph, regarding such non-defense agency's 
     procurement of property or services on behalf of the 
     Department of Defense in fiscal year 2007; and
       (B) determine in writing whether such non-defense agency is 
     or is not compliant with defense procurement requirements.
       (b) Compliance With Defense Procurement Requirements.--For 
     the purposes of this section, a covered non-defense agency is 
     compliant with defense procurement requirements if such non-
     defense agency's procurement policies, procedures, and 
     internal controls applicable to the procurement of products 
     and services on behalf of the Department of Defense, and the 
     manner in which they are administered, are adequate to ensure 
     such non-defense agency's compliance with the requirements of 
     laws and regulations that apply to procurements of property 
     and services made directly by the Department of Defense.
       (c) Memoranda of Understanding Between Inspectors 
     General.--
       (1) In general.--Not later than 60 days after the date of 
     the enactment of this Act, the Inspector General of the 
     Department of Defense and the Inspector General of each 
     covered non-defense agency shall enter into a memorandum of 
     understanding with each other to carry out the reviews and 
     make the determinations required by this section.
       (2) Scope of memoranda.--The Inspector General of the 
     Department of Defense and the Inspector General of a covered 
     non-defense agency may by mutual agreement conduct separate 
     reviews of the procurement of property and services on behalf 
     of the Department of Defense that are conducted by separate 
     business units, or under separate governmentwide acquisition 
     contracts, of such non-defense agency. In any case where such 
     separate reviews are conducted, the Inspectors General shall 
     make separate determinations under paragraph (1) or (2) of 
     subsection (a), as applicable, with respect to each such 
     separate review.
       (d) Limitations on Procurements on Behalf of Department of 
     Defense.--
       (1) Limitation during review period.--After March 15, 2007, 
     and before June 16, 2008, no official of the Department of 
     Defense may, except as provided in subsection (e) or (f), 
     order, purchase, or otherwise procure property or services in 
     an amount in excess of $100,000 through a covered non-defense 
     agency for which a determination described in clause (iii) or 
     (iv) of paragraph (1)(B) of subsection (a) has been made 
     under subsection (a).
       (2) Limitation after review period.--After June 15, 2008, 
     no official of the Department of Defense may, except as 
     provided in subsection (e) or (f), order, purchase, or 
     otherwise procure property or services in an amount in excess 
     of $100,000 through a covered non-defense agency that, having 
     been subject to review under this section, has not been 
     determined under this section as being compliant with defense 
     procurement requirements.
       (3) Limitation following failure to reach mou.--Commencing 
     on the date that is 60 days after the date of the enactment 
     of this Act, if a memorandum of understanding between the 
     Inspector General of the Department of Defense and the 
     Inspector General of a covered non-defense agency cannot be 
     attained causing the review required by this section to not 
     be performed, no official of the Department of Defense, 
     except as provided in subsection (e) or (f), may order, 
     purchase or otherwise procure property or services in an 
     amount in excess of $100,000 through such non-defense agency.
       (e) Exception From Applicability of Limitations.--
       (1) Exception.--No limitation applies under subsection (d) 
     with respect to the procurement of property and services on 
     behalf of the Department of Defense by a covered non-defense 
     agency during any period that there is in effect a 
     determination of the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics, made in writing, that 
     it is necessary in the interest of the Department of Defense 
     to continue to procure property and services through such 
     non-defense agency.
       (2) Applicability of determination.--A written 
     determination with respect to a covered non-defense agency 
     under paragraph (1) is in effect for the period, not in 
     excess of one year, that the Under Secretary shall specify in 
     the written determination. The Under Secretary may extend 
     from time to time, for up to one year at a time, the period 
     for which the written determination remains in effect.

[[Page 20817]]

       (f) Termination of Applicability of Limitations.--
     Subsection (d) shall cease to apply to a covered non-defense 
     agency on the date on which the Inspector General of the 
     Department of Defense and the Inspector General of such non-
     defense agency jointly--
       (1) determine that such non-defense agency is compliant 
     with defense procurement requirements; and
       (2) notify the Secretary of Defense of that determination.
       (g) Identification of Procurements Made During a Particular 
     Fiscal Year.--For the purposes of subsection (a), a 
     procurement shall be treated as being made during a 
     particular fiscal year to the extent that funds are obligated 
     by the Department of Defense for that procurement in that 
     fiscal year.
       (h) Resolution of Disagreements.--If the Inspector General 
     of the Department of Defense and the Inspector General of a 
     covered non-defense agency are unable to agree on a joint 
     determination under subsection (a) or (f), a determination by 
     the Inspector General of the Department of Defense under such 
     subsection shall be conclusive for the purposes of this 
     section.
       (i) Definitions.--In this section:
       (1) The term ``covered non-defense agency'' means each of 
     the following:
       (A) The Department of Veterans Affairs.
       (B) The National Institutes of Health.
       (2) The term ``governmentwide acquisition contract'', with 
     respect to a covered non-defense agency, means a task or 
     delivery order contract that--
       (A) is entered into by the non-defense agency; and
       (B) may be used as the contract under which property or 
     services are procured for one or more other departments or 
     agencies of the Federal Government.

     SEC. 818. DETERMINATION OF CONTRACT TYPE FOR DEVELOPMENT 
                   PROGRAMS.

       (a) Repeal of Superseded Requirements.--Section 807 of the 
     National Defense Authorization Act, Fiscal Year 1989 (10 
     U.S.C. 2304 note) is repealed.
       (b) Modification of Regulations.--Not later than 120 days 
     after the date of the enactment of this Act, the Secretary of 
     Defense shall modify the regulations of the Department of 
     Defense regarding the determination of contract type for 
     development programs.
       (c) Elements.--As modified under subsection (b), the 
     regulations shall require the Milestone Decision Authority 
     for a major defense acquisition program to select the 
     contract type for a development program at the time of a 
     decision on Milestone B approval (or Key Decision Point B 
     approval in the case of a space program) that is consistent 
     with the level of program risk for the program. The Milestone 
     Decision Authority may select--
       (1) a fixed-price type contract (including a fixed price 
     incentive contract); or
       (2) a cost type contract.
       (d) Conditions With Respect to Authorization of Cost Type 
     Contract.--As modified under subsection (b), the regulations 
     shall provide that the Milestone Decision Authority may 
     authorize the use of a cost type contract under subsection 
     (c) for a development program only upon a written 
     determination that--
       (1) the program is so complex and technically challenging 
     that it would not be practicable to reduce program risk to a 
     level that would permit the use of a fixed-price type 
     contract; and
       (2) the complexity and technical challenge of the program 
     is not the result of a failure to meet the requirements 
     established in section 2366a of title 10, United States Code.
       (e) Justification for Selection of Contract Type.--As 
     modified under subsection (b), the regulations shall require 
     the Milestone Decision Authority to document the basis for 
     the contract type selected for a program. The documentation 
     shall include an explanation of the level of program risk for 
     the program and, if the Milestone Decision Authority 
     determines that the level of program risk is high, the steps 
     that have been taken to reduce program risk and reasons for 
     proceeding with Milestone B approval despite the high level 
     of program risk.

     SEC. 819. THREE-YEAR EXTENSION OF REQUIREMENT FOR REPORTS ON 
                   COMMERCIAL PRICE TREND ANALYSES OF THE 
                   DEPARTMENT OF DEFENSE.

       Section 803(c)(4) of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (10 U.S.C. 2306a note) 
     is amended by striking ``2006'' and inserting ``2009''.

     SEC. 820. GOVERNMENT PERFORMANCE OF CRITICAL ACQUISITION 
                   FUNCTIONS.

       (a) Goal.--It shall be the goal of the Department of 
     Defense and each of the military departments to ensure that, 
     within five years after the date of the enactment of this 
     Act, for each major defense acquisition program and each 
     major automated information system program, each of the 
     following positions is performed by a properly qualified 
     member of the Armed Forces or full-time employee of the 
     Department of Defense:
       (1) Program manager.
       (2) Deputy program manager.
       (3) Chief engineer.
       (4) Systems engineer.
       (5) Cost estimator.
       (b) Plan of Action.--Not later than six months after the 
     date of enactment of this Act, the Secretary of Defense shall 
     develop and begin implementation of a plan of action for 
     recruiting, training, and ensuring appropriate career 
     development of military and civilian personnel to achieved 
     the objective established in subsection (a). The plan of 
     action required by this subsection shall include specific, 
     measurable interim milestones.
       (c) Reports.--Not later than one year after the date of the 
     enactment of this Act and each year thereafter, the Secretary 
     of Defense shall submit to the congressional defense 
     committees a report on the progress made by the Department of 
     Defense and the military departments toward achieving the 
     goal established in subsection (a).
       (d) Definitions.--In this section:
       (1) The term ``major defense acquisition program'' has the 
     meaning given such term in section 2430(a) of title 10, 
     United States Code.
       (2) The term ``major automated information system program'' 
     has the meaning given such term in section 2445a(a) of title 
     10, United States Code (as added by section 816 of this Act).
Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

     SEC. 831. ONE-YEAR EXTENSION OF SPECIAL TEMPORARY CONTRACT 
                   CLOSEOUT AUTHORITY.

       Section 804(d) of the National Defense Authorization Act 
     for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1542) is 
     amended by striking ``September 30, 2006'' and inserting 
     ``September 30, 2007''.

     SEC. 832. LIMITATION ON CONTRACTS FOR THE ACQUISITION OF 
                   CERTAIN SERVICES.

       (a) Limitation.--Except as provided in subsection (b), the 
     Secretary of Defense may not enter into a service contract to 
     acquire a military flight simulator.
       (b) Waiver.--The Secretary of Defense may waive subsection 
     (a) with respect to a contract if the Secretary--
       (1) determines that a waiver is necessary for national 
     security purposes; and
       (2) provides to the congressional defense committees an 
     economic analysis as described in subsection (c) at least 30 
     days before the waiver takes effect.
       (c) Economic Analysis.--The economic analysis provided 
     under subsection (b) shall include, at a minimum, the 
     following:
       (1) A clear explanation of the need for the contract.
       (2) An examination of at least two alternatives for 
     fulfilling the requirements that the contract is meant to 
     fulfill, including the following with respect to each 
     alternative:
       (A) A rationale for including the alternative.
       (B) A cost estimate of the alternative and an analysis of 
     the quality of each cost estimate.
       (C) A discussion of the benefits to be realized from the 
     alternative.
       (D) A best value determination of each alternative and a 
     detailed explanation of the life-cycle cost calculations used 
     in the determination.
       (d) Definitions.--In this section:
       (1) The term ``military flight simulator'' means any major 
     system to simulate the form, fit, and function of a military 
     aircraft that has no commonly available commercial variant.
       (2) The term ``service contract'' means any contract 
     entered into by the Department of Defense the principal 
     purpose of which is to furnish services in the United States 
     through the use of service employees.
       (3) The term ``service employees'' has the meaning provided 
     in section 8(b) of the Service Contract Act of 1965 (41 
     U.S.C. 357(b)).

     SEC. 833. USE OF FEDERAL SUPPLY SCHEDULES BY STATE AND LOCAL 
                   GOVERNMENTS FOR GOODS AND SERVICES FOR RECOVERY 
                   FROM NATURAL DISASTERS, TERRORISM, OR NUCLEAR, 
                   BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL ATTACK.

       (a) Authority to Use Supply Schedules for Certain Goods and 
     Services.--Section 502 of title 40, United States Code, is 
     amended by adding at the end the following new subsection:
       ``(d) Use of Supply Schedules for Certain Goods and 
     Services.--
       ``(1) In general.--The Administrator may provide for the 
     use by State or local governments of Federal supply schedules 
     of the General Services Administration for goods or services 
     that are to be used to facilitate recovery from a major 
     disaster declared by the President under the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5121 et seq.) or to facilitate recovery from terrorism 
     or nuclear, biological, chemical, or radiological attack.
       ``(2) Determination by secretary of homeland security.--The 
     Secretary of Homeland Security shall determine which goods 
     and services qualify as goods and services described in 
     paragraph (1) before the Administrator provides for the use 
     of the Federal supply schedule relating to such goods and 
     services.
       ``(3) Voluntary use.--In the case of the use by a State or 
     local government of a Federal supply schedule pursuant to 
     paragraph (1), participation by a firm that sells to the 
     Federal Government through the supply schedule shall be 
     voluntary with respect to a sale to the State or local 
     government through such supply schedule.
       ``(4) Definitions.--The definitions in subsection (c)(3) 
     shall apply for purposes of this subsection.''.
       (b) Procedures.--Not later than 30 days after the date of 
     the enactment of this Act, the Administrator of General 
     Services shall establish procedures to implement subsection 
     (d) of section 502 of title 40, United States Code (as added 
     by subsection (a)).

     SEC. 834. WAIVERS TO EXTEND TASK ORDER CONTRACTS FOR ADVISORY 
                   AND ASSISTANCE SERVICES.

        (a) Defense Contracts.--
       (1) Waiver authority.--The head of an agency may issue a 
     waiver to extend a task

[[Page 20818]]

     order contract entered into under section 2304b of title 10, 
     United States Code, for a period not exceeding 10 years, 
     through five one-year options, if the head of the agency 
     determines in writing--
       (A) that the contract provides engineering or technical 
     services of such a unique and substantial technical nature 
     that award of a new contract would be harmful to the 
     continuity of the program for which the services are 
     performed;
       (B) that award of a new contract would create a large 
     disruption in services provided to the Department of Defense; 
     and
       (C) that the Department of Defense would, through award of 
     a new contract, endure program risk during critical program 
     stages due to loss of program corporate knowledge of ongoing 
     program activities.
       (2) Delegation.--The authority of the head of an agency 
     under paragraph (1) may be delegated only to the senior 
     procurement executive of the agency.
       (3) Report.--Not later than April 1, 2007, the Secretary of 
     Defense shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a report on 
     advisory and assistance services. The report shall include 
     the following information:
       (A) The methods used by the Department of Defense to 
     identify a contract as an advisory and assistance services 
     contract, as defined in section 2304b of title 10, United 
     States Code.
       (B) The number of such contracts awarded by the Department 
     during the five-year period preceding the date of the 
     enactment of this Act.
       (C) The average annual expenditures by the Department for 
     such contracts.
       (D) The average length of such contracts.
       (E) The number of such contracts recompeted and awarded to 
     the previous award winner.
       (4) Prohibition on use of authority by department of 
     defense if report not submitted.--The head of an agency may 
     not issue a waiver under paragraph (1) if the report required 
     by paragraph (3) is not submitted by the date set forth in 
     that paragraph.
       (b) Civilian Agency Contracts.--
       (1) Waiver authority.--The head of an executive agency may 
     issue a waiver to extend a task order contract entered into 
     under section 303I of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253i) for a period not 
     exceeding 10 years, through five one-year options, if the 
     head of the agency determines in writing--
       (A) that the contract provides engineering or technical 
     services of such a unique and substantial technical nature 
     that award of a new contract would be harmful to the 
     continuity of the program for which the services are 
     performed;
       (B) that award of a new contract would create a large 
     disruption in services provided to the executive agency; and
       (C) that the executive agency would, through award of a new 
     contract, endure program risk during critical program stages 
     due to loss of program corporate knowledge of ongoing program 
     activities.
       (2) Delegation.--The authority of the head of an executive 
     agency under paragraph (1) may be delegated only to the Chief 
     Acquisition Officer of the agency (or the senior procurement 
     executive in the case of an agency for which a Chief 
     Acquisition Officer has not been appointed or designated 
     under section 16(a) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 414(a))).
       (3) Report.--Not later than April 1, 2007, the 
     Administrator for Federal Procurement Policy shall submit to 
     the Committee on Homeland Security and Governmental Affairs 
     of the Senate and the Committee on Government Reform of the 
     House of Representatives a report on advisory and assistance 
     services. The report shall include the following information:
       (A) The methods used by executive agencies to identify a 
     contract as an advisory and assistance services contract, as 
     defined in section 303I(i) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253i(i)).
       (B) The number of such contracts awarded by each executive 
     agency during the five-year period preceding the date of the 
     enactment of this Act.
       (C) The average annual expenditures by each executive 
     agency for such contracts.
       (D) The average length of such contracts.
       (E) The number of such contracts recompeted and awarded to 
     the previous award winner.
       (4) Prohibition on use of authority by executive agencies 
     if report not submitted.--The head of an executive agency may 
     not issue a waiver under paragraph (1) if the report required 
     by paragraph (3) is not submitted by the date set forth in 
     that paragraph.
       (c) Termination of Authority.--A waiver may not be issued 
     under this section after December 31, 2011.
       (d) Comptroller General Review.--
       (1) Report requirement.--Not later than one year after the 
     date of the enactment of this Act, the Comptroller General 
     shall submit to the committees described in paragraph (3) a 
     report on the use of advisory and assistance services 
     contracts by the Federal Government.
       (2) Defense and civilian agency contracts covered.--The 
     report shall cover both of the following:
       (A) Advisory and assistance services contracts as defined 
     in section 2304b of title 10, United States Code.
       (B) Advisory and assistance services contracts as defined 
     in section 303I(i) of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253i(i)).
       (3) Matters covered.--The report shall address the 
     following issues:
       (A) The extent to which executive agencies and elements of 
     the Department of Defense require advisory and assistance 
     services for periods of greater than five years.
       (B) The extent to which such advisory and assistance 
     services are provided by the same contractors under recurring 
     contracts.
       (C) The rationale for contracting for advisory and 
     assistance services that will be needed on a continuing 
     basis, rather than performing the services inside the Federal 
     Government.
       (D) The contract types and oversight mechanisms used by the 
     Federal Government in contracts for advisory and assistance 
     services and the extent to which such contract types and 
     oversight mechanisms are adequate to protect the interests of 
     the Government and taxpayers.
       (E) The actions taken by the Federal Government to prevent 
     organizational conflicts of interest and improper personal 
     services contracts in its contracts for advisory and 
     assistance services.
       (4) Committees.--The committees described in this paragraph 
     are the following:
       (A) The Committees on Armed Services and on Homeland 
     Security and Governmental Affairs of the Senate.
       (B) The Committees on Armed Services and on Government 
     Reform of the House of Representatives.
      Subtitle D--United States Defense Industrial Base Provisions

     SEC. 841. ASSESSMENT AND ANNUAL REPORT OF UNITED STATES 
                   DEFENSE INDUSTRIAL BASE CAPABILITIES AND 
                   ACQUISITIONS OF ARTICLES, MATERIALS, AND 
                   SUPPLIES MANUFACTURED OUTSIDE THE UNITED 
                   STATES.

       Section 812 of the National Defense Authorization Act for 
     Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1542) is 
     amended--
       (1) by amending the heading to read as follows:

     ``SEC. 812. ASSESSMENT AND ANNUAL REPORT OF UNITED STATES 
                   DEFENSE INDUSTRIAL BASE CAPABILITIES AND 
                   ACQUISITIONS OF ARTICLES, MATERIALS, AND 
                   SUPPLIES MANUFACTURED OUTSIDE THE UNITED 
                   STATES.'';

       (2) by adding at the end of subsection (c)(2)(A) the 
     following new clauses:
       ``(v) The dollar value of any articles, materials, or 
     supplies purchased that were manufactured outside of the 
     United States.
       ``(vi) An itemized list of all waivers granted with respect 
     to such articles, materials, or supplies under the Buy 
     American Act (41 U.S.C. 10a et seq.).
       ``(vii) A summary of--
       ``(I) the total procurement funds expended on articles, 
     materials, and supplies manufactured inside the United 
     States; and
       ``(II) the total procurement funds expended on articles, 
     materials, and supplies manufactured outside the United 
     States.''; and
       (3) by adding at the end the following new subsections:
       ``(d) Public Availability.--The Secretary of Defense shall 
     make the report submitted under subsection (c) publicly 
     available to the maximum extent practicable.
       ``(e) Applicability.--This section shall not apply to 
     acquisitions made by an agency, or component thereof, that is 
     an element of the intelligence community as set forth in or 
     designated under section 3(4) of the National Security Act of 
     1947 (50 U.S.C. 401a(4)).''.

     SEC. 842. PROTECTION OF STRATEGIC MATERIALS CRITICAL TO 
                   NATIONAL SECURITY.

       (a) Requirement to Buy From American Sources.--
       (1) In general.--Subchapter V of chapter 148 of title 10, 
     United States Code, is amended by inserting after section 
     2533a the following new section:

     ``Sec. 2533b. Requirement to buy strategic materials critical 
       to national security from American sources; exceptions

       ``(a) Requirement.--Except as provided in subsections (b) 
     through (j), funds appropriated or otherwise available to the 
     Department of Defense may not be used for procurement of--
       ``(1) the following types of end items, or components 
     thereof, containing a specialty metal not melted or produced 
     in the United States: aircraft, missile and space systems, 
     ships, tank and automotive items, weapon systems, or 
     ammunition; or
       ``(2) a specialty metal that is not melted or produced in 
     the United States and that is to be purchased directly by the 
     Department of Defense or a prime contractor of the 
     Department.
       ``(b) Availability Exception.--(1) Subsection (a) does not 
     apply to the extent that the Secretary of Defense or the 
     Secretary of the military department concerned determines 
     that compliant specialty metal of satisfactory quality and 
     sufficient quantity, and in the required form, cannot be 
     procured as and when needed. For purposes of the preceding 
     sentence, the term `compliant specialty metal' means 
     specialty metal melted or produced in the United States.
       ``(2) This subsection applies to prime contracts and 
     subcontracts at any tier under such contracts.
       ``(c) Exception for Certain Procurements.--Subsection (a) 
     does not apply to the following:
       ``(1) Procurements outside the United States in support of 
     combat operations or in support of contingency operations.
       ``(2) Procurements for which the use of procedures other 
     than competitive procedures has been approved on the basis of 
     section 2304(c)(2) of this title, relating to unusual and 
     compelling urgency of need.

[[Page 20819]]

       ``(d) Exception Relating to Agreements With Foreign 
     Governments.--Subsection (a)(1) does not preclude the 
     procurement of a specialty metal if--
       ``(1) the procurement is necessary--
       ``(A) to comply with agreements with foreign governments 
     requiring the United States to purchase supplies from foreign 
     sources for the purposes of offsetting sales made by the 
     United States Government or United States firms under 
     approved programs serving defense requirements; or
       ``(B) in furtherance of agreements with foreign governments 
     in which both such governments agree to remove barriers to 
     purchases of supplies produced in the other country or 
     services performed by sources of the other country; and
       ``(2) any such agreement with a foreign government 
     complies, where applicable, with the requirements of section 
     36 of the Arms Export Control Act (22 U.S.C. 2776) and with 
     section 2457 of this title.
       ``(e) Exception for Commissaries, Exchanges, and Other 
     Nonappropriated Fund Instrumentalities.--Subsection (a) does 
     not apply to items purchased for resale purposes in 
     commissaries, exchanges, and nonappropriated fund 
     instrumentalities operated by the Department of Defense.
       ``(f) Exception for Small Purchases.--Subsection (a) does 
     not apply to procurements in amounts not greater than the 
     simplified acquisition threshold referred to in section 
     2304(g) of this title.
       ``(g) Exception for Purchases of Electronic Components.--
     Subsection (a) does not apply to procurements of commercially 
     available electronic components whose specialty metal content 
     is de minimis in value compared to the overall value of the 
     lowest level electronic component produced that contains such 
     specialty metal.
       ``(h) Applicability to Procurements of Commercial Items.--
     This section applies to procurements of commercial items 
     notwithstanding section 34 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 430).
       ``(i) Specialty Metal Defined.--In this section, the term 
     `specialty metal' means any of the following:
       ``(1) Steel--
       ``(A) with a maximum alloy content exceeding one or more of 
     the following limits: manganese, 1.65 percent; silicon, 0.60 
     percent; or copper, 0.60 percent; or
       ``(B) containing more than 0.25 percent of any of the 
     following elements: aluminum, chromium, cobalt, columbium, 
     molybdenum, nickel, titanium, tungsten, or vanadium.
       ``(2) Metal alloys consisting of nickel, iron-nickel, and 
     cobalt base alloys containing a total of other alloying 
     metals (except iron) in excess of 10 percent.
       ``(3) Titanium and titanium alloys.
       ``(4) Zirconium and zirconium base alloys.
       ``(j) Additional Definitions.--In this section:
       ``(1) The term `United States' includes possessions of the 
     United States.
       ``(2) The term `component' has the meaning provided in 
     section 4 of the Office of Federal Procurement Policy Act (41 
     U.S.C. 403).''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such subchapter is amended by adding at the end 
     the following new item:
``2533b. Requirement to buy strategic materials critical to national 
              security from American sources; exceptions.''.

       (3) Conforming amendments.--Section 2533a of title 10, 
     United States Code, is amended--
       (A) by striking paragraph (2) of subsection (b) and 
     redesignating paragraph (3) of such subsection as paragraph 
     (2);
       (B) in subsection (c), by striking ``or specialty metals 
     (including stainless steel flatware)''; and
       (C) in subsection (e)--
       (i) by striking ``Specialty Metals and'' in the heading; 
     and
       (ii) by striking ``specialty metals or''.
       (4) Effective dates.--
       (A) Section 2533b of title 10, United States Code, as added 
     by paragraph (1), shall apply with respect to contracts 
     entered into after the date occurring 30 days after the date 
     of the enactment of this Act.
       (B) The amendments made by paragraph (3) shall take effect 
     on the date occurring 30 days after the date of the enactment 
     of this Act.
       (b) One-Time Waiver of Specialty Metals Domestic Source 
     Requirement.--
       (1) Authority.--The Secretary of Defense or the Secretary 
     of a military department may accept specialty metals if such 
     metals were incorporated into items produced, manufactured, 
     or assembled in the United States before the date of the 
     enactment of this Act with respect to which the contracting 
     officer for the contract determines that the contractor is 
     not in compliance with section 2533b of title 10, United 
     States Code (as added by subsection (a)(1)), if--
       (A) the contracting officer for the contract determines in 
     writing that--
       (i) it would not be practical or economical to remove or 
     replace the specialty metals incorporated in such items or to 
     substitute items containing compliant materials;
       (ii) the prime contractor and subcontractor responsible for 
     providing items containing non-compliant materials have in 
     place an effective plan to ensure compliance with section 
     2533b of title 10, United States Code (as so added), with 
     regard to items containing specialty metals if such metals 
     were incorporated into items produced, manufactured, or 
     assembled in the United States after the date of the 
     enactment of this Act; and
       (iii) the non-compliance is not knowing or willful; and
       (B) the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics or the service acquisition 
     executive of the military department concerned approves the 
     determination.
       (2) Notice.--Not later than 15 days after a contracting 
     officer makes a determination under paragraph (1)(A) with 
     respect to a contract, the contracting officer shall post a 
     notice on FedBizOpps.gov that a waiver has been granted for 
     the contract under this subsection.
       (3) Definition.--In this subsection, the term 
     ``FedBizOpps.gov'' means the website maintained by the 
     General Services Administration known as FedBizOpps.gov (or 
     any successor site).
       (4) Termination of authority.--A contracting officer may 
     exercise the authority under this subsection only with 
     respect to the delivery of items the final acceptance of 
     which takes place after the date of the enactment of this Act 
     and before September 30, 2010.

     SEC. 843. STRATEGIC MATERIALS PROTECTION BOARD.

       (a) In General.--Chapter 7 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 187. Strategic Materials Protection Board

       ``(a) Establishment.--(1) The Secretary of Defense shall 
     establish a Strategic Materials Protection Board.
       ``(2) The Board shall be composed of representatives of the 
     following:
       ``(A) The Secretary of Defense, who shall be the chairman 
     of the Board.
       ``(B) The Under Secretary of Defense for Acquisition, 
     Technology, and Logistics.
       ``(C) The Under Secretary of Defense for Intelligence.
       ``(D) The Secretary of the Army.
       ``(E) The Secretary of the Navy.
       ``(F) The Secretary of the Air Force.
       ``(b) Duties.--In addition to other matters assigned to it 
     by the Secretary of Defense, the Board shall--
       ``(1) determine the need to provide a long term domestic 
     supply of materials designated as critical to national 
     security to ensure that national defense needs are met;
       ``(2) analyze the risk associated with each material 
     designated as critical to national security and the effect on 
     national defense that the nonavailability of such material 
     from a domestic source would have;
       ``(3) recommend a strategy to the President to ensure the 
     domestic availability of materials designated as critical to 
     national security;
       ``(4) recommend such other strategies to the President as 
     the Board considers appropriate to strengthen the industrial 
     base with respect to materials critical to national security; 
     and
       ``(5) publish not less frequently than once every two years 
     in the Federal Register recommendations regarding materials 
     critical to national security, including a list of specialty 
     metals, if any, recommended for addition to, or removal from, 
     the definition of `specialty metal' for purposes of section 
     2533b of this title.
       ``(c) Meetings.--The Board shall meet as determined 
     necessary by the Secretary of Defense but not less frequently 
     than once every two years to make recommendations regarding 
     materials critical to national security as described in 
     subsection (b)(5).
       ``(d) Reports.--After each meeting of the Board, the Board 
     shall prepare and submit to Congress a report containing the 
     results of the meeting and such recommendations as the Board 
     determines appropriate.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:
``187. Strategic Materials Protection Board.''.

       (c) First Meeting of Board.--The first meeting of the 
     Strategic Materials Protection Board, established by section 
     187 of title 10, United States Code (as added by subsection 
     (a)) shall be not later than 180 days after the date of the 
     enactment of this Act.
                       Subtitle E--Other Matters

     SEC. 851. REPORT ON FORMER DEPARTMENT OF DEFENSE OFFICIALS 
                   EMPLOYED BY CONTRACTORS OF THE DEPARTMENT OF 
                   DEFENSE.

       (a) Report Required.--Not later than December 1, 2007, the 
     Comptroller General shall submit to the Committees on Armed 
     Services of the Senate and House of Representatives a report 
     on the employment of former officials of the Department of 
     Defense by major defense contractors during the most recent 
     calendar year for which, in the judgment of the Comptroller 
     General, data are reasonably available. The report shall 
     assess the extent to which former officials of the Department 
     of Defense who served in acquisition-related positions were 
     provided compensation by major defense contractors during 
     such calendar year.
       (b) Objectives of Report.--The objectives of the report 
     required by subsection (a) shall be to determine the 
     effectiveness of existing statutes and regulations governing 
     the employment of former Department of Defense officials by 
     defense contractors, including section 207 of title 18, 
     United States Code, and section 27 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 423). At a minimum, the 
     report shall assess the extent to which such former officials 
     who receive compensation from defense contractors have been 
     assigned by those contractors to work on--
       (1) Department of Defense contracts or programs for which 
     such former officials personally had program oversight 
     responsibility or decision-making authority when they served 
     in the Department of Defense; or

[[Page 20820]]

       (2) Department of Defense contracts or programs which are 
     the responsibility of the agency, office, or command in which 
     such former officials served in the Department of Defense.
       (c) Confidentiality Requirement.--The report required by 
     subsection (a) shall not include the names of specific former 
     Department of Defense officials who receive compensation from 
     defense contractors or information from which such 
     individuals could be identified.
       (d) Access to Information.--In accordance with the contract 
     clause required pursuant to section 2313(c) of title 10, 
     United States Code, a major defense contractor shall provide 
     the Comptroller General access to information requested by 
     the Comptroller General for the purpose of this review 
     regarding former officials of the Department of Defense who 
     have received compensation from the contractor during the 
     relevant calendar year.
       (e) Definitions.--In this section:
       (1) Major defense contractor.--The term ``major defense 
     contractor'' includes any company that received more than 
     $500,000,000 in contract awards from the Department of 
     Defense in fiscal year 2005.
       (2) Former department of defense official.--The term 
     ``former Department of Defense official'' means either of the 
     following:
       (A) A former Department of Defense employee.
       (B) A former or retired member of the Armed Forces.

     SEC. 852. REPORT AND REGULATIONS ON EXCESSIVE PASS-THROUGH 
                   CHARGES.

       (a) Comptroller General Report on Excessive Pass-Through 
     Charges.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, the Comptroller General shall 
     issue a report on pass-through charges on contracts or 
     subcontracts (or task or delivery orders) that are entered 
     into for or on behalf of the Department of Defense.
       (2) Matters covered.--The report issued under this 
     subsection--
       (A) shall assess the extent to which the Department of 
     Defense has paid excessive pass-through charges to 
     contractors who provided little or no value to the 
     performance of the contract;
       (B) shall assess the extent to which the Department has 
     been particularly vulnerable to excessive pass-through 
     charges on any specific category of contracts or by any 
     specific category of contractors (including any category of 
     small business); and
       (C) shall determine the extent to which any prohibition on 
     excessive pass-through charges would be inconsistent with 
     existing commercial practices for any specific category of 
     contracts or have an unjustified adverse effect on any 
     specific category of contractors (including any category of 
     small business).
       (b) Regulations Required.--
       (1) In general.--Not later than May 1, 2007, the Secretary 
     of Defense shall prescribe regulations to ensure that pass-
     through charges on contracts or subcontracts (or task or 
     delivery orders) that are entered into for or on behalf of 
     the Department of Defense are not excessive in relation to 
     the cost of work performed by the relevant contractor or 
     subcontractor.
       (2) Scope of regulations.--The regulations prescribed under 
     this subsection--
       (A) shall not apply to any firm, fixed-price contract or 
     subcontract (or task or delivery order) that is--
       (i) awarded on the basis of adequate price competition; or
       (ii) for the acquisition of a commercial item, as defined 
     in section 4(12) of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 403(12)); and
       (B) may include such additional exceptions as the Secretary 
     determines to be necessary in the interest of the national 
     defense.
       (3) Definition.--In this section, the term ``excessive 
     pass-through charge'', with respect to a contractor or 
     subcontractor that adds no, or negligible, value to a 
     contract or subcontract, means a charge to the Government by 
     the contractor or subcontractor that is for overhead or 
     profit on work performed by a lower-tier contractor or 
     subcontractor (other than charges for the direct costs of 
     managing lower-tier contracts and subcontracts and overhead 
     and profit based on such direct costs).
       (4) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the congressional defense committees a report on the steps 
     taken to implement the requirements of this subsection, 
     including--
       (A) any standards for determining when no, or negligible, 
     value has been added to a contract by a contractor or 
     subcontractor;
       (B) any procedures established for preventing excessive 
     pass-through charges; and
       (C) any exceptions determined by the Secretary to be 
     necessary in the interest of the national defense.
       (5) Effective date.--The regulations prescribed under this 
     subsection shall apply to contracts awarded for or on behalf 
     of the Department of Defense on or after May 1, 2007.

     SEC. 853. PROGRAM MANAGER EMPOWERMENT AND ACCOUNTABILITY.

       (a) Strategy.--The Secretary of Defense shall develop a 
     comprehensive strategy for enhancing the role of Department 
     of Defense program managers in developing and carrying out 
     defense acquisition programs.
       (b) Matters to Be Addressed.--The strategy required by this 
     section shall address, at a minimum--
       (1) enhanced training and educational opportunities for 
     program managers;
       (2) increased emphasis on the mentoring of current and 
     future program managers by experienced senior executives and 
     program managers within the Department;
       (3) improved career paths and career opportunities for 
     program managers;
       (4) additional incentives for the recruitment and retention 
     of highly qualified individuals to serve as program managers;
       (5) improved resources and support (including systems 
     engineering expertise, cost estimating expertise, and 
     software development expertise) for program managers;
       (6) improved means of collecting and disseminating best 
     practices and lessons learned to enhance program management 
     throughout the Department;
       (7) common templates and tools to support improved data 
     gathering and analysis for program management and oversight 
     purposes;
       (8) increased accountability of program managers for the 
     results of defense acquisition programs; and
       (9) enhanced monetary and nonmonetary awards for successful 
     accomplishment of program objectives by program managers.
       (c) Guidance on Tenure and Accountability of Program 
     Managers Before Milestone B.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall revise Department of Defense guidance for major 
     defense acquisition programs to address the qualifications, 
     resources, responsibilities, tenure, and accountability of 
     program managers for the program development period (before 
     Milestone B approval (or Key Decision Point B approval in the 
     case of a space program)).
       (d) Guidance on Tenure and Accountability of Program 
     Managers After Milestone B.--Not later than 180 days after 
     the date of enactment of this Act, the Secretary of Defense 
     shall revise Department of Defense guidance for major defense 
     acquisition programs to address the qualifications, 
     resources, responsibilities, tenure and accountability of 
     program managers for the program execution period (from 
     Milestone B approval (or Key Decision Point B approval in the 
     case of a space program) until the delivery of the first 
     production units of a program). The guidance issued pursuant 
     to this subsection shall address, at a minimum--
       (1) the need for a performance agreement between a program 
     manager and the milestone decision authority for the program, 
     setting forth expected parameters for cost, schedule, and 
     performance, and appropriate commitments by the program 
     manager and the milestone decision authority to ensure that 
     such parameters are met;
       (2) authorities available to the program manager, 
     including, to the extent appropriate, the authority to object 
     to the addition of new program requirements that would be 
     inconsistent with the parameters established at Milestone B 
     (or Key Decision Point B in the case of a space program) and 
     reflected in the performance agreement; and
       (3) the extent to which a program manager for such period 
     should continue in the position without interruption until 
     the delivery of the first production units of the program.
       (e) Reports.--
       (1) Report by secretary of defense.--Not later than 270 
     days after the date of enactment of this Act, the Secretary 
     of Defense shall submit to the congressional defense 
     committees a report on the strategy developed pursuant to 
     subsection (a) and the guidance issued pursuant to 
     subsections (b) and (c).
       (2) Report by comptroller general.--Not later than one year 
     after the date of enactment of this Act, the Comptroller 
     General shall submit to the congressional defense committees 
     a report on the actions taken by the Secretary of Defense to 
     implement the requirements of this section.

     SEC. 854. JOINT POLICIES ON REQUIREMENTS DEFINITION, 
                   CONTINGENCY PROGRAM MANAGEMENT, AND CONTINGENCY 
                   CONTRACTING.

       (a) In General.--
       (1) Joint policy requirement.--Chapter 137 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2333. Joint policies on requirements definition, 
       contingency program management, and contingency contracting

       ``(a) Joint Policy Requirement.--The Secretary of Defense, 
     in consultation with the Chairman of the Joint Chiefs of 
     Staff, shall develop joint policies for requirements 
     definition, contingency program management, and contingency 
     contracting during combat operations and post-conflict 
     operations.
       ``(b) Requirements Definition Matters Covered.--The joint 
     policy for requirements definition required by subsection (a) 
     shall, at a minimum, provide for the following:
       ``(1) The assignment of a senior commissioned officer or 
     civilian member of the senior executive service, with 
     appropriate experience and qualifications related to the 
     definition of requirements to be satisfied through 
     acquisition contracts (such as for delivery of products or 
     services, performance of work, or accomplishment of a 
     project), to act as head of requirements definition and 
     coordination during combat operations, post-conflict 
     operations, and contingency operations, if required, 
     including leading a requirements review board involving all 
     organizations concerned.
       ``(2) An organizational approach to requirements definition 
     and coordination during combat operations, post-conflict 
     operations, and contingency operations that is designed to 
     ensure that requirements are defined in a way that 
     effectively implements United States Government and 
     Department of Defense objectives,

[[Page 20821]]

     policies, and decisions regarding the allocation of 
     resources, coordination of interagency efforts in the theater 
     of operations, and alignment of requirements with the proper 
     use of funds.
       ``(c) Contingency Program Management Matters Covered.--The 
     joint policy for contingency program management required by 
     subsection (a) shall, at a minimum, provide for the 
     following:
       ``(1) The assignment of a senior commissioned officer or 
     civilian member of the senior executive service, with 
     appropriate program management experience and qualifications, 
     to act as head of program management during combat 
     operations, post-conflict operations, and contingency 
     operations, including stabilization and reconstruction 
     operations involving multiple United States Government 
     agencies and international organizations, if required.
       ``(2) A preplanned organizational approach to program 
     management during combat operations, post-conflict 
     operations, and contingency operations that is designed to 
     ensure that the Department of Defense is prepared to conduct 
     such program management.
       ``(3) Identification of a deployable cadre of experts, with 
     the appropriate tools and authority, and trained in processes 
     under paragraph (6).
       ``(4) Utilization of the hiring and appointment authorities 
     necessary for the rapid deployment of personnel to ensure the 
     availability of key personnel for sufficient lengths of time 
     to provide for continuing program and project management.
       ``(5) A requirement to provide training (including training 
     under a program to be created by the Defense Acquisition 
     University) to program management personnel in--
       ``(A) the use of laws, regulations, policies, and 
     directives related to program management in combat or 
     contingency environments;
       ``(B) the integration of cost, schedule, and performance 
     objectives into practical acquisition strategies aligned with 
     available resources and subject to effective oversight; and
       ``(C) procedures of the Department of Defense related to 
     funding mechanisms and contingency contract management.
       ``(6) Appropriate steps to ensure that training is 
     maintained for such personnel even when they are not deployed 
     in a contingency operation.
       ``(7) Such steps as may be needed to ensure jointness and 
     cross-service coordination in the area of program management 
     during contingency operations.
       ``(d) Contingency Contracting Matters Covered.--(1) The 
     joint policy for contingency contracting required by 
     subsection (a) shall, at a minimum, provide for the 
     following:
       ``(A) The designation of a senior commissioned officer or 
     civilian member of the senior executive service in each 
     military department with the responsibility for administering 
     the policy.
       ``(B) The assignment of a senior commissioned officer with 
     appropriate acquisition experience and qualifications to act 
     as head of contingency contracting during combat operations, 
     post-conflict operations, and contingency operations, who 
     shall report directly to the commander of the combatant 
     command in whose area of responsibility the operations occur.
       ``(C) A sourcing approach to contingency contracting that 
     is designed to ensure that each military department is 
     prepared to conduct contingency contracting during combat 
     operations, post-conflict operations, and contingency 
     operations, including stabilization and reconstruction 
     operations involving interagency organizations, if required.
       ``(D) A requirement to provide training (including training 
     under a program to be created by the Defense Acquisition 
     University) to contingency contracting personnel in--
       ``(i) the use of law, regulations, policies, and directives 
     related to contingency contracting operations;
       ``(ii) the appropriate use of rapid acquisition methods, 
     including the use of exceptions to competition requirements 
     under section 2304 of this title, sealed bidding, letter 
     contracts, indefinite delivery indefinite quantity task 
     orders, set asides under section 8(a) of the Small Business 
     Act (15 U.S.C. 637(a)), undefinitized contract actions, and 
     other tools available to expedite the delivery of goods and 
     services during combat operations or post-conflict 
     operations;
       ``(iii) the appropriate use of rapid acquisition authority, 
     commanders' emergency response program funds, and other tools 
     unique to contingency contracting; and
       ``(iv) instruction on the necessity for the prompt 
     transition from the use of rapid acquisition authority to the 
     use of full and open competition and other methods of 
     contracting that maximize transparency in the acquisition 
     process.
       ``(E) Appropriate steps to ensure that training is 
     maintained for such personnel even when they are not deployed 
     in a contingency operation.
       ``(F) Such steps as may be needed to ensure jointness and 
     cross-service coordination in the area of contingency 
     contracting.
       ``(2) To the extent practicable, the joint policy for 
     contingency contracting required by subsection (a) should be 
     taken into account in the development of interagency plans 
     for stabilization and reconstruction operations, consistent 
     with the report submitted by the President under section 1035 
     of this Act on interagency operating procedures for the 
     planning and conduct of stabilization and reconstruction 
     operations.
       ``(e) Definitions.--In this section:
       ``(1) Contingency contracting personnel.--The term 
     `contingency contracting personnel' means members of the 
     armed forces and civilian employees of the Department of 
     Defense who are members of the defense acquisition workforce 
     and, as part of their duties, are assigned to provide support 
     to contingency operations (whether deployed or not).
       ``(2) Contingency contracting.--The term `contingency 
     contracting' means all stages of the process of acquiring 
     property or services by the Department of Defense during a 
     contingency operation.
       ``(3) Contingency operation.--The term `contingency 
     operation' has the meaning provided in section 101(13) of 
     this title.
       ``(4) Acquisition support agencies.--The term `acquisition 
     support agencies' means Defense Agencies and Department of 
     Defense Field Activities that carry out and provide support 
     for acquisition-related activities.
       ``(5) Contingency program management.--The term 
     `contingency program management' means the process of 
     planning, organizing, staffing, controlling, and leading the 
     combined efforts of participating civilian and military 
     personnel and organizations for the management of a specific 
     defense acquisition program or programs during combat 
     operations, post-conflict operations, and contingency 
     operations.
       ``(6) Requirements definition.--The term `requirements 
     definition' means the process of translating policy 
     objectives and mission needs into specific requirements, the 
     description of which will be the basis for awarding 
     acquisition contracts for projects to be accomplished, work 
     to be performed, or products to be delivered.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2333. Joint policies on requirements definition, contingency 
              contracting, and program management.''.

       (b) Deadline for Development of Joint Policies.--The 
     Secretary of Defense shall develop the joint policies 
     required under section 2333 of title 10, United States Code, 
     as added by subsection (a), not later than 18 months after 
     the date of enactment of this Act.
       (c) Reports.--
       (1) Interim report.--
       (A) Requirement.--Not later than 365 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     submit to the Committees on Armed Services of the Senate and 
     the House of Representatives an interim report on 
     requirements definition, contingency contracting, and program 
     management.
       (B) Matters covered.--The report shall include discussions 
     of the following:
       (i) Progress in the development of the joint policies under 
     section 2333 of title 10, United States Code.
       (ii) The ability of the Armed Forces to support 
     requirements definition, contingency contracting, and program 
     management.
       (iii) The ability of commanders of combatant commands to 
     request requirements definition, contingency contracting, or 
     program management support, and the ability of the military 
     departments and the acquisition support agencies to respond 
     to such requests and provide such support, including the 
     availability of rapid acquisition personnel for such support.
       (iv) The ability of the current civilian and military 
     acquisition workforce to deploy to combat theaters of 
     operations and to conduct requirements definition, 
     contingency contracting, or program management activities 
     during combat and during post-conflict, reconstruction, or 
     other contingency operations.
       (v) The effect of different periods of deployment on 
     continuity in the acquisition process.
       (2) Final report.--Not later than 18 months after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     submit to the committees referred to in paragraph (1)(A) a 
     final report on requirements definition, contingency 
     contracting, and program management, containing a discussion 
     of the implementation of the joint policies developed under 
     section 2333 of title 10, United States Code (as so added), 
     including updated discussions of the matters covered in the 
     interim report. In addition, the report should include a 
     discussion of the actions taken to ensure that the joint 
     policies will be adequately resourced at the time of 
     execution.

     SEC. 855. CLARIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   PROTOTYPE PROJECTS.

       Section 845(a) of the National Defense Authorization Act 
     for Fiscal Year 1994 (10 U.S.C. 2371 note) is amended--
       (1) in paragraph (2)(A), by inserting ``or, for the Defense 
     Advanced Projects Agency or the Missile Defense Agency, the 
     director of the agency'' after ``(41 U.S.C. 414(c))''; and
       (2) in paragraph (3), by inserting ``or director of the 
     Defense Advanced Projects Agency or Missile Defense Agency'' 
     after ``executive''.

     SEC. 856. CONTRACTING WITH EMPLOYERS OF PERSONS WITH 
                   DISABILITIES.

       (a) Inapplicability of Certain Laws.--
       (1) Inapplicability of the randolph-sheppard act to 
     contracts and subcontracts for military dining facility 
     support services covered by javits-wagner-o'day act.--The 
     Randolph-Sheppard Act (20 U.S.C. 107 et seq.) does not apply 
     to full food services, mess attendant services, or services 
     supporting the operation of a military dining facility that, 
     as of the date of the enactment of this Act, were services on 
     the procurement list established under section 2 of the 
     Javits-Wagner-O'Day Act (41 U.S.C. 47).
       (2) Inapplicability of the javits-wagner-o'day act to 
     contracts for the operation of

[[Page 20822]]

     a military dining facility.--(A) The Javits-Wagner-O'Day Act 
     (41 U.S.C. 46 et seq.) does not apply at the prime contract 
     level to any contract entered into by the Department of 
     Defense as of the date of the enactment of this Act with a 
     State licensing agency under the Randolph-Sheppard Act (20 
     U.S.C. 107 et seq.) for the operation of a military dining 
     facility.
       (B) The Javits-Wagner-O'Day Act shall apply to any 
     subcontract entered into by a Department of Defense 
     contractor for full food services, mess attendant services, 
     and other services supporting the operation of a military 
     dining facility.
       (3) Repeal of superseded law.--Subsections (a) and (b) of 
     section 853 of the Ronald W. Reagan National Defense 
     Authorization Act for Fiscal Year 2005 (Public Law 108-375; 
     118 Stat. 2021) are repealed.
       (b) Review and Report by Comptroller General of Randolph-
     Sheppard and Javits-Wagner-O'Day Contracts.--
       (1) In general.--The Comptroller General shall conduct a 
     review of a representative sample of food service contracts 
     described in paragraph (2) and determine in writing the 
     following:
       (A) Differences in operational procedures and 
     administration of contracts awarded by the Department of 
     Defense under the Randolph-Sheppard Act (20 U.S.C. 107 et 
     seq.) and the Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.) 
     on a State-by-State basis with regard to the relationship 
     between State licensing agencies and blind vendors.
       (B) Differences in competition, source selection, and 
     management processes and procedures for contracts awarded by 
     the Department under the Randolph-Sheppard Act and the 
     Javits-Wagner-O'Day Act, including a review of the average 
     total cost of contract awards and compensation packages to 
     all beneficiaries.
       (C) Precise methods used to determine whether a price is 
     fair and reasonable under contracts awarded by the Department 
     under the Randolph-Sheppard Act and the Javits-Wagner-O'Day 
     Act, as required under the Federal Acquisition Regulation and 
     the Defense Federal Acquisition Regulation Supplement.
       (2) Contracts covered.--For purposes of the review under 
     paragraph (1), a food service contract described in this 
     paragraph is a contract--
       (A) for full food services, mess attendant services, or 
     services supporting the operation of all or any part of a 
     military dining facility;
       (B) that was awarded under either the Randolph-Sheppard Act 
     or the Javits-Wagner-O'Day Act; and
       (C) that is in effect on the date of the enactment of this 
     Act.
       (3) Report.--Not later than March 1, 2007, the Comptroller 
     General shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a report on the 
     review conducted under this subsection, with such findings 
     and recommendations as the Comptroller General considers 
     appropriate.
       (c) Requirements for Inspectors General of Department of 
     Defense and Department of Education.--
       (1) Review of management procedures.--Not later than March 
     1, 2007, the Inspector General of the Department of Defense 
     and the Inspector General of the Department of Education 
     shall jointly review the management procedures under both the 
     Randolph-Sheppard Act (20 U.S.C. 107 et seq.) and the Javits-
     Wagner-O'Day Act (41 U.S.C. 46 et seq.). In carrying out this 
     paragraph, the Inspectors General shall each have access to 
     the following:
       (A) Memoranda on program management and the basis for 
     contract award under the programs.
       (B) Guidance sent to State agencies on administration of 
     the programs.
       (C) Names of participating vendors, as well as qualifying 
     experience and educational background of such vendors.
       (2) Memorandum of understanding between inspectors 
     general.--Not later than 60 days after the date of the 
     enactment of this Act, the Inspector General of the 
     Department of Defense and the Inspector General of the 
     Department of Education shall enter into a memorandum of 
     understanding with each other to carry out paragraph (1).
       (3) Report.--Not later than one year after the date of 
     enactment of this Act, the Inspector General of the 
     Department of Defense and the Inspector General of the 
     Department of Education shall jointly submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives a report on the review required by paragraph 
     (1). The report shall include--
       (A) findings of the Inspectors General regarding the 
     management procedures reviewed; and
       (B) such other information and recommendations as the 
     Inspectors General consider appropriate.
       (d) Definitions.--In this section:
       (1) The term ``State licensing agency'' means any agency 
     designated by the Secretary of Education under section 
     2(a)(5) of the Randolph-Sheppard Act (20 U.S.C. 107a(a)(5)).
       (2) The term ``military dining facility'' means a facility 
     owned, operated, leased, or wholly controlled by the 
     Department of Defense and used to provide dining services to 
     members of the Armed Forces, including a cafeteria, military 
     mess hall, military troop dining facility, or any similar 
     dining facility operated for the purpose of providing meals 
     to members of the Armed Forces.

     SEC. 857. ENHANCED ACCESS FOR SMALL BUSINESS.

       Section 9(a) of the Contract Disputes Act of 1978 (41 
     U.S.C. 608) is amended by striking the period at the end of 
     the first sentence and inserting the following: ``or, in the 
     case of a small business concern (as defined in the Small 
     Business Act and regulations under that Act), $150,000 or 
     less.''.

     SEC. 858. PROCUREMENT GOAL FOR HISPANIC-SERVING INSTITUTIONS.

       Section 2323 of title 10, United States Code, is amended--
       (1) in subsection (a)(1)--
       (A) by striking ``and'' at the end of subparagraph (B);
       (B) by striking the period at the end of subparagraph (C) 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(D) Hispanic-serving institutions (as defined in section 
     502(a) of the Higher Education Act of 1965 (20 U.S.C. 
     1101a(a)).'';
       (2) in subsection (a)(2)--
       (A) by inserting after ``historically Black colleges and 
     universities'' the following: ``, Hispanic-serving 
     institutions,''; and
       (B) by inserting after ``such colleges and universities'' 
     the following: ``and institutions'';
       (3) in subsection (c)(1), by inserting after ``historically 
     Black colleges and universities'' the following: ``, 
     Hispanic-serving institutions,''; and
       (4) in subsection (c)(3), by inserting after ``historically 
     Black colleges and universities'' the following: ``, to 
     Hispanic-serving institutions,''.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Increase in authorized number of Assistant Secretaries of 
              Defense.
Sec. 902. Modifications to the Combatant Commander Initiative Fund.
Sec. 903. Addition to membership of specified council.
Sec. 904. Consolidation and standardization of authorities relating to 
              Department of Defense Regional Centers for Security 
              Studies.
Sec. 905. Oversight by Office of Under Secretary of Defense for 
              Acquisition, Technology, and Logistics of exercise of 
              acquisition authority by combatant commanders and heads 
              of Defense Agencies.
Sec. 906. Standardization of statutory references to ``national 
              security system'' within laws applicable to Department of 
              Defense.
Sec. 907. Correction of reference to predecessor of Defense Information 
              Systems Agency.

                      Subtitle B--Space Activities

Sec. 911. Designation of successor organizations for the disestablished 
              Interagency Global Positioning Executive Board.
Sec. 912.  Extension of authority for pilot program for provision of 
              space surveillance network services to non-United States 
              Government entities.
Sec. 913. Operationally responsive space.
Sec. 914. Independent review and assessment of Department of Defense 
              organization and management for national security in 
              space.

             Subtitle C--Chemical Demilitarization Program

Sec. 921. Sense of Congress on completion of destruction of United 
              States chemical weapons stockpile.
Sec. 922. Comptroller General review of cost-benefit analysis of off-
              site versus on-site treatment and disposal of hydrolysate 
              derived from neutralization of VX nerve gas at Newport 
              Chemical Depot, Indiana.
Sec. 923. Incentives clauses in chemical demilitarization contracts.
Sec. 924. Chemical demilitarization program contracting authority.

                Subtitle D--Intelligence-Related Matters

Sec. 931. Four-year extension of authority of Secretary of Defense to 
              engage in commercial activities as security for 
              intelligence collection activities.
Sec. 932. Annual reports on intelligence oversight activities of the 
              Department of Defense.
Sec. 933. Collection by National Security Agency of service charges for 
              certification or validation of information assurance 
              products.

                       Subtitle E--Other Matters

Sec. 941. Department of Defense policy on unmanned systems.
Sec. 942. Executive Schedule level IV for Deputy Under Secretary of 
              Defense for Logistics and Materiel Readiness.
Sec. 943. Study and report on reform of Defense Travel System.
Sec. 944. Administration of pilot project on Civilian Linguist Reserve 
              Corps.
Sec. 945. Improvement of authorities on the National Security Education 
              Program.
Sec. 946. Report on the posture of United States Special Operations 
              Command to conduct the global war on terrorism.

[[Page 20823]]


              Subtitle A--Department of Defense Management

     SEC. 901. INCREASE IN AUTHORIZED NUMBER OF ASSISTANT 
                   SECRETARIES OF DEFENSE.

       (a) Increase.--Section 138(a) of title 10, United States 
     Code, is amended by striking ``nine'' and inserting ``ten''.
       (b) Conforming Amendment.--Section 5315 of title 5, United 
     States Code, is amended by striking ``(9)'' after ``Assistant 
     Secretaries of Defense'' and inserting ``(10)''.

     SEC. 902. MODIFICATIONS TO THE COMBATANT COMMANDER INITIATIVE 
                   FUND.

       (a) Addition to Authorized Activities.--Subsection (b)(6) 
     of section 166a of title 10, United States Code is amended by 
     striking ``civil assistance'' and inserting ``civic 
     assistance, to include urgent and unanticipated humanitarian 
     relief and reconstruction assistance''.
       (b) Additional Priority Consideration.--Subsection (c) of 
     such section 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) the provision of funds to be used for urgent and 
     unanticipated humanitarian relief and reconstruction 
     assistance, particularly in a foreign country where the armed 
     forces are engaged in a contingency operation.''.

     SEC. 903. ADDITION TO MEMBERSHIP OF SPECIFIED COUNCIL.

       Section 179(a) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(5) The commander of the United States Strategic 
     Command.''.

     SEC. 904. CONSOLIDATION AND STANDARDIZATION OF AUTHORITIES 
                   RELATING TO DEPARTMENT OF DEFENSE REGIONAL 
                   CENTERS FOR SECURITY STUDIES.

       (a) Basic Authorities for Regional Centers.--
       (1) In general.--Section 184 of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 184. Regional Centers for Security Studies

       ``(a) In General.--The Secretary of Defense shall 
     administer the Department of Defense Regional Centers for 
     Security Studies in accordance with this section as 
     international venues for bilateral and multilateral research, 
     communication, and exchange of ideas involving military and 
     civilian participants.
       ``(b) Regional Centers Specified.--(1) A Department of 
     Defense Regional Center for Security Studies is a Department 
     of Defense institution that--
       ``(A) is operated, and designated as such, by the Secretary 
     of Defense for the study of security issues relating to a 
     specified geographic region of the world; and
       ``(B) serves as a forum for bilateral and multilateral 
     research, communication, and exchange of ideas involving 
     military and civilian participants.
       ``(2) The Department of Defense Regional Centers for 
     Security Studies are the following:
       ``(A) The George C. Marshall European Center for Security 
     Studies, established in 1993 and located in Garmisch-
     Partenkirchen, Germany.
       ``(B) The Asia-Pacific Center for Security Studies, 
     established in 1995 and located in Honolulu, Hawaii.
       ``(C) The Center for Hemispheric Defense Studies, 
     established in 1997 and located in Washington, D.C.
       ``(D) The Africa Center for Strategic Studies, established 
     in 1999 and located in Washington, D.C.
       ``(E) The Near East South Asia Center for Strategic 
     Studies, established in 2000 and located in Washington, D.C.
       ``(3) No institution or element of the Department of 
     Defense may be designated as a Department of Defense Regional 
     Center for Security Studies for purposes of this section, 
     other than the institutions specified in paragraph (2), 
     except as specifically provided by law after the date of the 
     enactment of this section.
       ``(c) Regulations.--The administration of the Regional 
     Centers under this section shall be carried out under 
     regulations prescribed by the Secretary.
       ``(d) Participation.--Participants in activities of the 
     Regional Centers may include United States and foreign 
     military, civilian, and nongovernmental personnel.
       ``(e) Employment and Compensation of Faculty.--At each 
     Regional Center, the Secretary may, subject to the 
     availability of appropriations--
       ``(1) employ a Director, a Deputy Director, and as many 
     civilians as professors, instructors, and lecturers as the 
     Secretary considers necessary; and
       ``(2) prescribe the compensation of such persons, in 
     accordance with Federal guidelines.
       ``(f) Payment of Costs.--(1) Participation in activities of 
     a Regional Center shall be on a reimbursable basis (or by 
     payment in advance), except in a case in which reimbursement 
     is waived in accordance with paragraph (3).
       ``(2) For a foreign national participant, payment of costs 
     may be made by the participant, the participant's own 
     government, by a Department or agency of the United States 
     other than the Department of Defense, or by a gift or 
     donation on behalf of one or more Regional Centers accepted 
     under section 2611 of this title on behalf of the 
     participant's government.
       ``(3) The Secretary of Defense may waive reimbursement of 
     the costs of activities of the Regional Centers for foreign 
     military officers and foreign defense and security civilian 
     government officials from a developing country if the 
     Secretary determines that attendance of such personnel 
     without reimbursement is in the national security interest of 
     the United States. Costs for which reimbursement is waived 
     pursuant to this paragraph shall be paid from appropriations 
     available to the Regional Centers.
       ``(4) Funds accepted for the payment of costs shall be 
     credited to the appropriation then currently available to the 
     Department of Defense for the Regional Center that incurred 
     the costs. Funds so credited shall be merged with the 
     appropriation to which credited and shall be available to 
     that Regional Center for the same purposes and same period as 
     the appropriation with which merged.
       ``(5) Funds available for the payment of personnel expenses 
     under the Latin American cooperation authority set forth in 
     section 1050 of this title are also available for the costs 
     of the operation of the Center for Hemispheric Defense 
     Studies.
       ``(g) Support to Other Agencies.--The Director of a 
     Regional Center may enter into agreements with the 
     Secretaries of the military departments, the heads of the 
     Defense Agencies, and, with the concurrence of the Secretary 
     of Defense, the heads of other Federal departments and 
     agencies for the provision of services by that Regional 
     Center under this section. Any such participating department 
     and agency shall transfer to the Regional Center funds to pay 
     the full costs of the services received.
       ``(h) Annual Report.--Not later than February 1 of each 
     year, the Secretary of Defense shall submit to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report on the 
     operation of the Regional Centers for security studies during 
     the preceding fiscal year. The annual report shall include, 
     for each Regional Center, the following information:
       ``(1) The status and objectives of the center.
       ``(2) The budget of the center, including the costs of 
     operating the center.
       ``(3) A description of the extent of the international 
     participation in the programs of the center, including the 
     costs incurred by the United States for the participation of 
     each foreign nation.
       ``(4) A description of the foreign gifts and donations, if 
     any, accepted under section 2611 of this title.''.
       (2) Clerical amendment.--The item relating to such section 
     in the table of sections at the beginning of chapter 7 of 
     such title is amended to read as follows:

``184. Regional Centers for Security Studies.''.

       (b) Conforming Amendments.--
       (1) Employment and compensation authority for civilian 
     faculty.--Section 1595 of title 10, United States Code, is 
     amended--
       (A) in subsection (c)--
       (i) by striking paragraphs (3) and (5); and
       (ii) by redesignating paragraphs (4) and (6) as paragraphs 
     (3) and (4), respectively; and
       (B) by striking subsection (e).
       (2) Status of center for hemispheric defense studies.--
     Section 2165 of title 10, United States Code, is amended--
       (A) in subsection (b)--
       (i) by striking paragraph (6); and
       (ii) by redesignating paragraph (7) as paragraph (6); and
       (B) by striking subsection (c).

     SEC. 905. OVERSIGHT BY OFFICE OF UNDER SECRETARY OF DEFENSE 
                   FOR ACQUISITION, TECHNOLOGY, AND LOGISTICS OF 
                   EXERCISE OF ACQUISITION AUTHORITY BY COMBATANT 
                   COMMANDERS AND HEADS OF DEFENSE AGENCIES.

       (a) Designation of Official for Oversight.--The Secretary 
     of Defense shall designate a senior acquisition official 
     within the Office of the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics to oversee the 
     exercise of acquisition authority by--
       (1) any commander of a combatant command who is authorized 
     by section 166b, 167, or 167a of title 10, United States 
     Code, to exercise acquisition authority; and
       (2) any head of a Defense Agency who is designated by the 
     Secretary of Defense to exercise acquisition authority.
       (b) Guidance.--
       (1) In general.--The senior acquisition official designated 
     under subsection (a) shall develop guidance to ensure that 
     the use of acquisition authority by commanders of combatant 
     commands and the heads of Defense Agencies--
       (A) is in compliance with department-wide acquisition 
     policy; and
       (B) is coordinated with and mutually supportive of 
     acquisition programs of the military departments.
       (2) Urgent requirements.--Guidance developed under 
     paragraph (1) shall take into account the need to fulfill the 
     urgent requirements of the commanders of combatant commands 
     and the heads of Defense Agencies and to ensure that those 
     requirements are addressed expeditiously.
       (c) Consultation.--The senior acquisition official 
     designated under subsection (a) shall on a regular basis 
     consult on matters related to requirements and acquisition 
     with the commanders of combatant commands and the heads of 
     Defense Agencies referred to in that subsection.
       (d) Deadline for Designation.--The Secretary of Defense 
     shall make the designation required by subsection (a) not 
     later than 180 days after the date of the enactment of this 
     Act.

[[Page 20824]]



     SEC. 906. STANDARDIZATION OF STATUTORY REFERENCES TO 
                   ``NATIONAL SECURITY SYSTEM'' WITHIN LAWS 
                   APPLICABLE TO DEPARTMENT OF DEFENSE.

       (a) Defense Business Systems.--Section 2222(j)(6) of title 
     10, United States Code, is amended by striking ``in section 
     2315 of this title'' and inserting ``in section 3542(b)(2) of 
     title 44''.
       (b) Chief Information Officer Responsibilities.--Section 
     2223(c)(3) of such title is amended by striking ``section 
     11103 of title 40'' and inserting ``section 3542(b)(2) of 
     title 44''.
       (c) Procurement of Automatic Data Processing Equipment and 
     Services.--The text of section 2315 of such title is amended 
     to read as follows:
       ``For purposes of subtitle III of title 40, the term 
     `national security system', with respect to a 
     telecommunications and information system operated by the 
     Department of Defense, has the meaning given that term by 
     section 3542(b)(2) of title 44.''.

     SEC. 907. CORRECTION OF REFERENCE TO PREDECESSOR OF DEFENSE 
                   INFORMATION SYSTEMS AGENCY.

       Paragraph (1) of section 193(f) of title 10, United States 
     Code, is amended to read as follows:
       ``(1) The Defense Information Systems Agency.''.
                      Subtitle B--Space Activities

     SEC. 911. DESIGNATION OF SUCCESSOR ORGANIZATIONS FOR THE 
                   DISESTABLISHED INTERAGENCY GLOBAL POSITIONING 
                   EXECUTIVE BOARD.

       (a) Successor Organizations.--Section 8 of the Commercial 
     Space Transportation Competitiveness Act of 2000 (10 U.S.C. 
     2281 note) is amended by striking ``by Congress'' and all 
     that follows and inserting ``for the functions and activities 
     of the following organizations established pursuant to the 
     United States Space-Based Position, Navigation, and Timing 
     Policy issued December 8, 2004 (and any successor 
     organization, to the extent the successor organization 
     performs the functions of the specified organization):
       ``(1) The interagency committee known as the National 
     Space-Based Positioning, Navigation, and Timing Executive 
     Committee.
       ``(2) The support office for the committee specified in 
     paragraph (1) known as the National Space-Based Positioning, 
     Navigation, and Timing Coordination Office.
       ``(3) The Federal advisory committee known as the National 
     Space-Based Positioning, Navigation, and Timing Advisory 
     Board.''.
       (b) Clarification.--Such section is further amended by 
     striking ``interagency funding'' and inserting ``multi-agency 
     funding''.

     SEC. 912. EXTENSION OF AUTHORITY FOR PILOT PROGRAM FOR 
                   PROVISION OF SPACE SURVEILLANCE NETWORK 
                   SERVICES TO NON-UNITED STATES GOVERNMENT 
                   ENTITIES.

       Section 2274(i) of title 10, United States Code, is amended 
     by striking ``shall be conducted'' and all that follows and 
     inserting ``may be conducted through September 30, 2009.''.

     SEC. 913. OPERATIONALLY RESPONSIVE SPACE.

       (a) United States Policy on Operationally Responsive 
     Space.--It is the policy of the United States to demonstrate, 
     acquire, and deploy an effective capability for operationally 
     responsive space to support military users and operations 
     from space, which shall consist of--
       (1) responsive satellite payloads and busses built to 
     common technical standards;
       (2) low-cost space launch vehicles and supporting range 
     operations that facilitate the timely launch and on-orbit 
     operations of satellites;
       (3) responsive command and control capabilities; and
       (4) concepts of operations, tactics, techniques, and 
     procedures that permit the use of responsive space assets for 
     combat and military operations other than war.
       (b) Operationally Responsive Space Program Office.--
       (1) Establishment of office.--Section 2273a of title 10, 
     United States Code, is amended to read as follows:

     ``Sec. 2273a. Operationally Responsive Space Program Office

       ``(a) Establishment.--The Secretary of Defense shall 
     establish within the Department of Defense an office to be 
     known as the Operationally Responsive Space Program Office 
     (in this section referred to as the `Office').
       ``(b) Head of Office.--The head of the Office shall be--
       ``(1) the Department of Defense Executive Agent for Space; 
     or
       ``(2) the designee of the Secretary of Defense, who shall 
     report to the Department of Defense Executive Agent for 
     Space.
       ``(c) Mission.--The mission of the Office shall be--
       ``(1) to contribute to the development of low-cost, rapid 
     reaction payloads, busses, spacelift, and launch control 
     capabilities in order to fulfill joint military operational 
     requirements for on-demand space support and reconstitution; 
     and
       ``(2) to coordinate and execute operationally responsive 
     space efforts across the Department of Defense with respect 
     to planning, acquisition, and operations.
       ``(d) Elements.--The Secretary of Defense shall select the 
     elements of the Department of Defense to be included in the 
     Office so as to contribute to the development of capabilities 
     for operationally responsive space and to achieve a balanced 
     representation of the military departments in the Office to 
     ensure proper acknowledgment of joint considerations in the 
     activities of the Office, except that the Office shall 
     include the following:
       ``(1) A science and technology element that shall pursue 
     innovative approaches to the development of capabilities for 
     operationally responsive space through basic and applied 
     research focused on (but not limited to) payloads, bus, and 
     launch equipment.
       ``(2) An acquisition element that shall undertake the 
     acquisition of systems necessary to integrate, sustain, and 
     launch assets for operationally responsive space.
       ``(3) An operations element that shall--
       ``(A) sustain and maintain assets for operationally 
     responsive space prior to launch;
       ``(B) integrate and launch such assets; and
       ``(C) operate such assets in orbit.
       ``(4) A combatant command support element that shall serve 
     as the primary intermediary between the military departments 
     and the combatant commands in order to--
       ``(A) ascertain the needs of the commanders of the 
     combatant commands; and
       ``(B) integrate operationally responsive space capabilities 
     into--
       ``(i) operations plans of the combatant commands;
       ``(ii) techniques, tactics, and procedures of the military 
     departments; and
       ``(iii) military exercises, demonstrations, and war games.
       ``(5) Such other elements as the Secretary of Defense may 
     consider necessary.
       ``(e) Acquisition Authority.--The acquisition activities of 
     the Office shall be subject to the following:
       ``(1) The Department of Defense Executive Agent for Space 
     shall be the senior acquisition executive of the Office.
       ``(2) The Joint Capabilities Integration and Development 
     System process shall not apply to acquisitions by the Office 
     for operational experimentation.
       ``(3) The commander of the United States Strategic Command, 
     or the designee of the commander, shall--
       ``(A) validate all system requirements for systems to be 
     acquired by the Office; and
       ``(B) participate in the approval of any acquisition 
     program initiated by the Office.
       ``(4) To the maximum extent practicable, the procurement 
     unit cost of a launch vehicle procured by the Office for 
     launch to low earth orbit should not exceed $20,000,000 (in 
     constant dollars).
       ``(5) To the maximum extent practicable, the procurement 
     unit cost of an integrated satellite procured by the Office 
     should not exceed $40,000,000 (in constant dollars).
       ``(f) Required Program Element.--(1) The Secretary of 
     Defense shall ensure that, within budget program elements for 
     space programs of the Department of Defense, that--
       ``(A) there is a separate, dedicated program element for 
     operationally responsive space;
       ``(B) to the extent applicable, relevant program elements 
     should be consolidated into the program element required by 
     subparagraph (A); and
       ``(C) the Office executes its responsibilities through this 
     program element.
       ``(2) The Office shall manage the program element required 
     by paragraph (1)(A).''.
       (2) Clerical amendment.--The item relating to that section 
     in the table of sections at the beginning of chapter 135 of 
     such title is amended to read as follows:

``2273a. Operationally Responsive Space Program Office.''.

       (c) Plan for Operationally Responsive Space.--
       (1) Plan 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 
     setting forth a plan for the acquisition by the Department of 
     Defense of capabilities for operationally responsive space to 
     support military users and military operations.
       (2) Elements.--The plan required by paragraph (1) shall 
     include the following:
       (A) An identification of the roles and missions of each 
     military department, Defense Agency, and other component or 
     element of the Department of Defense for the fulfillment of 
     the mission of the Department with respect to operationally 
     responsive space.
       (B) An identification of the capabilities required by the 
     Department to fulfill such mission during the period covered 
     by the current future-years defense program submitted to 
     Congress pursuant to section 221 of title 10, United States 
     Code, and an additional 10-year period.
       (C) A description of the chain of command and reporting 
     structure of the Operationally Responsive Space Program 
     Office established under section 2273a of title 10, United 
     States Code, as amended by subsection (b).
       (D) A description of the classification of information 
     required for the Operationally Responsive Space Program 
     Office in order to ensure that the Office carries out its 
     responsibilities under such section 2273a in a proper and 
     efficient manner.
       (E) A description of the acquisition policies and 
     procedures applicable to the Operationally Responsive Space 
     Program Office, including a description of any legislative or 
     administrative action necessary to provide the Office 
     additional acquisition authority to carry out its 
     responsibilities.
       (F) A schedule for the implementation of the plan and the 
     establishment of the Operationally Responsive Space Program 
     Office.
       (G) The funding and personnel required to implement the 
     plan over the course of the current future-years defense 
     program.

[[Page 20825]]

       (H) A description of any additional authorities and 
     programmatic, organizational, or other changes necessary to 
     ensure that the Operationally Responsive Space Program Office 
     can successfully carry out its responsibilities.
       (d) Repeal of Superseded Law.--Section 913 of the National 
     Defense Authorization Act for Fiscal Year 2006 (Public Law 
     109-163; 119 Stat. 3408; 10 U.S.C. 2273a note) is repealed.

     SEC. 914. INDEPENDENT REVIEW AND ASSESSMENT OF DEPARTMENT OF 
                   DEFENSE ORGANIZATION AND MANAGEMENT FOR 
                   NATIONAL SECURITY IN SPACE.

       (a) Independent Review and Assessment Required.--The 
     Secretary of Defense shall select an appropriate entity 
     outside the Department of Defense to conduct an independent 
     review and assessment of the organization and management of 
     the Department of Defense for national security in space. In 
     selecting the entity to conduct the review and assessment, 
     the Secretary shall consult with the chairman and ranking 
     minority member of the Committee on Armed Services of the 
     Senate and the chairman and ranking minority member of the 
     Committee on Armed Services of the House of Representatives.
       (b) Elements.--The review and assessment required by this 
     section shall address the following:
       (1) The requirements of the Department of Defense for 
     national security space capabilities, as identified by the 
     Department, and the efforts of the Department to fulfill such 
     requirements.
       (2) The actions that could be taken by the Department to 
     modify the organization and management of the Department over 
     the near-term, medium-term, and long-term in order to 
     strengthen United States national security in space, and the 
     ability of the Department to implement its requirements and 
     carry out the future space missions, including the following:
       (A) Actions to improve or enhance current interagency 
     coordination processes regarding the operation of national 
     security space assets, including improvements or enhancements 
     in interoperability and communications.
       (B) Actions to improve or enhance the relationship between 
     the intelligence aspects of national security space (so-
     called ``black space'') and the non-intelligence aspects of 
     national security space (so-called ``white space'').
       (C) Actions to improve or enhance the manner in which 
     military space issues are addressed by professional military 
     education institutions.
       (D) Actions to create a specialized career field for 
     military space acquisition personnel, to include an emphasis 
     on long-term assignments, that could help develop and 
     maintain a professional space acquisition cadre with 
     technical expertise and institutional knowledge.
       (c) Liaison.--The Secretary of Defense shall designate at 
     least one senior civilian employee of the Department of 
     Defense, and at least one general or flag officer, to serve 
     as liaison between the Department, the Armed Forces, and the 
     entity conducting the review and assessment under this 
     section.
       (d) Report.--Not later than one year after the date of the 
     enactment of this Act, the entity conducting the review and 
     assessment under this section shall submit to the Secretary 
     of Defense and the congressional defense committees a report 
     containing--
       (1) the results of the review and assessment; and
       (2) recommendations on the best means by which the 
     Department may improve its organization and management for 
     national security in space.
             Subtitle C--Chemical Demilitarization Program

     SEC. 921. SENSE OF CONGRESS ON COMPLETION OF DESTRUCTION OF 
                   UNITED STATES CHEMICAL WEAPONS STOCKPILE.

       (a) Findings.--Congress makes the following findings:
       (1) The Convention on the Prohibition of the Development, 
     Production, Stockpiling and Use of Chemical Weapons and on 
     Their Destruction, done at Paris on January 13, 1993 
     (commonly referred to as the ``Chemical Weapons 
     Convention''), requires that destruction of the entire United 
     States chemical weapons stockpile be completed by no later 
     than the extended deadline of April 29, 2012.
       (2) On April 10, 2006, the Department of Defense notified 
     Congress that the United States would not meet even the 
     extended deadline under the Chemical Weapons Convention for 
     destruction of the United States chemical weapons stockpile.
       (3) Destroying existing chemical weapons is a homeland 
     security imperative and an arms control priority and is 
     required by United States law.
       (4) The elimination and nonproliferation of chemical 
     weapons of mass destruction is of utmost importance to the 
     national security of the United States.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the United States is committed to making every effort 
     to safely dispose of its entire chemical weapons stockpile by 
     the Chemical Weapons Convention extended deadline of April 
     29, 2012, or as soon thereafter as possible, and will carry 
     out all of its other obligations under that Convention;
       (2) to prevent further delays in completing the destruction 
     of the United States chemical weapons stockpile, the 
     Secretary of Defense should prepare a comprehensive schedule 
     for the safe destruction of such stockpile and should 
     annually submit that schedule (as currently in effect) to the 
     congressional defense committees, either separately or as 
     part of another required report, until such destruction is 
     completed;
       (3) the Secretary of Defense should make every effort to 
     ensure adequate funding to complete the elimination of the 
     United States chemical weapons stockpile in the shortest time 
     possible, consistent with the requirement to protect public 
     health, safety, and the environment; and
       (4) when selecting a site for the treatment or disposal of 
     neutralized chemical agent at a location remote from the 
     location where the agent is stored, the Secretary of Defense 
     should propose a credible process that seeks to gain the 
     support of affected communities.

     SEC. 922. COMPTROLLER GENERAL REVIEW OF COST-BENEFIT ANALYSIS 
                   OF OFF-SITE VERSUS ON-SITE TREATMENT AND 
                   DISPOSAL OF HYDROLYSATE DERIVED FROM 
                   NEUTRALIZATION OF VX NERVE GAS AT NEWPORT 
                   CHEMICAL DEPOT, INDIANA.

       (a) Review Required.--Not later than December 1, 2006, the 
     Comptroller General shall submit to Congress a report 
     containing a review of the cost-benefit analysis prepared by 
     the Secretary of the Army entitled ``Cost-Benefit Analysis of 
     Off-Site Versus On-Site Treatment and Disposal of Newport 
     Caustic Hydrolysate'' and dated April 24, 2006.
       (b) Content of Review.--In conducting the review under 
     subsection (a), the Comptroller General shall consider and 
     assess at a minimum the following matters:
       (1) The adequacy of the rationale contained in the cost-
     benefit analysis referred to in subsection (a) in dismissing 
     five of the eight technologies for hydrolysate treatment 
     directed for consideration on page 116 of the Report of the 
     Committee on Armed Services of the House of Representatives 
     on H.R. 1815 (House Report 109-89).
       (2) The rationale for the failure of the Secretary of the 
     Army to consider other technical solutions, such as 
     constructing a wastewater disposal system at the Newport 
     Chemical Depot.
       (3) The adequacy of the cost-benefit analysis presented for 
     the three technologies considered.
       (c) Limitation on Transport Pending Report.--The Secretary 
     of the Army may not transport neutralized bulk nerve agent 
     (other than those small quantities necessary for laboratory 
     evaluation of the disposal process) from the Newport Chemical 
     Depot to the State of New Jersey until the earlier of--
       (1) the end of the 60-day period beginning on the date on 
     which the report required by subsection (a) is submitted; or
       (2) February 1, 2007.

     SEC. 923. INCENTIVES CLAUSES IN CHEMICAL DEMILITARIZATION 
                   CONTRACTS.

       (a) In General.--
       (1) Authority to include clauses in contracts.--The 
     Secretary of Defense may, for the purpose specified in 
     paragraph (2), authorize the inclusion of an incentives 
     clause in any contract for the destruction of the United 
     States stockpile of lethal chemical agents and munitions 
     carried out pursuant to section 1412 of the Department of 
     Defense Authorization Act, 1986 (50 U.S.C. 1521).
       (2) Purpose.--The purpose of a clause referred to in 
     paragraph (1) is to provide the contractor for a chemical 
     demilitarization facility an incentive to accelerate the safe 
     elimination of the United States chemical weapons stockpile 
     and to reduce the total cost of the Chemical Demilitarization 
     Program by providing incentive payments for the early 
     completion of destruction operations and the closure of such 
     facility.
       (b) Incentives Clauses.--
       (1) In general.--An incentives clause under this section 
     shall permit the contractor for the chemical demilitarization 
     facility concerned the opportunity to earn incentive payments 
     for the completion of destruction operations and facility 
     closure activities within target incentive ranges specified 
     in such clause.
       (2) Limitation on incentive payments.--The maximum 
     incentive payment under an incentives clause with respect to 
     a chemical demilitarization facility may not exceed amounts 
     as follows:
       (A) In the case of an incentive payment for the completion 
     of destruction operations within the target incentive range 
     specified in such clause, $110,000,000.
       (B) In the case of an incentive payment for the completion 
     of facility closure activities within the target incentive 
     range specified in such clause, $55,000,000.
       (3) Target ranges.--An incentives clause in a contract 
     under this section shall specify the target incentive ranges 
     of costs for completion of destruction operations and 
     facility closure activities, respectively, as jointly agreed 
     upon by the contracting officer and the contractor concerned. 
     An incentives clause shall require a proportionate reduction 
     in the maximum incentive payment amounts in the event that 
     the contractor exceeds an agreed-upon target cost if such 
     excess costs are the responsibility of the contractor.
       (4) Calculation of incentive payments.--The amount of the 
     incentive payment earned by a contractor for a chemical 
     demilitarization facility under an incentives clause under 
     this section shall be based upon a determination by the 
     Secretary on how early in the target incentive range 
     specified in such clause destruction operations or facility 
     closure activities, as the case may be, are completed.
       (5) Consistency with existing obligations.--The provisions 
     of any incentives clause

[[Page 20826]]

     under this section shall be consistent with the obligation of 
     the Secretary of Defense under section 1412(c)(1)(A) of the 
     Department of Defense Authorization Act, 1986, to provide for 
     maximum protection for the environment, the general public, 
     and the personnel who are involved in the destruction of the 
     lethal chemical agents and munitions.
       (6) Additional terms and conditions.--In negotiating the 
     inclusion of an incentives clause in a contract under this 
     section, the Secretary may include in such clause such 
     additional terms and conditions as the Secretary considers 
     appropriate.
       (c) Additional Limitation on Payments.--
       (1) Payment conditional on performance.--No payment may be 
     made under an incentives clause under this section unless the 
     Secretary determines that the contractor concerned has 
     satisfactorily performed its duties under such incentives 
     clause.
       (2) Payment contingent on appropriations.--An incentives 
     clause under this section shall specify that the obligation 
     of the Government to make payment under such incentives 
     clause is subject to the availability of appropriations for 
     that purpose. Amounts appropriated for Chemical Agents and 
     Munitions Destruction, Defense, shall be available for 
     payments under incentives clauses under this section.

     SEC. 924. CHEMICAL DEMILITARIZATION PROGRAM CONTRACTING 
                   AUTHORITY.

       (a) Multiyear Contracting Authority.--The Secretary of 
     Defense may carry out responsibilities under section 1412(a) 
     of the Department of Defense Authorization Act, 1986 (50 
     U.S.C. 1521(a)) through multiyear contracts entered into 
     before the date of the enactment of this Act.
       (b) Availability of Funds.--Contracts entered into under 
     subsection (a) shall be funded through annual appropriations 
     for the destruction of chemical agents and munitions.
                Subtitle D--Intelligence-Related Matters

     SEC. 931. FOUR-YEAR EXTENSION OF AUTHORITY OF SECRETARY OF 
                   DEFENSE TO ENGAGE IN COMMERCIAL ACTIVITIES AS 
                   SECURITY FOR INTELLIGENCE COLLECTION 
                   ACTIVITIES.

       Section 431(a) of title 10, United States Code, is amended 
     by striking ``December 31, 2006'' and inserting ``December 
     31, 2010''.

     SEC. 932. ANNUAL REPORTS ON INTELLIGENCE OVERSIGHT ACTIVITIES 
                   OF THE DEPARTMENT OF DEFENSE.

       (a) In General.--Subchapter I of chapter 21 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 427. Intelligence oversight activities of Department 
       of Defense: annual reports

       ``(a) Annual Reports Required.--(1) Not later than March 1 
     of each year, the Secretary of Defense shall submit--
       ``(A) to the congressional committees specified in 
     subparagraph (A) of paragraph (2) a report on the 
     intelligence oversight activities of the Department of 
     Defense during the previous calendar year insofar as such 
     oversight activities relate to tactical intelligence and 
     intelligence-related activities of the Department; and
       ``(B) to the congressional committees specified in 
     subparagraph (B) of paragraph (2) a report on the 
     intelligence oversight activities of the Department of 
     Defense during the previous calendar year insofar as such 
     oversight activities relate to intelligence and intelligence-
     related activities of the Department other than those 
     specified in subparagraph (A).
       ``(2)(A) The committees specified in this subparagraph are 
     the following:
       ``(i) The Committee on Armed Services and the Committee on 
     Appropriations of the Senate.
       ``(ii) The Permanent Select Committee on Intelligence, the 
     Committee on Armed Services, and the Committee on 
     Appropriations of the House of Representatives.
       ``(B) The committees specified in this subparagraph are the 
     following:
       ``(i) The Select Committee on Intelligence, the Committee 
     on Armed Services, and the Committee on Appropriations of the 
     Senate.
       ``(ii) The Permanent Select Committee on Intelligence and 
     the Committee on Appropriations of the House of 
     Representatives.
       ``(b) Elements.--Each report under subsection (a) shall 
     include, for the calendar year covered by such report and 
     with respect to oversight activities subject to coverage in 
     that report, the following:
       ``(1) A description of any violation of law or of any 
     Executive order or Presidential directive (including 
     Executive order No. 12333) that comes to the attention of any 
     General Counsel or Inspector General within the Department of 
     Defense, or the Under Secretary of Defense for Intelligence, 
     and a description of the actions taken by such official with 
     respect to such activity.
       ``(2) A description of the results of intelligence 
     oversight inspections undertaken by each of the following:
       ``(A) The Office of the Secretary of Defense.
       ``(B) Each military department.
       ``(C) Each combat support agency.
       ``(D) Each field operating agency.
       ``(3) A description of any changes made in any program for 
     the intelligence oversight activities of the Department of 
     Defense, including any training program.
       ``(4) A description of any changes made in any published 
     directive or policy memoranda on the intelligence or 
     intelligence-related activities of--
       ``(A) any military department;
       ``(B) any combat support agency; or
       ``(C) any field operating agency.
       ``(c) Definitions.--In this section:
       ``(1) The term `intelligence oversight activities of the 
     Department of Defense' refers to any activity undertaken by 
     an agency, element, or component of the Department of Defense 
     to ensure compliance with regard to requirements or 
     instructions on the intelligence and intelligence-related 
     activities of the Department under law or any Executive order 
     or Presidential directive (including Executive Order No. 
     12333).
       ``(2) The term `combat support agency' has the meaning 
     given that term in section 193(f) of this title.
       ``(3) The term `field operating agency' means a specialized 
     subdivision of the Department of Defense that carries out 
     activities under the operational control of the 
     Department.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such subchapter is amended by adding at the end 
     the following new item:

``427. Intelligence oversight activities of Department of Defense: 
              annual reports.''.

     SEC. 933. COLLECTION BY NATIONAL SECURITY AGENCY OF SERVICE 
                   CHARGES FOR CERTIFICATION OR VALIDATION OF 
                   INFORMATION ASSURANCE PRODUCTS.

       The National Security Agency Act of 1959 (50 U.S.C. 402 
     note) is amended by adding at the end the following new 
     section:
       ``Sec. 20. (a) The Director may collect charges for 
     evaluating, certifying, or validating information assurance 
     products under the National Information Assurance Program or 
     successor program.
       ``(b) The charges collected under subsection (a) shall be 
     established through a public rulemaking process in accordance 
     with Office of Management and Budget Circular No. A-25.
       ``(c) Charges collected under subsection (a) shall not 
     exceed the direct costs of the program referred to in that 
     subsection.
       ``(d) The appropriation or fund bearing the cost of the 
     service for which charges are collected under the program 
     referred to in subsection (a) may be reimbursed, or the 
     Director may require advance payment subject to such 
     adjustment on completion of the work as may be agreed upon.
       ``(e) Amounts collected under this section shall be 
     credited to the account or accounts from which costs 
     associated with such amounts have been or will be incurred, 
     to reimburse or offset the direct costs of the program 
     referred to in subsection (a).''.
                       Subtitle E--Other Matters

     SEC. 941. DEPARTMENT OF DEFENSE POLICY ON UNMANNED SYSTEMS.

       (a) Policy Required.--The Secretary of Defense shall 
     develop a policy, to be applicable throughout the Department 
     of Defense, on research, development, test and evaluation, 
     procurement, and operation of unmanned systems.
       (b) Elements.--The policy required by subsection (a) shall 
     include or address the following:
       (1) An identification of missions and mission requirements, 
     including mission requirements for the military departments 
     and joint mission requirements, for which unmanned systems 
     may replace manned systems.
       (2) A preference for unmanned systems in acquisition 
     programs for new systems, including a requirement under any 
     such program for the development of a manned system for a 
     certification that an unmanned system is incapable of meeting 
     program requirements.
       (3) An assessment of the circumstances under which it would 
     be appropriate to pursue joint development and procurement of 
     unmanned systems and components of unmanned systems.
       (4) The transition of unmanned systems unique to one 
     military department to joint systems, when appropriate.
       (5) An organizational structure for effective management, 
     coordination, and budgeting for the development and 
     procurement of unmanned systems, including an assessment of 
     the feasibility and advisability of designating a single 
     department or other element of the Department of Defense to 
     act as executive agent for the Department on unmanned 
     systems.
       (6) The integration of unmanned and manned systems to 
     enhance support of the missions identified in paragraph (1).
       (7) Such other matters that the Secretary of Defense 
     considers to be appropriate.
       (c) Consultation.--The Secretary of Defense shall develop 
     the policy required by subsection (a) in consultation with 
     the Chairman of the Joint Chiefs of Staff.
       (d) 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 containing--
       (1) the policy required by subsection (a); and
       (2) an implementation plan for the policy that includes--
       (A) a strategy and schedules for the replacement of manned 
     systems with unmanned systems in the performance of the 
     missions identified in the policy pursuant to subsection 
     (b)(1);
       (B) establishment of programs to address technical, 
     operational, and production challenges, and gaps in 
     capabilities, with respect to unmanned systems; and
       (C) an assessment of progress towards meeting the goals 
     identified for the subset of unmanned air and ground systems 
     established in section 220 of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 (as enacted 
     into law by Public Law 106-398; 114 Stat. 1654A-38) .
       (e) Unmanned Systems Defined.--In this section, the term 
     ``unmanned systems'' consists of unmanned aerial systems, 
     unmanned ground systems, and unmanned maritime systems.

[[Page 20827]]



     SEC. 942. EXECUTIVE SCHEDULE LEVEL IV FOR DEPUTY UNDER 
                   SECRETARY OF DEFENSE FOR LOGISTICS AND MATERIEL 
                   READINESS.

       (a) Executive Schedule Level IV.--Section 5315 of title 5, 
     United States Code, is amended by inserting after the item 
     relating to the Deputy Under Secretary of Defense for 
     Personnel and Readiness the following new item:
       ``Deputy Under Secretary of Defense for Logistics and 
     Materiel Readiness.''.
       (b) Conforming Amendment.--Section 5314 of title 5, United 
     States Code, is amended by striking the item relating to the 
     Deputy Under Secretary of Defense for Logistics and Materiel 
     Readiness.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act, 
     and shall apply with respect to individuals appointed as 
     Deputy Under Secretary of Defense for Logistics and Materiel 
     Readiness on or after that date.

     SEC. 943. STUDY AND REPORT ON REFORM OF DEFENSE TRAVEL 
                   SYSTEM.

       (a) Independent Study of System.--
       (1) Study required.--Not later than 180 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     submit to the congressional defense committees the results 
     and recommendations of an independent study of the Defense 
     Travel System conducted to determine the most cost-effect 
     method of meeting Department of Defense travel requirements. 
     The study shall be conducted by an entity outside the 
     Department of Defense.
       (2) Elements of study.--At a minimum, the study required by 
     this subsection shall address the following:
       (A) The feasibility of separating the financial 
     infrastructure of the Defense Travel System, including 
     voucher processing, accounting, disbursing, debt collection, 
     management accountability, and archival functions, from the 
     travel reservation process.
       (B) The feasibility of converting the travel reservation 
     process to a fee-for-services system or authorizing the use 
     of multiple travel reservation processes, all of which 
     processes would use the financial infrastructure of the 
     Defense Travel System.
       (C) The feasibility of making the use of the financial 
     infrastructure of the Defense Travel System mandatory for all 
     Department of Defense travel transactions.
       (b) Implementation Plans.--Not later than 60 days after the 
     Secretary of Defense receives the independent study required 
     by subsection (a), the Secretary shall submit to the 
     congressional defense committees a report describing the 
     actions, if any, that the Secretary intends to take to 
     implement the recommendations contained in the study. If the 
     Secretary does not intend to implement any of the 
     recommendations, the Secretary shall explain the basis for 
     this decision.
       (c) Conditions on New Contract or Expenditures for Defense 
     Travel System.--Except to continue operations to provide 
     current services and to perform the functions described in 
     paragraphs (1) through (3), the Secretary of Defense may not 
     initiate a new contract for the Defense Travel System or 
     expend funds for the Defense Travel System until each of the 
     following occurs:
       (1) The Secretary submits the report required by subsection 
     (b).
       (2) The Secretary develops firm, fixed requirements for the 
     Defense Travel System.
       (3) The Secretary develops a schedule to phase out the 
     legacy travel systems made redundant by implementation of the 
     Defense Travel System.

     SEC. 944. ADMINISTRATION OF PILOT PROJECT ON CIVILIAN 
                   LINGUIST RESERVE CORPS.

       (a) Transfer of Administration to Secretary of Defense.--
       (1) In general.--Administration of the pilot project on the 
     establishment of a Civilian Linguist Reserve Corps required 
     by section 613 of the Intelligence Authorization Act for 
     Fiscal Year 2005 (Public Law 108-487; 118 Stat. 3959; 50 
     U.S.C. 403-1b note) is hereby transferred from the Director 
     of National Intelligence to the Secretary of Defense.
       (2) Conforming amendments.--Section 613 of the Intelligence 
     Authorization Act for Fiscal Year 2005 is amended--
       (A) by striking ``Director of National Intelligence'' each 
     place it appears and inserting ``Secretary of Defense''; and
       (B) by striking ``Director'' each place it appears and 
     inserting ``Secretary''.
       (b) Coordination With Director of National Intelligence in 
     Administration.--Subsection (a) of such section is further 
     amended--
       (1) by inserting ``(1)'' after ``Pilot Project.--''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Secretary shall conduct the pilot project in 
     coordination with the Director of National Intelligence.''.
       (c) Discharge of Project Through National Security 
     Education Program.--Subsection (a) of such section is further 
     amended by adding at the end the following new paragraph:
       ``(3) The Secretary shall conduct the pilot project through 
     the National Security Education Program.''.
       (d) Duration of Project.--Subsection (c) of such section is 
     amended by striking ``three-year period'' and inserting 
     ``five-year period''.
       (e) Repeal of Superseded Authorization.--Such section is 
     further amended by striking subsection (f).

     SEC. 945. IMPROVEMENT OF AUTHORITIES ON THE NATIONAL SECURITY 
                   EDUCATION PROGRAM.

       (a) Expansion of Employment Creditable Under Service 
     Agreements.--Paragraph (2) of subsection (b) of section 802 
     of the David L. Boren National Security Education Act of 1991 
     (50 U.S.C. 1902) is amended to read as follows:
       ``(2)(A) will (in accordance with regulations prescribed by 
     the Secretary of Defense in coordination with the heads of 
     the other Federal departments and agencies concerned) begin 
     work not later than three years after the recipient's 
     completion of degree study during which scholarship 
     assistance was provided under the program--
       ``(i) for not less than one year in a position certified by 
     the Secretary of Defense, in coordination with the Director 
     of National Intelligence, the Secretary of Homeland Security, 
     and the Secretary of State (as appropriate), as contributing 
     to the national security of the United States in the 
     Department of Defense, any element of the intelligence 
     community, the Department of Homeland Security, or the 
     Department of State; or
       ``(ii) for not less than one year in a position in a 
     Federal agency or office that is identified by the Secretary 
     of Defense under subsection (g) as having national security 
     responsibilities if the recipient demonstrates to the 
     Secretary that no position is available in the departments 
     and agencies covered by clause (i); or
       ``(B) will (in accordance with such regulations) begin work 
     not later than two years after the recipient's completion or 
     termination of study for which fellowship assistance was 
     provided under the program--
       ``(i) for not less than one year in a position certified by 
     the Secretary of Defense, in coordination with the Director 
     of National Intelligence, the Secretary of Homeland Security, 
     and the Secretary of State (as appropriate), as contributing 
     to the national security of the United States in the 
     Department of Defense, any element of the intelligence 
     community, the Department of Homeland Security, or the 
     Department of State; or
       ``(ii) for not less than one year in a position in a 
     Federal agency or office that is identified by the Secretary 
     of Defense under subsection (g) as having national security 
     responsibilities if the recipient demonstrates to the 
     Secretary that no position is available in the departments 
     and agencies covered by clause (i); and''.
       (b) Temporary Employment and Retention of Certain 
     Participants.--Such section is further amended--
       (1) by redesignating subsections (h) and (i) as subsections 
     (i) and (j), respectively; and
       (2) by inserting after subsection (g) the following new 
     subsection (h):
       ``(h) Temporary Employment and Retention of Certain 
     Participants.--
       ``(1) In general.--The Secretary of Defense may--
       ``(A) appoint or retain a person provided scholarship or 
     fellowship assistance under the program in a position in the 
     Department of Defense on an interim basis during the period 
     of the person's pursuit of a degree under the program and for 
     a period not to exceed two years after completion of the 
     degree, but only if, in the case of the period after 
     completion of the degree, there is an active investigation to 
     provide security clearance to the person for an appropriate 
     permanent position in the Department of Defense under 
     subsection (b)(2); and
       ``(B) if there is no appropriate permanent position 
     available for the person after the end of the periods 
     described in subparagraph (A), separate the person from 
     employment with the Department without regard to any other 
     provision of law, in which event the service agreement of the 
     person under subsection (b) shall terminate.
       ``(2) Treatment of certain service.--The period of service 
     of a person covered by paragraph (1) in a position on an 
     interim basis under that paragraph shall, after completion of 
     the degree, be treated as a period of service for purposes of 
     satisfying the obligated service requirements of the person 
     under the service agreement of the person under subsection 
     (b).''.
       (c) Plan for Improving Program.--Not later than 90 days 
     after the date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a plan for improving the 
     recruitment, placement, and retention within the Department 
     of Defense of individuals who receive scholarships or 
     fellowships under the David L. Boren National Security 
     Education Act of 1991 (50 U.S.C. 1901 et seq.) in order to 
     facilitate the purposes of that Act in meeting the 
     requirements of the Department in acquiring individuals with 
     critical foreign language skills and individuals who are 
     regional experts.

     SEC. 946. REPORT ON THE POSTURE OF UNITED STATES SPECIAL 
                   OPERATIONS COMMAND TO CONDUCT THE GLOBAL WAR ON 
                   TERRORISM.

       (a) Findings.--Congress makes the following findings:
       (1) The 2006 Quadrennial Defense Review recommends an 
     increase in the size of the United States Special Operations 
     Command as a fundamental part of the efforts of the 
     Department of Defense to fight the global war on terrorism.
       (2) Special operations forces conducting all nine of their 
     statutory activities, as specified in section 167(j) of title 
     10, United States Code, play a crucial role in the global war 
     on terrorism, and the Department of Defense should take a 
     balanced approach to the expansion of the force structure of 
     that command to provide additional capability in both the 
     active and reserve components.

[[Page 20828]]

       (3) Special operations forces are engaged in operations 
     across the globe and in extreme and varied operational 
     environments which require specialized training to 
     successfully operate in those environments.
       (4) Due to the global and long-term nature of the global 
     war on terrorism, the Secretary of Defense should assess 
     whether the United States Special Operations Command has the 
     appropriate force structure and training focus required for 
     successful operations in the global war on terrorism.
       (b) Report on Posture of SOCOM to Conduct the Global War on 
     Terrorism.--Not later than six months after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the congressional defense committees a report assessing 
     the posture of the United States Special Operations Command 
     to conduct the global war on terrorism. The Secretary shall 
     include in the report the following:
       (1) The Secretary's assessment of whether the United States 
     Special Operations Command is appropriately manned, 
     resourced, and equipped to successfully meet the long-term 
     requirements of the global war on terrorism.
       (2) The Secretary's assessment whether the expansion of 
     that command as recommended in the 2006 Quadrennial Defense 
     Review provides an appropriate balance between active and 
     reserve component capabilities.
       (3) The Secretary's assessment of whether United States 
     Special Operations Command has sufficient Army Special Forces 
     to meet the 2006 Quadrennial Defense Review objective of 
     building allied and partner nation capacity through security 
     assistance and other training missions such as the Joint 
     Combined Exchange Training program.
       (4) A detailed statement of the efforts of the commander of 
     the United States Special Operations Command to provide 
     special operations forces personnel with specialized 
     environmental training in preparation for operations across 
     the globe and in extreme and varied operational environments 
     such as mountain, jungle, or desert environments.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. Authorization of additional emergency supplemental 
              appropriations for fiscal year 2006.
Sec. 1003. Reduction in certain authorizations due to savings relating 
              to lower inflation.
Sec. 1004. Increase in fiscal year 2006 general transfer authority.
Sec. 1005. United States contribution to NATO common-funded budgets in 
              fiscal year 2007.
Sec. 1006. Report on budgeting for fluctuations in fuel cost rates.
Sec. 1007. Modification of date of submittal of OMB/CBO report on 
              scoring of outlays.
Sec. 1008. Budgeting for ongoing military operations in Afghanistan and 
              Iraq.

          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Aircraft carrier force structure.
Sec. 1012. Sense of Congress on naming the CVN-78 aircraft carrier as 
              the U.S.S. Gerald R. Ford.
Sec. 1013. Transfer of naval vessels to foreign nations based upon 
              vessel class.
Sec. 1014. Overhaul, repair, and maintenance of vessels in foreign 
              shipyards.
Sec. 1015. Report on options for future lease arrangement for Guam 
              Shipyard.
Sec. 1016. Assessments of naval vessel construction efficiencies and of 
              effectiveness of special contractor incentives.
Sec. 1017. Obtaining carriage by vessel: criterion regarding overhaul, 
              repair, and maintenance of vessels in the United States.
Sec. 1018. Riding gang member requirements.
Sec. 1019. Authority to transfer SS Arthur M. Huddell to the Government 
              of Greece.

                  Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority of Department of Defense to provide 
              additional support for counterdrug activities of other 
              governmental agencies.
Sec. 1022. Extension and expansion of Department of Defense authority 
              to provide support for counter-drug activities of certain 
              foreign governments.
Sec. 1023. Extension of authority to support unified counterdrug and 
              counterterrorism campaign in Colombia.
Sec. 1024. Continuation of reporting requirement regarding Department 
              of Defense expenditures to support foreign counterdrug 
              activities.
Sec. 1025. Report on interagency counter-narcotics plan for Afghanistan 
              and South and Central Asian regions.
Sec. 1026. Report on United States support for Operation Bahamas, Turks 
              & Caicos.

         Subtitle D--Force Structure and Defense Policy Matters

Sec. 1031. Improvements to Quadrennial Defense Review.
Sec. 1032. Quarterly reports on implementation of 2006 Quadrennial 
              Defense Review Report.
Sec. 1033. Report on feasibility of establishing a regional combatant 
              command for Africa.
Sec. 1034. Determination of Department of Defense intratheater and 
              intertheater airlift requirements and sealift mobility 
              requirements.
Sec. 1035. Presidential report on improving interagency support for 
              United States 21st century national security missions and 
              interagency operations in support of stability, security, 
              transition, and reconstruction operations.

                          Subtitle E--Reports

Sec. 1041. Additional element in annual report on chemical and 
              biological warfare defense.
Sec. 1042. Report on biodefense human capital requirements in support 
              of biosafety laboratories.
Sec. 1043. Report on technologies for neutralizing or defeating threats 
              to military rotary-wing aircraft from portable air 
              defense systems and rocket-propelled grenades.
Sec. 1044. Reports on expanded use of unmanned aerial vehicles in the 
              National Airspace System.
Sec. 1045. Report on incentives to encourage certain members and former 
              members of the Armed Forces to serve in the Bureau of 
              Customs and Border Protection.
Sec. 1046. Repeal of certain report requirements.
Sec. 1047. Requirement for identification of recently enacted recurring 
              reporting requirements applicable to the Department of 
              Defense.

 Subtitle F--Miscellaneous Authorities and Limitations on Availability 
                            and Use of Funds

Sec. 1051. Acceptance and retention of reimbursement from non-Federal 
              sources to defray Department of Defense costs of 
              conferences.
Sec. 1052. Increased flexibility in use of funds for Joint Staff 
              exercises.
Sec. 1053. Prohibition on parking of funds.
Sec. 1054. Modification of authorities relating to the Special 
              Inspector General for Iraq Reconstruction.

                Subtitle G--Matters Involving Detainees

Sec. 1061. Provision of information to Congress on certain criminal 
              investigations and prosecutions involving detainees.

                       Subtitle H--Other Matters

Sec. 1071. Technical and clerical amendments.
Sec. 1072. Revision to authorities relating to Commission on the 
              Implementation of the New Strategic Posture of the United 
              States.
Sec. 1073. Revised deadline for submission of final report of EMP 
              Commission.
Sec. 1074. Extension of returning worker exemption to H-2B numerical 
              limitation.
Sec. 1075. Patent term extensions for the badges of the American 
              Legion, the American Legion Women's Auxiliary, and the 
              Sons of the American Legion.
Sec. 1076. Use of the Armed Forces in major public emergencies.
Sec. 1077. Increased hunting and fishing opportunities for members of 
              the Armed Forces, retired members, and disabled veterans.
                     Subtitle A--Financial Matters

     SEC. 1001. GENERAL TRANSFER AUTHORITY.

       (a) Authority to Transfer Authorizations.--
       (1) Authority.--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 2007 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) Limitation.--The total amount of authorizations that 
     the Secretary may transfer under the authority of this 
     section may not exceed $4,500,000,000.
       (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. AUTHORIZATION OF ADDITIONAL EMERGENCY SUPPLEMENTAL 
                   APPROPRIATIONS FOR FISCAL YEAR 2006.

       (a) Iraq, Afghanistan, and the Global War on Terror.--
     Amounts authorized to be appropriated to the Department of 
     Defense for fiscal year 2006 in the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163) 
     are hereby adjusted, with respect to any such authorized 
     amount, by the amount by which appropriations pursuant to 
     such authorization are increased by a supplemental 
     appropriation, or decreased by a rescission, or both, or are 
     increased by a transfer of funds, pursuant to title

[[Page 20829]]

     I of the Emergency Supplemental Appropriations Act for 
     Defense, the Global War on Terror, and Hurricane Recovery, 
     2006 (Public Law 109-234).
       (b) Hurricane Disaster Relief and Recovery.--Amounts 
     authorized to be appropriated to the Department of Defense 
     for fiscal year 2006 in the National Defense Authorization 
     Act for Fiscal Year 2006 are hereby adjusted, with respect to 
     any such authorized amount, by the amount by which 
     appropriations pursuant to such authorization are increased 
     by a supplemental appropriation, or decreased by a 
     rescission, or both, or are increased by a transfer of funds, 
     pursuant to title II of the Emergency Supplemental 
     Appropriations Act for Defense, the Global War on Terror, and 
     Hurricane Recovery, 2006.
       (c) Border Security.--Amounts authorized to be appropriated 
     to the Department of Defense for fiscal year 2006 in the 
     National Defense Authorization Act for Fiscal Year 2006 are 
     hereby adjusted, with respect to any such authorized amount, 
     by the amount by which appropriations pursuant to such 
     authorization are increased by a supplemental appropriation, 
     or decreased by a rescission, or both, or are increased by a 
     transfer of funds, pursuant to title V of the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006.

     SEC. 1003. REDUCTION IN CERTAIN AUTHORIZATIONS DUE TO SAVINGS 
                   RELATING TO LOWER INFLATION.

       (a) Reduction.--The aggregate amount authorized to be 
     appropriated by titles I, II, and III is the amount equal to 
     the sum of all the amounts authorized to be appropriated by 
     such titles reduced by $757,051,000.
       (b) Source of Savings.--Reductions required in order to 
     comply with subsection (a) shall be derived from savings 
     resulting from lower-than-expected inflation as a result of a 
     review of the inflation assumptions used in the preparation 
     of the budget of the President for fiscal year 2007, as 
     submitted to Congress pursuant to section 1005 of title 31, 
     United States Code.
       (c) Allocation of Reduction.--The Secretary of Defense 
     shall allocate the reduction required by subsection (a) among 
     the amounts authorized to be appropriated for accounts in 
     titles I, II, and III to reflect the extent to which net 
     savings from lower-than-expected inflation are allocable to 
     amounts authorized to be appropriated to such accounts.

     SEC. 1004. INCREASE IN FISCAL YEAR 2006 GENERAL TRANSFER 
                   AUTHORITY.

       Section 1001(a)(2) of the National Defense Authorization 
     Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3418) 
     is amended by striking ``$3,500,000,000'' and inserting 
     ``$5,000,000,000''.

     SEC. 1005. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED 
                   BUDGETS IN FISCAL YEAR 2007.

       (a) Fiscal Year 2007 Limitation.--The total amount 
     contributed by the Secretary of Defense in fiscal year 2007 
     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 2006, of funds appropriated for fiscal years 
     before fiscal year 2007 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), $797,000 for 
     the Civil Budget.
       (2) Of the amount provided in section 301(1), $310,277,000 
     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. REPORT ON BUDGETING FOR FLUCTUATIONS IN FUEL COST 
                   RATES.

       (a) Secretary of Defense Report.--
       (1) Report on budgeting for fuel cost fluctuations.--Not 
     later than February 15, 2007, the Secretary of Defense shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on Armed Services of the House of 
     Representatives a report on the fuel rate and cost projection 
     used in the annual Department of Defense budget presentation.
       (2) Matters to be included.--In the report under paragraph 
     (1), the Secretary shall--
       (A) identify alternative approaches for selecting fuel 
     rates that would produce more realistic estimates of amounts 
     required to be appropriated or otherwise made available for 
     the Department of Defense to accommodate fuel rate 
     fluctuations;
       (B) discuss the advantages and disadvantages of each 
     approach identified pursuant to subparagraph (A); and
       (C) identify the Secretary's preferred approach among the 
     alternative identified pursuant to subparagraph (A) and 
     provide the Secretary's rationale for preferring that 
     approach.
       (3) Identification of alternative approaches.--In 
     identifying alternative approaches pursuant to paragraph 
     (2)(A), the Secretary shall examine--
       (A) approaches used by other Federal departments and 
     agencies; and
       (B) the feasibility of using private economic forecasting.
       (b) Comptroller General Review and Report.--The Comptroller 
     General shall review the report under subsection (a), 
     including the basis for the Secretary's conclusions stated in 
     the report, and shall submit, not later than March 15, 2007, 
     to the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives a 
     report containing the results of that review.

     SEC. 1007. MODIFICATION OF DATE OF SUBMITTAL OF OMB/CBO 
                   REPORT ON SCORING OF OUTLAYS.

       Section 226(a) of title 10, United States Code, is amended 
     by striking ``January 15 of each year'' and inserting ``April 
     1 of each year''.

     SEC. 1008. BUDGETING FOR ONGOING MILITARY OPERATIONS IN 
                   AFGHANISTAN AND IRAQ.

       The President's budget submitted to Congress pursuant to 
     section 1105(a) of title 31, United States Code, for each 
     fiscal year after fiscal year 2007 shall include--
       (1) a request for the appropriation of funds for such 
     fiscal year for ongoing military operations in Afghanistan 
     and Iraq;
       (2) an estimate of all funds expected to be required in 
     that fiscal year for such operations; and
       (3) a detailed justification of the funds requested.
          Subtitle B--Policy Relating to Vessels and Shipyards

     SEC. 1011. AIRCRAFT CARRIER FORCE STRUCTURE.

       (a) Reduction in Minimum Number of Operational Aircraft 
     Carriers Required by Law.--Section 5062(b) of title 10, 
     United States Code, is amended by striking ``12'' and 
     inserting ``11''.
       (b) Required Certification Before Retirement of U.S.S. John 
     F. Kennedy.--The Secretary of the Navy may not retire the 
     U.S.S. John F. Kennedy (CV-67) from operational status unless 
     the Secretary of Defense first submits to the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives the Secretary's 
     certification that the Secretary has received--
       (1) a formal notice from the Secretary of Homeland Security 
     that the Department of Homeland Security does not desire to 
     maintain and operate that vessel; and
       (2) a formal notice from the North Atlantic Treaty 
     Organization that the North Atlantic Treaty Organization does 
     not desire to maintain and operate that vessel.
       (c) Conditions on Status of U.S.S. John F. Kennedy if 
     Retired.--Upon the retirement from operational status of the 
     U.S.S. John F. Kennedy (CV-67), the Secretary of the Navy--
       (1) while the vessel is in the custody and control of the 
     Navy, shall maintain that vessel in a state of preservation 
     (including configuration control, dehumidification, cathodic 
     protection, and maintenance of spares) that would allow for 
     reactivation of that vessel in the event that the vessel was 
     needed in response to a national emergency; and
       (2) if the vessel is transferred from the custody and 
     control of the Navy, shall require as a condition of such 
     transfer that--
       (A) if the President declares a national emergency pursuant 
     to the National Emergencies Act (50 U.S.C. 1601 et seq.), the 
     transferee shall, upon request of the Secretary of Defense, 
     return the vessel to the United States; and
       (B) in such a case (unless the transferee is otherwise 
     notified by the Secretary), title to the vessel shall revert 
     immediately to the United States.

     SEC. 1012. SENSE OF CONGRESS ON NAMING THE CVN-78 AIRCRAFT 
                   CARRIER AS THE U.S.S. GERALD R. FORD.

       (a) Findings.--Congress makes the following findings:
       (1) Gerald R. Ford has served his country with honor and 
     distinction for the past 64 years, and continues to serve.
       (2) Gerald R. Ford was commissioned in the Naval Reserve in 
     1942 and served valiantly at sea on the U.S.S. Monterey (CVL-
     26) during World War II, taking part in major operations in 
     the Pacific, including at Makin Island, Kwajalein, Truk, 
     Saipan, and the Philippine Sea.
       (3) Gerald R. Ford received 9 engagement stars and 2 bronze 
     stars for his service in the Navy during World War II.
       (4) Gerald R. Ford was first elected to the House of 
     Representatives in 1948.
       (5) During 25 years of service in the House of 
     Representatives, Gerald R. Ford distinguished himself by an 
     exemplary record for character, decency, and trustworthiness.
       (6) Throughout his service in the House of Representatives, 
     Gerald R. Ford was an ardent proponent of strong national 
     defense and international leadership by the United States.

[[Page 20830]]

       (7) From 1965 to 1973, Gerald R. Ford served as minority 
     leader of the House of Representatives, raising the standard 
     for bipartisanship in his tireless fight for freedom, hope, 
     and justice.
       (8) In 1973, Gerald R. Ford was appointed by President 
     Nixon to the office of Vice President of the United States 
     under the 25th Amendment to the Constitution, having been 
     confirmed by overwhelming majorities in both Houses of 
     Congress.
       (9) On August 9, 1974, Gerald R. Ford became the 38th 
     President of the United States, taking office during one of 
     the most challenging periods in the history of the United 
     States.
       (10) As President from August 9, 1974, to January 20, 1977, 
     Gerald R. Ford restored the faith of the people of the United 
     States in the office of the President through his steady 
     leadership, courage, and ultimate integrity.
       (11) As President, Gerald R. Ford helped restore the 
     prestige of the United States in the world community by 
     working to achieve peace in the Middle East, preserve detente 
     with the Soviet Union, and set new limits on the spread of 
     nuclear weapons.
       (12) As President, Gerald R. Ford served as Commander in 
     Chief of the Armed Forces with great dignity, supporting a 
     strong Navy and a global military presence for the United 
     States and honoring the members of the Armed Forces.
       (13) Since leaving the office of President, Gerald R. Ford 
     has been an international ambassador of American goodwill, a 
     noted scholar and lecturer, a strong supporter of human 
     rights, and a promoter of higher education.
       (14) Gerald R. Ford was awarded the Medal of Freedom and 
     the Congressional Gold Medal in 1999 in recognition of his 
     contribution to the Nation.
       (15) As President, Gerald R. Ford bore the weight of a 
     constitutional crisis and guided the Nation on a path of 
     healing and restored hope, earning forever the enduring 
     respect and gratitude of the Nation.
       (b) Naming of CVN-78 Aircraft Carrier.--It is the sense of 
     Congress that the nuclear-powered aircraft carrier of the 
     Navy designated as CVN-78 should be named the U.S.S. Gerald 
     R. Ford.

     SEC. 1013. TRANSFER OF NAVAL VESSELS TO FOREIGN NATIONS BASED 
                   UPON VESSEL CLASS.

       Section 7307(a) of title 10, United States Code, is 
     amended--
       (1) by striking ``disposition of that vessel is approved'' 
     and inserting ``disposal of that vessel, or of a vessel of 
     the class of that vessel, is authorized''; and
       (2) by adding at the end the following new sentences: ``In 
     the case of an authorization by law for the disposal of such 
     a vessel that names a specific vessel as being authorized for 
     such disposal, the Secretary of Defense may substitute 
     another vessel of the same class, if the vessel substituted 
     has virtually identical capabilities as the named vessel. In 
     the case of an authorization by law for the disposal of 
     vessels of a specified class, the Secretary may dispose of 
     vessels of that class pursuant to that authorization only in 
     the number of such vessels specified in that law as being 
     authorized for disposal.''.

     SEC. 1014. OVERHAUL, REPAIR, AND MAINTENANCE OF VESSELS IN 
                   FOREIGN SHIPYARDS.

       Section 7310(a) of title 10, United States Code, is 
     amended--
       (1) by inserting ``or Guam'' in the subsection heading 
     after ``United States''; and
       (2) by inserting ``or Guam'' after ``in the United 
     States''.

     SEC. 1015. REPORT ON OPTIONS FOR FUTURE LEASE ARRANGEMENT FOR 
                   GUAM SHIPYARD.

       (a) Report Required.--Not later than December 15, 2006, the 
     Secretary of the Navy shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Service of 
     the House of Representatives a report describing the options 
     available with respect to the Guam Shipyard in Santa Rita, 
     Guam.
       (b) Contents of Report.--The report required under 
     subsection (a) shall include the following:
       (1) An evaluation of the performance of the entities that, 
     as of the date of the enactment of this Act, are the lessee 
     and operators of the Guam Shipyard under the terms of the 
     lease in effect on the date of the enactment of this Act.
       (2) An evaluation of each of the following options with 
     respect to the Guam Shipyard lease:
       (A) Terminating the remaining term of the lease and issuing 
     a new 25 year lease with the same entity.
       (B) Terminating the remaining term of the lease with 
     respect to the approximately 73 acres within the Guam 
     Shipyard that are required for mission requirements and 
     leaving the remaining term of the lease in effect with 
     respect to the approximately 27 acres within the Facility 
     that are not required for mission requirements.
       (C) Terminating the remaining term of the lease and 
     negotiating a new use arrangement with a different lessee or 
     operator. The new use arrangement options shall include:
       (i) Government-owned and government-operated facility.
       (ii) Government-owned and contractor-operated facility.
       (iii) Government-leased property for contractor-owned and 
     contractor-operated facility.
       (c) Options for New Use Arrangements.--In evaluating the 
     options under subsection (b)(2)(C), the Secretary of the Navy 
     shall include an evaluation of each of the following:
       (1) The anticipated future military vessel repair and 
     workload on Guam in relation to the 2006 Quadrennial Defense 
     Review, issued on February 6, 2006, pursuant to section 118 
     of title 10, United States Code.
       (2) The anticipated military vessel repair and workload 
     attributable to vessels comprising the Maritime 
     Prepositioning Ship Squadron Three.
       (3) The anticipated military vessel repair and workload due 
     to a change in section 7310 of title 10, United States Code, 
     that would designate Guam as a United States homeport 
     facility.
       (4) The expected workload if the submarine tender the 
     U.S.S. Frank Cable (AS-40) is decommissioned.
       (5) The estimated reacquisition costs of transferred 
     Government property.
       (6) Costs to improve floating dry dock mooring 
     certification and required nuclear certification for the 
     floating dry dock designated as AFDB-8 to conduct the 
     following maintenance:
       (A) Dry-docking selected restricted availabilities and mid-
     term availability for attack submarines.
       (B) Dry-docking phased maintenance availabilities for 
     amphibious vessels, including to amphibious assault ships, 
     dock landing ships, and amphibious transport dock ships.
       (C) Dry-docking phased maintenance availabilities for 
     surface combatants, including cruisers, destroyers, and 
     frigates.
       (7) Commercial opportunities for development to expand 
     commercial ship repair and general industrial services, given 
     anti-terrorism force protection requirements at the current 
     facility.
       (8) Estimates from three contractors for the maintenance 
     and repair costs associated with executing a multiship, 
     multioption contract that would generate a minimum 60,000 
     manday commitment for the Department of the Navy and Military 
     Sealift Command vessels.
       (9) A projection of the maintenance and repair costs 
     associated with executing a minimum 60,000 mandays for the 
     Department of the Navy and Military Sealift Command vessels 
     as a Government-owned and Government-operated Navy ship 
     repair facility.
       (d) Input From Contractors.--In evaluating the options 
     under clauses (ii) and (iii) of subsection (b)(2)(C) for the 
     purposes of paragraphs (1), (2), and (3) of subsection (c), 
     the Secretary of the Navy shall seek input from at least 
     three contractors on the viability of operations based on the 
     projected workload fiscal years 2008 through 2013.
       (e) Recommendations.--The Secretary of the Navy shall 
     include in the report required under subsection (a) the 
     following:
       (1) The recommendations of the Secretary with respect to 
     continuation of the existing Guam Shipyard lease based on 
     evaluations conducted pursuant to subsection (b)(1).
       (2) The option under subsection (b)(2) that the Secretary 
     recommends for fiscal year 2008.
       (f) GAO Report.--Not later than March 1, 2007, the 
     Comptroller General shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Service of 
     the House of Representatives a report evaluating the report 
     submitted by the Secretary of the Navy under subsection (a). 
     The report shall include the option under subsection (b)(2) 
     that the Secretary recommends for fiscal year 2008.

     SEC. 1016. ASSESSMENTS OF NAVAL VESSEL CONSTRUCTION 
                   EFFICIENCIES AND OF EFFECTIVENESS OF SPECIAL 
                   CONTRACTOR INCENTIVES.

       (a) Assessment Required.--The Secretary of the Navy shall 
     conduct an assessment of each of the aspects of naval vessel 
     construction specified in subsection (b) in order to 
     determine--
       (1) what inefficiencies exist in those aspects of naval 
     vessel construction;
       (2) what innovative design and production technologies, 
     processes, and performance incentives are warranted to 
     alleviate the inefficiencies so identified; and
       (3) what action the Secretary intends to take to facilitate 
     the adoption by the shipbuilding industry of the 
     technologies, processes, and performance incentives 
     identified under paragraph (2).
       (b) Aspects to Be Assessed.--Subsection (a) applies with 
     respect to the following aspects of naval vessel 
     construction:
       (1) Program design, engineering, and production 
     engineering.
       (2) Organization and operating systems.
       (3) Steelwork production.
       (4) Ship construction and outfitting.
       (5) Combat systems development, integration, and 
     installation.
       (c) Consideration of Prior Assessments.--In making the 
     assessments required by subsection (a), the Secretary shall 
     take into consideration the results of--
       (1) the study of the cost effectiveness of the ship 
     construction program of the Navy required by section 1014 of 
     the Ronald W. Reagan National Defense Authorization Act for 
     Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2041);
       (2) the assessment of the United States naval shipbuilding 
     industry required by section 254 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163; 
     119 Stat. 3180); and
       (3) any prior assessment performed by or on behalf of the 
     Department of Defense.
       (d) Special Contractor Incentives.--In addition to the 
     assessments under subsection (a), the Secretary shall conduct 
     an assessment of the effectiveness of the use in naval vessel 
     construction contracts of special contract incentives for 
     investment by the contractor in facilities and process 
     improvement projects. Such assessment shall include the 
     following:
       (1) A description of the intent of the use of such 
     incentives in naval vessel construction contracts.
       (2) A description of the process and criteria used by the 
     Secretary for evaluation of proposed

[[Page 20831]]

     projects to receive such incentives in naval vessel 
     construction contracts and for the selection among such 
     proposed projects for inclusion of incentives in such 
     contracts.
       (3) For each facility or process improvement project for 
     which funds were provided in a naval vessel construction 
     contract during the five-year period ending on the date of 
     the enactment of this Act (including the facility or process 
     improvement project contract incentives incorporated in the 
     Virginia-class submarine construction contract and in the 
     CVN-21 construction contract)--
       (A) a description of the facility or process improvement 
     project proposed by the contractor;
       (B) the amount expended (or to be expended) by the United 
     States for the project under the contract; and
       (C) the estimated or actual return on investment for the 
     amounts referred to in subparagraph (B).
       (4) The plans of the Secretary of the Navy to use similar 
     contract incentives in ongoing and future shipbuilding 
     programs.
       (5) Any recommendation by the Secretary for the enactment 
     of legislation that might increase the effectiveness of, or 
     expand the use of, such contract incentives.
       (e) Report.--Not later than April 1, 2007, the Secretary of 
     the Navy shall submit to the congressional defense committees 
     a report on--
       (1) the Secretary's assessments of naval vessel 
     construction efficiencies under subsection (a), addressing 
     each of the matters specified in that subsection; and
       (2) the Secretary's assessment of the effectiveness of 
     special incentives for contractor investment in facilities 
     and process improvement projects under subsection (d).

     SEC. 1017. OBTAINING CARRIAGE BY VESSEL: CRITERION REGARDING 
                   OVERHAUL, REPAIR, AND MAINTENANCE OF VESSELS IN 
                   THE UNITED STATES.

       (a) Acquisition Policy.--In order to maintain the national 
     defense industrial base, the Secretary of Defense shall issue 
     an acquisition policy that establishes, as a criterion 
     required to be considered in obtaining carriage by vessel of 
     cargo for the Department of Defense, the extent to which an 
     offeror of such carriage had overhaul, repair, and 
     maintenance work for covered vessels of the offeror performed 
     in shipyards located in the United States.
       (b) Covered Vessels.--A vessel is a covered vessel of an 
     offeror under this section if the vessel is--
       (1) owned, operated, or controlled by the offeror; and
       (2) qualified to engage in the carriage of cargo in the 
     coastwise or non-contiguous trade under section 27 of the 
     Merchant Marine Act, 1920 (46 U.S.C. 883), section 12106 of 
     title 46, United States Code, and section 2 of the Shipping 
     Act, 1916 (46 U.S.C. App. 802).
       (c) Application of Policy.--The acquisition policy shall 
     include rules providing for application of the policy to 
     covered vessels as expeditiously as is practicable based on 
     the nature of carriage obtained, and by no later than June 1, 
     2007.
       (d) Regulations.--
       (1) In general.--The Secretary shall prescribe regulations 
     as necessary to carry out the acquisition policy and submit 
     such regulations to the Committees on Armed Services of the 
     Senate and the House of Representatives, by not later than 
     June 1, 2007.
       (2) Interim regulations.--
       (A) In general.--The Secretary may prescribe interim 
     regulations as necessary to carry out the acquisition policy. 
     For this purpose, the Secretary is excepted from compliance 
     with the notice and comment requirements of section 553 of 
     title 5, United States Code.
       (B) Submission to congress.--Upon the issuance of interim 
     regulations under this paragraph, the Secretary shall submit 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives the interim regulations and a 
     description of the acquisition policy developed (or being 
     developed) under subsection (a).
       (C) Expiration.--All interim regulations prescribed under 
     the authority of this paragraph that are not earlier 
     superseded by final regulations shall expire no later than 
     June 1, 2007.
       (e) Annual Report.--The Secretary, acting through the 
     United States Transportation Command, shall annually submit 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives a report regarding overhaul, repair, 
     and maintenance performed on covered vessels of each offeror 
     of carriage to which the acquisition policy applies.
       (f) Definitions.--In this section:
       (1) Foreign shipyard.--The term ``foreign shipyard'' means 
     a shipyard that is not located in the United States.
       (2) United states.--The term ``United States'' means--
       (A) any State of the United States; and
       (B) Guam.

     SEC. 1018. RIDING GANG MEMBER REQUIREMENTS.

       (a) Requirement for Charters and Contracts.--
       (1) In general.--The Secretary of Defense may not award, 
     renew, extend, or exercise an option to extend any charter of 
     a vessel documented under chapter 121 of title 46, United 
     States Code, for the Department of Defense, or any contract 
     for the carriage of cargo by a vessel documented under that 
     chapter for the Department of Defense, unless the charter or 
     contract, respectively, includes provisions that allow riding 
     gang members to perform work on the vessel during the 
     effective period of the charter or contract only under terms, 
     conditions, restrictions, and requirements that, except as 
     provided in paragraphs (2) and (3), are substantially the 
     same as those that apply under section 8106 of title 46, 
     United States Code, as in effect immediately before the 
     enactment of this Act, with respect to a vessel referred to 
     in that section.
       (2) Limitation.--For purposes of paragraph (1) of this 
     subsection, subsections (a)(1)(A)(ii), (c), and (d) of 
     section 8106 of title 46, United States Code, shall not apply 
     with respect to a charter or contract referred to in 
     paragraph (1).
       (3) Merchant mariner's document required.--The Secretary of 
     Defense shall include in the provisions required under 
     paragraph (1) a requirement that each riding gang member who 
     performs work on the vessel must hold a merchant mariner's 
     document issued under chapter 73 of title 46, United States 
     Code.
       (4) Riding gang member defined.--In this subsection the 
     term ``riding gang member'' has the meaning that term has in 
     section 8106 of title 46, United States Code, as in effect 
     immediately before the enactment of this Act.
       (b) Exemptions by Secretary of Defense.--
       (1) In general.--The Secretary of Defense may issue 
     regulations that exempt from the charter or contract 
     provisions required under subsection (a) any individual who 
     is on a vessel for purposes other than engaging in the 
     operation or maintenance of the vessel, including an 
     individual who is--
       (A) one of the personnel who accompany, supervise, guard, 
     and maintain unit equipment aboard a ship, commonly referred 
     to as supercargo personnel;
       (B) one of the force protection personnel of the vessel;
       (C) a specialized repair technician; or
       (D) otherwise required by the Secretary of Defense to be 
     aboard the vessel.
       (2) Background check.--Such regulations shall include a 
     requirement that any individual who is exempt under the 
     regulations must pass a background check before going aboard 
     the vessel, unless the individual holds a merchant mariner's 
     document issued under chapter 73 of title 46, United States 
     Code.
       (3) Exempted individual not treated as in addition to the 
     crew.--An individual exempted under paragraph (1) shall not 
     be counted as an individual in addition to the crew for the 
     purposes of section 3304 of title 46, United States Code.

     SEC. 1019. AUTHORITY TO TRANSFER SS ARTHUR M. HUDDELL TO THE 
                   GOVERNMENT OF GREECE.

       (a) Authority to Transfer.--The President is authorized to 
     transfer the ex-Liberty ship SS Arthur M. Huddell to the 
     Government of Greece in accordance with such terms and 
     conditions as the President may determine.
       (b) Additional Equipment.--The President is authorized to 
     convey additional equipment from other obsolete vessels of 
     the National Defense Reserve Fleet to assist the Government 
     of Greece in using the vessel referred to in subsection (a) 
     as a museum exhibit.
       (c) Repair and Refurbishment in United States Shipyard.--To 
     the maximum extent practicable, the President shall require, 
     as a condition of the transfer of the vessel referred to in 
     subsection (a), that the Government of Greece have such 
     repair or refurbishment of the vessel as is needed performed 
     at a shipyard located in the United States.
                  Subtitle C--Counter-Drug Activities

     SEC. 1021. EXTENSION OF AUTHORITY OF DEPARTMENT OF DEFENSE TO 
                   PROVIDE ADDITIONAL SUPPORT FOR COUNTERDRUG 
                   ACTIVITIES OF OTHER GOVERNMENTAL AGENCIES.

       Section 1004(a) of the National Defense Authorization Act 
     for Fiscal Year 1991 (10 U.S.C. 374 note) is amended by 
     striking ``through 2006'' and inserting ``through 2011''.

     SEC. 1022. EXTENSION AND EXPANSION OF DEPARTMENT OF DEFENSE 
                   AUTHORITY TO PROVIDE SUPPORT FOR COUNTER-DRUG 
                   ACTIVITIES OF CERTAIN FOREIGN GOVERNMENTS.

       (a) Extension of Authority.--Paragraph (2) of subsection 
     (a) of section 1033 of the National Defense Authorization Act 
     for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1881), as 
     amended by section 1021 of the National Defense Authorization 
     Act for Fiscal Year 2004 (Public Law 108-136: 117 Stat. 
     1593), is amended by striking ``September 30, 2006'' and 
     inserting ``September 30, 2008''.
       (b) Additional Governments Eligible To Receive Support.--
     Subsection (b) of such section is amended by adding at the 
     end the following new paragraphs:
       ``(10) The Government of Azerbaijan.
       ``(11) The Government of Kazakhstan.
       ``(12) The Government of Kyrgyzstan.
       ``(13) The Government of Armenia.
       ``(14) The Government of Guatemala.
       ``(15) The Government of Belize.
       ``(16) The Government of Panama.''.
       (c) Types of Support.--Subsection (c) of such section is 
     amended--
       (1) in paragraph (2), by inserting ``, vehicles, and, 
     subject to section 484(a) of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2291c(a)), aircraft'' after ``patrol boats''; 
     and
       (2) by adding at the end the following new paragraphs:
       ``(4) The transfer of detection, interception, monitoring, 
     and testing equipment.
       ``(5) For the Government of Afghanistan only, individual 
     and crew-served weapons of 50 caliber or less and ammunition 
     for such weapons for counter-narcotics security forces.''.
       (d) Maximum Annual Amount of Support.--Subsection (e)(2) of 
     such section is amended--
       (1) by striking ``or $40,000,000'' and inserting 
     ``$40,000,000''; and

[[Page 20832]]

       (2) by inserting before the period at the end the 
     following: ``, or $60,000,000 during either of the fiscal 
     years 2007 and 2008''.

     SEC. 1023. EXTENSION OF AUTHORITY TO SUPPORT UNIFIED 
                   COUNTERDRUG AND COUNTERTERRORISM CAMPAIGN IN 
                   COLOMBIA.

       Section 1021 of the Ronald W. Reagan National Defense 
     Authorization Act for Fiscal Year 2005 (Public Law 108-375; 
     118 Stat. 2042) is amended--
       (1) in subsection (a)(1), by striking ``and 2006'' and 
     inserting ``through 2008''; and
       (2) in subsection (c), by striking ``and 2006'' and 
     inserting ``through 2008''.

     SEC. 1024. CONTINUATION OF REPORTING REQUIREMENT REGARDING 
                   DEPARTMENT OF DEFENSE EXPENDITURES TO SUPPORT 
                   FOREIGN COUNTERDRUG ACTIVITIES.

       (a) Two-Year Extension of Reporting Requirement.--Section 
     1022 of the Floyd D. Spence National Defense Authorization 
     Act for Fiscal Year 2001 (as enacted into law by Public Law 
     106-398; 114 Stat. 1654A-255), as amended by section 1022 of 
     the National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107; 115 Stat. 1215) and section 1021 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3426), is further amended by 
     striking ``Not later than April 15, 2006,'' and inserting 
     ``(a) Reports Required.--Not later than April 15, 2006, 
     February 15, 2007, and February 15, 2008,''.
       (b) Additional Information to Be Included.--Such section is 
     further amended--
       (1) by designating the second sentence as subsection (b) 
     and striking ``The report'' and inserting ``Information to Be 
     Provided.--Each report under this section''; and
       (2) in paragraph (2), by inserting before the period at the 
     end the following: ``and the amount of funds provided for 
     each type of counterdrug activity assisted''.
       (c) Form and Submission of Reports.--Such section is 
     further amended--
       (1) in subsection (a), as designated by subsection (a) of 
     this section, by striking ``the congressional defense 
     committees'' and inserting ``the congressional committees 
     specified in subsection (d)''; and
       (2) by adding at the end the following new subsections:
       ``(c) Form of Reports.--Each report under this section 
     shall be submitted in both classified and unclassified form.
       ``(d) Specified Committees.--The congressional committees 
     specified in this subsection are the following:
       ``(1) The Committee on Armed Services, the Committee on 
     Foreign Relations, and the Committee on Appropriations of the 
     Senate.
       ``(2) The Committee on Armed Services, the Committee on 
     International Relations, and the Committee on Appropriations 
     of the House of Representatives.''.

     SEC. 1025. REPORT ON INTERAGENCY COUNTER-NARCOTICS PLAN FOR 
                   AFGHANISTAN AND SOUTH AND CENTRAL ASIAN 
                   REGIONS.

       (a) Report Required.--Not later than December 31, 2006, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report updating the interagency counter-
     narcotics implementation plan for Afghanistan and the South 
     and Central Asian regions, including Turkmenistan, 
     Uzbekistan, Tajikistan, Kyrgyzstan, Kazakhstan, Iran, 
     Armenia, Azerbaijan, Pakistan, India, and China.
       (b) Consultation.--The report under this section shall be 
     prepared in consultation with the Secretary of State, the 
     Administrator of the Agency for International Development, 
     and the Director of the Drug Enforcement Administration.
       (c) Matters to Be Included.--The report shall include the 
     following for each foreign government covered by the report:
       (1) A consideration of what activities should be 
     reallocated among the United States and the foreign 
     government based on the capabilities of each department and 
     agency involved.
       (2) Any measures necessary to clarify the legal authority 
     required to complete the mission.
       (3) The measures necessary for the United States to 
     successfully complete its counter-narcotics efforts in 
     Afghanistan and the South and Central Asian regions, 
     including an assessment of whether sufficient personnel and 
     other resources, including infrastructure and development 
     initiatives, are being made available by the United States 
     and the foreign government.
       (4) Current and proposed United States funding to support 
     counter-narcotics activities of the foreign government.

     SEC. 1026. REPORT ON UNITED STATES SUPPORT FOR OPERATION 
                   BAHAMAS, TURKS & CAICOS.

       (a) Findings.--Congress makes the following findings:
       (1) In 1982 the United States Government created Operation 
     Bahamas, Turks & Caicos (OPBAT) to counter the smuggling of 
     cocaine into the United States.
       (2) According to the Drug Enforcement Agency, an estimated 
     80 percent of the cocaine entering the United States in the 
     1980s came through the Bahamas, whereas, according to the 
     Office of National Drug Control Policy, only an estimated 10 
     percent comes through the Bahamas today.
       (3) According to the Drug Enforcement Agency, more than 
     80,000 kilograms of cocaine and nearly 700,000 pounds of 
     marijuana have been seized in Operation Bahamas, Turks & 
     Caicos since 1986, with a combined street value of 
     approximately two billion dollars.
       (4) The Army has provided military airlift to law 
     enforcement officials under Operation Bahamas, Turks & Caicos 
     to create an effective, reliable, and immediate response 
     capability for drug interdiction. This support is largely 
     responsible for the decline in cocaine shipments to the 
     United States through the Bahamas.
       (5) The Bahamas is an island nation composed of 
     approximately 700 islands and keys, which makes aviation 
     assets the best and most efficient method of transporting law 
     enforcement agents and interdicting smugglers.
       (6) It is in the interests of the United States to maintain 
     the results of the successful Operation Bahamas, Turks & 
     Caicos program and prevent drug smugglers from rebuilding 
     their operations through the Bahamas.
       (b) Report on United States Government Support for OPBAT.--
       (1) Report on decision to withdraw.--Not later than 30 days 
     before implementing a decision to withdraw Department of 
     Defense helicopters from Operation Bahamas, Turks & Caicos, 
     the Secretary of Defense shall submit to the Congress a 
     report outlining the plan for the coordination of the 
     Operation Bahamas, Turks & Caicos mission, at the same level 
     of effectiveness, using other United States Government 
     assets.
       (2) Consultation.--The Secretary of Defense shall consult 
     with the Secretary of State, the Attorney General, and the 
     Secretary of Homeland Security, and with other appropriate 
     officials of the United States Government, in preparing the 
     report under paragraph (1).
       (3) Elements.--The report under paragraph (1) on the 
     withdrawal of equipment referred to in that paragraph shall 
     include the following:
       (A) An explanation of the military justification for the 
     withdrawal of the equipment.
       (B) An assessment of the availability of other options 
     (including other Government helicopters) to provide the 
     capability being provided by the equipment to be withdrawn.
       (C) An explanation of how each option specified under 
     subparagraph (B) will provide the capability currently 
     provided by the equipment to be withdrawn.
       (D) An assessment of the potential use of unmanned aerial 
     vehicles in Operation Bahamas, Turks & Caicos, including the 
     capabilities of such vehicles and any advantages or 
     disadvantages associated with the use of such vehicles in 
     that operation, and a recommendation on whether or not to 
     deploy such vehicles in that operation.
         Subtitle D--Force Structure and Defense Policy Matters

     SEC. 1031. IMPROVEMENTS TO QUADRENNIAL DEFENSE REVIEW.

       (a) Findings.--Congress finds that the comprehensive 
     examination of the defense program and policies of the United 
     States that is undertaken by the Security Defense every four 
     years pursuant to section 118 of title 10, United States 
     Code, known as the Quadrennial Defense Review, is--
       (1) vital in laying out the strategic military planning and 
     threat objectives of the Department of Defense; and
       (2) critical to identifying the correct mix of military 
     planning assumptions, defense capabilities, and strategic 
     focuses for the Armed Forces.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Quadrennial Defense Review is intended to provide more 
     than an overview of global threats and the general strategic 
     orientation of the Department of Defense.
       (c) Conduct of Review.--Subsection (b) of section 118 of 
     title 10, United States Code, is amended--
       (1) by striking ``and'' at the end of paragraph (2);
       (2) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(4) to make recommendations that are not constrained to 
     comply with the budget submitted to Congress by the President 
     pursuant to section 1105 of title 31.''.
       (d) Additional Elements in Report to Congress.--Subsection 
     (d) of such section is amended--
       (1) in paragraph (1), by inserting ``, the strategic 
     planning guidance,'' after ``United States'';
       (2) by redesignating paragraphs (9) through (15) as 
     paragraphs (10), (11), (12), (13), (14), (15), and (17), 
     respectively;
       (3) by inserting after paragraph (8) the following new 
     paragraph (9):
       ``(9) The specific capabilities, including the general 
     number and type of specific military platforms, needed to 
     achieve the strategic and warfighting objectives identified 
     in the review.''; and
       (4) by inserting after paragraph (15), as redesignated by 
     paragraph (2), the following new paragraph:
       ``(16) The homeland defense and support to civil authority 
     missions of the active and reserve components, including the 
     organization and capabilities required for the active and 
     reserve components to discharge each such mission.''.
       (e) CJCS Review.--Subsection (e)(1) of such section is 
     amended by inserting before the period at the end the 
     following: ``and a description of the capabilities needed to 
     address such risk''.
       (f) Independent Assessment.--Such section is further 
     amended by adding at the end the following new subsection:
       ``(f) Independent Panel Assessment.--(1) Not later than six 
     months before the date on which the report on a Quadrennial 
     Defense Review is to be submitted under subsection (d), the

[[Page 20833]]

     Secretary of Defense shall establish a panel to conduct an 
     assessment of the quadrennial defense review.
       ``(2) Not later than three months after the date on which 
     the report on a quadrennial defense review is submitted under 
     subsection (d) to the congressional committees named in that 
     subsection, the panel appointed under paragraph (1) shall 
     submit to those committees an assessment of the review, 
     including the recommendations of the review, the stated and 
     implied assumptions incorporated in the review, and the 
     vulnerabilities of the strategy and force structure 
     underlying the review. The assessment of the panel shall 
     include analyses of the trends, asymmetries, and concepts of 
     operations that characterize the military balance with 
     potential adversaries, focusing on the strategic approaches 
     of possible opposing forces.''.

     SEC. 1032. QUARTERLY REPORTS ON IMPLEMENTATION OF 2006 
                   QUADRENNIAL DEFENSE REVIEW REPORT.

       (a) Reports Required.--Not later than 30 days after the end 
     of each fiscal-year quarter, the Secretary of Defense shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on Armed Services of the House of 
     Representatives a report on the implementation of 
     recommendations described in the Department of Defense 2006 
     Quadrennial Defense Review Report.
       (b) Contents of Reports.--Each quarterly report under 
     subsection (a) shall, at a minimum--
       (1) describe the processes and procedures established by 
     the Secretary of Defense to examine the various 
     recommendations referred to in subsection (a);
       (2) discuss implementation plans and strategies for each 
     area highlighted by the Quadrennial Defense Review Report;
       (3) provide relevant information about the status of such 
     implementation; and
       (4) indicate changes in the Secretary's assessment of the 
     defense strategies or capabilities required since the 
     publication of the 2006 Quadrennial Defense Review Report.
       (c) Initial Report.--The first report under subsection (a) 
     shall be submitted not later than January 31, 2007.
       (d) Expiration of Requirement.--The reporting requirement 
     in subsection (a) shall terminate upon the earlier of the 
     following:
       (1) The date of the publication of the next Quadrennial 
     Defense Review Report after the date of the enactment of this 
     Act pursuant to section 118 of title 10, United States Code.
       (2) The date of transmission of a written notification by 
     the Secretary of Defense to the Committee on Armed Services 
     of the Senate and the Committee on Armed Services of the 
     House of Representatives that implementation of the 
     recommendations of the 2006 Quadrennial Defense Review is 
     complete.

     SEC. 1033. REPORT ON FEASIBILITY OF ESTABLISHING A REGIONAL 
                   COMBATANT COMMAND FOR AFRICA.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report on the establishment under chapter 6 
     of title 10, United States Code, of a new unified combatant 
     command with a geographic area of responsibility consisting 
     of the African continent and adjacent waters.
       (b) Content.--The report under subsection (a) shall 
     include--
       (1) a study on the feasibility and advisability of 
     establishing a combatant command for Africa as described in 
     subsection (a);
       (2) an assessment of the benefits and problems associated 
     with establishing such a command; and
       (3) an estimate of the costs, time, and resources needed to 
     establish such a command.

     SEC. 1034. DETERMINATION OF DEPARTMENT OF DEFENSE 
                   INTRATHEATER AND INTERTHEATER AIRLIFT 
                   REQUIREMENTS AND SEALIFT MOBILITY REQUIREMENTS.

       (a) Determination of Requirements.--The Secretary of 
     Defense, as part of the 2006 Mobility Capabilities Study, 
     shall determine Department of Defense mobility requirements 
     as follows:
       (1) The Secretary shall determine intratheater and 
     intertheater airlift mobility requirements (stated in terms 
     of million ton miles per day) and sealift mobility 
     requirements (stated in terms of tons) necessary to support 
     warfighting objectives of the commanders of the combatant 
     commands for each scenario that was modeled in the 2005 
     Mobility Capabilities Study and each scenario that is modeled 
     in the 2006 Mobility Capabilities Study.
       (2) The Secretary shall determine intratheater and 
     intertheater airlift mobility requirements (stated in terms 
     of million ton miles per day) and sealift mobility 
     requirements (stated in terms of tons) for executing the 
     National Military Strategy with a low acceptable level of 
     risk, with a medium acceptable level of risk, and with a high 
     acceptable level of risk, for each of the following:
       (A) Two overlapping ``swift defeat'' campaigns.
       (B) The Global War on Terrorism.
       (C) Baseline security posture operations.
       (D) Homeland defense and civil support operations.
       (E) Special operations missions.
       (F) Global long-range strike missions.
       (G) Strategic nuclear missions.
       (b) Report.--Not later than February 1, 2007, the Secretary 
     of Defense shall submit to the congressional defense 
     committees a report providing the mobility requirements 
     determined pursuant to subsection (a). As part of the report, 
     the Secretary shall--
       (1) set forth each mobility requirement specified in 
     paragraph (1) or (2) of subsection (a); and
       (2) compare those defined mobility requirements to the 
     Department of Defense's mobility capability program of record 
     for intertheater and intratheater airlift and sealift.
       (c) Mobility Capabilities Studies.--For purposes of this 
     section:
       (1) 2006 mobility capabilities study.--The term ``2006 
     Mobility Capabilities Study'' means the studies conducted by 
     the Secretary of Defense and the Joint Staff during 2006 as a 
     follow-on to the 2005 Mobility Capabilities Study.
       (2) 2005 mobility capabilities study.--The term ``2005 
     Mobility Capabilities Study'' means the comprehensive 
     Mobility Capabilities Study completed in December 2005 and 
     conducted through the Office of Program Analysis and 
     Evaluation of the Department of Defense to assess mobility 
     needs for all aspects of the National Defense Strategy.

     SEC. 1035. PRESIDENTIAL REPORT ON IMPROVING INTERAGENCY 
                   SUPPORT FOR UNITED STATES 21ST CENTURY NATIONAL 
                   SECURITY MISSIONS AND INTERAGENCY OPERATIONS IN 
                   SUPPORT OF STABILITY, SECURITY, TRANSITION, AND 
                   RECONSTRUCTION OPERATIONS.

       (a) Report Required.--Not later than April 1, 2007, the 
     President shall submit to Congress a report on building 
     interagency capacity and enhancing the integration of 
     civilian capabilities of the executive branch with the 
     capabilities of the Armed Forces to enhance the achievement 
     of United States national security goals and objectives.
       (b) Report Elements.--The report under subsection (a) shall 
     include the following:
       (1) An assessment of the capacity and capabilities required 
     within the civilian agencies of the United States Government 
     to achieve the full range of United States national security 
     goals and objectives, to defend United States national 
     security interests, and, in particular, to coordinate with 
     the Armed Forces where deployed, including capacity and 
     capabilities in at least the following areas:
       (A) Organizations and organizational structures, including 
     a description of the roles, responsibilities, and 
     authorities;
       (B) Planning and assessment capabilities;
       (C) Information sharing policies, practices, and systems;
       (D) Leadership issues, including command and control of 
     forces and personnel in the field;
       (E) Personnel policies and systems, including those 
     pertaining to recruiting, retention, training, education, 
     promotion, awards, employment, deployment, and retirement; 
     and
       (F) Acquisition authorities, including identifying any 
     economies of scale that could be gained by improved 
     coordination of acquisition activities and replicating ``best 
     practices'', as appropriate.
       (2) The criteria and considerations used to evaluate 
     progress in each of the areas specified in paragraph (1) 
     towards building interagency capacity and capabilities and 
     integrating such capabilities across the United States 
     Government to enhance the achievement of United States 
     national security goals and objectives.
       (3) Recommendations for specific legislative proposals that 
     would build interagency capacity by--
       (A) addressing statutory or budgetary impediments, if any, 
     to the improvement of interagency cooperation and 
     coordination in order to carry out the full range of national 
     security missions (including stability, security, transition, 
     and reconstruction operations); and
       (B) providing means to enhance the integration of civilian 
     capabilities with the capabilities of deployed elements of 
     the Armed Forces for each of those national security 
     missions.
       (c) Additional Report Elements.--The report under 
     subsection (a) shall include a portion dedicated to efforts 
     to address the near-term need to strengthen interagency 
     operations in support of stability, security, transition, and 
     reconstruction operations, including a plan to establish 
     interagency operating procedures for the departments and 
     agencies of the United States Government for the planning and 
     conduct of stability, security, transition, and 
     reconstruction operations. Such plan shall include the 
     following:
       (1) A delineation of the roles, responsibilities, and 
     authorities of the departments and agencies of the United 
     States Government for stability, security, transition, and 
     reconstruction operations.
       (2) A description of operational processes for setting 
     policy direction for stability, security, transition, and 
     reconstruction operations in order to guide--
       (A) operational planning and funding decisions of those 
     departments and agencies;
       (B) integration of civilian and military planning efforts;
       (C) integration of programs and activities into an 
     implementation plan;
       (D) oversight of policy implementation;
       (E) provision of guidance to field-level personnel on 
     program direction and priorities; and
       (F) monitoring of field implementation of assistance 
     programs.
       (3) A description of available capabilities and resources 
     of each department and agency of the United States Government 
     that could be used in support of stability, security, 
     transition, and reconstruction operations and identification 
     of additional resources needed to support the conduct of such 
     operations.

[[Page 20834]]

       (4) A description of how the capabilities and resources of 
     the departments and agencies of the United States Government 
     will be coordinated to support stability, security, 
     transition, and reconstruction operations.
       (5) A description of existing, or planned, protocols 
     between departments and agencies of the United States 
     Government on the utilization and allocation of assets in 
     field operations that support stability, security, 
     transition, and reconstruction operations.
       (6) Recommendations for improving interagency training, 
     education, and simulation exercises in order to adequately 
     prepare civilian and military personnel in the departments 
     and agencies of the United States Government to perform 
     stability, security, transition, and reconstruction 
     operations.
       (7) Guidance for the implementation of the plan.
       (d) Form of Report.--To the maximum extent practicable, the 
     report shall be unclassified, with a classified annex, if 
     necessary.
                          Subtitle E--Reports

     SEC. 1041. ADDITIONAL ELEMENT IN ANNUAL REPORT ON CHEMICAL 
                   AND BIOLOGICAL WARFARE DEFENSE.

       Section 1703(b) of the National Defense Authorization Act 
     for Fiscal Year 1994 (50 U.S.C. 1523(b)) is amended by adding 
     at the end the following new paragraph:
       ``(10) A description of the coordination and integration of 
     the program of the Defense Advanced Research Projects Agency 
     (DARPA) on basic and applied research and advanced technology 
     development on chemical and biological warfare defense 
     technologies and systems under section 1701(c)(2) with the 
     overall program of the Department of Defense on chemical and 
     biological warfare defense, including--
       ``(A) an assessment of the degree to which the DARPA 
     program is coordinated and integrated with, and supports the 
     objectives and requirements of, the overall program of the 
     Department of Defense; and
       ``(B) the means by which the Department determines the 
     level of such coordination and support.''.

     SEC. 1042. REPORT ON BIODEFENSE HUMAN CAPITAL REQUIREMENTS IN 
                   SUPPORT OF BIOSAFETY LABORATORIES.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a study to determine the Department of Defense human capital 
     requirements for pending capital programs to construct 
     biodefense laboratories at Biosafety Level (BSL) 3 and 
     Biosafety Level 4 or to expand current biodefense 
     laboratories to such biosafety levels.
       (b) Elements.--In conducting the study, the Secretary shall 
     address the following:
       (1) The number of trained research and support staff, by 
     discipline and qualification level, including researchers, 
     laboratory technicians, animal handlers, facility managers, 
     facility or equipment maintainers, biosecurity personnel 
     (including biosafety, physical, and electronic security 
     personnel), and other safety personnel required--
       (A) for existing biodefense laboratories at Biosafety Level 
     3 and Biosafety Level 4; and
       (B) to manage biodefense research efforts to combat 
     bioterrorism at the biodefense laboratories described in 
     subsection (a).
       (2) Plans to recruit and retain skilled personnel, in 
     numbers sufficient to meet requirements described in 
     paragraph (1)(B).
       (3) A forecast of the training required to provide the 
     personnel described by paragraph (1)(B) in time to meet the 
     scheduled openings of the biodefense laboratories described 
     in subsection (a), including--
       (A) the types of training required;
       (B) the length of training required; and
       (C) the training sources.
       (c) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary shall submit to the 
     Committees on Armed Services of the Senate and House of 
     Representatives a report setting forth the results of the 
     study conducted under this section.

     SEC. 1043. REPORT ON TECHNOLOGIES FOR NEUTRALIZING OR 
                   DEFEATING THREATS TO MILITARY ROTARY-WING 
                   AIRCRAFT FROM PORTABLE AIR DEFENSE SYSTEMS AND 
                   ROCKET-PROPELLED GRENADES.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     on technologies for neutralizing or defeating threats to 
     military rotary-wing aircraft posed by portable air defense 
     systems and rocket-propelled grenades that are being 
     researched, developed, employed, or considered by the United 
     States Government or the North Atlantic Treaty Organization.
       (b) Content.--The report under subsection (a) shall include 
     the following:
       (1) An assessment of the expected value and utility of the 
     technologies referred to in subsection (a), particularly with 
     respect to--
       (A) the saving of lives;
       (B) the ability to reduce the vulnerability of aircraft; 
     and
       (C) the enhancement of the ability of aircraft and their 
     crews to accomplish assigned missions.
       (2) An assessment of the potential costs of developing and 
     deploying such technologies.
       (3) A description of efforts undertaken to develop such 
     technologies, including--
       (A) nonlethal countermeasures;
       (B) lasers and other systems designed to dazzle, impede, or 
     obscure threatening weapon or their users;
       (C) direct fire response systems;
       (D) directed energy weapons; and
       (E) passive and active systems.
       (4) A description of any impediment to the development of 
     such technologies, such as legal restrictions under the law 
     of war, treaty restrictions under the Protocol on Blinding 
     Lasers, and political obstacles such as the reluctance of 
     other allied countries to pursue such technologies.

     SEC. 1044. REPORTS ON EXPANDED USE OF UNMANNED AERIAL 
                   VEHICLES IN THE NATIONAL AIRSPACE SYSTEM.

       (a) Findings.--Congress makes the following findings:
       (1) Unmanned aerial vehicles (UAVs) serve Department of 
     Defense intelligence, surveillance, reconnaissance, and 
     combat missions.
       (2) Operational reliability of unmanned aerial systems 
     continues to improve, and development and fielding of so-
     called sense-and-avoid technology should continue in order to 
     provide unmanned aerial systems with an appropriate level of 
     safety.
       (3) Unmanned aerial vehicles have the potential to support 
     the Nation's homeland defense mission, border security 
     mission, and natural disaster recovery efforts.
       (b) Reports.--
       (1) DOD report.--Not later than one year after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     submit to the relevant congressional committees a report on 
     the actions of the Department of Defense to develop standards 
     for the testing and operation of unmanned aerial vehicles in 
     the National Airspace System.
       (2) FAA report.--Not later than one year after the date of 
     the enactment of this Act, the Administrator of the Federal 
     Aviation Administration shall submit to the relevant 
     congressional committees a report on progress in developing a 
     policy for testing and a plan for achieving wider access by 
     unmanned aerial vehicles that are appropriately equipped to 
     operate in the National Airspace System
       (3) Relevant congressional committee.--For the purposes of 
     this subsection, the relevant congressional committees are 
     the following:
       (A) The Committee on Armed Services, the Committee on 
     Commerce, the Committee on Science and Transportation, and 
     the Committee on Homeland Security and Governmental Affairs 
     of the Senate.
       (B) The Committee on Armed Services, the Committee on 
     Energy and Commerce, the Committee on Government Reform, and 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives.

     SEC. 1045. REPORT ON INCENTIVES TO ENCOURAGE CERTAIN MEMBERS 
                   AND FORMER MEMBERS OF THE ARMED FORCES TO SERVE 
                   IN THE BUREAU OF CUSTOMS AND BORDER PROTECTION.

       (a) Report Required.--Not later than 60 days after the date 
     of the enactment of this Act, the Secretary of Homeland 
     Security and the Secretary of Defense shall jointly submit to 
     the congressional committees specified in subsection (e) a 
     report assessing the desirability and feasibility of offering 
     incentives to members and former members of the Armed Forces 
     described in subsection (b) for the purpose of encouraging 
     such members to serve in the Bureau of Customs and Border 
     Protection of the Department of Homeland Security.
       (b) Covered Members and Former Members.--The members and 
     former members of the Armed Forces to be covered by the 
     report under subsection (a) are the following:
       (1) Members of the reserve components of the Armed Forces.
       (2) Former members of the Armed Forces within two years of 
     separation from service in the Armed Forces.
       (c) Requirements and Limitations.--
       (1) Nature of incentives.--In considering incentives for 
     purposes of the report required by subsection (a), the 
     Secretaries shall consider such incentives as the Secretaries 
     jointly consider appropriate, whether or not such incentives 
     are monetary or otherwise and whether or not such incentives 
     are authorized by current law or regulations.
       (2) Targeting of incentives.--In assessing any incentive 
     for purposes of the report, the Secretaries shall give 
     particular attention to the utility of such incentive in--
       (A) encouraging service in the Bureau of Customs and Border 
     Protection after service in the Armed Forces by members and 
     former members of the Armed Forces described in subsection 
     (b) who provided border patrol or border security assistance 
     to the Bureau as part of their duties as members of the Armed 
     Forces; and
       (B) leveraging military training and experience by 
     accelerating training, or allowing credit to be applied to 
     related areas of training, required for service with the 
     Bureau of Customs and Border Protection.
       (3) Payment.--In assessing incentives for purposes of the 
     report, the Secretaries shall assume that any costs of such 
     incentives shall be borne by the Department of Homeland 
     Security.
       (d) Elements.--The report required by subsection (a) shall 
     include the following:
       (1) A description of various monetary and non-monetary 
     incentives considered for purposes of the report.
       (2) An assessment of the desirability and feasibility of 
     utilizing any such incentive for the purpose specified in 
     subsection (a), including an assessment of the particular 
     utility of such incentive in encouraging service in the 
     Bureau of Customs and Border Protection after service in the 
     Armed Forces by members and former members of the Armed 
     Forces described in subsection (c)(2)(A).
       (3) Any other matters that the Secretaries jointly consider 
     appropriate.

[[Page 20835]]

       (e) Submission of Report.--The report required by 
     subsection (a) shall be submitted to--
       (1) the Committee on Armed Services, the Committee on 
     Homeland Security and Governmental Affairs, and the Committee 
     on Appropriations of the Senate; and
       (2) the Committee on Armed Services, the Committee on 
     Homeland Security, and the Committee on Appropriations of the 
     House of Representatives.

     SEC. 1046. REPEAL OF CERTAIN REPORT REQUIREMENTS.

       (a) Annual Report on Aviation Career Incentive Pay.--
     Section 301a of title 37, United States Code, is amended by 
     striking subsection (f).
       (b) Annual Report on Effects of Certain Initiatives on 
     Recruitment and Retention.--
       (1) Repeal.--Section 1015 of title 37, United States Code, 
     is repealed.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 19 of such title is amended by striking 
     the item relating to section 1015.
       (c) Secretary of Defense Recommendation on Need for Defense 
     Impact Review Process.--Section 1041 of the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107; 
     115 Stat. 1217) is repealed.
       (d) Report on Pilot Program To Enhance Military Recruiting 
     by Improving Military Awareness of School Counselors and 
     Educators.--Section 564 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-133; 10 
     U.S.C. 503 note)) is amended by striking subsection (c).
       (e) Annual Report on Medical Informatics.--Section 723(d) 
     of the National Defense Authorization Act for Fiscal Year 
     2000 (Public Law 106-65; 10 U.S.C. 1071 note) is amended--
       (1) by striking paragraph (5); and
       (2) by redesignating paragraphs (6) and (7) as paragraphs 
     (5) and (6), respectively.

     SEC. 1047. REQUIREMENT FOR IDENTIFICATION OF RECENTLY ENACTED 
                   RECURRING REPORTING REQUIREMENTS APPLICABLE TO 
                   THE DEPARTMENT OF DEFENSE.

       (a) Identification and Submittal to Congressional 
     Committees.--
       (1) In general.--Not later than March 1, 2007, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a listing of each provision of 
     law specified in paragraph (2).
       (2) Covered provisions of law.--Paragraph (1) applies with 
     respect to any provision of law enacted on or after November 
     24, 2003 (the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136)), 
     and before February 1, 2007, that requires the submission by 
     the Secretary of Defense or any other official of the 
     Department of Defense of annual, semiannual, or other 
     periodic reports to one or more of the congressional defense 
     committees
       (b) Additional Matter to Be Submitted.--The Secretary of 
     Defense shall include with the listing submitted under 
     subsection (a) the following:
       (1) With respect to each provision of law covered by that 
     subsection, a description of the report requirement under 
     that provision.
       (2) For each such report requirement--
       (A) an assessment by the Secretary--
       (i) of the burden imposed on the Department of Defense by 
     the preparation of the report; and
       (ii) of the utility of such report from the perspective of 
     the Department of Defense; and
       (B) a recommendation on the advisability of repealing or 
     modifying the requirement for the submittal of such report.
       (c) Definition.--In this section, the term ``report'' has 
     the meaning given that term in section 480(c) of title 10, 
     United States Code.
 Subtitle F--Miscellaneous Authorities and Limitations on Availability 
                            and Use of Funds

     SEC. 1051. ACCEPTANCE AND RETENTION OF REIMBURSEMENT FROM 
                   NON-FEDERAL SOURCES TO DEFRAY DEPARTMENT OF 
                   DEFENSE COSTS OF CONFERENCES.

       (a) In General.--Subchapter II of chapter 134 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2262. Department of Defense conferences: collection of 
       fees to cover Department of Defense costs

       ``(a) Authority to Collect Fees.--(1) The Secretary of 
     Defense may collect fees from any individual or commercial 
     participant in a conference, seminar, exhibition, symposium, 
     or similar meeting conducted by the Department of Defense (in 
     this section referred to collectively as a `conference').
       ``(2) The Secretary may provide for the collection of fees 
     under this section directly or by contract. The fees may be 
     collected in advance of a conference.
       ``(b) Used of Collected Fees.--Amounts collected under 
     subsection (a) with respect to a conference shall be credited 
     to the appropriation or account from which the costs of the 
     conference are paid and shall be available to pay the costs 
     of the Department of Defense with respect to the conference 
     or to reimburse the Department for costs incurred with 
     respect to the conference.
       ``(c) Treatment of Excess Amounts.--In the event the total 
     amount of fees collected under subsection (a) with respect to 
     a conference exceeds the actual costs of the Department of 
     Defense with respect to the conference, the amount of such 
     excess shall be deposited into the Treasury as miscellaneous 
     receipts.
       ``(d) Annual Reports.--(1) Not later than 45 days after the 
     President submits to Congress the budget for a fiscal year 
     under section 1105 of title 31, the Secretary of Defense 
     shall submit to the congressional defense committees a budget 
     justification document summarizing the use of the fee-
     collection authority provided by this section.
       ``(2) Each report shall include the following:
       ``(A) A list of all conferences conducted during the 
     preceding two calendar years for which fees were collected 
     under this section.
       ``(B) For each conference included on the list under 
     subparagraph (A):
       ``(i) The estimated costs of the Department for the 
     conference.
       ``(ii) The actual costs of the Department for the 
     conference, including a separate statement of the amount of 
     any conference coordinator fees associated with the 
     conference.
       ``(iii) The amount of fees collected under this section for 
     the conference.
       ``(C) An estimate of the number of conferences to be 
     conducted during the calendar year in which the report is 
     submitted for which the Department will collect fees under 
     this section.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of subchapter II of chapter 134 of such title is 
     amended by adding at the end the following new item:

``2262. Department of Defense conferences: collection of fees to cover 
              Department of Defense costs.''.

     SEC. 1052. INCREASED FLEXIBILITY IN USE OF FUNDS FOR JOINT 
                   STAFF EXERCISES.

       (a) In General.--Amounts available to the Chairman of the 
     Joint Chiefs of Staff for joint staff exercises may be 
     available for any expenses as follows:
       (1) Expenses of the Armed Forces in connection with such 
     exercises, including expense relating to self-deploying 
     watercraft under the jurisdiction of a military department.
       (2) Expenses relating to the costs of port support 
     activities in connection with such exercises, including 
     transportation and port handling.
       (3) Expenses relating to the breakout and operation of 
     prepositioned watercraft and lighterage for joint logistics 
     and over the shore exercises in connection with such 
     exercises.
       (b) Supplement Not Supplant.--Any amounts made available by 
     the Chairman of the Joint Chiefs of Staff under subsection 
     (a) for expenses covered by that subsection are in addition 
     to any other amounts available under law for such expenses.

     SEC. 1053. PROHIBITION ON PARKING OF FUNDS.

       (a) Prohibition.--
       (1) In general.--Chapter 165 of title 10, United States 
     Code, is amended by inserting after section 2773a the 
     following new section:

     ``Sec. 2773b. Parking of funds: prohibition; penalties

       ``(a) Prohibition.--An officer or employee of the 
     Department of Defense may not direct the designation of funds 
     for a particular purpose in the budget of the President, as 
     submitted to Congress pursuant to section 1105 of title 31, 
     or the supporting documents of the Department of Defense 
     component of such budget, with the knowledge or intent that 
     such funds, if made available to the Department, will not be 
     used for the purpose for which they are designated.
       ``(b) Penalties.--The direction of the designation of funds 
     in violation of the prohibition in subsection (a) shall be 
     treated for purposes of chapter 13 of title 31 as a violation 
     of section 1341(a)(1)(A) of such title.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 165 of such title is amended by 
     inserting after the item relating to section 2773a the 
     following new item:

``2773b. Parking of funds: prohibition; penalties.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by subsection (a) 
     shall take effect on the date that is 31 days after the date 
     of the enactment of this Act.
       (2) Modification of certain policies and regulations.--Not 
     later than 30 days after the date of the enactment of this 
     Act, the Secretary of Defense shall modify the policies and 
     regulations of the Department of Defense regarding the 
     preparation and submittal to Congress of budget materials for 
     the Department of Defense to take into account section 2773b 
     of title 10, United States Code, as added by subsection (a).

     SEC. 1054. MODIFICATION OF AUTHORITIES RELATING TO THE 
                   SPECIAL INSPECTOR GENERAL FOR IRAQ 
                   RECONSTRUCTION.

       (a) Duties.--For purposes of carrying out the duties of the 
     Special Inspector General for Iraq Reconstruction under 
     section 3001(f) of the Emergency Supplemental Appropriations 
     Act for Defense and for the Reconstruction of Iraq and 
     Afghanistan, 2004 (Public Law 108-106; 117 Stat. 1235 et 
     seq.; 5 U.S.C. App., note to section 8G of Public Law 95-
     452), any United States funds appropriated or otherwise made 
     available for fiscal year 2006 for the reconstruction of 
     Iraq, irrespective of the designation of such funds, shall be 
     deemed to be amounts appropriated or otherwise made available 
     to the Iraq Relief and Reconstruction Fund.
       (b) Termination.--Section 3001(o) of the Emergency 
     Supplemental Appropriations Act for Defense and for the 
     Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-
     106; 117 Stat. 1238; 5 U.S.C. App., note to section 8G of 
     Public Law 95-452) is amended to read as follows:

[[Page 20836]]

       ``(o) Termination.--The Office of the Inspector General 
     shall terminate on October 1, 2007, with transition 
     operations authorized to continue through December 31, 
     2007.''.
                Subtitle G--Matters Involving Detainees

     SEC. 1061. PROVISION OF INFORMATION TO CONGRESS ON CERTAIN 
                   CRIMINAL INVESTIGATIONS AND PROSECUTIONS 
                   INVOLVING DETAINEES.

       (a) Annual Report.--Subsection (c) of section 1093 of the 
     Ronald W. Reagan National Defense Authorization Act for 
     Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2070) is 
     amended--
       (1) in paragraph (1), by inserting ``, or any prosecution 
     on account of,'' after ``Notice of any investigation into''; 
     and
       (2) by adding at the end the following new paragraph:
       ``(3) For each investigation or prosecution described in 
     paragraph (1) with respect to which notice is included in the 
     report--
       ``(A) a detailed and comprehensive description of such 
     investigation or prosecution and any resulting judicial or 
     nonjudicial punishment or other disciplinary action; and
       ``(B) if the individual receiving the punishment or 
     disciplinary action is a member of the Armed Forces, the 
     grade of that individual (i) as of the time of the incident 
     resulting in the investigation or prosecution, (ii) as of the 
     beginning of the investigation or prosecution, and (iii) as 
     of the submission of the report.''.
       (b) Timely Submission of Covered Information.--Such section 
     is further amended by adding at the end the following new 
     subsection:
       ``(f) Additional Reporting.--In addition to the annual 
     report under subsection (c), the Secretary of Defense shall 
     submit to the committees named in that subsection regular and 
     timely reports on the matters described in paragraphs (1) and 
     (3) of that subsection.''.
                       Subtitle H--Other Matters

     SEC. 1071. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) Title 10, United States Code.--Title 10, United States 
     Code, is amended as follows:
       (1) Section 115 is amended--
       (A) by striking the second subsection (i) (added by section 
     512(b) of Public Law 108-375 (118 Stat. 1880)); and
       (B) by adding at the end of subsection (i) the following 
     new paragraph:
       ``(13) Members of the National Guard on full-time National 
     Guard duty involuntarily and performing homeland defense 
     activities under chapter 9 of title 32.''.
       (2) Sections 133(c)(1), 2225(f)(1), 2302c(b), 
     2304(f)(1)(B)(iii), 2359a(i), and 2382(c)(3)(A) are amended 
     by striking ``section 16(3) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 414(3))'' and inserting 
     ``section 16(c) of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 414(c))''.
       (3) Section 426(a)(1)(B) is amended by striking 
     ``coordiation'' and inserting ``coordination''.
       (4) Section 843(b)(2) is amended--
       (A) in subparagraph (B)(iii), by striking ``article 126'' 
     and inserting ``article 125''; and
       (B) in subparagraph (C), by striking ``under chapter 110 or 
     117, or under section 1591, of title 18'' and inserting 
     ``under chapter 110 or 117 of title 18 or under section 1591 
     of that title''.
       (5) Section 1107a(a) is amended--
       (A) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively; and
       (B) in paragraph (2), as so redesignated, by striking 
     ``subparagraph (A)'' and inserting ``paragraph (1)''.
       (6) Section 1217(a) is amended by striking ``the date of'' 
     and all that follows and inserting ``October 28, 2004.''.
       (7) Section 1406(i)(3)(B)(vi) is amended by striking 
     ``Advisor for'' and inserting ``Advisor to''.
       (8) Section 1448(d)(6)(A) is amended by striking the second 
     comma after ``November 23, 2003''.
       (9) Section 2006(b)(1) is amended--
       (A) by inserting ``of this title'' after ``and 1607''; and
       (B) by striking ``of this title'' before the period at the 
     end.
       (10) Section 2103a(b) is amended in the subsection heading 
     by striking ``Eligibilty'' and inserting ``Eligibility''.
       (11) Section 2105 is amended by adding a period at the end 
     of the last sentence.
       (12) The item relating to section 2152 in the table of 
     sections at the beginning of chapter 107 is amended to read 
     as follows:

``2152. Joint professional military education: general requirements.''.
       (13) The heading for section 2155, and the item relating to 
     that section in the table of sections at the beginning of 
     chapter 107, are amended by capitalizing the first letter of 
     the fifth word.
       (14) Section 2155(a) is amended in the subsection heading 
     by inserting ``Phase'' after ``Education''.
       (15) Section 2157 is amended by striking ``phase II'' in 
     paragraph (1) and inserting ``Phase II''.
       (16) Section 2216(b)(1) is amended by striking 
     ``subsections'' and inserting ``subsection''.
       (17) The heading for section 2440 is amended so that the 
     first letter of each word after the first is lower case.
       (18) The item relating to section 2481 in the table of 
     sections at the beginning of subchapter I of chapter 147 is 
     amended by adding a period at the end.
       (19)(A) The second section 2613 (added by section 1051(a) 
     of Public Law 108-375 (118 Stat. 2053)) is redesignated as 
     section 2614 and is amended by redesignating the second 
     subsection (c) as subsection (d).
       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 155 is revised to 
     reflect the redesignation of such section by subparagraph 
     (A).
       (20) Section 2613(b) is amended by striking ``In the'' and 
     inserting ``In this''.
       (21) Section 2692(b)(9) is amended by striking ``materiel'' 
     and inserting ``material''.
       (22) Section 2694a(c) is amended in the subsection heading 
     by striking ``Revisionary'' and inserting ``Reversionary''.
       (23) Section 2703(h) is amended by striking ``subsection'' 
     in the first sentence and inserting ``section''.
       (24) Section 2722(c)(2) is amended by striking ``section 
     921'' and inserting ``section 921(a)''.
       (25) Section 2784a(a)(2) is amended by striking ``care'' 
     and inserting ``card''.
       (26) Section 2831(f)(2) is amended by striking 
     ``enviromental'' and inserting ``environmental''.
       (27) Section 3911(b) is amended--
       (A) in paragraph (1), by striking the second comma after 
     ``paragraph (2)''; and
       (B) in paragraph (2), by striking ``the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2006'' and inserting ``January 6, 2006,''.
       (28) Section 4342(a)(9) is amended by striking ``cadet'' 
     and inserting ``cadets''.
       (29) Section 4544(d) is amended in the subsection heading 
     by striking ``Arangement'' and inserting ``Arrangement''.
       (30) Section 4687(c) is amended by striking ``section 
     921(10)'' and inserting ``section 921(a)(10)''.
       (31) The item relating to section 6086 in the table of 
     sections at the beginning of chapter 557 is amended by 
     striking the semicolon and inserting a colon.
       (32) The table of sections at the beginning of chapter 561 
     is amended--
       (A) in the item relating to section 6154, by striking the 
     semicolon and inserting a colon; and
       (B) by striking the item relating to section 6161 and 
     inserting the following:

``6161. Settlement of accounts: remission or cancellation of 
              indebtedness of members.''.
       (33) Section 6323(a)(2) is amended--
       (A) in subparagraph (A), by striking the second comma after 
     ``subparagraph (B)''; and
       (B) in subparagraph (B), by striking ``the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2006'' and inserting ``January 6, 2006,''.
       (34) The item relating to section 6965 in the table of 
     sections at the beginning of chapter 603 is amended by 
     striking the semicolon and inserting a colon.
       (35) The item relating to section 7081 in the table of 
     sections at the beginning of chapter 607 is amended by 
     striking the first semicolon and inserting a colon.
       (36) Section 7306b(b)(1) is amended by striking ``section 
     2(14)'' and inserting ``section 3(14)''.
       (37) Section 8911(b) is amended--
       (A) in paragraph (1), by striking the second comma after 
     ``paragraph (2)''; and
       (B) in paragraph (2), by striking ``the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2006'' and inserting ``January 6, 2006,''.
       (38) Section 9342(a)(9) is amended by striking ``cadet'' 
     and inserting ``cadets''.
       (39) Section 9355(c)(1) is amended by striking ``board'' 
     and inserting ``Board''.
       (40) Section 12731(a)(3) is amended by striking ``before 
     the end of the 180-day period beginning on the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2005'' and inserting ``before April 25, 2005''.
       (41) Section 12741 is amended by striking ``under 
     subsection (b)'' in subsections (c) and (d) and inserting 
     ``under subsection (a)''.
       (42) Section 18233(f)(2) is amended by striking the comma 
     after ``purchase''.
       (b) Title 32, United States Code.--Title 32, United States 
     Code, is amended as follows:
       (1) Section 902 is amended by striking ``(a)'' before ``The 
     Secretary''.
       (2) Section 908(b)(1) is amended by striking ``subsection 
     (i)'' and inserting ``subsection (i)(13)''.
       (c) Title 37, United States Code.--Title 37, United States 
     Code, is amended as follows:
       (1) Section 210(c)(6) is amended by striking ``Advisor 
     for'' and inserting ``Advisor to''.
       (2) Section 301(f)(2)(C) is amended by striking the comma 
     after ``the term''.
       (3) Section 308g(f) is amended by striking the second 
     period at the end.
       (4) Section 308j is amended by striking subsection (g) and 
     inserting the following new subsection:
       ``(g) Repayment.--A person who enters into an agreement 
     under this section and receives all or part of the bonus 
     under the agreement, but who does not accept a commission or 
     an appointment as an officer or does not commence to 
     participate or does not satisfactorily participate in the 
     Selected Reserve for the total period of service specified in 
     the agreement, shall be subject to the repayment provisions 
     of section 303a(e) of this title.''.
       (5) The table of sections at the beginning of chapter 7 is 
     amended--
       (A) by striking the item relating to section 407 and 
     inserting the following:

``407. Travel and transportation allowances: dislocation allowance.''; 
              and

       (B) by striking the item relating to section 425 and 
     inserting the following:

``425. United States Navy Band; United States Marine Corps Band: 
              allowances while on concert tour.''.


[[Page 20837]]


       (6) Section 402a(b)(3)(B) is amended by striking ``section 
     310 of this section'' and inserting ``section 310 of this 
     title''.
       (7) Section 414(c) is amended by striking ``, or the Senior 
     Enlisted Advisor for the Chairman of the Joint Chiefs of 
     Staff'' before the period at the end.
       (8) The heading of section 1010 is amended to read as 
     follows:

     ``Sec. 1010. Commissioned officers: promotions; effective 
       date for pay and allowances''.

       (d) Public Law 109-272.--Effective as of August 14, 2006, 
     and as if included therein as enacted, section 2(a) of Public 
     Law 109-272 (120 Stat. 770; 16 U.S.C. 431 note) is amended by 
     striking ``division E'' and inserting ``division J''.
       (e) National Defense Authorization Act for Fiscal Year 
     2006.--Effective as of January 6, 2006, and as if included 
     therein as enacted, the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163) is amended as 
     follows:
       (1) Section 341(e) (119 Stat. 3199) is amended by striking 
     ``(a)(1)(E)'' and inserting ``(a)(1)(F)''.
       (2) Section 545(b) (119 Stat. 3254) is amended by striking 
     ``title''.
       (3) Section 606(a) (119 Stat. 3287; 37 U.S.C. 211 note) is 
     amended by striking ``title 10'' and inserting ``title 37''.
       (5) Section 608(b) (119 Stat. 3289) is amended--
       (A) in paragraph (1), by striking ``the first sentence'' 
     and inserting ``the second sentence''; and
       (B) in paragraph (2), by striking ``the second sentence'' 
     and inserting ``the third sentence''.
       (6) Section 685(a) (119 Stat. 3325) is amended by striking 
     ``Advisor for'' both places it appears and inserting 
     ``Advisor to''.
       (7) Section 687(a)(2) (119 Stat. 3327) is amended by 
     striking ``subsection (a)'' and inserting ``subsection (e)''.
       (8) Section 687(b)(15) (119 Stat. 3330) is amended--
       (A) by striking ``Subsection (d)'' and inserting 
     ``Subsection (e)''; and
       (B) in the matter inserted by that section, by striking 
     ``(d) Repayment.--'' and inserting ``(e) Repayment.--''.
       (9) Section 740(c) (119 Stat. 3359; 10 U.S.C. 1073 note) is 
     amended by inserting ``include'' after ``shall''.
       (f) Reconciliation of Duplicate Enactments.--
       (1) In executing to section 2554 of title 10, United States 
     Code, the identical amendments made by section 8126(c)(2) of 
     Public Law 109-148 (119 Stat. 2729) and section 1058(c) of 
     Public Law 109-163 (119 Stat. 3443), such amendments shall be 
     executed so as to appear only once in the law as amended.
       (2) In executing to section 109 of the Housing and 
     Community Development Act of 1974 the identical amendments 
     made by section 8126(d) of Public Law 109-148 (119 Stat. 
     2730) and section 1058(d) of Public Law 109-163 (119 Stat. 
     3443), such amendments shall be executed so as to appear only 
     once in the law as amended.
       (3) Section 8126 of Public Law 109-148 (119 Stat. 2728) is 
     repealed.
       (g) Ronald W. Reagan National Defense Authorization Act for 
     Fiscal Year 2005.--Effective as of October 28, 2004, and as 
     if included therein as enacted, the Ronald W. Reagan National 
     Defense Authorization Act for Fiscal Year 2005 (Public Law 
     108-375) is amended as follows:
       (1) Section 416 is amended--
       (A) in subsection (a)(1) (118 Stat. 1866), by inserting 
     ``the second place it appears'' before the semicolon at the 
     end; and
       (B) in subsection (g)(1) (118 Stat. 1868), by inserting 
     open quotation marks before ``(1) Reserve''.
       (2) Subsections (a)(2), (b)(2), and (c)(2) of section 544 
     (118 Stat. 1906) are amended by striking ``such title'' and 
     inserting ``such chapter''.
       (3) Section 554(1) (118 Stat. 1913) is amended by inserting 
     ``of'' in the quoted matter after ``a period''.
       (4) Section 593(a) (118 Stat. 1934; 10 U.S.C. 503 note) is 
     amended in the subsection heading by striking ``Screeing'' 
     and inserting ``Screening''.
       (5) Section 645 (118 Stat. 1962; 10 U.S.C. 1448 note) is 
     amended by redesignating the last subsection (relating to 
     definitions) as subsection (j).
       (6) Section 651(a)(5)(C) (118 Stat. 1966) is amended by 
     striking ``subsection (f)'' and inserting ``subsection (e)''.
       (7) Section 726(b)(1) (118 Stat. 1992) is amended by 
     striking ``(1)'' in the second quoted matter.
       (8) Section 731 (118 Stat. 1993; 10 U.S.C. 1074 note) is 
     amended by striking ``this title'' each place it appears in 
     subsections (a), (b)(3)(C), and (c)(1)(A) and inserting 
     ``this subtitle''.
       (9) Section 733(b)(2) (118 Stat. 1998; 10 U.S.C. 1074f 
     note) is amended by striking ``section 1301'' and inserting 
     ``section 731(b)''.
       (10) Section 801(b)(2)(A) (118 Stat. 2004) is amended--
       (A) by striking ``(7), (8), and (9)'' and inserting ``(7) 
     and (8)''; and
       (B) by striking ``(8), (9), and (10)'' and inserting ``(8) 
     and (9)''.
       (11) Section 818(b) (118 Stat. 2016) is amended by 
     inserting ``of subsection (b)'' after ``Paragraph (3)''.
       (12) Section 1103(a)(1) (118 Stat. 2072) is amended by 
     inserting ``basic'' after ``rates of'' in the first quoted 
     matter.
       (13) Section 1203(e)(2)(B) (118 Stat. 2079) is amended by 
     inserting ``office'' after ``and field'' in the first quoted 
     matter.
       (h) Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003.--Section 806(d) of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (10 U.S.C. 2302 note) 
     is amended in the subsection heading by striking ``Statues'' 
     and inserting ``Statutes''.
       (i) Coordination With Other Amendments.--For purposes of 
     applying amendments made by provisions of this Act other than 
     provisions of this section, this section shall be treated as 
     having been enacted immediately before the other provisions 
     of this Act.

     SEC. 1072. REVISION TO AUTHORITIES RELATING TO COMMISSION ON 
                   THE IMPLEMENTATION OF THE NEW STRATEGIC POSTURE 
                   OF THE UNITED STATES.

       Section 1051 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3431) is 
     amended--
       (1) in subsection (c)(1), by striking ``June 30, 2007'' and 
     inserting ``September 30, 2007''; and
       (2) in subsection (f), by striking ``July 30, 2007'' and 
     inserting ``November 30, 2007''.

     SEC. 1073. REVISED DEADLINE FOR SUBMISSION OF FINAL REPORT OF 
                   EMP COMMISSION.

       Section 1403(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-346), as amended by 
     section 1052(f) of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3434), is 
     amended by striking ``June 30, 2007'' and inserting 
     ``September 30, 2007''.

     SEC. 1074. EXTENSION OF RETURNING WORKER EXEMPTION TO H-2B 
                   NUMERICAL LIMITATION.

       (a) In General.--Section 214(g)(9) of the Immigration and 
     Nationality Act (8 U.S.C. 1184(g)(9)) is amended--
       (1) by amending the first sentence of subparagraph (A) to 
     read as follows: ``Subject to subparagraphs (B) and (C), an 
     alien who has already been counted toward the numerical 
     limitation of paragraph (1)(B) during fiscal year 2004, 2005, 
     or 2006 shall not again be counted toward such limitation 
     during fiscal year 2007.''; and
       (2) in subparagraph (B), by striking ``referred to in 
     subparagraph (A)'' and inserting ``to admit or otherwise 
     provide status under section 101(a)(15)(H)(ii)(b)''.
       (b) Deletion of Prior Sunset Provision.--Section 402(b)(1) 
     of the Save Our Small and Seasonal Businesses Act of 2005 
     (title IV of division B of Public Law 109-13; 119 Stat. 318; 
     8 U.S.C. 1184 note) is amended by striking ``2004,'' and all 
     that follows through the period at the end and inserting 
     ``2004.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2006. If this section is 
     enacted after October 1, 2006, the amendments made by this 
     section shall take effect as if enacted on such date.

     SEC. 1075. PATENT TERM EXTENSIONS FOR THE BADGES OF THE 
                   AMERICAN LEGION, THE AMERICAN LEGION WOMEN'S 
                   AUXILIARY, AND THE SONS OF THE AMERICAN LEGION.

       (a) Patent Term Extension for the Badge of the American 
     Legion.--The term of the design patent numbered 54,296 (for 
     the badge of the American Legion) is renewed and extended for 
     a period of 14 years beginning on the date of enactment of 
     this Act, with all the rights and privileges pertaining to 
     such patent.
       (b) Patent Term Extension for the Badge of the American 
     Legion Women's Auxiliary.--The term of the design patent 
     numbered 55,398 (for the badge of the American Legion Women's 
     Auxiliary) is renewed and extended for a period of 14 years 
     beginning on the date of enactment of this Act, with all the 
     rights and privileges pertaining to such patent.
       (c) Patent Term Extension for the Badge of the Sons of the 
     American Legion.--The term of the design patent numbered 
     92,187 (for the badge of the Sons of the American Legion) is 
     renewed and extended for a period of 14 years beginning on 
     the date of enactment of this Act, with all the rights and 
     privileges pertaining to such patent.

     SEC. 1076. USE OF THE ARMED FORCES IN MAJOR PUBLIC 
                   EMERGENCIES.

       (a) Use of the Armed Forces Authorized.--
       (1) In general.--Section 333 of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 333. Major public emergencies; interference with State 
       and Federal law

       ``(a) Use of Armed Forces in Major Public Emergencies.--(1) 
     The President may employ the armed forces, including the 
     National Guard in Federal service, to--
       ``(A) restore public order and enforce the laws of the 
     United States when, as a result of a natural disaster, 
     epidemic, or other serious public health emergency, terrorist 
     attack or incident, or other condition in any State or 
     possession of the United States, the President determines 
     that--
       ``(i) domestic violence has occurred to such an extent that 
     the constituted authorities of the State or possession are 
     incapable of maintaining public order; and
       ``(ii) such violence results in a condition described in 
     paragraph (2); or
       ``(B) suppress, in a State, any insurrection, domestic 
     violence, unlawful combination, or conspiracy if such 
     insurrection, violation, combination, or conspiracy results 
     in a condition described in paragraph (2).
       ``(2) A condition described in this paragraph is a 
     condition that--
       ``(A) so hinders the execution of the laws of a State or 
     possession, as applicable, and of the

[[Page 20838]]

     United States within that State or possession, that any part 
     or class of its people is deprived of a right, privilege, 
     immunity, or protection named in the Constitution and secured 
     by law, and the constituted authorities of that State or 
     possession are unable, fail, or refuse to protect that right, 
     privilege, or immunity, or to give that protection; or
       ``(B) opposes or obstructs the execution of the laws of the 
     United States or impedes the course of justice under those 
     laws.
       ``(3) In any situation covered by paragraph (1)(B), the 
     State shall be considered to have denied the equal protection 
     of the laws secured by the Constitution.
       ``(b) Notice to Congress.--The President shall notify 
     Congress of the determination to exercise the authority in 
     subsection (a)(1)(A) as soon as practicable after the 
     determination and every 14 days thereafter during the 
     duration of the exercise of that authority.''.
       (2) Proclamation to disperse.--Section 334 of such title is 
     amended by inserting ``or those obstructing the enforcement 
     of the laws'' after ``insurgents''.
       (3) Heading amendment.--The heading of chapter 15 of such 
     title is amended to read as follows:

    ``CHAPTER 15--ENFORCEMENT OF THE LAWS TO RESTORE PUBLIC ORDER''.

       (4) Clerical amendments.--(A) The tables of chapters at the 
     beginning of subtitle A of title 10, United States Code, and 
     at the beginning of part I of such subtitle, are each amended 
     by striking the item relating to chapter 15 and inserting the 
     following new item:

``15 Enforcement of the Laws to Restore Public Order.........331''.....

       (B) The table of sections at the beginning of chapter 15 of 
     such title is amended by striking the item relating to 
     sections 333 and inserting the following new item:

``333. Major public emergencies; interference with State and Federal 
              law.''.

       (b) Provision of Supplies, Services, and Equipment.--
       (1) In general.--Chapter 152 of such title is amended by 
     adding at the end the following new section:

     ``Sec. 2567. Supplies, services, and equipment: provision in 
       major public emergencies

       ``(a) Provision Authorized.--In any situation in which the 
     President determines to exercise the authority in section 
     333(a)(1)(A) of this title, the President may direct the 
     Secretary of Defense to provide supplies, services, and 
     equipment to persons affected by the situation.
       ``(b) Covered Supplies, Services, and Equipment.--The 
     supplies, services, and equipment provided under this section 
     may include food, water, utilities, bedding, transportation, 
     tentage, search and rescue, medical care, minor repairs, the 
     removal of debris, and other assistance necessary for the 
     immediate preservation of life and property.
       ``(c) Limitations.--(1) Supplies, services, and equipment 
     may be provided under this section--
       ``(A) only to the extent that the constituted authorities 
     of the State or possession concerned are unable to provide 
     such supplies, services, and equipment, as the case may be; 
     and
       ``(B) only until such authorities, or other departments or 
     agencies of the United States charged with the provision of 
     such supplies, services, and equipment, are able to provide 
     such supplies, services, and equipment.
       ``(2) The Secretary may provide supplies, services, and 
     equipment under this section only to the extent that the 
     Secretary determines that doing so will not interfere with 
     military preparedness or ongoing military operations or 
     functions.
       ``(d) Inapplicability of Certain Authorities.--The 
     provision of supplies, services, or equipment under this 
     section shall not be subject to the provisions of section 
     403(c) of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5170b(c)).''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2567. Supplies, services, and equipment: provision in major public 
              emergencies''.

       (c) Conforming Amendment.--Section 12304(c)(1) of such 
     title is amended by striking ``No unit'' and all that follows 
     through ``subsection (b),'' and inserting ``Except to perform 
     any of the functions authorized by chapter 15 or section 
     12406 of this title or by subsection (b), no unit or member 
     of a reserve component may be ordered to active duty under 
     this section''.

     SEC. 1077. INCREASED HUNTING AND FISHING OPPORTUNITIES FOR 
                   MEMBERS OF THE ARMED FORCES, RETIRED MEMBERS, 
                   AND DISABLED VETERANS.

       (a) Access for Members, Retired Members, and Disabled 
     Veterans.--Consistent with section 2671 of title 10, United 
     States Code, and using such funds as are made available for 
     this purpose, the Secretary of Defense shall ensure that 
     members of the Armed Forces, retired members, disabled 
     veterans, and persons assisting disabled veterans are able to 
     utilize lands under the jurisdiction of the Department of 
     Defense that are available for hunting or fishing.
       (b) Assessment.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary shall submit to 
     Congress a report containing the results of an assessment of 
     those lands under the jurisdiction of the Department of 
     Defense and suitable for hunting or fishing and describing 
     the actions necessary--
       (1) to further increase the acreage made available to 
     members of the Armed Forces, retired members, disabled 
     veterans, and persons assisting disabled veterans for hunting 
     and fishing; and
       (2) to make that acreage more accessible to disabled 
     veterans.
       (c) Recreational Activities on Santa Rosa Island.--The 
     Secretary of the Interior shall immediately cease the plan, 
     approved in the settlement agreement for case number 96-7412 
     WJR and case number 97-4098 WJR, to exterminate the deer and 
     elk on Santa Rosa Island, Channel Islands, California, by 
     helicopter and shall not exterminate or nearly exterminate 
     the deer and elk.
                  TITLE XI--CIVILIAN PERSONNEL MATTERS
Sec. 1101. Accrual of annual leave for members of the uniformed 
              services performing dual employment.
Sec. 1102. Strategy for improving the senior management, functional, 
              and technical workforce of the Department of Defense.
Sec. 1103. Three-year extension of authority for experimental personnel 
              management program for scientific and technical 
              personnel.
Sec. 1104. Reports on members of the Armed Forces and civilian 
              employees of the Department of Defense serving in the 
              legislative branch.
Sec. 1105. Extension of authority to waive annual limitation on total 
              compensation paid to Federal civilian employees.

     SEC. 1101. ACCRUAL OF ANNUAL LEAVE FOR MEMBERS OF THE 
                   UNIFORMED SERVICES PERFORMING DUAL EMPLOYMENT.

       Section 5534a of title 5, United States Code, is amended by 
     adding at the end the following new sentence: ``Such a member 
     also is entitled to accrue annual leave with pay in the 
     manner specified in section 6303(a) of this title for a 
     retired member of a uniformed service.''.

     SEC. 1102. STRATEGY FOR IMPROVING THE SENIOR MANAGEMENT, 
                   FUNCTIONAL, AND TECHNICAL WORKFORCE OF THE 
                   DEPARTMENT OF DEFENSE.

       (a) Inclusion in 2007 Strategic Human Capital Plan.--The 
     Secretary of Defense shall include in the March 1, 2007, 
     strategic human capital plan required by section 1122(c) of 
     the National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3453; 10 U.S.C. prec. 1580 
     note) a strategic plan to shape and improve the senior 
     management, functional, and technical workforce (including 
     scientists and engineers) of the Department of Defense.
       (b) Scope of Plan.--The strategic plan required by 
     subsection (a) shall cover, at a minimum, the following 
     categories of Department of Defense civilian personnel:
       (1) Appointees in the Senior Executive Service under 
     section 3131 of title 5, United States Code.
       (2) Persons serving in positions described in section 
     5376(a) of title 5, United States Code.
       (3) Highly qualified experts appointed pursuant to section 
     9903 of title 5, United States Code.
       (4) Scientists and engineers appointed pursuant to section 
     342(b) of the National Defense Authorization Act for Fiscal 
     Year 1995 (Public Law 103-337; 108 Stat. 2721), as amended by 
     section 1114 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into by 
     law by Public Law 106-398 (114 Stat. 1654A-315)).
       (5) Scientists and engineers appointed pursuant to section 
     1101 of the Strom Thurmond National Defense Authorization Act 
     for Fiscal Year 1999 (5 U.S.C. 3104 note).
       (6) Persons serving in the Defense Intelligence Senior 
     Executive Service under section 1606 of title 10, United 
     States Code.
       (7) Persons serving in Intelligence Senior Level positions 
     under section 1607 of title 10, United States Code.
       (c) Contents of Plan.--The strategic plan required by 
     subsection (a) shall include--
       (1) an assessment of--
       (A) the needs of the Department of Defense for senior 
     management, functional, and technical personnel (including 
     scientists and engineers) in light of recent trends and 
     projected changes in the mission and organization of the 
     Department and in light of staff support needed to accomplish 
     that mission;
       (B) the capability of the existing civilian employee 
     workforce of the Department to meet requirements relating to 
     the mission of the Department, including the impact on that 
     capability of projected trends in the senior management, 
     functional, and technical personnel workforce of the 
     Department based on expected losses due to retirement and 
     other attrition; and
       (C) gaps in the existing or projected civilian employee 
     workforce of the Department that should be addressed to 
     ensure that the Department has continued access to the senior 
     management, functional, and technical personnel (including 
     scientists and engineers) it needs; and
       (2) a plan of action for developing and reshaping the 
     senior management, functional, and technical workforce of the 
     Department to address the gaps identified under paragraph 
     (1)(C), including--
       (A) any legislative or administrative action that may be 
     needed to adjust the requirements applicable to any category 
     of civilian personnel identified in subsection (b) or to 
     establish a new category of senior management or technical 
     personnel;
       (B) any changes in the number of personnel authorized in 
     any category of personnel identified in subsection (b) that 
     may be needed to address such gaps and effectively meet the 
     needs of the Department;

[[Page 20839]]

       (C) any changes in the rates or methods of pay for any 
     category of personnel identified in subsection (b) that may 
     be needed to address inequities and ensure that the 
     Department has full access to appropriately qualified 
     personnel to address such gaps and meet the needs of the 
     Department;
       (D) specific recruiting and retention goals, including the 
     program objectives of the Department to be achieved through 
     such goals;
       (E) specific strategies for developing, training, 
     deploying, compensating, motivating, and designing career 
     paths and career opportunities for the senior management, 
     functional, and technical workforce of the Department, 
     including the program objectives of the Department to be 
     achieved through such strategies; and
       (F) specific steps that the Department has taken or plans 
     to take to ensure that the senior management, functional, and 
     technical workforce of the Department is managed in 
     compliance with the requirements of section 129 of title 10, 
     United States Code.

     SEC. 1103. THREE-YEAR EXTENSION OF AUTHORITY FOR EXPERIMENTAL 
                   PERSONNEL MANAGEMENT PROGRAM FOR SCIENTIFIC AND 
                   TECHNICAL PERSONNEL.

       Section 1101(e)(1) of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note) 
     is amended by striking ``September 30, 2008'' and inserting 
     ``September 30, 2011''.

     SEC. 1104. REPORTS ON MEMBERS OF THE ARMED FORCES AND 
                   CIVILIAN EMPLOYEES OF THE DEPARTMENT OF DEFENSE 
                   SERVING IN THE LEGISLATIVE BRANCH.

       (a) Quarterly Reports on Details and Fellowships of Long 
     Duration.--Not later than 120 days after the date of the 
     enactment of this Act, and quarterly thereafter, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the members of the Armed 
     Forces and civilian employees of the Department of Defense 
     who, as of the date of such report, have served continuously 
     in the Legislative Branch for more than 12 consecutive months 
     in one or a combination of covered legislative details or 
     fellowships.
       (b) Reports on Certain Military Details and Fellowships.--
     If a member of the Armed Forces is assigned to a covered 
     legislative detail or fellowship as the last tour of duty of 
     such member before retirement or separation from the Armed 
     Forces in contravention of the regulations of the Department 
     of Defense, the Secretary shall submit to the congressional 
     defense committees a report on the assignment of such member 
     to such covered legislative detail or fellowship. The report 
     shall include a rationale for the waiver of the regulations 
     of the Department in order to permit the detail or 
     fellowship.
       (c) Report Elements.--Each report under subsection (a) or 
     (b) shall set forth, for each member of the Armed Forces or 
     civilian employee of the Department of Defense covered by 
     such report, the following:
       (1) The name of such member or employee.
       (2) In the case of a member, the Armed Force of such 
     member.
       (3) The committee or member of Congress to which such 
     member or employee is detailed or assigned.
       (4) A general description of the projects or tasks 
     undertaken or to be undertaken, as applicable, by such member 
     or employee as a detailee, fellow, or both.
       (5) The anticipated termination date of the current detail 
     or fellowship of such member or employee.
       (d) Covered Legislative Detail or Fellowship Defined.--In 
     this section, the term ``covered legislative detail or 
     fellowship'' means the following:
       (1) A detail under the provisions of Department of Defense 
     Directive 1000.17.
       (2) A legislative fellowship (including a legislative 
     fellowship under the provisions of Department of Defense 
     Directive 1322.6).

     SEC. 1105. EXTENSION OF AUTHORITY TO WAIVE ANNUAL LIMITATION 
                   ON TOTAL COMPENSATION PAID TO FEDERAL CIVILIAN 
                   EMPLOYEES.

       Section 1105 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3450) is 
     amended--
       (1) in subsection (a), by inserting ``and 2007'' after 
     ``2006''; and
       (2) in subsection (b)--
       (A) by striking ``$200,000'' in the heading; and
       (B) by striking ``a calendar year'' and inserting ``2006 
     and $212,100 in 2007''.
             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                  Subtitle A--Assistance and Training

Sec. 1201. Logistic support for allied forces participating in combined 
              operations.
Sec. 1202. Temporary authority to use acquisition and cross-servicing 
              agreements to lend certain military equipment to foreign 
              forces in Iraq and Afghanistan for personnel protection 
              and survivability.
Sec. 1203. Recodification and revision to law relating to Department of 
              Defense humanitarian demining assistance.
Sec. 1204. Enhancements to Regional Defense Combating Terrorism 
              Fellowship Program.
Sec. 1205. Participation of the Department of Defense in multinational 
              military centers of excellence.
Sec. 1206. Modification and extension of authorities relating to 
              program to build the capacity of foreign military forces.
Sec. 1207. Authority for distribution to certain foreign personnel of 
              education and training materials and information 
              technology to enhance military interoperability.

     Subtitle B--Nonproliferation Matters and Countries of Concern

Sec. 1211. North Korea.
Sec. 1212. Report on participation of multinational partners in the 
              United Nations Command in the Republic of Korea.
Sec. 1213. Intelligence on Iran.
Sec. 1214. Sense of Congress on United States policy on the nuclear 
              programs of Iran.

                       Subtitle C--Other Matters

Sec. 1221. Exclusion of petroleum, oil, and lubricants from limitations 
              on annual amount of liabilities the United States may 
              accrue under acquisition and cross-servicing agreements.
Sec. 1222. Modification of limitations on assistance under the American 
              Servicemembers' Protection Act of 2002.
Sec. 1223. Humanitarian support for Iraqi children in urgent need of 
              medical care.
Sec. 1224. Sense of Congress opposing the granting of amnesty by the 
              government of Iraq to persons known to have attacked, 
              killed, or wounded members of the United States Armed 
              Forces in Iraq.
Sec. 1225. Annual reports on United States contributions to the United 
              Nations.
Sec. 1226. Comprehensive regional strategy and annual reports on 
              Somalia.
Sec. 1227. Report on the implementation of the Darfur Peace Agreement.
Sec. 1228. Sense of Congress concerning cooperation with Russia on 
              issues pertaining to missile defense.
Sec. 1229. Sense of Congress calling for convening of a summit for a 
              comprehensive political agreement for Iraq.
Sec. 1230. Sense of Congress on the commendable actions of the Armed 
              Forces in Iraq.
Sec. 1231. Annual report on foreign sales of significant military 
              equipment manufactured in the United States.
                  Subtitle A--Assistance and Training

     SEC. 1201. LOGISTIC SUPPORT FOR ALLIED FORCES PARTICIPATING 
                   IN COMBINED OPERATIONS.

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

     ``Sec. 127c. Allied forces participating in combined 
       operations: authority to provide logistic support, 
       supplies, and services

       ``(a) Authority.--Subject to subsections (b) and (c), the 
     Secretary of Defense may provide logistic support, supplies, 
     and services to allied forces participating in a combined 
     operation with the armed forces. Provision of such support, 
     supplies, and services to the forces of an allied nation may 
     be made only with the concurrence of the Secretary of State.
       ``(b) Limitations.--(1) The authority provided by 
     subsection (a) may be used only in accordance with the Arms 
     Export Control Act and other export control laws of the 
     United States.
       ``(2) The authority provided by subsection (a) may be used 
     only for a combined operation--
       ``(A) that is carried out during active hostilities or as 
     part of a contingency operation or a noncombat operation 
     (including an operation in support of the provision of 
     humanitarian or foreign disaster assistance, a country 
     stabilization operation, or a peacekeeping operation under 
     chapter VI or VII of the Charter of the United Nations); and
       ``(B) in a case in which the Secretary of Defense 
     determines that the allied forces to be provided logistic 
     support, supplies, and services--
       ``(i) are essential to the success of the combined 
     operation; and
       ``(ii) would not be able to participate in the combined 
     operation but for the provision of such logistic support, 
     supplies, and services by the Secretary.
       ``(c) Limitations on Value.--(1) Except as provided in 
     paragraph (2), the value of logistic support, supplies, and 
     services provided under this section in any fiscal year may 
     not exceed $100,000,000.
       ``(2) In addition to any logistic support, supplies, and 
     services provided under subsection (a) that are covered by 
     paragraph (1), the value of logistic support, supplies, and 
     services provided under this section solely for the purposes 
     of enhancing the interoperability of the logistical support 
     systems of military forces participating in combined 
     operation of the United States in order to facilitate such 
     operations may not, in any fiscal year, exceed $5,000,000.
       ``(d) Annual Report.--(1) Not later than December 31 each 
     year, the Secretary of Defense shall submit to the Committee 
     on Armed Services and the Committee on Foreign Relations of 
     the Senate and the Committee on Armed Services and the 
     Committee on International Relations of the House of 
     Representatives a report on the use of the authority provided 
     by subsection (a) during the preceding fiscal year.
       ``(2) Each report under paragraph (1) shall be prepared in 
     coordination with the Secretary of State.

[[Page 20840]]

       ``(3) Each report under paragraph (1) shall include, for 
     the fiscal year covered by the report, the following:
       ``(A) Each nation provided logistic support, supplies, and 
     services through the use of the authority provided by 
     subsection (a).
       ``(B) For each such nation, a description of the type and 
     value of logistic support, supplies, and services so 
     provided.
       ``(e) Definition.--In this section, the term `logistic 
     support, supplies, and services' has the meaning given that 
     term in section 2350(1) of this title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 127b the following new item:
``127c. Allied forces participating in combined operations: authority 
              to provide logistic support, supplies, and services.''.

     SEC. 1202. TEMPORARY AUTHORITY TO USE ACQUISITION AND CROSS-
                   SERVICING AGREEMENTS TO LEND CERTAIN MILITARY 
                   EQUIPMENT TO FOREIGN FORCES IN IRAQ AND 
                   AFGHANISTAN FOR PERSONNEL PROTECTION AND 
                   SURVIVABILITY.

       (a) Authority.--
       (1) In general.--Subject to paragraphs (2), (3), and (4), 
     the Secretary of Defense may treat covered military equipment 
     as logistic support, supplies, and services under subchapter 
     I of chapter 138 of title 10, United States Code, for the 
     purpose of providing for the use of such equipment by 
     military forces of a nation participating in combined 
     operations with the United States in Iraq or Afghanistan.
       (2) Required determinations.--Equipment may be provided to 
     the military forces of a nation under the authority of this 
     section only upon--
       (A) a determination by the Secretary of Defense that the 
     United States forces in the combined operation have no 
     unfilled requirements for that equipment; and
       (B) a determination by the Secretary of Defense, with the 
     concurrence of the Secretary of State, that it is in the 
     national security interest of the United States to provide 
     for the use of such equipment by the military forces of that 
     nation under this section.
       (3) Limitation on use of equipment.--Equipment provided to 
     the military forces of a nation under the authority of this 
     section may be used by those forces only in Iraq or 
     Afghanistan and only for personnel protection or to aid in 
     the personnel survivability of those forces.
       (4) Limitation on duration of provision of equipment.--
     Equipment provided to the military forces of a nation under 
     the authority of this section may be used by the military 
     forces of that nation for not longer than one year.
       (b) Semiannual Reports to Congressional Committees.--
       (1) Use of authority during first six months of fiscal 
     year.--If the authority provided in subsection (a) is 
     exercised during the first six months of a fiscal year, the 
     Secretary of Defense shall submit to the specified 
     congressional committees a report on that exercise of such 
     authority not later than the following April 30.
       (2) Use of authority during second six months of fiscal 
     year.--If the authority provided in subsection (a) is 
     exercised during the second six months of a fiscal year, the 
     Secretary of Defense shall submit to the specified 
     congressional committees a report on that exercise of such 
     authority not later than the following October 30.
       (3) Content.--Each report under paragraph (1) or (2) shall 
     include, with respect to each exercise of the authority 
     provided in subsection (a) during the period covered by the 
     report, the following:
       (A) A description of the basis for the determination of the 
     Secretary of Defense that it is in the national security 
     interests of the United States to provide for the use of 
     covered military equipment in the manner authorized in 
     subsection (a).
       (B) Identification of each foreign force that receives such 
     equipment.
       (C) A description of the type, quantity, and value of the 
     equipment provided to each foreign force that receives such 
     equipment.
       (D) A description of the terms and duration of the 
     provision of the equipment to each foreign force that 
     receives such equipment.
       (4) Coordination.--Each report under paragraph (1) or (2) 
     shall be prepared in coordination with the Secretary of 
     State.
       (c) Limitations on Provision of Military Equipment.--The 
     provision of military equipment under this section is subject 
     to the provisions of the Arms Export Control Act (22 U.S.C. 
     2751 et seq.) and of any other export control process under 
     laws relating to the transfer of military equipment and 
     technology to foreign nations.
       (d) Definitions.--In this section:
       (1) The term ``covered military equipment'' means items 
     designated as significant military equipment in categories I, 
     II, III, VII, XI, and XIII of the United States Munitions 
     List under section 38(a)(1) of the Arms Export Control Act 
     (22 U.S.C. 2778(a)(1)).
       (2) The term ``specified congressional committees'' means--
       (A) the Committee on Armed Services and the Committee on 
     Foreign Relations of the Senate; and
       (B) the Committee on Armed Services and the Committee on 
     International Relations of the House of Representatives.
       (e) Expiration.--The authority to provide military 
     equipment to the military forces of a foreign nation under 
     this section expires on September 30, 2008.

     SEC. 1203. RECODIFICATION AND REVISION TO LAW RELATING TO 
                   DEPARTMENT OF DEFENSE HUMANITARIAN DEMINING 
                   ASSISTANCE.

       (a) Repeal.--Section 401 of title 10, United States Code, 
     is amended--
       (1) in subsection (a), by striking paragraph (4);
       (2) in subsection (b)--
       (A) by striking ``(1)'' after ``(b)''; and
       (B) by striking paragraph (2);
       (3) in subsection (c), by striking paragraphs (2) and (3); 
     and
       (4) in subsection (e), by striking paragraph (5).
       (b) Recodification and Revision.--
       (1) In general.--Chapter 20 of such title is amended by 
     adding at the end the following new section:

     ``Sec. 407. Humanitarian demining assistance: authority; 
       limitations

       ``(a) Authority.--(1) Under regulations prescribed by the 
     Secretary of Defense, the Secretary of a military department 
     may carry out humanitarian demining assistance in a country 
     if the Secretary concerned determines that the assistance 
     will promote either--
       ``(A) the security interests of both the United States and 
     the country in which the activities are to be carried out; or
       ``(B) the specific operational readiness skills of the 
     members of the armed forces who participate in the 
     activities.
       ``(2) Humanitarian demining assistance under this section 
     shall complement, and may not duplicate, any other form of 
     social or economic assistance which may be provided to the 
     country concerned by any other department or agency of the 
     United States.
       ``(3) The Secretary of Defense shall ensure that no member 
     of the armed forces, while providing humanitarian demining 
     assistance under this section--
       ``(A) engages in the physical detection, lifting, or 
     destroying of landmines or other explosive remnants of war 
     (unless the member does so for the concurrent purpose of 
     supporting a United States military operation); or
       ``(B) provides such assistance as part of a military 
     operation that does not involve the armed forces.
       ``(b) Limitations.--(1) Humanitarian demining assistance 
     may not be provided under this section unless the Secretary 
     of State specifically approves the provision of such 
     assistance.
       ``(2) Any authority provided under any other provision of 
     law to provide humanitarian demining assistance to a foreign 
     country shall be carried out in accordance with, and subject 
     to, the limitations prescribed in this section.
       ``(c) Expenses.--(1) Expenses incurred as a direct result 
     of providing humanitarian demining assistance under this 
     section to a foreign country shall be paid for out of funds 
     specifically appropriated for the purpose of the provision by 
     the Department of Defense of overseas humanitarian 
     assistance.
       ``(2) Expenses covered by paragraph (1) include the 
     following:
       ``(A) Travel, transportation, and subsistence expenses of 
     Department of Defense personnel providing such assistance.
       ``(B) The cost of any equipment, services, or supplies 
     acquired for the purpose of carrying out or supporting 
     humanitarian demining activities, including any nonlethal, 
     individual, or small-team equipment or supplies for clearing 
     landmines or other explosive remnants of war that are to be 
     transferred or otherwise furnished to a foreign country in 
     furtherance of the provision of assistance under this 
     section.
       ``(3) The cost of equipment, services, and supplies 
     provided in any fiscal year under this section may not exceed 
     $10,000,000.
       ``(d) Annual Report.--The Secretary of Defense shall 
     include in the annual report under section 401 of this title 
     a separate discussion of activities carried out under this 
     section during the preceding fiscal year, including--
       ``(1) a list of the countries in which humanitarian 
     demining assistance was carried out during the preceding 
     fiscal year;
       ``(2) the type and description of humanitarian demining 
     assistance carried out in each country during the preceding 
     fiscal year, as specified in paragraph (1);
       ``(3) a list of countries in which humanitarian demining 
     assistance could not be carried out during the preceding 
     fiscal year due to insufficient numbers of Department of 
     Defense personnel to carry out such activities; and
       ``(4) the amount expended in carrying out such assistance 
     in each such country during the preceding fiscal year.
       ``(e) Humanitarian Demining Assistance Defined.--In this 
     section, the term `humanitarian demining assistance', as it 
     relates to training and support, means detection and 
     clearance of landmines and other explosive remnants of war, 
     including activities related to the furnishing of education, 
     training, and technical assistance with respect to the 
     detection and clearance of landmines and other explosive 
     remnants of war.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``407. Humanitarian demining assistance: authority; limitations.''.

     SEC. 1204. ENHANCEMENTS TO REGIONAL DEFENSE COMBATING 
                   TERRORISM FELLOWSHIP PROGRAM.

       (a) Authorized Purposes.--Subsection (a) of section 2249c 
     of title 10, United States Code, is amended by striking 
     ``associated with'' and all

[[Page 20841]]

     that follows and inserting: ``associated with the education 
     and training of foreign military officers, ministry of 
     defense officials, or security officials at military or 
     civilian educational institutions, regional centers, 
     conferences, seminars, or other training programs conducted 
     under the Regional Defense Combating Terrorism Fellowship 
     Program. Costs for which payment may be made under this 
     section include the costs of transportation and travel and 
     subsistence costs.''.
       (b) Annual Limitation on Amount Obligated.--Subsection (b) 
     of such section is amended by striking ``$20,000,000'' and 
     inserting ``$25,000,000''.
       (c) Obligation of Funds Across Fiscal Years.--Subsection 
     (b) of such section is further amended by adding at the end 
     the following new sentence: ``Amounts available under the 
     authority in subsection (a) for a fiscal year may be used for 
     programs that begin in such fiscal year but end in the next 
     fiscal year.''.
       (d) Clerical Amendments.--
       (1) Reference to program.--Subsection (c)(3) of such 
     section is amended by striking ``Regional Defense 
     Counterterrorism Fellowship Program'' and inserting ``program 
     referred to in subsection (a)''.
       (2) Section heading.--The heading of such section is 
     amended to read as follows:

     ``Sec. 2249c. Regional Defense Combating Terrorism Fellowship 
       Program: authority to use appropriated funds for costs 
       associated with education and training of foreign 
       officials''.

       (3) Table of sections.--The item relating to such section 
     in the table of sections at the beginning of subchapter I of 
     chapter 134 of such title is amended to read as follows

``2249c.  Regional Defense Combating Terrorism Fellowship Program: 
              authority to use appropriated funds for costs associated 
              with education and training of foreign officials.''.

     SEC. 1205. PARTICIPATION OF THE DEPARTMENT OF DEFENSE IN 
                   MULTINATIONAL MILITARY CENTERS OF EXCELLENCE.

       (a) Participation Authorized.--During fiscal year 2007, the 
     Secretary of Defense may, with the concurrence of the 
     Secretary of State, authorize the participation of members of 
     the Armed Forces and Department of Defense civilian personnel 
     in any multinational military center of excellence hosted by 
     any nation or combination of nations referred to in 
     subsection (b) for purposes of--
       (1) enhancing the ability of military forces and civilian 
     personnel of the nations participating in such center to 
     engage in joint exercises or coalition or international 
     military operations; or
       (2) improving interoperability between the Armed Forces of 
     the United States and the military forces of friendly foreign 
     nations.
       (b) Covered Nations.--The nations referred to in this 
     subsection are the following:
       (1) The United States.
       (2) Any member nation of the North Atlantic Treaty 
     Organization (NATO).
       (3) Any major non-NATO ally.
       (4) Any other friendly foreign nation identified by the 
     Secretary of Defense, with the concurrence of the Secretary 
     of State, for purposes of this section.
       (c) Definitions.--In this section:
       (1) Multinational military center of excellence.--The term 
     ``multinational military center of excellence'' means an 
     entity sponsored by one or more nations that is accredited 
     and approved by the Military Committee of the North Atlantic 
     Treaty Organization (NATO) as offering recognized expertise 
     and experience to personnel participating in the activities 
     of such entity for the benefit of NATO by providing such 
     personnel opportunities to--
       (A) enhance education and training;
       (B) improve interoperability and capabilities;
       (C) assist in the development of doctrine; and
       (D) validate concepts through experimentation.
       (2) Major non-nato ally.--The term ``major non-NATO ally'' 
     means a country (other than a member nation of the North 
     Atlantic Treaty Organization) that is designated as a major 
     non-NATO ally pursuant to section 517 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2321k).
       (d) Memorandum of Understanding.--
       (1) Requirement.--The participation of members of the Armed 
     Forces or Department of Defense civilian personnel in a 
     multinational military center of excellence under subsection 
     (a) shall be in accordance with the terms of one or more 
     memoranda of understanding entered into by the Secretary of 
     Defense, with the concurrence of the Secretary of State, and 
     the foreign nation or nations concerned.
       (2) Scope.--If Department of Defense facilities, equipment, 
     or funds are used to support a multinational military center 
     of excellence under subsection (a), the memoranda of 
     understanding under paragraph (1) with respect to that center 
     shall provide details of any cost-sharing arrangement or 
     other funding arrangement.
       (e) Availability of Appropriated Funds.--
       (1) Availability.--Funds appropriated to the Department of 
     Defense for operation and maintenance are available as 
     follows:
       (A) To pay the United States share of the operating 
     expenses of any multinational military center of excellence 
     in which the United States participates under this section.
       (B) To pay the costs of the participation of members of the 
     Armed Forces and Department of Defense civilian personnel in 
     multinational military centers of excellence under this 
     section, including the costs of expenses of such 
     participants.
       (2) Limitation on amount.--The amount available under 
     paragraph (1)(A) in fiscal year 2007 for the expenses 
     referred to in that paragraph may not exceed $3,000,000.
       (3) Limitation on use of funds.--No funds may be used under 
     this section to fund the pay or salaries of members of the 
     Armed Forces and Department of Defense civilian personnel who 
     participate in multinational military centers of excellence 
     under this section.
       (f) Use of Department of Defense Facilities and 
     Equipment.--Facilities and equipment of the Department of 
     Defense may be used for purposes of the support of 
     multinational military centers of excellence under this 
     section that are hosted by the Department.
       (g) Report on Use of Authority.--
       (1) Report required.--Not later than October 31, 2007, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a report on the use of the 
     authority in this section during fiscal year 2007.
       (2) Elements.--The report required by paragraph (1) shall 
     include the following:
       (A) A detailed description of the participation of the 
     Department of Defense, and of members of the Armed Forces and 
     civilian personnel of the Department, in multinational 
     military centers of excellence under the authority of this 
     section during fiscal year 2007.
       (B) For each multinational military center of excellence in 
     which the Department of Defense, or members of the Armed 
     Forces or civilian personnel of the Department, so 
     participated--
       (i) a description of such multinational military center of 
     excellence;
       (ii) a description of the activities participated in by the 
     Department, or by members of the Armed Forces or civilian 
     personnel of the Department; and
       (iii) a statement of the costs of the Department for such 
     participation, including--

       (I) a statement of the United States share of the expenses 
     of such center and a statement of the percentage of the 
     United States share of the expenses of such center to the 
     total expenses of such center; and
       (II) a statement of the amount of such costs (including a 
     separate statement of the amount of costs paid for under the 
     authority of this section by category of costs).

     SEC. 1206. MODIFICATION AND EXTENSION OF AUTHORITIES RELATING 
                   TO PROGRAM TO BUILD THE CAPACITY OF FOREIGN 
                   MILITARY FORCES.

       (a) Program Implementation Vested in Secretary of 
     Defense.--
       (1) Authority.--Subsection (a) of section 1206 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3456) is amended by striking 
     by ``The President may direct the Secretary of Defense to'' 
     and inserting ``The Secretary of Defense, with the 
     concurrence of the Secretary of State, may''.
       (2) Conforming amendments.--Such section is further 
     amended--
       (A) in subsection (b), by striking ``directed by the 
     President'' in paragraphs (1) and (2);
       (B) in subsection (c)--
       (i) in paragraph (1), by striking ``directed by the 
     President''; and
       (ii) in paragraphs (2) and (3), by striking ``The 
     President'' and inserting ``The Secretary of Defense'';
       (C) in subsection (d), by striking ``directed by the 
     President'' both places it appears; and
       (D) in subsection (e)(2), by striking ``as directed by the 
     President''.
       (b) Funding.--Subsection (c)(1) of such section is further 
     amended--
       (1) by striking ``$200,000,000'' and inserting 
     ``$300,000,000''; and
       (2) by striking ``defense-wide''.
       (c) Notification to Congress.--Paragraph (1) of subsection 
     (e) of such section is amended to read as follows:
       ``(1) Notification.--Whenever the Secretary of Defense 
     decides, with the concurrence of the Secretary of State, to 
     conduct or support a program authorized under subsection (a), 
     the Secretary of Defense shall submit to Congress a 
     notification in writing of that decision. Any such 
     notification shall be prepared in coordination with the 
     Secretary of State.''.
       (d) One-Year Extension of Program Authority.--Subsection 
     (g) of such section is amended to read as follows:
       ``(g) Termination of Program.--The authority provided under 
     subsection (a) terminates at the close of September 30, 2008. 
     Any program directed before that date may be completed, but 
     only using funds available for fiscal year 2006, 2007, or 
     2008.''.

     SEC. 1207. AUTHORITY FOR DISTRIBUTION TO CERTAIN FOREIGN 
                   PERSONNEL OF EDUCATION AND TRAINING MATERIALS 
                   AND INFORMATION TECHNOLOGY TO ENHANCE MILITARY 
                   INTEROPERABILITY.

       (a) Distribution Authorized.--To enhance interoperability 
     between the Armed Forces and military forces of friendly 
     foreign countries, the Secretary of Defense may--
       (1) provide to personnel referred to in subsection (b) 
     electronically-distributed learning content for the education 
     and training of such personnel for the development and 
     enhancement of allied and friendly military capabilities for 
     multinational operations, including joint exercises and 
     coalition operations; and
       (2) provide information technology, including computer 
     software developed for such purpose, but only to the extent 
     necessary to support the

[[Page 20842]]

     use of such learning content for the education and training 
     of such personnel.
       (b) Authorized Recipients.--The personnel to whom learning 
     content and information technology may be provided under 
     subsection (a) are military and civilian personnel of a 
     friendly foreign government, with the permission of that 
     government.
       (c) Education and Training.--Any education and training 
     provided under subsection (a) shall include the following:
       (1) Internet-based education and training.
       (2) Advanced distributed learning and similar Internet 
     learning tools, as well as distributed training and computer 
     assisted exercises.
       (d) Secretary of State Concurrence in Certain Activities.--
     In the case of any activity proposed to be undertaken under 
     this section that is not authorized by another provision of 
     law, the Secretary of Defense may undertake such activity 
     only with the concurrence of the Secretary of State.
       (e) Applicability of Export Control Regimes.--The provision 
     of learning content and information technology under this 
     section shall be subject to the provisions of the Arms Export 
     Control Act (22 U.S.C. 2751 et seq.) and any other export 
     control regime under law relating to the transfer of military 
     technology to foreign nations.
       (f) Secretary of Defense Guidance.--
       (1) Guidance required.--The Secretary of Defense shall 
     develop and issue guidance on the procedures for the use of 
     the authority provided in this section.
       (2) Submittal to congressional committees.--Not later than 
     30 days after issuing the guidance required by paragraph (1), 
     the Secretary shall submit to the Committees on Armed 
     Services of the Senate and House of Representatives a report 
     setting forth such guidance.
       (3) Modification.--If the Secretary modifies the guidance 
     issued under paragraph (1), the Secretary shall submit to the 
     committees named in paragraph (2) a report setting forth the 
     modified guidance not later than 30 days after the date of 
     such modification.
       (g) Annual Report.--
       (1) Report required.--Not later than October 31 of 2007 and 
     2008, the Secretary of Defense shall submit to the committees 
     named in subsection (f)(1) a report on the exercise of the 
     authority provided in this section during the preceding 
     fiscal year.
       (2) Elements.--Each report under paragraph (1) shall 
     include, for the fiscal year covered by such report, the 
     following:
       (A) A statement of the recipients of learning content and 
     information technology provided under this section.
       (B) A description of the type, quantity, and value of the 
     learning content and information technology provided under 
     this section.
       (h) Termination.--The authority provided in this section 
     shall expire on September 30, 2008.
     Subtitle B--Nonproliferation Matters and Countries of Concern

     SEC. 1211. NORTH KOREA.

       (a) Coordinator of Policy on North Korea.--
       (1) Appointment required.--Not later than 60 days after the 
     date of the enactment of this Act, the President shall 
     appoint a senior presidential coordinator of United States 
     policy on North Korea.
       (2) Designation.--The individual appointed under paragraph 
     (1) may be known as the ``North Korea Policy Coordinator'' 
     (in this subsection referred to as the ``Coordinator)''.
       (3) Duties.--The Coordinator shall--
       (A) conduct a full and complete interagency review of 
     United States policy toward North Korea;
       (B) consult with foreign governments, including the parties 
     to the Six Party Talks on the denuclearization of the Korean 
     peninsula; and
       (C) provide policy direction and leadership for 
     negotiations with North Korea relating to nuclear weapons, 
     ballistic missiles, and other security matters.
       (4) Report.--Not later than 90 days after the date of the 
     appointment of an individual as Coordinator under paragraph 
     (1), the Coordinator shall submit to the President and 
     Congress an unclassified report, with a classified annex if 
     necessary, on the actions undertaken under paragraph (3). The 
     report shall set forth--
       (A) the results of the review under paragraph (3)(A); and
       (B) any other matter on North Korea that the Coordinator 
     considers appropriate.
       (5) Termination.--The position under this subsection shall 
     terminate no later than December 31, 2011.
       (b) Semiannual Reports on Nuclear and Missile Programs of 
     North Korea.--
       (1) Reports required.--Not later than 90 days after the 
     date of the enactment of this Act, and every 180 days 
     thereafter for fiscal years 2007 and 2008, the President 
     shall transmit to Congress an unclassified report, with a 
     classified annex as appropriate, on the nuclear program and 
     the missile program of North Korea.
       (2) Matters to be included.--Each report under paragraph 
     (1) shall include the following:
       (A) The most current national intelligence estimate on the 
     nuclear program and the missile program of North Korea and, 
     consistent with the protection of intelligence sources and 
     methods, an unclassified summary of the key judgments in that 
     estimate.
       (B) The most current unclassified United States Government 
     assessment, stated as a range if necessary, of--
       (i) the number of nuclear weapons possessed by North Korea; 
     and
       (ii) the amount of nuclear material suitable for weapons 
     use produced by North Korea by plutonium reprocessing and 
     uranium enrichment.
       (C) Any other matter relating to the nuclear program or 
     missile program of North Korea that the President considers 
     appropriate.

     SEC. 1212. REPORT ON PARTICIPATION OF MULTINATIONAL PARTNERS 
                   IN THE UNITED NATIONS COMMAND IN THE REPUBLIC 
                   OF KOREA.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of Defense, 
     in coordination with the Secretary of State, shall submit to 
     the appropriate committees of Congress a report on 
     participation of multinational partners in the United Nations 
     Command in the Republic of Korea.
       (b) Elements.--The report required by subsection (a) shall 
     include the following:
       (1) A list of the nations that are current members of the 
     United Nations Command in the Republic of Korea, together 
     with a detailed description of the role and participation of 
     each such member nation in the responsibilities and 
     activities of the United Nations Command.
       (2) A detailed description of efforts being undertaken by 
     the United States to encourage enhanced participation in the 
     responsibilities and activities of the United Nations Command 
     in the Republic of Korea by such member nations.
       (3) A discussion of how members of the United Nations 
     Command in the Republic of Korea might be persuaded to 
     increase their contribution of military forces stationed in 
     the Republic and an assessment of how United States 
     political-military requirements in the Republic of Korea 
     might be affected by such increases.
       (4) An assessment of how the contribution of additional 
     military forces by a member of the United Nations Command 
     might affect that member's approach to facilitating a 
     diplomatic resolution of the nuclear challenge posed by the 
     Democratic People's Republic of Korea.
       (c) Form.--The report required by subsection (a) shall be 
     submitted in unclassified form, but may include a classified 
     annex.
       (d) Appropriate Committees of Congress Defined.--In this 
     section, the term ``appropriate committees of Congress'' 
     means--
       (1) the Committees on Armed Services and Foreign Relations 
     of the Senate; and
       (2) the Committees on Armed Services and International 
     Relations of the House of Representatives.

     SEC. 1213. INTELLIGENCE ON IRAN.

       (a) Submittal to Congress of Updated National Intelligence 
     Estimate on Iran.--
       (1) Submittal required.--The Director of National 
     Intelligence shall submit to Congress an updated, 
     comprehensive National Intelligence Estimate on Iran. Such 
     National Intelligence Estimate shall be submitted as soon as 
     is practicable, but not later than the end of the 90-day 
     period beginning on the date of the enactment of this Act.
       (2) Notice regarding submittal.--If before the end of the 
     90-day period specified in paragraph (1) the Director 
     determines that the National Intelligence Estimate required 
     by that paragraph cannot be submitted by the end of that 
     period as required by that paragraph, the Director shall 
     (before the end of that period) submit to Congress a report 
     setting forth--
       (A) the reasons why the National Intelligence Estimate 
     cannot be submitted by the end of such 90-day period; and
       (B) an estimated date for the submittal of the National 
     Intelligence Estimate.
       (3) Form.--The National Intelligence Estimate under 
     paragraph (1) shall be submitted in classified form. 
     Consistent with the protection of intelligence sources and 
     methods, an unclassified summary of the key judgments of the 
     National Intelligence Estimate should be submitted.
       (b) Presidential Report on Policy Objectives and United 
     States Strategy Regarding Iran.--
       (1) Report required.--As soon as is practicable, but not 
     later than 90 days after the date of the enactment of this 
     Act, the President shall submit to Congress a report on--
       (A) the objectives of United States policy on Iran; and
       (B) the strategy for achieving those objectives.
       (2) Form.--The report under paragraph (1) shall be 
     submitted in unclassified form with a classified annex, as 
     appropriate.
       (3) Elements.--The report submitted under paragraph (1) 
     shall--
       (A) address the role of diplomacy, incentives, sanctions, 
     other punitive measures and incentives, and other programs 
     and activities relating to Iran for which funds are provided 
     by Congress; and
       (B) summarize United States contingency planning regarding 
     the range of possible United States military actions in 
     support of United States policy objectives with respect to 
     Iran.

     SEC. 1214. SENSE OF CONGRESS ON UNITED STATES POLICY ON THE 
                   NUCLEAR PROGRAMS OF IRAN.

       Congress--
       (1) endorses the policy of the United States to achieve a 
     successful diplomatic outcome, in coordination with leading 
     members of the international community, with respect to the 
     threat posed by the efforts of the Iranian regime to acquire 
     a capability to produce nuclear weapons;
       (2) calls on Iran to--
       (A) suspend fully and verifiably its enrichment and 
     reprocessing activities, as required by the International 
     Atomic Energy Agency (IAEA); and
       (B) work with the international community to achieve a 
     negotiated outcome to the concerns regarding its nuclear 
     program;
       (3) in the event Iran fails to comply with United Nations 
     Security Council Resolution 1696

[[Page 20843]]

     (July 31, 2006), urges the Security Council to work for the 
     adoption of appropriate measures under Article 41 of Chapter 
     VII of the Charter of the United Nations; and
       (4) urges the President and the Secretary of State to keep 
     Congress fully and currently informed regarding the progress 
     of this vital diplomatic initiative.
                       Subtitle C--Other Matters

     SEC. 1221. EXCLUSION OF PETROLEUM, OIL, AND LUBRICANTS FROM 
                   LIMITATIONS ON ANNUAL AMOUNT OF LIABILITIES THE 
                   UNITED STATES MAY ACCRUE UNDER ACQUISITION AND 
                   CROSS-SERVICING AGREEMENTS.

       (a) Exclusion.--Section 2347 of title 10, United States 
     Code, is amended--
       (1) in subsection (a), by striking ``(other than petroleum, 
     oils, and lubricants)'' in paragraphs (1) and (2); and
       (2) by adding at the end the following new subsection:
       ``(d) The amount of any sale, purchase, or exchange of 
     petroleum, oils, or lubricants by the United States under 
     this subchapter in any fiscal year shall be excluded in any 
     computation for the purposes of subsection (a) or (b) of the 
     amount of reimbursable liabilities or reimbursable credits 
     that the United States accrues under this subchapter in that 
     fiscal year.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect beginning with fiscal year 2007.
       (c) Reports.--Not later than October 31 of 2007 and 2008, 
     the Secretary of Defense shall submit to the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report on the 
     exercise during the preceding fiscal year of the authority 
     provided in subchapter I of chapter 138 of title 10, United 
     States Code, with respect to the sale, purchase, or exchange 
     of petroleum, oil, or lubricants. Each report shall identify 
     each country involved in a sale, purchase, or exchange of 
     petroleum, oil, or lubricants with the United States and 
     include a description, by country, of the type, quantity, and 
     value of the petroleum, oil, and lubricants that were sold, 
     purchased, or exchanged by the United States.

     SEC. 1222. MODIFICATION OF LIMITATIONS ON ASSISTANCE UNDER 
                   THE AMERICAN SERVICEMEMBERS' PROTECTION ACT OF 
                   2002.

       Section 2013(13)(A) of the American Servicemembers' 
     Protection Act of 2002 (22 U.S.C. 7432(13)(A)) is amended by 
     striking ``or 5''.

     SEC. 1223. HUMANITARIAN SUPPORT FOR IRAQI CHILDREN IN URGENT 
                   NEED OF MEDICAL CARE.

       (a) Findings.--Congress makes the following findings:
       (1) The Secretary of Defense has discretionary authority to 
     permit space-available travel on military aircraft for 
     various reasons, including humanitarian purposes.
       (2) Recently, 110 Iraqi children journeyed 22 hours by bus 
     from Baghdad, Iraq, to Amman, Jordan, for urgently needed 
     oral/facial surgery. While traveling, armed insurgents 
     stopped and boarded the children's bus, raising serious 
     questions about the safety of further travel by ground.
       (3) Pursuant to the Secretary's discretionary authority 
     referred to in paragraph (1), the Secretary authorized the 
     Iraqi children to travel on military aircraft for their 
     return trip from Amman to Baghdad.
       (4) The Secretary is to be commended for his initiative in 
     providing for the safe return of these children to Iraq by 
     military aircraft.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Defense should continue to provide space-
     available travel on military aircraft for humanitarian 
     reasons to Iraqi children who would otherwise have no means 
     available to seek urgently needed medical care such as that 
     provided by a humanitarian organization in Amman, Jordan.

     SEC. 1224. SENSE OF CONGRESS OPPOSING THE GRANTING OF AMNESTY 
                   BY THE GOVERNMENT OF IRAQ TO PERSONS KNOWN TO 
                   HAVE ATTACKED, KILLED, OR WOUNDED MEMBERS OF 
                   THE UNITED STATES ARMED FORCES IN IRAQ.

       (a) Findings.--Congress makes the following findings:
       (1) The Armed Forces of the United States and coalition 
     military forces are serving heroically in Iraq to provide all 
     the people of Iraq a better future.
       (2) The Armed Forces of the United States and coalition 
     military forces have served bravely in Iraq since the 
     beginning of military operations in March of 2003.
       (3) As of June 15, 2006, more than 2,500 members of the 
     Armed Forces of the United States and members of coalition 
     military forces have been killed and more than 18,000 have 
     been injured in operations to bring peace and stability to 
     all the people of Iraq.
       (b) Sense of Congress.--
       (1) Iraqi sovereignty.--It is the sense of Congress that 
     the goal of the United States and of the coalition partners 
     of the United States has been to empower the Iraqi people 
     and, in doing so, to recognize their freedom to exercise full 
     sovereignty.
       (2) Amnesty.--Recognizing the sovereignty of the Iraqi 
     people as referred to in paragraph (1), it is further the 
     sense of Congress that the Government of Iraq, consistent 
     with that sovereignty, should not grant amnesty to persons 
     known to have attacked, killed, or wounded members of the 
     Armed Forces of the United States.

     SEC. 1225. ANNUAL REPORTS ON UNITED STATES CONTRIBUTIONS TO 
                   THE UNITED NATIONS.

       (a) Annual Report.--Not later than 90 days after the date 
     of the enactment of this Act and annually thereafter until 
     December 31, 2010, the President shall submit to Congress a 
     report listing all assessed and voluntary contributions of 
     the United States Government for the preceding fiscal year to 
     the United Nations and United Nations affiliated agencies and 
     related bodies.
       (b) Contents.--Each report required under subsection (a) 
     shall set forth, for the fiscal year covered by such report, 
     the following:
       (1) The total amount of all assessed and voluntary 
     contributions of the United States Government to the United 
     Nations and United Nations affiliated agencies and related 
     bodies.
       (2) The approximate percentage of United States Government 
     contributions to each United Nations affiliated agency or 
     body in such fiscal year when compared with all contributions 
     to such agency or body from any source in such fiscal year.
       (3) For each such contribution--
       (A) the amount of such contribution;
       (B) a description of such contribution (including whether 
     assessed or voluntary);
       (C) the department or agency of the United States 
     Government responsible for such contribution;
       (D) the purpose of such contribution; and
       (E) the United Nations or United Nations affiliated agency 
     or related body receiving such contribution.

     SEC. 1226. COMPREHENSIVE REGIONAL STRATEGY AND ANNUAL REPORTS 
                   ON SOMALIA.

       (a) Sense of Congress.--It is the sense of Congress that 
     the United States should--
       (1) support--
       (A) the establishment of a functional, legitimate, and 
     unified national government in Somalia;
       (B) humanitarian assistance to the people of Somalia;
       (C) efforts to prevent Somalia from becoming a safe haven 
     for terrorists and terrorist activities; and
       (D) regional stability;
       (2) broaden and integrate its strategic approach toward 
     Somalia within the context of United States policy and 
     activities in the countries of the Horn of Africa and other 
     relevant countries on the Arabian Peninsula; and
       (3) coordinate and carry out all diplomatic, humanitarian, 
     counterterrorism, and security-related activities in Somalia 
     within the framework of an interagency process.
       (b) Comprehensive Regional Strategy.--
       (1) In general.--Not later than 90 days after the date of 
     the enactment of this Act, the President shall submit to the 
     appropriate congressional committees a report on a 
     comprehensive regional strategy toward Somalia within the 
     context of United States policy and activities in the 
     countries of the Horn of Africa and other relevant countries 
     on the Arabian Peninsula.
       (2) Components.--The comprehensive regional strategy 
     described in the report shall include the following 
     components:
       (A) A clearly stated policy towards Somalia that will help 
     establish a functional, legitimate, and unified national 
     government in Somalia that is capable of maintaining the rule 
     of law and preventing Somalia from becoming a safe haven for 
     terrorists.
       (B) A description of the type and form of bilateral, 
     regional, and multilateral efforts to coordinate and 
     strengthen diplomatic engagement with Somalia.
       (C) A description of an integrated political, humanitarian, 
     intelligence, and military approach to counter transnational 
     security threats in Somalia and throughout the countries of 
     the Horn of Africa.
       (D) A description of an interagency framework involving the 
     Federal agencies and departments of the United States to 
     plan, coordinate, and execute United States policy and 
     activities in Somalia and throughout the countries of the 
     Horn of Africa and to oversee policy and program 
     implementation.
       (E) Guidance on the manner in which the comprehensive 
     regional strategy will be implemented.
       (c) Annual Reports.--Not later than April 1, 2007, and 
     annually thereafter until April 1, 2010, the President shall 
     submit to the appropriate congressional committees a report 
     on the status of the implementation of the comprehensive 
     regional strategy toward Somalia required under subsection 
     (b).
       (d) Form.--Each report under this section, including the 
     comprehensive regional strategy, shall be submitted in 
     unclassified form, but may include a classified annex, as 
     appropriate.
       (e) Appropriate Congressional Committees Defined.--In this 
     section, the term ``appropriate congressional committees'' 
     means--
       (1) the Committee on Armed Services, the Committee on 
     International Relations, and the Permanent Select Committee 
     on Intelligence of the House of Representatives; and
       (2) the Committee on Armed Services, the Committee on 
     Foreign Relations, and the Select Committee on Intelligence 
     of the Senate.

     SEC. 1227. REPORT ON THE IMPLEMENTATION OF THE DARFUR PEACE 
                   AGREEMENT.

       (a) Requirement for Reports.--Not later than 90 days after 
     the date of the enactment of this Act and every six months 
     thereafter until December 31, 2011, the Secretary of Defense, 
     in coordination with the Secretary of State, shall submit to 
     the appropriate congressional committees a report on the 
     implementation of the Darfur Peace Agreement of May 5, 2006, 
     and the contributions of the Department of Defense to

[[Page 20844]]

     the North Atlantic Treaty Organization in support of the 
     African Union Mission in Sudan (AMIS).
       (b) Contents.--Each report under subsection (a) shall 
     include--
       (1) a description of major violations of the Darfur Peace 
     Agreement and major delays in implementing the Agreement, 
     including violations and delays relating to the 
     demobilization and disarmament of the Janjaweed, the 
     voluntary safe return of internally displaced persons and 
     refugees, and security and access for humanitarian supply 
     routes;
       (2) an assessment of the extent to which the Ceasefire 
     Commission and the AMIS are able to monitor the 
     implementation of the Darfur Peace Agreement and an 
     assessment of efforts to impede the monitoring activities of 
     the Ceasefire Commission and AMIS;
       (3) a list of contributions made by the Department of 
     Defense in support of NATO assistance to AMIS and the United 
     Nations peacekeeping operation authorized for Darfur;
       (4) a description of the activities carried out by United 
     States Armed Forces in support of NATO assistance to AMIS and 
     the United Nations peacekeeping operation authorized for 
     Darfur;
       (5) the amount of funds expended by the Department of 
     Defense in support of NATO assistance to AMIS; and
       (6) a description of the efforts by the United States to 
     obtain troop contributions from other countries to serve in 
     the United Nations peacekeeping operation authorized for 
     Darfur.
        (c) Form and Availability of Reports.--
       (1) Form.--Reports submitted under this section shall be in 
     an unclassified form and may include a classified annex.
       (2) Availability.--The unclassified portion of such reports 
     shall be made available to the public.
       (d) Appropriate Congressional Committees Defined.--In this 
     section, the term ``appropriate committees of Congress'' 
     means--
       (1) the Committee on Armed Services and the Committee on 
     International Relations of the House of Representatives; and
       (2) the Committee on Armed Services and the Committee on 
     Foreign Relations of the Senate.

     SEC. 1228. SENSE OF CONGRESS CONCERNING COOPERATION WITH 
                   RUSSIA ON ISSUES PERTAINING TO MISSILE DEFENSE.

       It is the sense of Congress that--
       (1) cooperation between the United States and Russia with 
     regard to missile defense is in the interest of the United 
     States;
       (2) there does not exist strong enough engagement between 
     the United States and Russia with respect to missile defense 
     cooperation;
       (3) the United States should explore innovative and 
     nontraditional means of cooperation with Russia on issues 
     pertaining to missile defense; and
       (4) as part of such an effort, the Secretary of Defense 
     should consider the possibilities for United States-Russian 
     cooperation with respect to missile defense through--
       (A) the testing of specific elements of the detection and 
     tracking equipment of the Missile Defense Agency of the 
     United States Department of Defense through the use of 
     Russian target missiles; and
       (B) the provision of early warning radar to the Missile 
     Defense Agency by the use of Russian radar data.

     SEC. 1229. SENSE OF CONGRESS CALLING FOR CONVENING OF A 
                   SUMMIT FOR A COMPREHENSIVE POLITICAL AGREEMENT 
                   FOR IRAQ.

       (a) In General.--It is the sense of Congress that the 
     President should continue working with the Government of Iraq 
     and the United Nations to convene a summit as soon as 
     possible after the enactment of this Act for the purpose of 
     reaching a comprehensive political agreement for Iraq--
       (1) that promotes the Government of Iraq's National 
     Reconciliation and Dialogue Plan of June 25, 2006, which is 
     designed to focus on many of the fundamental questions 
     dividing Iraqis; and
       (2) that address the issues of--
       (A) federalism;
       (B) the equitable distribution of oil revenues;
       (C) the demobilization and reintegration of armed militias;
       (D) the inducement of the armed opposition to lay down 
     their arms and join the political process;, and
       (E) the building of a renewed international partnership 
     with Iraq aimed at encouraging the economic recovery and 
     reconstruction of Iraq.
       (b) Summit Participants.--A summit convened for the purpose 
     stated in subsection (a) should include the following 
     participants (as well as other appropriate participants):
       (1) Representatives of Iraq's neighbors.
       (2) Representatives of the Arab League.
       (3) The Secretary General of the North Atlantic Treaty 
     Organization.
       (4) Representatives of the European Union.
       (5) Leaders of the governments of each permanent member of 
     the United Nations Security Council.

     SEC. 1230. SENSE OF CONGRESS ON THE COMMENDABLE ACTIONS OF 
                   THE ARMED FORCES IN IRAQ.

       (a) Findings.--Congress makes the following findings:
       (1) On June 7, 2006, the United States Armed Forces carried 
     out an air strike near the City of Baquba, northeast of 
     Baghdad, Iraq, that resulted in the death of Ahmad Fadeel al-
     Nazal al-Khalayleh, better known as Abu Musab al-Zarqawi, the 
     leader of the al-Qaeda in Iraq terrorist organization and the 
     most wanted terrorist in Iraq.
       (2) Zarqawi, as the operational commander of al-Qaeda in 
     Iraq, led a brutal campaign of suicide bombings, car 
     bombings, assassinations, and abductions that caused the 
     deaths of many members of the United States Armed Forces, 
     civilian officials of the United States Government, thousands 
     of innocent Iraqi civilians, and innocent civilians of other 
     nations.
       (3) Zarqawi publicly swore his allegiance to Osama bin 
     Laden and al-Qaeda in 2004, and changed the name of his 
     terrorist organization from the ``Monotheism and Holy War 
     Group'' to ``al-Qaeda in Iraq''.
       (4) In an audiotape broadcast in December 2004, Osama bin 
     Laden, the leader of al-Qaeda's worldwide terrorist 
     organization, called Zarqawi ``the prince of al-Qaeda in 
     Iraq''.
       (5) Three perpetrators confessed to being paid by Zarqawi 
     to carry out the October 2002 assassination of the United 
     States diplomat, Lawrence Foley, in Amman, Jordan.
       (6) The Monotheism and Holy War Group claimed 
     responsibility for--
       (A) the August 2003 suicide attack that destroyed the 
     United Nations headquarters in Baghdad and killed the United 
     Nations envoy to Iraq, Sergio Vieira de Mello, along with 21 
     other people; and
       (B) the suicide attack on the Imam Ali Mosque in Najaf that 
     occurred less than two weeks later, which killed at least 85 
     people, including the Ayatollah Sayed Mohammed Baqr al-Hakim, 
     and wounded dozens more.
       (7) Zarqawi is believed to have personally beheaded 
     American hostage Nicholas Berg in May 2004.
       (8) In May 2004, Zarqawi was implicated in a car bombing 
     that killed Izzadine Salim, the rotating president of the 
     Iraqi Governing Council.
       (9) In November 2005, al-Qaeda in Iraq attacked three 
     hotels in Amman, Jordan, killing at least 67 innocent 
     civilians.
       (10) Zarqawi and his terrorist organization were directly 
     responsible for numerous other brutal terrorist attacks 
     against the American and coalition forces, Iraqi security 
     forces and recruits, and innocent Iraqi civilians.
       (11) Zarqawi sought to turn Iraq into a safe haven for al-
     Qaeda.
       (12) To achieve that end, Zarqawi stated his opposition to 
     the democratically elected government of Iraq and worked to 
     divide the Iraqi people, foment sectarian violence, and 
     incite a civil war in Iraq.
       (13) The members of the United States Armed Forces, the 
     intelligence community, and other Federal agencies, along 
     with coalition partners and the Iraqi Security Forces, should 
     be commended for their courage and extraordinary efforts to 
     track down the most wanted terrorist in Iraq and to secure a 
     free and prosperous future for the people of Iraq.
       (b) Sense of Congress.--It is the sense of Congress that 
     Congress--
       (1) commends the United States Armed Forces, the 
     intelligence community, and other Federal agencies, along 
     with coalition partners, for the actions taken through June 
     7, 2006, that resulted in the death of Abu Musab al-Zarqawi, 
     the leader of the al-Qaeda in Iraq terrorist organization and 
     the most wanted terrorist in Iraq;
       (2) commends the United States Armed Forces, the 
     intelligence community, and other agencies for the action 
     referred to in paragraph (1) and their exemplary performance 
     in striving to bring freedom, democracy, and security to the 
     people of Iraq;
       (3) commends the coalition partners of the United States, 
     the new government of Iraq, and members of the Iraqi Security 
     Forces for their invaluable assistance in the operation 
     referred to in paragraph (1) and their extraordinary efforts 
     to secure a free and prosperous Iraq;
       (4) commends United States civilian and military leadership 
     for their continuing efforts to eliminate the leadership of 
     al-Qaeda in Iraq, and also commends the new government of 
     Iraq, led by Prime Minister Nouri al-Maliki, for its 
     contribution to that achievement;
       (5) recognizes that the death of Abu Musab al-Zarqawi is a 
     victory for American and coalition forces in the global war 
     on terror and a blow to the al-Qaeda terrorist organization;
       (6) commends Iraqi Prime Minister Nouri al-Maliki on the 
     finalization of the new Iraqi cabinet;
       (7) urges the democratically elected government in Iraq to 
     use this opportunity to defeat the terrorist enemy, to put an 
     end to ethnic and sectarian violence, and to achieve a free, 
     prosperous, and secure future for Iraq; and
       (8) affirms that the Congress will continue to support the 
     United States Armed Forces, the democratically elected unity 
     government of Iraq, and the people of Iraq in their quest to 
     secure a free, prosperous, and democratic Iraq.

     SEC. 1231. ANNUAL REPORT ON FOREIGN SALES OF SIGNIFICANT 
                   MILITARY EQUIPMENT MANUFACTURED IN THE UNITED 
                   STATES.

       (a) Report Required.--Not later than March 31 of each year, 
     the Secretary of Defense shall submit to the congressional 
     defense committees a report on foreign military sales and 
     direct sales to foreign entities of significant military 
     equipment manufactured in the United States during the 
     preceding calendar year.
       (b) Contents.--Each report required by subsection (a) shall 
     indicate, for each sale of significant military equipment in 
     excess of $2,000,000--
       (1) the nature of the equipment and the dollar value of the 
     sale;
       (2) the country to which the equipment was sold; and
       (3) the manufacturer of the equipment and the State in 
     which the equipment was manufactured.

[[Page 20845]]

       (c) Public Availability.--The Secretary of Defense shall 
     make each report required by subsection (a) publicly 
     available to the maximum extent practicable.
       (d) Significant Military Equipment Defined.--In this 
     section, the term ``significant military equipment'' has the 
     meaning given the term in section 47(9) of the Arms Export 
     Control Act (22 U.S.C. 2794(9) note).
  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION
Sec. 1301. Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1302. Funding allocations.
Sec. 1303. Extension of temporary authority to waive limitation on 
              funding for chemical weapons destruction facility in 
              Russia.
Sec. 1304. National Academy of Sciences study of prevention of 
              proliferation of biological weapons.

     SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 
                   PROGRAMS AND FUNDS.

       (a) Specification of CTR Programs.--For purposes of section 
     301 and other provisions of this Act, Cooperative Threat 
     Reduction programs are the programs specified in section 
     1501(b) of the National Defense Authorization Act for Fiscal 
     Year 1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 
     note).
       (b) Fiscal Year 2007 Cooperative Threat Reduction Funds 
     Defined.--As used in this title, the term ``fiscal year 2007 
     Cooperative Threat Reduction funds'' means the funds 
     appropriated pursuant to the authorization of appropriations 
     in section 301 for Cooperative Threat Reduction programs.
       (c) Availability of Funds.--Funds appropriated pursuant to 
     the authorization of appropriations in section 301 for 
     Cooperative Threat Reduction programs shall be available for 
     obligation for three fiscal years.

     SEC. 1302. FUNDING ALLOCATIONS.

       (a) Funding for Specific Purposes.--Of the $372,128,000 
     authorized to be appropriated to the Department of Defense 
     for fiscal year 2007 in section 301(19) for Cooperative 
     Threat Reduction programs, the following amounts may be 
     obligated for the purposes specified:
       (1) For strategic offensive arms elimination in Russia, 
     $76,985,000.
       (2) For nuclear weapons storage security in Russia, 
     $87,100,000.
       (3) For nuclear weapons transportation security in Russia, 
     $33,000,000.
       (4) For weapons of mass destruction proliferation 
     prevention in the states of the former Soviet Union, 
     $37,486,000.
       (5) For biological weapons proliferation prevention in the 
     former Soviet Union, $68,357,000.
       (6) For chemical weapons destruction in Russia, 
     $42,700,000.
       (7) For defense and military contacts, $8,000,000.
       (8) For activities designated as Other Assessments/
     Administrative Support, $18,500,000.
       (b) Report on Obligation or Expenditure of Funds for Other 
     Purposes.--No fiscal year 2007 Cooperative Threat Reduction 
     funds may be obligated or expended for a purpose other than a 
     purpose listed in paragraphs (1) through (8) 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 2007 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) In general.--Subject to paragraphs (2) and (3), in any 
     case in which the Secretary of Defense determines that it is 
     necessary to do so in the national interest, the Secretary 
     may obligate amounts appropriated for fiscal year 2007 for a 
     purpose listed in any of the paragraphs in subsection (a) in 
     excess of the specific amount authorized for that purpose.
       (2) Notice-and-wait required.--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.
       (3) Restriction.--The Secretary may not, under the 
     authority provided in paragraph (1), obligate amounts for a 
     purpose stated in any of paragraphs (6) through (8) of 
     subsection (a) in excess of 125 percent of the specific 
     amount authorized for such purpose.

     SEC. 1303. EXTENSION OF TEMPORARY AUTHORITY TO WAIVE 
                   LIMITATION ON FUNDING FOR CHEMICAL WEAPONS 
                   DESTRUCTION FACILITY IN RUSSIA.

       Section 1303 of the Ronald W. Reagan National Defense 
     Authorization Act for Fiscal Year 2005 (Public Law 108-375; 
     118 Stat. 2094; 22 U.S.C. 5952 note) is amended--
       (1) in subsection (a), by striking ``shall not apply for a 
     calendar year for which the President submits to Congress a 
     written certification'' and inserting the following: ``shall 
     not apply for a calendar year to the chemical weapons 
     destruction facility that is (as of 2006) under construction 
     at Shchuch'ye in the Russian Federation, if the President 
     submits to Congress a written certification, for the calendar 
     year concerned,''; and
       (2) in subsection (b), by striking ``shall expire'' and all 
     that follows through the period at the end and inserting ``is 
     not effective for calendar years after calendar year 2011.''.

     SEC. 1304. NATIONAL ACADEMY OF SCIENCES STUDY OF PREVENTION 
                   OF PROLIFERATION OF BIOLOGICAL WEAPONS.

       (a) Study Required.--Not later than 60 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     enter into an arrangement with the National Academy of 
     Sciences under which the Academy shall carry out a study to 
     identify areas for further cooperation with Russia and other 
     states of the former Soviet Union under the Cooperative 
     Threat Reduction (CTR) program of the Department of Defense 
     in the specific area of prevention of proliferation 
     biological weapons.
       (b) Matters to Be Included in Study.--The Secretary shall 
     provide for the study under subsection (a) to include the 
     following:
       (1) A brief review of any ongoing or previously completed 
     United States Government program (whether conducted through 
     the Cooperative Threat Reduction program or otherwise) in the 
     area of prevention of proliferation of biological weapons.
       (2) An identification of further cooperative work between 
     the United States Government and foreign governments, 
     including technical scientific cooperation, that could 
     effectively be pursued in the area of prevention of 
     proliferation of biological weapons and the objectives that 
     such work would be designed to achieve.
       (3) An identification of any obstacles to designing and 
     implementing a nonproliferation program (whether conducted 
     through the Cooperative Threat Reduction program or 
     otherwise) that could successfully accomplish the objectives 
     identified pursuant to paragraph (2), together with 
     recommendations for overcoming such obstacles, including 
     recommendations in the area of coordination among relevant 
     United States Government departments and agencies.
       (c) Report.--
       (1) Secretary of defense report.--Not later than December 
     31, 2007, the Secretary of Defense shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives a report on 
     the study carried out under subsection (a).
       (2) Matters to be incuded.--The report under paragraph (1) 
     shall incude the following:
       (A) The results of the study carried out under subsection 
     (a), including any report received from the National Academy 
     of Sciences on such study.
       (B) An assessment of the study by the Secretary.
       (C) an action plan for implementing the recommendations 
     from the study, if any, that the Secretary has decided to 
     pursue.
       (3) Form of submittal.--The report under paragraph (1) 
     shall be submitted in unclassified form, but may include a 
     classified annex.
       (d) Funding.--Of the amounts made available pursuant to the 
     authorization of appropriations in section 301(19) for 
     Cooperative Threat Reduction programs, not more than $150,000 
     shall be available to carry out this section.
  TITLE XIV--MATTERS RELATED TO DEFENSE AGAINST TERRORISM AND RELATED 
                            SECURITY MATTERS
Sec. 1401. Enhancement to authority to pay rewards for assistance in 
              combating terrorism.
Sec. 1402. Quarterly reports on Department of Defense response to 
              threat posed by improvised explosive devices.
Sec. 1403. Requirement that all military wheeled vehicles used in Iraq 
              and Afghanistan outside of secure military operating 
              bases be protected by Improvised Explosive Device (IED) 
              jammers.
Sec. 1404. Report on assessment process of Chairman of the Joint Chiefs 
              of Staff relating to Global War on Terrorism.
Sec. 1405. Treatment under Freedom of Information Act of certain 
              confidential information shared with State and local 
              personnel.
Sec. 1406. Database of emergency response capabilities.

     SEC. 1401. ENHANCEMENT TO AUTHORITY TO PAY REWARDS FOR 
                   ASSISTANCE IN COMBATING TERRORISM.

       (a) Increase in Delegation Limitation.--Paragraph (2) of 
     section 127b(c) of title 10, United States Code, is amended 
     by striking ``$2,500'' and inserting ``$10,000''.
       (b) Expansion of Senior Officers to Whom Combatant 
     Commander Authority May Be Delegated.--Such paragraph is 
     further amended--
       (1) by inserting after ``deputy commander'' the following: 
     ``, or to the commander of a command directly subordinate to 
     that commander,''; and
       (2) by adding at the end the following new sentence: ``Such 
     a delegation may be made to the commander of a command 
     directly subordinate to the commander of a combatant command 
     only with the approval of the Secretary of Defense, the 
     Deputy Secretary of Defense, or an Under Secretary of Defense 
     to whom authority has been delegated under subparagraph 
     (1)(A).''.

     SEC. 1402. QUARTERLY REPORTS ON DEPARTMENT OF DEFENSE 
                   RESPONSE TO THREAT POSED BY IMPROVISED 
                   EXPLOSIVE DEVICES.

        (a) Reports Required.--

[[Page 20846]]

       (1) Initial report.--Not later than 90 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     submit to Congress a report--
       (A) regarding the status of the threat posed to United 
     States and allied forces in Iraq and Afghanistan by 
     improvised explosive devices; and
       (B) describing efforts being undertaken by the Department 
     of Defense to defeat that threat.
       (2) Supplemental quarterly reports.--After the submission 
     of the report under paragraph (1), the Secretary shall submit 
     to Congress a supplemental report, not later than 30 days 
     after the end of each calendar-year quarter, to account for 
     every reported incident involving the detonation or discovery 
     of an improvised explosive device during the preceding 
     quarter that involved United States or allied forces in Iraq 
     and Afghanistan.
       (3) Classification of reports.--Reports under this section 
     shall be transmitted in an unclassified manner with a 
     classified annex, if necessary.
       (b) Joint IED Defeat Organization and Related Offices.--
     Each report under subsection (a) shall provide the following 
     information regarding the joint entity in the Office of the 
     Secretary of Defense known as the ``Joint IED Defeat 
     Organization'' and those portions of all other organizational 
     elements within the Department of Defense that are focused on 
     countering improvised explosive devices:
       (1) The number of Department of Defense personnel assigned 
     to the Joint IED Defeat Organization and each other 
     organizational element.
       (2) The major locations to which such personnel are 
     assigned and the organizational structure of those elements.
       (3) The projected budget of the Joint IED Defeat 
     Organization and those other elements relating to the 
     counter-IED mission.
       (4) The level of funding required for administrative costs 
     relating to the counter-IED mission.
       (c) Existing Threat and Counter Measures.--Each report 
     under subsection (a) shall include the following information 
     regarding the threat posed by improvised explosive devices 
     and the countermeasures employed to defeat those threats:
       (1) The number of improvised explosive devices being 
     encountered by United States and allied military personnel, 
     including general trends in tactics and technology used by 
     the enemy.
       (2) Passive countermeasures employed and the success rate 
     of each such countermeasure.
       (3) Active countermeasures employed and the success rate of 
     each such countermeasure.
       (4) Any evidence of assistance to the enemy by foreign 
     countries or other entities not directly involved in fighting 
     United States and allied forces in Iraq and Afghanistan.
       (5) A summary of data collected and reports generated by 
     the Department of Defense on efforts to counter improvised 
     explosive devices in Iraq and Afghanistan and other fronts in 
     the Global War on Terrorism.
       (d) Research, Development, Test, and Evaluation of New 
     Countermeasures.--Each report under subsection (a) shall 
     include the following information regarding research, 
     development, test, and evaluation activities relating to new 
     active and passive countermeasures and any impediments to 
     those activities:
       (1) The status of any effort within the Department of 
     Defense to conduct research, development, test, and 
     evaluation of passive and active countermeasures and to 
     accelerate the introduction of those countermeasures into 
     deployed units.
       (2) Impediments to introduction of new passive and active 
     countermeasures.
       (e) Interdiction Efforts.--
       (1) Description of interdiction efforts.--Each report under 
     subsection (a) shall identify those portions of any office 
     within the Department of Defense (in addition to those 
     discussed pursuant to subsection (b)) that are focused on 
     interdiction of improvised explosive devices, together with 
     the personnel and funding requirements for that office (as 
     specified in subsection (b)) and the success of the 
     interdiction efforts of that office.
       (2) Interdiction defined.--For purposes of this subsection, 
     the term ``interdiction'' includes--
       (A) the development of intelligence regarding persons and 
     locations involved in the manufacture or deployment of 
     improvised explosive devices; and
       (B) subsequent action against those persons or locations, 
     including efforts to prevent emplacement of improvised 
     explosive devices.

     SEC. 1403. REQUIREMENT THAT ALL MILITARY WHEELED VEHICLES 
                   USED IN IRAQ AND AFGHANISTAN OUTSIDE OF SECURE 
                   MILITARY OPERATING BASES BE PROTECTED BY 
                   IMPROVISED EXPLOSIVE DEVICE (IED) JAMMERS.

       (a) Requirement.--The Secretary of Defense shall take such 
     steps as necessary to ensure that by the end of fiscal year 
     2007 all United States military wheeled vehicles used in Iraq 
     and Afghanistan outside of secure military operating bases 
     are protected by Improvised Explosive Device (IED) jammers.
       (b) Funding.--The Secretary shall carry out subsection (a) 
     using funds provided pursuant to authorizations of 
     appropriations in title XV.
       (c) Report.--Not later than December 15, 2006, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the cost and timeline to 
     complete compliance with the requirement in subsection (a) 
     that by the end of fiscal year 2007 each vehicle described in 
     that subsection be protected by an Improvised Explosive 
     Device jammer.

     SEC. 1404. REPORT ON ASSESSMENT PROCESS OF CHAIRMAN OF THE 
                   JOINT CHIEFS OF STAFF RELATING TO GLOBAL WAR ON 
                   TERRORISM.

       Not later than March 1, 2007, the Secretary of Defense 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report on the findings of the semiannual 
     assessment process relating to the Global War on Terrorism 
     that is described in the annex to the National Military 
     Strategic Plan for the War on Terrorism, issued by the 
     Secretary of Defense on February 1, 2006, that is designated 
     as the Implementation and Assessment Annex (Annex R).

     SEC. 1405. TREATMENT UNDER FREEDOM OF INFORMATION ACT OF 
                   CERTAIN CONFIDENTIAL INFORMATION SHARED WITH 
                   STATE AND LOCAL PERSONNEL.

       (a) In General.--Chapter 3 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 130d. Treatment under Freedom of Information Act of 
       certain confidential information shared with State and 
       local personnel

       ``Confidential business information and other sensitive but 
     unclassified homeland security information in the possession 
     of the Department of Defense that is shared, pursuant to 
     section 892 of the Homeland Security Act of 2002 (6 U.S.C. 
     482), with State and local personnel (as defined in such 
     section) shall not be subject to disclosure under section 552 
     of title 5 by virtue of the sharing of such information with 
     such personnel.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``130d. Treatment under Freedom of Information Act of certain 
              confidential information shared with State and local 
              personnel.''.

     SEC. 1406. DATABASE OF EMERGENCY RESPONSE CAPABILITIES.

       The Secretary of Defense shall maintain a database of 
     emergency response capabilities that includes the following:
       (1) The types of emergency response capabilities that each 
     State's National Guard, as reported by the States, may be 
     able to provide in response to a domestic natural or manmade 
     disaster, both to their home States and under State-to-State 
     mutual assistance agreements.
       (2) The types of emergency response capabilities that the 
     Department of Defense may be able to provide in support of 
     the National Response Plan's Emergency Support Functions, and 
     identification of the units that provide these capabilities.
  TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM
Sec. 1501. Purpose.
Sec. 1502. Army procurement.
Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Air Force procurement.
Sec. 1505. Defense-wide activities procurement.
Sec. 1506. Research, development, test, and evaluation.
Sec. 1507. Operation and maintenance.
Sec. 1508. Defense Health Program.
Sec. 1509. Classified programs.
Sec. 1510. Military personnel.
Sec. 1511. Treatment as additional authorizations.
Sec. 1512. Transfer authority.
Sec. 1513. Availability of funds.
Sec. 1514. Joint Improvised Explosive Device Defeat Fund.
Sec. 1515. Iraq Freedom Fund.
Sec. 1516. Iraq Security Forces Fund.
Sec. 1517. Afghanistan Security Forces Fund.
Sec. 1518. Submittal to Congress of Department of Defense supplemental 
              and cost of war execution reports.
Sec. 1519. Limitation on availability of funds for certain purposes 
              relating to Iraq.
Sec. 1520. Intelligence Community Management Account.

     SEC. 1501. PURPOSE.

       The purpose of this title is to authorize estimated future 
     emergency supplemental appropriations for the Department of 
     Defense for fiscal year 2007 to provide funds for additional 
     costs due to Operation Iraqi Freedom and Operation Enduring 
     Freedom.

     SEC. 1502. ARMY PROCUREMENT.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2007 for procurement accounts of the Army in amounts as 
     follows:
       (1) For aircraft procurement, $1,524,300,000
       (2) For ammunition procurement, $48,591,000.
       (3) For weapons and tracked combat vehicles procurement, 
     $3,022,836,000.
       (4) For other procurement, $4,636,810,000.
       (5) For missile procurement, $3,200,000.

     SEC. 1503. NAVY AND MARINE CORPS PROCUREMENT.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 2007 for procurement accounts for the Navy in 
     amounts as follows:
       (1) For aircraft procurement, $389,465,000
       (2) For weapons procurement, $109,400,000.
       (3) For other procurement, $14,600,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 2007 for the procurement account 
     for the Marine Corps in the amount of $4,397,926,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for fiscal year 2007 for the 
     procurement account for ammunition for the Navy and the 
     Marine Corps in the amount of $151,439,000.

[[Page 20847]]



     SEC. 1504. AIR FORCE PROCUREMENT.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2007 for procurement accounts for the Air Force in 
     amounts as follows:
       (1) For aircraft procurement, $2,174,000,000.
       (2) For other procurement, $5,650,000.

     SEC. 1505. DEFENSE-WIDE ACTIVITIES PROCUREMENT.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2007 for the procurement account for Defense-wide in the 
     amount of $127,600,000.

     SEC. 1506. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2007 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $2,639,000.
       (2) For the Navy, $7,856,000.

     SEC. 1507. OPERATION AND MAINTENANCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2007 for the use of the Armed Forces for expenses, not 
     otherwise provided for, for operation and maintenance, in 
     amounts as follows:
       (1) For the Army, $28,045,387,000.
       (2) For the Navy, $2,007,948,000.
       (3) For the Marine Corps, $2,257,089,000.
       (4) For the Air Force, $2,478,906,000.
       (5) For Defense-wide activities, $1,544,614,000.
       (6) For the Army National Guard, $221,500,000.
       (7) For the Air National Guard, $2,000,000.
       (8) For the Army Reserve, $500,000.

     SEC. 1508. DEFENSE HEALTH PROGRAM.

       Funds are hereby authorized to be appropriated for the 
     Department of Defense for fiscal year 2007 for expenses, not 
     otherwise provided for, the Defense Health Program, in the 
     amount of $869,200,000 for operation and maintenance.

     SEC. 1509. CLASSIFIED PROGRAMS.

       Funds are hereby authorized to be appropriated to the 
     Department of Defense for fiscal year 2007 for classified 
     programs, in the amount of $2,500,000,000.

     SEC. 1510. MILITARY PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel accounts for 
     fiscal year 2007 a total of $8,106,979,000.

     SEC. 1511. TREATMENT AS ADDITIONAL AUTHORIZATIONS.

       The amounts authorized to be appropriated by this title are 
     in addition to amounts otherwise authorized to be 
     appropriated by this Act.

     SEC. 1512. TRANSFER AUTHORITY.

       (a) Authority to Transfer Authorizations.--
       (1) Authority.--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 title for fiscal year 2007 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) Limitation.--The total amount of authorizations that 
     the Secretary may transfer under the authority of this 
     section may not exceed $2,500,000,000. The transfer authority 
     provided in this section is in addition to any other transfer 
     authority available to the Secretary of Defense.
       (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;
       (2) may not be used to provide authority for an item that 
     has been denied authorization by Congress; and
       (3) may not be combined with the authority under section 
     1001.
       (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.--A transfer may be made under the 
     authority of this section only after the Secretary of 
     Defense--
       (1) consults with the chairmen and ranking members of the 
     congressional defense committees with respect to the proposed 
     transfer; and
       (2) after such consultation, notifies those committees in 
     writing of the proposed transfer not less than five days 
     before the transfer is made.

     SEC. 1513. AVAILABILITY OF FUNDS.

       Funds in this title shall be made available for obligation 
     to the Army, Navy, Marine Corps, Air Force, and Defense-wide 
     components by the end of the second quarter of fiscal year 
     2007.

     SEC. 1514. JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND.

       (a) Authorization of Appropriation.--Funds are hereby 
     authorized for fiscal year 2007 for the Joint Improvised 
     Explosive Device Defeat Fund in the amount of $2,100,000,000.
       (b) Use of Funds.--Funds appropriated pursuant to 
     subsection (a) shall be available to the Secretary of Defense 
     for the purpose of allowing the Director of the Joint 
     Improvised Explosive Device Defeat Organization to 
     investigate, develop, and provide equipment, supplies, 
     services, training, facilities, personnel, and funds to 
     assist United States forces in the defeat of improvised 
     explosive devices.
       (c) Transfer Authority.--
       (1) Transfers authorized.--Amounts authorized to be 
     appropriated by subsection (a) may be transferred from the 
     Joint Improvised Explosive Device Defeat Fund to any of the 
     following accounts and funds of the Department of Defense to 
     accomplish the purposes provided in subsection (b):
       (A) Military personnel accounts.
       (B) Operation and maintenance accounts.
       (C) Procurement accounts.
       (D) Research, development, test, and evaluation accounts.
       (E) Defense working capital funds.
       (2) Additional transfer authority.--The transfer authority 
     provided by paragraph (1) is in addition to any other 
     transfer authority available to the Department of Defense.
       (3) Transfers back to the fund.--Upon determination that 
     all or part of the funds transferred from the Joint 
     Improvised Explosive Device Defeat Fund under paragraph (1) 
     are not necessary for the purpose provided, such funds may be 
     transferred back to the Joint Improvised Explosive Device 
     Defeat Fund.
       (4) Prior notice to congressional committees.--Funds may 
     not be obligated from the Joint Improvised Explosive Device 
     Defeat Fund, or transferred under the authority provided in 
     paragraph (1), until five days after the date on which the 
     Secretary of Defense notifies the congressional defense 
     committees in writing of the details of the proposed 
     obligation or transfer.
       (5) Effect on authorization amounts.--A transfer of an 
     amount to an account under the authority in paragraph (1) 
     shall be deemed to increase the amount authorized for such 
     account by an amount equal to the amount transferred.
       (d) Management Plan.--
       (1) Plan required.--Not later than 60 days after the date 
     of the enactment of this Act, the Secretary shall submit to 
     the congressional defense committees a plan for the intended 
     management and use of the Joint Improvised Explosive Device 
     Defeat Fund.
       (2) Matter to be included.--The plan required by paragraph 
     (1) shall include an update of the plan required in the 
     paragraph under the heading ``Joint Improvised Explosive 
     Device Defeat Fund'' in chapter 2 of title I of the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006 (Public Law 109-234; 
     120 Stat. 424), including identification of--
       (A) year-to-date transfers and obligations; and
       (B) projected transfers and obligations through September 
     30, 2007.
       (e) Quarterly Reports.--Not later than 30 days after the 
     end of each fiscal-year quarter, the Secretary shall submit 
     to the congressional defense committees a report summarizing 
     the detail of any obligation or transfer of funds from the 
     Joint Improvised Explosive Device Defeat Fund plan required 
     by subsection (d).
       (f) Duration of Authority.--Amounts appropriated to the 
     Fund are available for obligation or transfer from the Fund 
     until September 30, 2009.

     SEC. 1515. IRAQ FREEDOM FUND.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal year 2007 for the Iraq Freedom Fund 
     in the amount of $50,000,000.
       (b) Transfer.--
       (1) Transfer authorized.--Subject to paragraph (2), amounts 
     authorized to be appropriated by subsection (a) may be 
     transferred from the Iraq Freedom Fund to any accounts as 
     follows:
       (A) Operation and maintenance accounts of the Armed Forces.
       (B) Military personnel accounts.
       (C) Research, development, test, and evaluation accounts of 
     the Department of Defense.
       (D) Procurement accounts of the Department of Defense.
       (E) Accounts providing funding for classified programs.
       (F) The operating expenses account of the Coast Guard.
       (2) Notice to congress.--A transfer may not be made under 
     the authority in paragraph (1) until five days after the date 
     on which the Secretary of Defense notifies the congressional 
     defense committees in writing of the transfer.
       (3) Treatment of transferred funds.--Amounts transferred to 
     an account under the authority in paragraph (1) shall be 
     merged with amounts in such account and shall be made 
     available for the same purposes, and subject to the same 
     conditions and limitations, as amounts in such account.
       (4) Effect on authorization amounts.--A transfer of an 
     amount to an account under the authority in paragraph (1) 
     shall be deemed to increase the amount authorized for such 
     account by an amount equal to the amount transferred.

     SEC. 1516. IRAQ SECURITY FORCES FUND.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal year 2007 for the 
     Iraq Security Forces Fund in the amount of $1,734,000,000.
       (b) Use of Funds.--
       (1) In general.--Funds appropriated pursuant to subsection 
     (a) shall be available to the Secretary of Defense for the 
     purpose of allowing the Commander, Multi-National Security 
     Transition Command--Iraq, to provide assistance to the 
     security forces of Iraq.
       (2) Types of assistance authorized.--Assistance provided 
     under this section may include the provision of equipment, 
     supplies, services, training, facility and infrastructure 
     repair, renovation, and construction, and funding.
       (3) Secretary of state concurrence.--Assistance may be 
     provided under this section only with the concurrence of the 
     Secretary of State.
       (c) Authority in Addition to Other Authorities.--The 
     authority to provide assistance

[[Page 20848]]

     under this section is in addition to any other authority to 
     provide assistance to foreign nations.
       (d) Transfer Authority.--
       (1) Transfers authorized.--Subject to paragraph (2), 
     amounts authorized to be appropriated by subsection (a) may 
     be transferred from the Iraq Security Forces Fund to any of 
     the following accounts and funds of the Department of Defense 
     to accomplish the purposes provided in subsection (b):
       (A) Military personnel accounts.
       (B) Operation and maintenance accounts.
       (C) Procurement accounts.
       (D) Research, development, test, and evaluation accounts.
       (E) Defense working capital funds.
       (F) Overseas Humanitarian, Disaster, and Civic Aid account.
       (2) Additional authority.--The transfer authority provided 
     by paragraph (1) is in addition to any other transfer 
     authority available to the Department of Defense.
       (3) Transfers back to the fund.--Upon determination that 
     all or part of the funds transferred from the Iraq Security 
     Forces Fund under paragraph (1) are not necessary for the 
     purpose provided, such funds may be transferred back to the 
     Iraq Security Forces Fund.
       (4) Prior notice to congressional committees.--Funds may 
     not be obligated from the Iraq Security Forces Fund, or 
     transferred under the authority provided in paragraph (1), 
     until five days after the date on which the Secretary of 
     Defense notifies the congressional defense committees in 
     writing of the details of the proposed obligation or 
     transfer.
       (5) Effect on authorization amounts.--A transfer of an 
     amount to an account under the authority in paragraph (1) 
     shall be deemed to increase the amount authorized for such 
     account by an amount equal to the amount transferred.
       (e) Contributions.--
       (1) Authority to accept contributions.--Contributions of 
     funds for the purposes provided in subsection (b) from any 
     person, foreign government, or international organization may 
     be credited to the Iraq Security Forces Fund and used for the 
     purposes provided in subsection (b).
       (2) Limitation.--The Secretary may not accept a 
     contribution under this subsection if the acceptance of the 
     contribution would compromise or appear to compromise the 
     integrity of any program of the Department of Defense.
       (3) Notification.--The Secretary shall notify the 
     congressional defense committees in writing upon the receipt 
     and upon the transfer of any contribution. Such notice shall 
     delineate the sources and amounts of the funds received and 
     the specific use of such contributions.
       (f) Quarterly Reports.--Not later than 30 days after the 
     end of each fiscal-year quarter, the Secretary shall submit 
     to the congressional defense committees a report summarizing 
     the details of any obligation or transfer of funds from the 
     Iraq Security Forces Fund during the preceding quarter.
       (g) Duration of Authority.--Amounts appropriated or 
     contributed to the Fund are available for obligation or 
     transfer from the Iraq Security Forces Fund until September 
     30, 2008.

     SEC. 1517. AFGHANISTAN SECURITY FORCES FUND.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal year 2007 for the 
     Afghanistan Security Forces Fund in the amount of 
     $1,446,300,000.
       (b) Use of Funds.--
       (1) In general.--Funds appropriated pursuant to subsection 
     (a) shall be available to the Secretary of Defense for the 
     purpose of allowing the Commander, Office of Security 
     Cooperation--Afghanistan, to provide assistance to the 
     security forces of Afghanistan.
       (2) Types of assistance authorized.--Assistance provided 
     under this section may include the provision of equipment, 
     supplies, services, training, facility and infrastructure 
     repair, renovation, and construction, and funding.
       (3) Secretary of state concurrence.--Assistance may be 
     provided under this section only with the concurrence of the 
     Secretary of State.
       (c) Authority in Addition to Other Authorities.--The 
     authority to provide assistance under this section is in 
     addition to any other authority to provide assistance to 
     foreign nations.
       (d) Transfer Authority.--
       (1) Transfers authorized.--Subject to paragraph (2), 
     amounts authorized to be appropriated by subsection (a) may 
     be transferred from the Afghanistan Security Forces Fund to 
     any of the following accounts and funds of the Department of 
     Defense to accomplish the purposes provided in subsection 
     (b):
       (A) Military personnel accounts.
       (B) Operation and maintenance accounts.
       (C) Procurement accounts.
       (D) Research, development, test, and evaluation accounts.
       (E) Defense working capital funds.
       (F) Overseas Humanitarian, Disaster, and Civic Aid account.
       (2) Additional authority.--The transfer authority provided 
     by paragraph (1) is in addition to any other transfer 
     authority available to the Department of Defense.
       (3) Transfers back to the fund.--Upon determination that 
     all or part of the funds transferred from the Afghanistan 
     Security Forces Fund under paragraph (1) are not necessary 
     for the purpose provided, such funds may be transferred back 
     to the Afghanistan Security Forces Fund.
       (4) Prior notice to congressional committees.--Funds may 
     not be obligated from the Afghanistan Security Forces Fund, 
     or transferred under the authority provided in paragraph (1), 
     until five days after the date on which the Secretary of 
     Defense notifies the congressional defense committees in 
     writing of the details of the proposed obligation or 
     transfer.
       (5) Effect on authorization amounts.--A transfer of an 
     amount to an account under the authority in paragraph (1) 
     shall be deemed to increase the amount authorized for such 
     account by an amount equal to the amount transferred.
       (e) Contributions.--
       (1) Authority to accept contributions.--Contributions of 
     funds for the purposes provided in subsection (b) from any 
     person, foreign government, or international organization may 
     be credited to the Afghanistan Security Forces Fund and used 
     for the purposes provided in subsection (b).
       (2) Limitation.--The Secretary may not accept a 
     contribution under this subsection if the acceptance of the 
     contribution would compromise or appear to compromise the 
     integrity of any program of the Department of Defense.
       (3) Notification.--The Secretary shall notify the 
     congressional defense committees in writing upon the receipt 
     and upon the transfer of any contribution. Such notice shall 
     delineate the sources and amounts of the funds received and 
     the specific use of such contributions.
       (f) Quarterly Reports.--Not later than 30 days after the 
     end of each fiscal-year quarter, the Secretary shall submit 
     to the congressional defense committees a report summarizing 
     the details of any obligation or transfer of funds from the 
     Afghanistan Security Forces Fund during the preceding 
     quarter.
       (g) Duration of Authority.--Amounts appropriated or 
     contributed to the Fund are available for obligation or 
     transfer from the Afghanistan Security Forces Fund until 
     September 30, 2008.

     SEC. 1518. SUBMITTAL TO CONGRESS OF DEPARTMENT OF DEFENSE 
                   SUPPLEMENTAL AND COST OF WAR EXECUTION REPORTS.

       Section 1221(c) of the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3462; 10 
     U.S.C. 113 note) is amended--
       (1) in the subsection caption by inserting ``Congress and'' 
     after ``Submission to''; and
       (2) by inserting ``the congressional defense committees 
     and'' before ``the Comptroller General''.

     SEC. 1519. LIMITATION ON AVAILABILITY OF FUNDS FOR CERTAIN 
                   PURPOSES RELATING TO IRAQ.

       No funds appropriated pursuant to an authorization of 
     appropriations in this Act may be obligated or expended for a 
     purpose as follows:
       (1) To establish any military installation or base for the 
     purpose of providing for the permanent stationing of United 
     States Armed Forces in Iraq.
       (2) To exercise United States economic control of the oil 
     resources of Iraq.

     SEC. 1520. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.

       There is hereby authorized to be appropriated for the 
     Intelligence Community Management Account for fiscal year 
     2007 a total of $19,265,000.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     SEC. 2001. SHORT TITLE.

       This division may be cited as the ``Military Construction 
     Authorization Act for Fiscal Year 2007''.

     SEC. 2002. RECOGNITION OF REPRESENTATIVE JOEL HEFLEY UPON HIS 
                   RETIREMENT FROM THE HOUSE OF REPRESENTATIVES.

       (a) Findings.--Congress makes the following findings:
       (1) Representative Joel Hefley was elected to represent 
     Colorado's 5th Congressional district in 1986 and has served 
     in the House of Representatives since that time with 
     distinction, class, integrity, and honor.
       (2) Representative Hefley has served on the Committee on 
     Armed Services of the House of Representatives for 18 years, 
     including service as Chairman of the Subcommittee on Military 
     Installations and Facilities from 1995 through 2000 and, 
     since 2001, as Chairman of the Subcommittee on Readiness.
       (3) Representative Hefley's colleagues know him to be a 
     fair and effective lawmaker who works for the national 
     interest while never forgetting his Western roots.
       (4) Representative Hefley's efforts on the Committee on 
     Armed Services have been instrumental to the military value 
     of, and quality of life at, installations in the State of 
     Colorado, including Fort Carson, Cheyenne Mountain, Peterson 
     Air Force Base, Schriever Air Force Base, Buckley Air Force 
     Base, and the United States Air Force Academy.
       (5) Representative Hefley was a leader in efforts to retain 
     and expand Fort Carson as an essential part of the national 
     defense system during the Defense Base Closure and 
     Realignment process.
       (6) Representative Hefley has consistently advocated for 
     providing members of the Armed Forces and their families with 
     quality, safe, and affordable housing and supportive 
     communities.
       (7) As a primary architect of the Military Housing 
     Privatization Initiative, Representative Hefley helped lead 
     congressional efforts to establish this initiative to 
     eliminate inadequate housing on military installations, and 
     the first pilot program was located at Fort Carson.

[[Page 20849]]

       (8) Representative Hefley's leadership on the Military 
     Housing Privatization Initiative has allowed for the 
     privatization of more than 121,000 units of military family 
     housing, which brought meaningful improvements to living 
     conditions for thousands of members of the Armed Forces and 
     their spouses and children at installations throughout the 
     United States.
       (b) Recognition.--Congress recognizes and commends 
     Representative Joel Hefley for his 20 years of service to 
     benefit the people of Colorado, members of the Armed Forces 
     and their families, veterans, and the United States.
                            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. 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 or 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...................................  Redstone Arsenal..................................       $24,300,000
Alaska....................................  Fort Richardson...................................       $72,300,000
                                            Fort Wainwright...................................        $8,800,000
California................................  Fort Irwin........................................       $18,200,000
Colorado..................................  Fort Carson.......................................       $30,800,000
Georgia...................................  Fort Gillem.......................................       $15,000,000
                                            Fort Stewart/Hunter Army Air Field................       $95,300,000
Hawaii....................................  Schofield Barracks................................       $54,500,000
Kansas....................................  Fort Leavenworth..................................       $23,200,000
                                            Fort Riley........................................       $47,400,000
Kentucky..................................  Blue Grass Army Depot.............................        $3,500,000
                                            Fort Campbell.....................................      $135,300,000
Louisiana.................................  Fort Polk.........................................       $15,900,000
Maryland..................................  Aberdeen Proving Ground...........................        $8,800,000
                                            Fort Detrick......................................       $12,400,000
Michigan..................................  Detroit Arsenal...................................       $18,500,000
Missouri..................................  Fort Leonard Wood.................................       $34,500,000
New Jersey................................  Picatinny Arsenal.................................        $9,900,000
New York..................................  Fort Drum.........................................      $218,600,000
North Carolina............................  Fort Bragg........................................       $96,900,000
                                            Sunny Point Military Ocean Terminal...............       $46,000,000
Oklahoma..................................  McAlester Army Ammunition Plant...................        $3,050,000
Pennsylvania..............................  Letterkenny Depot.................................        $7,500,000
Texas.....................................  Corpus Christi Army Depot.........................       $12,200,000
                                            Fort Bliss........................................        $8,200,000
                                            Fort Hood.........................................       $93,000,000
                                            Red River Depot...................................        $6,000,000
Utah......................................  Dugway Proving Ground.............................       $14,400,000
Virginia..................................  Fort Belvoir......................................       $27,000,000
                                            Fort Lee..........................................        $4,150,000
Washington................................  Fort Lewis........................................      $502,600,000
----------------------------------------------------------------------------------------------------------------

       (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 or locations outside the United States, and in 
     the amounts, set forth in the following table:

                     Army: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Grafenwoehr..............    $157,632,000
                               Vilseck..................     $19,000,000
Italy........................  Vicenza..................    $223,000,000
Japan........................  Camp Hansen..............      $7,150,000
Korea........................  Camp Humphreys...........     $61,600,000
                               Yongpyong................      $7,400,000
Romania......................  Babadag Range............     $34,800,000
------------------------------------------------------------------------

     SEC. 2102. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2104(a)(5)(A), the Secretary of the Army may 
     construct or acquire family housing units (including land 
     acquisition and supporting facilities) at the installations 
     or locations, in the number of units, and in the amounts set 
     forth in the following table:

                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                       Installation or Location             Units              Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Richardson................  162..................     $70,000,000
                                          Fort Wainwright................  234..................    $132,000,000
Arizona.................................  Fort Huachuca..................  119..................     $32,000,000
Arkansas................................  Pine Bluff Arsensal............  10...................      $2,900,000
Wisconsin...............................  Fort McCoy.....................  13...................      $4,900,000
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(5)(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 $16,332,000.

     SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated

[[Page 20850]]

     pursuant to the authorization of appropriations in section 
     2104(a)(5)(A), the Secretary of the Army may improve existing 
     military family housing units in an amount not to exceed 
     $320,659,000.

     SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2006, for military construction, land 
     acquisition, and military family housing functions of the 
     Department of the Army in the total amount of $3,518,450,000 
     as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2101(a), $1,362,200,000.
       (2) For military construction projects outside the United 
     States authorized by section 2101(b), $510,582,000.
       (3) For unspecified minor military construction projects 
     authorized by section 2805 of title 10, United States Code, 
     $23,930,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $219,830,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $578,791,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $675,617,000.
       (6) For the construction of increment 2 of a barracks 
     complex at Fort Drum, New York, authorized by section 2101(a) 
     of the Military Construction Authorization Act for Fiscal 
     Year 2006 (division B of Public Law 109-163; 119 Stat. 3485), 
     $16,500,000.
       (7) For the construction of increment 2 of a barracks 
     complex for the 2nd Brigade at Fort Bragg, North Carolina, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2006 (division B of Public 
     Law 109-163; 119 Stat. 3485), $31,000,000.
       (8) For the construction of increment 2 of a barracks 
     complex for the 3nd Brigade at Fort Bragg, North Carolina, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2006 (division B of Public 
     Law 109-163; 119 Stat. 3485), $50,000,000.
       (9) For the construction of increment 2 of a barracks 
     complex for divisional artillery at Fort Bragg, North 
     Carolina, authorized by section 2101(a) of the Military 
     Construction Authorization Act for Fiscal Year 2006 (division 
     B of Public Law 109-163; 119 Stat. 3485), $37,000,000.
       (10) For the construction of increment 2 of a defense 
     access road at Fort Belvoir, Virginia, authorized by section 
     2101(a) of the Military Construction Authorization Act for 
     Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 
     3486), $13,000,000.
       (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 the 
     sum of the following:
       (1) The total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a).
       (2) $306,000,000 (the balance of the amount authorized 
     under section 2101(a) for construction of a brigade complex 
     for Fort Lewis, Washington).
                            TITLE XXII--NAVY
Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 
              2004, 2005, and 2006 projects.

     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 or locations inside the United States, and in 
     the amounts, set forth in the following table:

                                         Navy: Inside the United States
----------------------------------------------------------------------------------------------------------------
                   State                                 Installation or Location                    Amount
----------------------------------------------------------------------------------------------------------------
Arizona...................................  Marine Corps Air Station, Yuma....................        $5,966,000
California................................  Marine Corps Air Station, Camp Pendleton..........        $6,412,000
                                            Marine Corps Air Station, Miramar.................        $2,968,000
                                            Marine Corps Base, Camp Pendleton.................      $106,142,000
                                            Marine Corps Base, Twentynine Palms...............       $27,217,000
                                            Naval Air Station, North Island...................       $21,535,000
                                            Naval Support Activity, Monterey..................        $7,380,000
Connecticut...............................  Naval Submarine Base, New London..................        $9,580,000
Florida...................................  Cape Canaveral....................................        $9,900,000
                                            Naval Air Station, Pensacola......................       $13,486,000
Georgia...................................  Marine Corps Logistics Base, Albany...............       $70,540,000
                                            Navy/Naval Submarine Base, Kings Bay..............       $20,282,000
Hawaii....................................  Naval Base, Pearl Harbor..........................       $48,338,000
                                            Naval Magazine, Pearl Harbor......................        $6,010,000
                                            Naval Shipyard, Pearl Harbor......................       $22,000,000
Indiana...................................  Naval Support Activity, Crane.....................        $6,730,000
Maine.....................................  Portsmouth Naval Shipyard.........................        $9,650,000
Maryland..................................  Naval Air Station, Patuxent River.................       $16,316,000
                                            NMIC/Naval Support Activity, Suitland.............       $67,939,000
Mississippi...............................  Naval Air Station, Meridian.......................        $5,870,000
Nevada....................................  Naval Air Station, Fallon.........................        $7,730,000
North Carolina............................  Marine Corps Air Station, Cherry Point............        $2,790,000
                                            Marine Corps Air Station, New River...............       $21,500,000
                                            Marine Corps Base, Camp Lejeune...................      $160,904,000
Rhode Island..............................  Naval Station, Newport............................        $3,308,000
South Carolina............................  Marine Corps Air Station, Beaufort................       $25,575,000
Virginia..................................  Marine Corps Base, Quantico.......................       $30,628,000
                                            Naval Shipyard, Norfolk...........................       $34,952,000
                                            Naval Special Weapons Center, Dahlgren............        $9,850,000
                                            Naval Station, Norfolk............................       $12,062,000
                                            Naval Support Activity, Norfolk...................       $41,712,000
Washington................................  Naval Air Station, Whidbey Island.................       $67,303,000
                                            Naval Base, Kitsap................................       $17,617,000
----------------------------------------------------------------------------------------------------------------

       (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 
     installations or locations outside the United States, and in 
     the amounts, set forth in the following table:

                     Navy: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Diego Garcia.................  Diego Garcia.............     $37,473,000
Italy........................  Naval Air Station,            $13,051,000
                                Sigonella.
------------------------------------------------------------------------


[[Page 20851]]

       (c) Unspecified Worldwide.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(3), the Secretary of the Navy may acquire real 
     property and carry out military construction projects for 
     unspecified installations or locations in the amount set 
     forth in the following table:

                       Navy: Unspecified Worldwide
------------------------------------------------------------------------
           Location                     Project               Amount
------------------------------------------------------------------------
                               Helicopter Support            $12,185,000
                                Facility.
------------------------------------------------------------------------

     SEC. 2202. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2204(a)(6)(A), the Secretary of the Navy may 
     construct or acquire family housing units (including land 
     acquisition and supporting facilities) at the installations, 
     in the number of units, and in the amounts set forth in the 
     following table:

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                Location                           Installation                    Units              Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Marine Corps Log. Base, Barstow  74...................     $27,851,000
Guam....................................   Naval Station/Base, Guam......  176..................     $98,174,000
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(6)(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 $2,785,000.

     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)(6)(A), the Secretary of 
     the Navy may improve existing military family housing units 
     in an amount not to exceed $180,146,000.

     SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2006, for military construction, land 
     acquisition, and military family housing functions of the 
     Department of the Navy in the total amount of $2,109,367,000, 
     as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2201(a), $832,982,000.
       (2) For military construction projects outside the United 
     States authorized by section 2201(b), $50,524,000.
       (3) For military construction projects at unspecified 
     worldwide locations authorized by section 2201(c), 
     $12,185,000.
       (4) For unspecified minor military construction projects 
     authorized by section 2805 of title 10, United States Code, 
     $8,939,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $70,861,000.
       (6) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $308,956,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $509,126,000.
       (7) For the construction of increment 2 of a reclamation 
     and conveyance project for Marine Corps Base, Camp Pendleton, 
     California, authorized by section 2201(a) of the Military 
     Construction Authorization Act of Fiscal Year 2006 (division 
     B of Public Law 109-163; 119 Stat. 3490), as amended by 
     section 2205(c) of this Act, $33,290,000.
       (8) For the construction of increment 2 of a helicopter 
     hangar replacement at Naval Air Station, Jacksonville, 
     Florida, authorized by section 2201(a) of the Military 
     Construction Authorization Act for Fiscal Year 2006 (division 
     B of Public Law 109-163; 119 Stat. 3489), $43,250,000.
       (9) For the construction of increment 2 of recruit training 
     barracks infrastructure upgrades at Recruit Training Command, 
     Great Lakes, Illinois, authorized by section 2201(a) of the 
     Military Construction Authorization Act for Fiscal Year 2006 
     (division B of Public Law 109-163; 119 Stat. 3490), 
     $23,589,000.
       (10) For the construction of increment 2 of a field house 
     at the United States Naval Academy, Annapolis, Maryland, 
     authorized by section 2201(a) of the Military Construction 
     Authorization Act of Fiscal Year 2006 (division B of Public 
     Law 109-163; 119 Stat. 3490), $26,685,000.
       (11) For the construction of increment 2 of the replacement 
     of Ship Repair Pier 3 at Naval Support Activity, Norfolk 
     Naval Shipyard, Virginia, authorized by section 2201(a) of 
     the Military Construction Authorization Act of Fiscal Year 
     2006 (division B of Public Law 109-163; 119 Stat. 3490), 
     $30,939,000.
       (12) For the construction of increment 2 of an addition to 
     Hockmuth Hall, Marine Corps Base, Quantico, Virginia, 
     authorized by section 2201(a) of the Military Construction 
     Authorization Act of Fiscal Year 2006 (division B of Public 
     Law 109-163; 119 Stat. 3490), $10,159,000.
       (13) For the construction of increment 2 of wharf upgrades 
     at Naval Station Guam, Marianas Islands, authorized by 
     section 2201(b) of the Military Construction Authorization 
     Act for Fiscal Year 2006 (division B of Public Law 109-163; 
     119 Stat. 3490), $29,772,000.
       (14) For the construction of increment 2 of wharf upgrades 
     at Yokosuka, Japan, authorized by section 2201(b) of the 
     Military Construction Authorization Act of Fiscal Year 2006 
     (division B of Public Law 109-163; 119 Stat. 3490), 
     $44,360,000.
       (15) For the construction of increment 2 of bachelor 
     quarters at Naval Station, Everett, Washington, authorized by 
     section 2201(a) of the Military Construction Authorization 
     Act of Fiscal Year 2006 (division B of Public Law 109-163; 
     119 Stat. 3490), $20,917,000.
       (16) For the construction of increment 3 of the limited 
     area production and storage complex at Strategic Weapons 
     Facility Pacific, Bangor, Washington, authorized by section 
     2201(a) of the Military Construction Authorization Act for 
     Fiscal Year 2005 (division B of Public Law 108-375; 118 Stat. 
     2105), as amended by section 2206 of the Military 
     Construction Authorization Act for Fiscal Year 2006 (division 
     B of Public Law 109-163; 119 Stat. 3493, $14,274,000.
       (17) For the construction of the next increment of the 
     outlaying landing field facilities at Washington County, 
     North Carolina, authorized by section 2201(a) of the Military 
     Construction Authorization Act for Fiscal Year 2004 (division 
     B of Public Law 108-136; 117 Stat. 1704), as amended by 
     section 2205(a) of this Act, $7,926,000.
       (18) For the construction of increment 4 of pier 11 
     replacement at Naval Station, Norfolk, Virginia, authorized 
     by section 2201(a) of the Military Construction Authorization 
     Act for Fiscal Year 2004 (division B of Public Law 108-136; 
     117 Stat. 1704), $30,633,000.
       (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 the 
     sum of the following:
       (1) The total amount authorized to be appropriated under 
     paragraphs (1), (2), and (3) of subsection (a).
       (2) $56,159,000 (the balance of the amount authorized under 
     section 2201(a) for construction of an addition to the 
     National Maritime Intelligence Center, Suitland, Maryland).
       (3) $31,153,000 (the balance of the amount authorized under 
     section 2201(a) to recapitalize Hangar 5 at Naval Air 
     Station, Whidbey Island, Washington).

     SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2004, 2005, AND 2006 PROJECTS.

       (a) Fiscal Year 2004 Inside the United States Project.--
       (1) Modification.--The table in section 2201(a) of the 
     Military Construction Authorization Act for Fiscal Year 2004 
     (division B of Public Law 108-136; 117 Stat. 1704), as 
     amended by section 2205 of the Military Construction 
     Authorization Act for Fiscal Year 2006 (division B of Public 
     Law 109-163; 119 Stat. 3492), is amended--
       (A) at the end of the items relating to North Carolina, by 
     inserting a new item entitled ``Navy Outlying Landing Field, 
     Washington County'' in the amount of ``$193,260,000'';
       (B) by striking the item relating to Various Locations, 
     CONUS; and
       (C) by striking the amount identified as the total in the 
     amount column and inserting ``$1,489,424,000''.
       (2) Conforming amendments.--Section 2204(b)(6) of that Act 
     (117 Stat. 1706) is amended--
       (A) by striking ``$28,750,000'' and inserting 
     ``$165,650,000''; and
       (B) by striking ``outlying landing field facilities, 
     various locations in the continental United States'' and 
     inserting ``an outlying landing field in Washington County, 
     North Carolina''.
       (b) Fiscal Year 2005 Inside the United States Project.--
       (1) Modification.--The table in section 2201(a) of the 
     Military Construction Authorization Act for Fiscal Year 2005 
     (division B of Public Law 108-375; 118 Stat. 2105), as 
     amended by

[[Page 20852]]

     section 2206 of the Military Construction Authorization Act 
     for Fiscal Year 2006 (division B of Public Law 109-163; 119 
     Stat. 3493), is amended--
       (A) by striking the item relating to Navy Outlying Landing 
     Field, Washington County, North Carolina; and
       (B) by striking the amount identified as the total in the 
     amount column and inserting ``$825,479,000''.
       (2) Conforming amendments.--Section 2204 of that Act (118 
     Stat. 2107), as amended by section 2206 of the Military 
     Construction Authorization Act for Fiscal Year 2006 (division 
     B of Public Law 109-163; 119 Stat. 3493), is amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking ``$752,927,000'' and 
     inserting ``722,927,000''; and
       (ii) by adding at the end the following new paragraph:
       ``(10) For the construction of increment 2 of the Navy 
     outlying landing field in Washington County, North Carolina, 
     authorized by section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 2004 (division B of Public 
     Law 108-136; 117 Stat. 1704), as amended by section 2205(a) 
     of the Military Construction Authorization Act for Fiscal 
     Year 2007, $30,000,000.''; and
       (B) in subsection (b), by striking paragraph (3).
       (c) Fiscal Year 2006 Inside the United States Project.--
       (1) Modification.--The table in section 2201(a) of the 
     Military Construction Authorization Act for Fiscal Year 2006 
     (division B of Public Law 109-163; 119 Stat. 3489) is amended 
     in the item related to Marine Corps Base, Camp Pendleton, 
     California, by striking ``$90,437,000'' in the amount column 
     and inserting ``$86,006,000''.
       (2) Conforming amendments.--Section 2204(b)(2) of that Act 
     (119 Stat. 3492) is amended by striking ``$37,721,000'' and 
     inserting ``$33,290,000''.
                         TITLE XXIII--AIR FORCE
Sec. 2301. Authorized Air Force construction and land acquisition 
              projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Modification of authority to carry out certain fiscal year 
              2006 project.

     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 or locations inside the United States, and in 
     the amounts, set forth in the following table:

                                       Air Force: Inside the United States
----------------------------------------------------------------------------------------------------------------
                    State                                 Installation or Location                   Amount
----------------------------------------------------------------------------------------------------------------
Alaska......................................  Eielson Air Force Base..........................       $38,300,000
                                              Elmendorf Air Force Base........................       $68,100,000
Arizona.....................................  Davis-Monthan Air Force Base....................       $11,800,000
Arkansas....................................  Little Rock Air Force Base......................        $9,800,000
California..................................  Beale Air Force Base............................       $28,000,000
                                              Travis Air Force Base...........................       $85,800,000
Colorado....................................  Buckley Air Force Base..........................       $10,700,000
                                              Peterson Air Force Base.........................        $4,900,000
                                              Schriever Air Force Base........................       $21,000,000
Delaware....................................  Dover Air Force Base............................       $30,400,000
Florida.....................................  Eglin Air Force Base............................       $30,350,000
                                              Hurlburt Field..................................       $32,950,000
                                              MacDill Air Force Base..........................       $71,000,000
                                              Tyndall Air Force Base..........................        $8,200,000
Georgia.....................................  Robins Air Force Base...........................       $59,600,000
Hawaii......................................  Hickam Air Force Base...........................       $28,538,000
Illinois....................................  Scott Air Force Base............................       $28,200,000
Kansas......................................  McConnell Air Force Base........................        $3,875,000
Kentucky....................................  Fort Knox.......................................        $3,500,000
Maryland....................................  Andrews Air Force Base..........................       $29,000,000
Massachusetts...............................  Hanscom Air Force Base..........................       $12,400,000
Missouri....................................  Whiteman Air Force Base.........................        $3,800,000
Montana.....................................  Malmstrom Air Force Base........................        $5,700,000
Nevada......................................  Indian Springs Auxiliary Field..................       $49,923,000
New Jersey..................................  McGuire Air Force Base..........................       $28,500,000
New Mexico..................................  Kirtland Air Force Base.........................       $11,400,000
North Dakota................................  Minot Air Force Base............................        $9,000,000
Oklahoma....................................  Altus Air Force Base............................        $9,500,000
                                               Tinker Air Force Base..........................        $5,700,000
South Carolina..............................  Charleston Air Force Base.......................       $10,200,000
                                              Shaw Air Force Base.............................       $31,500,000
South Dakota................................   Ellsworth Air Force Base.......................        $3,000,000
Texas.......................................  Fort Bliss......................................        $8,500,000
                                              Lackland Air Force Base.........................       $13,200,000
                                              Laughlin Air Force Base.........................       $12,600,000
                                              Sheppard Air Force Base.........................        $7,000,000
Utah........................................  Hill Air Force Base.............................       $63,400,000
Virginia....................................  Langley Air Force Base..........................       $57,700,000
Washington..................................  Fairchild Air Force Base........................        $4,250,000
Wyoming.....................................  Francis E. Warren Air Force Base................       $11,000,000
----------------------------------------------------------------------------------------------------------------

       (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 or locations outside the United States, and in 
     the amounts, set forth in the following table:

                  Air Force: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Ramstein Air Base........     $53,150,000
Guam.........................  Andersen Air Base........     $65,300,000
Korea........................  Kunsan Air Base..........     $37,360,000
                               Osan Air Base............      $2,156,000
------------------------------------------------------------------------

       (c) Unspecified Worldwide.--Using 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 
     unspecified installations or locations in the amount set 
     forth in the following table:

[[Page 20853]]



                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
Worldwide Classified.........  Classified Project 1.....      $3,377,000
                               Classified Project 2.....      $4,600,000
                               Classified Project 3.....      $1,700,000
------------------------------------------------------------------------

     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 
     or locations, in the number of units, and in the amounts set 
     forth in the following table:

                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                   Installation or Location             Units             Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Eielson Air Force Base...........  129................     $87,414,000
Idaho...................................  Mountain Home Air Force Base.....  457................    $107,800,000
Missouri................................  Whiteman Air Force Base..........  116................     $39,270,000
Montana.................................  Malmstrom Air Force Base.........  493................    $140,252,000
North Carolina..........................  Seymour Johnson Air Force Base...  56.................     $22,956,000
North Dakota............................  Minot Air Force Base.............  575................    $170,188,000
Texas...................................  Dyess Air Force Base.............  199................     $49,215,000
Germany.................................  Ramstein Air Base................  101................     $59,488,000
                                          Spangdahlem Air Base.............  60.................     $39,294,000
United Kingdom..........................  Royal Air Force Lakenheath.......  74.................     $35,282,000
----------------------------------------------------------------------------------------------------------------

       (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 $13,202,000.

     SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2304(a)(6)(A), the Secretary of 
     the Air Force may improve existing military family housing 
     units in an amount not to exceed $403,777,000.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2006, for military construction, land 
     acquisition, and military family housing functions of the 
     Department of the Air Force in the total amount of 
     $3,231,442,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2301(a), $962,286,000.
       (2) For military construction projects outside the United 
     States authorized by section 2301(b), $157,966,000.
       (3) For military construction projects at unspecified 
     worldwide locations authorized by section 2301(c), 
     $9,677,000.
       (4) For unspecified minor military construction projects 
     authorized by section 2805 of title 10, United States Code, 
     $15,000,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $79,004,000.
       (6) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $1,168,138,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $755,071,000.
       (7) For the construction of increment 2 of the C-17 
     maintenance complex at Elmendorf Air Force Base, Alaska, 
     authorized by section 2301(a) of the Military Construction 
     Authorization Act for Fiscal Year 2006 (division B of Public 
     Law 109-163; 119 Stat. 3494), $30,000,000.
       (8) For the construction of increment 2 of the main base 
     runway at Edwards Air Force Base, California, authorized by 
     section 2301(a) of the Military Construction Authorization 
     Act for Fiscal Year 2006 (division B of Public Law 109-163; 
     119 Stat. 3494), $31,000,000.
       (9) For the construction of increment 2 of the CENTCOM 
     Joint Intelligence Center at MacDill Air Force Base, Florida, 
     authorized by section 2301(a) of the Military Construction 
     Authorization Act for Fiscal Year 2006 (division B of Public 
     Law 109-163; 119 Stat. 3494), as amended by section 2305 of 
     this Act,$23,300,000.
       (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 the 
     total amount authorized to be appropriated under paragraphs 
     (1), (2), and (3) of subsection (a).

     SEC. 2305. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2006 PROJECT.

       (a) Modification of Inside the United States Project.--The 
     table in section 2301(a) of the Military Construction 
     Authorization Act for Fiscal Year 2006 (division B of Public 
     Law 109-163; 119 Stat. 3494) is amended in the item relating 
     to MacDill Air Force Base, Florida, by striking 
     ``$107,200,000'' in the amount column and inserting 
     ``$101,500,000''.
       (b) Conforming Amendment.--Section 2304(b)(4) of that Act 
     (119 Stat. 3496) is amended by striking ``$29,000,000'' and 
     inserting ``$23,300,000''.
                      TITLE XXIV--DEFENSE AGENCIES
Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Family housing.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorized base closure and realignment activities funded 
              through Department of Defense Base Closure Account 2005.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Modification of authority to carry out certain fiscal year 
              2006 project.

     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 
     2405(a)(1), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installations or locations inside the United States, and in 
     the amounts, set forth in the following tables:

                                           Defense Education Activity
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Kentucky.....................................  Fort Knox........................................     $18,108,000
----------------------------------------------------------------------------------------------------------------


                                            Defense Logistics Agency
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Arizona......................................  Marine Corps Air Station, Yuma...................      $8,715,000
California...................................  Beale Air Force Base.............................      $9,000,000
Pennsylvania.................................  Defense Distribution Depot, New Cumberland.......      $8,900,000

[[Page 20854]]

 
Viginia......................................  Fort Belvoir.....................................      $5,500,000
Washington...................................  Naval Air Station, Whidbey Island................     $26,000,000
----------------------------------------------------------------------------------------------------------------


                                           Special Operations Command
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
California...................................  Marine Corps Base, Camp Pendleton................     $24,400,000
Colorado.....................................  Fort Carson......................................     $26,100,000
Florida......................................  Hurlburt Field...................................     $14,482,000
                                               MacDill Air Force Base...........................     $27,300,000
Kentucky.....................................  Fort Campbell....................................     $24,500,000
Mississippi..................................  Stennis Space Center.............................     $10,200,000
North Carolina...............................  Fort Bragg.......................................     $51,768,000
                                               Marine Corps Base, Camp Lejeune..................     $51,600,000
                                               Pope Air Force Base..............................     $15,276,000
Virginia.....................................  Naval Air Base, Little Creek.....................     $22,000,000
----------------------------------------------------------------------------------------------------------------


                                           TRICARE Management Activity
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Alaska.......................................  Fort Richardson..................................     $37,200,000
California...................................  Fort Irwin.......................................      $6,050,000
Florida......................................  MacDill Air Force Base...........................     $92,000,000
                                               Naval Hospital, Jacksonville.....................     $16,000,000
Hawaii.......................................  Naval Base, Pearl Harbor.........................      $7,700,000
Illinois.....................................  Naval Hospital, Great Lakes......................     $20,000,000
Maryland.....................................  Fort Detrick.....................................    $550,000,000
New York.....................................  Fort Drum........................................      $9,700,000
Texas........................................  Fort Hood........................................     $18,000,000
----------------------------------------------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2405(a)(2), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installations or locations outside the United States, and in 
     the amounts, set forth in the following tables:

                                           Defense Education Activity
----------------------------------------------------------------------------------------------------------------
                    Country                                 Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Italy.........................................  Vicenza.........................................     $47,210,000
Korea.........................................  Osan Air Base...................................      $4,589,000
Spain.........................................  Naval Station, Rota.............................     $23,048,000
----------------------------------------------------------------------------------------------------------------


                                            Defense Logistics Agency
----------------------------------------------------------------------------------------------------------------
           Country or Possession                           Installation or Location                   Amount
----------------------------------------------------------------------------------------------------------------
Japan......................................  Okinawa............................................      $5,000,000
Wake Island................................  Wake Island........................................      $2,600,000
----------------------------------------------------------------------------------------------------------------


                                             Missile Defense Agency
----------------------------------------------------------------------------------------------------------------
           Country or Possession                           Installation or Location                   Amount
----------------------------------------------------------------------------------------------------------------
Kwajalein..................................  Kwajalein Atoll....................................      $7,592,000
----------------------------------------------------------------------------------------------------------------


                       Special Operations Command
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Qatar........................  Al Udeid AB..............     $44,500,000
------------------------------------------------------------------------


                       TRICARE Management Activity
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Italy........................  Vicenza..................     $52,000,000
------------------------------------------------------------------------

     SEC. 2402. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2405(a)(9)(A), the Secretary of Defense may 
     construct or acquire family housing units (including land 
     acquisition and supporting facilities) at the location, in 
     the number of units, and in the amount set forth in the 
     following table:

[[Page 20855]]



                                    Defense Logistics Agency: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                               Location                     Units              Amount
----------------------------------------------------------------------------------------------------------------
Virginia................................  Defense Supply Center, Richmond  25...................      $7,840,000
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2405(a)(9)(A), the Secretary of Defense 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 $200,000.

     SEC. 2403. ENERGY CONSERVATION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2405(a)(6), the Secretary of 
     Defense may carry out energy conservation projects under 
     section 2865 of title 10, United States Code, in the amount 
     of $55,000,000.

     SEC. 2404. AUTHORIZED BASE CLOSURE AND REALIGNMENT ACTIVITIES 
                   FUNDED THROUGH DEPARTMENT OF DEFENSE BASE 
                   CLOSURE ACCOUNT 2005.

       (a) Authorized Activities.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2405(a)(8), the Secretary of Defense may carry out base 
     closure and realignment activities, including real property 
     acquisition and military construction projects, 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) 
     and funded through the Department of Defense Base Closure 
     Account 2005 established by section 2906A of such Act, in the 
     amount of $5,902,723,000.
       (b) Conforming Amendments to Fiscal Year 2006 
     Authorizations.--
       (1) Authorized activities.--Title XXIV of the Military 
     Construction Authorization Act for Fiscal Year 2006 (division 
     B of Public Law 109-163; 119 Stat. 3496) is amended by adding 
     at the end the following new section:

     ``SEC. 2404. AUTHORIZED BASE CLOSURE AND REALIGNMENT 
                   ACTIVITIES FUNDED THROUGH DEPARTMENT OF DEFENSE 
                   BASE CLOSURE ACCOUNT 2005.

       ``Using amounts appropriated pursuant to the authorization 
     of appropriations in section 2403(a)(7), the Secretary of 
     Defense may carry out base closure and realignment 
     activities, including real property acquisition and military 
     construction projects, 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) and funded through 
     the Department of Defense Base Closure Account 2005 
     established by section 2906A of such Act, in the amount of 
     $2,035,466,000.''.
       (2) Authorization of appropriations and limitations.--
     Section 2403 of that Act (119 Stat. 3499) is amended--
       (A) in subsection (a)(7)--
       (i) by striking ``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)'' and inserting 
     ``authorized by section 2404 of this Act''; and
       (ii) by striking ``section 2906 of such Act'' and inserting 
     ``section 2906A of the Defense Base Closure and Realignment 
     Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
     U.S.C. 2687 note)'';
       (B) by redesignating subsection (c) as subsection (d); and
       (C) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Limitation on Total Cost of Base Closure and 
     Realignment Activities.--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 base closure and realignment activities, 
     including real property acquisition and military construction 
     projects, carried out under section 2404 of this Act may not 
     exceed the sum of the following:
       ``(1) The total amount authorized to be appropriated under 
     subsection (a)(7).
       ``(2) $531,000,000 (the balance of the amount authorized 
     under section 2404 for base closure and realignment 
     activities).''.

     SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2006, 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 $7,163,431,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2401(a), $533,099,000.
       (2) For military construction projects outside the United 
     States authorized by section 2401(b), $170,789,000.
       (3) For unspecified minor military construction projects 
     under section 2805 of title 10, United States Code, 
     $21,672,000.
       (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, $172,950,000.
       (6) For energy conservation projects authorized by section 
     2403 of this Act, $55,000,000.
       (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) and funded through the Department of Defense Base 
     Closure Account 1990 established by section 2906 of such Act, 
     $191,220,000.
       (8) For base closure and realignment activities authorized 
     by section 2404 of this Act and funded through the Department 
     of Defense Base Closure Account 2005 established by section 
     2906A of the Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note), $5,236,223,000.
       (9) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $8,808,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $48,506,000.
       (C) For credit to the Department of Defense Family Housing 
     Improvement Fund established by section 2883(a)(1) of title 
     10, United States Code, $2,500,000
       (10) For the construction of increment 2 of the regional 
     security operations center at Augusta, Georgia, authorized by 
     section 2401(a) of the Military Construction Authorization 
     Act of Fiscal Year 2006 (division B of Public Law 109-163; 
     119 Stat. 3497), as amended by section 7016 of Public Law 
     109-234 (120 Stat. 485), $77,118,000.
       (11) For the construction of increment 2 of the regional 
     security operations center at Kunia, Hawaii, authorized by 
     section 2401(a) of the Military Construction Authorization 
     Act of Fiscal Year 2006 (division B of Public Law 109-163; 
     119 Stat. 3497), as amended by section 7017 of Public Law 
     109-234 (120 Stat. 485), $47,016,000.
       (12) For the construction of increment 2 of the classified 
     material conversion facility at Fort Meade, Maryland, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act of Fiscal Year 2006 (division B of Public 
     Law 109-163; 119 Stat. 3497), $11,151,000.
       (13) For the construction of increment 2 of an operations 
     building, Royal Air Force Menwith Hill Station, United 
     Kingdom, authorized by section 2401(b) of the Military 
     Construction Authorization Act of Fiscal Year 2006 (division 
     B of Public Law 109-163; 119 Stat. 3498), as amended by 
     section 2406 of this Act, $46,386,000.
       (14) For the construction of the second increment of 
     certain base closure and realignment activities authorized by 
     section 2404 of the Military Construction Authorization Act 
     of Fiscal Year 2006 (division B of Public Law 109-163; 119 
     Stat. 3500), as added by section 2404(b) of this Act, 
     $390,000,000.
       (15) For the construction of increment 7 of a munitions 
     demilitarization facility at Blue Grass Army Depot, Kentucky, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 2000 (division B of Public 
     Law 106-65; 113 Stat. 835), as amended by section 2405 of the 
     Military Construction Authorization Act of 2002 (division B 
     of Public Law 107-107; 115 Stat. 1298), and section 2405 of 
     the Military Construction Authorization Act for Fiscal Year 
     2003 (division B of Public Law 107-314; 116 Stat. 2698), 
     $99,157,000.
       (16) For the construction of increment 8 of a munitions 
     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 2407 of the Military Construction 
     Authorization Act for Fiscal Year 2003 (division B of Public 
     Law 107-314; 116 Stat. 2698), $41,836,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2401 of this Act may not exceed the 
     sum of the following:
       (1) The total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a).
       (2) $46,400,000 (the balance of the amount authorized under 
     section 2401(a) for construction of a health clinic at 
     MacDill Air Force Base, Florida).
       (3) $521,000,000 (the balance of the amount authorized 
     under section 2401(a) for stage 1 of the replacement of the 
     Army Medical Research Institute of Infectious Diseases at 
     Fort Detrick, Maryland).
       (c) Limitation on Total Cost of Base Closure and 
     Realignment Activities.--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 base closure and realignment activities, 
     including real property acquisition and military construction 
     projects, carried out under section 2404(a) of this Act may 
     not exceed the sum of the following:
       (1) The total amount authorized to be appropriated under 
     subsection (a)(8).
       (2) $666,500,000 (the balance of the amount authorized 
     under section 2404(a) for base closure and realignment 
     activities).

[[Page 20856]]

       (d) Congressional Notification Regarding Base Closure and 
     Realignment Activities.--Not later later 14 days after the 
     date on which funds appropriated pursuant to the 
     authorization of appropriations in subsection (a)(8) are 
     first obligated for a particular program, project, or 
     activity, the Secretary of Defense shall submit to the 
     congressional defense committees a report describing the 
     program, project, or activity.

     SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2006 PROJECT.

       (a) Modification of Outside the United States National 
     Security Agency Project.--The table relating to the National 
     Security Agency in section 2401(b) of the Military 
     Construction Authorization Act for Fiscal Year 2006 (division 
     B of Public Law 109-163; 119 Stat. 3498) is amended in the 
     item relating to Menwith Hill, United Kingdom, by striking 
     ``$86,354,000'' in the amount column and inserting 
     ``$91,383,000''.
       (b) Conforming Amendments.--Section 2403(b)(5) of that Act 
     (119 Stat. 3500) is amended by striking ``$44,657,000'' and 
     inserting ``$49,686,000''.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM
Sec. 2501. Authorized NATO construction and land acquisition projects
Sec. 2502. Authorization of appropriations, NATO

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

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

     SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 2006, 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 $200,985,000.
            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES
Sec. 2601. Authorized Guard and Reserve construction and land 
              acquisition projects

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

       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 2006, for the costs of 
     acquisition, architectural and engineering services, and 
     construction of facilities for the Guard and Reserve Forces, 
     and for contributions therefor, under chapter 1803 of title 
     10, United States Code (including the cost of acquisition of 
     land for those facilities), in the following amounts:
       (1) For the Department of the Army--
       (A) for the Army National Guard of the United States, 
     $561,375,000; and
       (B) for the Army Reserve, $190,617,000.
       (2) For the Department of the Navy, for the Navy Reserve 
     and Marine Corps Reserve, $49,998,000.
       (3) For the Department of the Air Force--
       (A) for the Air National Guard of the United States, 
     $294,283,000; and
       (B) for the Air Force Reserve, $56,836,000.
        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS
Sec. 2701. Expiration of authorizations and amounts required to be 
              specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2004 
              projects.
Sec. 2703. Extension of authorizations of certain fiscal year 2003 
              projects.
Sec. 2704.  Effective date.

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

       (a) Expiration of Authorizations After Three Years.--Except 
     as provided in subsection (b), all authorizations contained 
     in titles XXI through XXVI for military construction 
     projects, land acquisition, family housing projects and 
     facilities, and contributions to the North Atlantic Treaty 
     Organization Security Investment program (and authorizations 
     of appropriations therefor) shall expire on the later of--
       (1) October 1, 2009; or
       (2) the date of the enactment of an Act authorizing funds 
     for military construction for fiscal year 2010.
       (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, 2009; or
       (2) the date of the enactment of an Act authorizing funds 
     for fiscal year 2010 for military construction projects, land 
     acquisition, family housing projects and facilities, or 
     contributions to the North Atlantic Treaty Organization 
     Security Investment program.

     SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   2004 PROJECTS.

       (a) Extension and Renewal.--Notwithstanding section 2701 of 
     the Military Construction Authorization Act for Fiscal Year 
     2004 (division B of Public Law 108-136; 117 Stat. 1716), 
     authorizations set forth in the tables in subsection (b), as 
     provided in section 2101, 2301, 2302, 2401, or 2601 of that 
     Act shall remain in effect until October 1, 2007, or the date 
     of the enactment of an Act authorizing funds for military 
     construction for fiscal year 2008, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:

             Army: Extension of 2004 Project Authorizations
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Aviano Air Base, Italy.........  Joint deployment            $15,500,000
                                  facility.
Fort Wainwright, Alaska........  Training range complex.     $47,000,000
------------------------------------------------------------------------


           Air Force: Extension of 2004 Project Authorizations
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Eglin Air Force Base, Florida..  Family housing (279         $32,166,000
                                  units).
Hickam Air Force Base, Hawaii..  Parking ramp...........     $10,102,000
Travis Air Force Base,           Family housing (56          $12,723,000
 California.                      units).
------------------------------------------------------------------------


          Defense Wide: Extension of 2004 Project Authorization
------------------------------------------------------------------------
     Installation or Location        Agency and Project       Amount
------------------------------------------------------------------------
Hickam Air Force Base, Hawaii....  DLA hydrant fuel          $14,100,000
                                    system.
------------------------------------------------------------------------


      Army National Guard: Extension of 2004 Project Authorizations
------------------------------------------------------------------------
     Installation or Location             Project             Amount
------------------------------------------------------------------------
Albuquerque, New Mexico..........  Readiness center.....      $2,533,000
Fort Indiantown Gap, Pennsylvania  Training range.......     $15,338,000
Gary, Indiana....................  Aviation support          $15,581,000
                                    facility.
------------------------------------------------------------------------


[[Page 20857]]

     SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   2003 PROJECTS.

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 2003 
     (division B of Public Law 107-314; 116 Stat. 2700), 
     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 2006 (division B of Public Law 109-163; 119 Stat. 
     3502), shall remain in effect until October 1, 2007, or the 
     date of the enactment of an Act authorizing funds for 
     military construction for fiscal year 2008, whichever is 
     later.
       (b) Tables.--The table referred to in subsection (a) is as 
     follows:

           Air Force: Extension of 2003 Project Authorizations
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Eglin Air Force Base, Florida..  Family housing (134         $15,906,000
                                  units).
Eglin Air Force Base, Florida..  Family housing office..        $597,000
Randolph Air Force Base, Texas.  Housing maintenance            $447,000
                                  facility.
------------------------------------------------------------------------

     SEC. 2704. EFFECTIVE DATE.

       Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of this Act 
     shall take effect on the later of--
       (1) October 1, 2006; or
       (2) the date of the enactment of this Act.
         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

Sec. 2801. Increase in maximum annual amount authorized to be obligated 
              for emergency military construction.
Sec. 2802. One-year extension of temporary, limited authority to use 
              operation and maintenance funds for construction projects 
              outside the United States.
Sec. 2803. Repeal of requirement to determine availability of suitable 
              alternative housing for acquisition in lieu of 
              construction of new family housing.
Sec. 2804. Authority to continue to occupy leased family housing for 
              United States Southern Command personnel.
Sec. 2805. Consideration of alternative and more efficient uses for 
              general officer and flag officer quarters in excess of 
              6,000 square feet.
Sec. 2806. Modification of notification requirements related to cost 
              variation authority.
Sec. 2807. Consideration of local comparability of floor areas in 
              construction, acquisition, and improvement of military 
              unaccompanied housing.
Sec. 2808. Certification required for military construction projects 
              for facilities designed to provide training in urban 
              operations.
Sec. 2809. Authority to carry out military construction projects in 
              connection with industrial facility investment program.
Sec. 2810. Repeal of special requirement for military construction 
              contracts on Guam.
Sec. 2811. Temporary expansion of authority to convey property at 
              military installations to support military construction.
Sec. 2812. Pilot projects for acquisition or construction of military 
              unaccompanied housing.

        Subtitle B--Real Property and Facilities Administration

Sec. 2821. Congressional notice requirements, in advance of acquisition 
              of land by condemnation for military purposes.
Sec. 2822. Consolidation of Department of Defense authorities regarding 
              granting of easements for rights-of-way.
Sec. 2823. Authority to grant restrictive easements for conservation 
              purposes in connection with land conveyances.
Sec. 2824. Maximum term of leases for structures and real property 
              relating to structures in foreign countries needed for 
              purposes other than family housing.
Sec. 2825. Consolidation of laws relating to transfer of Department of 
              Defense real property within the Department of Defense 
              and to other Federal agencies.
Sec. 2826. Defense access road program.
Sec. 2827. Reports on Army operational ranges.

                Subtitle C--Base Closure and Realignment

Sec. 2831. Modification of deposit requirements in connection with 
              lease proceeds received at military installations 
              approved for closure or realignment after January 1, 
              2005.
Sec. 2832. Report on Air Force and Air National Guard bases affected by 
              2005 round of defense base closure and realignment.

                      Subtitle D--Land Conveyances

Sec. 2841. Conveyance of easement, Pine Bluff Arsenal, Arkansas.
Sec. 2842. Modification of land transfer authority, Potomac Annex, 
              District of Columbia.
Sec. 2843. Land conveyance, Naval Air Station, Barbers Point, Hawaii.
Sec. 2844. Land conveyances, Omaha, Nebraska.
Sec. 2845. Land conveyance, Hopkinton, New Hampshire.
Sec. 2846. Land conveyance, North Hills Army Reserve Center, Allison 
              Park, Pennsylvania.
Sec. 2847. Transfer of jurisdiction, Fort Jackson, South Carolina.
Sec. 2848. Sense of Congress regarding land conveyance involving Army 
              Reserve Center, Marshall, Texas.
Sec. 2849. Modifications to land conveyance authority, Engineering 
              Proving Ground, Fort Belvoir, Virginia.
Sec. 2850. Land conveyance, Radford Army Ammunition Plant, New River 
              Unit, Virginia.

                      Subtitle E--Energy Security

Sec. 2851. Consolidation and enhancement of laws to improve Department 
              of Defense energy efficiency and conservation.
Sec. 2852. Department of Defense goal regarding use of renewable energy 
              to meet electricity needs.
Sec. 2853. Congressional notification of cancellation ceiling for 
              Department of Defense energy savings performance 
              contracts.
Sec. 2854. Use of energy efficiency products in new construction.

                       Subtitle F--Other Matters

Sec. 2861. Availability of research and technical assistance under 
              Defense Economic Adjustment Program.
Sec. 2862. Availability of community planning assistance relating to 
              encroachment of civilian communities on military 
              facilities used for training by the Armed Forces.
Sec. 2863. Prohibitions against making certain military airfields or 
              facilities available for use by civil aircraft.
Sec. 2864. Modification of certain transportation projects.
Sec. 2865. Availability of funds for South County Commuter Rail 
              project, Providence, Rhode Island.
Sec. 2866. Fox Point Hurricane Barrier, Providence, Rhode Island.
Sec. 2867. Federal funding for fixed guideway projects.
Sec. 2868. Feasibility study regarding use of General Services 
              Administration property for Fort Belvoir, Virginia, 
              realignment.
 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

     SEC. 2801. INCREASE IN MAXIMUM ANNUAL AMOUNT AUTHORIZED TO BE 
                   OBLIGATED FOR EMERGENCY MILITARY CONSTRUCTION.

       Section 2803(c)(1) of title 10, United States Code, is 
     amended by striking ``$45,000,000'' and inserting 
     ``$50,000,000''.

     SEC. 2802. ONE-YEAR EXTENSION OF TEMPORARY, LIMITED AUTHORITY 
                   TO USE OPERATION AND MAINTENANCE FUNDS FOR 
                   CONSTRUCTION PROJECTS OUTSIDE THE UNITED 
                   STATES.

       Section 2808(a) of the Military Construction Authorization 
     Act for Fiscal Year 2004 (division B of Public Law 108-136; 
     117 Stat. 1723), as amended by section 2810 of the Military 
     Construction Authorization Act for Fiscal Year 2005 (division 
     B of Public Law 108-375; 118 Stat. 2128) and section 2809 of 
     the Military Construction Authorization Act for Fiscal Year 
     2006 (division B of Public Law 109-163; 119 Stat. 3508), is 
     further amended by striking ``and 2006'' and inserting 
     ``through 2007''.

     SEC. 2803. REPEAL OF REQUIREMENT TO DETERMINE AVAILABILITY OF 
                   SUITABLE ALTERNATIVE HOUSING FOR ACQUISITION IN 
                   LIEU OF CONSTRUCTION OF NEW FAMILY HOUSING.

       (a) In General.--Section 2823 of title 10, United States 
     Code, is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of subchapter II of chapter 169 of such title is 
     amended by striking the item relating to section 2823.

     SEC. 2804. AUTHORITY TO CONTINUE TO OCCUPY LEASED FAMILY 
                   HOUSING FOR UNITED STATES SOUTHERN COMMAND 
                   PERSONNEL.

       Section 2828(b)(4) of title 10, United States Code, is 
     amended by adding at the end the following new subparagraph:
       ``(D) Until September 30, 2008, the Secretary of the Army 
     may authorize family members of a

[[Page 20858]]

     member of the armed forces on active duty who is assigned to 
     a family-member-restricted area and who, before such 
     assignment, was occupying a housing unit leased under this 
     paragraph, to remain in the leased housing unit until the 
     member completes the assignment. Costs incurred for the 
     leased housing unit during the assignment shall be included 
     in the costs subject to the limitation under subparagraph 
     (B).''.

     SEC. 2805. CONSIDERATION OF ALTERNATIVE AND MORE EFFICIENT 
                   USES FOR GENERAL OFFICER AND FLAG OFFICER 
                   QUARTERS IN EXCESS OF 6,000 SQUARE FEET.

       (a) Reporting Requirements.--Subsection (e)(1) of section 
     2831 of title 10, United States Code, is amended--
       (1) in subparagraph (A), by striking ``and'' at the end of 
     the subparagraph;
       (2) in subparagraph (B)--
       (A) by striking ``so identified'' and inserting 
     ``identified under subparagraph (A)''; and
       (B) by striking the period at the end of the subparagraph 
     and inserting a semicolon; and
       (3) by adding at the end the following new subparagraphs:
       ``(C) identifying each family housing unit in excess of 
     6,000 square feet used, or intended for use, as quarters for 
     a general officer or flag officer;
       ``(D) for each family housing unit identified under 
     subparagraph (C), specifying any alternative and more 
     efficient use to which the unit could be converted (which 
     would include any costs necessary to convert the unit) and 
     containing an explanation of the reasons why the unit is not 
     being converted to the alternative use; and
       ``(E) for each family housing unit identified under 
     subparagraph (C) for which costs under subparagraph (A) or 
     new construction costs are anticipated to exceed $100,000 in 
     the next fiscal year, specifying any alternative use to which 
     the unit could be converted (which would include any costs 
     necessary to convert the unit) and an estimate of the costs 
     to demolish and rebuild the unit to private sector 
     standards.''.
       (b) Stylistic Amendments.--Such section is further 
     amended--
       (1) in subsection (a), by inserting ``Establishment.--'' 
     after ``(a)'';
       (2) in subsection (b), by inserting ``Credits to Account.--
     '' after ``(b)'';
       (3) in subsection (c), by inserting ``Availability of 
     Amounts in Account.--'' after ``(c)''; and
       (4) in subsection (d), by inserting ``Use of Account.--'' 
     after ``(d)''; and
       (5) in the heading of subsection (e), by striking ``Cost 
     of'';

     SEC. 2806. MODIFICATION OF NOTIFICATION REQUIREMENTS RELATED 
                   TO COST VARIATION AUTHORITY.

       Section 2853(c) of title 10, United States Code, is amended 
     by striking ``if--'' and paragraphs (1), (2), and (3) and 
     inserting the following: ``if the variation in cost or 
     reduction in the scope of work is approved by the Secretary 
     concerned and--
       ``(1) in the case of a cost increase or a reduction in the 
     scope of work--
       ``(A) the Secretary concerned notifies the appropriate 
     committees of Congress in writing of the cost increase or 
     reduction in scope and the reasons therefor, including a 
     description of the funds proposed to be used to finance any 
     increased costs; and
       ``(B) a period of 21 days has elapsed after the date on 
     which the notification is received by the committees or, if 
     over sooner, a period of 14 days has elapsed after the date 
     on which a copy of the notification is provided in an 
     electronic medium pursuant to section 480 of this title; or
       ``(2) in the case of a cost decrease, the Secretary 
     concerned notifies the appropriate committees of Congress in 
     writing not later than 14 days after the date funds are 
     obligated in connection with the military construction 
     project or military family housing project.''.

     SEC. 2807. CONSIDERATION OF LOCAL COMPARABILITY OF FLOOR 
                   AREAS IN CONSTRUCTION, ACQUISITION, AND 
                   IMPROVEMENT OF MILITARY UNACCOMPANIED HOUSING.

       (a) Comparability of Floor Areas.--
       (1) In general.--Section 2856 of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 2856. Military unaccompanied housing: local 
       comparability of floor areas

       ``In the construction, acquisition, and improvement of 
     military unaccompanied housing, the Secretary concerned shall 
     ensure that the floor areas of such housing in a particular 
     locality (as designated by the Secretary concerned for 
     purposes of this section) do not exceed the floor areas of 
     similar housing in the private sector in that locality.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of subchapter III of chapter 169 of such title is 
     amended by striking the item relating to section 2856 and 
     inserting the following new item:
``2856. Military unaccompanied housing: local comparability of floor 
              areas.''.

       (b) Conforming Amendments Regarding Alternative Acquisition 
     and Improvement Authority.--Section 2880(b) of such title is 
     amended--
       (1) by striking ``(1) Section 2826'' and inserting 
     ``Sections 2826 and 2856'';
       (2) by inserting ``or military unaccompanied housing'' 
     after ``military family housing''; and
       (3) by striking paragraph (2).

     SEC. 2808. CERTIFICATION REQUIRED FOR MILITARY CONSTRUCTION 
                   PROJECTS FOR FACILITIES DESIGNED TO PROVIDE 
                   TRAINING IN URBAN OPERATIONS.

       (a) Certification Required.--Section 2859 of title 10, 
     United States Code, is amended by adding at the end the 
     following new subsection:
       ``(d) Certification Required for Military Construction 
     Projects Designed to Provide Training in Urban Operations.--
     (1) Except as provided in paragraph (3), the Secretary 
     concerned may not carry out a military construction project 
     to construct a facility designed to provide training in urban 
     operations for members of the armed forces or personnel of 
     the Department of Defense or other Federal agencies until--
       ``(A) the Secretary of Defense approves a strategy for 
     training and facility construction for operations in urban 
     terrain; and
       ``(B) the Under Secretary of Defense for Personnel and 
     Readiness evaluates the project and certifies to the 
     appropriate committees of Congress that the project--
       ``(i) is consistent with the strategy; and
       ``(ii) incorporates the appropriate capabilities for joint 
     and interagency use in accordance with the strategy.
       ``(2) The Under Secretary of Defense for Personnel and 
     Readiness shall conduct the evaluation required by paragraph 
     (1)(B) in consultation with the Commander of the United 
     States Joint Forces Command.
       ``(3) This subsection shall not apply with respect to a 
     military construction project carried out under the authority 
     of section 2803, 2804, or 2808 of this title or section 2808 
     of the Military Construction Authorization Act for Fiscal 
     Year 2004 (division B of Public Law 108-136; 117 Stat. 
     1723).''.
       (b) Clerical Amendments.--
       (1) Section heading.--The heading of such section is 
     amended to read as follows:

     ``Sec. 2859. Construction requirements related to 
       antiterrorism and force protection or urban-training 
       operations''.

       (2) Table of sections.--The table of sections at the 
     beginning of subchapter III of chapter 169 of such title is 
     amended by striking the item relating to section 2859 and 
     inserting the following new item:

``2859. Construction requirements related to antiterrorism and force 
              protection or urban-training operations.''.
       (c) Effective Date.--Subsection (d) of section 2859 of 
     title 10, United States Code, as added by subsection (a), 
     shall apply with respect to military construction projects 
     described in such subsection (d) for which funds are first 
     provided for fiscal year 2007 or thereafter.

     SEC. 2809. AUTHORITY TO CARRY OUT MILITARY CONSTRUCTION 
                   PROJECTS IN CONNECTION WITH INDUSTRIAL FACILITY 
                   INVESTMENT PROGRAM.

       (a) Authority.--Subchapter III of chapter 169 of title 10, 
     United States Code, is amended by inserting after section 
     2860 the following new section:

     ``Sec. 2861. Military construction projects in connection 
       with industrial facility investment program

       ``(a) Authority.--The Secretary of Defense may carry out a 
     military construction project, not previously authorized, for 
     the purpose of carrying out activities under section 
     2474(a)(2) of this title, using funds appropriated or 
     otherwise made available for that purpose in military 
     construction accounts.
       ``(b) Crediting of Funds to Capital Budget.--Funds 
     appropriated or otherwise made available in a fiscal year for 
     the purpose of carrying out a military construction project 
     with respect to a covered depot (as defined in subsection (e) 
     of section 2476 of this title) may be credited to the amount 
     required by subsection (a) of such section to be invested in 
     the capital budgets of the covered depots in that fiscal 
     year.
       ``(c) Notice and Wait Requirement.--When a decision is made 
     to carry out a project under subsection (a), the Secretary of 
     Defense shall notify in writing the appropriate committees of 
     Congress of that decision and the savings estimated to be 
     realized from the project. The project may then be carried 
     out only after the end of the 21-day period beginning on the 
     date the notification is received by such committees or, if 
     earlier, the end of the 14-day period beginning on the date 
     on which a copy of the notification is provided in an 
     electronic medium pursuant to section 480 of this title.
       ``(d) Annual Report.--Not later than December 31 of each 
     year, the Secretary shall submit to Congress a report 
     describing actions taken under this section and the savings 
     realized from such actions during the fiscal year ending in 
     the year in which the report is submitted.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such subchapter is amended by inserting after 
     the item relating to section 2860 the following new item:

``2861. Military construction projects in connection with industrial 
              facility investment program.''.

     SEC. 2810. REPEAL OF SPECIAL REQUIREMENT FOR MILITARY 
                   CONSTRUCTION CONTRACTS ON GUAM.

       (a) Repeal.--Section 2864 of title 10, United States Code, 
     is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of subchapter III of chapter 169 of such title is 
     amended by striking the item relating to section 2864.

[[Page 20859]]



     SEC. 2811. TEMPORARY EXPANSION OF AUTHORITY TO CONVEY 
                   PROPERTY AT MILITARY INSTALLATIONS TO SUPPORT 
                   MILITARY CONSTRUCTION.

       (a) Temporary Inclusion of All Military Installations.--
     Subsection (a) of section 2869 of title 10, United States 
     Code, is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (2) by inserting ``(1)'' before ``The Secretary 
     concerned'';
       (3) by striking ``located on a military installation that 
     is closed or realigned under a base closure law'' and 
     inserting ``described in paragraph (2)''; and
       (4) by adding at the end the following new paragraphs:
       ``(2) Paragraph (1) applies with respect to real property 
     under the jurisdiction of the Secretary concerned that--
       ``(A) is located on a military installation that is closed 
     or realigned under a base closure law; or
       ``(B) is located on a military installation not covered by 
     subparagraph (A) and is determined to be excess to the needs 
     of the Department of Defense.
       ``(3) Subparagraph (B) of paragraph (2) shall apply only 
     during the period beginning on the date of the enactment of 
     the John Warner National Defense Authorization Act for Fiscal 
     Year 2007 and ending on September 30, 2008. Any conveyance of 
     real property described in such subparagraph for which the 
     Secretary concerned has provided the advance public notice 
     required by subsection (d)(1) before the expiration date may 
     be completed after that date.''.
       (b) Use of Authority to Support Agreements to Limit 
     Encroachments.--Subparagraph (A) of paragraph (1) of 
     subsection (a) of such section, as redesignated and amended 
     by subsection (a), is further amended by striking ``land 
     acquisition'' and inserting ``land acquisition, including the 
     acquisition of all right, title, and interest or a lesser 
     interest in real property under an agreement entered into 
     under section 2684a of this title to limit encroachments and 
     other constraints on military training, testing, and 
     operations''.
       (c) Advance Notice of Use of Authority; Content of 
     Notice.--Subsection (d) of such section is amended--
       (1) in paragraph (1), by striking ``closed or realigned 
     under the base closure laws is to be conveyed'' and inserting 
     ``is proposed for conveyance'';
       (2) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) The Secretary concerned may not enter into an 
     agreement under subsection (a) for the conveyance of real 
     property until--
       ``(A) the Secretary submits to Congress notice of the 
     conveyance, including--
       ``(i) a description of the real property to be conveyed by 
     the Secretary under the agreement;
       ``(ii) a description of the military construction project, 
     land acquisition, military family housing, or military 
     unaccompanied housing to be carried out under the agreement 
     in exchange for the conveyance of the property; and
       ``(iii) the amount of any payment to be made under 
     subsection (b) or under section 2684a(d) of this title to 
     equalize the fair market values of the property to be 
     conveyed and the military construction project, land 
     acquisition, military family housing, or military 
     unaccompanied housing to be carried out under the agreement 
     in exchange for the conveyance of the property; and
       ``(B) the waiting period applicable to that notice under 
     paragraph (3) expires.
       ``(3) If the notice submitted under paragraph (2) deals 
     with the conveyance of real property located on a military 
     installation that is closed or realigned under a base closure 
     law or the conveyance of real property under an agreement 
     entered into under section 2684a of this title, the Secretary 
     concerned may enter into the agreement under subsection (a) 
     for the conveyance of the property after a period of 21 days 
     has elapsed from the date of receipt of the notice or, if 
     over sooner, a period of 14 days has elapsed from the date on 
     which a copy of the notice is provided in an electronic 
     medium pursuant to section 480 of this title. In the case of 
     other real property to be conveyed under subsection (a), the 
     Secretary concerned may enter into the agreement only after a 
     period of 60 days has elapsed from the date of receipt of the 
     notice or, if over sooner, a period of 45 days has elapsed 
     from the date on which the electronic copy is provided.''.
       (d) Deposit and Use of Funds.--Subsection (e) of such 
     section is amended to read as follows:
       ``(e) Deposit and Use of Funds.--(1) Except as provided in 
     paragraph (2), the Secretary concerned may deposit funds 
     received under subsection (b) in the Department of Defense 
     housing funds established under section 2883(a) of this 
     title.
       ``(2) During the period specified in paragraph (3) of 
     subsection (a), the Secretary concerned shall deposit funds 
     received under subsection (b) in the appropriation `Foreign 
     Currency Fluctuations, Construction, Defense'.
       ``(3) The funds deposited under paragraph (2) shall be 
     available, in such amounts as provided in appropriation Acts, 
     for the purpose of paying increased costs of overseas 
     military construction and family housing construction or 
     improvement associated with unfavorable fluctuations in 
     currency exchange rates. The use of such funds for this 
     purpose does not relieve the Secretary concerned from the 
     duty to provide advance notice to Congress under section 
     2853(c) of this title whenever the Secretary approves an 
     increase in the cost of an overseas project under such 
     section.''.
       (e) Annual Reports; Effect of Failure to Submit.--
     Subsection (f) of such section is amended--
       (1) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C), respectively;
       (2) in subparagraph (C), as so redesignated, by inserting 
     before the period at the end the following: ``and of excess 
     real property at military installations'';
       (3) by striking ``(f)'' and all that follows through ``the 
     following:'' and inserting the following:
       ``(f) Annual Reports; Effect of Failure to Submit.--(1) Not 
     later than March 15 of each year, the Secretary of Defense 
     shall submit to Congress a report detailing the following:''; 
     and
       (4) by adding at the end the following new paragraph:
       ``(2) If the report for a year is not submitted to Congress 
     by the date specified in paragraph (1), the Secretary 
     concerned may not enter into an agreement under subsection 
     (a) after that date for the conveyance of real property until 
     the date on which the report is finally submitted.''.
       (f) Clerical Amendments.--
       (1) Section heading.--The heading of such section is 
     amended to read as follows:

     ``Sec. 2869. Conveyance of property at military installations 
       to support military construction or limit encroachment''.

       (2) Table of sections.--The table of sections at the 
     beginning of subchapter III of chapter 169 of such title is 
     amended by striking the item relating to section 2869 and 
     inserting the following new item:

``2869. Conveyance of property at military installations to support 
              military construction or limit encroachment.''.
       (g) Conforming Amendments to Authority to Limit 
     Encroachments.--Subsection (d)(3) of section 2684a of such 
     title is amended--
       (1) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (D), respectively;
       (2) in subparagraph (C), as so redesignated, by striking 
     ``in the sharing of acquisition costs of real property, or an 
     interest in real property, under paragraph (1)(B)'' and 
     inserting ``under subparagraph (A), either through the 
     contribution of funds or excess real property, or both,''; 
     and
       (3) by inserting after subparagraph (A) the following new 
     subparagraph (B):
       ``(B) In lieu of or in addition to making a monetary 
     contribution toward the cost of acquiring a parcel of real 
     property, or an interest therein, pursuant to an agreement 
     under this section, the Secretary concerned may convey, using 
     the authority provided by section 2869 of this title, real 
     property described in paragraph (2) of subsection (a) of such 
     section, subject to the limitation in paragraph (3) of such 
     subsection.''.

     SEC. 2812. PILOT PROJECTS FOR ACQUISITION OR CONSTRUCTION OF 
                   MILITARY UNACCOMPANIED HOUSING.

       (a) Reduction of Applicable Notification Periods.--Section 
     2881a of title 10, United States Code, is amended by striking 
     ``90 days'' both places it appears and inserting ``30 days''.
       (b) Extension of Authority.--Subsection (f) of such section 
     is amended by striking ``2007'' and inserting ``2009''.
        Subtitle B--Real Property and Facilities Administration

     SEC. 2821. CONGRESSIONAL NOTICE REQUIREMENTS, IN ADVANCE OF 
                   ACQUISITION OF LAND BY CONDEMNATION FOR 
                   MILITARY PURPOSES.

       (a) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Defense, when acquiring land for military 
     purposes, should--
       (1) make every effort to acquire the land by means of 
     purchases from willing sellers; and
       (2) employ condemnation, eminent domain, or seizure 
     procedures only as a measure of last resort in cases of 
     compelling national security requirements or at the request 
     of the seller.
       (b) Advance Notice of Use of Condemnation; Exceptions.--
     Section 2663 of title 10, United States Code, is amended--
       (1) in subsection (a)(1), ``The Secretary'' and inserting 
     ``Subject to subsection (f), the Secretary''; and
       (2) by adding at the end the following new subsections:
       ``(f) Advance Notice of Use of Condemnation.--(1) Before 
     commencing any legal proceeding to acquire any interest in 
     land under subsection (a), including acquisition for 
     temporary use, by condemnation, eminent domain, or seizure, 
     the Secretary of the military department concerned shall--
       ``(A) pursue, to the maximum extent practicable, all other 
     available options for the acquisition or use of the land, 
     such as the purchase of an easement or the execution of a 
     land exchange; and
       ``(B) submit to the congressional defense committees a 
     report containing--
       ``(i) a description of the land to be acquired;
       ``(ii) a certification that negotiations with the owner or 
     owners of the land occurred, and that the Secretary tendered 
     consideration in an amount equal to the fair market value of 
     the land, as determined by the Secretary; and
       ``(iii) an explanation of the other approaches considered 
     for acquiring use of the land, the reasons for the 
     acquisition of the land, and the reasons why alternative 
     acquisition strategies are inadequate.
       ``(2) The Secretary concerned may have proceedings brought 
     in the name of the United

[[Page 20860]]

     States to acquire the land after the end of the 21-day period 
     beginning on the date on which the report is received by the 
     committees or, if over sooner, the end of the 14-day period 
     beginning on the date on which a copy of the report is 
     provided in an electronic medium pursuant to section 480 of 
     this title.
       ``(g) Exception to Advance Notice Requirement.--If the 
     Secretary of a military department determines that the use of 
     condemnation, eminent domain, or seizure to acquire an 
     interest in land is required under subsection (a) to satisfy 
     a requirement vital to national security, and that any delay 
     would be detrimental to national security or the protection 
     of health, safety, or the environment, the Secretary may have 
     proceedings brought in the name of the United States to 
     acquire the land in advance of submitting the report required 
     by subsection (f)(1)(B). However, the Secretary shall submit 
     the report not later than seven days after commencement of 
     the legal proceedings with respect to the land.''.

     SEC. 2822. CONSOLIDATION OF DEPARTMENT OF DEFENSE AUTHORITIES 
                   REGARDING GRANTING OF EASEMENTS FOR RIGHTS-OF-
                   WAY.

       (a) Consolidation.--Subsection (a) of section 2668 of title 
     10, United States Code, is amended--
       (1) in the matter preceding paragraph (1)--
       (A) by striking ``he'' both places it appears and inserting 
     ``the Secretary''; and
       (B) by striking ``his control, to a State, Commonwealth, or 
     possession, or political subdivision thereof, or to a 
     citizen, association, partnership, or corporation of a State, 
     Commonwealth, or possession,'' and inserting ``the 
     Secretary's control'';
       (2) in paragraph (2), by striking ``oil pipe lines'' and 
     inserting ``gas, water, sewer, and oil pipe lines''; and
       (3) in paragraph (13), by striking ``he considers 
     advisable, except a purpose covered by section 2669 of this 
     title'' and inserting ``the Secretary considers advisable''.
       (b) Stylistic Amendments.--Such section is further 
     amended--
       (1) in subsection (a), by inserting ``Authorized Types of 
     Easements.--'' after ``(a)'';
       (2) in subsection (b), by inserting ``Limitation on Size of 
     Easement.--'' after ``(b)'';
       (3) in subsection (c), by inserting ``Termination.--'' 
     after ``(c)'';
       (4) in subsection (d), by inserting ``Notice to Department 
     of the Interior.--'' after ``(d)''; and
       (5) in subsection (e), by inserting ``Disposition of 
     Consideration.--'' after ``(e)''.
       (c) Conforming Repeal.--Section 2669 of such title is 
     repealed.
       (d) Clerical Amendment.--The table of sections at the 
     beginning of chapter 159 of such title is amended by striking 
     the item related to section 2669.

     SEC. 2823. AUTHORITY TO GRANT RESTRICTIVE EASEMENTS FOR 
                   CONSERVATION PURPOSES IN CONNECTION WITH LAND 
                   CONVEYANCES.

       (a) Restrictive Easements.--Chapter 159 of title 10, United 
     States Code, is amended by inserting after section 2668 the 
     following new section:

     ``Sec. 2668a. Easements: granting restrictive easements in 
       connection with land conveyances

       ``(a) Authority to Include Restrictive Easement.--In 
     connection with the conveyance of real property by the 
     Secretary concerned under any provision of law, the Secretary 
     concerned may grant an easement to an entity specified in 
     subsection (b) restricting future uses of the conveyed real 
     property for a conservation purpose consistent with section 
     170(h)(4)(A)(iv) of the Internal Revenue Code of 1986 (26 
     U.S.C. 170(h)(4)(A)(iv)).
       ``(b) Authorized Recipients.--An easement under subsection 
     (a) may be granted only to--
       ``(1) a State or local government; or
       ``(2) a qualified organization, as that term is defined in 
     section 170(h) of the Internal Revenue Code of 1986 (26 
     U.S.C. 170(h)).
       ``(c) Limitations on Use of Easement Authority.--An 
     easement under subsection (a) may not be granted unless--
       ``(1) the proposed recipient of the easement consents to 
     the receipt of the easement;
       ``(2) the Secretary concerned determines that the easement 
     is in the public interest and the conservation purpose to be 
     promoted by the easement cannot be effectively achieved 
     through the application of State law by the State or a local 
     government without the grant of restrictive easements;
       ``(3) the jurisdiction that encompasses the property to be 
     subject to the easement authorizes the grant of restrictive 
     easements; and
       ``(4) the Secretary can give or assign to a third party the 
     responsibility for monitoring and enforcing easements granted 
     under this section.
       ``(d) Consideration.--Easements granted under this section 
     shall be without consideration from the recipient.
       ``(e) Acreage Limitation.--No easement granted under this 
     section may include more land than is necessary for the 
     easement.
       ``(f) Terms and Conditions.--The grant of an easement under 
     this section shall be subject to such additional terms and 
     conditions as the Secretary concerned considers appropriate 
     to protect the interests of the United States.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2668 the following new item:

``2668a. Easements: granting restrictive easements in connection with 
              land conveyances.''.

     SEC. 2824. MAXIMUM TERM OF LEASES FOR STRUCTURES AND REAL 
                   PROPERTY RELATING TO STRUCTURES IN FOREIGN 
                   COUNTRIES NEEDED FOR PURPOSES OTHER THAN FAMILY 
                   HOUSING.

       Section 2675(a) of title 10, United States Code, is amended 
     by striking ``five years'' and inserting ``10 years''.

     SEC. 2825. CONSOLIDATION OF LAWS RELATING TO TRANSFER OF 
                   DEPARTMENT OF DEFENSE REAL PROPERTY WITHIN THE 
                   DEPARTMENT OF DEFENSE AND TO OTHER FEDERAL 
                   AGENCIES.

       (a) Inclusion of Transfer Authority Between Armed Forces.--
     Section 2696 of title 10, United States Code, is amended--
       (1) by redesignating subsections (a) and (b) as subsections 
     (b) and (c), respectively; and
       (2) by inserting before subsection (b), as so redesignated, 
     the following new subsection:
       ``(a) Transfers Between Armed Forces.--If either of the 
     Secretaries concerned requests it and the other approves, 
     real property may be transferred, without compensation, from 
     one armed force to another. Section 2571(d) of this title 
     shall apply to the transfer of real property under this 
     subsection.''.
       (b) Inclusion of Department of Justice Program to Screen 
     and Convey of Property for Correctional Facilities.--The text 
     of section 2693 of such title is amended--
       (1) by redesignating paragraphs (1), (2), and (3) of 
     subsection (a) as subparagraphs (A), (B), and (C), 
     respectively;
       (2) by redesignating paragraphs (1) and (2) of subsection 
     (b) as subparagraphs (A) and (B), respectively, and in such 
     subparagraph (B), as so redesignated, by striking ``this 
     section'' and inserting ``paragraph (1)'';
       (3) by striking ``(a) Except as provided in subsection 
     (b)'' and inserting ``(f) Screening and Conveyance of 
     Property for Correctional Facilities Purposes.--(1) Except as 
     provided in paragraph (2)'';
       (4) by striking ``(b) The provisions of this section'' and 
     inserting ``(2) Paragraph (1)''; and
       (5) by transferring the text, as so redesignated and 
     amended, to appear as a new subsection (f) at the end of 
     section 2696 of such title.
       (c) Conforming Amendments.--
       (1) Conforming amendment to authority on interchange of 
     property and services.--Section 2571(a) of such title is 
     amended by striking ``and real estate''.
       (2) Repeal of superseded authority on screening and 
     transfer for correctional purposes.--Section 2693 of such 
     title is repealed.
       (3) Conforming amendments to consolidated authority.--
     Section 2696 of such title is amended--
       (A) in subsection (b), as redesignated by subsection 
     (a)(1), by striking ``Screening Requirement.--'' and 
     inserting ``Screening Requirements for Additional Federal 
     Use.--'';
       (B) in subsection (c)(1), as redesignated by subsection 
     (a)(1), by striking ``subsection (a)'' in the first sentence 
     and inserting ``subsection (b)'';
       (C) in subsection (d), by striking ``subsection (b)(1)'' 
     and inserting ``subsection (c)(1)''; and
       (D) in subsection (e), by striking ``this section'' and 
     inserting ``subsection (b)''.
       (d) Clerical Amendments.--
       (1) Section 2571.--(A) The heading of section 2571 of such 
     title is amended to read as follows:

     ``Sec. 2571. Interchange of supplies and services''.

       (B) The table of sections at the beginning of chapter 153 
     of such title is amended by striking the item relating to 
     section 2571 and inserting the following new item:

``2571. Interchange of supplies and services.''.
       (2) Sections 2693 and 2696.--(A) The heading of section 
     2696 of such title is amended to read as follows:

     ``Sec. 2696. Real property: transfer between armed forces and 
       screening requirements for other Federal use''.

       (B) The table of sections at the beginning of chapter 159 
     of such title is amended--
       (i) by striking the item relating to section 2693; and
       (ii) by striking the item relating to section 2696 and 
     inserting the following new item:

``2696. Real property: transfer between armed forces and screening 
              requirements for other Federal use.''.

     SEC. 2826. DEFENSE ACCESS ROAD PROGRAM.

       Section 2837 of the Military Construction Authorization Act 
     for Fiscal Year 2006 (division B of Public Law 109-163; 119 
     Stat. 3522) is amended--
       (1) in subsection (a)--
       (A) by inserting ``and transit systems'' after ``that 
     roads''; and
       (B) by striking ``that is'' and inserting ``that are''; and
       (2) in subsection (b)--
       (A) by striking ``and'' at the end of paragraph (1); and
       (B) by striking paragraph (2) and inserting the following 
     new paragraphs:
       ``(2) to determine whether the existing surface 
     transportation infrastructure, including roads and transit at 
     each installation identified under paragraph (1) is adequate 
     to support the increased traffic associated with the increase 
     in the number of defense personnel described in that 
     paragraph; and
       ``(3) to determine whether the defense access road program 
     adequately considers the complete range of surface 
     transportation options, including roads and other means of 
     transit, necessary to support the national defense.''.

     SEC. 2827. REPORTS ON ARMY OPERATIONAL RANGES.

       (a) Report on Pinon Canyon Maneuver Site.--

[[Page 20861]]

       (1) Report required.--Not later than November 30, 2006, the 
     Secretary of the Army shall submit to the congressional 
     defense committees a report containing an analysis of any 
     potential expansion of the Pinon Canyon Maneuver Site at Fort 
     Carson, Colorado.
       (2) Elements of report.--The report required under 
     paragraph (1) shall include the following:
       (A) A description of the current and projected military 
     requirements of the Army for training at the Pinon Canyon 
     Maneuver Site.
       (B) An analysis of the reasons for any changes in those 
     requirements, including the extent to which the changes are 
     the result of--
       (i) an increase in military personnel using the Pinon 
     Canyon Maneuver Site due to decisions made as part of the 
     2005 round of defense base closure and realignment under 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);
       (ii) the conversion of Army brigades to a modular format;
       (iii) the Integrated Global Presence and Basing Strategy;
       (iv) high operational tempos; or
       (v) surge requirements.
       (C) A proposed plan for addressing those requirements, 
     including a description of any proposed expansion of the 
     existing Pinon Canyon Maneuver Site by acquiring privately 
     held land surrounding the site and an analysis of alternative 
     approaches that would not require expansion.
       (3) Additional elements.--If the expansion of the Pinon 
     Canyon Maneuver Site is recommended in the plan required by 
     paragraph (2)(C), the report shall also include the 
     following:
       (A) An assessment of the economic impact on local 
     communities of expanding the Pinon Canyon Maneuver Site by 
     acquiring privately held land surrounding the site.
       (B) An assessment of the environmental impact of expanding 
     the Pinon Canyon Maneuver Site.
       (C) An estimate of the costs associated with the potential 
     expansion, including land acquisition, range improvements, 
     installation of utilities, environmental restoration, and 
     other environmental activities in connection with the 
     acquisition.
       (D) An assessment of options for compensating local 
     communities for the loss of property tax revenue as a result 
     of the expansion of Pinon Canyon Maneuver Site.
       (E) An assessment of whether the acquisition of additional 
     land at the Pinon Canyon Maneuver Site can be carried out by 
     the Secretary solely through transactions, including land 
     exchanges and the lease or purchase of easements, with 
     willing sellers of the privately held land.
       (b) Limitation on Real Property Acquisition Pending 
     Report.--The Secretary of the Army may not carry out any 
     acquisition of real property to expand the Pinon Canyon 
     Maneuver Site until at least 30 days after the date on which 
     the Secretary submits the report required under subsection 
     (a).
       (c) Report on Potential Expansion of Army Operational 
     Ranges.--
       (1) Report required.--Not later than February 1, 2007, the 
     Secretary of the Army shall submit to the congressional 
     defense committees a report containing an assessment of the 
     Army operational ranges used to support range activities.
       (2) Content.--The report required under paragraph (1) shall 
     include the following information:
       (A) The size, description, and mission-essential tasks 
     supported by each Army operational range during fiscal year 
     2003.
       (B) A description of the projected changes in Army 
     operational range requirements, including the size, 
     characteristics, and attributes for mission-essential 
     activities at each range and the extent to which any changes 
     in requirements are a result of--
       (i) decisions made as part of the 2005 round of defense 
     base closure and realignment under 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);
       (ii) the conversion of Army brigades to a modular format;
       (iii) the Integrated Global Presence and Basing Strategy;
       (iv) high operational tempos; or
       (v) surge requirements.
       (C) The projected deficit or surplus of land at each Army 
     operational range, and a description of the Army's plan to 
     address that projected deficit or surplus of land as well as 
     the upgrade of range attributes at each existing Army 
     operational range.
       (D) A description of the Army's prioritization process and 
     investment strategy to address the potential expansion or 
     upgrade of Army operational ranges.
       (E) An analysis of alternatives to the expansion of Army 
     operational ranges, including an assessment of the joint use 
     of operational ranges under the jurisdiction, custody, or 
     control of the Secretary of another military department.
       (3) Definitions.--In this subsection:
       (A) The term ``Army operational range'' has the meaning 
     given the term ``operational range'' in section 101(e)(3) of 
     title 10, United States Code, except that the term is limited 
     to operational ranges under the jurisdiction, custody, or 
     control of the Secretary of the Army.
       (B) The term ``range activities'' has the meaning given 
     that term in section 101(e)(2) of such title.
                Subtitle C--Base Closure and Realignment

     SEC. 2831. MODIFICATION OF DEPOSIT REQUIREMENTS IN CONNECTION 
                   WITH LEASE PROCEEDS RECEIVED AT MILITARY 
                   INSTALLATIONS APPROVED FOR CLOSURE OR 
                   REALIGNMENT AFTER JANUARY 1, 2005.

       Section 2667(d) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1)(B)(ii), by striking ``paragraph (4) or 
     (5)'' and inserting ``paragraph (4), (5), or (6)'';
       (2) in paragraph (5), by inserting after ``lease under 
     subsection (f)'' the following: ``at a military installation 
     approved for closure or realignment under a base closure law 
     before January 1, 2005,''; and
       (3) by adding at the end the following new paragraph:
       ``(6) Money rentals received by the United States from a 
     lease under subsection (f) at a military installation 
     approved for closure or realignment under a base closure law 
     on or after January 1, 2005, shall be deposited into the 
     account established under section 2906A(a) of the Defense 
     Base Closure and Realignment Act of 1990 (part A of title 
     XXIX of Public Law 101-510; 10 U.S.C. 2687 note).''.

     SEC. 2832. REPORT ON AIR FORCE AND AIR NATIONAL GUARD BASES 
                   AFFECTED BY 2005 ROUND OF DEFENSE BASE CLOSURE 
                   AND REALIGNMENT.

       (a) Report.--Not later than January 1, 2007, the Secretary 
     of the Air Force shall submit to Congress a report on 
     planning by the Department of the Air Force for future roles 
     and missions for each Air Force and Air National Guard 
     installation that--
       (1) will have the number of aircraft, weapon systems, or 
     functions assigned to the installation reduced or eliminated 
     as a result of decisions made as part of the 2005 round of 
     defense base closure and realignment under 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); or
       (2) will serve as a receiving location for the realignment 
     of aircraft, weapons systems, or functions as a result of 
     such decisions.
       (b) Elements of Report.--The report required under 
     subsection (a) shall include the following:
       (1) An assessment of the capabilities, characteristics, and 
     capacity of the facilities, other infrastructure, and 
     personnel at each installation described in subsection (a).
       (2) A description of the planning process used by the 
     Department of the Air Force to determine future roles and 
     missions at each installation described in subsection (a), 
     including an analysis of alternatives for installations to 
     support each future role or mission.
       (3) A description of the future roles and missions under 
     consideration for each Air Force and Air National Guard 
     installation, including installations described in subsection 
     (a), and an explanation of the criteria and decision-making 
     process to make final decisions about future roles and 
     missions for each installation.
       (4) A timeline for decisions on the final determination of 
     future roles and missions for each installation described in 
     subsection (a).
                      Subtitle D--Land Conveyances

     SEC. 2841. CONVEYANCE OF EASEMENT, PINE BLUFF ARSENAL, 
                   ARKANSAS.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to Jefferson County, Arkansas 
     (in this section referred to as the ``County''), all right, 
     title, and interest of the United States in and to an 
     easement that was acquired by the United States in 1942 for 
     the benefit of Pine Bluff Arsenal, Arkansas, and encumbers 
     the real property described in subsection (c) if the 
     Secretary determines that the conveyance and subsequent use 
     of the easement will not adversely impact the mission of Pine 
     Bluff Arsenal. The conveyance shall include all appurtenances 
     to the easement and any improvements thereon constructed by 
     the United States.
       (b) Purpose of Conveyance.--The conveyance authorized by 
     subsection (a) is for the sole purpose of permitting the 
     County to construct, maintain, and operate a railroad over, 
     upon, and across the real property encumbered by the 
     easement.
       (c) Description of Property Encumbered by Easement.--The 
     real property encumbered by the easement is situated in 
     Jefferson County, Arkansas, consists of approximately 38.18 
     acres, and is described as PBR Tract No. 22, 23, 24, 25, 26, 
     27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 38-A and 39 
     and includes the real property described in a Warranty Deed 
     from C.C. Neal and Pearlee Neal dated August 14, 1942. If the 
     Secretary determines that an additional survey is necessary 
     to better determine the legal description of the real 
     property encumbered by the easement, a survey satisfactory to 
     the Secretary shall be conducted.
       (d) Further Transfer, Assignments, or Permits.--Subject to 
     subsection (b), the County may make such further transfer or 
     assignments, grant such permits, or make such other 
     arrangements with regard to the easement conveyed under 
     subsection (a) as the County considers beneficial and 
     appropriate for the interests of the County.
       (e) Payment of Costs of Conveyances.--
       (1) Payment required.--The Secretary shall require the 
     County to cover costs to be incurred by the Secretary, or to 
     reimburse the Secretary for costs incurred by the Secretary, 
     to carry out a conveyance under subsection (a), including 
     survey costs, related to the conveyance. If amounts are 
     collected from the County in advance of the Secretary 
     incurring the actual

[[Page 20862]]

     costs, and the amount collected exceeds the costs actually 
     incurred by the Secretary to carry out the conveyance, the 
     Secretary shall refund the excess amount to the County.
       (2) Treatment of amounts received.--Amounts received under 
     paragraph (1) as reimbursement for costs incurred by the 
     Secretary to carry out a conveyance under subsection (a) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyance. 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.
       (f) Additional Term 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. 2842. MODIFICATION OF LAND TRANSFER AUTHORITY, POTOMAC 
                   ANNEX, DISTRICT OF COLUMBIA.

       Section 2831(a) of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2795) is 
     amended by striking ``consisting of approximately 3 acres'' 
     and inserting ``consisting of approximately 4 acres and 
     containing two buildings, known as building 6 and building 
     7''.

     SEC. 2843. LAND CONVEYANCE, NAVAL AIR STATION, BARBERS POINT, 
                   HAWAII.

       (a) Conveyance of Property.--Not later than September 30, 
     2008, the Secretary of the Navy shall enter into a binding 
     agreement to convey, by sale, lease, or a combination 
     thereof, to any public or private person or entity outside 
     the Department of Defense certain parcels of real property, 
     including any improvements thereon, consisting of 
     approximately 499 acres located at the former Naval Air 
     Station, Barbers Point, Oahu, Hawaii, that are subject to the 
     Ford Island Master Development Agreement developed pursuant 
     to section 2814(a)(2) of title 10, United States Code, for 
     the purpose of promoting the beneficial development of the 
     real property.
       (b) Use of Existing Authority.--To implement subsection 
     (a), the Secretary may utilize the special conveyance and 
     lease authorities provided to the Secretary by subsections 
     (b) and (c) of section 2814 of title 10, United States Code, 
     for the purpose of developing or facilitating the development 
     of Ford Island, Hawaii.
       (c) Description of Property.--The exact acreage and legal 
     description of 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 a conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2844. LAND CONVEYANCES, OMAHA, NEBRASKA.

       (a) Conveyances Authorized.--
       (1) Army conveyance.--The Secretary of the Army may convey 
     to the Metropolitan Community College Area, a public 
     community college located in Omaha, Nebraska (in this section 
     referred to as the ``College'') all right, title, and 
     interest of the United States in and to three parcels of real 
     property under the control of the Army Reserve, including any 
     improvements thereon, consisting of approximately 5.42 acres 
     on the Fort Omaha campus at the College, for educational 
     purposes.
       (2) Navy conveyance.--The Secretary of the Navy may convey 
     to the College all right, title, and interest of the United 
     States in and to a parcel of real property under the control 
     of the Navy Reserve and Marine Corps Reserve, including any 
     improvements thereon, consisting of approximately 6.57 acres 
     on the Fort Omaha campus at the College, for educational 
     purposes.
       (b) Consideration.--
       (1) In general.--As consideration for each conveyance under 
     subsection (a), the College shall provide the United States, 
     whether by cash payment, in-kind consideration, or a 
     combination thereof, an amount that is not less than the fair 
     market value of the conveyed property, as determined pursuant 
     to an appraisal acceptable to the Secretary concerned.
       (2) Reduced tuition rates.--The Secretary concerned may 
     accept as in-kind consideration under paragraph (1) reduced 
     tuition rates for military personnel at the College.
       (c) Payment of Costs of Conveyances.--
       (1) Payment required.--The Secretary concerned shall 
     require the College to cover costs to be incurred by the 
     Secretary, or to reimburse the Secretary for costs incurred 
     by the Secretary, to carry out a conveyance under subsection 
     (a), including survey costs, related to the conveyance. If 
     amounts are collected from the College in advance of the 
     Secretary incurring the actual costs, and the amount 
     collected exceeds the costs actually incurred by the 
     Secretary to carry out the conveyance, the Secretary shall 
     refund the excess amount to the College.
       (2) Treatment of amounts received.--Amounts received under 
     paragraph (1) as reimbursement for costs incurred by the 
     Secretary concerned to carry out a conveyance under 
     subsection (a) shall be credited to the fund or account that 
     was used to cover the costs incurred by the Secretary in 
     carrying out the conveyance. 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 surveys satisfactory to 
     the Secretary concerned.
       (e) Additional Terms and Conditions.--The Secretary 
     concerned may require such additional terms and conditions in 
     connection with the conveyances under subsection (a) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2845. LAND CONVEYANCE, HOPKINTON, NEW HAMPSHIRE.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to the Town of Hopkinton, New Hampshire (in this 
     section referred to as the ``Town''), all right, title, and 
     interest of the United States in and to a parcel of real 
     property, including any improvements thereon, consisting of 
     approximately 90 acres located at a site in Hopkinton, New 
     Hampshire, known as the ``Kast Hill'' property for the 
     purpose of permitting the Town to use the existing sand and 
     gravel resources on the property and to ensure perpetual 
     conservation of the property.
       (b) Consideration.--
       (1) In general.--As consideration for the conveyance under 
     subsection (a), the Town shall, subject to paragraph (2), 
     provide to the United States, whether by cash payment, in-
     kind consideration, or a combination thereof, an amount that 
     is not less than the fair market value of the conveyed 
     property, as determined pursuant to an appraisal acceptable 
     to the Secretary.
       (2) Waiver of payment of consideration.--The Secretary may 
     waive the requirement for consideration under paragraph (1) 
     if the Secretary determines that the Town will not use the 
     existing sand and gravel resources to generate revenue.
       (c) Reversionary Interest.--If the Secretary determines at 
     any time that the real property conveyed under subsection (a) 
     is not being used in accordance with the purpose of the 
     conveyance specified in such subsection, all right, title, 
     and interest in and to all or any portion of the property 
     shall revert, at the option of the Secretary, to the United 
     States, and the United States shall have the right of 
     immediate entry onto the property. Any determination of the 
     Secretary under this subsection shall be made on the record 
     after an opportunity for a hearing.
       (d) Prohibition on Reconveyance of Land.--The Town may not 
     reconvey any of the land acquired from the United States 
     under subsection (a) without the prior approval of the 
     Secretary.
       (e) Payment of Costs of Conveyance.--
       (1) Payment required.--The Secretary shall require the Town 
     to cover costs to be incurred by the Secretary, or to 
     reimburse the Secretary for costs incurred by the Secretary, 
     to carry out the conveyance under subsection (a), including 
     survey costs, costs related to environmental documentation, 
     and other administrative costs related to the conveyance. If 
     amounts are collected from the Town in advance of the 
     Secretary incurring the actual costs, and the amount 
     collected exceeds the costs actually incurred by the 
     Secretary to carry out the conveyance, the Secretary shall 
     refund the excess amount to the Town.
       (2) Treatment of amounts received.--Amounts received as 
     reimbursement under paragraph (1) shall be credited to the 
     fund or account that was used to cover the costs incurred by 
     the Secretary in carrying out the conveyance. 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.
       (f) 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.
       (g) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance of real property under subsection (a) as 
     the Secretary consider appropriate to protect the interests 
     of the United States.

     SEC. 2846. LAND CONVEYANCE, NORTH HILLS ARMY RESERVE CENTER, 
                   ALLISON PARK, PENNSYLVANIA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to the North Allegheny School District (in this 
     section referred to as the ``School District'') all right, 
     title, and interest of the United States in and to a parcel 
     of real property consisting of approximately 11.15 acres and 
     containing the North Hills Army Reserve Center in Allison 
     Park, Pennsylvania, for the purpose of permitting the School 
     District to use the property for educational and recreational 
     purposes and for parking facilities related thereto.
       (b) Consideration.--The Secretary may waive any requirement 
     for consideration in connection with the conveyance under 
     subsection (a) if the Secretary determines that, were the 
     conveyance of the property to be made under subchapter III of 
     chapter 5 of title 40, United States Code, for the same 
     purpose specified in subsection (a), the conveyance could be 
     made without consideration.
       (c) Reversionary Interest.--If the Secretary determines at 
     any time that the real property conveyed under subsection (a) 
     is not being used in accordance with the purpose of the 
     conveyance specified in such subsection, all right, title, 
     and interest in and to all or any portion of the property 
     shall revert, at the option of the Secretary, to the United 
     States, and the United

[[Page 20863]]

     States shall have the right of immediate entry onto the 
     property. Any determination of the Secretary under this 
     subsection shall be made on the record after an opportunity 
     for a hearing.
       (d) Payment of Costs of Conveyance.--
       (1) Payment required.--The Secretary shall require the 
     School District to cover costs to be incurred by the 
     Secretary, or to reimburse the Secretary for costs incurred 
     by the Secretary, to carry out the conveyance under 
     subsection (a), including survey costs, costs related to 
     environmental documentation, and other administrative costs 
     related to the conveyance. If amounts are collected from the 
     School District in advance of the Secretary incurring the 
     actual costs, and the amount collected exceeds the costs 
     actually incurred by the Secretary to carry out the 
     conveyance, the Secretary shall refund the excess amount to 
     the School District.
       (2) Treatment of amounts received.--Amounts received as 
     reimbursement under paragraph (1) shall be credited to the 
     fund or account that was used to cover the costs incurred by 
     the Secretary in carrying out the conveyance. 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.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2847. TRANSFER OF JURISDICTION, FORT JACKSON, SOUTH 
                   CAROLINA.

       (a) Transfer Authorized.--The Secretary of the Army may 
     transfer, without reimbursement, to the administrative 
     jurisdiction of the Secretary of Veterans Affairs a parcel of 
     real property, including any improvements thereon, consisting 
     of approximately 600 acres and comprising a portion of Fort 
     Jackson, South Carolina.
       (b) Use of Land.--The Secretary of Veterans Affairs shall 
     establish on the real property transferred under subsection 
     (a) a national cemetery under chapter 24 of title 38, United 
     States Code.
       (c) Legal Description.--The exact acreage and legal 
     description of the real property to be transferred under this 
     section shall be determined by a survey satisfactory to the 
     Secretary of the Army. The cost of the survey shall be borne 
     by the Secretary of Veterans Affairs.
       (d) Additional Terms and Conditions.--The Secretary of the 
     Army may require such additional terms and conditions in 
     connection with the transfer under this section as the 
     Secretary of the Army considers appropriate to protect the 
     interests of the United States.

     SEC. 2848. SENSE OF CONGRESS REGARDING LAND CONVEYANCE 
                   INVOLVING ARMY RESERVE CENTER, MARSHALL, TEXAS.

       It is the sense of Congress that the Secretary of the Army 
     should consider the feasibility of conveying the Army Reserve 
     Center at 1209 Pinecrest Drive East in Marshall, Texas, to 
     the Marshall-Harrison County Veterans Association for the 
     purpose of assisting the efforts of the Association in 
     erecting a veterans memorial, creating a park, and 
     establishing a museum recognizing and honoring the sacrifices 
     and accomplishments of veterans of the Armed Forces.

     SEC. 2849. MODIFICATIONS TO LAND CONVEYANCE AUTHORITY, 
                   ENGINEERING PROVING GROUND, FORT BELVOIR, 
                   VIRGINIA.

       (a) Construction of Security Barrier.--Section 2836 of the 
     Military Construction Authorization Act for Fiscal Year 2002 
     (division B of Public Law 107-107; 115 Stat. 1314), as 
     amended by section 2846 of the Military Construction 
     Authorization Act for Fiscal Year 2006 (division B of Public 
     Law 109-163; 119 Stat. 3527), is further amended--
       (1) in subsection (b)(4), by striking ``$3,880,000'' and 
     inserting ``$4,880,000''; and
       (2) in subsection (d)--
       (A) in paragraph (1), by inserting after ``Virginia,'' the 
     following: ``and the construction of a security barrier, as 
     applicable,''; and
       (B) in paragraph (2), by inserting after ``Building 191'' 
     the following: ``and the construction of a security barrier, 
     as applicable''.
       (b) Authority to Enter Into Alternative Agreement for 
     Design and Construction of Fairfax County Parkway Portion.--
     Such section 2836 is further amended--
       (1) in subsection (b)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) except as provided in subsection (f), design and 
     construct, at its expense and for public benefit, the portion 
     of the Fairfax County Parkway through the Engineer Proving 
     Ground (in this section referred to as the `Parkway 
     portion');''; and
       (B) in paragraph (2), by inserting after ``C514'' the 
     following: ``, RW-214 (in this section referred to as 
     `Parkway project')'';
       (2) by redesignating subsection (f) as subsection (g);
       (3) by inserting after subsection (e) the following new 
     subsection:
       ``(f) Alternate Agreement for Construction of Road.--(1) 
     The Secretary of the Army may, in connection with the 
     conveyance authorized under subsection (a), enter into an 
     agreement with the Commonwealth providing for the design and 
     construction by the Department of the Army or the United 
     States Department of Transportation of the Parkway portion 
     and other portions of the Fairfax County Parkway off the 
     Engineer Proving Ground that are necessary to complete the 
     Parkway project (in this subsection referred to as the 
     `alternate agreement') if the Secretary determines that the 
     alternate agreement is in the best interests of the United 
     States to support the permanent relocation of additional 
     military and civilian personnel at Fort Belvoir pursuant to 
     decisions made as part of the 2005 round of defense base 
     closure and realignment under 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).
       ``(2) If the Secretary of Defense certifies that the 
     Parkway portion is important to the national defense pursuant 
     to section 210 of title 23, United States Code, the Secretary 
     of the Army may enter into an agreement with the Secretary of 
     Transportation to carry out the alternate agreement under the 
     Defense Access Road Program.
       ``(3) The Commonwealth shall pay to the Secretary of the 
     Army the costs of the design and construction of the Parkway 
     portion and any other portions of the Fairfax County Parkway 
     off the Engineer Proving Ground designed and constructed 
     under the alternate agreement. The Secretary shall apply such 
     payment to the design and construction provided for in the 
     alternate agreement.
       ``(4) Using the authorities available to the Secretary 
     under chapter 160 of title 10, United States Code, and funds 
     deposited in the Environmental Restoration Account, Army, 
     established by section 2703(a) of such title and appropriated 
     for this purpose, the Secretary may carry out environmental 
     restoration activities on real property under the 
     jurisdiction of the Secretary in support of the construction 
     of the Parkway portion.
       ``(5) The alternate agreement shall be subject to the 
     following conditions:
       ``(A) The Commonwealth shall acquire and retain all 
     necessary right, title, and interest in any real property not 
     under the jurisdiction of the Secretary that is necessary for 
     construction of the Parkway portion or for construction of 
     any other portions of the Fairfax County Parkway off the 
     Engineer Proving Ground that will be constructed under the 
     alternate agreement, and shall grant to the United States all 
     necessary access to and use of such property for such 
     construction.
       ``(B) The Secretary shall receive consideration from the 
     Commonwealth as required in subsections (b)(2), (b)(3), and 
     (b)(4) and shall carry out the acceptance and disposition of 
     funds in accordance with subsection (d).
       ``(6) The design of the Parkway portion under the alternate 
     agreement shall be subject to the approval of the Secretary 
     and the Commonwealth in accordance with the Virginia 
     Department of Transportation Approved Plan, dated June 15, 
     2004, Project #R000-029-249, PE-108, C-514, RW-214. For each 
     phase of the design and construction of the Parkway portion 
     under the alternate agreement, the Secretary may--
       ``(A) accept funds from the Commonwealth; or
       ``(B) transfer funds received from the Commonwealth to the 
     United States Department of Transportation.
       ``(7) Upon completion of the construction of the Parkway 
     portion and any other portions of the Fairfax County Parkway 
     off the Engineer Proving Ground required under the alternate 
     agreement, the Secretary shall carry out the conveyance under 
     subsection (a). As a condition of such conveyance carried out 
     under the alternate agreement, the Secretary shall receive a 
     written commitment, in a form satisfactory to the Secretary, 
     that the Commonwealth agrees to accept all responsibility for 
     the costs of operation and maintenance of the Parkway portion 
     upon conveyance to the Commonwealth of such real property.''; 
     and
       (4) in subsection (g), as redesignated by paragraph (2), by 
     inserting ``or the alternate agreement authorized under 
     subsection (f)'' after ``conveyance under subsection (a)''.

     SEC. 2850. LAND CONVEYANCE, RADFORD ARMY AMMUNITION PLANT, 
                   NEW RIVER UNIT, VIRGINIA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Commonwealth of 
     Virginia on behalf of the Virginia Department of Veterans 
     Services (in this section referred to as the 
     ``Commonwealth'') all right, title, and interest of the 
     United States in and to a parcel of real property, including 
     any improvements thereon, consisting of approximately 85 
     acres at the Radford Army Ammunition Plant, New River Unit, 
     Virginia, for the purpose of permitting the Commonwealth to 
     establish on the property a cemetery operated by the 
     Commonwealth for veterans of the Armed Forces.
       (b) Reversionary Interest.--If the Secretary determines at 
     any time that the real property conveyed under subsection (a) 
     is not being used in accordance with the purpose of the 
     conveyance specified in such subsection, all right, title, 
     and interest in and to the property shall revert, at the 
     option of the Secretary, to the United States, and the United 
     States shall have the right of immediate entry onto the 
     property. Any determination of the Secretary under this 
     subsection shall be made on the record after an opportunity 
     for a hearing.
       (c) Payment of Costs of Conveyance.--

[[Page 20864]]

       (1) Payment required.--The Secretary shall require the 
     Commonwealth to cover costs to be incurred by the Secretary, 
     or to reimburse the Secretary for costs incurred by the 
     Secretary, to carry out the conveyance under subsection (a), 
     including survey costs, costs related to environmental 
     documentation, and other administrative costs related to the 
     conveyance. If amounts are collected from the Commonwealth in 
     advance of the Secretary incurring the actual costs, and the 
     amount collected exceeds the costs actually incurred by the 
     Secretary to carry out the conveyance, the Secretary shall 
     refund the excess amount to the Commonwealth.
       (2) Treatment of amounts received.--Amounts received as 
     reimbursement under paragraph (1) shall be credited to the 
     fund or account that was used to cover the costs incurred by 
     the Secretary in carrying out the conveyance. 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 Real 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.
                      Subtitle E--Energy Security

     SEC. 2851. CONSOLIDATION AND ENHANCEMENT OF LAWS TO IMPROVE 
                   DEPARTMENT OF DEFENSE ENERGY EFFICIENCY AND 
                   CONSERVATION.

       (a) Creation of New Chapter.--
       (1) Reorganization of section 2865 of title 10.--Title 10, 
     United States Code, is amended by inserting after chapter 172 
     the following new chapter:

                     ``CHAPTER 173--ENERGY SECURITY

``Subchapter
``I. Energy Security Activities...............................2911 ....

``II. Energy-Related Procurement..............................2922 ....

``III. General Provisions.....................................2925 ....

               ``SUBCHAPTER I--ENERGY SECURITY ACTIVITIES

``Sec.
``2911. Energy performance goals and plan for Department of Defense.
``2912. Availability and use of energy cost savings.
``2913. Energy savings contracts and activities.
``2914. Energy conservation construction projects.
``2915. New construction: use of renewable forms of energy and energy 
              efficient products.
``2916. Sale of electricity from alternate energy and cogeneration 
              production facilities.
``2917. Development of geothermal energy on military lands.
``2918. Fuel sources for heating systems; prohibition on converting 
              certain heating facilities.

     ``Sec. 2911. Energy performance goals and plan for Department 
       of Defense

       ``(a) Energy Performance Goals.--(1) The Secretary of 
     Defense shall submit to the congressional defense committees 
     the energy performance goals for the Department of Defense 
     regarding transportation systems, support systems, utilities, 
     and infrastructure and facilities.
       ``(2) The energy performance goals shall be submitted 
     annually not later than the date on which the President 
     submits to Congress the budget for the next fiscal year under 
     section 1105 of title 31 and cover that fiscal year as well 
     as the next five, l0, and 20 years. The Secretary shall 
     identify changes to the energy performance goals since the 
     previous submission.
       ``(b) Energy Performance Plan.--The Secretary of Defense 
     shall develop, and update as necessary, a comprehensive plan 
     to help achieve the energy performance goals for the 
     Department of Defense.
       ``(c) Special Considerations.--For the purpose of 
     developing and implementing the energy performance goals and 
     energy performance plan, the Secretary of Defense shall 
     consider at a minimum the following:
       ``(1) Opportunities to reduce the current rate of 
     consumption of energy.
       ``(2) Opportunities to reduce the future demand and the 
     requirements for the use of energy.
       ``(3) Opportunities to implement conservation measures to 
     improve the efficient use of energy.
       ``(4) Opportunities to pursue alternative energy 
     initiatives, including the use of alternative fuels in 
     military vehicles and equipment.
       ``(5) Cost effectiveness, cost savings, and net present 
     value of alternatives.
       ``(6) The value of diversification of types and sources of 
     energy used.
       ``(7) The value of economies-of-scale associated with fewer 
     energy types used.
       ``(8) The value of the use of renewable energy sources.
       ``(9) The potential for an action to serve as an incentive 
     for members of the armed forces and civilian personnel to 
     reduce energy consumption or adopt an improved energy 
     performance measure.
       ``(d) Selection of Energy Conservation Measures.--(1) For 
     the purpose of implementing the energy performance plan, the 
     Secretary of Defense shall provide that the selection of 
     energy conservation measures, including energy efficient 
     maintenance, shall be limited to those measures that--
       ``(A) are readily available;
       ``(B) demonstrate an economic return on the investment;
       ``(C) are consistent with the energy performance goals and 
     energy performance plan for the Department; and
       ``(D) are supported by the special considerations specified 
     in subsection (c).
       ``(2) In this subsection, the term `energy efficient 
     maintenance' includes--
       ``(A) the repair of military vehicles, equipment, or 
     facility and infrastructure systems, such as lighting, 
     heating, or cooling equipment or systems, or industrial 
     processes, by replacement with technology that--
       ``(i) will achieve energy savings over the life-cycle of 
     the equipment or system being repaired; and
       ``(ii) will meet the same end needs as the equipment or 
     system being repaired; and
       ``(B) improvements in an operation or maintenance process, 
     such as improved training or improved controls, that result 
     in energy savings.

     ``Sec. 2912. Availability and use of energy cost savings

       ``(a) Availability.--An amount of the funds appropriated to 
     the Department of Defense for a fiscal year that is equal to 
     the amount of energy cost savings realized by the Department, 
     including financial benefits resulting from shared energy 
     savings contracts entered into under section 2913 of this 
     title, shall remain available for obligation under subsection 
     (b) until expended, without additional authorization or 
     appropriation.
       ``(b) Use.--The Secretary of Defense shall provide that the 
     amount that remains available for obligation under subsection 
     (a) and the funds made available under section 2916(b)(2) of 
     this title shall be used as follows:
       ``(1) One-half of the amount shall be used for the 
     implementation of additional energy conservation measures at 
     buildings, facilities, or installations of the Department of 
     Defense or related to vehicles and equipment of the 
     Department, which are designated, in accordance with 
     regulations prescribed by the Secretary of Defense, by the 
     head of the department, agency, or instrumentality that 
     realized the savings referred to in subsection (a).
       ``(2) One-half of the amount shall be used at the 
     installation at which the savings were realized, as 
     determined by the commanding officer of such installation 
     consistent with applicable law and regulations, for--
       ``(A) improvements to existing military family housing 
     units;
       ``(B) any unspecified minor construction project that will 
     enhance the quality of life of personnel; or
       ``(C) any morale, welfare, or recreation facility or 
     service.
       ``(c) Treatment of Certain Financial Incentives.--Financial 
     incentives received from gas or electric utilities under 
     section 2913 of this title shall be credited to an 
     appropriation designated by the Secretary of Defense. Amounts 
     so credited shall be merged with the appropriation to which 
     credited and shall be available for the same purposes and the 
     same period as the appropriation with which merged.
       ``(d) Congressional Notification.--The Secretary of Defense 
     shall include in the budget material submitted to Congress in 
     connection with the submission of the budget for a fiscal 
     year pursuant to section 1105 of title 31 a separate 
     statement of the amounts available for obligation under this 
     section in that fiscal year.

     ``Sec. 2913. Energy savings contracts and activities

       ``(a) Shared Energy Savings Contracts.--(1) The Secretary 
     of Defense shall develop a simplified method of contracting 
     for shared energy savings contract services that will 
     accelerate the use of these contracts with respect to 
     military installations and will reduce the administrative 
     effort and cost on the part of the Department of Defense as 
     well as the private sector.
       ``(2) In carrying out paragraph (1), the Secretary of 
     Defense may--
       ``(A) request statements of qualifications (as prescribed 
     by the Secretary of Defense), including financial and 
     performance information, from firms engaged in providing 
     shared energy savings contracting;
       ``(B) designate from the statements received, with an 
     update at least annually, those firms that are presumptively 
     qualified to provide shared energy savings services;
       ``(C) select at least three firms from the qualifying list 
     to conduct discussions concerning a particular proposed 
     project, including requesting a technical and price proposal 
     from such selected firms for such project; and
       ``(D) select from such firms the most qualified firm to 
     provide shared energy savings services pursuant to a 
     contractual arrangement that the Secretary determines is fair 
     and reasonable, taking into account the estimated value of 
     the services to be rendered and the scope and nature of the 
     project.
       ``(3) In carrying out paragraph (1), the Secretary may also 
     provide for the direct negotiation, by departments, agencies, 
     and instrumentalities of the Department of Defense, of 
     contracts with shared energy savings contractors that have 
     been selected competitively and approved by any gas or 
     electric utility serving the department, agency, or 
     instrumentality concerned.
       ``(b) Participation in Gas or Electric Utility Programs.--
     The Secretary of Defense shall permit and encourage each 
     military department, Defense Agency, and other 
     instrumentality of

[[Page 20865]]

     the Department of Defense to participate in programs 
     conducted by any gas or electric utility for the management 
     of energy demand or for energy conservation.
       ``(c) Acceptance of Financial Incentive, Goods, or 
     Services.--The Secretary of Defense may authorize any 
     military installation to accept any financial incentive, 
     goods, or services generally available from a gas or electric 
     utility, to adopt technologies and practices that the 
     Secretary determines are in the interests of the United 
     States and consistent with the energy performance goals for 
     the Department of Defense.
       ``(d) Agreements With Gas or Electric Utilities.--(1) The 
     Secretary of Defense may authorize the Secretary of a 
     military department having jurisdiction over a military 
     installation to enter into agreements with gas or electric 
     utilities to design and implement cost-effective demand and 
     conservation incentive programs (including energy management 
     services, facilities alterations, and the installation and 
     maintenance of energy saving devices and technologies by the 
     utilities) to address the requirements and circumstances of 
     the installation.
       ``(2) If an agreement under this subsection provides for a 
     utility to advance financing costs for the design or 
     implementation of a program referred to in that paragraph to 
     be repaid by the United States, the cost of such advance may 
     be recovered by the utility under terms no less favorable 
     than those applicable to its most favored customer.
       ``(3) Subject to the availability of appropriations, 
     repayment of costs advanced under paragraph (2) shall be made 
     from funds available to a military department for the 
     purchase of utility services.
       ``(4) An agreement under this subsection shall provide that 
     title to any energy-saving device or technology installed at 
     a military installation pursuant to the agreement vest in the 
     United States. Such title may vest at such time during the 
     term of the agreement, or upon expiration of the agreement, 
     as determined to be in the best interests of the United 
     States.

     ``Sec. 2914. Energy conservation construction projects

       ``(a) Projects Authorized.--The Secretary of Defense may 
     carry out a military construction project for energy 
     conservation, not previously authorized, using funds 
     appropriated or otherwise made available for that purpose.
       ``(b) Congressional Notification.--When a decision is made 
     to carry out a project under this section, the Secretary of 
     Defense shall notify in writing the appropriate committees of 
     Congress of that decision. The project may then be carried 
     out only after the end of the 21-day period beginning on the 
     date the notification is received by such committees or, if 
     earlier, the end of the 14-day period beginning on the date 
     on which a copy of the notification is provided in an 
     electronic medium pursuant to section 480 of this title.

              ``SUBCHAPTER II--ENERGY-RELATED PROCUREMENT

``Sec.
``2922. Liquid fuels and natural gas: contracts for storage, handling, 
              or distribution.
``2922a. Contracts for energy or fuel for military installations.
``2922b. Procurement of energy systems using renewable forms of energy.
``2922c. Procurement of gasohol as motor vehicle fuel.
``2922d. Procurement of fuel derived from coal, oil shale, and tar 
              sands.
``2922e. Acquisition of certain fuel sources: authority to waive 
              contract procedures; acquisition by exchange; sales 
              authority.
``2922f. Preference for energy efficient electric equipment.

                  ``SUBCHAPTER III--GENERAL PROVISIONS

``Sec.
``2925. Annual report.

     ``Sec. 2925. Annual report

       ``(a) Report Required.--As part of the annual submission of 
     the energy performance goals for the Department of Defense 
     under section 2911 of this title, the Secretary of Defense 
     shall submit a report containing the following:
       ``(1) A description of the progress made to achieve the 
     goals of the Energy Policy Act of 2005 (Public Law 109-58) 
     and the energy performance goals for the Department of 
     Defense during the preceding fiscal year.
       ``(2) A description of the actions taken to implement the 
     energy performance plan in effect under section 2911 of this 
     title and carry out this chapter during the preceding fiscal 
     year.
       ``(3) A description of the energy savings realized from 
     such actions.
       ``(4) An estimate of the types and quantities of energy 
     consumed by the Department of Defense and members of the 
     armed forces and civilian personnel residing or working on 
     military installations during the preceding fiscal year, 
     including a breakdown of energy consumption by user groups 
     and types of energy, energy costs, and the quantities of 
     renewable energy produced or procured by the Department.
       ``(5) A description of the types and amount of financial 
     incentives received under section 2913 of this title during 
     the preceding fiscal year and the appropriation account or 
     accounts to which the incentives were credited.
       ``(b) Initial Report.--In the first report required under 
     this section, the Secretary of Defense shall include the 
     following:
       ``(1) Such recommendations for changes to this chapter as 
     the Secretary considers appropriate to improve energy 
     performance.
       ``(2) A description of how responsibility over energy 
     performance is distributed within the Department of Defense 
     and a discussion on whether such responsibilities should be 
     consolidated within a single entity.
       ``(3) A discussion of the manner in which the Secretary 
     intends to balance the considerations specified in subsection 
     (c) of section 2911 of this title in developing and 
     implementing the energy performance goals and energy 
     performance plan.
       ``(4) A discussion of the extent to which non-direct energy 
     costs are considered in making research and development, 
     procurement, and construction decisions.''.
       (2) Conforming repeal.--Section 2865 of title 10, United 
     States Code, is repealed.
       (b) Inclusion of Additional Energy-Related Sections.--
       (1) Transfer and redesignation of chapter 159 and 169 
     provisions.--Sections 2857, 2867, 2689, and 2690 of title 10, 
     United States Code, are--
       (A) transferred to chapter 173 of such title, as added by 
     subsection (a)(1);
       (B) inserted after section 2914; and
       (C) redesignated as sections 2915, 2916, 2917, and 2918, 
     respectively.
       (2) Transfer and redesignation of chapter 141 provisions.--
     Sections 2388, 2394, 2394a, 2398, 2398a, 2404, and 2410c of 
     such title are--
       (A) transferred to chapter 173 of such title, as added by 
     subsection (a)(1);
       (B) inserted after the table of sections of subchapter II 
     of such chapter; and
       (C) redesignated as sections 2922, 2922a, 2922b, 2922c, 
     2922d, 2922e, and 2922f, respectively.
       (3) Conforming amendments.--Chapter 173 of such title, as 
     added by subsection (a)(1), is amended--
       (A) in section 2915 (former section 2857), as transferred 
     and redesignated by paragraph (1)--
       (i) in subsection (a), by striking ``would be practical and 
     economically feasible'' and inserting ``is consistent with 
     the energy performance goals and energy performance plan for 
     the Department of Defense developed under section 2911 of 
     this title and supported by the special considerations 
     specified in subsection (c) of such section''; and
       (ii) in subsection (b), by striking ``in those cases in 
     which use of such forms of energy has the potential for 
     reduced energy costs'';
       (B) in subsection (b)(2) of section 2916 (former section 
     2867), as transferred and redesignated by paragraph (1), by 
     striking ``section 2865(a) of this title'' and inserting 
     ``section 2911(b) of this title'';
       (C) in subsection (a)(1) of section 2922a (former section 
     2394), as transferred and redesignated by paragraph (2), by 
     striking ``section 2689 of this title'' and inserting 
     ``section 2917 of this title'';
       (D) in section 2922b (former section 2394a), as transferred 
     and redesignated by paragraph (2)--
       (i) in subsection (a)--

       (I) by striking ``possible and will be cost effective, 
     reliable, and otherwise suited'' and inserting ``possible, 
     suited''; and
       (II) by striking ``his jurisdiction'' and inserting ``the 
     jurisdiction of the Secretary, consistent with the energy 
     performance goals and energy performance plan for the 
     Department of Defense developed under section 2911 of this 
     title, and supported by the special considerations specified 
     in subsection (c) of such section'';

       (ii) in subsection (b)--

       (I) by striking ``cost effective and''; and
       (II) by striking ``section 2857 of this title'' and 
     inserting ``section 2915 of this title''; and

       (iii) by striking subsection (c); and
       (E) in subsection (a) of section 2922f (former section 
     2410c), as transferred and redesignated by paragraph (2)--
       (i) by striking ``When cost effective, in'' and inserting 
     ``In''; and
       (ii) by striking ``procurement, as the case may be.'' and 
     inserting ``procurement, if providing such a preference is 
     consistent with the energy performance goals and energy 
     performance plan for the Department of Defense developed 
     under section 2911 of this title and supported by the special 
     considerations specified in subsection (c) of such 
     section.''.
       (4) Applicability of chapter 169 definitions.--Section 
     2801(c) of such title is amended by inserting ``and chapter 
     173 of this title'' after ``chapter'' in the matter preceding 
     paragraph (1).
       (c) Clerical Amendments.--
       (1) Reference to new chapter.--The tables of chapters at 
     the beginning of subtitle A of title 10, United States Code, 
     and at the beginning of part IV of such subtitle, are each 
     amended by inserting after the item relating to chapter 172 
     the following new item:

``173. Energy Security..........................................2911''.

       (2) Chapter 141.--The table of sections at the beginning of 
     chapter 141 of such title is amended by striking the items 
     relating to sections 2388, 2394, 2394a, 2398, 2398a, 2404, 
     and 2410c.
       (3) Chapter 159.--The table of sections at the beginning of 
     chapter 159 of such title is amended by striking the items 
     relating to sections 2689 and 2690.
       (4) Chapter 169.--The table of sections at the beginning of 
     subchapter III of chapter 169 of such title is amended by 
     striking the items relating to sections 2857, 2865, and 2867.
       (d) Conforming Amendment to Water Conservation Authority.--
     Subsection (b) of section 2866 of title 10, United States 
     Code, is amended to read as follows:
       ``(b) Use of Financial Incentives and Water Cost Savings.--
     (1) Financial incentives

[[Page 20866]]

     received from utilities for management of water demand or 
     water conservation under subsection (a)(2) shall be credited 
     to an appropriation designated by the Secretary of Defense. 
     Amounts so credited shall be merged with the appropriation to 
     which credited and shall be available for the same purposes 
     and the same period as the appropriation with which merged.
       ``(2) Water cost savings realized under subsection (a)(3) 
     shall be used as follows:
       ``(A) One-half of the amount shall be used for water 
     conservation activities at such buildings, facilities, or 
     installations of the Department of Defense as may be 
     designated (in accordance with regulations prescribed by the 
     Secretary of Defense) by the head of the department, agency, 
     or instrumentality that realized the water cost savings.
       ``(B) One-half of the amount shall be used at the 
     installation at which the savings were realized, as 
     determined by the commanding officer of such installation 
     consistent with applicable law and regulations, for--
       ``(i) improvements to existing military family housing 
     units;
       ``(ii) any unspecified minor construction project that will 
     enhance the quality of life of personnel; or
       ``(iii) any morale, welfare, or recreation facility or 
     service.
       ``(3) The Secretary of Defense shall include in the budget 
     material submitted to Congress in connection with the 
     submission of the budget for a fiscal year pursuant to 
     section 1105 of title 31 a separate statement of the amounts 
     available for obligation under this subsection in that fiscal 
     year.''.

     SEC. 2852. DEPARTMENT OF DEFENSE GOAL REGARDING USE OF 
                   RENEWABLE ENERGY TO MEET ELECTRICITY NEEDS.

       Section 2911 of title 10, United States Code, as added by 
     section 2851 of this Act, is amended by adding at the end the 
     following new subsection:
       ``(e) Goal Regarding Use of Renewable Energy to Meet 
     Electricity Needs.--It shall be the goal of the Department of 
     Defense--
       ``(1) to produce or procure not less than 25 percent of the 
     total quantity of electric energy it consumes within its 
     facilities and in its activities during fiscal year 2025 and 
     each fiscal year thereafter from renewable energy sources (as 
     defined in section 203(b) of the Energy Policy Act of 2005 
     (42 U.S.C. 15852(b))); and
       ``(2) to produce or procure electric energy from renewable 
     energy sources whenever the use of such renewable energy 
     sources is consistent with the energy performance goals and 
     energy performance plan for the Department and supported by 
     the special considerations specified in subsection (c).''.

     SEC. 2853. CONGRESSIONAL NOTIFICATION OF CANCELLATION CEILING 
                   FOR DEPARTMENT OF DEFENSE ENERGY SAVINGS 
                   PERFORMANCE CONTRACTS.

       Section 2913 of title 10, United States Code, as added by 
     section 2851 of this Act, is amended by adding at the end the 
     following new subsection:
       ``(e) Congressional Notification of Cancellation Ceiling 
     for Energy Savings Performance Contracts.--When a decision is 
     made to award an energy savings performance contract that 
     contains a clause setting forth a cancellation ceiling in 
     excess of $7,000,000, the Secretary of Defense shall submit 
     to the appropriate committees of Congress written 
     notification of the proposed contract and of the proposed 
     cancellation ceiling for the contract. The notification shall 
     include the justification for the proposed cancellation 
     ceiling. The contract may then be awarded only after the end 
     of the 30-day period beginning on the date the notification 
     is received by such committees or, if earlier, the end of the 
     15-day period beginning on the date on which a copy of the 
     notification is provided in an electronic medium pursuant to 
     section 480 of this title.''.

     SEC. 2854. USE OF ENERGY EFFICIENCY PRODUCTS IN NEW 
                   CONSTRUCTION.

       (a) Use of Energy Efficient Products.--Section 2915 of 
     title 10, United States Code, as transferred, redesignated, 
     and amended by section 2851(b) of this Act, is amended by 
     adding at the end the following new subsection:
       ``(e) Use of Energy Efficiency Products in New 
     Construction.--(1) The Secretary of Defense shall ensure, to 
     the maximum extent practicable, that energy efficient 
     products meeting the requirements of the Department of 
     Defense are used in new facility construction by or for the 
     Department carried out under chapter 169 of this title if 
     such products are readily available and their use is 
     consistent with the energy performance goals and energy 
     performance plan for the Department developed under section 
     2911 of this title and supported by the special 
     considerations specified in subsection (c) of such section.
       ``(2) In determining the energy efficiency of products, the 
     Secretary shall consider products that--
       ``(A) meet or exceed Energy Star specifications; or
       ``(B) are listed on the Federal Energy Management Program 
     Product Energy Efficiency Recommendations product list of the 
     Department of Energy.''.
       (b) Clerical Amendments.--Such section is further amended--
       (1) by striking the section heading and inserting the 
     following:

     ``Sec. 2915. New construction: use of renewable forms of 
       energy and energy efficient products'';

       (2) in subsection (a), by inserting ``Use of Renewable 
     Forms of Energy Encouraged.--'' after ``(a)'';
       (3) in subsection (b), by inserting ``Consideration During 
     Design Phase of Projects.--'' after ``(b)'';
       (4) in subsection (c), by inserting ``Determination of Cost 
     Effectiveness.--'' after ``(c)''; and
       (5) in subsection (d), by inserting ``Exception to Square 
     Feet and Cost Per Square Foot Limitations.--'' after ``(d)''.
                       Subtitle F--Other Matters

     SEC. 2861. AVAILABILITY OF RESEARCH AND TECHNICAL ASSISTANCE 
                   UNDER DEFENSE ECONOMIC ADJUSTMENT PROGRAM.

       Section 2391 of title 10, United States Code, is amended by 
     inserting after subsection (b) the following new subsection:
       ``(c) Research and Technical Assistance.--The Secretary of 
     Defense may make grants to, or conclude cooperative 
     agreements or enter into contracts with, another Federal 
     agency, a State or local government, or any private entity to 
     conduct research and provide technical assistance in support 
     of activities under this section or Executive Order 12788 (57 
     Fed. Reg. 2213), as amended by section 33 of Executive Order 
     13286 (68 Fed. Reg. 10625) and Executive Order 13378 (70 Fed. 
     Reg. 28413).''.

     SEC. 2862. AVAILABILITY OF COMMUNITY PLANNING ASSISTANCE 
                   RELATING TO ENCROACHMENT OF CIVILIAN 
                   COMMUNITIES ON MILITARY FACILITIES USED FOR 
                   TRAINING BY THE ARMED FORCES.

       Section 2391(d)(1) of title 10, United States Code, is 
     amended by adding at the end the following new sentence: 
     ``For purposes of subsection (b)(1)(D), the term `military 
     installation' includes a military facility owned and operated 
     by any of the several States, the District of Columbia, the 
     Commonwealth of Puerto Rico, American Samoa, Guam, or the 
     Virgin Islands, even though the facility is not under the 
     jurisdiction of the Department of Defense, if the Secretary 
     of Defense determines that the military facility is subject 
     to significant use for training by the armed forces.''.

     SEC. 2863. PROHIBITIONS AGAINST MAKING CERTAIN MILITARY 
                   AIRFIELDS OR FACILITIES AVAILABLE FOR USE BY 
                   CIVIL AIRCRAFT.

       (a) Prohibitions.--With respect to each military 
     installation specified in subsection (b), the Secretary of 
     Defense and the Secretary of the Navy may not enter into an 
     agreement, or authorize any other person to enter into an 
     agreement, that would--
       (1) authorize civil aircraft to regularly use an airfield 
     or any other property at the installation; or
       (2) convey any real property at the installation, including 
     any airfield at the installation, for the purpose of 
     permitting the use of the property by civil aircraft.
       (b) Covered Installations.--The prohibitions in subsection 
     (a) apply with respect to the following military 
     installations:
       (1) Marine Corps Air Station, Camp Pendleton, California.
       (2) Marine Corps Air Station, Miramar, California.
       (3) Marine Corps Base, Camp Pendleton, California.
       (4) Naval Air Station, North Island, California.
       (c) Repeal of Existing Limited Prohibition.--Section 2894 
     of the Military Construction Authorization Act for Fiscal 
     Year 1996 (division B of Public Law 104-106; 110 Stat. 592) 
     is repealed.

     SEC. 2864. MODIFICATION OF CERTAIN TRANSPORTATION PROJECTS.

       (a) High Priority Projects.--The table in section 1702 of 
     the Safe, Accountable, Flexible, Efficient Transportation 
     Equity Act: A Legacy for Users (Public Law 109-59; 119 Stat. 
     1256) is amended--
       (1) in the item designated as project 4333 (119 Stat. 
     1422), by striking ``Plan and construct, land acquisition, 
     Detroit West Riverfront Greenway'' in the project description 
     column and inserting ``Detroit Riverfront Conservancy, 
     Riverfront walkway, greenway, and adjacent land planning, 
     construction, and land acquisition from Gabriel Richard Park 
     at the Douglas Mac Arthur Bridge to Riverside Park at the 
     Ambassador Bridge, Detroit''; and
       (2) in the item designated as project 4651 (119 Stat. 
     1434), by striking ``Grading, paving'' and all that follows 
     through ``Airport'' in the project description column and 
     inserting ``Grading, paving, roads, and the transfer of rail-
     to-truck for the intermodal facility at Rickenbacker Airport, 
     Columbus, Ohio''.
       (b) Transportation Improvement Project.--The table in 
     section 1934(c) of such Act (119 Stat. 1485) is amended in 
     the item designated as project 196 (119 Stat. 1495) by 
     striking ``Detroit Riverfront Conservancy'' and all that 
     follows through ``Detroit'' in the project description column 
     and inserting ``Detroit Riverfront Conservancy, Riverfront 
     walkway, greenway, and adjacent land planning, construction, 
     and land acquisition from Gabriel Richard Park at the Douglas 
     Mac Arthur Bridge to Riverside Park at the Ambassador Bridge, 
     Detroit''.

     SEC. 2865. AVAILABILITY OF FUNDS FOR SOUTH COUNTY COMMUTER 
                   RAIL PROJECT, PROVIDENCE, RHODE ISLAND.

       Funds available for the South County Commuter Rail project, 
     Providence, Rhode Island, authorized by paragraphs (34) and 
     (35) of section 3043(d) of the Safe, Accountable, Flexible, 
     Efficient Transportation Equity Act: A Legacy for Users 
     (Public Law 109-59; 119 Stat. 1650) shall be available for 
     the purchase of commuter rail equipment for the South County 
     Commuter

[[Page 20867]]

     Rail project upon the receipt by the Rhode Island Department 
     of Transportation of an approved environmental assessment for 
     the South County Commuter Rail project.

     SEC. 2866. FOX POINT HURRICANE BARRIER, PROVIDENCE, RHODE 
                   ISLAND.

       (a) Assumption of Responsibility for Barrier.--Not later 
     than two years after the date of the enactment of this Act, 
     the Secretary of the Army, acting through the Chief of 
     Engineers, shall assume responsibility for the annual 
     operation and maintenance of the Fox Point Hurricane Barrier 
     in Providence, Rhode Island.
       (b) Identification and Conveyance of Required Structures.--
     The City of Providence, Rhode Island, in coordination with 
     the Secretary, shall identify any land and structures 
     required for the continued operation and maintenance, repair, 
     replacement, rehabilitation, and structural integrity of the 
     Fox Point Hurricane Barrier. The City shall convey to the 
     Secretary, by quitclaim deed and without consideration, all 
     right, title, and interest of the City in and to the land and 
     structures so identified.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such funds as are 
     necessary for each fiscal year for the operation and 
     maintenance, including repair, replacement, and 
     rehabilitation, of the Fox Point Hurricane Barrier.

     SEC. 2867. FEDERAL FUNDING FOR FIXED GUIDEWAY PROJECTS.

       The Federal Transit Administration's Dear Colleague letter 
     dated April 29, 2005 (C-05-05), which requires fixed guideway 
     projects to achieve a ``medium'' cost-effectiveness rating 
     for the Federal Transit Administration to recommend such 
     projects for funding, shall not apply to the Northstar 
     Corridor Commuter Rail Project in Minnesota.

     SEC. 2868. FEASIBILITY STUDY REGARDING USE OF GENERAL 
                   SERVICES ADMINISTRATION PROPERTY FOR FORT 
                   BELVOIR, VIRGINIA, REALIGNMENT.

       (a) Feasibility Study.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of the Army 
     shall submit to Congress a report evaluating the costs, 
     benefits, feasibility, and suitability of locating support 
     functions for Fort Belvoir and the Engineering Proving 
     Grounds, Virginia, on property currently occupied by General 
     Services Administration warehouses in Springfield, Virginia.
       (b) Consultation.--The Secretary of the Army shall carry 
     out this section in consultation with the Administrator of 
     General Services.
 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 cleanup.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Plan for transformation of National Nuclear Security 
              Administration nuclear weapons complex.
Sec. 3112. Extension of Facilities and Infrastructure Recapitalization 
              Program.
Sec. 3113. Utilization of contributions to Global Threat Reduction 
              Initiative.
Sec. 3114. Utilization of contributions to Second Line of Defense 
              program.
Sec. 3115. Two-year extension of authority for appointment of certain 
              scientific, engineering, and technical personnel.
Sec. 3116. National Academy of Sciences study of quantification of 
              margins and uncertainty methodology for assessing and 
              certifying the safety and reliability of the nuclear 
              stockpile.
Sec. 3117. Consolidation of counterintelligence programs of Department 
              of Energy and National Nuclear Security Administration.
Sec. 3118. Notice-and-wait requirement applicable to certain third-
              party financing arrangements.
Sec. 3119. Extension of deadline for transfer of lands to Los Alamos 
              County, New Mexico, and of lands in trust for the Pueblo 
              of San Ildefonso.
Sec. 3120. Limitations on availability of funds for Waste Treatment and 
              Immobilization Plant.
Sec. 3121. Report on Russian Surplus Fissile Materials Disposition 
              Program.
Sec. 3122. Limitation on availability of funds for construction of MOX 
              Fuel Fabrication Facility.
Sec. 3123. Education of future nuclear engineers.
Sec. 3124. Technical correction related to authorization of 
              appropriations for fiscal year 2006.
         Subtitle A--National Security Programs Authorizations

     SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated to the Department of Energy for 
     fiscal year 2007 for the activities of the National Nuclear 
     Security Administration in carrying out programs necessary 
     for national security in the amount of $9,300,811,000, to be 
     allocated as follows:
       (1) For weapons activities, $6,417,676,000.
       (2) For defense nuclear nonproliferation activities, 
     $1,701,426,000.
       (3) For naval reactors, $795,133,000.
       (4) For the Office of the Administrator for Nuclear 
     Security, $386,576,000.
       (b) Authorization of New Plant Projects.--From funds 
     referred to in subsection (a) that are available for carrying 
     out plant projects, the Secretary of Energy may carry out the 
     following new plant projects:
       (1) For weapons activities:
       Project 07-D-140, project engineering and design, various 
     locations, $4,977,000.
       Project 07-D-220, Radioactive Liquid Waste Treatment 
     Facility upgrade, Los Alamos National Laboratory, Los Alamos, 
     New Mexico, $14,828,000.
        Project 07-D-253, Technical Area 1 Heating Systems 
     Modernization, Sandia National Laboratories, Albuquerque, New 
     Mexico, $14,500,000.
       (2) For defense nuclear nonproliferation activities:
       Project 07-SC-05, Physical Sciences Facility, Pacific 
     Northwest National Laboratory, Richland, Washington, 
     $4,220,000.
       (3) For naval reactors:
       Project 07-D-190, project engineering and design, Materials 
     Research Technology Complex, Bettis Atomic Power Laboratory, 
     West Mifflin, Pennsylvania, $1,485,000.

     SEC. 3102. DEFENSE ENVIRONMENTAL CLEANUP.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2007 for defense 
     environmental cleanup activities in carrying out programs 
     necessary for national security in the amount of 
     $5,435,312,000.

     SEC. 3103. OTHER DEFENSE ACTIVITIES.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2007 for other defense 
     activities in carrying out programs necessary for national 
     security in the amount of $717,788,000.

     SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2007 for defense nuclear 
     waste disposal 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 $358,080,000.
   Subtitle B--Program Authorizations, Restrictions, and Limitations

     SEC. 3111. PLAN FOR TRANSFORMATION OF NATIONAL NUCLEAR 
                   SECURITY ADMINISTRATION NUCLEAR WEAPONS 
                   COMPLEX.

       (a) Plan Required.--Subtitle A of title XLII of the Atomic 
     Energy Defense Act (division D of Public Law 107-314) is 
     amended by inserting after section 4213 (50 U.S.C. 2533) the 
     following new section:

     ``SEC. 4214. PLAN FOR TRANSFORMATION OF NATIONAL NUCLEAR 
                   SECURITY ADMINISTRATION NUCLEAR WEAPONS 
                   COMPLEX.

       ``(a) Plan Required.--The Secretary of Energy shall develop 
     a plan to transform the nuclear weapons complex so as to 
     achieve a responsive infrastructure by 2030. The plan shall 
     be designed to accomplish the following objectives:
       ``(1) To maintain the safety, reliability, and security of 
     the United States nuclear weapons stockpile.
       ``(2) To continue Stockpile Life Extension Programs that 
     the Nuclear Weapons Council considers necessary.
       ``(3) To prepare to produce replacement warheads under the 
     Reliable Replacement Warhead program at a rate necessary to 
     meet future stockpile requirements, commencing with a first 
     production unit in 2012 and achieving steady-state production 
     using modern manufacturing processes by 2025.
       ``(4) To eliminate, within the nuclear weapons complex, 
     duplication of production capability except to the extent 
     required to ensure the safety, reliability, and security of 
     the stockpile.
       ``(5) To maintain the current philosophy within the 
     national security laboratories of peer review of nuclear 
     weapons designs while eliminating duplication of laboratory 
     capabilities except to the extent required to ensure the 
     safety, reliability, and security of the stockpile.
       ``(6) To maintain the national security mission, and in 
     particular the science-based Stockpile Stewardship Program, 
     as the primary mission of the national security laboratories 
     while optimizing the work-for-others activities of those 
     laboratories to support other national security objectives in 
     fields such as defense, intelligence, and homeland security.
       ``(7) To consolidate to the maximum extent practicable, and 
     to provide for the ultimate disposition of, special nuclear 
     material throughout the nuclear weapons complex, with the 
     ultimate goal of eliminating Category I and II special 
     nuclear material from the national security laboratories no 
     later than March 1, 2012, so as to further reduce the 
     footprint of the nuclear weapons complex, reduce security 
     costs, and reduce transportation costs for special nuclear 
     material. This objective does not preclude the retention of 
     Category I and II special nuclear materials at a national 
     security laboratory if the transformation plan required by 
     this subsection envisions a pit production capability 
     (including interim pit production) at a national security 
     laboratory.
       ``(8) To employ a risk-based approach to ensure compliance 
     with Design Basis Threat security requirements.
       ``(9) To expeditiously dismantle inactive nuclear weapons 
     to reduce the size of the stockpile

[[Page 20868]]

     to the lowest level required by the Nuclear Weapons Council.
       ``(10) To operate the nuclear weapons complex in a more 
     cost-effective manner.
       ``(b) Report.--Not later than February 1, 2007, the 
     Secretary of Energy shall submit to the congressional defense 
     committees a report on the transformation plan required by 
     subsection (a). The report shall address each of the 
     objectives required by subsection (c) and also include each 
     of the following:
       ``(1) A comprehensive list of the capabilities, facilities, 
     and project staffing that the National Nuclear Security 
     Administration will need to have in place at the nuclear 
     weapons complex as of 2030 to meet the requirements of the 
     transformation plan.
       ``(2) A comprehensive list of the capabilities and 
     facilities that the National Nuclear Security Administration 
     currently has in place at the nuclear weapons complex that 
     will not be needed as of 2030 to meet the requirements of the 
     transformation plan.
       ``(3) A plan for implementing the transformation plan, 
     including a schedule with incremental milestones.
       ``(c) Consultation.--The Secretary of Energy shall develop 
     the transformation plan required by subsection (a) in 
     consultation with the Secretary of Defense and the Nuclear 
     Weapons Council.
       ``(d) Definition.--In this section, the term `national 
     security laboratory' has the meaning given such term in 
     section 3281 of the National Nuclear Security Administration 
     Act (50 U.S.C. 2471).''.
       (b) Inclusion in Future-Years Nuclear Security Program.--
     Section 3253 of the National Nuclear Security Administration 
     Act (50 U.S.C. 2453) is amended in subsection (b) by adding 
     at the end the following new paragraph:
       ``(5) A statement of proposed budget authority, estimated 
     expenditures, and proposed appropriations necessary to 
     support the programs required to implement the plan to 
     transform the nuclear weapons complex under section 4214 of 
     the Atomic Energy Defense Act, together with a detailed 
     description of how the funds identified for each program 
     element specified pursuant to paragraph (1) in the budget for 
     the Administration for each fiscal year during that five-
     fiscal-year period will help ensure that those programs are 
     implemented. The statement shall assume year-to-year funding 
     profiles that account for increases only for projected 
     inflation.''.

     SEC. 3112. EXTENSION OF FACILITIES AND INFRASTRUCTURE 
                   RECAPITALIZATION PROGRAM.

       Section 3114 of the National Defense Authorization Act for 
     Fiscal Year 2004 (Public Law 108-136; 50 U.S.C. 2453 note), 
     as amended by section 3113 of the Ronald W. Reagan National 
     Defense Authorization Act for Fiscal Year 2005 (Public Law 
     108-375; 118 Stat. 2160), is amended--
       (1) in subsection (a)(3)(F), by striking ``2011'' and 
     inserting ``2013''; and
       (2) in subsection (b), by striking ``2011'' and inserting 
     ``2013''.

     SEC. 3113. UTILIZATION OF CONTRIBUTIONS TO GLOBAL THREAT 
                   REDUCTION INITIATIVE.

       Section 3132 of the Ronald W. Reagan National Defense 
     Authorization Act for Fiscal Year 2005 (Public Law 108--375; 
     118 Stat. 2166; 50 U.S.C. 2569) is amended--
       (1) by redesignating subsection (f) as subsection (g); and
       (2) by adding after subsection (e) the following new 
     subsection:
       ``(f) Participation by Other Governments and 
     Organizations.--
       ``(1) In general.--The Secretary of Energy may, with the 
     concurrence of the Secretary of State, enter into one or more 
     agreements with any person (including a foreign government, 
     international organization, or multinational entity) that the 
     Secretary of Energy considers appropriate under which the 
     person contributes funds for purposes of the programs 
     described in paragraph (2).
       ``(2) Programs covered.--The programs described in this 
     paragraph are the following international programs within the 
     Global Threat Reduction Initiative:
       ``(A) The International Radiological Threat Reduction 
     program.
       ``(B) The Emerging Threats and Gap Materials program.
       ``(C) The Reduced Enrichment for Research and Test Reactors 
     program.
       ``(D) The Russian Research Reactor Fuel Return program.
       ``(E) The Global Research Reactor Security program.
       ``(F) The Kazakhstan Spent Fuel program.
       ``(3) Retention and use of amounts.--Notwithstanding 
     section 3302 of title 31, United States Code, the Secretary 
     of Energy may retain and use amounts contributed under an 
     agreement under paragraph (1) for purposes of the programs 
     described in paragraph (2). Amounts so contributed shall be 
     retained in a separate fund established in the Treasury for 
     such purposes and shall be available for use without further 
     appropriation and without fiscal year limitation.
       ``(4) Return of amounts not used within 5 years.--If an 
     amount contributed under an agreement under paragraph (1) is 
     not used under this subsection within 5 years after it was 
     contributed, the Secretary of Energy shall return that amount 
     to the person who contributed it.
       ``(5) Notice to congressional defense committees.--Not 
     later than 30 days after the receipt of an amount contributed 
     under paragraph (1), the Secretary of Energy shall submit to 
     the congressional defense committees a notice specifying the 
     purpose and value of the contribution and identifying the 
     person who contributed it. The Secretary may not use the 
     amount until 15 days after the notice is submitted.
       ``(6) Annual report.--Not later than October 31 of each 
     year, the Secretary of Energy shall submit to the 
     congressional defense committees a report on the receipt and 
     use of amounts under this subsection during the preceding 
     fiscal year. Each report for a fiscal year shall set forth--
       ``(A) a statement of any amounts received under this 
     subsection, including, for each such amount, the value of the 
     contribution and the person who contributed it;
       ``(B) a statement of any amounts used under this 
     subsection, including, for each such amount, the purposes for 
     which the amount was used; and
       ``(C) a statement of the amounts retained but not used 
     under this subsection, including, for each such amount, the 
     purposes (if known) for which the Secretary intends to use 
     the amount.
       ``(7) Expiration.--The authority to accept, retain, and use 
     contributions under this subsection expires on December 31, 
     2013.''.

     SEC. 3114. UTILIZATION OF CONTRIBUTIONS TO SECOND LINE OF 
                   DEFENSE PROGRAM.

       (a) In General.--The Secretary of Energy may, with the 
     concurrence of the Secretary of State, enter into one or more 
     agreements with any person (including a foreign government, 
     international organization, or multinational entity) that the 
     Secretary of Energy considers appropriate under which the 
     person contributes funds for purposes of the Second Line of 
     Defense program of the National Nuclear Security 
     Administration.
       (b) Retention and Use of Amounts.--Notwithstanding section 
     3302 of title 31, United States Code, the Secretary of Energy 
     may retain and use amounts contributed under an agreement 
     under subsection (a) for purposes of the Second Line of 
     Defense program. Amounts so contributed shall be retained in 
     a separate fund established in the Treasury for such purposes 
     and shall be available for use without further appropriation 
     and without fiscal year limitation.
       (c) Return of Amounts Not Used Within 5 Years.--If an 
     amount contributed under an agreement under subsection (a) is 
     not used under this section within 5 years after it was 
     contributed, the Secretary of Energy shall return that amount 
     to the person who contributed it.
       (d) Notice to Congressional Defense Committees.--Not later 
     than 30 days after the receipt of an amount contributed under 
     subsection (a), the Secretary of Energy shall submit to the 
     congressional defense committees a notice specifying the 
     purpose and value of the contribution and identifying the 
     person who contributed it. The Secretary may not use the 
     amount until 15 days after the notice is submitted.
       (e) Annual Report.--Not later than October 31 of each year, 
     the Secretary of Energy shall submit to the congressional 
     defense committees a report on the receipt and use of amounts 
     under this section during the preceding fiscal year. Each 
     report for a fiscal year shall set forth--
       (1) a statement of any amounts received under this section, 
     including, for each such amount, the value of the 
     contribution and the person who contributed it;
       (2) a statement of any amounts used under this section, 
     including, for each such amount, the purposes for which the 
     amount was used; and
       (3) a statement of the amounts retained but not used under 
     this section, including, for each such amount, the purposes 
     (if known) for which the Secretary intends to use the amount.
       (f) Expiration.--The authority to accept, retain, and use 
     contributions under this section expires on December 31, 
     2013.

     SEC. 3115. TWO-YEAR EXTENSION OF AUTHORITY FOR APPOINTMENT OF 
                   CERTAIN SCIENTIFIC, ENGINEERING, AND TECHNICAL 
                   PERSONNEL.

       Section 4601(c)(1) of the Atomic Energy Defense Act (50 
     U.S.C. 2701(c)(1)) is amended by striking ``September 30, 
     2006'' and inserting ``September 30, 2008''.

     SEC. 3116. NATIONAL ACADEMY OF SCIENCES STUDY OF 
                   QUANTIFICATION OF MARGINS AND UNCERTAINTY 
                   METHODOLOGY FOR ASSESSING AND CERTIFYING THE 
                   SAFETY AND RELIABILITY OF THE NUCLEAR 
                   STOCKPILE.

       (a) Study Required.--The Secretary of Energy shall, as soon 
     as practicable and no later than 120 days after the date of 
     the enactment of this Act, enter into an arrangement with the 
     National Research Council of the National Academy of Sciences 
     for the Council to carry out a study of the quantification of 
     margins and uncertainty methodology used by the national 
     security laboratories for assessing and certifying the safety 
     and reliability of the nuclear stockpile.
       (b) Matters Included.--The study required by subsection (a) 
     shall evaluate the following:
       (1) The use of the quantification of margins and 
     uncertainty methodology by the national security 
     laboratories, including underlying assumptions of weapons 
     performance and the ability of modeling and simulation tools 
     to predict nuclear explosive package characteristics.
       (2) The manner in which that methodology is used to conduct 
     the annual assessments of the nuclear weapons stockpile.

[[Page 20869]]

       (3) How the use of that methodology compares and contrasts 
     between the national security laboratories.
       (4) Whether the application of the quantification of 
     margins and uncertainty used for annual assessments and 
     certification of the nuclear weapons stockpile can be applied 
     to the planned Reliable Replacement Warhead program so as to 
     carry out the objective of that program to reduce the 
     likelihood of the resumption of underground testing of 
     nuclear weapons.
       (c) Report.--
       (1) In general.--Not later than one year after the date on 
     which the arrangement required by subsection (a) is entered 
     into, the National Research Council shall submit to the 
     Secretary of Energy and the congressional committees 
     specified in paragraph (2) a report on the study that 
     addresses the matters listed in subsection (b) and any other 
     matters considered by the National Research Council to be 
     relevant to the use of the quantification of margins and 
     uncertainty methodology in assessing the current or future 
     nuclear weapons stockpile.
       (2) Specified committees.--The congressional committees 
     referred to in paragraph (1) are the following:
       (A) The Committee on Armed Services of the Senate.
       (B) The Committee on Armed Services of the House of 
     Representatives.
       (d) Provision of Information.--The Secretary of Energy 
     shall, in a timely manner, make available to the National 
     Research Council all information that the National Research 
     Council considers necessary to carry out its responsibilities 
     under this section.
       (e) Funding.--Of the amounts made available to the 
     Department of Energy pursuant to the authorization of 
     appropriations in section 3101, $2,000,000 shall be available 
     for carrying out the study required by this section.

     SEC. 3117. CONSOLIDATION OF COUNTERINTELLIGENCE PROGRAMS OF 
                   DEPARTMENT OF ENERGY AND NATIONAL NUCLEAR 
                   SECURITY ADMINISTRATION.

       (a) Transfer of Functions.--
       (1) In general.--The functions, personnel, funds, assets, 
     and other resources of the Office of Defense Nuclear 
     Counterintelligence of the National Nuclear Security 
     Administration are transferred to the Secretary of Energy, to 
     be administered (except to any extent otherwise directed by 
     the Secretary) by the Director of the Office of 
     Counterintelligence of the Department of Energy.
       (2) Sunset.--Effective September 30, 2010--
       (A) the functions, personnel, funds, assets, and other 
     resources transferred by paragraph (1) are transferred to the 
     Administrator for Nuclear Security;
       (B) subsection (e) of section 3220 of the National Nuclear 
     Security Administration Act (50 U.S.C. 2410), as added by 
     this section, is repealed; and
       (C) section 3233 of the National Nuclear Security 
     Administration Act (50 U.S.C. 2423) is amended--
       (i) in each of subsections (a) and (b), by striking ``The 
     Secretary of Energy shall'' and inserting ``The Administrator 
     shall''; and
       (ii) in subsection (b), by striking ``Office of 
     Counterintelligence of the Department of Energy'' and 
     inserting ``Administration''.
       (b) NNSA Counterintelligence Office Abolished.--
       (1) In general.--Section 3232 of the National Nuclear 
     Security Administration Act (50 U.S.C. 2422) is amended--
       (A) by amending the heading to read as follows:

     ``SEC. 3232. OFFICE OF DEFENSE NUCLEAR SECURITY.''.

       (B) by striking subsection (a) and inserting the following 
     new subsection (a):
       ``(a) Establishment.--There is within the Administration an 
     Office of Defense Nuclear Security, headed by a Chief 
     appointed by the Secretary of Energy. The Administrator shall 
     recommend to the Secretary suitable candidates for such 
     position.'';
       (C) by striking subsection (b); and
       (D) by redesignating subsection (c) as subsection (b).
       (2) Conforming amendment.--The table of sections at the 
     beginning of the National Nuclear Security Administration Act 
     is amended by striking the item relating to section 3232 and 
     inserting the following new item:

``Sec. 3232. Office of Defense Nuclear Security.''.
       (c) Counterintelligence Programs at NNSA Facilities.--
     Section 3233 of the National Nuclear Security Administration 
     Act (50 U.S.C. 2423) is amended--
       (1) in each of subsections (a) and (b), by striking ``The 
     Administrator shall'' and inserting ``The Secretary of Energy 
     shall''; and
       (2) in subsection (b), by striking ``Office of Defense 
     Nuclear Counterintelligence'' and inserting ``Office of 
     Counterintelligence of the Department of Energy''.
       (d) Status of NNSA Intelligence and Counterintelligence 
     Personnel.--Section 3220 of the National Nuclear Security 
     Administration Act (50 U.S.C. 2410) is amended by adding at 
     the end the following new subsection:
       ``(e) Status of Intelligence and Counterintelligence 
     Personnel.--Notwithstanding the restrictions of subsections 
     (a) and (b), each officer or employee of the Administration, 
     or of a contractor of the Administration, who is carrying out 
     activities related to intelligence or counterintelligence 
     shall, in carrying out those activities, be subject to the 
     authority, direction, and control of the Secretary of Energy 
     or the Secretary's delegate.''.
       (e) NNSA Intelligence and Counterintelligence Liaison.--
     Section 3218 of the National Nuclear Security Administration 
     Act (50 U.S.C. 2408) is amended in subsection (b)--
       (1) by redesignating paragraph (4) as paragraph (5); and
       (2) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) Liaison with the Department of Energy's Office of 
     Intelligence and Counterintelligence.''.
       (f) Service From Which DOE Intelligence Director and 
     Counterintelligence Director Appointed.--Section 215(b)(1) 
     (42 U.S.C. 7144b(b)(1)) and section 216(b)(1) (42 U.S.C. 
     7144c(b)(1)) of the Department of Energy Organization Act are 
     each amended by striking ``which shall be a position in the 
     Senior Executive Service'' and inserting ``who shall be an 
     employee in the Senior Executive Service, the Senior 
     Intelligence Service, the Senior National Intelligence 
     Service, or any other Service that the Secretary, in 
     coordination with the Director of National Intelligence, 
     considers appropriate''.
       (g) Intelligence Executive Committee; Budget for 
     Intelligence and Counterintelligence.--Section 214 of the 
     Department of Energy Organization Act (42 U.S.C. 7144a) is 
     amended--
       (1) by inserting ``(a)'' before ``The Secretary shall be 
     responsible''; and
       (2) by adding at the end the following:
       ``(b)(1) There is within the Department an Intelligence 
     Executive Committee. The Committee shall consist of the 
     Deputy Secretary of Energy, who shall chair the Committee, 
     and each Under Secretary of Energy.
       ``(2) The Committee shall be staffed by the Director of the 
     Office of Intelligence and the Director of the Office of 
     Counterintelligence.
       ``(3) The Secretary shall use the Committee to assist in 
     developing and promulgating the counterintelligence and 
     intelligence policies, requirements, and priorities of the 
     Department.
       ``(c) In the budget justification materials submitted to 
     Congress in support of each budget submitted by the President 
     to Congress under title 31, United States Code, the amounts 
     requested for the Department for intelligence functions and 
     the amounts requested for the Department for 
     counterintelligence functions shall each be specified in 
     appropriately classified individual, dedicated program 
     elements. Within the amounts requested for 
     counterintelligence functions, the amounts requested for the 
     National Nuclear Security Administration shall be specified 
     separately from the amounts requested for other elements of 
     the Department.''.
       (h) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Inspector General of the 
     Department of Energy shall submit to Congress a report on the 
     implementation of this section and of the amendments required 
     by this section. The report shall include the Inspector 
     General's evaluation of that implementation.

     SEC. 3118. NOTICE-AND-WAIT REQUIREMENT APPLICABLE TO CERTAIN 
                   THIRD-PARTY FINANCING ARRANGEMENTS.

       Subtitle A of title XLVIII of the Atomic Energy Defense Act 
     (50 U.S.C. 2781 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 4804. NOTICE-AND-WAIT REQUIREMENT APPLICABLE TO 
                   CERTAIN THIRD-PARTY FINANCING ARRANGEMENTS.

       ``(a) Notice-and-Wait Requirement.--The Secretary of Energy 
     may not enter into an arrangement described in subsection (b) 
     until 30 days after the date on which the Secretary notifies 
     the congressional defense committees in writing of the 
     proposed arrangement.
       ``(b) Covered Arrangements.--
       ``(1) In general.--Except as provided in paragraph (2), an 
     arrangement referred to in subsection (a) is any alternative 
     financing arrangement, third-party financing arrangement, 
     public-private partnership, privatization arrangement, 
     private capital arrangement, or other financing arrangement 
     that--
       ``(A) is entered into in connection with a project 
     conducted using funds authorized to be appropriated to the 
     Department of Energy to carry out programs necessary for 
     national security; and
       ``(B) involves a contractor or Federal agency obtaining and 
     charging to the Department of Energy as an allowable cost 
     under a contract the use of office space, facilities, or 
     other real property assets with a value of at least 
     $5,000,000.
       ``(2) Exception.--An arrangement referred to in subsection 
     (a) does not include an arrangement that--
       ``(A) involves the Department of Energy or a contractor 
     acquiring or entering into a capital lease for office space, 
     facilities, or other real property assets; or
       ``(B) is entered into in connection with a capital 
     improvement project undertaken as part of an energy savings 
     performance contract under section 801 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8287).''.

     SEC. 3119. EXTENSION OF DEADLINE FOR TRANSFER OF LANDS TO LOS 
                   ALAMOS COUNTY, NEW MEXICO, AND OF LANDS IN 
                   TRUST FOR THE PUEBLO OF SAN ILDEFONSO.

       Section 632 of the Departments of Commerce, Justice, and 
     State, the Judiciary, and Related Agencies Appropriations 
     Act, 1998 (Public Law 105-119; 111 Stat. 2523; 42 U.S.C. 2391 
     note) is amended--
       (1) in subsection (d)(2), by striking ``10 years after the 
     date of enactment of this Act'' and inserting ``November 26, 
     2012''; and
       (2) in subsection (g)(3)(B), by striking ``the end of the 
     10-year period beginning on the date of enactment of this 
     Act'' and inserting ``November 26, 2012''.

[[Page 20870]]



     SEC. 3120. LIMITATIONS ON AVAILABILITY OF FUNDS FOR WASTE 
                   TREATMENT AND IMMOBILIZATION PLANT.

       (a) Limitation Relating to Earned Value Management 
     System.--
       (1) In general.--Of the amount appropriated or otherwise 
     available for defense environmental cleanup activities and 
     available for the Waste Treatment and Immobilization Plant, 
     not more than 90 percent of that amount may be obligated or 
     expended.
       (2) Termination of limitation.--Paragraph (1) does not 
     apply after the date on which the Secretary of Energy 
     certifies to the congressional defense committees that the 
     Defense Contract Management Agency has recommended for 
     acceptance the earned value management system used to track 
     and report costs of the Waste Treatment and Immobilization 
     Plant.
       (b) Limitation Relating to Seismic Criteria.--
       (1) In general.--Of the amount appropriated or otherwise 
     available for defense environmental cleanup activities and 
     available for the Waste Treatment and Immobilization Plant, 
     none of that amount may be obligated or expended for 
     construction, or for the procurement of critical equipment 
     affected by seismic criteria, relating to the Pretreatment 
     Facility and the High-Level Waste Facility.
       (2) Exception.--Paragraph (1) does not apply to the 
     obligation or expenditure of funds for construction that is 
     necessary for maintenance or for activities related to 
     maintenance.
       (3) Termination of limitation.--Paragraph (1) does not 
     apply after the date on which the Secretary of Energy 
     certifies to the congressional defense committees that the 
     final seismic and ground motion criteria have been approved 
     by the Secretary and that the contracting officer of the 
     Waste Treatment and Immobilization Plant Project has formally 
     directed that the final criteria be used for the final design 
     of the Pretreatment Facility and the High-Level Waste 
     Facility.

     SEC. 3121. REPORT ON RUSSIAN SURPLUS FISSILE MATERIALS 
                   DISPOSITION PROGRAM.

       Not later than March 1, 2007, the Secretary of Energy shall 
     submit to the congressional defense committees a report on 
     the Russian Surplus Fissile Materials Disposition Program (in 
     this section referred to as the ``Program''). The report 
     shall include--
       (1) a description of the disposition method the Government 
     of Russia has agreed to use under the Program;
       (2) a description of the assistance the United States 
     Government plans to provide under the Program;
       (3) an estimate of the total cost and schedule of such 
     assistance; and
       (4) an explanation of how parallelism is to be defined for 
     purposes of the Program, including projected goals for the 
     disposition of Russian weapons-grade plutonium under the 2000 
     Plutonium Disposition and Management Agreement, and whether 
     such parallelism can be achieved if the United States mixed-
     oxide (MOX) plutonium disposition program continues on the 
     current planned schedule without further delays.

     SEC. 3122. LIMITATION ON AVAILABILITY OF FUNDS FOR 
                   CONSTRUCTION OF MOX FUEL FABRICATION FACILITY.

       Of the amount appropriated under section 3101(a)(2) or 
     otherwise available for defense nuclear nonproliferation 
     activities for fiscal year 2007, none of that amount may be 
     obligated for construction project 99-D-143, the Mixed-Oxide 
     (MOX) Fuel Fabrication Facility, until 30 days after the date 
     on which the Secretary of Energy provides to the 
     congressional defense committees--
       (1) an independent cost estimate for the United States 
     Surplus Fissile Materials Disposition Program and facilities;
       (2) a written certification that the Department of Energy 
     intends to use the MOX Fuel Fabrication Facility for United 
     States plutonium disposition regardless of the future 
     direction of the Russian Surplus Fissile Materials 
     Disposition Program; and
       (3) a corrective action plan for addressing the issues 
     raised by the Inspector General of the Department of Energy 
     in the December 2005 report titled ``The status of the Mixed 
     Oxide Fuel Fabrication Facility''.

     SEC. 3123. EDUCATION OF FUTURE NUCLEAR ENGINEERS.

       (a) Findings.--Congress makes the following findings:
       (1) The Department of Defense and the Department of Energy 
     depend on the specialized expertise of nuclear engineers who 
     support the development and sustainment of technologies 
     including naval reactors, strategic weapons, and nuclear 
     power plants.
       (2) Experts estimate that over 25 percent of the 
     approximately 58,000 workers in the nuclear power industry in 
     the United States will be eligible to retire within 5 years, 
     representing both a huge loss of institutional memory and a 
     potential national security crisis.
       (3) This shortfall of workers is exacerbated by reductions 
     to the University Reactor Infrastructure and Education 
     Assistance program, which trains civilian nuclear scientists 
     and engineers. The defense and civilian nuclear industries 
     are interdependent on a limited number of educational 
     institutions to produce their workforce. A reduction in 
     nuclear scientists and engineers trained in the civilian 
     sector may result in a further loss of qualified personnel 
     for defense-related research and engineering.
       (4) The Department of Defense's successful Science, Math 
     and Research for Transformation (SMART) scholarship-for-
     service program serves as a good model for a targeted 
     scholarship or fellowship program designed to educate future 
     scientists at the postsecondary and postgraduate levels.
       (b) Report on Education of Future Nuclear Engineers.--
       (1) Study.--The Secretary of Energy shall study the 
     feasibility and merit of establishing a targeted scholarship 
     or fellowship program to educate future nuclear engineers at 
     the postsecondary and postgraduate levels.
       (2) Report required.--The President shall submit to the 
     congressional defense committees, at the same time that the 
     budget for fiscal year 2008 is submitted under section 
     1105(a) of title 31, United States Code, a report on the 
     study conducted by the Secretary of Energy under paragraph 
     (1).

     SEC. 3124. TECHNICAL CORRECTION RELATED TO AUTHORIZATION OF 
                   APPROPRIATIONS FOR FISCAL YEAR 2006.

       Effective as of January 6, 2006, and as if included therein 
     as enacted, section 3101(a) of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163; 
     119 Stat. 3537) is amended by striking ``$9,196,456'' and 
     inserting ``$9,196,456,000''.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD
Sec. 3201. Authorization.

     SEC. 3201. AUTHORIZATION.

       There are authorized to be appropriated for fiscal year 
     2007, $22,260,000 for the operation of the Defense Nuclear 
     Facilities Safety Board under chapter 21 of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2286 et seq.).
                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE
Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revisions to required receipt objectives for previously 
              authorized disposals from National Defense Stockpile.

     SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE 
                   FUNDS.

       (a) Obligation of Stockpile Funds.--During fiscal year 
     2007, the National Defense Stockpile Manager may obligate up 
     to $52,132,000 of the funds in the National Defense Stockpile 
     Transaction Fund established under subsection (a) of section 
     9 of the Strategic and Critical Materials Stock Piling Act 
     (50 U.S.C. 98h) for the authorized uses of such funds under 
     subsection (b)(2) of such section, including the disposal of 
     hazardous materials that are environmentally sensitive.
       (b) Additional Obligations.--The National Defense Stockpile 
     Manager may obligate amounts in excess of the amount 
     specified in subsection (a) if the National Defense Stockpile 
     Manager notifies Congress that extraordinary or emergency 
     conditions necessitate the additional obligations. The 
     National Defense Stockpile Manager may make the additional 
     obligations described in the notification after the end of 
     the 45-day period beginning on the date on which Congress 
     receives the notification.
       (c) Limitations.--The authorities provided by this section 
     shall be subject to such limitations as may be provided in 
     appropriations Acts.

     SEC. 3302. REVISIONS TO REQUIRED RECEIPT OBJECTIVES FOR 
                   PREVIOUSLY AUTHORIZED DISPOSALS FROM NATIONAL 
                   DEFENSE STOCKPILE.

       (a) Fiscal Year 1999 Disposal Authority.--Section 3303(a) 
     of the Strom Thurmond National Defense Authorization Act for 
     Fiscal Year 1999 (Public Law 105-261; 50 U.S.C. 98d note), as 
     amended by section 3302 of the Ronald W. Reagan National 
     Defense Authorization Act for Year 2005 (Public Law 108-375; 
     118 Stat. 2193) and section 3302 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163; 
     119 Stat. 3545), is amended--
       (1) by striking ``and'' at the end of paragraph (5); and
       (2) by striking the period at the end of paragraph (6) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(7) $1,016,000,000 by the end of fiscal year 2014.''.
       (b) Fiscal Year 1998 Disposal Authority.--Section 
     3305(a)(5) of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 50 U.S.C. 98d note), as 
     amended by section 3305 of the National Defense Authorization 
     Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 
     1390), is amended by striking ``2006'' and inserting 
     ``2008''.
       (c) Fiscal Year 1997 Disposal Authority.--Section 3303 of 
     the National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 50 U.S.C. 98d note), as amended by 
     section 3402(f) of the National Defense Authorization Act for 
     Year 2000 (Public Law 106-65; 113 Stat. 973) and section 
     3304(c) of the National Defense Authorization Act for 2002 
     (Public Law 107-107; 115 Stat. 1390), is amended--
       (1) in subsection (a), by striking paragraph (2) and 
     inserting the following new paragraph (2):
       ``(2) $720,000,000 during the 12-fiscal year period ending 
     September 30, 2008.''; and
       (2) in subsection (b)(2), by striking ``the 10-fiscal year 
     period'' and inserting ``the period''.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES
Sec. 3401. Authorization of appropriations

     SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

       (a) Amount.--There are hereby authorized to be appropriated 
     to the Secretary of Energy $18,810,000 for fiscal year 2007 
     for the purpose of carrying out activities under chapter 641 
     of title 10, United States Code, relating to the naval 
     petroleum reserves.
       (b) Period of Availability.--Funds appropriated pursuant to 
     the authorization of appropriations in subsection (a) shall 
     remain available until expended.

[[Page 20871]]


                  TITLE XXXV--MARITIME ADMINISTRATION
Sec. 3501. Authorization of appropriations for fiscal year 2007.
Sec. 3502. Amendments relating to the Maritime Security Fleet program.
Sec. 3503. Applicability to certain Maritime Administration vessels of 
              limitations on overhaul, repair, and maintenance of 
              vessels in foreign shipyards.
Sec. 3504. Vessel transfer authority.
Sec. 3505. United States Merchant Marine Academy graduates: service 
              requirements.
Sec. 3506. United States Merchant Marine Academy graduates: service 
              obligation performance reporting requirement.
Sec. 3507. Temporary authority to transfer obsolete combatant vessels 
              to Navy for disposal.
Sec. 3508. Qualifying Reserve duty for receipt of student incentive 
              payments.
Sec. 3509. Large passenger ship crew requirements.
Sec. 3510. Miscellaneous Maritime Administration provisions.

     SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 
                   2007.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2007, to be available without fiscal year limitation if 
     so provided in appropriations Acts, for the use of the 
     Department of Transportation for the Maritime Administration 
     as follows:
       (1) For expenses necessary for operations and training 
     activities, $116,442,000.
       (2) For paying reimbursement under section 3517 of the 
     Maritime Security Act of 2003 (46 U.S.C. 53101 note), 
     $19,500,000.
       (3) For assistance to small shipyards and maritime 
     communities under section 3506 of the National Defense 
     Authorization Act for Fiscal Year 2006 (46 U.S.C. App. 1249), 
     $15,000,000.
       (4) For expenses to dispose of obsolete vessels in the 
     National Defense Reserve Fleet, including provision of 
     assistance under section 7 of Public Law 92-402, $25,740,000.
       (5) For administrative expenses related to the 
     implementation of the loan guarantee program under title XI 
     of the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et 
     seq.), administrative expenses related implementation of the 
     reimbursement program under section 3517 of the Maritime 
     Security Act of 2003 (46 U.S.C. 53101 note), and 
     administrative expenses related to the implementation of the 
     small shipyards and maritime communities assistance program 
     under section 3506 of the National Defense Authorization Act 
     for Fiscal Year 2006 (46 U.S.C. App. 1249), $3,317,000.

     SEC. 3502. AMENDMENTS RELATING TO THE MARITIME SECURITY FLEET 
                   PROGRAM.

       (a) Limitation on Transfer of Operating Agreements.--
     Section 53105(e) of title 46, United States Code, is 
     amended--
       (1) by inserting ``(1) In general.--'' before the first 
     sentence;
       (2) by moving paragraph (1) (as designated by the amendment 
     made by paragraph (1) of this subsection) so as to appear 
     immediately below the heading for such subsection, and 2 ems 
     to the right; and
       (3) by adding at the end the following:
       ``(2) Limitation.--The Secretary of Defense may not approve 
     under paragraph (1) transfer of an operating agreement to a 
     person that is not a citizen of the United States under 
     section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802), 
     unless the Secretary of Defense determines that there is no 
     person who is a citizen under such section and is interested 
     in obtaining the operating agreement for a vessel that is 
     otherwise eligible to be included in the Fleet under section 
     53102(b) and meets the requirements of the Department of 
     Defense.''.
       (b) Maritime Security Fleet Program Tank Vessels.--
       (1) In general.--Section 53103(c)(4) of title 46, United 
     States Code, is amended--
       (A) in subparagraph (A)(i) by striking ``(i)'' and 
     inserting ``(i)(I)'';
       (B) in subparagraph (A) by redesignating clause (ii) as 
     subclause (II) of clause (i);
       (C) in subparagraph (A)(i)(II), as so redesignated, by 
     striking ``53102(b).'' and inserting ``53102(b); or'';
       (D) by inserting after subparagraph (A)(i)(II), as so 
     redesignated, the following:
       ``(ii)(I) not later than 9 months after the first date 
     amounts are available to carry out this chapter, the operator 
     of the existing tank vessel enters into an agreement to 
     charter one or more tank vessels to be built in the United 
     States and operated as a documented vessel or documented 
     vessels;
       ``(II) the combined tonnage of the vessels required to be 
     chartered under subclause (I) is equal to or greater than the 
     tonnage of the existing tank vessel subject to an operating 
     agreement;
       ``(III) the operator enters into an agreement with the 
     Secretary that is substantially the same as an Emergency 
     Preparedness Agreement under section 53107 of this title, 
     under which the operator shall make available commercial 
     transportation resources as provided in that section;
       ``(IV) if the person that is the owner or operator of the 
     existing tank vessel owns or operates more than one existing 
     tank vessel subject to an operating agreement, the combined 
     tonnage of those vessels required to be chartered under 
     subclause (I) by that person is equal to or greater than the 
     combined tonnage of all such existing tank vessels owned or 
     operated by such person that are subject to operating 
     agreements.'';
       (E) in subparagraph (B) by inserting ``with respect to 
     which a binding contract is entered into under subparagraph 
     (A)(i)'' after ``existing tank vessel''; and
       (F) by adding at the end the following:
       ``(C) For purpose of subparagraph (A)(ii), tonnage shall be 
     measured under section 14502 of this title, or an alternate 
     tonnage measured under section 14302 of this title as 
     prescribed by the Secretary under section 14104 of this 
     title.
       ``(D) No payment under this chapter may be made for an 
     existing tank vessel with respect to which an agreement is 
     entered into under subparagraph (A)(ii) for any period 
     occurring--
       ``(i) after the date that is 5 years after the first date 
     that amounts became available to carry out this chapter, if 
     the vessel or vessels required to be chartered under 
     subparagraph (A)(ii) have not been delivered; or
       ``(ii) after delivery of the vessel or vessels required to 
     be chartered under such subparagraph, if any of such vessels 
     is not chartered by the operator of the existing tank 
     vessel.''.
       (2) Assistance authority.--Section 3543(a) of the National 
     Defense Authorization Act for Fiscal Year 2004 (46 U.S.C. 
     53101 note) is amended by striking ``shall, to the extent of 
     the availability of appropriations,'' and inserting ``may''.
       (c) Priority in Allocation of Amounts Available for Annual 
     Payments.--Section 53106 of title 46, United States Code, is 
     amended by adding at the end the following:
       ``(f) Priority in Allocation of Available Amounts.--If the 
     amount available for a fiscal year for making payments under 
     operating agreements under this chapter is not sufficient to 
     pay the full amount authorized under each agreement pursuant 
     to this section for such fiscal year, the amount available 
     shall be allocated among such agreements in a manner that 
     gives priority to payments for vessels that are subject to 
     agreements under section 3517 of the Maritime Security Act of 
     2003 (46 U.S.C. 53101 note).''.

     SEC. 3503. APPLICABILITY TO CERTAIN MARITIME ADMINISTRATION 
                   VESSELS OF LIMITATIONS ON OVERHAUL, REPAIR, AND 
                   MAINTENANCE OF VESSELS IN FOREIGN SHIPYARDS.

       Section 11 of the Merchant Ship Sales Act of 1946 (50 
     U.S.C. App. 1744) is amended by inserting after subsection 
     (c) the following:
       ``(d) Applicability of Limitations on Overhaul, Repair, and 
     Maintenance in Foreign Shipyards.--
       ``(1) Application of limitation.--The provisions of section 
     7310 of title 10, United States Code, shall apply to vessels 
     specified in subsection (b), and to the Secretary of 
     Transportation with respect to those vessels, in the same 
     manner as those provisions apply to vessels specified in 
     subsection (b) of such section, and to the Secretary of the 
     Navy, respectively.
       ``(2) Covered vessels.--Vessels specified in this paragraph 
     are vessels maintained by the Secretary of Transportation in 
     support of the Department of Defense, including any vessel 
     assigned by the Secretary of Transportation to the Ready 
     Reserve Force that is owned by the United States.''.

     SEC. 3504. VESSEL TRANSFER AUTHORITY.

       The Secretary of Transportation may transfer or otherwise 
     make available without reimbursement to any other department 
     a vessel under the jurisdiction of the Department of 
     Transportation, upon request by the Secretary of the 
     department that receives the vessel.

     SEC. 3505. UNITED STATES MERCHANT MARINE ACADEMY GRADUATES: 
                   SERVICE REQUIREMENTS.

       (a) Alternate Service.--Section 1303(e) of the Merchant 
     Marine Act, 1936 (46 U.S.C. App. 1295b(e)) is amended by 
     adding at the end the following:
       ``(6)(A) An individual who for the 5-year period following 
     graduation from the Academy, serves as a commissioned officer 
     on active duty in an armed force of the United States or as a 
     commissioned officer of the National Oceanic and Atmospheric 
     Administration or the Public Health Service shall be excused 
     from the requirements of subparagraphs (C), (D), and (E) of 
     paragraph (1).
       ``(B) The Secretary may modify or waive any of the terms 
     and conditions set forth in paragraph (1) through the 
     imposition of alternative service requirements.''.
       (b) Application.--Paragraph (6) of section 1303(e) of the 
     Merchant Marine Act, 1936 (46 U.S.C. App. 1295b(e)), as added 
     by this section, applies only to an individual who enrolls as 
     a cadet at the United States Merchant Marine Academy, and 
     signs an agreement under paragraph (1) of that section, after 
     the date of the enactment of this Act.

     SEC. 3506. UNITED STATES MERCHANT MARINE ACADEMY GRADUATES: 
                   SERVICE OBLIGATION PERFORMANCE REPORTING 
                   REQUIREMENT.

       (a) In General.--Section 1303(e) of the Merchant Marine 
     Act, 1936 (46 U.S.C. App. 1295b(e)) is further amended by 
     adding at the end the following:
       ``(7)(A) Subject to any otherwise applicable restrictions 
     on disclosure in section 552a of title 5, United States Code, 
     the Secretary of Defense, the Secretary of the department in 
     which the Coast Guard is operating, the Administrator of the 
     National Oceanic and Atmospheric Administration, and the 
     Surgeon General of the Public Health Service--
       ``(i) shall report the status of obligated service of an 
     individual graduate of the Academy upon request of the 
     Secretary; and
       ``(ii) may, in their discretion, notify the Secretary of 
     any failure of the graduate to perform

[[Page 20872]]

     the graduate's duties, either on active duty or in the Ready 
     Reserve component of their respective service, or as a 
     commissioned officer of the National Oceanic and Atmospheric 
     Administration or the Public Health Service, respectively.
       ``(B) A report or notice under subparagraph (A) shall 
     identify any graduate determined to have failed to comply 
     with service obligation requirements and provide all required 
     information as to why such graduate failed to comply.
       ``(C) Upon receipt of such a report or notice, such 
     graduate may be considered to be in default of the graduate's 
     service obligations by the Secretary, and subject to all 
     remedies the Secretary may have with respect to such a 
     default.''.
       (b) Application.--The amendment made by this section does 
     not apply with respect to an agreement entered into under 
     section 1303(e) of the Merchant Marine Act, 1936 (46 U.S.C. 
     1295b(e)) before the date of the enactment of this Act.

     SEC. 3507. TEMPORARY AUTHORITY TO TRANSFER OBSOLETE COMBATANT 
                   VESSELS TO NAVY FOR DISPOSAL.

       The Secretary of Transportation shall, subject to the 
     availability of appropriations and consistent with section 
     1535 of title 31, United States Code, popularly known as the 
     Economy Act, transfer to the Secretary of the Navy during 
     fiscal year 2007 for disposal by the Navy, no fewer than 3 
     combatant vessels in the nonretention fleet of the Maritime 
     Administration that are acceptable to the Secretary of the 
     Navy.

     SEC. 3508. QUALIFYING RESERVE DUTY FOR RECEIPT OF STUDENT 
                   INCENTIVE PAYMENTS.

       Section 1304(g)(2) of title XIII of the Merchant Marine 
     Act, 1936 (46 U.S.C. App. 1295c(g)(2)) is amended to read as 
     follows:
       ``(2) Each agreement entered into under paragraph (1) shall 
     require the individual to accept enlisted reserve status in 
     the United States Naval Reserve (including the Merchant 
     Marine Reserve, United States Naval Reserve) or the United 
     States Coast Guard Reserve before receiving any student 
     incentive payments under this subsection.''.

     SEC. 3509. LARGE PASSENGER SHIP CREW REQUIREMENTS.

       Section 8103 of title 46, United States Code, is amended by 
     adding at the end the following:
       ``(k) Crew Requirements for Large Passenger Vessels.--
       ``(1) Citizenship and nationality.--Each unlicensed seaman 
     on a large passenger vessel shall be--
       ``(A) a citizen of the United States;
       ``(B) an alien lawfully admitted to the United States for 
     permanent residence;
       ``(C) an alien allowed to be employed in the United States 
     under the Immigration and Nationality Act (8 U.S.C. 1101 et 
     seq.), including an alien crewman described in section 
     101(a)(15)(D)(i) of that Act (8 U.S.C. 1101(a)(15)(D)(i)), 
     who meets the requirements of paragraph (3)(A) of this 
     subsection; or
       ``(D) a foreign national who is enrolled in the United 
     States Merchant Marine Academy.
       ``(2) Percentage limitation for alien seamen.--Not more 
     than 25 percent of the unlicensed seamen on a vessel 
     described in paragraph (1) of this subsection may be aliens 
     referred to in subparagraph (B) or (C) of that paragraph.
       ``(3) Special rules for certain unlicensed seamen.--
       ``(A) Qualifications.--An unlicensed seaman described in 
     paragraph (1)(C) of this subsection--
       ``(i) shall have been employed, for a period of not less 
     than 1 year, on a passenger vessel under the same common 
     ownership or control as the vessel described in paragraph (1) 
     of this subsection, as certified by the owner or managing 
     operator of such vessel to the Secretary;
       ``(ii) shall have no record of material disciplinary 
     actions during such employment, as verified in writing by the 
     owner or managing operator of such vessel to the Secretary;
       ``(iii) shall have successfully completed a United States 
     Government security check of the relevant domestic and 
     international databases, as appropriate, or any other 
     national security-related information or database;
       ``(iv) shall have successfully undergone an employer 
     background check--

       ``(I) for which the owner or managing operator provides a 
     signed report to the Secretary that describes the background 
     checks undertaken that are reasonably and legally available 
     to the owner or managing operator including personnel file 
     information obtained from such seaman and from databases 
     available to the public with respect to the seaman;
       ``(II) that consisted of a search of all information 
     reasonably available to the owner or managing operator in the 
     seaman's country of citizenship and any other country in 
     which the seaman receives employment referrals, or resides;
       ``(III) that is kept on the vessel and available for 
     inspection by the Secretary; and
       ``(IV) the information derived from which is made available 
     to the Secretary upon request; and

       ``(v) may not be a citizen or temporary or permanent 
     resident of a country designated by the United States as a 
     sponsor of terrorism or any other country that the Secretary, 
     in consultation with the Secretary of State and the heads of 
     other appropriate United States agencies, determines to be a 
     security threat to the United States.
       ``(B) Restrictions.--An unlicensed seaman described in 
     paragraph (1)(C) of this subsection--
       ``(i) may be employed only in the steward's department of 
     the vessel; and
       ``(ii) may not perform watchstanding, automated engine room 
     duty watch, or vessel navigation functions.
       ``(C) Status, documentation, and employment.--An unlicensed 
     seaman described in subparagraph (C) or (D) of paragraph (1) 
     of this subsection--
       ``(i) is deemed to meet the nationality requirements 
     necessary to qualify for a merchant mariners document 
     notwithstanding the requirements of part 12 of title 46, Code 
     of Federal Regulations;
       ``(ii) is deemed to meet the proof-of-identity requirements 
     necessary to qualify for a merchant mariners document, as 
     prescribed under regulations promulgated by the Secretary, if 
     the seaman possesses--

       ``(I) an unexpired passport issued by the government of the 
     country of which the seaman is a citizen or subject; and
       ``(II) an unexpired visa issued to the seaman, as described 
     in paragraph (1)(C);

       ``(iii) shall, if eligible, be issued a merchant mariners 
     document with an appropriate annotation reflecting the 
     restrictions of subparagraph (B) of this paragraph; and
       ``(iv) may be employed for a period of service on board not 
     to exceed 36 months in the aggregate as a nonimmigrant 
     crewman described in section 101(a)(15)(D)(i) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(D)(i)) 
     on vessels engaged in domestic voyages notwithstanding the 
     departure requirements and time limitations of such section 
     and the regulations and rules promulgated thereunder.
       ``(4) Merchant mariner's document requirements not 
     affected.--This subsection shall not be construed to affect 
     any requirement under Federal law that an individual must 
     hold a merchant mariner's document.
       ``(5) Definitions.--In this subsection:
       ``(A) Steward's department.--The term `steward's 
     department' means the department that includes entertainment 
     personnel and all service personnel, including wait staff, 
     housekeeping staff, and galley workers, as defined in the 
     vessel security plan approved by the Secretary pursuant to 
     section 70103(c) of this title.
       ``(B) Large passenger vessel.--The term `large passenger 
     vessel' means a vessel of more than 70,000 gross tons, as 
     measured under section 14302 of this title, with capacity for 
     at least 2,000 passengers and documented with a coastwise 
     endorsement under chapter 121 of this title.''.

     SEC. 3510. MISCELLANEOUS MARITIME ADMINISTRATION PROVISIONS.

       (a) Technical Correction Regarding War Risk Insurance for 
     Merchant Marine Vessels.--
       (1) In general.--Section 1208(a) of the Merchant Marine 
     Act, 1936 (46 U.S.C. App. 1288(a)) is amended--
       (A) by striking ``Upon the request of the Secretary of 
     Transportation, the Secretary of the Treasury may invest or 
     reinvest all or any part of the fund in securities of the 
     United States or in securities guaranteed as to principal and 
     interest by the United States.''; and
       (B) by inserting after ``to the credit of such fund.'' the 
     following: ``Payments of return premiums, losses, 
     settlements, judgments, and all liabilities incurred by the 
     United States under this title shall be made from such fund 
     through the Fiscal Service of the Department of the 
     Treasury.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall be effective as if enacted by section 3502 of the 
     Ronald W. Reagan National Defense Authorization Act for 
     Fiscal Year 2005 (118 Stat. 2195).
       (b) Right to Use Maritime Administration Decoration.--
     Section 8 of the Merchant Marine Decorations and Medals Act 
     (46 U.S.C. App. 2007) is amended by inserting ``or the 
     Secretary of Transportation,'' after ``Act,''.
       (c) Intermodal Centers.--
       (1) In general.--Notwithstanding section 5309(m)(6)(B) of 
     title 49, United States Code, half of the amounts 
     appropriated or made available under subsections (b) and (c) 
     of section 5338 of title 49, United States Code, for capital 
     projects under section 5309(m)(6)(B) of that title for fiscal 
     years 2006 through 2009 shall be made available and used, in 
     accordance with section 9008(a) of Public Law 109-59, for an 
     intermodal or marine facility comprising a component of the 
     Hawaii Port Infrastructure Expansion Program.
       (2) Supplementary funding.--Any amount made available under 
     paragraph (1) shall be in addition to any amounts authorized 
     to be appropriated under subsections (b) and (c) of section 
     9008 of Public Law 109-59.
       (d) Technical Correction.--
       (1) Correction.--Section 3509 of the National Defense 
     Authorization Act for Fiscal Year 2006 (119 Stat. 3557) is 
     amended by striking ``Maritime Education and Training Act of 
     1980'' and inserting ``Merchant Marine Act, 1936''.
       (2) Effective date.--This subsection shall be effective 
     immediately after section 3509 of the National Defense 
     Authorization Act for Fiscal Year 2006 (119 Stat. 3557) takes 
     effect.
       And the Senate agree to the same.

     From the Committee on Armed Services, for consideration of 
     the House bill and the Senate amendment, and modifications 
     committed to conference:
     Duncan Hunter,
     C. Weldon,
     Joel Hefley,
     J. Saxton,
     John M. McHugh,
     Terry Everett,

[[Page 20873]]

     R. Bartlett,
     Mac Thornberry,
     John N. Hostettler,
     Jim Ryun,
     Jim Gibbons,
     Robin Hayes,
     Ken Calvert,
     Rob Simmons,
     Thelma Drake,
     Geoff Davis,
     Ike Skelton,
     John M. Spratt, Jr.,
     Solomon P. Ortiz,
     Gene Taylor,
     Neil Abercrombie,
     Silvestre Reyes,
     Vic Snyder,
     Adam Smith,
     Loretta Sanchez,
     Ellen Tauscher,
     R.A. Brady,
     Robert E. Andrews,
     From the Permanent Select Committee on Intelligence, for 
     consideration of matters within the jurisdiction of that 
     committee under clause 11 of rule X:
     Pete Hoekstra,
     Ray LaHood,
     Jane Harman,
     From the Committee on Education and the Workforce, for 
     consideration of secs. 571 and 572 of the House bill, and 
     secs. 571, 572, 1081, and 1104 of the Senate amendment, and 
     modifications committed to conference:
     Howard P. McKeon,
     John Kline,
     From the Committee on Energy and Commerce, for consideration 
     of secs. 314, 601, 602, 710, 3115, 3117, and 3201 of the 
     House bill, and secs. 332-335, 352, 601, 722, 2842, 3115, and 
     3201 of the Senate amendment, and modifications committed to 
     conference:
     Joe Barton,
     Paul Gillmor,
     From the Committee on Government Reform, for consideration of 
     secs. 343, 721, 811, 823, 824, 1103, 1104, and 3115 of the 
     House bill, and secs. 371, 619, 806, 823, 922, 1007, 1043, 
     1054, 1088, 1089, 1101, and 3115 of the Senate amendment, and 
     modifications committed to conference:
     Tom Davis,
     C. Shays,
     From the Committee on Homeland Security, for consideration of 
     section 1026 of the House bill, and section 1044 of the 
     Senate amendment, and modifications committed to conference:
     Peter T. King,
     D. Reichert,
     Bennie G. Thompson,
     From the Committee on International Relations, for 
     consideration of secs. 1021-1023, 1201-1204, 1206, title 
     XIII, sec. 3113 and 3114 of the House bill, and secs. 1014, 
     1021-1023, 1504, 1092, 1201-1208, 1210, 1214, title XIII, 
     secs. 3112 and 3113 of the Senate amendment, and 
     modifications committed to conference:
     Henry Hyde,
     James Leach,
     Tom Lantos,
     From the Committee on Resources, for consideration of secs. 
     601, 602, and 1036 of the House bill and section 601 of the 
     Senate amendment, and modifications committed to conference:
     Richard Pombo,
     Greg Walden,
     From the Committee on Science, for consideration of secs. 312 
     and 911 of the House bill, and secs. 333, 874, and 1082 of 
     the Senate amendment, and modifications committed to 
     conference:
     Sherwood Boehlert,
     Mike Sodrel,
     From the Committee on Small Business, for consideration of 
     secs. 874 and 1093 of the Senate amendment, and modifications 
     committed to conference:
     Donald Manzullo,
     Sue W. Kelly,
     From the Committee on Transportation and Infrastructure, for 
     consideration of secs. 312, 551, 601, 602, and 2845 of the 
     House bill, and secs. 333, 584, 601, 1042, 1095, 2842, 2851-
     2853, and 2855 of the Senate amendment, and modifications 
     committed to conference:
     Don Young,
     Frank LoBiondo,
     Jim Oberstar
     (Except sections 1095, 2851, 2852, 2853 of the Senate 
     amendment),
     From the Committee on Veterans' Affairs, for consideration of 
     secs. 666, 682, 683, 687, 721, and 923 of the Senate 
     amendment, and modifications committed to conference:
     Steven Buyer,
     John Boozman,
     Stephanie Herseth,
                                Managers on the Part of the House.

     John W. Warner,
     John McCain,
     James M. Inhofe,
     Pat Roberts,
     Jeff Sessions,
     Susan M. Collins,
     John Ensign,
     Jim Talent,
     Joe Lieberman,
     Jack Reed,
     Daniel K. Akaka,
     Bill Nelson,
     E. Benjamin Nelson,
     Mark Dayton,
     Evan Bayh,
     H.R. Clinton,
     Saxby Chambliss,
     Lindsey Graham,
     John Cornyn,
     John Thune,
     Carl Levin,
     Ted Kennedy,
     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. 5122) to authorize 
     appropriations for fiscal year 2007 for military activities 
     of the Department of Defense, for military construction, and 
     for defense activities of the Department of Energy, to 
     prescribe personnel strengths for such fiscal year for the 
     Armed Forces, and for other purposes, submit the following 
     joint statement to the House and the Senate in explanation of 
     the effect of the action agreed upon by the managers and 
     recommended in the accompanying conference report:
       The Senate amendment struck out all of the House bill after 
     the enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment which is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clarifying 
     changes.

                Summary Statement of Conference Actions

       The Conferees recommend authorization of appropriations for 
     fiscal year 2007 for the Department of Defense for 
     procurement; research and development; test and evaluation; 
     operation and maintenance; working capital funds; military 
     construction and family housing; and for weapons and 
     environmental restoration programs of the Department of 
     Energy; that have a budget authority implication of $462.8 
     billion for the national defense function.
       The conferees recommend emergency authorization of 
     appropriations for the Department of Defense of $70.0 billion 
     for the costs associated with ongoing contingency operations 
     in Iraq and Afghanistan, of which $23.8 billion is included 
     for equipment reset costs for the Army and Marine Corps.
     Summary table of authorizations
       The defense authorization act provides authorizations for 
     appropriations, but does not generally provide budget 
     authority. Budget authority is provided in the appropriations 
     act.
       In order to relate the conference recommendations to the 
     budget resolution, matters in addition to the dollar 
     authorizations contained in this bill must be taken into 
     account. A number of programs in the national defense 
     function are authorized in other legislation.
       The following table summarizes authorizations included in 
     the bill for fiscal year 2007 and, in addition, summarizes 
     the implications of the conference action for the budget 
     authority totals for national defense (budget function 050).

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[[Page 20875]]

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[[Page 20876]]

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[[Page 20877]]

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[[Page 20878]]

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[[Page 20879]]

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[[Page 20880]]

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[[Page 20881]]

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[[Page 20882]]

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

     Procurement overview
       The budget request included $82,901.0 million in 
     Procurement for the Department of Defense.
       The House bill would authorize $84,592.4 million.
       The Senate amendment would authorize $85,722.8 million.
       The conferees agree to authorize $84,153.6 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20883]]

     TH29SE06.009
     


                              Budget Items

     Aircraft Procurement, Army overview
       The budget request included $3,566.5 million in Aircraft 
     Procurement, Army for the Department of Defense.
       The House bill would authorize $3,714.8 million.
       The Senate amendment would authorize $3,457.3 million.
       The conferees agree to authorize $3,451.4 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20884]]

     TH29SE06.010
     


[[Page 20885]]

     TH29SE06.011
     


[[Page 20886]]

     TH29SE06.012
     


[[Page 20887]]

     Missile Procurement, Army overview
       The budget request included $1,350.9 million in Missile 
     Procurement, Army for the Department of Defense.
       The House bill would authorize $1,490.9 million.
       The Senate amendment would authorize $1,428.9 million.
       The conferees agree to authorize $1,328.9 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20888]]

     TH29SE06.013
     


[[Page 20889]]

     TH29SE06.014
     


[[Page 20890]]

     Procurement of Weapons and Tracked Combat Vehicles, Army 
         overview
       The budget request included $2,301.9 million in Procurement 
     of Weapons and Tracked Combat Vehicles, Army for the 
     Department of Defense.
       The House bill would authorize $2,335.0 million.
       The Senate amendment would authorize $2,849.7 million.
       The conferees agree to authorize $2,278.6 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20891]]

     TH29SE06.015
     


[[Page 20892]]

     TH29SE06.016
     


[[Page 20893]]

     TH29SE06.017
     


[[Page 20894]]

     Procurement of Ammunition, Army overview
       The budget request included $1,903.1 million in Procurement 
     of Ammunition, Army for the Department of Defense.
       The House bill would authorize $1,691.5 million.
       The Senate amendment would authorize $2,036.8 million.
       The conferees agree to authorize $1,984.3 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20895]]

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[[Page 20896]]

     TH29SE06.019
     


[[Page 20897]]

     TH29SE06.020
     


[[Page 20898]]

     Other Procurement, Army overview
       The budget request included $7,718.6 million in Other 
     Procurement, Army for the Department of Defense.
       The House bill would authorize $6,974.1 million.
       The Senate amendment would authorize $7,729.6 million.
       The conferees agree to authorize $7,687.5 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20899]]

     TH29SE06.021
     


[[Page 20900]]

     TH29SE06.022
     


[[Page 20901]]

     TH29SE06.023
     


[[Page 20902]]

     TH29SE06.024
     


[[Page 20903]]

     TH29SE06.025
     


[[Page 20904]]

     TH29SE06.026
     


[[Page 20905]]

     TH29SE06.027
     


[[Page 20906]]

     TH29SE06.028
     


[[Page 20907]]

     TH29SE06.029
     


[[Page 20908]]

     TH29SE06.030
     


[[Page 20909]]

     Aircraft Procurement, Navy overview
       The budget request included $10,868.8 million in Aircraft 
     Procurement, Navy for the Department of Defense.
       The House bill would authorize $10,760.7 million.
       The Senate amendment would authorize $10,704.2 million.
       The conferees agree to authorize $10,734.1 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20910]]

     TH29SE06.031
     


[[Page 20911]]

     TH29SE06.032
     


[[Page 20912]]

     TH29SE06.033
     


[[Page 20913]]

     TH29SE06.034
     


[[Page 20914]]

     Weapons Procurement, Navy overview
       The budget request included $2,555.0 million in Weapons 
     Procurement, Navy for the Department of Defense.
       The House bill would authorize $2,517.0 million.
       The Senate amendment would authorize $2,587.0 million.
       The conferees agree to authorize $2,549.0 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20915]]

     TH29SE06.035
     


[[Page 20916]]

     TH29SE06.036
     


[[Page 20917]]

     TH29SE06.037
     


[[Page 20918]]

     Procurement of Ammunition, Navy and Marine Corps overview
       The budget request included $789.9 million in Procurement 
     of Ammunition, Navy and Marine Corps for the Department of 
     Defense.
       The House bill would authorize $758.8 million.
       The Senate amendment would authorize $809.9 million.
       The conferees agree to authorize $797.9 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20919]]

     TH29SE06.038
     


[[Page 20920]]

     TH29SE06.039
     


[[Page 20921]]

     Shipbuilding and Conversion, Navy overview
       The budget request included $10,578.6 million in 
     Shipbuilding and Conversion, Navy for the Department of 
     Defense.
       The House bill would authorize $11,183.2 million.
       The Senate amendment would authorize $12,058.6 million.
       The conferees agree to authorize $11,021.6 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20922]]

     TH29SE06.040
     


[[Page 20923]]

     TH29SE06.041
     


[[Page 20924]]

     Other Procurement, Navy overview
       The budget request included $4,967.9 million in Other 
     Procurement, Navy for the Department of Defense.
       The House bill would authorize $5,042.8 million.
       The Senate amendment would authorize $5,045.5 million.
       The conferees agree to authorize $4,995.0 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20925]]

     TH29SE06.042
     


[[Page 20926]]

     TH29SE06.043
     


[[Page 20927]]

     TH29SE06.044
     


[[Page 20928]]

     TH29SE06.045
     


[[Page 20929]]

     TH29SE06.046
     


[[Page 20930]]

     TH29SE06.047
     


[[Page 20931]]

     TH29SE06.048
     


[[Page 20932]]

     TH29SE06.049
     


[[Page 20933]]

     TH29SE06.050
     


[[Page 20934]]

     Procurement, Marine Corps overview
       The budget request included $1,273.5 million in 
     Procurement, Marine Corps for the Department of Defense.
       The House bill would authorize $1,223.8 million.
       The Senate amendment would authorize $1,300.2 million.
       The conferees agree to authorize $1,253.8 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20935]]

     TH29SE06.051
     


[[Page 20936]]

     TH29SE06.052
     


[[Page 20937]]

     TH29SE06.053
     


[[Page 20938]]

     TH29SE06.054
     


[[Page 20939]]

     TH29SE06.055
     


[[Page 20940]]

     Aircraft Procurement, Air Force overview
       The budget request included $11,479.8 million in Aircraft 
     Procurement, Air Force for the Department of Defense.
       The House bill would authorize $13,042.6 million.
       The Senate amendment would authorize $12,004.1 million.
       The conferees agree to authorize of $12,179.2 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20941]]

     TH29SE06.056
     


[[Page 20942]]

     TH29SE06.057
     


[[Page 20943]]

     TH29SE06.058
     


[[Page 20944]]

     TH29SE06.059
     


[[Page 20945]]

     TH29SE06.060
     


[[Page 20946]]

     TH29SE06.061
     


[[Page 20947]]

     Procurement of Ammunition, Air Force overview
       The budget request included $1,072.7 million for 
     Procurement of Ammunition, Air Force for the Department of 
     Defense.
       The House bill would authorize $1,076.7 million.
       The Senate amendment would authorize $1,076.7 million.
       The conferees agree to authorize $1,072.7 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20948]]

     TH29SE06.062
     


[[Page 20949]]

     TH29SE06.063
     


[[Page 20950]]

     Missile Procurement, Air Force overview
       The budget request included $4,204.1 million in Missile 
     Procurement, Air Force for the Department of Defense.
       The House bill would authorize $4,171.5 million.
       The Senate amendment would authorize $4,219.1 million.
       The conferees agree to authorize $4,171.9 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20951]]

     TH29SE06.064
     


[[Page 20952]]

     TH29SE06.065
     


[[Page 20953]]

     TH29SE06.066
     


[[Page 20954]]

     Other Procurement, Air Force overview
       The budget request included $15,408.1 million in Other 
     Procurement, Air Force for the Department of Defense.
       The House bill would authorize $15,434.6 million.
       The Senate amendment would authorize $15,434.6 million.
       The conferees agree to authorize $15,443.3 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20955]]

     TH29SE06.067
     


[[Page 20956]]

     TH29SE06.068
     


[[Page 20957]]

     TH29SE06.069
     


[[Page 20958]]

     TH29SE06.070
     


[[Page 20959]]

     TH29SE06.071
     


[[Page 20960]]

     TH29SE06.072
     


[[Page 20961]]

     Procurement, Defense-wide overview
       The budget request included $2,861.5 million in 
     Procurement, Defense-wide for the Department of Defense.
       The House bill would authorize $2,856.5 million.
       The Senate amendment would authorize $2,980.5 million.
       The conferees agree to authorize $2,886.4 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20962]]

     TH29SE06.073
     


[[Page 20963]]

     TH29SE06.074
     


[[Page 20964]]

     TH29SE06.075
     


[[Page 20965]]

     TH29SE06.076
     


[[Page 20966]]

     TH29SE06.077
     


[[Page 20967]]

     National Guard and Reserve Equipment
       The budget request included no funding in the National 
     Guard and Reserve Equipment account for the Department of 
     Defense.
       The House bill would authorize $318.0 million.
       The Senate amendment contained no similar funding.
       The Senate recedes.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 20968]]

     TH29SE06.078
     


[[Page 20969]]

     Light Cargo Aircraft
       The budget request included $109.2 million in Aircraft 
     Procurement, Army (APA) for the procurement of three Future 
     Cargo Aircraft (FCA) and $15.8 million in Aircraft 
     Procurement, Air Force (APAF) for the Light Cargo Aircraft 
     (LCA).
       The House bill would authorize the budget request.
       The Senate amendment would authorize a decrease of $109.2 
     million.
       The conferees agree to authorize a decrease of $109.2 
     million in APA, and an increase by the same amount in APAF.
       The conferees note that the Army initiated the FCA program 
     to support an Army organic, time-sensitive cargo mission. The 
     Air Force is also interested in procuring a similar type of 
     aircraft and has been in the process of establishing a 
     program office for a new intra-theater LCA. Since submission 
     of the budget request, the Army and Air Force have signed a 
     Memorandum of Understanding (MOU) regarding merging the two 
     programs into a new program called the Joint Cargo Aircraft 
     (JCA).
       As part of implementing that MOU, the Air Force is 
     conducting F-series (functional analysis) studies and an 
     independent analysis of alternatives to define the broader 
     requirement for the aircraft. The Air Force's LCA would 
     provide intra-theater lift mission support for the U.S. 
     Transportation Command (USTRANSCOM), which is the 
     distribution process owner for the Department of Defense. The 
     conferees note that intra-theater lift using fixed wing 
     aircraft is performed most efficiently when it is coordinated 
     by USTRANSCOM.
       The conferees also note that the Joint Chiefs of Staff 
     Intra-theater Lift Capabilities Study Phase 1 and the Air 
     Mobility Command's Mobility Roadmap are currently being 
     developed. The conferees further agree that, until these 
     documents are complete, the right mix and number of intra-
     theater aircraft will not be determined. Therefore, it would 
     be premature to procure aircraft until the Department 
     completes these efforts and presents them to the 
     congressional defense committees.

                       Items of Special Interest

     Battleship transfer
       The House report accompanying H.R. 5122 (H. Rept. 109-452) 
     of the National Defense Authorization Act for Fiscal Year 
     2007 contained an item of special interest to clarify 
     instructions to the Navy regarding the transfer of the 
     battleships USS Wisconsin and USS Iowa, included in the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163). The conferees understand that: (1) the 
     Navy will require that the USS Wisconsin and USS Iowa be 
     preserved in their present condition through continued use of 
     cathodic protection, dehumidification, and other methods as 
     needed; (2) any alterations to the battleships while in the 
     custody of entities within the Commonwealth of Virginia and 
     State of California, respectively, could be reverted; and (3) 
     spare parts and unique equipment, such as 16-inch gun barrels 
     and projectiles, if donated, will include a provision in the 
     donation agreement that they can be recalled if the 
     battleships are returned to the Navy in the event of a 
     national emergency. The conferees agree that these measures 
     would meet the intent of the instructions contained in the 
     House report.
     Study on replacement of the T-38 training aircraft
       The Senate report accompanying S. 2766 (S. Rept. 109-254) 
     of the National Defense Authorization Act for Fiscal Year 
     2007 directed the Secretary of the Air Force to conduct a 
     study that would determine the suitability of T-45 and Korean 
     built KT-50 training aircraft to replace the T-38 training 
     aircraft.
       The conferees direct the Secretary to conduct a study that 
     would determine the suitability of the T-45, and any other 
     appropriate aircraft, to replace the T-38, and to submit a 
     report on the results of this study to the congressional 
     defense committees by March 15, 2007.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 101-104)
       The House bill contained provisions (secs. 101-104) that 
     would authorize the recommended fiscal year 2007 funding 
     levels for Procurement Army, Navy, Marine Corps, Air Force, 
     and Defense-wide activities.
       The Senate amendment contained similar provisions (secs. 
     101-104).
       The conference agreement includes these provisions.

                        Subtitle B-Army Programs

     Sense of Congress on future multiyear procurement authority 
         for the Family of Medium Tactical Vehicles (sec. 111)
       The House bill contained a provision (sec. 111) that would 
     authorize the Secretary of the Army to enter into a 3-year 
     multiyear procurement contract, beginning with fiscal year 
     2008, for procurement of the Family of Medium Tactical 
     Vehicles (FMTV).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would express the 
     sense of Congress on the use of a multiyear procurement 
     contract to extend FMTV procurement beyond the current 5-year 
     multiyear contract. The amendment would also recommend that 
     the Army incorporate product improvements from lessons 
     learned from Operation Enduring Freedom (OEF) and Operation 
     Iraqi Freedom (OIF) and from product improvement programs in 
     the area of force protection, survivability, reliability, 
     network communications situational awareness, and safety.
       The conferees recognize that the current 5-year multiyear 
     procurement for FMTV A1R vehicles ends with fiscal year 2007 
     funding and calendar year 2008 deliveries. The conferees 
     understand that 28,000 trucks have been produced to date, 
     which falls short of the Army requirement for 85,000 trucks. 
     The Army's Tactical Wheeled Vehicle (TWV) Modernization 
     Strategy Report to Congress stated that ``As a risk 
     mitigator, use of contract options will be sought to permit 
     extension of current production models to avoid any breaks in 
     vehicle supply.'' The conferees note that the Army has saved 
     approximately 6-10 percent on the costs of a 3-year multiyear 
     contract versus single year procurement under three 
     successive multiyear contracts. The conferees are concerned 
     that single year contract awards would be costly because of 
     the outstanding requirement and costly given the current 
     savings provided by the current multiyear contract.
       Furthermore, the conferees also note that a multiyear 
     contract would potentially assure favorable, cost-effective 
     prices for a more advanced FMTV configuration that would 
     incorporate lessons learned from OEF and OIF, as well as 
     ensure stability in the industrial base.
       The conferees expect the Department of the Army to comply 
     with all documentation and certifications requirements of 
     section 2306(b) of title 10, United States Code.
     Multiyear procurement authority for MH-60R helicopter and 
         mission equipment (sec. 112)
       The House bill contained a provision (sec. 112) that would 
     authorize the Secretary of the Army, acting as the executive 
     agent for the Department of the Navy, to enter into a 5-year, 
     multiyear procurement contract for 144 MH-60R helicopters and 
     associated mission equipment beginning with the fiscal year 
     2007 program year. Further, the provision would require that 
     the multiyear procurement contract authority be executed in 
     accordance with section 2306b of title 10, United States 
     Code.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the Secretary of the Army, acting as the executive agent for 
     the Department of the Navy, to enter into a multiyear 
     contract, beginning with fiscal year 2007, for the 
     procurement of MH-60R helicopters. The amendment would also 
     authorize the Secretary of the Navy to enter into a multiyear 
     contract for the procurement of associated mission equipment 
     for MH-60R helicopters.
       The conferees expect the Secretary of the Army and the 
     Secretary of the Navy to submit certifications required by 
     section 2306b before approving multiyear contracts for MH-60R 
     helicopters and associated mission equipment. The conferees 
     also understand that the Department of the Army and the 
     Department of the Navy intend to procure at least 144 MH-60R 
     helicopters and associated mission equipment.
     Funding profile for modular force initiative of the Army 
         (sec. 113)
       The House bill contained a provision (sec. 113) that would 
     require the Secretary of the Army to include the M1A2 Abrams 
     SEP tank and Bradley A3 fighting vehicles within the Army's 
     modularity funding profile beginning with the 2008 budget 
     submission, in accordance with the March 2006 Army report to 
     Congress entitled ``The Army Modular Initiative.''
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Bridge to Future Networks program (sec. 114)
       The House bill contained a provision (sec. 114) that would 
     limit to not more than 70 percent, the amounts authorized to 
     be appropriated for the bridge to Future Networks program, 
     until the Secretary of the Army submits a report to the 
     congressional defense committees on an analysis of the 
     integration of the Joint Network Node (JNN) and the 
     Warfighter Information Network-Tactical (WIN-T).
       The Senate amendment contained a similar provision (sec. 
     111) that would withhold 50 percent of the funds authorized 
     to be appropriated for the procurement of the JNN until the 
     Secretary provides a report to the congressional defense 
     committees on the Army's strategy for the convergence of the 
     JNN, WIN-T, and the Mounted Battle Command On-the-Move 
     communications programs.
       The Senate recedes with a clarifying amendment.
     Comptroller General report on the contract for the Future 
         Combat Systems program (sec. 115)
       The Senate amendment contained a provision (sec. 112) that 
     would require the Comptroller General to submit to the 
     congressional defense committees a report on the

[[Page 20970]]

     participation and activities of the lead systems integrator 
     in the Future Combat Systems (FCS) program under the contract 
     of the Army for the FCS program.
       The House bill contained no similar provision.
       The House recedes.
     Priority for allocation of replacement equipment to 
         operational units based on combat mission deployment 
         schedule (sec. 116)
       The Senate amendment contained a provision (sec. 114) that 
     would establish a priority for the distribution of new and 
     combat serviceable equipment for active and reserve component 
     forces to units scheduled for mission deployment, employment, 
     or both regardless of component. Priority for the 
     distribution of new and combat serviceable equipment would 
     then be given to Army National Guard units in States that 
     have experienced a major disaster, as determined under the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5121-5206), and may require replacement 
     equipment to respond to future emergencies or disasters.
       The House bill contained no similar provision.
       The House recedes with an amendment that would expand the 
     authority, as provided for in the Ronald W. Reagan National 
     Defense Authorization Act for Fiscal Year 2005 (Public Law 
     108-375), by directing the Secretary of Defense to ensure 
     that priority for the distribution of equipment using the 
     amounts authorized to be appropriated for the procurement of 
     replacement equipment for the distribution of new and combat 
     serviceable equipment, with associated support and test 
     equipment, for active and reserve component forces be given 
     to operational units based on combat mission deployment 
     schedule regardless of component.
       The conferees recognize that National Guard units operating 
     in States that have experienced a major disaster, as 
     determined under the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5121-5206), may require 
     replacement equipment to respond to future natural and man-
     made disasters. The conferees direct the Secretary of Defense 
     to conduct a study on the priority distribution strategy for 
     replacing National Guard equipment and to submit a report on 
     the results of the study to the congressional defense 
     committees no later than April 1, 2007. The conferees expect 
     the Department to allocate equipment based on the priorities 
     determined by this analysis.

                       Subtitle C--Navy Programs

     CVN-21 class aircraft carrier procurement (sec. 121)
       The Senate amendment contained a provision (sec. 121) that 
     would authorize the Secretary of the Navy to incrementally 
     fund procurement of CVN-21 class aircraft carriers over four 
     year periods, commencing with CVN-78 procurement in fiscal 
     year 2008. The provision would also authorize the Secretary 
     to enter into a contract during fiscal year 2007 for advance 
     procurement with respect to the CVN-21 class aircraft 
     carriers designated CVN-79 and CVN-80.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary to incrementally fund procurement of a CVN-21 
     class aircraft carrier designated CVN-78, CVN-79, and CVN-80, 
     as applicable, over four year periods, commencing with the 
     fiscal year of the contract for construction of the 
     applicable aircraft carrier.
     Adherence to Navy cost estimates for CVN-21 class of aircraft 
         carriers (sec. 122)
       The House bill contained a provision (sec. 122) that would 
     limit the total amount to be obligated or expended from funds 
     appropriated or otherwise made available in Shipbuilding and 
     Conversion, Navy, or for any other procurement account, for 
     the detail design, non-recurring engineering and construction 
     of the lead ship of the CVN-21 class aircraft carrier program 
     to $10.5 billion. The provision would also limit the total 
     amount to be obligated or expended for the construction of 
     the follow-on ships of the CVN-21 class aircraft carrier 
     program to $8.1 billion. The provision would allow the 
     Secretary of the Navy to adjust the limitation amounts for: 
     (1) economic inflation; (2) changes in Federal, State, or 
     local laws enacted after September 30, 2006; (3) outfitting 
     and post-delivery costs; and (4) insertion of new technology. 
     The insertion of new technology would be limited to those 
     technologies that could be used to either lower life cycle 
     costs or meet an emerging threat. The provision would also 
     require the Secretary to report any adjustment to the cost 
     limitation with the submission of the annual budget request.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would also allow 
     the Secretary to make adjustments for amounts of increases or 
     decreases to cost attributable to: (1) non-recurring design 
     and engineering pursuant to achieving compliance with the 
     cost limitation; and (2) correction of deficiencies that 
     affect safety of ship, safety of personnel, or otherwise 
     preclude safe operations and crew certifications.
       The amendment would not provide the Secretary authority to 
     adjust the limitation amounts for cost increases attributable 
     to congressional actions that impact on the shipbuilding 
     program of record. However, the conferees understand that 
     such action could have significant impact on program cost, 
     and therefore direct that the Secretary include, within the 
     annual written notice to the congressional defense committees 
     regarding changes to the cost limitations, an assessment of 
     any negative impact of congressional action on program costs.
       The conferees understand that the CVN-21 class budget 
     represents the Navy's risk-balanced assessment of the cost 
     for completing design and construction of the future class of 
     nuclear powered aircraft carriers. The conferees recognize 
     that many uncertainties remain with regard to completion of 
     CVN-21 design and construction, including innumerable, 
     inestimable events which will impact cost during the next 15 
     years of performance on the program. Accordingly, the 
     amendment would allow adjustment to the cost limitation for 
     non-recurring design and engineering in order to enable the 
     Navy to reduce this risk in the execution of the design 
     effort.
       The conferees expect that the Navy will ultimately manage 
     program execution within the bounds of the budget estimate. 
     Accordingly, the conferees understand that compliance with 
     this provision will require procurement cost trade-offs to be 
     accomplished, which could reduce the capabilities, system 
     performance, safety, crew quality of life, future growth 
     margin, or other important factors in the design and 
     construction of the CVN-21 class. The conferees believe that 
     most of these trade-offs will be within the purview of the 
     program office and requirements office. However, the 
     Secretary shall notify the Committees on Armed Services of 
     the Senate and the House of Representatives not less than 30 
     days prior to implementing any cost-driven reduction which 
     would unacceptably impact safety, crew quality of life, or 
     otherwise preclude the program from meeting the requirements 
     of the CVN-21 Operational Requirements Document. The 
     Secretary's notification shall identify the specific 
     characteristic proposed to be reduced and the cost avoidance 
     provided by such reduction.
     Modification of limitation on total cost of procurement of 
         CVN-77 aircraft carrier (sec. 123)
       The Senate amendment contained a provision (sec. 123) that 
     would increase the limitation on the total cost of 
     procurement for the CVN-77 aircraft carrier to $6.057 
     billion.
       The House bill contained no similar provision.
       The House recedes.
     Construction of first two vessels under the DDG-1000 Next-
         Generation Destroyer program (sec. 124)
       The Senate amendment contained a provision (sec. 122) that 
     would authorize the Secretary of the Navy to enter into a 
     contract to fund the detail design and construction of the 
     first two DDG-1000 class destroyers in Shipbuilding and 
     Conversion, Navy (SCN), with funding split over fiscal years 
     2007 and 2008.
       The House bill contained a similar provision (sec. 127).
       The House recedes with a technical amendment.
       The conferees understand that the Secretary has requested 
     split funding authority for the two lead ships of the DDG-
     1000 class as a one-time program exception to the full 
     funding policy in order to support the competitive 
     procurement of the follow-on ships of the program. The 
     conferees agree that there is sufficient benefit to 
     authorizing this one-time exception with the expectation that 
     the Secretary will structure the DDG-1000 program so that 
     each ship, after the first two ships, is procured using the 
     method of full funding in a single year.
     Adherence to Navy cost estimates for LHA Replacement 
         amphibious assault ship program (sec. 125)
       The House bill contained a provision (sec. 123) that would 
     limit the total amount to be obligated or expended from funds 
     appropriated or otherwise made available in Shipbuilding and 
     Conversion, Navy, or for any other procurement account, for 
     the detail design, non-recurring engineering and construction 
     of the lead ship of the LHA Replacement amphibious assault 
     ship, LHA-6, to $2.81 billion. The provision would allow the 
     Secretary of the Navy to adjust the limitation amounts for: 
     (1) economic inflation; (2) changes in Federal, State, or 
     local laws enacted after September 30, 2006; (3) outfitting 
     and post-delivery costs; and (4) insertion of new technology. 
     The insertion of new technology would be limited to those 
     technologies that could be used to either lower life-cycle 
     costs or meet an emerging threat. The provision would require 
     the Secretary to report any adjustment to the cost limitation 
     with the submission of the annual budget request.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would also allow 
     the Secretary to make adjustments for amounts of increases or 
     decreases to cost attributable to: (1) non-recurring design 
     and engineering pursuant to achieving compliance with the 
     cost limitation; (2) correction of deficiencies that affect

[[Page 20971]]

     safety of ship, safety of personnel, or otherwise preclude 
     safe operations and crew certifications; and (3) the effect 
     of Hurricane Katrina in August 2005 or other force majeure 
     contract modifications.
       The amendment would not provide the Secretary authority to 
     adjust the limitation amounts for cost increases attributable 
     to congressional actions that impact on the shipbuilding 
     program of record. However, the conferees understand that 
     such action could have significant impact on program cost, 
     and therefore direct that the Secretary include, within the 
     annual written notice to the congressional defense committees 
     regarding changes to the cost limitations, an assessment of 
     any negative impact of congressional action on program costs.
       The conferees understand that the LHA-6 budget represents 
     the Navy's risk-balanced assessment of the cost for 
     completing design and construction of the future LHA 
     Replacement ship. The conferees recognize that many 
     uncertainties remain with regard to completion of LHA-6 
     design and construction, including innumerable, inestimable 
     events which will impact cost during the next 6 years of 
     performance on the program. Accordingly, the amendment would 
     allow adjustment to the cost limitation for non-recurring 
     design and engineering in order to enable the Navy to reduce 
     this risk in the execution of the design effort.
       The conferees expect that the Navy will ultimately manage 
     program execution within the bounds of the budget estimate. 
     The conferees understand that compliance with this provision 
     will require procurement cost trade-offs to be accomplished, 
     which could reduce the capabilities, system performance, 
     safety, crew quality of life, future growth margin, or other 
     important factors in the design and construction of the LHA 
     Replacement ship. The conferees believe that most of these 
     trade-offs will be within the purview of the program office 
     and requirements office. However, the Secretary shall notify 
     the Committees on Armed Services of the Senate and the House 
     of Representatives not less than 30 days prior to 
     implementing any cost-driven reduction which would 
     unacceptably impact safety, crew quality of life, or 
     otherwise preclude the program from meeting the requirements 
     of the LHA Replacement program Capability Development 
     Document. The Secretary's notification shall identify the 
     specific characteristic proposed to be reduced and the cost 
     avoidance provided by such reduction.
     Cost limitation for San Antonio (LPD-17) class amphibious 
         ship program (sec. 126)
       The House bill contained a provision (sec. 124) that would 
     limit the total amount to be obligated or expended from funds 
     appropriated or otherwise made available for Shipbuilding and 
     Conversion, Navy, or for any other procurement account, for 
     eight San Antonio class amphibious ships (LPD-18, LPD-19, 
     LPD-20, LPD-21, LPD-22, LPD-23, LPD-24, and LPD-25) to the 
     cost estimates submitted for those ships with the fiscal year 
     2007 budget request. The provision would allow the Secretary 
     of the Navy to adjust the limitation amounts for economic 
     inflation; changes in Federal, State, or local laws enacted 
     after September 30, 2006; outfitting and post-delivery costs; 
     and the amounts of insertion of new technology. The insertion 
     of new technology would be limited to those technologies that 
     could be used to either lower life cycle costs or meet an 
     emerging threat. The provision would require the Secretary to 
     report any adjustment to the cost limitation with the 
     submission of the annual budget request.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would raise the 
     amounts of the limitation for the LPD-22, LPD-23, LPD-24, and 
     LPD-25 San Antonio class amphibious ships to the contract 
     ceiling prices for those four ships. The amendment would also 
     allow the Secretary to make adjustments for contract cost 
     adjustments directly attributed to the effect of Hurricane 
     Katrina or other force majeure contract modifications, and 
     for amounts of closeout costs associated with completion of 
     the LPD-17 class program.
     Multiyear procurement authority for V-22 tiltrotor aircraft 
         program (sec. 127)
       The House bill contained a provision (sec. 125) that would 
     authorize the Secretary of the Navy, acting as the executive 
     agent for the Secretary of the Air Force and the Commander, 
     U.S. Special Operations Command (USSOCOM), to enter into a 
     multiyear contract, beginning with the fiscal year 2008 
     program year, for the procurement of 211 V-22 tiltrotor 
     aircraft, of which not more than 185 would be in the MV-22 
     configuration and not more than 26 would be in the CV-22 
     configuration.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would allow the 
     Secretary of the Navy, acting as the executive agent for the 
     Secretary of the Air Force and the Commander, USSOCOM, to 
     enter into a multiyear contract, beginning with the fiscal 
     year 2008 program year, for the procurement of V-22 tiltrotor 
     aircraft.
       The conferees expect that the Secretary of the Navy will 
     procure V-22 tiltrotor aircraft at the quantity that was 
     requested in the budget.
     Alternative technologies for future surface combatants (sec. 
         128)
       The House bill contained a provision (sec. 128) that would 
     express the sense of Congress that the Navy should make 
     greater use of alternative technologies, including nuclear 
     power, as a means of vessel propulsion for its future fleet 
     of surface combatants.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would expand the 
     definition of alternative technologies for propulsion of 
     future major surface combatants to include integrated power 
     systems and fuel cells. The amendment would also require that 
     the Secretary of the Navy include integrated power systems, 
     fuel cells, and nuclear power as propulsion alternatives to 
     be evaluated within the analysis of alternatives for future 
     major surface combatant ships.
     Sense of Congress regarding the size of the attack submarine 
         force (sec. 129)
       The House bill contained a provision (sec. 121) that would 
     amend section 5062 of title 10, United States Code, to 
     require the Secretary of Defense to maintain a minimum force 
     structure of 48 operational attack submarines.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would express the 
     sense of Congress that the Secretary of the Navy should take 
     all reasonable effort to accelerate the construction of 
     Virginia class submarines to maintain the attack submarine 
     force structure at not less than 48 submarines and (if the 
     number of attack submarines should fall below 48), to 
     minimize the period the attack submarine force structure 
     remains below 48 vessels.
       The conferees are aware that the earliest possible date to 
     accelerate Virginia class construction to 2 boats per year is 
     2010, which would require advance procurement funding 
     commencing in 2008. Therefore, the conferees direct the 
     Secretary to submit a report to the congressional defense 
     committees with the fiscal year 2008 budget request that 
     would identify the necessary planning and programming 
     required to increase Virginia class construction to 2 boats 
     per year commencing in fiscal year 2010. The report shall 
     consider program cost, shipyard workload impacts, budget 
     implications, and other significant factors that would weigh 
     in the decision process regarding acceleration of attack 
     submarine construction. The report shall also identify the 
     operational impact associated with delaying the increase in 
     attack submarine construction until 2012 in accordance with 
     the program of record.
     Quality control in procurement of ship critical safety items 
         and related services (sec. 130)
       The Senate amendment contained a provision (sec. 809) that 
     would require the Secretary of Defense to prescribe in 
     regulation a quality control policy for the procurement of 
     ship critical safety items and the procurement of 
     modifications, repair, and overhaul of such items.
       The House bill contained a similar provision (sec. 126).
       The House recedes.
       The conferees agree to extend the date for the submission 
     of the Comptroller General's report to the congressional 
     defense committees required by the Senate report accompanying 
     S. 2766 (S. Rept. 109-254) of the John Warner National 
     Defense Authorization Act for Fiscal Year 2007 until February 
     1, 2008.
       The conferees expect the Comptroller General to brief the 
     congressional defense committees on the initial findings of 
     the report by April 1, 2007.

                     Subtitle D--Air Force Programs

     Bomber force structure (sec. 131)
       The House bill contained a provision (sec. 131) that would 
     prohibit the Air Force from retiring any B-52 aircraft, 
     except for the one B-52 aircraft no longer in use by the 
     National Aeronautics and Space Administration for testing. 
     The provision would require the Air Force to maintain a 
     minimum of 44 B-52H combat coded aircraft until the year 2018 
     or until a long-range strike replacement aircraft with equal 
     or greater capability than the B-52H model has attained 
     initial operational capability.
       The Senate amendment contained similar provisions (secs. 
     144-145). Section 144 would allow the Secretary of the Air 
     Force to retire up to 18 B-52H bomber aircraft in fiscal year 
     2007. Section 145 would prevent the obligation or expenditure 
     of funds for the retirement or dismantling of any of the 93 
     B-52H bomber aircraft in service in the Air Force as of June 
     1, 2006, until the Secretary submits to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     a report on the amount and type of bomber force structure 
     required to carry out the National Security Strategy of the 
     United States.
       The Senate recedes with an amendment that would authorize 
     the Secretary to retire up to 18 B-52H bomber aircraft, but 
     maintain not less than 44 combat coded B-52H bomber aircraft, 
     beginning 45 days after the Secretary submits to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives a report prepared by the Institute for 
     Defense Analyses on the amount and type of bomber force 
     structure required to

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     carry out the National Security Strategy of the United 
     States. The amendment would also prohibit retirement of more 
     than 18 B-52s until a long-range strike replacement aircraft 
     with equal or greater capability has attained initial 
     operational capability status or until January 1, 2018, 
     whichever occurs first.
       The conferees direct the Secretary to include in the 
     report:
       (1) the plans to modernize the Air Force bomber fleets;
       (2) the amount and type of bomber force required in 
     executing two overlapping ``swift defeat'' campaigns 
     involving both conventional and strategic nuclear missions;
       (3) a justification of the cost and projected savings 
     associated with any reductions to the B-52H bomber aircraft 
     fleet;
       (4) the life expectancy of each bomber aircraft to remain 
     in the bomber force structure; and
       (5) the capabilities of the bomber force structure that 
     would be replaced, augmented, or superceded by any new bomber 
     aircraft.
       The conferees expect the Secretary to maintain all retired 
     B-52H bomber aircraft, retired in fiscal year 2007 or later, 
     in a condition known as ``Type-1000 storage'' at the Aircraft 
     Maintenance and Regeneration Center.
     Strategic airlift force structure (sec. 132)
       The House bill contained a provision (sec. 132) that would 
     require the Air Force to maintain a minimum strategic airlift 
     force of 299 aircraft beginning in fiscal year 2009, and 
     would repeal section 132 of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     the repeal of any portion of section 132.
     Limitation on retirement of U-2 aircraft (sec. 133)
       The House bill contained a provision (sec. 133) that would 
     preclude the Department of Defense from retiring U-2 aircraft 
     in fiscal year 2007. The provision would permit retirement 
     after fiscal year 2007 only if the Secretary of Defense were 
     able to certify to Congress that the U-2's intelligence, 
     surveillance, and reconnaissance (ISR) capabilities no longer 
     contribute to mitigating any gaps in ISR capabilities 
     identified in the 2006 Quadrennial Defense Review report.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Multiyear procurement authority for F-22A Raptor fighter 
         aircraft (sec. 134)
       The House bill contained a provision (sec. 134) that would 
     authorize the Secretary of the Air Force, beginning in 
     program year 2007, to enter into a 3-year multiyear contract 
     for procurement of up to 60 F-22A Raptor fighter aircraft. 
     The provision would allow the multiyear contract to be 
     entered into only after the Secretary of Defense certifies 
     that the conditions specified in subsection (a) of section 
     2306b of title 10, United States Code, have been met, subject 
     to a 30-day congressional notice-and-wait period.
       The Senate amendment contained similar provisions (secs. 
     146-147) that would prohibit the use of incremental funding 
     for the procurement of F-22A fighter aircraft, authorize the 
     Secretary of the Air Force to enter into a multiyear contract 
     for the procurement of up to 60 F-22A fighter aircraft and up 
     to 120 F119 engines, including not more than 13 spare F119 
     engines, beginning with the fiscal year 2007 program year.
       The Senate recedes with an amendment that would:
       (1) prohibit the use of incremental funding for the 
     procurement of F-22A fighter aircraft;
       (2) require the Secretary of Defense to certify to the 
     congressional defense committees that the multiyear contract 
     is in compliance with each of the conditions specified in 
     subsection (a) of section 2306b, as well as the certification 
     required in subsection (i)(1)(A) of section 2306b;
       (3) require the Secretary, in certifying that the cost 
     savings are substantial, to duly consider the historical cost 
     savings that led to a decision to proceed with a multiyear 
     procurement contract under section 2306b of title 10, United 
     States Code, in the case of previous aviation-related 
     multiyear contracts authorized by law dating back to fiscal 
     year 1982; and
       (4) require the Secretary of Defense to provide a new F-22A 
     cost analysis, prepared by a federally-funded research and 
     development center other than the Institute for Defense 
     Analyses, to the congressional defense committees.
       The conferees expect that the Secretary of Defense's 
     certification of projected multiyear procurement savings will 
     include a consideration of savings, relative to historical 
     experience, that are attributable to economic order quantity 
     investments, number of units procured, length of the 
     multiyear contracts, and cost reduction initiatives.
     Limitation on retirement of KC-135E aircraft during fiscal 
         year 2007 (sec. 135)
       The House bill contained a provision (sec. 135) that would 
     prohibit the Air Force from retiring more than 29 KC-135E 
     aircraft during fiscal year 2007. Beginning in fiscal year 
     2007, the provision would also require the Secretary to 
     maintain all retired KC-135Es, after September 30, 2006, in a 
     condition that would allow recall of that aircraft for future 
     service in the Air Force Reserve, Guard, or regular forces 
     aerial refueling force structure.
       The Senate amendment contained a provision (sec. 143) that 
     would authorize the Secretary to retire up to and including 
     29 Air Force KC-135E aircraft.
       The Senate recedes.
       The conferees expect the Secretary to maintain all KC-135E 
     aircraft, retired in fiscal year 2007 or later, in a 
     condition known as ``Type-1000 storage'' at the Aircraft 
     Maintenance and Regeneration Center.
     Limitation on retirement of F-117A aircraft during fiscal 
         year 2007 (sec. 136)
       The House bill contained a provision (sec. 136) that would 
     limit the number of F-117A aircraft to be retired by the 
     Secretary of the Air Force in fiscal year 2007 to 10 
     aircraft. The provision would also require the Secretary to 
     maintain each F-117A aircraft, retired after September 30, 
     2006, in a condition that would allow recall of that aircraft 
     for future service.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees expect the Secretary to maintain all F-117A 
     aircraft, retired in fiscal year 2007 or later, in a 
     condition known as ``Type-1000 storage'' at the Aircraft 
     Maintenance and Regeneration Center.
     Limitation on retirement of C-130E tactical airlift aircraft 
         (sec. 137)
       The Senate amendment contained a provision (sec. 142) that 
     would prohibit the Secretary of the Air Force from retiring 
     any C-130E/H tactical airlift aircraft in fiscal year 2007.
       The House bill contained no similar provision.
       The House recedes with an amendment that would allow the 
     Secretary to retire up to 51 C-130E tactical airlift 
     aircraft.
       The conferees expect the Secretary to maintain all C-130E 
     aircraft, retired in fiscal year 2007 or later, in a 
     condition known as ``Type-1000 storage'' at the Aircraft 
     Maintenance and Regeneration Center.
     Procurement of Joint Primary Aircraft Training System 
         aircraft after fiscal year 2006 (sec. 138)
       The Senate amendment contained a provision (sec. 141) that 
     would require any Joint Primary Aircraft Training System 
     aircraft procured after fiscal year 2006 to be procured 
     through a contract under part 15 of the Federal Acquisition 
     Regulations (FAR), relating to acquisition of items by 
     negotiated contract, rather than through a contract under 
     part 12 of the FAR, relating to acquisition of commercial 
     items.
       The House bill contained no similar provision.
       The House recedes.
     Minuteman III intercontinental ballistic missiles 
         modernization (sec. 139)
       The Senate amendment contained a provision (sec. 149) that 
     would restrict the Department of Defense from terminating any 
     Minuteman III Intercontinental Ballistic Missile (ICBM) 
     modernization program or withdraw any Minuteman III ICBM from 
     the active force until 30 days after the Secretary of Defense 
     submits to the congressional defense committees a report. The 
     provision would also make available $5.0 million of the 
     amounts available for research, development, test, and 
     evaluation, Air Force, for Remote Visual Assessment for 
     security of the silos housing ICBMs.
       The House bill contained no similar provision.
       The House recedes with an amendment that would place the 
     findings in the statement of managers, and that would reflect 
     the conference outcome of the amounts available for Remote 
     Visual Assessment in the tables of this report in research, 
     development, test, and evaluation, Air Force.
       The conferees make the following findings: (1) In the 
     statement of managers accompanying the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163), 
     the conferees state that the policy of the United States ``is 
     to deploy a force of 500 ICBMs.'' The conferees further note 
     ``that unanticipated strategic developments may compel the 
     United States to make changes to this force structure in the 
     future;'' (2) The Quadrennial Defense Review (QDR) Report of 
     2006 finds that maintaining a robust nuclear deterrent 
     ``remains a keystone of United States national power.'' 
     However, notwithstanding that finding and without providing 
     any specific justification for the recommendation, the QDR 
     recommends reducing the number of deployed Minuteman III 
     ICBMs from 500 to 450 beginning in fiscal year 2007. The QDR 
     also fails to identify what unanticipated strategic 
     developments compelled the United States to reduce the ICBM 
     force structure; and (3) General James Cartwright, Commander, 
     U.S. Strategic Command, testified before the Committee on 
     Armed Services of the Senate that the reduction in deployment 
     of Minuteman III ICBMs is required so that the 50 missiles 
     withdrawn from the deployed force could be used for

[[Page 20973]]

     test assets and spares to extend the life of the Minuteman 
     III ICBMs well into the future. If spares are not modernized, 
     the Air Force may not have sufficient replacement missiles to 
     sustain the force size.

              Subtitle E--Joint and Multi-Service Matters

     Clarification of limitation on initiation of new unmanned 
         aerial vehicle systems (sec. 141)
       The conferees agree to include a provision that would amend 
     section 142 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-162) to explicitly state 
     that the section applies to the procurement of new unmanned 
     aerial vehicle (UAV) systems, and to provide clarifying 
     language for those systems for which an exception is made, 
     including: any UAV system or any component thereof, as 
     described in section 142, if as of January 6, 2006, the UAV 
     system or any component thereof to be procured was otherwise 
     currently under contract or had previously been procured by 
     the Department of Defense, or funds had been appropriated but 
     not yet obligated for the UAV system or any component 
     thereof. The conferees also agree to authorize the 
     Undersecretary of Defense for Acquisition, Technology, and 
     Logistics (AT&L) to delegate this authority within the Office 
     of AT&L.

                   Legislative Provisions Not Adopted

     Reports on Army modularity initiative
       The Senate amendment contained a provision (sec. 113) that 
     would require the Secretary of the Army to submit a report to 
     the congressional defense committees, not later than March 
     15, 2007, on specific costs, funding, and equipment 
     distribution of the Army's modularity initiative. The 
     provision would also require that the Comptroller General 
     conduct an annual review of the modularity initiative and the 
     progress that the Army is making in the equipping of the 
     active and reserve components.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the reporting requirements of this 
     provision are incorporated elsewhere in this report.
     Funding for the Call for Fire Trainer/Joint Fires and Effects 
         Trainer System
       The House bill contained a provision (sec. 115) that would 
     authorize $4.0 million for the procurement of the Call for 
     Fire Trainer/Joint Fires and Effects Trainer System for the 
     Army.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conference outcome is reflected in the tables of this 
     report in Other Procurement, Army, line number 169.
     Air Force program
       The House bill contained a provision (sec. 137) that would 
     authorize an increase of $6.0 million in section 103 for 
     Other Procurement, Air Force for Science Engineering Lab Data 
     Integration at Ogden Air Logistics Center, Utah. This would 
     be offset by an equal decrease in PE 62301E for Information 
     and Communications Technology.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conference outcome is reflected in the tables of this 
     report.
     Multi-spectral imaging capabilities
       The Senate amendment contained a provision (sec. 148) that 
     would: (1) express the sense of the Senate that the Air Force 
     should investigate ways to retain the multi-spectral imaging 
     capabilities of the Senior Year Electro-optical 
     Reconnaissance System (SYERS-2) that would otherwise be lost 
     with the retirement of the U-2 aircraft; and (2) require that 
     the Secretary of the Air Force provide a plan for migrating 
     these multi-spectral capabilities to the Global Hawk unmanned 
     aerial vehicle.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees expect the Secretary to develop a plan for 
     migrating the multi-spectral imaging capability provided by 
     the SYERS-2 capabilities from the U-2 to the Global Hawk, and 
     provide the results of that plan to the congressional defense 
     committees with the submission of the fiscal year 2008 budget 
     request.

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

                              Budget Items

     Research, Development, Test, and Evaluation overview
       The budget request included $73,156.0 million in Research, 
     Development, Test, and Evaluation for the Department of 
     Defense.
       The House bill would authorize $74,054.6 million.
       The Senate amendment would authorize $74,268.1 million.
       The conferees agree to authorize $73,608.0 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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     Research, Development, Test, and Evaluation, Army overview
       The budget request included $10,855.6 million in Research, 
     Development, Test, and Evaluation, Army for the Department of 
     Defense.
       The House bill would authorize $10,925.2 million.
       The Senate amendment would authorize $11,167.0 million.
       The conferees agree to authorize $10,876.6 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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     Research, Development, Test, and Evaluation, Navy overview
       The budget request included $16,912.2 million in Research, 
     Development, Test, and Evaluation, Navy for the Department of 
     Defense.
       The House bill would authorize $17,377.8 million.
       The Senate amendment would authorize $17,459.8 million.
       The conferees agree to authorize $17,383.9 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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     Sea Fighter (X-Craft)
       The House bill would authorize $25.7 million in PE 63123N 
     for modifications to Sea Fighter to improve the ship's 
     survivability, command and control, armament, and other ship 
     systems to make Sea Fighter an operationally deployable 
     asset.
       The Senate amendment contained no similar funding.
       The conferees agree to authorize $23.0 million in PE 63123N 
     for Sea Fighter modifications.
       Of the amount authorized, the conferees direct the 
     Secretary of the Navy to utilize the additional funding to: 
     (1) improve aviation capabilities; (2) improve damage control 
     and firefighting capabilities; (3) improve the quality of and 
     increase the capacity of berthing and messing facilities for 
     12 additional crew; (4) provide command and control upgrades; 
     (5) add weapons (offensive and defensive); and (6) make 
     topside changes to reduce radiation hazards. The conferees 
     expect the Secretary to utilize Sea Fighter in support of 
     Navy operations and to develop and validate operational 
     concepts for littoral warfare.
       The conferees are aware that on September 6, 2006, Sea 
     Fighter sustained significant damage while operating off of 
     the Pacific coast. The conferees expect the Secretary to make 
     all repairs necessary to restore Sea Fighter to previous 
     capability and make available for operational use.
     Research, Development, Test, and Evaluation, Air Force 
         overview
       The budget request included $24,396.8 million in Research 
     Development, Test, and Evaluation, Air Force for the 
     Department of Defense.
       The House bill would authorize $24,810.0 million.
       The Senate amendment would authorize $23,970.9 million.
       The conferees agree to authorize $24,236.0 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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     Transformational satellite communications
       The budget request included $867.0 million in PE 63845F for 
     transformational satellite communications (TSAT).
       The House bill would authorize a decrease of $80.0 million 
     in PE 63845F for TSAT.
       The Senate amendment would authorize a decrease of $70.0 
     million in PE 63845F for TSAT.
       The conferees agree to authorize $767.0 million in PE 
     63845F for TSAT, a decrease of $100.0 million due to 
     unexecutable growth in the program budget.
       While fully supportive of the restructured TSAT program, 
     the conferees note that the budget request for fiscal year 
     2007 represents a 100 percent increase over fiscal year 2006 
     appropriated amount of $429.0 million. The Government 
     Accountability Office questions whether the contractors 
     associated with the space segment of the TSAT program will be 
     able to increase development activities to the requested 
     fiscal year 2007 budget level, hence the recommended 
     reduction.
       The conferees direct the Secretary of the Air Force to 
     submit a report to the congressional defense committees by 
     February 15, 2007, explaining what actions the Air Force has 
     taken to address the remaining concerns raised by the TSAT 
     Program Review Group and the Government Accountability 
     Office, including: (1) the need to significantly refine 
     requirements so that program content can be matched to budget 
     constraints, and how the Department plans to control 
     requirements to prevent problems associated with 
     ``requirements creep''; (2) the need to adequately staff the 
     TSAT program office with experienced space acquisition 
     professionals; (3) the status of refining key performance 
     parameters so they provide specificity and validation 
     metrics; and (4) the implications for other programs, such as 
     Space Radar and Future Combat System, of a less capable 
     initial block of TSAT satellites.
     Space Radar
       The budget request included $266.4 million in PE 63858F for 
     Space Radar (SR) program.
       The House bill would authorize a decrease of $30.0 million 
     in PE 63858F.
       The Senate amendment would authorize a decrease of $66.4 
     million in PE 63858F.
       The conferees agree to authorize $200.0 million in PE 
     63858F, a decrease of $66.4 million, and recommend that the 
     remaining funds be directed toward technology development, 
     system engineering, and concept definition that assumes a 
     single SR system that will meet joint requirements and employ 
     a joint concept of operations with the intelligence 
     community. The conferees are aware that the SR program is 
     being restructured, and may benefit from an incremental, 
     block approach similar to that chosen for the 
     Transformational Satellite (TSAT) program. The conferees 
     would welcome such an approach, however, until further 
     definition of the program is provided, the conferees do not 
     believe it is prudent to move beyond technology development, 
     systems engineering, and concept definition activities. 
     Further definition would include an agreed upon joint 
     requirements document.
       Conferees direct the Secretary of Defense and the Director 
     of National Intelligence (DNI) to submit a joint report to 
     the congressional defense and intelligence committees by 
     March 1, 2007, containing the following elements: (1) a 
     description of the respective roles and responsibilities of 
     the intelligence community and the Department of Defense with 
     respect to the development of the SR, including an updated 
     Memorandum of Agreement between the Secretary and the DNI; 
     (2) the process by which the intelligence community and the 
     Department coordinate joint development efforts and 
     requirements definition; (3) the plans for achieving a cost-
     share agreement between the intelligence community and the 
     Department for the development and acquisition of a SR 
     capability; and (4) a commitment from the Secretary and the 
     DNI that SR will be a single system responsive to the 
     requirements of each organization.
       The conferees also direct the Secretary, in consultation 
     with the DNI, to submit a report to the congressional defense 
     committees by January 1, 2007, addressing the following: (1) 
     the scope of the space radar architecture, including the 
     system's interactions with other intelligence, surveillance, 
     and reconnaissance platforms providing similar capability, as 
     well as interactions with TSAT or alternative systems for 
     processing and transmitting space radar data to other 
     military applications; (2) the concept of operations, 
     including how space radar data could be used to support 
     defense and intelligence missions, and models for tasking, 
     processing, exploitation, and dissemination to end users; (3) 
     the acquisition approach that could be pursued by the SR 
     program, including the identification of key technologies 
     and their expected maturity at the time of program 
     initiation; and (4) the schedule for meeting a realistic 
     launch date, potential risks to that schedule, and 
     potential risks of not meeting that launch date.
     Combatant commanders' integrated command and control system
       The budget request included $50.9 million in PE 35906F for 
     the combatant commanders' integrated command and control 
     system (CCIC2S).
       The House bill would authorize no funds in PE 35906F.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $16.3 million in PE 35906F 
     for the CCIC2S program, a decrease of $34.6 million.
       The conferees believe that the capability to warn against 
     air, missile, and space attacks is critical to our national 
     security and homeland defense, and support the necessary 
     modernization and integration of the command and control 
     systems at Cheyenne Mountain, Colorado for mission execution 
     by North American Aerospace Defense Command, U.S. Northern 
     Command, and U.S. Strategic Command.
       In a July 2006 report on the CCIC2S program, the Government 
     Accountability Office (GAO) found that poor past performance, 
     inadequate management and oversight, and changing 
     requirements resulted in significant cost overruns and an 
     undefined delivery schedule. The report further noted that 
     most mission critical capabilities will not be delivered in 
     fiscal year 2006, as initially planned. While the missile 
     warning mission is partially complete, no work has been 
     completed on the space mission and estimated completion dates 
     have not been determined. GAO recommended that eight actions 
     be taken to improve management and oversight of the project.
       The conferees believe that many of these recommendations 
     are being addressed, but remain concerned about the 
     Department's prioritization of and commitment to the CCIC2S 
     program, as evidenced by its continued reductions in program 
     funding. The conferees further believe that continued 
     investments in a development program without a defined 
     schedule and final cost risks further cost overruns and 
     schedule delays. It is therefore prudent to reassess program 
     requirements, cost, and schedule; and determine program 
     affordability within the context of the Department's 
     priorities, other acquisition programs, and long-range 
     investment plans, prior to continuing with further 
     development.
       The conferees direct the Secretary of Defense to maintain 
     essential operation and maintenance activities, and limit 
     developmental activities to the completion of the missile 
     warning system. In addition, the conferees direct the 
     Secretary of Defense to submit a report by March 1, 2007, to 
     the congressional defense committees that addresses all eight 
     of the GAO recommended actions including an affordability 
     assessment, an economic analysis, and an independent life 
     cycle cost estimate.
       The conferees would like to be clear that the reduction to 
     the amount requested for the CCIC2S program should not be 
     construed as a lack of support for the program, but rather a 
     reflection of continuing concerns related to the CCIC2S 
     acquisition approach. The conferees expect that future budget 
     requests reflect an executable program with a defined 
     schedule and commitment of adequate resources.
     Research, Development, Test, and Evaluation, Defense-wide 
         overview
       The budget request included $20,809.9 million in Research, 
     Development, Test, and Evaluation, Defense-wide for the 
     Department of Defense.
       The House bill would authorize $20,760.0 million.
       The Senate amendment would authorize $21,488.9 million.
       The conferees agree to authorize $20,930.0 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 21023]]

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     TH29SE06.131
     


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     TH29SE06.132
     


[[Page 21032]]

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     TH29SE06.134
     


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[[Page 21035]]

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[[Page 21036]]

     TH29SE06.137
     


[[Page 21037]]

     National Defense Education Program
       The budget request included $19.5 million in PE 61120D8Z 
     for the National Defense Education Program (NDEP). The House 
     bill would authorize the budget request.
       The Senate amendment would authorize an increase of $5.0 
     million in PE 61120D8Z.
       The conferees agree to authorize $19.5 million in PE 
     61120D8Z, specifically for Science, Mathematics, and Research 
     for Transformation scholarships and for other authorized NDEP 
     activities; but authorize no funding for institutional 
     scholarships, fellowships, and traineeships. The conferees 
     recommend that the Department provide information on the need 
     for this activity along with a request for legislative 
     authority to conduct it.
     Printed circuit board supply chain
       The budget request included $23.4 million in PE 63712S for 
     generic logistics research and development technology 
     demonstrations.
       The House bill would authorize an increase of $10.0 million 
     in PE 63712S for the emerging critical interconnection 
     technology program to address reliable printed circuit board 
     manufacturing in the United States.
       The Senate amendment would authorize an increase of $4.0 
     million in PE 63712S for the emerging critical 
     interconnection technology program.
       The conferees agree to authorize an increase of $4.3 
     million in PE 63712S for the emerging critical 
     interconnection technology program.
       The conferees direct the Secretary of Defense to submit to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives a report on the implementation of the 
     recommendations of the National Research Council (NRC) 
     Committee on Manufacturing Trends in Printed Circuit Board 
     Technology. This report should be submitted not later than 9 
     months after the date of the enactment of this Act. The 
     report should, at a minimum, provide an analysis of each 
     finding and a detailed description of the response by the 
     Department of Defense to each recommendation of the NRC 
     Committee, including a schedule with specific milestones and 
     required funding for completing the implementation of the 
     recommendation or the reasons for a decision not to implement 
     the recommendation.
     Joint modeling, simulation, and experimentation
       The budget request included $115.7 million in PE 63828D8Z 
     for joint experimentation, modeling, and simulation 
     technologies.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $10.0 
     million in PE 63828D8Z to further develop joint, interagency, 
     and coalition modeling, simulation, and experimentation.
       The conferees agree to authorize the budget request and an 
     increase of $8.0 million in PE 63828D8Z in order to fund 
     joint effects-based modeling and simulation that effectively 
     incorporates political, economic, infrastructure, 
     information, societal, and diplomatic factors, as well as 
     coalition warfare, at the tactical level of operations.
       As mentioned in the Senate report accompanying S. 2766 (S. 
     Rept. 109-254) of the National Defense Authorization Act for 
     Fiscal Year 2007, the 2006 Quadrennial Defense Review (QDR) 
     Report noted that the Department of Defense must shift its 
     emphasis from Department-centric approaches toward 
     interagency solutions that incorporate all elements of 
     national power. Cooperation across the Federal Government is 
     essential and can be facilitated efficiently by enhanced 
     modeling, simulation, and experimentation. Of the amount 
     authorized, the conferees recommend that $4.0 million be 
     utilized to carry out an East Coast Asymmetric Warfare 
     Initiative (AWI). The East Coast AWI is designed to enhance 
     our nation's coordination and response capabilities to a 
     Weapon of Mass Destruction (WMD) event through a complex, 
     scenario-based exercise utilizing the experience and unique 
     capabilities of the Navy's Center for Asymmetric Warfare and 
     involving the Commonwealth of Virginia and the State of 
     Maine. This multi-agency exercise involving the Department of 
     Defense, the Department of Homeland Security, other Federal 
     agencies, State and local government entities, as well as the 
     private sector will greatly enhance U.S. response capability 
     to a WMD event and provide a template for future exercises 
     designed to further strengthen our nation's ability to 
     respond to a WMD event.
     Ballistic Missile Defense
     Ground-based Midcourse Ballistic Missile Defense
       The budget request included $2.9 billion in PE 63882C for 
     the Ballistic Missile Defense midcourse defense segment to 
     cover continued development, ground and flight testing, 
     fielding, and support for the Ground-based Midcourse Defense 
     (GMD) system.
       The House bill would authorize a decrease of $35.8 million 
     in PE 63882C, which includes the elimination of all funding, 
     $55.8 million, for the third GMD site in Europe.
       The Senate amendment would authorize an increase of $245.0 
     million in PE 63882C.
       The conferees agree to authorize $3.1 billion in PE 63882C, 
     an increase of $225.0 million for the BMD midcourse defense 
     segment. The increase is directed as follows: $60.0 million 
     for efforts to accelerate the ability of the GMD system to 
     conduct concurrent test and operations; $140.0 million for 
     enhanced testing and to increase the pace of GMD flight 
     testing; and $25.0 million for advanced procurement of an 
     additional six flight test missiles. The Missile Defense 
     Agency (MDA) is expected to budget for the completion of 
     these tasks over fiscal years 2008 to 2011.
       The conferees also agree to provide $32.8 million for the 
     third GMD site in Europe, a decrease of $23.0 million, and 
     note that a ground-based interceptor site in Europe could 
     provide future protection for the United States and Europe 
     against longer-range ballistic missiles launched from the 
     Middle East. The conferees also direct the Secretary of 
     Defense to report to the congressional defense committees 
     within 30 days of the completion of planned intercept tests 
     FTG-04 and FTG-05. The report should include an assessment of 
     whether the test objectives for these intercept tests have 
     been met. In the event that these test objectives are not 
     met, the Secretary should provide in this report a 
     determination as to whether the remaining block 2008 funds 
     should be reallocated for additional testing of the block 
     2004/2006 configuration.
     Aegis Ballistic Missile Defense
       The budget request included $1.0 billion in PE 63892C for 
     the sea-based Aegis Ballistic Missile Defense system.
       The House bill would authorize an increase of $40.0 million 
     in PE 63892C.
       The Senate amendment would authorize an increase of $100.0 
     million in PE 63892C.
       The conferees agree to authorize $1.1 billion in PE 63892C, 
     an increase of $100.0 million. The increase is directed as 
     follows: $10.0 million for continued S-band advanced radar 
     algorithm work; $20.0 million for Aegis BMD signal processor, 
     2-color seeker development, and acceleration of the open 
     architecture program; and $70.0 million to support the 
     procurement of 24 additional SM-3 block 1B missiles over 
     fiscal years 2008 to 2011. MDA is expected to budget for the 
     completion of these tasks over fiscal years 2008 to 2011.
       The conferees are aware that the MDA and the Department of 
     the Navy are exploring the feasibility of modifying 100 SM-2 
     Block IV missiles to obtain a near-term sea-based terminal 
     ballistic missile defense capability starting in fiscal year 
     2007 with conversion of all missiles completed by the end of 
     fiscal year 2009. According to briefings by the MDA and 
     Department of the Navy, such a capability could afford 
     protection for ships and other critical assets against short-
     range ballistic missiles in the Scud A/B class. This proposed 
     development would cost approximately $130.0 million over 
     fiscal years 2007 to 2009, with the Navy share estimated at 
     approximately $20.0 million in fiscal year 2007. The 
     conferees, while supportive of efforts to provide near-term 
     missile defense capability, require further information 
     before authorizing this development effort to proceed. 
     Therefore, the conferees encourage the Department of Defense 
     to submit to Congress a reprogramming request in fiscal year 
     2007 to pursue a sea-based terminal missile defense 
     capability, should such a step be consistent with Department 
     requirements and resource constraints. If submitted, the 
     reprogramming request should be accompanied by documentation 
     that: (1) explains the need for such a capability; (2) 
     indicates Department of the Navy endorsement of this program; 
     and (3) includes a Navy-MDA cost-share agreement through 
     completion of the effort.
     Arrow Ballistic Missile Defense System
       The budget request included $1.0 billion in PE 63881C for 
     Ballistic Missile Defense Terminal Defense Segment, of which 
     $13.0 million was for Arrow missile production and $56.2 
     million was for the Arrow System Improvement Program.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $8.0 
     million for the Arrow System Improvement Program and an 
     increase of $52.0 million for Arrow co-production in PE 
     63881C.
       The conferees agree to authorize a total of $63.0 million 
     in PE 63881C for Arrow co-production, an increase of $50.0 
     million.
     Kinetic Energy Interceptor
       The budget request included $405.5 million in PE 63886C for 
     Ballistic Missile Defense System Interceptors for continued 
     development of the Kinetic Energy Interceptor.
       The House bill would authorize a decrease of $100.0 million 
     in PE 63886C.
       The Senate amendment would authorize a decrease of $200.0 
     million in PE 63886C.
       The conferees agree to authorize $245.5 in PE 63886C, a 
     decrease of $160.0 million. The conferees further recommend 
     that no additional funds be reprogrammed into this program 
     element over the course of fiscal year 2007.
     Space Tracking and Surveillance System
       The budget request included $390.6 million in PE 63893C for 
     the Space Tracking and Surveillance System.
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize $223.6 million in PE 
     63893C, a decrease of $67.0 million.

[[Page 21038]]


     Products
       The budget request included $506.8 million in PE 63889C for 
     Ballistic Missile Defense (BMD) Products.
       The House bill and would authorize the budget request.
       The Senate amendment would authorize a decrease of $40.0 
     million in PE 63889C.
       The conferees agree to authorize $478.8 million in PE 
     63889C, a decrease of $28.0 million.
     Systems Core
       The budget request included $473.1 million in PE 63890C for 
     Ballistic Missile Defense Systems Core.
       The House bill would authorize a decrease of $10.0 million 
     in PE 63890C.
       The Senate amendment would authorize a decrease of $40.0 
     million in PE 63890C.
       The conferees agree to authorize $348.1 million in PE 
     63890C, a decrease of $25.0 million.
     Special Programs
       The budget request included $374.5 million in PE 63891C for 
     Special Programs--MDA.
       The House bill would authorize the budget request.
       The Senate amendment would authorize a decrease of $20.0 
     million in PE 63891C.
       The conferees agree to authorize $348.1 million in PE 
     63891C, a decrease of $26.4 million.
     Multiple Kill Vehicle
       The budget request included $165.0 million in PE 63894C for 
     Multiple Kill Vehicle.
       The House bill would authorize a decrease of $65.0 million 
     in PE 63894C.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $125.0 million in PE 
     63894C, a decrease of $40.0 million, and note the importance 
     of this program as a future spiral improvement for the 
     ground-based interceptor.
     Operationally responsive space capabilities
       The budget request included $20.4 million in PE 65799D8Z 
     for the Office of Force Transformation (OFT) in the Office of 
     the Secretary of Defense, but included no funding for 
     operationally responsive space capabilities.
       The House bill would authorize the budget request in PE 
     65799D8Z, and would authorize an increase of $20.0 million in 
     PE 64857F for operationally responsive space capabilities.
       The Senate amendment would authorize an increase of $25.0 
     million in PE 65799D8Z for development of operationally 
     responsive space capabilities.
       The conferees agree to authorize $48.9 million in PE 
     65799D8Z, an increase of $23.5 million for operationally 
     responsive space capabilities. Of this amount, $20.0 million 
     is for payloads, satellite busses, integration, command and 
     control, and joint warfighter experimentation; and $3.5 
     million is to support adapting existing airborne 
     reconnaissance sensor capabilities for use in responsive 
     space missions.
       The conferees expect future operationally responsive space 
     budget requests would be in support of the Operationally 
     Responsive Space Program Office, to the extent applicable, 
     pursuant to guidance in the Operationally Responsive Space 
     provision (sec 913) of this Act.
     Operational Test and Evaluation, Defense overview
       The budget request included $181.5 million in Operational 
     Test and Evaluation, Defense for the Department of Defense.
       The House bill would authorize $181.5 million.
       The Senate amendment would authorize $181.5 million.
       The conferees agree to authorize $181.5 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 21039]]

     TH29SE06.138
     


[[Page 21040]]

                        Item of Special Interest

     Proposed realignment of Air Force test and evaluation 
         facilities
       The conferees are concerned about a proposed realignment of 
     Air Force test and evaluation facilities and personnel that 
     could have significant impacts beginning in fiscal year 2007 
     and continuing into the out years. The conferees believe that 
     additional information and analysis of the impacts of the 
     proposed action is required before any implementation of the 
     plan proceeds. The conferees direct the Secretary of the Air 
     Force, jointly with the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics (USD (AT&L)), and the 
     Director of the Test Resource Management Center (TRMC) to 
     submit separate reports to the congressional defense 
     committees analyzing the proposed actions.
       The impact report prepared by the Air Force and USD (AT&L) 
     should include an analysis of the following for proposed 
     personnel relocations and for the facilities proposed closure 
     or realignment: (1) missions served; (2) Department of 
     Defense acquisition programs affected, including an analysis 
     of impacts on risk, cost, and schedule; (3) costs to the Air 
     Force and to the Department, including costs to close or 
     realign test and evaluation capabilities and reconstitute or 
     acquire required capabilities, including personnel, contract 
     termination, military construction, housing costs, 
     installation operations and maintenance, and other costs; (4) 
     a detailed analysis and disclosure of the estimated net cost 
     or savings to the Department derived from the actions and 
     payback period of such actions; (5) developmental and 
     operational test programs impacted; (6) the extent to which 
     the recommendations of the 2005 Defense Base Closure and 
     Realignment Commission support or contradict the findings of 
     this analysis; (7) impacts on the test and evaluation 
     workforce and on the ability to recruit and retain skilled 
     personnel at affected facilities; and (8) alternatives 
     considered. The impact report should also include a joint 
     statement by the Secretary of the Air Force and the USD 
     (AT&L) on changes, if any, to the proposed course of action 
     as a result of the conclusions of the analysis, subsequent 
     actions required as a result of the analysis, and an 
     explanation of the criteria used to determine the level of 
     acceptable risk to the Department in proceeding with the 
     proposed action.
       The TRMC report should include an assessment of how the 
     proposed closures or realignments of Air Force research, 
     development, test, and evaluation activities may impact the 
     strategic plan for Department of Defense test and evaluation 
     resources, as required by section 196 of title 10, United 
     States Code. The assessment should focus on whether the Air 
     Force test and evaluation facilities, resources, and budgets 
     will meet the test and evaluation requirements and satisfy 
     performance measures included in the strategic plan.
       The conferees direct the Secretary of the Air Force to 
     undertake no action to realign or close any test and 
     evaluation activities, other than those specifically included 
     in the final decisions of the 2005 Defense Base Realignment 
     and Closure round, until 60 days after the two required 
     reports are received by the congressional defense committees.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (sec. 201)
       The House bill contained a provision (sec. 201) that would 
     authorize the recommended fiscal year 2007 funding levels for 
     the Research, Development, Test, and Evaluation accounts for 
     the Army, Navy, Marine Corps, Air Force, Defense-wide 
     activities, and the Director of Operational Test and 
     Evaluation.
       The Senate amendment contained a similar provision (sec. 
     201).
       The conference agreement includes this provision.
     Amount for defense science and technology (sec. 202)
       The House bill contained a provision (sec. 202) that would 
     authorize $11.7 billion for Department of Defense science and 
     technology programs in fiscal year 2007.
       The Senate amendment contained a similar provision (sec. 
     202) that would authorize $11.5 billion.
       The conferees agree to authorize $11.7 billion for 
     Department of Defense science and technology programs in 
     fiscal year 2007.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     Acquisition of, and independent cost analyses for, the Joint 
         Strike Fighter propulsion system (sec. 211)
       The Senate amendment contained a provision (sec. 254) that 
     would direct the Secretary of Defense to provide for the 
     development of the propulsion system for the Joint Strike 
     Fighter (JSF) through either: (1) the continuing development 
     and sustainment of two interchangeable propulsion systems by 
     two separate contractors throughout the life cycle of the 
     aircraft, or (2) a one-time firm-fixed-price contract for a 
     selected propulsion system for the life cycle of the aircraft 
     following the initial service release of the aircraft 
     propulsion system in fiscal year 2008.
       The House bill contained no similar provision.
       The House recedes with an amendment that would:
       (1) require the Secretary to provide for the continuing 
     development and sustainment of two interchangeable propulsion 
     systems by two separate contractors throughout the life cycle 
     of the aircraft;
       (2) prohibit the Secretary from carrying out any 
     modification to the development and sustainment of two 
     interchangeable engines until:
       (a) the Secretary notifies the congressional defense 
     committees of any modification to the acquisition program for 
     the JSF propulsion systems,
       (b) three independent, comprehensive, and detailed cost 
     analyses have been submitted, and
       (c) funds are appropriated for that purpose pursuant to an 
     authorization of appropriations;
       (3) require independent cost analyses be completed by the 
     Secretary, acting through the Cost Analysis Improvement Group 
     of the Office of the Secretary of Defense, the Comptroller 
     General, and a federally-funded research and development 
     center, which would be selected by the Secretary, and be 
     submitted to the congressional defense committees not later 
     than March 15, 2007; and
       (4) include a one-time firm-fixed-price contract as part of 
     the independent cost analyses.
     Expansion and extension of authority to award prizes for 
         advanced technology achievements (sec. 212)
       The Senate amendment contained a provision (sec. 252) that 
     would extend the authority to award prizes for advanced 
     technology achievements to September 30, 2011. The provision 
     would also elevate the authority to the Director, Defense 
     Research and Engineering (DDRE) and expand the authority to 
     include the military departments.
       The House bill contained a similar provision (sec. 212) 
     that would extend the authority to September 30, 2010, but 
     would not elevate or expand the authority.
       The House recedes with an amendment that would extend the 
     authority to September 30, 2010, and would suspend the 
     authority for failure to provide the report as required in 
     subsection (e) of section 2374a of title 10, United States 
     Code.
       The conferees recognize the efforts of the Defense Advanced 
     Research Projects Agency (DARPA) to utilize the prize 
     authority to spur innovation and to engage nontraditional 
     organizations in defense research. The amendment would 
     continue to allow use of the prize authority by DARPA and 
     other components under DDRE.
       The conferees have been informed that DARPA has 
     independently decided to withdraw its support of the X PRIZE 
     Foundation's 2006 space technology competitions, but plans to 
     continue work on the advancement of unmanned ground vehicle 
     technology through the Urban Challenge competition. The 
     conferees note that both activities may hold promise for the 
     development of technologies to support defense missions, and 
     therefore encourage the DDRE to evaluate potential benefits 
     of such activities and the use, if appropriate, of the 
     authority provided by this section. The conferees believe 
     that such evaluations could be conducted in a manner that 
     ensures seamless planning and execution for existing 
     programs.
     Defense Acquisition Challenge Program extension, enhancement, 
         and modification to address critical cost growth 
         threshold breaches in major defense acquisition programs 
         (sec. 213)
       The House bill contained a provision (sec. 213) that would 
     permanently extend the Defense Acquisition Challenge Program 
     (DACP), and protect the identity of those submitting 
     challenge proposals during the proposal evaluation process. 
     The House bill also contained a provision (sec. 805) that 
     would: (1) modify section 2359b of title 10, United States 
     Code, to establish requirements for a DACP proposal 
     solicitation in the event of a critical cost growth threshold 
     breach for a major defense acquisition program, and (2) 
     modify section 2433 of title 10, United States Code, to 
     require that, in the event of a critical cost growth 
     threshold breach, the Secretary of Defense perform certain 
     additional assessments, certifications, and reporting.
       The Senate amendment contained a provision (sec. 802) that 
     would extend the DACP through 2012 and would provide the 
     Under Secretary of Defense for Acquisition, Technology, and 
     Logistics (USD (AT&L)) with the authority to establish 
     procedures to ensure that the program is focused on small and 
     medium-sized businesses, and nontraditional defense 
     contractors.
       The Senate recedes with an amendment that would consolidate 
     the three provisions into a single provision. The amendment 
     would: (1) modify section 2433 to require the Secretary to 
     perform certain assessments; (2) require USD (AT&L), in 
     coordination with service acquisition executives, to evaluate 
     current challenge proposal transition initiatives and 
     identify additional incentives or authorities; (3) establish 
     procedures to give priority to proposals from nontraditional 
     defense contractors; (4) extend the DACP until September 30, 
     2012; and (5) clarify amendments to section 2359b regarding 
     requirements for challenge proposal solicitations

[[Page 21041]]

     for acquisition programs that experience critical cost growth 
     threshold breaches, funding guidelines for such challenge 
     proposals, the procedures for disposition of proposals that 
     receive favorable preliminary reviews but unfavorable full 
     evaluations, and measures to ensure confidentiality of 
     challenge proposal submissions.
     Future Combat Systems milestone review (sec. 214)
       The House bill contained a provision (sec. 214) that would 
     require the Secretary of Defense to conduct a Future Combat 
     Systems (FCS) milestone review, following the preliminary 
     design review, by September 30, 2008, and to submit a report 
     on the results of the FCS milestone review not later than 
     February 13, 2009.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would change the 
     submission date of the required report to 120 days after 
     completion of the preliminary design review of FCS. Although 
     the amendment withholds the obligation of FCS procurement 
     funds beginning in fiscal year 2009 until the Secretary 
     submits the required report, the amendment allows the 
     Department of the Army to obligate funds for the non-line-of-
     sight cannon and for the costs attributable to insertion of 
     new technology into the current force, if the insertion is 
     approved by the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics. The conferees strongly endorse a 
     program strategy that will enable early spin out of FCS 
     technologies into the current force, a top priority of the 
     Chief of Staff of the Army.
     Dedicated amounts for implementing or evaluating Navy 
         shipbuilding technology proposals under Defense 
         Acquisition Challenge Program (sec. 215)
       The House bill contained a provision (sec. 216) that would 
     require the Secretary of Defense to provide an additional 
     $4.0 million for the Defense Acquisition Challenge Program to 
     evaluate or implement challenge proposals specifically for 
     the DD(X) next-generation destroyer and the CVN-21 next-
     generation aircraft carrier programs.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     up to $4.0 million to evaluate or implement challenge 
     proposals that relate to technology directly contributing to 
     combat systems and open architecture design for Navy ship 
     platforms.
     Independent estimate of costs of the Future Combat Systems 
         (sec. 216)
       The Senate amendment contained a provision (sec. 211) that 
     would withhold $500.0 million from the amount of funds 
     authorized to be appropriated for the development of the 
     Future Combat Systems (FCS) until the Secretary of Defense 
     submits a report of an independent cost estimate for FCS 
     conducted by a federally-funded research and development 
     center.
       The House bill contained no similar provision.
       The House recedes with an amendment that would remove the 
     withhold of $500.0 million and change the submission date of 
     the required report to April 1, 2007.
       The conferees are disappointed with the response by the 
     Department of Defense to reports required in section 211 of 
     the Ronald W. Reagan National Defense Authorization Act for 
     Fiscal Year 2005 (Public Law 108-375) and section 213 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163). The conferees expect the Department to 
     share the details of the independent cost estimate prepared 
     by the Department's Cost Analysis Improvement Group (CAIG) 
     with the organization selected to conduct the independent 
     cost estimate.
       The conferees understand that the Army disagrees with the 
     analysis by CAIG of the Army's FCS cost estimate. It would be 
     useful for the organization selected to perform the 
     independent cost estimate to review and comment on the 
     discrepancies between the cost estimates of the Army and the 
     CAIG.
     Funding of defense science and technology programs (sec. 217)
       The Senate amendment contained a provision (sec. 212) that 
     would extend the funding objective for science and technology 
     programs, established in section 212 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 107-107), 
     to fiscal year 2012, and would require submission of two 
     reports if the Department of Defense fails to meet the 
     outlined funding objective in any single fiscal year budget 
     request.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make 
     technical changes and would consolidate submission of the 
     required information along with budget requests.
     Hypersonics development (sec. 218)
       The Senate amendment contained a provision (sec. 213) that 
     would direct the Secretary of Defense to establish a joint 
     technology office (JTO) to coordinate and integrate 
     hypersonics research, development, and demonstration programs 
     and budgets.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify 
     certain responsibilities of the JTO and ensure consideration 
     of test and evaluation resources and facilities in 
     hypersonics programs and plans.
       The conferees expect the Department of Defense to fully 
     utilize existing management and coordination functions in 
     fulfilling the requirements of this section and to consider 
     virtual structures and organizations, as appropriate, to 
     minimize any administrative burdens associated with a new JTO 
     while maximizing program outcomes.
     Report on program for replacement of nuclear warheads on 
         certain Trident sea-launched ballistic missiles with 
         conventional warheads (sec. 219)
       The Senate amendment contained a provision (sec. 214) that 
     would prohibit $95.0 million of the funds authorized to be 
     appropriated for the Conventional Trident Modification (CTM) 
     program from being obligated or expended until the Secretary 
     of Defense, in consultation with the Secretary of State, 
     submits a report to the congressional defense committees.
       The House bill contained no similar provision, but would 
     authorize $30.0 million in Research, Development, Test, and 
     Evaluation.
       The House recedes with an amendment that would strike the 
     limitation on funding while maintaining the reporting 
     requirement. The conference outcome with respect to funding 
     for the CTM program is reflected in the tables of this report 
     under Research, Development, Test, and Evaluation, Navy; 
     Weapons Procurement, Navy; and Other Procurement, Navy.
       The conferees continue to believe it is important for the 
     Department of Defense to explore a wide range of capabilities 
     for responding rapidly to emerging threats to the United 
     States and its strategic interests. The conferees encourage 
     the Department to expedite consideration of mid-term options 
     for prompt global strike, and to propose to the congressional 
     defense committees as soon as possible those activities that 
     may be required during fiscal year 2007 to make progress 
     toward developing those concepts the Congress and the 
     Department deem appropriate, including reprogramming actions.

                  Subtitle C--Missile Defense Programs

     Fielding of ballistic missile defense capabilities (sec. 221)
       The House bill contained a provision (sec. 221) that would 
     allow funds authorized to be appropriated for fiscal years 
     2007 and 2008 for research, development, test, and evaluation 
     for the Missile Defense Agency to be used for the development 
     and fielding of ballistic missile defense capabilities.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Limitation on use of funds for space-based interceptor (sec. 
         222)
       The House bill contained a provision (sec. 222) that would 
     prevent the Department of Defense from obligating funds for 
     the testing or deployment of a space-based interceptor 
     program until 90 days after submitting a report to Congress 
     describing the program and its national security 
     implications.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Policy of the United States on priorities in the development, 
         testing, and fielding of missile defense capabilities 
         (sec. 223)
       The Senate amendment contained a provision (sec. 232) that 
     would make it the policy of the United States to accord a 
     priority within the missile defense program to the 
     development, testing, fielding, and improvement of effective 
     near-term missile defense capabilities, including the Ground-
     based Midcourse Defense (GMD) system, the Aegis Ballistic 
     Missile Defense (BMD) system, additional Patriot PAC-3 units, 
     the Terminal High Altitude Area Defense (THAAD) system, and 
     sensors based on land, sea, and in space that support these 
     interceptor systems.
       The House bill contained no similar provision.
       The House recedes with an amendment that would update the 
     findings to take into account the North Korean ballistic 
     missile test launches of July 2006.
       On July 4, 2006, the United States detected the launch of 
     six ballistic missiles from North Korea, followed by an 
     additional launch on July 5, 2006. These missiles varied in 
     range from the short-range Scud to the medium-range No-Dong 
     and included the firing of a Taepo-Dong 2 missile, which 
     intelligence agencies believe could eventually reach United 
     States territory. The conferees believe these North Korean 
     launches, as well as activities related to the development 
     and testing of Iranian ballistic missiles, reinforce 
     congressional direction provided to the Department of Defense 
     over the past 2 years to focus its efforts on those initial 
     missile defense systems that are now providing, or starting 
     to provide, a measure of protection for the United States and 
     its deployed forces.
       The Department's excessive focus on and investment in the 
     development of long-term technologies has made it difficult 
     for the Missile Defense Agency to successfully develop, test, 
     and field--in sufficient numbers--the initial missile defense 
     capabilities necessary to address the current threat. For 
     example, the Department has reduced

[[Page 21042]]

     planned deliveries of the highly successful sea-based 
     Standard-Missile 3 from 120 to 96 over the future years 
     defense program and is programming to procure only 48 THAAD 
     missiles. Also, the Department is not funding enough PAC-3 
     missiles to meet the needs of combatant commanders in areas 
     where forward deployed U.S. forces are currently within range 
     of short- and medium-range ballistic missiles. The budget 
     request for the GMD system also leads conferees to believe 
     that inadequate resources have been applied toward ensuring 
     the GMD system is fully tested and is able to stand alert 
     even while testing is underway.
       The conferees believe that the emphasis of our missile 
     defense efforts should be on the current generation of 
     missile defense capabilities--even if this comes at the 
     expense of longer-term development efforts. Based on 
     congressional testimonies by combatant commanders, who inform 
     Congress that they require more missile defense inventory to 
     keep pace with the threat, and mindful of recent developments 
     in North Korea and Iran, the conferees believe that priority 
     should be given to developing, testing, fielding, and 
     improving effective near-term missile defense capabilities, 
     including GMD, Aegis BMD, Patriot PAC-3, and THAAD. The 
     conferees expect the Department to reflect this policy in 
     their fiscal year 2008 budget submission.
     One-year extension of Comptroller General assessments of 
         ballistic missile defense programs (sec. 224)
       The Senate amendment contained a provision (sec. 233) that 
     would extend until fiscal year 2008 the requirement for the 
     Comptroller General to provide an assessment of the extent to 
     which the Missile Defense Agency achieved the goals 
     established for that fiscal year for each ballistic missile 
     defense program of the Department of Defense.
       The House bill contained no similar provision.
       The House recedes.
     Submittal of plans for test and evaluation of the operational 
         capability of the Ballistic Missile Defense System (sec. 
         225)
       The Senate amendment contained a provision (sec. 234) that 
     would require each plan approved by the Director of 
     Operational Test and Evaluation to test and evaluate the 
     operational capability of the ballistic missile defense 
     system, as required by section 234(a) of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163; 
     10 U.S.C. 2431 note), to be submitted to the congressional 
     defense committees within 30 days of such approval.
       The House bill contained no similar provision.
       The House recedes.
     Annual reports on transition of ballistic missile defense 
         programs to the military departments (sec. 226)
       The Senate amendment contained a provision (sec. 235) that 
     would require the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics to submit a report to the 
     congressional defense committees, not later than March 1, 
     2007, and annually thereafter through 2013, on the plans of 
     the Department of Defense for the transition of missile 
     defense programs from the Missile Defense Agency to the 
     military departments.
       The House bill contained no similar provision.
       The House recedes with an amendment that would include the 
     requirement to report on any agreement on the operational 
     test criteria that must be achieved before the transition of 
     a missile defense program to the military departments.

                       Subtitle D--Other Matters

     Policies and practices on test and evaluation to address 
         emerging acquisition approaches (sec. 231)
       The House bill contained a provision (sec. 231) that would 
     require a review of test and evaluation policies and 
     practices, and modify reporting requirements of the Director 
     of Operational Test and Evaluation (DOTE) under section 
     2399(b)(2) of title 10, United States Code.
       The Senate amendment contained a similar provision (sec. 
     253) that would require the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics (USD (AT&L)) and the 
     DOTE to review and revise policies and practices on test and 
     evaluation in light of emerging approaches to acquisition. 
     The provision would also amend section 2399(b) of title 10, 
     United States Code, to address deficient testing information 
     on rapid acquisition programs purchased prior to a decision 
     to proceed to low rate initial production
       The House recedes with an amendment that would include 
     elements of both provisions, and add a new section to clarify 
     the responsibilities of the DOTE with respect to force 
     protection equipment. The amendment would: (1) update 
     reporting requirements of the DOTE to allow for submission of 
     relevant information on operational capabilities of tested 
     items; (2) require submission of testing information to 
     Congress on major defense acquisition programs that do not 
     move beyond low rate initial production, but that proceed to 
     operational use or make use of procurement funds; (3) require 
     a review, and revision if necessary, of policies and 
     practices on test and evaluation; and (4) update the 
     responsibilities of the DOTE under section 139 of title 10, 
     United States Code, to include advice and consultation to the 
     Secretary of Defense, USD (AT&L), and Secretaries of the 
     military departments on operational test and evaluation and 
     survivability testing of force protection equipment.
       The conferees do not intend this section to modify existing 
     authorities of the DOTE with respect to major defense 
     acquisition programs, as defined in section 139(a)(2)(B) of 
     title 10, United States Code, or operational test and 
     evaluation in general. The conferees direct the Secretaries 
     of the military departments to ensure that the DOTE is made 
     aware of force protection equipment programs.
     Extension of requirement for Global Research Watch Program 
         (sec. 232)
       The Senate amendment contained a provision (sec. 251) that 
     would extend the requirement for the Global Research Watch 
     program.
       The House bill contained no similar provision.
       The House recedes.
     Sense of Congress on technology sharing of Joint Strike 
         Fighter technology (sec. 233)
       The Senate amendment contained a provision (sec. 256) that 
     would express the sense of the Senate that the Secretary of 
     Defense should allow Joint Strike Fighter technology to be 
     shared between the governments of the United States and the 
     United Kingdom.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Report on vehicle-based active protection systems for certain 
         battlefield threats (sec. 234)
       The Senate amendment contained a provision (sec. 358) that 
     would require the Secretary of Defense to contract with an 
     appropriate entity independent of the United States 
     Government to conduct an assessment of various foreign and 
     domestic technological approaches to vehicle-based active 
     protective systems.
       The House bill contained no similar provision.
       The House recedes.
       The conferees expect the Secretary of Defense to provide to 
     the entity selected to perform the independent assessment the 
     documentation and findings of all related studies of active 
     protection systems conducted by the Department of Defense 
     within the last 3 years or deemed relevant by the Secretary.

                   Legislative Provisions Not Adopted

     Amount for development and validation of warfighter rapid 
         awareness processing technology
       The Senate amendment contained a provision (sec. 203) that 
     would authorize $4.0 million for Marine Corps development and 
     validation of a rapid awareness processing technology.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report in Research, Development, Test, and Evaluation, Navy 
     PE 62131M.
     Alternate engine for Joint Strike Fighter
       The House bill contained a provision (sec. 211) that would 
     authorize $408.0 million for the continued development of an 
     alternate engine for the Joint Strike Fighter.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conference outcome is reflected in the tables of this 
     report in Research, Development, Test, and Evaluation, Navy, 
     line 133; and in Research, Development, Test, and Evaluation, 
     Air Force, line 92.
     Arrow ballistic missile defense
       The Senate amendment contained a provision (sec. 215) that 
     would make available $65.0 million for coproduction of the 
     Arrow ballistic missile defense system, and $63.7 million for 
     the Arrow System Improvement Program.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report in Research, Development, Test, and Evaluation, 
     Defense-wide, PE 63881C, Ballistic Missile Defense Terminal 
     Defense Segment.
     Independent cost analyses for Joint Strike Fighter engine 
         program
       The House bill contained a provision (sec. 215) that would 
     direct the Comptroller General and the Secretary of Defense, 
     acting through the Cost Analysis Improvement Group of the 
     Office of the Secretary of Defense, to independently perform 
     comprehensive and detailed cost analyses of the Joint Strike 
     Fighter (JSF) engine program.
       The Senate amendment contained a similar provision (sec. 
     255) that would direct the Comptroller General, the Secretary 
     of Defense, acting through the Cost Analysis Improvement 
     Group of the Office of the Secretary of Defense, and a 
     federally-funded research and development center, which would 
     be selected by the Secretary of Defense, to independently 
     perform comprehensive and detailed cost analyses of the JSF 
     engine program.
       The conference agreement does not include either provision.

[[Page 21043]]

       Elsewhere in this report, the conferees agree to include 
     the requirement for three independent cost analyses on the 
     acquisition of, and independent cost analyses for, the JSF 
     propulsion systems.
     High energy laser low aspect target tracking
       The Senate amendment contained a provision (sec. 216) that 
     would authorize $5.0 million to support instrumentation and 
     test and evaluation activities of the high energy laser 
     systems test facility.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report in Research, Development, Test, and Evaluation, Army 
     PE 65605A.
     Advanced Aluminum Aerostructures Initiative
       The Senate amendment contained a provision (sec. 217) that 
     would authorize $2.0 million for the Advanced Aluminum 
     Aerostructures Initiative.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report in Research, Development, Test, and Evaluation, Air 
     Force PE 63211F.
     Legged mobility robotic research
       The Senate amendment contained a provision (sec. 218) that 
     would authorize $1.0 million for legged mobility robotic 
     research.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report in Research, Development, Test, and Evaluation, Army 
     PE 62601A.
     Wideband digital airborne electronic sensing array
       The Senate amendment contained a provision (sec. 219) that 
     would authorize $3.0 million for Air Force research on the 
     wideband digital airborne electronic sensing array.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report in Research, Development, Test, and Evaluation, Air 
     Force PE 62204F.
     Science and technology
       The Senate amendment contained a provision (sec. 220) that 
     would authorize $45.0 million for competitively awarded basic 
     research programs.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report in Research, Development, Test, and Evaluation, Army 
     PE 61103A, Navy PE 61103N, Air Force PE 61103F, Defense-wide 
     PE 61101E, and Defense-wide PE 61120D8Z.
     High Altitude Airship program
       The House bill contained a provision (sec. 223) that would 
     make $5.0 million available for the High Altitude Airship 
     program from amounts provided in section 201 for Research, 
     Development, Test, and Evaluation, Air Force.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conference outcome is reflected in the tables of this 
     report in Research, Development, Test, and Evaluation.
     Testing and operations for missile defense
       The Senate amendment contained a provision (sec. 236) that 
     would make available an additional $45.0 million for the 
     Ballistic Missile Defense Midcourse Defense Segment (PE 
     63882C) to accelerate the ability to conduct concurrent test 
     and missile defense operations and to increase the pace of 
     realistic flight testing of the ground-based midcourse 
     defense system.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report in Research, Development, Test, and Evaluation, 
     Defense wide, PE 63882C.
     Report on biometrics programs of the Department of Defense
       The Senate amendment contained a provision (sec. 257) that 
     would require the Secretary of Defense to submit a report on 
     the management and adequacy of biometrics programs.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note the importance of an integrated 
     biometrics program to meet Department of Defense needs in the 
     areas of network security and access, facility security, 
     intelligence and detainee operations, force protection, and 
     homeland and border security.
       The conferees direct the Secretary of Defense to submit to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives a report in both classified and 
     unclassified form on the biometrics programs of the 
     Department. The report should be submitted no later than 
     January 31, 2007, and should address the following:
       (1) an assessment of the adequacy of the current executive 
     agent management structure for meeting the needs of the 
     biometrics programs throughout the Department and 
     recommendations, if any, for improvements to the management 
     structure;
       (2) current and anticipated future requirements for the 
     biometrics programs to meet needs throughout the Department;
       (3) a description and assessment of adequacy of programs 
     currently fielded to meet operational requirements, including 
     those in Iraq and Afghanistan;
       (4) an assessment of programmatic or capability gaps in 
     meeting future requirements; and
       (5) actions being taken within the Department to coordinate 
     and integrate biometrics programs among the departments and 
     agencies of the executive branch, including development, 
     requirements generation, resource allocation, and operational 
     use.
       For the purposes of the required report, the conferees 
     consider the term ``biometrics'' to mean an identity 
     management program or system that utilizes distinct personal 
     attributes, including DNA, facial features, irises, retinas, 
     signatures, or voices, to identify individuals.

                  TITLE III--OPERATION AND MAINTENANCE

     Operation and Maintenance overview
       The budget request included $130,089.0 million in Operation 
     and Maintenance, $23,445.6 million in Other Programs, and 
     $2,436.4 million in Working Capital Fund Accounts for the 
     Department of Defense.
       The House bill would authorize $129,770.1 million in 
     Operation and Maintenance, $23,647.0 million in Other 
     Programs, and $2,503.2 million in Working Capital Fund 
     Accounts.
       The Senate amendment would authorize $129,531.8 million in 
     Operation and Maintenance, $23,351.8 million in Other 
     Programs, and $2,436.4 million in Working Capital Fund 
     Accounts.
       The conferees agree to authorize $129,018.1 million in 
     Operation and Maintenance, $23,847.1 million in Other 
     Programs, and $2,436.4 million in Working Capital Fund 
     Accounts.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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                       Items of Special Interest

     C-17 maintenance, sustainment, and modernization
       The conferees are concerned that the current Air Force plan 
     to perform the long term, non-core maintenance, sustainment, 
     and modernization of the C-17 largely through contractor 
     logistics support may not be providing the warfighter with 
     the most cost-effective solution. The recent Department of 
     Defense Inspector General report entitled ``Procurement 
     Procedures Used for C-17 Globemaster III Sustainment 
     Partnership Total System Support'' concluded that the Air 
     Force did not use appropriate methodology for making the 
     acquisition decision to procure contractor total system 
     support for the C-17 aircraft, and that the Air Force failed 
     to justify this decision with a business case analysis. The 
     conferees believe that a business case analysis that examines 
     the costs and benefits of multiple maintenance, sustainment, 
     and modernization options (e.g. public/private partnerships) 
     for the C-17 aircraft could lead to a new maintenance, 
     sustainment, and modernization strategy for the C-17, which 
     would provide substantial savings in total life cycle cost.
       The conferees direct the Comptroller General to perform a 
     review of the Air Force's current plans for a C-17 
     sustainment business case analysis to include: (1) the scope 
     of the business case analysis, and (2) the appropriateness of 
     the options under consideration. The Comptroller General 
     shall submit a report to the congressional defense committees 
     on the results of the review no later than June 1, 2007.
     Disposal of land at Norwalk Defense Fuel Supply Point, 
         Norwalk, California
       The conferees note that the Secretary of the Air Force, in 
     consultation with the General Services Administration, has 
     entered into an agreement with the city of Norwalk, 
     California to withhold any activity to convey by public sale 
     the property at the Norwalk Defense Fuel Supply Point in 
     Norwalk, California until no earlier than November 21, 2006, 
     in order to allow the city to prepare an offer for the fair 
     market transfer of the property to the city.
       The conferees expect that the Secretary of the Air Force 
     will provide to the city the relevant and material 
     information held by the Air Force related to the known 
     environmental conditions and planned environmental 
     remediation of the site to assist in the preparation of the 
     city's proposal.
     Public sale of damaged equipment
       The conferees are concerned that the public may not be 
     fully aware of the availability for purchase of damaged and 
     unsalvageable equipment used in Operation Iraqi Freedom and 
     Operation Enduring Freedom. The conferees encourage the 
     military services and the Defense Logistics Agency (DLA) to 
     establish a public awareness campaign that will allow the 
     services and DLA to more aggressively pursue the sale of such 
     equipment that is appropriate for disposal to the public 
     through the disposal process managed by the Defense 
     Reutilization and Marketing Service.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 301-303)
       The House bill contained provisions (secs. 301-303) that 
     would authorize fiscal year 2007 funding levels for all 
     operation and maintenance accounts, working capital funds, 
     and other Department of Defense programs, including the 
     Defense Inspector General, the Chemical Demilitarization 
     Program, and the Defense Health Program.
       The Senate amendment contained similar provisions (secs. 
     301-303).
       The conference agreement includes these provisions.

                  Subtitle B--Environmental Provisions

     Revision of requirement for unexploded ordnance program 
         manager (sec. 311)
       The House bill contained a provision (sec. 311) that would 
     require the Secretary of Defense to designate the unexploded 
     ordnance program manager position required under section 
     2701(k) of title 10, United States Code, and add research to 
     the list of policy and budget issues that are within the 
     responsibility of the program manger. The provision would 
     also require that the position of program manager be filled 
     by an employee in a position that is equivalent to pay grade 
     0-6 or above, or a member of the armed forces who is serving 
     in the grade of 0-6 or above. The program manager would be 
     required to report to the Deputy Under Secretary of Defense 
     for Installations and Environment.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Funding of cooperative agreements under environmental 
         restoration program (sec. 312)
       The House bill contained a provision (sec. 314) that would 
     amend section 2701(d)(2) of title 10, United States Code, to 
     allow cooperative agreements entered into for environmental 
     restoration at defense facilities to extend beyond the 
     present 2-year limitation when the agreements are funded out 
     of either the Department of Defense Base Closure Account 1990 
     or the Department of Defense Base Closure Account 2005.
       The Senate amendment contained a similar provision (sec. 
     334).
       The Senate recedes.
     Response plan for remediation of unexploded ordnance, 
         discarded military munitions, and munitions constituents 
         (sec. 313)
       The Senate amendment contained a provision (sec. 331) that 
     would require the Secretary of Defense to set remediation 
     goals for the cleanup of unexploded ordnance, discarded 
     military munitions, and munitions constituents. Those goals 
     would be to complete, by not later than September 30, 2007, 
     preliminary assessments at all active installations and 
     formerly used defense sites (other than operational ranges); 
     to complete, by not later than September 30, 2010, site 
     inspections at all active installations and formerly used 
     defense sites (other than operational ranges); to achieve, by 
     not later than September 30, 2009, a remedy in place or 
     response complete at all military installations closed or 
     realigned as part of a round of Defense Base Closure and 
     Realignment prior to the 2005 round; and to achieve, by a 
     date certain established by the Secretary of Defense, a 
     remedy in place or response complete at all active 
     installations and formerly used defense sites (other than 
     operational ranges) and all military installations realigned 
     or closed under the 2005 Defense Base Closure and Realignment 
     round.
       The provision would also require the Secretary to submit to 
     the congressional defense committees a comprehensive plan for 
     addressing the remediation of unexploded ordnance by March 1, 
     2007. The Secretary would be required to update this plan not 
     later than March 15 of 2008, 2009, and 2010. The provision 
     would allow the goals established for unexploded ordnance 
     cleanup to be adjusted to respond to unforeseen circumstances 
     as part of the annual update of the plan.
       The provision would also require the Secretary to submit a 
     report to the congressional defense committees, not later 
     than March 1, 2007, on the status of efforts of the 
     Department of Defense to achieve agreement with relevant 
     regulatory agencies on appropriate reuse standards or 
     principles related to the remediation of unexploded ordnance, 
     discarded military munitions, and munitions constituents.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Research on effects of ocean disposal of munitions (sec. 314)
       The House bill contained a provision (sec. 312) that would 
     require the Secretary of Defense to identify, research, 
     monitor, and provide navigational and safety information on 
     conventional and chemical military munitions disposal sites 
     in the coastal waters of the United States.
       The Senate amendment contained a similar provision (sec. 
     333). The provision would require the Secretary of Defense to 
     review historical records to determine the number, size, and 
     probable locations of disposal sites, and the types of 
     military munitions disposed of at the sites. The Secretary 
     would be required to release periodically to the public and 
     submit annually to Congress the information obtained in this 
     review, including a final report in the annual report to 
     Congress on environmental restoration activities of the 
     Department of Defense for fiscal year 2009. The Secretary 
     would also be required to conduct research on the effects on 
     the ocean environment and those who use it of military 
     munitions disposed of in coastal waters. The provision would 
     further require that if the historical review or the research 
     conducted indicates that contamination is being released at a 
     particular site, or that the site poses a significant public 
     health or safety risk, the Secretary would be required to 
     institute appropriate monitoring mechanisms and report to 
     Congress on any additional measures that may be necessary.
       The House recedes with a clarifying amendment.
     Reimbursement of Environmental Protection Agency for certain 
         costs in connection with Moses Lake Wellfield Superfund 
         Site, Moses Lake, Washington (sec. 315)
       The House bill contained a provision (sec. 313) that would 
     authorize the Secretary of Defense to transfer not more than 
     $111,114.03 to the Moses Lake Wellfield Superfund Site, 10-6J 
     special account, to reimburse the Environmental Protection 
     Agency for costs incurred in overseeing a remedial 
     investigation and feasibility study performed by the 
     Department of the Army.
       The Senate amendment contained a similar provision (sec. 
     335).
       The House recedes with a technical amendment.
     Transfer of Government-furnished uranium stored at Sequoyah 
         Fuels Corporation, Gore, Oklahoma (sec. 316)
       The Senate amendment contained a provision (sec. 3301) that 
     would require the Secretary of the Army to transport to an 
     authorized disposal facility for appropriate disposal all of 
     the Government-furnished uranium in the chemical and physical 
     form in which it is stored at the Sequoyah Fuels Corporation 
     site in Gore, Oklahoma, by not later than March 31, 2007.

[[Page 21083]]

       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Extension of authority to grant exemptions to certain 
         requirements (sec. 317)
       The Senate amendment contained a provision (sec. 332) that 
     would authorize the Administrator of the Environmental 
     Protection Agency to grant an exemption for up to 3 years to 
     the Secretary of Defense and the Secretaries of the military 
     departments to transport polychlorinated biphenyls generated 
     by, or under the control of, the Department of Defense into 
     the United States for purposes of their disposal, treatment, 
     or storage.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Administrator of the Environmental Protection Agency to 
     extend an exemption that has not yet expired for a period not 
     to exceed 60 days for the purpose of authorizing the 
     Secretary of Defense and the Secretaries of the military 
     departments to provide for the transportation into the United 
     States of polychlorinated biphenyls generated by, or under 
     the control of, the Department for the purposes of their 
     disposal, treatment, or storage, if those polychlorinated 
     biphenyls are already in transit.
     National Academy of Sciences study on human exposure to 
         contaminated drinking water at Camp Lejeune, North 
         Carolina (sec. 318)
       The Senate amendment contained a provision (sec. 352) that 
     would require the Secretary of the Navy to enter into an 
     agreement with the National Academy of Sciences to conduct a 
     comprehensive review and evaluation of the available 
     scientific and medical evidence regarding associations 
     between pre-natal, child, and adult exposure to drinking 
     water contaminated with trichloroethylene and 
     tetrachloroethylene at Camp Lejeune, North Carolina, as well 
     as exposures to levels of trichloroethylene and 
     tetrachloroethylene similar to those experienced at Camp 
     Lejeune, and birth defects or diseases and any other adverse 
     health effects. The provision would also require that, upon 
     completion of the current epidemiological study by the Agency 
     for Toxic Substances Disease Registry, the Commandant of the 
     Marine Corps take appropriate actions, including use of 
     national media, to notify former Camp Lejeune residents and 
     employees who may have been exposed to contaminated drinking 
     water at Camp Lejeune of the results of the study.
       The House bill contained no similar provision.
       The House recedes.

    Subtitle C--Program Requirements, Restrictions, and Limitations

     Limitation on financial management improvement and audit 
         initiatives within the Department of Defense (sec. 321)
       The Senate amendment contained a provision (sec. 313) that 
     would prohibit the Secretary of Defense from obligating any 
     funds for activities related to the Department of Defense 
     financial management improvement effort until the Secretary 
     submits to the congressional defense committees a written 
     determination that each activity proposed to be funded is 
     consistent with the financial management improvement plan of 
     the Department and likely to improve internal controls or 
     otherwise result in sustained improvements in the ability of 
     the Department to produce timely, reliable, and complete 
     financial management information.
       The House bill contained no similar provision.
       The House recedes.
     Funds for exhibits for the national museums of the Armed 
         Forces (sec. 322)
       The Senate amendment contained a provision (sec. 312) that 
     would make $3.0 million of the amounts appropriated to each 
     of the armed force operation and maintenance accounts 
     available to each Secretary of a military department for 
     education and training purposes to acquire, install, and 
     maintain exhibits at each facility designated by the 
     Secretary concerned as the national museum for each armed 
     force.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Prioritization of funds for equipment readiness and strategic 
         capability (sec. 323)
       The House bill contained a provision (sec. 346) that would 
     require the Secretary of the Army to fully fund the reset of 
     equipment used in the global war on terrorism, the 
     fulfillment of equipment requirements for units transforming 
     to modularity, and the reconstitution of prepositioned 
     stocks. The provision would also require the Secretary to 
     submit to the congressional defense committees an annual 
     report containing information on these funding priorities. 
     The provision would limit to $2.85 billion the funds to be 
     appropriated annually for the Future Combat Systems (FCS) 
     until these funding priorities have been met.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to ensure that financial resources are 
     provided to enable the Secretary of each military department 
     to meet its requirements for repair, recapitalization, and 
     replacement of equipment used in the global war on terrorism. 
     The amendment would also require the Secretary of Defense to 
     ensure financial resources are provided to the Secretary of 
     the Army to meet the Army's requirements for transforming to 
     a modular force and reconstituting the equipment and materiel 
     in Army prepositioned stocks. The amendment would further 
     require the Secretary of Defense to submit, as part of the 
     normal budget justification materials, detailed information 
     regarding the repair, recapitalization, or replacement of 
     equipment used in the global war on terror, the Army's 
     transformation to a modular force, and the reconstitution of 
     equipment and materiel in Army prepositioned stocks. The 
     amendment would require an annual report to the congressional 
     defense committees from the Secretary of the Army on the 
     Army's progress in meeting the above requirements, and a 
     report from the Comptroller General to the congressional 
     defense committees containing an assessment of the Army's 
     progress in meeting the above requirements.
     Limitation on deployment of Marine Corps Total Force System 
         to Navy (sec. 324)
       The conferees agree to include a provision that would 
     prohibit the expenditure of any funds for the development or 
     modernization of Navy and Marine Corps manpower, personnel, 
     and pay information technology systems for the application of 
     the Marine Corps Total Force Systems (MCTFS) or any 
     derivative system to the Navy until several conditions have 
     been met. The provision would require the Secretary of the 
     Navy to prepare an analysis of alternatives, comparing MCTFS 
     to the Defense Integrated Military Human Resources System; a 
     business case analysis; and an analysis of compatibility of 
     MCTFS with the enterprise architecture of the Department of 
     Defense. The provision would require the Government 
     Accountability Office to conduct a review of the Navy reports 
     within 90 days of receipt of the reports and provide a 
     written assessment to the congressional defense committees 
     and to the Chairman of the Defense Business Systems 
     Management Committee (DBSMC). The provision would require 
     that, no sooner than 120 days after receiving the Navy's 
     reports, the Chairman of the DBSMC determine in writing to 
     the congressional defense committees whether it is in the 
     best interests of the Department to apply MCTFS to the Navy.

                 Subtitle D--Workplace and Depot Issues

     Permanent exclusion of certain contract expenditures from 
         percentage limitation on the performance of depot-level 
         maintenance (sec. 331)
       The House bill contained a provision (sec. 321) that would 
     extend for 5 years the authority to exclude amounts expended 
     for the performance of depot-level maintenance workload by 
     nonfederal government personnel at a Center of Industrial and 
     Technical Excellence from the percentage limitation in 
     section 2466(a) of title 10, United States Code, if the 
     personnel performing the work are provided pursuant to a 
     public-private partnership.
       The Senate amendment contained a similar provision (sec. 
     362) that would extend the exclusion indefinitely.
       The House recedes with an amendment that would move the 
     reporting requirement contained in section 2474(f) of title 
     10, United States Code, to section 2466(e) of title 10, 
     United States Code. The amendment would also add an element 
     to that report and remove the requirement for a Comptroller 
     General review of that report.
     Minimum capital investment for certain depots (sec. 332)
       The House bill contained a provision (sec. 322) that would 
     require the Secretary of the Air Force to invest a minimum of 
     6 percent of the total revenue of the Air Force depots in the 
     capital investment budget to improve or sustain depot 
     maintenance facilities, equipment, or processes.
       The Senate amendment contained a similar provision (sec. 
     361). The provision would require a public depot that 
     utilizes a working capital fund to invest, at a minimum, 6 
     percent of the actual total revenues from the previous year 
     for capital investment within that depot.
       The Senate recedes with an amendment that would require all 
     military departments to invest, at a minimum, 6 percent of 
     average total revenues over the previous 3 years in their 
     public depots for infrastructure, equipment, and process 
     improvements. The Departments of the Army and Navy would only 
     be required to invest at a minimum 4 percent in fiscal year 
     2007 and 5 percent in fiscal year 2008, before rising to 6 
     percent per fiscal year thereafter. The amendment would 
     provide for a waiver authority for the Secretary of Defense 
     if the Secretary determines that the waiver is necessary for 
     reasons of national security and notifies the congressional 
     defense committees.
       For the purposes of this provision, investment shall 
     include those funds spent on the construction, addition, 
     recapitalization, improvement, restoration, or modernization 
     of depot infrastructure, equipment, and process improvements 
     in direct support of depot operations. Other facility 
     investments (i.e. installation and military community support

[[Page 21084]]

     facilities, utility infrastructure, and investment in 
     facilities supporting other missions and functions of the 
     installation) made at the same location as the depot 
     facilities, but not in direct support of depot maintenance 
     operations, shall not count toward the minimum investment 
     requirement.
       The amendment would also require the military departments 
     to report to the congressional defense committees on the 
     level and type of investment, and a long-term depot 
     maintenance facilities strategy.
       Extension of temporary authority for contractor performance 
     of security guard functions (sec. 333)
       The House bill contained a provision (sec. 323) that would 
     extend the temporary authority to contract for increased 
     performance of security guard functions. The authority would 
     expire at the end of fiscal year 2008. This section would 
     require a report on implementation of the recommendations of 
     a Government Accountability Office report on contractor 
     security guards.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would change the 
     expiration date of the authority to contract for security 
     guard functions until the end of fiscal year 2009. The 
     amendment would also require that the total number of 
     personnel employed under such contracts in fiscal year 2007 
     be no more than the total employed on October 1, 2006. The 
     total number of personnel employed would be further limited 
     in fiscal year 2008 to 90 percent of the number employed on 
     October 1, 2006, and 80 percent of that number in fiscal year 
     2009.

                          Subtitle E--Reports

     Report on Navy Fleet Response Plan (sec. 341)
       The House bill contained a provision (sec. 332) that would 
     require the Secretary of the Navy to submit a report on the 
     Navy Fleet Response Plan. The provision would also require 
     the Comptroller General to submit a review of the Secretary's 
     report. The provision would postpone the expansion of the 
     Fleet Response Plan beyond the carrier strike groups until 
     October 1, 2007.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would change some 
     of the required elements of the two reports, change the date 
     the Comptroller General's report is due, and change the 
     limitation date on expansion of the Fleet Response Plan 
     beyond carrier strike groups.
     Report on Navy surface ship rotational crew programs (sec. 
         342)
       The House bill contained a provision (sec. 333) that would 
     require the Secretary of the Navy to submit a report on ship 
     rotational crew experiments. The provision would also require 
     the Comptroller General to submit an assessment of the 
     Secretary of Navy's report and require the Director of the 
     Congressional Budget Office to submit a report on the long-
     term benefits and costs of surface ship crew rotational 
     programs. The provision would postpone the implementation of 
     any new surface ship rotational crew experiment or program 
     until October 1, 2009.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would allow the 
     ongoing crew rotation program for mine countermeasure ships 
     and allow the Navy to employ two crews per ship for the first 
     four Littoral Combat Ships.
     Report on Army live-fire ranges in Hawaii (sec. 343)
       The House bill contained a provision (sec. 334) that would 
     require the Secretary of the Army to submit a report to 
     Congress on the adequacy of live-fire training facilities in 
     the state of Hawaii.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Comptroller General report on joint standards and protocols 
         for access control systems at Department of Defense 
         installations (sec. 344)
       The House bill contained a provision (sec. 335) that would 
     require the Comptroller General to submit a report on joint 
     standards and protocols for access control systems at 
     Department of Defense installations.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Comptroller General report on readiness of Army and Marine 
         Corps ground forces (sec. 345)
       The Senate amendment contained a provision (sec. 351) that 
     would require the Comptroller General to submit a report, not 
     later than March 1, 2007, to the congressional defense 
     committees on the readiness of Army and Marine Corps ground 
     forces.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     deadline of the report to June 1, 2007, and require the 
     report to be submitted to the Committees on Armed Services of 
     the Senate and the House of Representatives.
     Report on Air Force safety requirements for Air Force flight 
         training operations at Pueblo Memorial Airport, Colorado 
         (sec. 346)
       The Senate amendment contained a provision (sec. 360) that 
     would require the Secretary of the Air Force to submit to the 
     congressional defense committees a report, not later than 
     February 15, 2007, on Air Force flight safety requirements at 
     Pueblo Memorial Airport, Colorado.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to include in the report a description of the 
     funding of fire-fighting and crash rescue support through the 
     execution of a services contract for the Initial Flight 
     Screening program.
     Annual report on Personnel Security Investigations for 
         Industry and National Industrial Security Program (sec. 
         347)
       The House bill contained provisions (secs. 336 and 1041) 
     that would address personnel security investigations. Section 
     336 would require the Secretary of Defense to provide a 
     report to Congress on the status of industry personnel 
     security clearances granted between October 1, 1999, and 
     September 30, 2006. The provision would require that the 
     initial report be followed by semi-annual updates, including 
     a certification by the Secretary concerning improvements to 
     the personnel security clearance investigation process. 
     Section 1041 would prohibit the Department of Defense from 
     allowing a security clearance that is pending renewal to 
     expire unless the Secretary certifies to Congress that the 
     Defense Security Service is fully funded, continuing to 
     accept requests from industry, and has taken steps to 
     eliminate its backlog of requests.
       The Senate amendment contained no similar provisions.
       The Senate recedes with an amendment that would require the 
     Secretary to provide an annual report on the status of 
     industry security clearances with the submission of the 
     President's annual budget request. The amendment would also 
     require a report by the Comptroller General on the status and 
     cost of industry security clearance investigations conducted 
     between October 1, 1999, and September 30, 2006, as well as 
     the Department's progress in achieving improvements to the 
     personnel security investigations program.
     Five-year extension of annual report on training range 
         sustainment plan and training range inventory (sec. 348)
       The Senate amendment contained a provision (sec. 353) that 
     would express the sense of Congress that the Department of 
     Defense should establish a policy to identify military aerial 
     training areas, determine aerial training airspace 
     requirements to meet future training needs, and undertake 
     necessary actions to preserve and, if necessary, expand those 
     areas of airspace needed for training requirements. The 
     provision would also require the Secretary of Defense to 
     submit a report to the congressional defense committees 
     setting forth a plan to meet the Department's airspace needs 
     through 2025.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend for 5 
     years the annual report on the Department's training range 
     sustainment plan and training range inventory required by 
     section 366 of the Bob Stump National Defense Authorization 
     Act for Fiscal Year 2003 (Public Law 107-314). The amendment 
     would also extend the period for the Comptroller General's 
     review of the report from 60 days to 90 days.
       The conferees note that the Comptroller General's most 
     recent assessment of the Secretary's annual report stated 
     that, once again, the report did not include an assessment of 
     current and future training range requirements or an 
     evaluation of the adequacy of resources to meet current and 
     future training requirements, even though specifically 
     required to do so by current law.
       The conferees also note, with great concern, that this 
     assessment also indicates that some of the requirements of 
     section 366 have not been met because Department officials 
     consider them overly burdensome or impractical. If the 
     Department believes that it cannot comply with some 
     requirements of the law, or that the requirement is overly 
     burdensome, the conferees expect the Department to ask 
     Congress to modify the appropriate portion of the law, not to 
     ignore the requirements of the law.
       The conferees are aware of the increasing pressure on our 
     training ranges. Urban development around many installations 
     in some cases has resulted in restrictions on nighttime 
     training. The growth of commercial and general aviation has 
     put increasing pressure on current aviation training ranges 
     and limits the possibility of expansion of those training 
     areas in the future. Increasing capability and range of both 
     ground and aviation systems increases the likelihood that 
     range requirements may increase in the future.
       Therefore, the conferees extend the annual reporting 
     requirement for an additional 5 years and expect that all 
     future reports will fully comply with the requirements 
     specified in section 366.
     Reports on withdrawal or diversion of equipment from reserve 
         units for support of reserve units being mobilized and 
         other units (sec. 349)
       The Senate amendment contained a provision (sec. 355) that 
     would require the Secretaries of the military departments to 
     submit a report to the Secretary of Defense not

[[Page 21085]]

     later than 90 days after the withdrawal or diversion of 
     equipment from a unit of the reserve component to a unit of 
     the active or reserve component to meet mission requirements. 
     The report would contain a plan to replace or recapitalize 
     withdrawn or diverted equipment and a signed Memorandum of 
     Understanding between the reserve component unit from which 
     equipment was withdrawn or diverted and the active or reserve 
     component unit that received the withdrawn or diverted 
     equipment that specifies how the equipment will be tracked 
     and the expected replacement date of the withdrawn or 
     diverted equipment.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to submit quarterly reports to the 
     congressional defense committees on the withdrawal or 
     diversion of equipment from a unit of the reserve component 
     to a unit of the active or reserve component.

                       Subtitle F--Other Matters

     Department of Defense strategic policy on prepositioning of 
         materiel and equipment (sec. 351)
       The House bill contained a provision (sec. 341) that would 
     require the Secretary of Defense to establish a comprehensive 
     approach to Department of Defense prepositioning programs. 
     The provision would also limit the diversion of materiel and 
     equipment from prepositioned stocks.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would add the 
     requirements of combatant commands as a factor to be 
     considered when creating the policy on prepositioning 
     programs, and would also add the provision of humanitarian 
     assistance as an authorized purpose for diversion of materiel 
     and equipment from prepositioned stocks.
       It is the conferees' intent that any prepositioning policy 
     created in accordance with this provision shall contain 
     guidance regarding how quickly prepositioned equipment sets 
     must be reconstituted when they have been used for 
     contingency or humanitarian operations.
     Authority to make Department of Defense horses available for 
         adoption (sec.
       352)
       The House bill contained a provision (sec. 342) that would 
     amend section 2583 of title 10, United States Code, to 
     include horses owned by the Department of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Sale and use of proceeds of recyclable munitions materials 
         (sec. 353)
       The House bill contained a provision (sec. 343) that would 
     authorize the Secretary of the Army to establish a program to 
     sell recyclable materials resulting from the demilitarization 
     of conventional military munitions. The proceeds from the 
     sales would be available to the Army for reclamation, 
     recycling, and reuse of conventional military munitions.
       The Senate amendment contained a similar provision (sec. 
     371).
       The Senate recedes with a technical amendment.
     Recovery and transfer to Corporation for the Promotion of 
         Rifle Practice and Firearms Safety of certain firearms, 
         ammunition, and parts granted to foreign countries (sec. 
         354)
       The Senate amendment contained a provision (sec. 379) that 
     would allow the Secretary of the Army to recover rifles, 
     ammunition, repair parts, and other supplies from a country 
     who had received those items under the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2314), when those items are excess to the 
     needs of that country. The recovered rifles, ammunition, 
     repair parts, and other supplies would be available for 
     transfer to the Corporation for the Promotion of Rifle 
     Practice and Firearms Safety.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Extension of Department of Defense telecommunications benefit 
         program (sec. 355)
       The Senate amendment contained a provision (sec. 373) that 
     would extend the authorization for the Department of Defense 
     telecommunications benefit from September 30, 2006, to 60 
     days after the date on which the Secretary of Defense has 
     declared that a contingency operation has ended. The 
     provision would also authorize the Secretary to extend the 
     telecommunications benefit to members who remain hospitalized 
     as a result of wounds or injuries incurred while serving in 
     support of a contingency operation.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Extension of availability of funds for commemoration of 
         success of the Armed Forces in Operation Enduring Freedom 
         and Operation Iraqi Freedom (sec. 356)
       The Senate amendment contained a provision (sec. 374) that 
     would amend section 378(b)(2) of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163) 
     to extend the authority for commemoration of success of the 
     armed forces in Operation Enduring Freedom and Operation 
     Iraqi Freedom through fiscal year 2007.
       The House bill contained no similar provision.
       The House recedes.
     Capital security cost sharing (sec. 357)
       The House bill contained a provision (sec. 344) that would 
     require the Secretary of Defense to provide to the 
     congressional defense committees an annual accounting of 
     Department of Defense overseas staffing levels, and to 
     reconcile that accounting with the cost-sharing fees levied 
     by the Secretary of State, in accordance with section 
     629(e)(1) of the Consolidated Appropriations Act, 2005 
     (Public Law 108-447).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Utilization of fuel cells as back-up power systems in 
         Department of Defense operations (sec. 358)
       The Senate amendment contained a provision (sec. 377) that 
     would require the Secretary of Defense to consider the use of 
     fuel cells as replacements for current back-up power systems.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to also consider the use of fuel cells in 
     individual equipment items.
     Improving Department of Defense support for civil authorities 
         (sec. 359)
       The Senate amendment contained a provision (sec. 378) that 
     would authorize the Secretary of Defense to preposition 
     prepackaged or preidentified basic response assets such as 
     medical supplies, food, water, and communications equipment 
     in order to improve the ability of the Department of Defense 
     to rapidly respond to requests for support from civilian 
     authorities, and would require that the Department be 
     reimbursed for the cost of such activities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to consult with the Secretary of 
     Homeland Security in the development of concept plans to 
     support civilian authorities.
     Energy efficiency in weapons platforms (sec. 360)
       The Senate amendment contained a provision (sec. 375) that 
     would establish a policy for the Department of Defense to 
     improve the fuel efficiency of weapons platforms, consistent 
     with mission requirements. The provision would also require a 
     report from the Secretary of Defense regarding the progress 
     in implementing that policy.
       The House bill contained no similar provision.
       The House recedes.
     Prioritization of funds within Navy mission operations, ship 
         maintenance, combat support forces, and weapons system 
         support (sec. 361)
       The House bill contained a provision (sec. 345) that would 
     require the Secretary of the Navy to ensure that 100 percent 
     of the requirements for steaming days per quarter for 
     deployed and non-deployed ship operations and 100 percent of 
     the projected ship and air depot maintenance workload are 
     funded before Navy operation and maintenance funds may be 
     expended for the Navy Expeditionary Combat Command. The 
     provision would also require the Secretary of the Navy to 
     submit a report with the annual budget request certifying 
     that these requirements are fully funded.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would express the 
     sense of Congress that the Secretary of Defense should ensure 
     sufficient funds are provided to support the critical 
     training and depot maintenance necessary for the Navy to 
     support the National Military Strategy. The amendment would 
     also require a certification from the Secretary of Defense 
     that the Navy has budgeted to fully meet their requirements 
     for ship steaming days per quarter and for projected aviation 
     and ship depot maintenance requirements. The amendment would 
     limit the obligation of funds to no more than 80 percent of 
     the total funds in Operation and Maintenance, Defense-wide, 
     for the Office of the Secretary of Defense, until that 
     certification has been submitted. The amendment would further 
     require the Secretary of the Navy to submit two reports to 
     the congressional defense committees. The first is an annual 
     report regarding the progress towards the above requirements 
     and the second is a report on the Riverine Squadrons of the 
     Navy.
     Provision of adequate storage space to secure personal 
         property outside of assigned military family housing unit 
         (sec. 362)
       The conferees agree to include a provision that would 
     require the Secretary of a military department to provide, 
     under certain conditions, a means for the storage of certain 
     personal possessions belonging to military members residing 
     in family housing who are assigned to a family-restricted 
     area for a period greater than 180 days.

[[Page 21086]]


     Expansion of payment of replacement value of personal 
         property damaged during transport at Government expense 
         (sec. 363)
       The House bill contained a provision (sec. 1102) that would 
     amend section 2636a of title 10, United States Code, to 
     authorize contracting for full replacement value coverage for 
     household goods of civilian employees of the Department of 
     Defense damaged or lost during transportation at government 
     expense.
       The Senate amendment contained a provision (sec. 631) that 
     would amend section 2636a of title 10, United States Code, to 
     require the Secretary of Defense, not later than March 1, 
     2008, to include in contracts for the transportation of 
     baggage and household effects for both military members and 
     civilian employees a clause requiring carriers to pay the 
     full replacement value for loss or damage. The provision 
     would also require certain certifications by the Secretary 
     about the Families First program and a review and assessment 
     by the General Accountability Office on December 1, 2006, and 
     June 1, 2007, respectively, of the progress of the Department 
     in implementing the Families First program.
       The House recedes.

                   Legislative Provisions Not Adopted

     Limitation on availability of funds for the Army Logistics 
         Modernization Program
       The Senate amendment contained a provision (sec. 311) that 
     would prohibit the expenditure of any funds for continuing 
     the Army Logistics Modernization Program until the Secretary 
     of Defense certifies that the program has adequately 
     addressed its many shortcomings.
       The House bill contained no similar provision.
       The Senate recedes.
     Limitation on availability of operation and maintenance funds 
         for the management headquarters of the Defense 
         Information Systems Agency
       The Senate amendment contained a provision (sec. 314) that 
     would restrict funds authorized to be appropriated for the 
     operation and maintenance of the management headquarters of 
     the Defense Information Systems Agency until the Secretary of 
     Defense submits a report to the congressional defense 
     committees on the acquisition strategy of the Department of 
     Defense for commercial satellite services.
       The House bill contained no similar provision.
       The Senate recedes.
     Analysis and report regarding contamination and remediation 
         responsibility for Norwalk Defense Fuel Supply Point, 
         Norwalk, California
       The House bill contained a provision (sec. 315) that would 
     require the Secretary of the Air Force to report to Congress 
     not later than January 30, 2007, on matters related to 
     contamination and remediation of property at the Norwalk 
     Defense Fuel Supply Point in Norwalk, California. This 
     provision would also prohibit the Secretary of the Air Force 
     from conveying the property before pursuing a fair market 
     value transfer of the property to the City of Norwalk, 
     submitting the required report, and providing an explanation 
     of why efforts to transfer the property to the city have not 
     been successful.
       The Senate amendment contained no similar provision.
       The House recedes.
     Report regarding scope of perchlorate contamination at 
         Formerly Used Defense Sites
       The House bill contained a provision (sec. 316) that would 
     require the Secretary of Defense to submit to Congress a 
     report containing the results of a study of the scope of 
     perchlorate contamination at Formerly Used Defense Sites, 
     including identification of military installations or 
     contractors that may have stored perchlorate or products 
     containing perchlorate.
       The Senate amendment contained no similar provision.
       The House recedes.
     Infantry combat equipment
       The Senate amendment contained a provision (sec. 316) that 
     would authorize $2.5 million in Operation and Maintenance, 
     Marine Corps Reserve for infantry combat equipment.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report in Operation and Maintenance, Marine Corps Reserve.
     Individual First Aid Kit
       The Senate amendment contained a provision (sec. 317) that 
     would authorize $1.5 million in Operation and Maintenance, 
     Marine Corps Reserve for the Individual First Aid Kit.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report in Operation and Maintenance, Marine Corps Reserve.
     Reading for the Blind and Dyslexic program of the Department 
         of Defense
       The Senate amendment contained a provision (sec. 318) that 
     would authorize $500,000 in Operation and Maintenance, 
     Defense-wide, for the Reading for the Blind and Dyslexic 
     program of the Department of Defense for severely wounded or 
     injured members of the Armed Forces.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report.
     Military training infrastructure improvements at Virginia 
         Military Institute
       The Senate amendment contained a provision (sec. 319) that 
     would make $2.9 million from Operation and Maintenance, Army 
     (OMA), available to the Virginia Military Institute for 
     military training infrastructure improvements.
       The House bill contained no similar provision.
       The Senate recedes.
       However, the conferees agree to authorize an increase of 
     $2.9 million in OMA for the Virginia Military Institute for 
     military training infrastructure improvements to provide 
     adequate field training of all Armed Forces Reserve Officer 
     Training Corps. The conference agreement is reflected in the 
     tables of this report.
     Environmental documentation for beddown of F-22A aircraft at 
         Holloman Air Force Base, New Mexico
       The Senate amendment contained a provision (sec. 320) that 
     would require the Secretary of the Air Force to prepare 
     environmental documentation for the beddown of F-22A aircraft 
     at Holloman Air Force Base, New Mexico.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the Air Force is conducting the 
     environmental compliance documentation under the requirements 
     of the National Environmental Policy Act of 1969 (42 U.S.C. 
     4321 et seq.) to support the beddown of the F-22A aircraft at 
     Holloman Air Force Base, New Mexico, and urge the Air Force 
     to expeditiously complete such requirements.
     Report on CH-47 helicopter reset
       The House bill contained a provision (sec. 324) that would 
     require a report from the Secretary of the Army regarding 
     reset of all CH-47 helicopters in the Army inventory.
       The Senate amendment contained no similar provision.
       The House recedes.
     Report on nuclear attack submarine depot maintenance
       The House bill contained a provision (sec. 331) that would 
     require the Secretary of the Navy to submit a report on 
     criteria used when a nuclear attack submarine is sent for 
     maintenance to a facility other than a facility located at 
     the homeport of the submarine.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees direct the Secretary of the Navy to provide 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives the formal directive or guidance for 
     nuclear attack submarine maintenance once it is completed.
     Report on actions to reduce Department of Defense consumption 
         of petroleum-based fuel
       The Senate amendment contained a provision (sec. 354) that 
     would require the Secretary of Defense to report on the 
     actions taken, and to be taken, by the Department of Defense 
     to reduce the consumption of petroleum-based fuels.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the implementation of current 
     legislation and regulatory guidance should facilitate 
     reduction of petroleum-based fuels by the Department. 
     Therefore, the conferees direct the Secretary to submit a 
     report, not later than September 1, 2007, to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives on the status of implementation by the 
     Department of the requirements contained in the following:
       (1) Energy Policy Act of 2005 (Public Law 109-58);
       (2) Energy Policy Act of 1992 (Public Law 102-486);
       (3) Executive Order 13123;
       (4) Executive Order 13149; and
       (5) other regulations or directions relating to the 
     Department's consumption of petroleum-based fuels.
       Furthermore, the conferees are concerned that although 
     Flexible Fuel Vehicles (FFVs) are being introduced into the 
     Department's vehicle inventory, little reduction in 
     petroleum-based fuel is being realized because operators 
     continue to fuel the FFVs with gasoline rather than E85 (85 
     percent ethanol with 15 percent gasoline) or M85 (85 percent 
     methanol and 15 percent gasoline). Therefore, the conferees 
     direct the Secretary to include in the report an analysis of 
     the reduction of petroleum-based fuels since introduction of 
     FFVs into the inventory and an assessment of how the 
     Department might increase the consumption of E85 or M85 in 
     FFVs.
     Plan to replace equipment withdrawn or diverted from the 
         reserve components of the Armed Forces for Operation 
         Iraqi Freedom or Operation Enduring Freedom
       The Senate amendment contained identical provisions (secs. 
     356-357) that would require the Secretary of Defense to 
     submit to

[[Page 21087]]

     the congressional defense committees a plan to replace 
     equipment withdrawn or diverted from units of the reserve 
     components of the Armed Forces for use in Operation Iraqi 
     Freedom or Operation Enduring Freedom.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the reporting requirements of these 
     provisions are incorporated elsewhere in this report.
     Report on High Altitude Aviation Training Site, Eagle County, 
         Colorado
       The Senate amendment contained a provision (sec. 359) that 
     would require a report from the Secretary of the Army on the 
     High Altitude Aviation Training Site (HAATS) in Eagle County, 
     Colorado.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that a similar reporting requirement 
     already exists in the House Report accompanying H.R. 5122 (H. 
     Rept. 109-452) of the G.V. `Sonny' Montgomery National 
     Defense Authorization Act for Fiscal Year 2007.
     Report on use of alternative fuels by the Department of 
         Defense
       The Senate amendment contained a provision (sec. 360A) that 
     would require the Secretary of Defense to conduct a study on 
     the use of alternative fuels by the Armed Forces and the 
     defense agencies.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that section 357 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163) 
     requires a study on the use of biodiesel and ethanol fuels 
     containing at least 85 percent ethyl alcohol. The conferees 
     direct the Secretary of Defense to conduct a supplementary 
     study that would address each of the elements set forth in 
     paragraphs (1) through (7) of section 357(b) for the 
     following alternative fuels: biofuels other than biodiesel, 
     renewable diesel, ethanol that contains less than 85 percent 
     ethyl alcohol, cellulosic ethanol, and synthetic hydrocarbon-
     based fuels. The Secretary shall submit a report on the 
     results of such a study not later than 180 days after the 
     date of the enactment of this Act. The report may be 
     incorporated into, or provided as an annex to, the study 
     required by section 357(c).
     Additional exception to prohibition on contractor performance 
         of firefighting functions
       The Senate amendment contained a provision (sec. 363) that 
     would provide an exception to the prohibition on contracting 
     for the performance of certain firefighting functions on 
     military installations or facilities.
       The House bill contained no similar provision.
       The Senate recedes.
     Temporary security guard services for certain work caused by 
         realignment of military installations under the base 
         closure laws
       The Senate amendment contained a provision (sec. 364) that 
     would allow a military department to contract for security-
     guard services at installations being realigned under the 
     base closure laws.
       The House bill contained no similar provision.
       The Senate recedes.
     Joint Advertising, Market Research, and Studies Program
       The Senate amendment contained a provision (sec. 1416) that 
     would authorize $10.0 million in Operation and Maintenance, 
     Defense-wide for the Joint Advertising, Market Research, and 
     Studies program.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report in Operation and Maintenance, Defense-wide.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                     Legislative Provisions Adopted

                       Subtitle A--Active Forces

     End strengths for active forces (sec. 401)
       The House bill contained a provision (sec. 401) that would 
     authorize the following end strengths for active-duty 
     personnel of the armed forces as of September 30, 2007: Army, 
     512,400; Navy, 340,700; Marine Corps, 180,000; and Air Force, 
     334,200.
       The Senate amendment contained a similar provision (sec. 
     401).
       The Senate recedes.
       The conferees recommend end strength levels for active 
     forces for fiscal year 2007 as set forth in the following 
     table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             FY 2007                             Change from
                                                                FY 2006      ---------------------------------------------------------------------------
                         Service                               authorized                             Conferee                              FY 2006
                                                                                   Request         recommendation    FY 2007 request       authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army.....................................................            512,400            482,400            512,400             30,000                  0
Navy.....................................................            352,700            340,700            340,700                  0            -12,000
Marine Corps.............................................            179,000            175,000            180,000              5,000              1,000
Air Force................................................            357,400            334,200            334,200                  0            -23,200
                                                          ----------------------------------------------------------------------------------------------
    DoD Total............................................          1,401,500          1,332,300          1,367,300             35,000            -34,200
--------------------------------------------------------------------------------------------------------------------------------------------------------

     Revision in permanent active duty end strength minimum levels 
         (sec. 402)
       The House bill contained a provision (sec. 402) that would 
     establish new minimum active duty end strengths for the Army, 
     Navy, Marine Corps, and Air Force as of September 30, 2007.
       The Senate amendment contained a provision (sec. 402) that 
     would repeal section 691 of title 10, United States Code, 
     which establishes permanent end strength levels necessary to 
     support a national defense strategy to be able to conduct two 
     nearly simultaneous major regional contingencies.
       The Senate recedes with an amendment that would maintain 
     the minimum active duty end strength level for the Army at 
     the fiscal year 2006 level of 502,400.
       The conferees recommend minimum end strength levels for 
     active forces as set forth in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                                   2007           Change from
                                                              FY 2006      -------------------------------------
                        Service                              authorized         Conference
                                                                              recommendation        FY 2006
----------------------------------------------------------------------------------------------------------------
Army...................................................            502,400            502,400                  0
Navy...................................................            352,700            340,700            -12,000
Marine Corps...........................................            179,000            180,000              1,000
Air Force..............................................            357,400            334,200            -23,200
                                                        --------------------------------------------------------
    DoD Total..........................................          1,391,500          1,357,300            -34,200
----------------------------------------------------------------------------------------------------------------

     Additional authority for increases of Army and Marine Corps 
         active duty end strengths for fiscal years 2008 and 2009 
         (sec. 403)
       The House bill contained a provision (sec. 403) that would 
     authorize additional increases of active duty end strength 
     for the Army and for the Marine Corps in fiscal years 2008 
     and 2009 above the strengths authorized for those services in 
     fiscal year 2007. The provision would authorize an additional 
     20,000 troops for a total end strength of 532,400 for the 
     Army, and an additional 4,000 troops for a total end strength 
     of 184,000 for the Marine Corps, during fiscal years 2008 and 
     2009.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                       Subtitle B--Reserve Forces

     End strengths for Selected Reserve (sec. 411)
       The House bill contained a provision (sec. 411) that would 
     authorize the following end strengths for Selected Reserve 
     personnel, including the end strengths for reserves on active 
     duty in support of the reserves as of September 30, 2007: the 
     Army National Guard of the United States, 350,000; the Army 
     Reserve, 200,000; the Navy Reserve, 71,300; the Marine Corps 
     Reserve, 39,600; the Air National Guard of the United States, 
     107,000; the Air Force Reserve, 74,900; and the Coast Guard 
     Reserve, 10,000.
       The Senate amendment contained an identical provision (sec. 
     411).
       The conference agreement includes this provision.
       The conferees recommend end strength levels for the 
     Selected Reserve for fiscal year 2007 as set forth in the 
     following table:

[[Page 21088]]



--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             FY 2007                             Change from
                                                                FY 2006      ---------------------------------------------------------------------------
                         Service                               authorized                             Conferee                              FY 2006
                                                                                   Request         recommendation    FY 2007 request       authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army National Guard......................................            350,000            350,000            350,000                  0                  0
Army Reserve.............................................            205,000            200,000            200,000                  0             -5,000
Navy Reserve.............................................             73,100             71,300             71,300                  0             -1,800
Marine Corps Reserve.....................................             39,600             39,600             39,600                  0                  0
Air National Guard.......................................            106,800            107,000            107,000                  0               +200
Air Force Reserve........................................             74,000             74,900             74,900                  0               +900
                                                          ----------------------------------------------------------------------------------------------
    DoD Total............................................            848,500            842,800            842,800                  0             -5,700
Coast Guard Reserve......................................             10,000             10,000             10,000                  0                  0
--------------------------------------------------------------------------------------------------------------------------------------------------------

       Should Army National Guard end strength fall below the 
     authorized number, the conferees direct that the unused 
     additional funds may only be used for Army National Guard 
     priorities, and only after the Department of Defense complies 
     with the normal budget process that includes submitting prior 
     notification and a detailed justification to Congress.
       Although agreeing to reduce Army Reserve end strength for 
     fiscal year 2007 to 200,000, as requested in the President's 
     budget, the conferees are concerned that this end strength 
     authorization is not adequate to sustain the combat support 
     and combat service support structure that the Army Reserve 
     will be required to provide to the Army's future modular 
     force.
       Notwithstanding this end strength reduction, the conferees 
     note that the Secretary of Defense is authorized under 
     section 115 of title 10, United States Code, to vary, by not 
     more than 2 percent, the end strength authorized for a fiscal 
     year for the Selected Reserve of any of the reserve 
     components and would expect such authority to be granted to 
     increase the Army Reserve end strength during fiscal year 
     2007, if required.
       Furthermore, the conferees urge the Secretary of the Army 
     to maintain an Army Reserve end strength of 205,000 as a 
     recruiting goal and that the President's budget for fiscal 
     years 2008-2013 request an Army Reserve end strength of 
     205,000, and provide a corresponding increase in Army full-
     time support personnel, if the Army Reserve can recruit to 
     that level.
     End strengths for Reserves on active duty in support of the 
         reserves (sec. 412)
       The House bill contained a provision (sec. 412) that would 
     authorize the following end strengths for Reserves on active 
     duty in support of the reserve components as of September 30, 
     2007: the Army National Guard of the United States, 28,165; 
     the Army Reserve, 15,416, the Navy Reserve, 12,564; the 
     Marine Corps Reserve, 2,261; the Air National Guard of the 
     United States, 13,291; and the Air Force Reserve, 2,707.
       The Senate amendment contained a similar provision (sec. 
     412) that would authorize end strengths of 27,441 for the 
     Army National Guard of the United States, 13,206 for the Air 
     National Guard of the United States, and identical end 
     strengths for the other services.
       The Senate recedes with an amendment that would authorize 
     end strengths of 27,441 for the Army National Guard of the 
     United States.
       The conferees recommend end strength levels for Reserves on 
     active duty in support of the reserves as set forth in the 
     following table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             FY 2007                             Change from
                                                                FY 2006      ---------------------------------------------------------------------------
                         Service                               authorized                             Conferee                              FY 2006
                                                                                   Request         recommendation    FY 2007 request       authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army National Guard......................................             27,396             27,441             27,441                  0                 45
Army Reserve.............................................             15,270             15,416             15,416                  0                146
Naval Reserve............................................             13,392             12,564             12,564                  0               -828
Marine Corps Reserve.....................................              2,261              2,261              2,261                  0                  0
Air National Guard.......................................              3,123             13,206             13,291                 85                168
Air Force Reserve........................................              2,290              2,707              2,707                  0                417
                                                          ----------------------------------------------------------------------------------------------
    DoD Total............................................             73,732             73,595             73,680                 85                -52
--------------------------------------------------------------------------------------------------------------------------------------------------------

       In addition to the budget request, the end strengths 
     recommended by the conferees would include an additional 85 
     Reserves on active duty in support of the Air National Guard 
     for the purpose set out in the House report accompanying H.R. 
     5122 (H. Rept. 109-452) of the National Defense Authorization 
     Act for Fiscal Year 2007.
     End strengths for military technicians (dual status) (sec. 
         413)
       The House bill contained a provision (sec. 413) that would 
     authorize the following end strengths for military 
     technicians (dual status) as of September 30, 2007: the Army 
     National Guard of the United States, 27,615; the Army 
     Reserve, 7,912; the Air National Guard of the United States, 
     23,255; and the Air Force Reserve, 10,124.
       The Senate amendment contained a similar provision (sec. 
     413) that would authorize an end strength for military 
     technicians (dual status) for the Army National Guard of the 
     United States of 26,050, and identical end strengths for the 
     other reserve components.
       The House recedes.
       The conferees recommend end strength levels for military 
     technicians (dual status) as set forth in the following 
     table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             FY 2007                             Change from
                                                                FY 2006      ---------------------------------------------------------------------------
                         Service                               authorized                             Conferee                              FY 2006
                                                                                   Request         recommendation    FY 2007 request       authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army National Guard......................................             25,563             26,050             26,050                  0                487
Army Reserve.............................................              7,649              7,912              7,912                  0                263
Air National Guard.......................................             22,971             23,255             23,255                  0                284
Air Force Reserve........................................              9,852             10,124             10,124                  0                272
                                                          ----------------------------------------------------------------------------------------------
    DoD Total............................................             66,035             67,341             67,341                  0              1,306
--------------------------------------------------------------------------------------------------------------------------------------------------------

     Fiscal year 2007 limitation on number of non-dual status 
         technicians (sec. 414)
       The House bill contained a provision (sec. 414) that would 
     establish the maximum end strengths for the reserve 
     components of the Army and Air Force for non-dual status 
     technicians as of September 30, 2007.
       The Senate amendment contained an identical provision (sec. 
     414).
       The conference agreement includes this provision.
     Maximum number of reserve personnel authorized to be on 
         active duty for operational support (sec. 415)
       The House bill contained a provision (sec. 415) that would 
     authorize the maximum number of reserve component personnel 
     who may be on active duty or full-time National Guard duty 
     under section 115(b) of title 10, United States Code, during 
     fiscal year 2007 to provide operational support.
       The Senate amendment contained an identical provision (sec. 
     415).
       The conference agreement includes this provision.

              Subtitle C--Authorization of Appropriations

     Military personnel (sec. 421)
       The House bill contained a provision (sec. 421) that would 
     authorize a total of $109,820.5 million to be appropriated to 
     the Department of Defense in fiscal year 2007 for military 
     personnel.
       The Senate amendment contained a similar provision (sec. 
     421) that would authorize a total of $111,928.5 million.
       The Senate recedes with an amendment that would authorize 
     $110,098.6 million to be appropriated to the Department of 
     Defense in fiscal year 2007 for military personnel.

[[Page 21089]]

       The conferees agree to the following changes from the 
     budget request related to the military personnel accounts:

                             [In millions]

Additional special pay for dental officers........................$ 4.0
Incentives for High-Demand, Low-Density Assignments.................5.0
Commissioned Officers as Students at Medical Schools................1.0
Educational Loan Repayment for Health Professionals.................4.0
Health Professions Scholarships....................................91.0
Recruitment Bonus for Critical Health Care Specialties.............19.0
Unobligated balances, Army........................................-31.4
Unobligated balances, Navy........................................-85.0
Unobligated balances, Marine Corps................................-88.1
Unobligated balances, Air Force..................................-248.3
Unobligated balances, Army Reserve................................-66.5
Unobligated balances, Navy Reserve................................-17.3
Unobligated balances, Marine Corps Reserve........................-15.4
Unobligated balances, Air Force Reserve...........................-25.8
Unobligated balances, Army National Guard.........................-84.5
Unobligated balances, Air National Guard..........................-89.9
Reserves cost avoidance, Army Reserve.............................-20.9
Reserves cost avoidance, Air Force Reserve.........................-0.8
Reserves cost avoidance, Air National Guard.......................-28.3
                                                       ________________
                                                       
  Total..........................................................-678.1

       The conferees note that in addition to the amounts shown 
     above, $8,107.0 million was made available in title XV of 
     this Act for the additional costs of military personnel 
     involved in ongoing operations in Iraq and Afghanistan.
     Armed Forces Retirement Home (sec. 422)
       The House bill contained a provision (sec. 422) that would 
     authorize $54.8 million to be appropriated for fiscal year 
     2007 from the Armed Forces Retirement Home Trust Fund for 
     operation of the Armed Forces Retirement Home.
       The Senate amendment contained an identical provision (sec. 
     422).
       The conference agreement includes this provision.

                   TITLE V--MILITARY PERSONNEL POLICY

                        Item of Special Interest

     Department of Defense oversight of recruiter misconduct
       The conferees are concerned that military recruiter 
     misconduct, and particularly misconduct involving criminal or 
     otherwise improper sexual contact with recruit candidates, 
     irreparably harms the young people involved, erodes the moral 
     and ethical standards that are the hallmark of the U.S. Armed 
     Forces, and damages public support for military operations 
     and recruiting by undermining the trust and high esteem that 
     the American people place in their military forces. The 
     conferees believe that recruiter misconduct must not be 
     tolerated and that the Secretary of Defense, the Secretaries 
     of the military departments, and the uniformed leaders of the 
     Armed Forces must take decisive action to ensure that 
     policies and procedures effectively prevent and, when 
     required, respond to incidents of misconduct.
       The conferees direct the Secretary of Defense to review the 
     programs designed to prevent recruiter misconduct and, when 
     misconduct does occur, the policies and procedures needed to 
     standardize identification and reporting throughout the 
     Department of Defense. The conferees direct that the review 
     also include an assessment of the ``No One Alone Policy'' 
     established by the State of Indiana National Guard to limit 
     unsupervised contact between recruiters and recruit 
     candidates of the opposite gender to determine if the policy 
     is suitable for Department-wide implementation. The conferees 
     direct the Secretary of Defense to submit the results of the 
     review, including findings, conclusions, and recommendations, 
     by March 1, 2007, to the Committees on Armed Services of the 
     Senate and the House of Representatives.

                     Legislative Provisions Adopted

                  Subtitle A--Officer Personnel Policy


               Part I--Officer Personnel Policy Generally

     Military status of officers serving in certain intelligence 
         community positions (sec. 501)
       The House bill contained a provision (sec. 505) that would 
     clarify the status of flag and general officers assigned to 
     certain positions in the Office of the Director of National 
     Intelligence and the Central Intelligence Agency. The 
     provision would protect the officers and organizations 
     concerned from perceptions of organizational conflicts of 
     interest or inappropriate influence.
       The Senate amendment contained a similar provision (sec 
     501).
       The Senate recedes with a technical amendment.
     Extension of age for mandatory retirement for active-duty 
         general and flag officers (sec. 502)
       The Senate amendment contained a provision (sec. 503) that 
     would amend section 1251 of title 10, United States Code, to 
     increase the age for mandatory retirement for general and 
     flag officers from 62 to 64. The provision would authorize 
     the Secretary of Defense to defer retirement of officers 
     serving in grades above major general and rear admiral to age 
     66 and the President to defer retirement for such officers 
     until age 68. The provision would also eliminate the 
     numerical limit on the number of deferments of retirement 
     that may be in effect at any one time.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     amend section 1251 and add a new section 1253 to chapter 63 
     of title 10, United States Code.
     Increased mandatory retirement ages for reserve officers 
         (sec. 503)
       The Senate amendment contained a provision (sec. 508) that 
     would increase the mandatory retirement age for reserve 
     component officers in the grade of O-8 from 62 to 64 years; 
     for officers in the grade of O-7 from 60 to 62 years; and for 
     officers in grades below O-7 from 60 to 62 years. The 
     provision would also increase the mandatory retirement age of 
     officers holding certain offices, such as the Chief of the 
     National Guard Bureau, Chiefs of Reserve of the services, 
     Directors of the Army and Air National Guard, and the 
     adjutants general of the States, from 64 to 66 years.
       The House bill contained no similar provision.
       The House recedes.
     Standardization of grade of senior dental officer of the Air 
         Force with that of senior dental officer of the Army 
         (sec. 504)
       The House bill contained a provision (sec. 502) that would 
     amend section 8081 of title 10, United States Code, to 
     require that the officer serving as the Assistant Surgeon 
     General for Dental Services in the Air Force be appointed in 
     the grade of major general.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Management of chief warrant officers (sec. 505)
       The House bill contained a provision (sec. 503) that would 
     amend section 580 of title 10, United States Code, to 
     eliminate the requirement for a mandatory continuation board 
     in the case of chief warrant officers, W-4, who have twice 
     failed to be selected for promotion and allow service 
     secretaries in their discretion to retain such chief warrant 
     officers on active duty. The provision would also modify 
     section 1305 of title 10, United States Code, to increase the 
     years of service from 24 to 30 that a warrant officer may 
     serve on active duty before mandatory retirement.
       The Senate amendment contained a similar provision (sec. 
     507).
       The Senate recedes with an amendment that would specify 
     that chief warrant officers retained on active duty after 
     twice failing to be selected for promotion to the grade of W-
     5 would continue to be eligible for promotion while remaining 
     on active duty.
     Extension of temporary reduction of time-in-grade requirement 
         for eligibility for promotion for certain active-duty 
         list officers in grades of first lieutenant and 
         lieutenant (junior grade) (sec. 506)
       The House bill contained a provision (sec. 504) that would 
     amend section 619(a) of title 10, United States Code, to make 
     permanent the authority to promote officers in the grade of 
     first lieutenant or lieutenant (junior grade) who satisfy a 
     time-in-grade requirement of at least 18 months.
       The Senate amendment contained a provision (sec. 502) that 
     would extend the existing authority for promotion for these 
     officers from October 1, 2005, through October 1, 2008.
       The House recedes.
     Grade and exclusion from active-duty general and flag officer 
         distribution and strength limitations of officer serving 
         as Attending Physician to the Congress (sec. 507)
       The Senate amendment contained a provision (sec. 506) that 
     would add section 722 to chapter 41 and amend section 12210 
     of title 10, United States Code, to provide that an active-
     duty or reserve general or flag officer, while serving as the 
     Attending Physician to the Congress, would hold the grade of 
     major general or rear admiral and be excluded from the 
     numerical and distribution requirements of sections 525 and 
     526 of title 10, United States Code.
       The House bill contained no similar provision.
       The House recedes.
     Modification of qualifications for leadership of the Naval 
         Postgraduate School (sec. 508)
       The Senate amendment contained a provision (sec. 509) that 
     would authorize a retired officer of the Navy or Marine Corps 
     in the grade of captain or colonel or above, respectively, to 
     be selected by the Secretary of the Navy to serve as 
     President of the Naval Postgraduate School so long as they 
     meet the same qualifications required of active-

[[Page 21090]]

     duty officers, including holding a doctorate or master's 
     degree in a field of study relevant to the mission and 
     function of the Naval Postgraduate School.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize a 
     civilian, including a retired officer of the Navy or Marine 
     Corps not below the grade of captain or colonel, 
     respectively, to be selected by the Secretary as the best 
     qualified from among candidates for the position in 
     accordance with specified criteria, through a process to be 
     determined by the Secretary, and taking into consideration 
     other factors the Secretary considers essential. Before 
     making a selection the Secretary would be required to consult 
     with the Board of Advisors for the Naval Postgraduate School, 
     consider any recommendation of the leadership and faculty of 
     the Naval Postgraduate School, and consider the 
     recommendations of the Chief of Naval Operations and the 
     Commandant of the Marine Corps. The amendment would further 
     require that an individual selected as President hold a 
     doctorate degree if the individual permanently selected as 
     Provost and Academic Dean does not.


                   Part II--Officer Promotion Policy

     Revisions to authorities relating to authorized delays of 
         officer promotions (sec. 511)
       The Senate amendment contained a provision (sec. 515) that 
     would amend sections 624 and 14311 of title 10, United States 
     Code, relating to promotion procedures. The provision would 
     specify that a promotion list that requires Senate 
     confirmation shall be treated as being established for 
     purposes of chapter 38 of title 10 on the date the list is 
     received by the Senate for consideration; and would require 
     the Secretary of Defense, not later than March 1, 2008, to 
     prescribe regulations controlling delays in appointment 
     following Senate confirmation under sections 624 and 14311. 
     The provision would also clarify that delays in appointment 
     to higher grade are warranted by the need to review 
     substantiated and potentially adverse information that may be 
     material to the decision on whether or not to appoint based 
     on a determination that an officer has not fulfilled the 
     requirements for exemplary conduct for commanding officers 
     and those in positions of authority.
       The House bill contained no similar provision.
       The House recedes with an amendment that would specify that 
     a promotion list that requires Senate confirmation shall be 
     treated as being established upon approval of a report of a 
     selection board by the President.
     Consideration of adverse information by selection boards in 
         recommendations on officers to be promoted (sec. 512)
       The Senate amendment contained a provision (sec. 516) that 
     would amend sections 616(c) and 14108(b) of title 10, United 
     States Code, to require that a promotion selection board may 
     not recommend an officer for promotion unless a majority of 
     the members of the board, after consideration by all the 
     board members of any adverse information about the officer 
     that is provided to the board under section 615 of title 10, 
     United States Code, finds that the officer is among those 
     best qualified for promotion to meet the needs of the armed 
     force concerned consistent with the requirement of exemplary 
     conduct set forth in sections 3583, 5947, and 8583 of title 
     10, United States Code. The House bill contained no similar 
     provision.
       The House recedes with a technical amendment.
     Expanded authority for removal from reports of selection 
         boards of officers recommended for promotion to grades 
         below general and flag grades (sec. 513)
       The Senate amendment contained a provision (sec. 517) that 
     would amend sections 618(d) and 14111(b) of title 10, United 
     States Code, to authorize the Secretary of Defense and the 
     Deputy Secretary of Defense, in addition to the President, to 
     remove the name of an officer from the report of a selection 
     board with respect to officers being recommended for 
     promotion to grades below brigadier general and rear admiral 
     (lower half).
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Special selection board authorities (sec. 514)
       The Senate amendment contained a provision (sec. 519) that 
     would amend sections 628 and 14502 of title 10, United States 
     Code, to limit the availability of special selection boards 
     only to officers under consideration for promotion who are in 
     or above the primary promotion zones. The provision would 
     also limit the requirement to convene special selection 
     boards only to those cases in which material error may have 
     occurred. The provision would further clarify that errors in 
     the conduct of active and reserve selection boards must be 
     determined by the service secretaries to be material to the 
     outcome of the board's determination for relief to be 
     afforded.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Removal from promotion list of officers not promoted within 
         18 months of approval of list by the President (sec. 515)
       The Senate amendment contained a provision (sec. 520) that 
     would amend sections 629 and 14310 of title 10, United States 
     Code, to clarify the conditions under which officers whose 
     nominations require the advice and consent of the Senate for 
     promotion or appointment and who have not received the advice 
     and consent of the Senate would be removed from promotion 
     lists.
       The House bill contained no similar provision.
       The House recedes with an amendment that would establish a 
     promotion eligibility period for officers beginning on the 
     date of approval by the President of a promotion list for 
     officers on that list and ending 18 months later. This period 
     could be extended by the President for an additional 12 
     months. The amendment would require that an officer's name be 
     removed from the promotion list as of the end of the period 
     of promotion eligibility unless the Senate has given its 
     advice and consent to the appointment of that officer. The 
     provision would apply to any promotion list approved by the 
     President after January 1, 2007.


            Part III--Joint Officer Management Requirements

     Modification and enhancement of general authorities on 
         management of officers who are joint qualified (sec. 516)
       The Senate amendment contained a provision (sec. 526) that 
     would amend section 661 of title 10, United States Code, to 
     restructure the system for designation and management of 
     officers who are joint qualified. The provision would 
     implement the recommendation made by the Department of 
     Defense in its strategic plan to link joint officer 
     development to overall missions and goals of the Department 
     of Defense, as required by section 531 of the Ronald W. 
     Reagan National Defense Authorization Act of Fiscal Year 2005 
     (Public Law 108-375).
       The House bill contained no similar provision.
       The House recedes with an amendment that would permit the 
     Secretary of Defense, with the advice of the Chairman of the 
     Joint Chiefs of Staff, to designate as joint qualified those 
     officers who successfully complete a full tour of duty in a 
     joint assignment as well as those officers who demonstrate 
     mastery of knowledge, skills, and abilities in joint matters 
     as a result of their assignments and experience as determined 
     under such regulations and policy as the Secretary may 
     prescribe. The amendment would make this provision effective 
     on October 1, 2007, and require the Secretary, not later than 
     March 31, 2007, to submit a plan for its implementation. The 
     amendment would support modifications in joint officer 
     management that would rely on a capabilities-based system in 
     which experience, education, and performance are evaluated in 
     an officer's progression to higher levels of qualification.
     Modification of promotion policy objectives for joint 
         officers (sec. 517)
       The Senate amendment contained a provision (sec. 527) that 
     would amend section 662(a) of title 10, United States Code, 
     to repeal the requirement for a separate promotion policy 
     objective for officers who have the joint specialty or who 
     are designated as joint qualified. The provision would 
     require the Secretary of Defense to ensure that officers who 
     are serving in or have served in joint duty assignments, 
     including those officers who previously have been designated 
     as joint specialty officers and are determined to be joint 
     qualified under the changes to section 661 of title 10, 
     United States Code, included in this Act, are expected, as a 
     group, to be promoted to the next higher grade at a rate not 
     less than the rate for all officers of the same armed force 
     in the same grade and competitive category.
       The House bill contained no similar provision.
       The House recedes.
     Applicability of joint duty assignment requirements limited 
         to graduates of National Defense University schools (sec. 
         518)
       The Senate amendment contained a provision (sec. 528) that 
     would amend section 663 of title 10, United States Code, to 
     specify that joint professional military education (JPME) 
     schools for purposes of this section are limited to schools 
     within the National Defense University. The provision would 
     limit the effect of the requirement that more than 50 percent 
     of officers completing the second phase of JPME must be 
     assigned to joint duty assignments as those officers' next 
     duty assignments following graduation.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Modification of certain definitions relating to jointness 
         (sec. 519)
       The Senate amendment contained a provision (sec. 529) that 
     would amend section 668 of title 10, United States Code, to 
     revise the definition of the term ``joint matters.'' The 
     provision would also modify the definition of ``joint duty 
     assignments'' to broaden the assignments that may be 
     considered and recognize the value of certain assignments 
     within the services and to add a definition to section 668 of 
     the term ``critical occupational specialty.''

[[Page 21091]]

       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     definition of the term joint matters to mean matters related 
     to the achievement of unified action by multiple military 
     forces in operations conducted across domains such as land, 
     sea, or air, in space, or in the information environment. The 
     amendment would specify that the definition of joint duty 
     does not include duty as a student or trainee for joint 
     training and education. Under the definition of critical 
     occupational specialty, the amendment would require, at a 
     minimum, that the Secretary of Defense designate as critical 
     occupational specialties any military occupational 
     specialties within combat arms (or the equivalent) that the 
     Secretary determines are experiencing severe shortages of 
     trained officers.

                  Subtitle B-Reserve Component Matters


                  Part I--Reserve Component Management

     Recognition of former Representative G.V. ``Sonny'' 
         Montgomery for his 30 years of service in the House of 
         Representatives (sec. 521)
       The conferees agree to include a provision that would 
     recognize former Representative G.V. ``Sonny'' Montgomery (D-
     MS) for his 30 years of service in the House of 
     Representatives, particularly his service as Chairman of the 
     Committee on Veterans' Affairs and his contributions to the 
     National Guard and Reserves.
     Revisions to reserve call-up authority (sec. 522)
       The House bill contained a provision (sec. 511) that would 
     extend from 270 days to 365 days the period for which members 
     of the Selected Reserve and Individual Ready Reserve may be 
     involuntarily called to active duty to support operational 
     missions other than during war or national emergency and 
     would authorize recall of such reserve component members to 
     provide assistance during a serious natural or manmade 
     disaster, accident, or catastrophe.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would extend from 
     270 days to 365 days the maximum period for which such 
     members of the reserve components may be involuntarily called 
     to active duty.
     Military retirement credit for certain service by National 
         Guard members performed while in a State duty status 
         immediately after the terrorist attacks of September 11, 
         2001 (sec. 523)
       The House bill contained a provision (sec. 512) that would 
     authorize military retirement credit for certain members of 
     the Army National Guard or the Air National Guard who served 
     in a full-time state active duty status in specified counties 
     in New Jersey in support of the federal declaration of 
     emergency following the terrorist attacks on the United 
     States of September 11, 2001.
       The Senate amendment contained no similar provision.
       The Senate recedes.


        Part II--Authorities Relating to Guard and Reserve Duty

     Title 10 definition of Active Guard and Reserve duty (sec. 
         524)
       The House bill contained a provision (sec. 541) that would 
     establish a new definition of ``Active Guard and Reserve'' in 
     section 101 of title 10, United States Code, and would also 
     clarify the definition of ``Active Guard and Reserve duty'' 
     in the same section.
       The Senate amendment contained a similar provision (sec. 
     531).
       The Senate recedes.
     Authority for Active Guard and Reserve duties to include 
         support of operational missions assigned to the reserve 
         components and instruction and training of active-duty 
         personnel (sec. 525)
       The House bill contained a provision (sec. 542) that would 
     authorize reserve component personnel performing Active Guard 
     and Reserve duty, as well as military technicians (dual 
     status), to perform additional duties to support operations 
     or missions assigned to, or performed by, the reserve 
     components and to instruct or train active-duty members of 
     the Armed Forces, foreign military forces, and Department of 
     Defense civilian employees and contractors. The provision 
     would authorize the performance of the specified additional 
     duties to the extent that such duties do not interfere with 
     the primary duties of personnel on Active Guard and Reserve 
     duty, and military technicians (dual status), of organizing, 
     administering, recruiting, instructing, or training the 
     reserve components. The provision would also limit the 
     instructional or training duty only to that conducted in the 
     United States, its possessions, and the Commonwealth of 
     Puerto Rico. The provision would further authorize personnel 
     performing National Guard duty under section 502(f) of title 
     32, United States Code, to support operations or missions 
     undertaken by the member's unit at the request of the 
     President or the Secretary of Defense, and to support 
     training operations and training missions assigned in whole 
     or in part to the National Guard by the Secretary concerned.
       The Senate amendment contained a similar provision (sec. 
     531).
       The Senate recedes with a clarifying amendment.
     Governor's authority to order members to Active Guard and 
         Reserve duty (sec. 526)
       The House bill contained a provision (sec. 543) that would 
     authorize the governor of a State, the Commonwealth of Puerto 
     Rico, Guam, the Virgin Islands, or the commanding general of 
     the District of Columbia National Guard to order members of 
     the National Guard to perform Active Guard and Reserve duty 
     under title 32, United States Code, to support operations or 
     missions at the request of the President or the Secretary of 
     Defense, or to support training operations and training 
     missions assigned in whole or in part by the Secretary 
     concerned to the National Guard.
       The Senate amendment contained a similar provision (sec. 
     531).
       The Senate recedes with a clarifying amendment.
     Expansion of operations of civil support teams (sec. 527)
       The House bill contained a provision (sec. 545) that would 
     expand the types of emergencies for which members of the 
     reserve components who are assigned to weapons of mass 
     destruction civil support teams (WMD-CSTs) could be deployed 
     to include the intentional or unintentional release of 
     nuclear, biological, radiological, toxic or poisonous 
     chemical materials; or natural or manmade disasters that 
     could result in the catastrophic loss of life or property.
       The Senate amendment contained a similar provision (sec. 
     532).
       The Senate recedes.
       The conferees note that WMD-CSTs are a limited resource, 
     and as such, their employment, other than for training and 
     preparation, under the expanded authorities recommended by 
     this section should consider the following: (1) whether the 
     resources of local governments and other State resources may 
     be or are overwhelmed by the scope and scale of the actual 
     disaster; or (2) whether other State, local, and first-
     responder technical equipment and capabilities will be or are 
     inadequate to address the potential threat.
     Modification of authorities relating to the Commission on the 
         National Guard and Reserves (sec. 528)
       The House bill contained a provision (sec. 594(a)) that 
     would amend section 513 of the Ronald W. Reagan National 
     Defense Authorization Act for Fiscal Year 2005 (Public Law 
     108-375) to extend the deadline by 6 months for submission of 
     a final report by the Commission on the National Guard and 
     Reserves.
       The Senate amendment contained a similar provision (sec. 
     533) that would extend the commission's deadline for 
     submission of a final report from 12 to 18 months after its 
     first meeting. The provision would also authorize the 
     chairman of the commission to exercise the same waiver 
     authority regarding eligibility by annuitants for pay as 
     would be available to the Director of the Office of Personnel 
     Management under sections 8344(i)(1) and 8468(f)(1) of title 
     5, United States Code.
       The House recedes with an amendment that would require 
     submission of the final report of the commission not later 
     than January 31, 2008.
     Additional matters to be reviewed by Commission on the 
         National Guard and Reserves (sec. 529)
       The House bill contained a provision (sec. 594(b)) that 
     would direct the Commission on the National Guard and 
     Reserves to study and report to Congress by March 1, 2007, on 
     the advisability and feasibility of implementing the 
     provisions contained in the National Defense Enhancement and 
     National Guard Empowerment Act of 2006 (H.R. 5200); whether 
     the Chief of the National Guard Bureau should serve in the 
     grade of general in the performance of the current duties of 
     that office; and whether the Department of Defense processes 
     for defining the equipment and funding necessary for the 
     National Guard to perform its responsibilities are adequate.
       The Senate amendment contained provisions (secs. 931-933) 
     that would make the National Guard Bureau a joint activity of 
     the Department; make the Chief of the National Guard Bureau 
     the principal advisor to the Secretary of Defense and the 
     Chairman of the Joint Chiefs of Staff on National Guard 
     matters; elevate the grade of the Chief of the National Guard 
     Bureau to general; require the Chief of the National Guard 
     Bureau to identify gaps between Federal and State 
     capabilities to prepare for and respond to emergencies and 
     make recommendations to the Secretary of Defense on the 
     provision of military assistance to civil authorities; and 
     require that the position of Deputy Commander, U.S. Northern 
     Command, be filled by a National Guard officer eligible for 
     promotion to the grade of lieutenant general.
       The Senate recedes with an amendment that would add 
     additional matters to be referred to the commission, 
     including a review on the advisability and feasibility of 
     authorizing National Guard officers to serve in both Federal 
     status under title 10, United States Code, and State status 
     under title 32, United States Code, as a means of achieving 
     unity of command of units that are composed of both active-
     duty members and National Guard personnel. The commission 
     would be required to submit a report on the results of

[[Page 21092]]

     the review by March 1, 2007, to the Committees on Armed 
     Services of the Senate and the House of Representatives.
       The conferees note the importance of the National Guard to 
     the national defense and the need for effective coordination 
     of National Guard matters between the Chief of the National 
     Guard Bureau and the Secretary of Defense, Chairman of the 
     Joint Chiefs of Staff, the Secretary of the Army, and the 
     Secretary of the Air Force.
       The conferees, therefore, direct the commission to evaluate 
     the proposals referred to it by this section taking into 
     consideration the following:
       The impact that making the National Guard Bureau a joint 
     activity of the Department, and authorizing the Secretary of 
     Defense to develop the charter of the National Guard Bureau, 
     would have on integration of the Army National Guard and Air 
     National Guard into the Army and Air Force, respectively.
       Whether authorizing the Chief of the National Guard Bureau 
     to be the principal advisor to the Secretary of Defense and 
     the Chairman of the Joint Chiefs of Staff on matters relating 
     to the National Guard would have the effect of establishing 
     the National Guard as a separate service; and if so, the 
     implications of that effect.
       Whether authorizing the Chief of the National Guard Bureau 
     to be a member of the Joint Chiefs of Staff is consistent 
     with the statutory responsibilities of the service chiefs and 
     the role of the service chiefs to provide military advice to 
     the President, the National Security Council, and the 
     Secretary of Defense.
       How elevating the grade of the Chief of the National Guard 
     Bureau to general would impact relationships with and the 
     authorized grades of the other Chiefs of the reserve 
     components, the Director of the Army National Guard, and the 
     Director of the Air National Guard.
       Whether requiring the Chief of the National Guard Bureau to 
     identify gaps between Federal and State capabilities to 
     prepare for and respond to emergencies and to make 
     recommendations to the Secretary of Defense on National Guard 
     programs for military assistance to civil authorities is an 
     appropriate role for the Chief of the National Guard Bureau, 
     whether the Chief of the National Guard Bureau is qualified 
     to make such an assessment, and whether this authority 
     impinges on the authority of Federal and State civilian 
     officials.
       Whether the scope and complexities of the duties and 
     responsibilities of the position of Deputy Commander, U.S. 
     Northern Command, require that they be carried out by two 
     officers, each in the grade of O-9, one of whom would be a 
     National Guard officer eligible for promotion to that grade.

                   Subtitle C--Education and Training


                       Part I--Service Academies

     Expansion of service academy exchange programs with foreign 
         military academies (sec. 531)
       The House bill contained a provision (sec. 524) that would 
     expand from 24 to 100 the number of cadets and midshipmen at 
     the U.S. Military Academy, Air Force Academy, and Naval 
     Academy, respectively, who may participate in exchange 
     programs with foreign military academies. The provision would 
     also increase from $120,000 to $1.0 million the amount of 
     appropriated funds that each service academy could expend 
     during any fiscal year in support of the exchange program. 
     The provision would further authorize the service academies 
     to expend additional funds as may be available to the academy 
     from a source other than appropriated funds to support 
     cultural immersion, regional awareness, or foreign language 
     training activities in connection with the exchange program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees do not intend that the additional funding 
     from other than appropriated sources be used to fund exchange 
     students in excess of the number set by this provision.
     Revision and clarification of requirements with respect to 
         surveys and reports concerning sexual harassment and 
         sexual violence at the service academies (sec. 532)
       The Senate amendment contained a provision (sec. 567) that 
     would change the frequency of the service academy sexual 
     assault survey and report to Congress from an annual to a 
     biennial requirement, extend the period for the surveys and 
     reports from 2008 to 2010, clarify that the subject of the 
     required policy and report is sexual harassment and sexual 
     violence, and clarify that the policy and survey are directed 
     at cadets and midshipmen.
       The House bill contained no similar provision.
       The House recedes with an amendment that would codify in 
     title 10, United States Code, the requirement for each 
     Secretary of the military department to prescribe a policy on 
     sexual harassment and sexual violence applicable to cadets or 
     midshipmen and other personnel of each service academy. The 
     amendment would require an annual assessment to determine the 
     effectiveness of the policies, training, and procedures of 
     the academy, and an annual report to the Committees on Armed 
     Services of the Senate and the House of Representatives. The 
     amendment would also require that the annual assessment be 
     conducted by a survey of academy personnel to include cadets 
     and midshipmen, and other academy personnel from the faculty 
     and administration selected for such participation, if any, 
     with respect to academy program years that begin in an odd-
     numbered calendar year. In any year in which a survey is not 
     required, the Secretary concerned would be required to 
     provide focus groups for the purposes of ascertaining 
     information relating to sexual assault and sexual harassment 
     issues at that academy.
     Department of Defense policy on service academy and ROTC 
         graduates seeking to participate in professional sports 
         before completion of their active-duty service 
         obligations (sec. 533)
       The Senate amendment contained a provision (sec. 568) that 
     would require the Secretary of Defense to prescribe a policy, 
     not later than July 1, 2007, on whether to authorize service 
     academy and Reserve Officers' Training Corps graduates to 
     participate in professional sports before completion of their 
     active-duty service obligation, and if so, on the active-duty 
     service obligations of such personnel. The provision would 
     require the Secretary of each military department to 
     prescribe regulations, or modify current regulations, to 
     implement the policy of the Secretary of Defense by no later 
     than December 1, 2007.
       The House bill contained no similar provision.
       The House recedes.


         Part II--Scholarship and Financial Assistance Programs

     Authority to permit members who participate in the guaranteed 
         reserve forces duty scholarship program to participate in 
         the health professions scholarship program and serve on 
         active duty (sec. 535)
       The House bill contained a provision (sec. 521) that would 
     authorize the Secretary of the Army to modify agreements 
     entered into by cadets in the Reserve Officers' Training 
     Corps who participate in the Guaranteed Reserve Forces Duty 
     Scholarship Program so that a cadet or former cadet could 
     receive assistance under the Health Professions Scholarship 
     Program and serve on active duty.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Detail of commissioned officers as students at medical 
         schools (sec. 536)
       The Senate amendment contained a provision (sec. 561) that 
     would authorize the Secretary of a military department to 
     detail up to 25 commissioned officers each year as students 
     at accredited medical schools or schools of osteopathy. To be 
     eligible, an officer must agree to service on active duty for 
     2 years for each year of medical training.
       The House bill contained no similar provision.
       The House recedes with an amendment that would allow an 
     officer to serve their full service active duty obligation, 
     or to complete a portion of their obligation in the Selected 
     Reserve. The amendment would require that officers assigned 
     to the Selected Reserve serve 3 years in the Selected Reserve 
     for each year of medical training received prior to 
     separation from active duty.
     Increase in maximum amount of repayment under education loan 
         repayment for officers in specified health professions 
         (sec. 537)
       The Senate amendment contained a provision (sec. 563) that 
     would authorize an increase from $22,000 to $60,000 for each 
     year of obligated service the amount the Secretary of a 
     military department may repay for educational loans for a 
     fully qualified health professional to meet identified skill 
     shortages.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees are concerned that shortfalls in recruitment 
     and retention of medical, dental, and nurse corps personnel 
     could undermine future medical readiness. The conferees 
     believe it is critical that the Tenth Quadrennial Review of 
     Military Compensation include a careful examination of 
     compensation issues pertaining to the uniformed medical 
     personnel of the Department of Defense.
     Health Professions Scholarship and Financial Assistance 
         Program for Active Service (sec. 538)
       The Senate amendment contained a provision (sec. 564) that 
     would authorize an increase in the maximum amounts for 
     stipends and grants under the Health Professions Scholarship 
     Program and the Financial Assistance Program for Active 
     Service. The amendment also contained a provision (sec. 565) 
     that would require the Secretary of Defense to report to the 
     congressional defense committees on the success or failure of 
     the military departments in achieving recruiting goals under 
     these programs during fiscal years 2000 through 2006.

[[Page 21093]]

       The House bill contained no similar provisions.
       The House recedes with an amendment that would authorize 
     the Secretary to determine a monthly amount to be paid as a 
     stipend in the Health Professions Scholarship Program.
       The conference agreement reflects the merger of the two 
     Senate provisions, as amended.


                     Part III--Junior ROTC Program

     Junior Reserve Officers' Training Corps instructor 
         qualifications (sec. 539)
       The Senate amendment contained a provision (sec. 570) that 
     would establish instructor qualifications for a retired 
     officer or noncommissioned officer to be employed as an 
     instructor in the Junior Reserve Officers' Training Corps. 
     The provision would require that senior military instructors 
     be retired officers who have a professional military 
     qualification; a baccalaureate degree; completion of 
     secondary education teaching certification requirements; and 
     award of an advanced certification in core content areas. 
     Non-senior military instructors would be retired 
     noncommissioned officers who serve as instructional leaders 
     and teach independently of, but share program 
     responsibilities with, senior military instructors. The 
     provision would also require that non-senior military 
     instructors have a professional military qualification; an 
     associates degree within 5 years of employment; completion of 
     secondary education teaching certification requirements; and 
     award of an advanced certification in core content areas.
       The House bill contained no similar provision.
       The House recedes.
     Expansion of members eligible to be employed to provide 
         Junior Reserve Officers' Training Corps instruction (sec. 
         540)
       The House bill contained a provision (sec. 522) that would 
     authorize employment of reserve and National Guard officers 
     and noncommissioned officers who would be eligible for 
     retired pay at age 60 as Junior Reserve Officers' Training 
     Corps instructors and allow the Secretaries of the military 
     departments to determine the amount to reimburse the 
     educational institution for the salary of such instructors.
       The Senate amendment contained a similar provision (sec. 
     562).
       The House recedes with a clarifying amendment.
       The conferees agree that the Department of Defense would be 
     authorized to pay an institution hiring a reserve or National 
     Guard member who would be eligible for retired pay at age 60 
     an amount equal to one-half of the amount paid to the member 
     by the institution for any period, up to a maximum of one-
     half the difference between the retired or retainer pay for 
     an active-duty officer or noncommissioned officer of the same 
     grade and years of service for that period and the active-
     duty pay and allowances which the member would have received 
     for that period if on active duty.
     Expansion of Junior Reserve Officers' Training Corps program 
         (sec. 541)
       The Senate amendment contained a provision (sec. 315) that 
     would direct the Secretaries of the military departments to 
     increase the number of Junior Reserve Officers' Training 
     Corps units.
       The House bill contained no similar provision.
       The House recedes.
     Review of legal status of Junior ROTC program (sec. 542)
       The House bill contained a provision (sec. 525) that would 
     require the Secretary of Defense to review the 1976 legal 
     opinion that determined that Junior Reserve Officers' 
     Training Corps (JROTC) instructors may be transported to a 
     non-host school only to teach students previously enrolled in 
     the JROTC unit at the host school, and only when it is 
     impractical to require them to take courses at the host 
     school. The purpose of the review would be to determine 
     whether changes in the law since 1976 and local school 
     redistricting would now allow for instructors from a host 
     school to travel to and instruct JROTC students at another 
     nearby school. The provision would also allow a host school 
     that is currently providing for the assignment of JROTC 
     instructors to another school with 70 or more students the 
     authority to continue such support until 180 days following 
     the submission of the report on the results of the review by 
     the Secretary of Defense.
       The Senate amendment contained an identical provision (sec. 
     569).
       The conference agreement includes this provision.


             Part IV--Other Education and Training Programs

     Expanded eligibility for enlisted members for instruction at 
         Naval Postgraduate School (sec. 543)
       The Senate amendment contained a provision (sec. 566) that 
     would authorize all enlisted members of the Armed Forces to 
     participate in certificate programs and courses required for 
     the performance of their duties offered by the Naval 
     Postgraduate School, and authorize eligible enlisted members 
     of the Armed Forces to receive graduate-level instruction at 
     the Naval Postgraduate School in programs leading to the 
     award of a master's degree in technical, analytical, and 
     engineering curricula.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of the Navy to submit a report to the Committees on 
     Armed Services of the Senate and the House of 
     Representatives, not later than March 30, 2007, on the plans 
     and rationale of the Navy to provide enlisted members of the 
     Navy with opportunities to pursue graduate degree programs 
     either through Navy schools or through civilian postgraduate 
     institutions paid for by the Navy in return for an additional 
     service obligation. The amendment would also require the 
     Secretary of the Navy and the Secretary of the Air Force to 
     submit a joint report to the Committees on Armed Services of 
     the Senate and the House of Representatives, not later than 
     March 30, 2007, on the manner by which each Secretary intends 
     to use the Naval Postgraduate School and the Air Force 
     Institute of Technology during fiscal years 2008 through 2013 
     to meet the overall requirements of the Navy, Marine Corps, 
     and Air Force for enlisted members with graduate degrees.
       The conferees expect that the Under Secretary of Defense 
     for Personnel and Readiness will exercise a significant role 
     in overseeing the preparation of the joint report of the 
     Secretary of the Navy and the Secretary of the Air Force on 
     use of the Naval Postgraduate School and the Air Force 
     Institute of Technology to meet the overall requirements of 
     the services for enlisted members with graduate degrees.

                Subtitle D--General Service Authorities

     Test of utility of test preparation guides and education 
         programs in enhancing recruit candidate performance on 
         the Armed Services Vocational Aptitude Battery (ASVAB) 
         and Armed Forces Qualification Test (AFQT) (sec. 546)
       The House bill contained a provision (sec. 531) that would 
     require the Secretary of Defense to administer a test program 
     conducted by the Secretaries of the military departments to 
     determine the utility of commercially-available test 
     preparation guides and education programs to assist recruit 
     candidates in achieving improved scores on military recruit 
     qualification tests. The Secretary would be required to 
     identify 2,000 recruit candidates to receive test preparation 
     assistance and 2,000 recruit candidates to participate in a 
     control group to allow comparisons of test performance and 
     subsequent duty performance in training and unit settings 
     following active-duty entry. The test would identify 
     participants over a 1-year period from the start of the test 
     and assess duty performance for each participant for 18 
     months following entry on active duty.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Clarification of nondisclosure requirements applicable to 
         certain selection board proceedings (sec. 547)
       The House bill contained a provision (sec. 532) that would 
     clarify the nondisclosure requirements applicable to 
     deliberations of military selection boards. The provision 
     would specify that discussions and deliberations of selection 
     boards, including any written or documentary records thereof, 
     are immune from legal process; may not be admitted as 
     evidence; and may not be used for any purpose in any action 
     or suit, or judicial or administrative proceedings without 
     the consent of the Secretary of the military department.
       The Senate amendment contained a similar provision (sec. 
     518).
       The Senate recedes with a technical amendment.
     Report on extent of provision of timely notice of long-term 
         deployments (sec. 548)
       The House bill contained a provision (sec. 533) that would 
     require the Secretary of Defense to report, not later than 
     March 1, 2007, on the number of members of the Armed Forces 
     who, since September 11, 2001, have not received at least 30-
     days notice prior to a deployment that was scheduled to last 
     180 days or more.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     reporting period to begin on January 1, 2005, and end on the 
     date of the enactment of this Act.

                  Subtitle E--Military Justice Matters

     Applicability of Uniform Code of Military Justice to members 
         of the Armed Forces ordered to duty overseas in inactive 
         duty for training status (sec. 551)
       The Senate amendment contained a provision (sec. 551) that 
     would require the service secretaries, no later than March 1, 
     2007, to prescribe regulations, or amend current regulations, 
     consistent with article 2 of the Uniform Code of Military 
     Justice (UCMJ) to provide that military personnel who are 
     ordered to perform inactive duty for training at overseas 
     locations shall be subject to jurisdiction under the UCMJ 
     throughout the period that the orders are in effect.

[[Page 21094]]

       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Clarification of application of Uniform Code of Military 
         Justice during a time of war (sec. 552)
       The Senate amendment contained a provision (sec. 552) that 
     would clarify that Uniform Code of Military Justice 
     jurisdiction over persons serving with or accompanying an 
     armed force in the field applies both in time of declared war 
     and in a contingency operation.
       The House bill contained no similar provision.
       The House recedes.

                   Subtitle F--Decorations and Awards

     Authority for presentation of Medal of Honor Flag to living 
         Medal of Honor recipients and to living primary next-of-
         kin of deceased Medal of Honor recipients (sec. 555)
       The House bill contained a provision (sec. 551) that would 
     amend sections 3755, 6257, and 8755 of title 10, United 
     States Code, and section 505 of title 14, United States Code, 
     to authorize the President to present a Medal of Honor Flag 
     to all living recipients of the Medal of Honor. The provision 
     would authorize presentation of a Medal of Honor Flag to the 
     primary next of kin of a deceased Medal of Honor recipient.
       The Senate amendment contained a similar provision (sec. 
     584) that would require the Secretary of Defense to prescribe 
     regulations regarding the designation of the primary living 
     next of kin.
       The House recedes with a clarifying amendment.
     Review of eligibility of prisoners of war for award of the 
         Purple Heart (sec. 556)
       The House bill contained a provision (sec. 553) that would 
     require the Secretary of Defense to award the Purple Heart 
     posthumously to a member of the Armed Forces who died while 
     in captivity as a prisoner of war or died due to injury or 
     illness incurred while in captivity as a prisoner of war.
       The Senate amendment contained a provision (sec. 589) that 
     would require the President, not later than March 1, 2007, to 
     report on the advisability of modifying the criteria for the 
     award of the Purple Heart in the case of prisoners of war who 
     die in captivity under unknown circumstances or as a result 
     of conditions and treatment which currently do not qualify 
     the decedent for the award of the Purple Heart. The provision 
     would also require the President in making his determination 
     to take into consideration various specified factors as well 
     as the views of the Secretary and the Joint Chiefs of Staff.
       The House recedes with an amendment that would add 
     additional circumstances to be considered by the President in 
     making his determination regarding the posthumous award of 
     the Purple Heart to former prisoners of war.
       In view of the history and significance of the Purple 
     Heart, and the fact that it is awarded in the name of the 
     President as Commander in Chief to members of the Armed 
     Forces, the conferees consider it essential that the 
     President conduct a comprehensive review of the merits of the 
     proposals for expansion of eligibility for the award and 
     provide a recommendation to the Congress before legislative 
     changes are made to the criteria for the Purple Heart.
     Report on Department of Defense process for awarding 
         decorations (sec. 557)
       The House bill contained a provision (sec. 555) that would 
     require the Secretary of Defense to review the policy, 
     procedures, and processes of the military departments for 
     awarding decorations to members of the Armed Forces and to 
     submit a report on the findings and recommendations no later 
     than 90 days after the date of the enactment of this Act.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     establish August 1, 2007, as the due date for the required 
     report.

               Subtitle G--Matters Relating to Casualties

     Authority for retention after separation from service of 
         assistive technology and devices provided while on active 
         duty (sec. 561)
       The House bill contained a provision (sec. 562) that would 
     authorize the Secretary of Defense to provide assistive 
     technology, devices, and services to a member of the armed 
     forces who has sustained a debilitating illness or injury 
     while serving in support of a contingency operation, and also 
     authorize the member to continue to utilize such services 
     after separation from active duty.
       The Senate amendment contained a similar provision (sec. 
     647).
       The House recedes with a clarifying amendment.
     Transportation of remains of casualties dying in a theater of 
         combat operations (sec. 562)
       The House bill contained a provision (sec. 563) that would 
     prescribe conditions for the transportation by air of the 
     remains of members of the Armed Forces who die in a combat 
     theater of operations and whose remains are returned to the 
     United States through the mortuary facility at Dover Air 
     Force Base, Delaware. The provision would require the 
     Secretary concerned to transport remains under these 
     circumstances by military aircraft, or military-contracted 
     aircraft, unless otherwise directed by the decedent's next of 
     kin. The provision would also require that remains be 
     escorted during transportation at all times by at least one 
     service member in an appropriate grade. The provision would 
     further require that an honor guard escort comprised of a 
     sufficient number of military members to transfer the casket 
     containing the remains from the aircraft or other means of 
     transportation to a hearse for local transportation be 
     provided.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to prescribe regulations for the 
     administration of this provision. The amendment would also 
     require that transportation of one or more sets of military 
     remains by military aircraft or military-contracted aircraft 
     be the aircraft's primary mission and clarify the composition 
     and role of the honor guard escort. The effective date for 
     this provision would be not later than January 1, 2007.
     Annual budget display of funds for POW/MIA activities of 
         Department of Defense (sec. 563)
       The House bill contained a provision (sec. 564) that would 
     require the Secretary of Defense to submit to Congress a 
     consolidated budget justification display that includes prior 
     year and future year funding for specified organizations 
     supporting the POW/MIA activities of the Department of 
     Defense as part of the Department's justification material 
     that supports the President's annual budget request.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
       The conferees are concerned that shortfalls in the funding 
     of POW/MIA activities within the Department have resulted in 
     the loss of opportunities to conduct planned field missions 
     to locate and identify missing U.S. service members. The 
     conferees expect that the Department will ensure that POW/MIA 
     recovery efforts will receive the highest level of support 
     within the Department and that the budget for POW/MIA 
     activities will be adequately funded in order to preclude the 
     loss of opportunities to conduct planned recovery and 
     research missions.
     Military Severely Injured Center (sec. 564)
       The Senate amendment contained a provision (sec. 586) that 
     would require the Secretary of Defense to establish a center 
     to augment and support programs operated by the military 
     departments for services to severely wounded or injured 
     service members and their families. The provision would also 
     require establishment of a central database for the purpose 
     of tracking such members.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     role of the center in support of programs operated by the 
     military departments which are responsible for individual 
     case management, and ensure transparency of the central 
     database.
       Comprehensive review on procedures of the Department of 
     Defense on mortuary affairs (sec. 565)
       The Senate amendment contained a provision (sec. 590(a)-
     (b)) that would require the Secretary of Defense to include 
     additional matters in the report of the Department of 
     Defense's ongoing comprehensive review of procedures relating 
     to mortuary affairs. The additional elements reported on 
     would address capabilities and standards employed in combat 
     theaters that could preserve the remains of deceased 
     personnel and expedite the return of remains to the United 
     States in a nondecomposed state.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Additional elements of policy on casualty assistance to 
         survivors of military decedents (sec. 566)
       The Senate amendment contained a provision (sec. 590(c)) 
     that would amend section 562(b) of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163) 
     to require the Secretary of Defense to include an additional 
     element in the Department of Defense's policy relating to 
     casualty assistance to survivors of military decedents. The 
     provision would require that the new policy address the 
     process by which the Department, upon request, briefs 
     survivors of military decedents on the cause of, and any 
     investigation into, the death of such military decedents and 
     on the disposition and transportation of their remains.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Requirement for deploying military medical personnel to be 
         trained in preservation of remains under combat or 
         combat-related conditions (sec. 567)
       The House bill contained a provision (sec. 722) that would 
     require the Secretary of Defense to develop a program 
     requiring each military department to include pre-deployment 
     training of health care professionals in the preservation of 
     remains.
       The Senate amendment contained no similar provision.

[[Page 21095]]

       The Senate recedes with a clarifying amendment that would 
     establish an effective date for the required training of 90 
     days after the date of the enactment of this Act.

     Subtitle H--Impact Aid and Defense Dependents Education System

       Enrollment in defense dependents' education system of 
     dependents of foreign military members assigned to Supreme 
     Headquarters Allied Powers, Europe (sec. 571)
       The House bill contained a provision (sec. 572) that would 
     authorize the Secretary of Defense to enroll on a space-
     required, tuition-free basis a limited number of dependents 
     of foreign military members who are assigned to the Supreme 
     Headquarters Allied Powers, Europe, in the Defense 
     Dependents' Education System in Mons, Belgium.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the Secretary to offer such enrollment only through the 2010-
     2011 school year. The amendment would require a report to 
     Congress evaluating alternatives for a long-term plan for the 
     education of dependents of U. S. military personnel assigned 
     to the Supreme Headquarters Allied Powers, Europe.
     Continuation of authority to assist local educational 
         agencies that benefit dependents of members of the Armed 
         Forces and Department of Defense civilian employees (sec. 
         572)
       The House bill contained a provision (sec. 571) that would 
     authorize $50.0 million for assistance to local educational 
     agencies that have military dependent students comprising at 
     least 20 percent of the students in average daily attendance. 
     The provision would also authorize $15.0 million for 
     assistance to local educational agencies that experience a 
     significant increase or decrease in attendance of military 
     dependent students due to military force structure changes, 
     the relocation of military forces, and base closures and 
     realignments.
       The Senate amendment contained a provision (sec. 571) that 
     would authorize $30.0 million for assistance to local 
     educational agencies with significant concentrations of 
     military school-aged children, and $10.0 million for special 
     assistance to local educational agencies that experience an 
     increase or decrease in students due to military force 
     structure changes, relocation of military units, or base 
     closures and realignments. The Senate amendment would also 
     provide temporary authority for the Secretary of Defense, 
     working with the Secretary of Education, to utilize funds 
     appropriated for Operation and Maintenance, Defense-wide for 
     the purpose of sharing expertise and experience of the 
     Department of Defense Education Activity with local education 
     agencies to assist those agencies as military students make 
     the transition to civilian school systems as a result of base 
     closure and realignment, global rebasing, and force 
     restructuring.
       The Senate recedes with an amendment that would authorize 
     $35.0 million and $10.0 million, respectively, for assistance 
     to local educational agencies with significant military 
     school-aged children.
       Elsewhere in this report, the conferees agree to authorize 
     the sharing of expertise and experience of the Department of 
     Defense Education Activity with local educational agencies 
     that are experiencing a change in the number of military 
     students due to base closure and realignment, global 
     rebasing, and force restructuring, until September 30, 2011.
     Impact aid for children with severe disabilities (sec. 573)
       The Senate amendment contained a provision (sec. 572) that 
     would authorize $5.0 million in Operation and Maintenance, 
     Defense-wide, for impact aid payments for children with 
     disabilities under section 8003(d) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703(d)), using 
     the formula set forth in section 363 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 
     (Public Law 106-398).
       The House bill contained no similar provision.
       The House recedes.
     Plan and authority to assist local educational agencies 
         experiencing growth in enrollment due to force structure 
         changes, relocation of military units, or base closures 
         and realignments (sec. 574)
       The Senate amendment contained a provision (sec. 573) that 
     would require the Secretary of Defense to prepare a plan to 
     provide assistance to local educational agencies that will 
     experience a growth in enrollment of military and Department 
     of Defense civilian school-aged children as a result of force 
     structure changes, the relocation of military units, and the 
     closure or realignment of a military installation. The 
     provision would require submission of a report on the plan to 
     Congress by January 1, 2007, and annual updates to the plan.
       The House bill contained no similar amendment.
       The House recedes with an amendment that would require 
     annual updates to the plan after March 1, 2008 be submitted 
     to Congress along with the President's budget request. The 
     amendment would also authorize the Secretary of Defense to 
     share expertise and experience of the Department of Defense 
     Education Activity with affected local educational agencies 
     for the purpose of assisting those agencies with the 
     transition of military dependent school-aged children through 
     September 30, 2011.
     Pilot program on parent education to promote early childhood 
         education for dependent children affected by military 
         deployment or relocation of military units (sec. 575)
       The Senate amendment contained a provision (sec. 574) that 
     would require the Secretary of Defense to carry out a pilot 
     program to enhance educational support for parents of pre-
     school aged children, who are affected by deployments or the 
     relocation of military units.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     the requirement to conduct the pilot program would be subject 
     to the appropriation of funds.

                Subtitle I--Armed Forces Retirement Home

     Report on leadership and management of the Armed Forces 
         Retirement Home (sec. 578)
       The Senate amendment contained a provision (sec. 668) that 
     would require the redesignation of the Chief Operating 
     Officer of the Armed Forces Retirement Home as Chief 
     Executive Officer. The provision would require the Director 
     of each facility of the home to be a member of the Armed 
     Forces, and the Deputy Director to be a civilian with 
     experience as a continuing care retirement community 
     professional. The amendment would also clarify that the 
     senior representative of one of the chief personnel officers 
     of the Armed Forces serving as a member of the Local Board of 
     Trustees for each facility be a military officer serving on 
     active duty in the grade of brigadier general, or in the case 
     of the Navy, rear admiral (lower half).
       The House bill contained no similar provision.
       The House recedes with an amendment that would require a 
     report by the Secretary of Defense evaluating the effect of a 
     change in the title of the Chief Operating Officer and 
     qualifications of the Director and Deputy Director of each 
     facility, as well as an assessment of whether or not there is 
     a need for a greater role by members of the Armed Forces on 
     active duty in the overall direction, operation, and 
     management of the home.
       The conferees note that the requirement for service on the 
     Local Board of Trustees by a military officer in the grade of 
     brigadier general, or in the case of the Navy, rear admiral 
     (lower half), is addressed elsewhere in this report.
       The conferees are aware that the Comptroller General has 
     not completed the assessment of the regulatory oversight and 
     monitoring of health and nursing home services required by 
     section 909 of the National Defense Authorization Act for 
     2006 (Public Law 109-163). The conferees intend that the 
     study required by that section will help inform future 
     legislative and policy changes regarding oversight and 
     monitoring of health and nursing home services at the home.
     Report on Local Boards of Trustees of the Armed Forces 
         Retirement Home (sec. 579)
       The Senate amendment contained a provision (sec. 1064) that 
     would require a report on the composition and activities of 
     the Local Boards of Trustees of the Armed Forces Retirement 
     Home.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require an 
     additional report element on the feasibility and effect of 
     including as a member of each local board a member of the 
     Armed Forces who is serving on active duty in the grade of 
     brigadier general, or in the case of the Navy, rear admiral 
     (lower half).
       The conferees are concerned that failure to use the Local 
     Boards of Trustees, as required by law in section 416 of 
     title 24, United States Code, is a significant management 
     issue at the Armed Forces Retirement Home. The conferees are 
     also concerned that additional oversight and training is 
     needed on the handling of personnel matters involving 
     assigned military personnel. The conferees direct that these 
     matters be included in the report required by this section.

                          Subtitle J--Reports

     Report on personnel requirements for airborne assets 
         identified as Low-Density, High-Demand Airborne Assets 
         (sec. 581)
       The House bill contained a provision (sec. 591) that would 
     require the Secretary of Defense to submit a report, not 
     later than 90 days after the date of the enactment of this 
     Act, on personnel requirements and shortfalls for airborne 
     assets identified as low-density, high-demand airborne assets 
     based on combatant commander requirements to conduct and 
     sustain operations for the global war on terrorism.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     report to be submitted to the Committees on Armed Services of 
     the Senate and the House of Representatives not later than 
     120 days after the date of the enactment of this Act, and to 
     include estimated manpower costs of personnel needed to 
     address shortfalls.

[[Page 21096]]


     Report on feasibility of establishment of Military Entrance 
         Processing Command station on Guam (sec. 582)
       The House bill contained a provision (sec. 584) that would 
     require the Secretary of Defense to submit a report by June 
     1, 2007, on the feasibility and cost effectiveness of 
     establishing a Military Entrance Processing Command station 
     on Guam for new recruits who are drawn from the western 
     Pacific region.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Inclusion in annual Department of Defense report on sexual 
         assaults of information on results of disciplinary 
         actions (sec. 583)
       The House bill contained a provision (sec. 595) that would 
     amend section 577 of the Ronald W. Reagan National Defense 
     Authorization Act for Fiscal Year 2005 (Public Law 108-375) 
     to require additional detail in the Department of Defense 
     annual report on sexual assaults on the results of 
     disciplinary action taken in substantiated cases.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Report on provision of electronic copy of military records on 
         discharge or release of members from the Armed Forces 
         (sec. 584)
       The Senate amendment contained a provision (sec. 588) that 
     would require the Secretary of Defense, not later than 120 
     days after the date of the enactment of this Act, to submit a 
     report on the feasibility and advisability of providing an 
     electronic copy of military records (including all military 
     service, medical, and other military records) to members of 
     the Armed Forces on their discharge or release from the Armed 
     Forces.
       The House bill contained no similar provision.
       The House recedes.
     Report on omission of social security account numbers from 
         military identification cards (sec. 585)
       The Senate amendment contained a provision (sec. 591) that 
     would require the Secretary of Defense to submit a report, 
     not later than 180 days after the date of the enactment of 
     this Act, assessing the feasibility of using military 
     identification cards, which do not contain, display, or 
     exhibit social security account numbers.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Report on maintenance and protection of data held by the 
         Secretary of Defense as part of the Department of Defense 
         Joint Advertising, Market Research and Studies (JAMRS) 
         program (sec. 586)
       The Senate amendment contained a provision (sec. 1417) that 
     would require the Secretary of Defense to submit a report on 
     how the JAMRS program maintains and protects data, including 
     social security numbers, and prevents unauthorized access or 
     inadvertent disclosure of data that could lead to identity 
     theft.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Comptroller General report on military conscientious 
         objectors (sec. 587)
       The House bill contained a provision (sec. 593) that would 
     require the Comptroller General to submit to Congress, not 
     later than 180 days after the date of the enactment of this 
     Act, a report concerning members of the Armed Forces who have 
     claimed the status as a military conscientious objector 
     between January 1, 1989, and December 31, 2006.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would establish 
     September 1, 2007, as the due date for the report, limit the 
     period reported on from September 11, 2001, to December 31, 
     2006, and clarify the elements of the report required.

                       Subtitle K--Other Matters

     Modification in Department of Defense contributions to 
         Military Retirement Fund (sec. 591)
       The House bill contained a provision (sec. 581) that would 
     reduce the Department of Defense's accrual contributions to 
     the Military Retirement Fund by requiring the Department to 
     contribute at the lower, part-time rate for reserve component 
     soldiers who are mobilized or on active duty for special 
     work.
       The Senate amendment contained a similar provision (sec. 
     641(a) and (c)). The provision would also make this section 
     effective on October 1, 2007.
       The Senate recedes with an amendment that would make this 
     section effective on October 1, 2007.
     Revision in government contributions to Medicare-Eligible 
         Retiree Health Care Fund (sec. 592)
       The House bill contained a provision (sec. 589) that would 
     amend sections 1111, 1115, and 1116 of title 10, United 
     States Code, to change the formula by which the government 
     makes annual contributions to the Medicare-Eligible Retiree 
     Health Care Fund. The provision would reduce the annual 
     government contribution to the fund by changing the formula 
     for calculating that contribution by: (1) excluding the 
     cadets and midshipmen at the service academies; (2) excluding 
     members of the reserve components who are not counted against 
     active component end strength under section 115(i) of title 
     10, United States Code; and (3) basing the calculation on 
     Selected Reserve member strength, not the end strength of the 
     larger Ready Reserve. The provision would also prohibit any 
     funds authorized or appropriated to the Department of Defense 
     from being used to make any payment to the Medicare-Eligible 
     Retiree Health Care Fund.
       The Senate amendment contained a similar provision (sec. 
     641(b)-(c)).
       The Senate recedes with an amendment that would omit 
     changes to section 1116 regarding payments into the Medicare-
     Eligible Retiree Health Care Fund. The amendment would also 
     modify section 1111(a) of title 10, United States Code, to 
     clarify that the fund shall be used to finance the 
     liabilities of the uniformed services under retiree health 
     care programs for medicare-eligible beneficiaries.
     Dental Corps of the Navy Bureau of Medicine and Surgery (sec. 
         593)
       The House bill contained a provision (sec. 582) that would 
     eliminate the requirement for a separate dental division 
     within the Navy Bureau of Medicine and Surgery, and establish 
     a Dental Corps, which would be integrated within the Navy 
     Bureau of Medicine and Surgery.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that Navy dental functions be under the direction of the 
     Chief of the Dental Corps.
     Permanent authority for presentation of recognition items for 
         recruitment and retention purposes (sec. 594)
       The House bill contained a provision (sec. 583) that would 
     make permanent the authority in section 2261 of title 10, 
     United States Code, to expend appropriated funds to procure 
     recognition items of nominal or modest value for recruitment 
     or retention purposes.
       The Senate amendment contained a similar provision (sec. 
     585) that would authorize the presentation of recognition 
     items during any period of war or national emergency declared 
     by the President or Congress.
       The Senate recedes.
     Persons authorized to administer enlistment and appointment 
         oaths (sec. 595)
       The House bill contained a provision (sec. 585) that would 
     amend sections 502 and 1031 of title 10, United States Code, 
     to allow the Secretary of Defense to designate who is 
     authorized to administer an enlistment or appointment oath 
     and expand the number of people eligible to administer such 
     oaths when the situation dictates.
       The Senate amendment contained a similar provision (sec. 
     581).
       The Senate recedes.
     Military voting matters (sec. 596)
       The House bill contained a provision (sec. 586) that would 
     repeal section 1566(d) of title 10, United States Code, which 
     requires the Department of Defense Inspector General to 
     periodically conduct unannounced assessments of the 
     compliance of Department installations with the requirements 
     of the Uniformed and Overseas Citizens Absentee Voting Act, 
     set forth in section 1973ff of title 42, United States Code.
       The Senate amendment contained a similar provision (sec. 
     583) that would require the Secretary of Defense to continue 
     the Interim Voting Assistance System (IVAS) ballot request 
     program for the general election and all elections through 
     December 31, 2006, and require reports from the Secretary on 
     the implementation of IVAS in 2006 and on the Department's 
     plans for expanding the use of electronic voting technology 
     in the future. The provision would also require the 
     Comptroller General to submit a report to Congress by March 
     1, 2007, on the programs and activities undertaken by the 
     Department to facilitate voter registration, transmittal of 
     ballots to absentee voters, and voting using electronic 
     means.
       The House recedes with a technical amendment.
     Physical evaluation boards (sec. 597)
       The House bill contained a provision (sec. 587) that would 
     add a new section to title 10, United States Code, that would 
     require: (1) the service secretaries to ensure that documents 
     announcing decisions of physical evaluation boards (PEB) 
     convey the findings and conclusions of the board in an 
     orderly and itemized fashion with specific attention to each 
     issue presented by the member being evaluated; (2) the 
     Secretary of Defense to prescribe regulations establishing 
     requirements and training standards for PEB liaison officers 
     and to assess the compliance of the Secretaries of the 
     military departments with those regulations at least once 
     every 3 years; and (3) the Secretary of Defense to publish 
     regulations establishing standards and guidelines concerning 
     PEB assignment and training of staff, operating procedures, 
     and consistency and timeliness of board decisions, and to 
     assess the compliance of the Secretaries of the military 
     departments with those regulations at least once every 3 
     years.
       The Senate amendment contained no similar provision.

[[Page 21097]]

       The Senate recedes with a clarifying amendment.
       The conferees are concerned about the increasing caseloads 
     being handled within the disability evaluation systems and 
     adverse effects on processing times and decisionmaking that 
     may stem from this increased caseload. The conferees urge the 
     services to determine whether the manning and resources 
     devoted to this function are sufficient and recommend that 
     the service Inspectors General make the performance of the 
     disability evaluation system an item of special interest.
     Military ID cards for retiree dependents who are permanently 
         disabled (sec. 598)
       The Senate amendment contained a provision (sec. 582) that 
     would require the Secretaries of the military departments to 
     issue a permanent military ID card to a permanently disabled 
     dependent of a military retiree.
       The House bill contained no similar provision.
       The House recedes.
     United States Marine Band and United States Marine Drum and 
         Bugle Corps (sec. 599)
       The Senate amendment contained a provision (sec. 903) that 
     would amend section 6222 of title 10, United States Code, to 
     authorize the Secretary of the Navy to prescribe regulations 
     for the appointment and promotion of members of the Marine 
     Band and the Marine Drum and Bugle Corps. The provision would 
     authorize the President to appoint members of the Marine Band 
     and Marine Drum and Bugle Corps to the grades of captain and 
     below and to delegate that authority to the Secretary of 
     Defense. Additionally, the provision would authorize the 
     President to appoint officers in the Marine Band and the 
     Marine Drum and Bugle Corps in the grades of major and above 
     by and with the advice and consent of the Senate.
       The House bill contained no similar provision.
       The House recedes.

                   Legislative Provisions Not Adopted

     Authorized strength of Navy Reserve flag officers
       The House bill contained a provision (sec. 501) that would 
     amend section 12004 of title 10, United States Code, to 
     retain the authorized strength of Navy Reserve flag officers 
     at 48 but eliminate existing limitations on their 
     distribution and allocation.
       The Senate amendment contained no similar provision.
       The House recedes.
     Modification of authorities on senior members of the Judge 
         Advocate General's Corps
       The Senate amendment contained a provision (sec. 504) that 
     would raise the statutory grades of the Judge Advocates 
     General of the Army, Navy, and Air Force to lieutenant 
     general or vice admiral, as appropriate. These three officers 
     would be in addition to the numbers that would otherwise be 
     permitted for their armed forces for officers serving on 
     active duty in grades above major general or rear admiral, as 
     the case may be. The provision would also change the title of 
     the Assistant Judge Advocate General of the Army to ``Deputy 
     Judge Advocate General,'' as is presently the case for the 
     corresponding officers in the Navy and Air Force.
       The House bill contained no similar provision.
       The Senate recedes.
     Requirement for significant joint experience for officers 
         appointed as Surgeon General of the Army, Navy, and Air 
         Force
       The Senate amendment contained a provision (sec. 505) that 
     would add a new section 3036a and amend sections 3036, 5137, 
     and 8036 of title 10, United States Code, to require that 
     officers recommended for appointment as the Surgeon General 
     of the Army, Navy, and Air Force must have significant joint 
     experience as determined by the Chairman of the Joint Chiefs 
     of Staff.
       The House bill contained no similar provision.
       The Senate recedes.
     Report on private-sector promotion and constructive 
         termination of members of the reserve components called 
         or ordered to active service
       The House bill contained a provision (sec. 513) that would 
     require the Secretary of Defense to report on post-
     mobilization private-sector employment impacts on members of 
     the reserve components.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees agree that the issue of whether or not 
     members of the reserve components, called or ordered to 
     active duty, receive promotions in due course upon their 
     return from deployment in Operation Iraqi Freedom or 
     Operation Enduring Freedom, or experience constructive 
     termination by their employers as a result of such 
     deployment, would be reviewed by a Department of Defense 
     working group established by this Act to review transition to 
     civilian employment of members of the National Guard and 
     reserve returning from deployment.
     Report on joint officer promotion boards
       The Senate amendment contained a provision (sec. 521) that 
     would require the Secretary of Defense to submit a report on 
     the desirability and feasibility of conducting joint officer 
     promotion selection boards.
       The House bill contained no similar provision.
       The Senate recedes.
     Authority for United States Military Academy and United 
         States Air Force Academy permanent military professors to 
         assume command positions while on periods of sabbatical
       The House bill contained a provision (sec. 523) that would 
     authorize the Secretary of the Army and the Secretary of the 
     Air Force to assign military officers who are permanent 
     professors at the United States Military Academy and the 
     United States Air Force Academy, respectively, to command 
     positions while such professors are serving on a sabbatical 
     tour of duty in an Army or Air Force unit outside the 
     academic department of the academy to which they are 
     assigned.
       The Senate amendment contained no similar provision.
       The House recedes.
     Special operations fellowships
       The House bill contained a provision (sec. 526) that would 
     authorize the Secretary of Defense to prescribe regulations 
     under which the Assistant Secretary of Defense for Special 
     Operations and Low-Intensity Conflict may award to an 
     eligible person a fellowship leading to a doctoral or masters 
     degree in a discipline determined by the Assistant Secretary.
       The Senate amendment contained no similar provision.
       The House recedes.
     Condition on appointment of commissioned officers to position 
         of Director of National Intelligence or Director of the 
         Central Intelligence Agency
       The Senate amendment contained a provision (sec. 530) that 
     would amend chapters 32 and 63 of title 10, United States 
     Code, to add new sections. In chapter 32, the provision would 
     require that a commissioned officer, as a condition of 
     appointment to the position of Director of National 
     Intelligence or Director of the Central Intelligence Agency, 
     acknowledge that upon termination of an assignment to either 
     position the officer will retire. In chapter 63, the 
     provision would require the Secretaries of military 
     departments to retire an officer upon termination of an 
     assignment in either position.
       The House bill contained no similar provision.
       The Senate recedes.
     Pilot program on reintegration of members of the National 
         Guard into civilian life after deployment
       The Senate amendment contained a provision (sec. 534) that 
     would require the Secretary of the Army to carry out a pilot 
     program to assess the feasibility and advisability of a 
     voluntary program to facilitate the reintegration of members 
     of the National Guard into civilian life upon return from an 
     overseas deployment.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees believe that with the heavy reliance on the 
     men and women of the National Guard and Reserve in support of 
     Operation Enduring Freedom and Operation Iraqi Freedom it is 
     essential that the Department of Defense take action to 
     improve the flexibility and adequacy of military transition 
     assistance programs (TAP) for their benefit. TAP for 
     reservists should facilitate the reintegration of members of 
     the National Guard and Reserve into civilian life as soon as 
     possible after their return from an overseas deployment. TAP 
     for reservists should also make such programs voluntary where 
     appropriate and respect the desire of many Guardsmen and 
     reservists to ``stand down'' from their military duties for 
     appropriate periods. Therefore, the conferees urge the 
     Department to implement and support a reintegration pilot 
     program in a State that has a National Guard brigade 
     returning from an overseas deployment. In the Senate Report 
     accompanying H.R. 5631 (S. Rept. 09-292) of the Department of 
     Defense Appropriations Bill, 2007, the conferees note that 
     the Senate supported funding of $6.7 million for a 
     reintegration initiative in connection with overseas 
     deployment. If such a pilot program is implemented, the 
     conferees direct the Secretary of Defense to submit a report 
     of evaluation within 90 days of its conclusion, including a 
     recommendation regarding the feasibility of reintegration 
     programs for members of the National Guard and Reserve.
     Report on using six-month deployments for Operation Enduring 
         Freedom and Operation Iraqi Freedom
       The House bill contained a provision (sec. 534) that would 
     express the sense of Congress that the Secretary of the Army 
     should continue to evaluate and consider the potential 
     benefits and impacts of 6-month overseas deployments for 
     soldiers in connection with Operation Enduring Freedom and 
     Operation Iraqi Freedom. The provision would require the 
     Secretary of the Army to submit a report on any plans, 
     benefits, and drawbacks regarding shorter deployments and the 
     results of any surveys of soldiers and their dependents 
     regarding proposals to reduce the length of operational 
     deployments
       The Senate amendment contained no similar provision.
       The House recedes.

[[Page 21098]]


     National Guard officers authority to command
       The House bill contained a provision (sec. 544) that would 
     permit, with presidential authorization and consent of the 
     Governor concerned, any National Guard officer to retain a 
     State commission in the National Guard while serving on 
     active duty. The provision would further allow such 
     authorization and consent to be obtained in advance in order 
     to establish succession to command.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees recommend that the Commission on the National 
     Guard and Reserve review the advisability and feasibility of 
     further expanding the authority of National Guard officers to 
     serve in both Federal status under title 10, United States 
     Code, and State status under title 32, United States Code, as 
     a means of achieving unity of command of units that are 
     composed of both active-duty members and National Guard 
     personnel. Elsewhere in this report, the conferees agree to 
     add this issue to the matters referred to the commission for 
     review on a priority basis.
     Cold War Victory Medal
       The House bill contained a provision (sec. 552) that would 
     require the service secretaries to issue a service medal to 
     be known as the Cold War Victory Medal to eligible members 
     and former members of the Armed Forces who performed active 
     duty or inactive duty training between September 2, 1945, and 
     December 26, 1991.
       The Senate amendment contained no similar provision.
       The House recedes.
     Advancement on the retired list of certain decorated retired 
         Navy and Marine Corps officers
       The House bill contained a provision (sec. 554) that would 
     require the Secretary of the Navy, upon receipt of a 
     qualifying application, to advance to the next higher grade 
     on the retired list officers who had been specifically 
     commended for performance of duty in combat during World War 
     II. The provision, which would have restored in part a 
     retirement benefit that ended in 1959, would have no effect 
     on compensation or benefits.
       The Senate amendment contained no similar provision.
       The House recedes.
     Criteria for removal of member from temporary disability 
         retired list
       The House bill contained a provision (sec. 561) that would 
     amend section 1210(e) of title 10, United States Code, to 
     direct that a member with less than a 30 percent disability 
     rating may not be removed from the temporary disability 
     retired list (TDRL) and separated prior to the expiration of 
     the maximum TDRL period allowed by law unless the disability 
     is of a permanent nature and stable.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees are concerned that the absence of a standard 
     relating to the permanent and stable nature of a disability 
     rated at less than 30 percent under section 1210(e) of title 
     10 may lead to inequitable results for members with less than 
     20 years of active-duty service. The conferees direct the 
     Secretary of Defense to submit a report no later than May 1, 
     2007, describing the manner in which section 1210(e) is 
     implemented in the military departments and explaining how 
     military members with disabilities rated at less than 30 
     percent who are placed on the TDRL are administered. The 
     report should include discussion of what the impact would be 
     of a change in law requiring that such a disability be of a 
     permanent and stable nature. The report should include 
     recommendations for legislative changes that would ensure 
     that members with substantial active-duty service are treated 
     equitably.
     Modification of time limit for use of entitlement to 
         educational assistance for reserve component members 
         supporting contingency operations and other operations
       The Senate amendment contained a provision (sec. 570A) that 
     would extend the time a member of the Selected Reserve is 
     authorized to use the educational benefit earned for service 
     while recalled to active duty in support of a war or national 
     emergency for a period of 10 years from the date of 
     separation from the Selected Reserve.
       The House bill contained no similar provision.
       The Senate recedes.
     Postal benefits program for members of the Armed Forces
       The House bill contained a provision (sec. 575) that would 
     require the Secretary of Defense, in consultation with the 
     United States Postal Service, to provide a program of postal 
     benefits to military members who are serving in Iraq or 
     Afghanistan, or who are hospitalized at a military medical 
     facility as a result of disease or injury incurred while 
     serving in Iraq or Afghanistan. The postal benefit would be 
     provided using coupons or other forms of evidence indicating 
     a mailing privilege to be used to mail letters, sound and 
     video recordings, printed materials, or ground parcels not 
     exceeding 15 pounds in weight at no cost.
       The Senate amendment contained no similar provision.
       The House recedes.
     Funding
       The House bill contained a provision (sec. 576) that would 
     require the Secretary of Defense to fund the operation of the 
     postal benefit program from contingent emergency reserve 
     funds or emergency supplemental appropriations.
       The Senate amendment contained no similar provision.
       The House recedes.
     Duration
       The House bill contained a provision (sec. 577) that would 
     require new postal benefits to apply with respect to mail 
     sent during the 1-year period beginning on the date on which 
     the regulations administering the postal benefit are issued 
     by the Secretary of Defense.
       The Senate amendment contained no similar provision.
       The House recedes.
     Sense of Senate on notice to Congress of recognition of 
         members of the Armed Forces for extraordinary acts of 
         bravery, heroism, and achievement
       The Senate amendment contained a provision (sec. 587) that 
     would express the sense of the Senate that the Secretary of 
     Defense or the service secretaries should notify the 
     Committees on Armed Services of the Senate and the House of 
     Representatives and applicable senators and representatives 
     when a member of the Armed Forces receives a medal or is 
     otherwise commended or recognized for an act of extraordinary 
     heroism, bravery, achievement, or other distinction.
       The House bill contained no similar provision.
       The Senate recedes.
     Department of Labor Transitional Assistance Program
       The House bill contained a provision (sec. 588) that would 
     amend section 1144 of title 10, United States Code, to 
     require participation by certain members of reserve 
     components in the transition assistance program (TAP) 
     provided by the Secretary of Labor, and encourage 
     participation by certain members who had previously 
     participated in such programs. The provision would also 
     require the service secretaries to update the content of 
     transition materials used by the National Veterans Training 
     Institute of the Department of Labor on a continuing basis.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees expect the Secretary of Defense, the 
     Secretaries of the military Departments, and the Secretary of 
     Labor to take steps to ensure maximum participation by all 
     eligible service members, and particularly members of the 
     National Guard and Reserve, in pre-separation counseling and 
     TAP. Military leaders should encourage and assist separating 
     service members to develop personal transition plans prior to 
     separation. TAP presentations programs should be scheduled 
     during duty time to ensure all separating service members, 
     including Guard and Reserve members, have full access and 
     opportunity to attend.
       The conferees are encouraged by the new approach to the TAP 
     for members of the Guard and Reserve and their families 
     described in the Report to Congress on Transition Assistance 
     and Disabled Transition Assistance Programs of May 4, 2006. 
     The combination of a transition assistance orientation, a new 
     web-based transition assistance portal, and an around-the-
     clock call center will address the full spectrum of needs and 
     concerns of demobilizing Guard and Reserve personnel by 
     providing the assistance whenever needed without 
     unnecessarily delaying the members' return to their homes 
     following deployments. The conferees encourage the expedited 
     implementation of this new approach.
     Military chaplains
       The House bill contained a provision (sec. 590) that would 
     amend sections 3547, 4337, 6031, 8547, and 9337 of title 10, 
     United States Code, to prescribe that military chaplains 
     shall have the prerogative to pray according to the dictates 
     of their conscience, except as must be limited by military 
     necessity, with any such limitation being imposed in the 
     least restrictive manner feasible.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees direct the Secretary of the Air Force to 
     rescind the policy and revised interim guidelines concerning 
     the exercise of religion in the Air Force issued on February 
     9, 2006, and direct the Secretary of the Air Force to 
     reinstate the policy that was set forth in the Air Force 
     Directive 52-1 dated July 1, 1999. The conferees further 
     direct the Secretary of the Navy to rescind the Secretary of 
     the Navy Instruction 1730.7C dated February 21, 2006, titled 
     ``Religious Ministry within the Department of the Navy,'' and 
     direct the Secretary of the Navy to reinstate the policy that 
     was set forth in the Secretary of the Navy Instruction 
     1730.7B dated October 12, 2000.
     Entrepreneurial service members empowerment task force
       The House bill contained a provision (sec. 592) that would 
     require the Secretary of Defense, in coordination with the 
     Administrator of the Small Business Administration,

[[Page 21099]]

     to establish a task force that would improve programs 
     designed to address the economic concerns and business 
     challenges of military member entrepreneurs and coordination 
     of programs by Federal agencies.
       The Senate amendment contained no similar provision.
       The House recedes.
     Funeral ceremonies for veterans
       The Senate amendment contained a provision (sec. 592) that 
     would amend section 1491 of title 10, United States Code, to 
     authorize the service secretaries, under regulations and 
     procedures prescribed by the Secretary of Defense, to support 
     the conduct of funeral honors that are provided solely by 
     members of veterans organizations for deceased veterans. The 
     provision would also amend section 4683 of title 10, United 
     States Code, to authorize the use at funeral ceremonies of M-
     1 rifles by designees of veterans organizations who are at 
     least 18 years of age, are the spouses, sons, daughters, 
     nephews, nieces, or other family relations of members or 
     former members of the Armed Forces, and have successfully 
     completed a formal firearm training program or a hunting 
     safety program.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees acknowledge and are deeply grateful for the 
     voluntary contribution of time, resources, and expertise by 
     veterans organizations and their members who provide funeral 
     honors for deceased veterans, particularly in rural and 
     remote areas far from military installations. Without their 
     assistance, the rendering of appropriate funeral honors when 
     requested by survivors to those who have served in the Armed 
     Forces would not be possible. The conferees believe that 
     greater effort is needed by the Department of Defense to 
     identify appropriate means to support veterans organization 
     partners in fulfilling this commitment. The conferees also 
     believe that reasonable steps should be taken to support 
     members of veterans organizations who render funeral honors 
     by loaning M-1 rifles under the authority of section 4683. 
     The conferees direct the Secretary of the Army to submit a 
     report to the Committees on Armed Services of the Senate and 
     the House of Representatives within 90 days of the date of 
     the enactment of this Act on current policies and practices 
     of the Army relating to limits or prohibitions being enforced 
     by the Army on the use of M-1 rifles by members of veterans 
     organizations who are relatives or family members of veterans 
     but not veterans themselves.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Legislative Provisions Adopted

                     Subtitle A--Pay and Allowances

     Fiscal year 2007 increase in military basic pay and reform of 
         basic pay rates (sec. 601)
       The House bill contained provisions (secs. 601-602) that 
     would increase the rate of basic pay for all military members 
     by 2.7 percent effective on January 1, 2007, and, for certain 
     mid-career personnel, increase the rate of pay by higher 
     percentages effective April 1, 2007.
       The Senate amendment contained a provision (sec. 601) that 
     would authorize a pay raise for members of the uniformed 
     services of 2.2 percent effective on January 1, 2007; target 
     pay raises for warrant officers and enlisted members serving 
     in the E-5 to E-7 grades that would be effective on April 1, 
     2007; and extend the basic pay table to 40 years, providing 
     longevity step increases for the highest officer, warrant 
     officer, and enlisted grades.
       The House recedes with a technical amendment.
     Increase in maximum rate of basic pay for general and flag 
         officer grades to conform to increase in pay cap for 
         Senior Executive Service personnel (sec. 602)
       The House bill contained a provision (sec. 603) that would 
     amend section 203(a)(2) of title 37, United States Code, to 
     provide that the rates of basic pay for officers in pay 
     grades O-7 through O-10 may not exceed the monthly equivalent 
     of the rate of pay for level II, vice III, of the Executive 
     Schedule.
       The Senate amendment contained a similar provision (sec. 
     602).
       The House recedes with a technical amendment.
     One-year extension of prohibition against requiring certain 
         injured members to pay for meals provided by military 
         treatment facilities (sec. 603)
       The Senate amendment contained a provision (sec. 604) that 
     would amend section 402(h)(3) of title 37, United States 
     Code, to extend for an additional year the prohibition on 
     requiring members who are undergoing medical recuperation or 
     therapy, or are otherwise in the status of continuous care, 
     including outpatient care, at a military treatment facility 
     for injuries, illnesses, or diseases incurred or aggravated 
     while serving on active duty in support of Operation Iraqi 
     Freedom or Operation Enduring Freedom, or in any other 
     operation designated by the Secretary of Defense as a combat 
     operation or in an area designated by the Secretary as a 
     combat zone. The provision would also require the Secretary 
     to submit a report to the congressional defense committees by 
     February 1, 2007, on the administration of section 402(h)(3), 
     including an assessment of the implementation of the 
     prohibition by the services and recommendations regarding 
     whether this authority should be made permanent.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Availability of second basic allowance for housing for 
         certain reserve component or retired members serving in 
         support of contingency operations (sec. 604)
       The House bill contained a provision (sec. 604) that would 
     amend section 403(g) of title 37, United States Code, to 
     authorize service secretaries to pay a second monthly basic 
     allowance for housing in lieu of per diem to reserve 
     component members without dependents mobilized in support of 
     a contingency operation.
       The Senate amendment contained a similar provision (sec. 
     605).
       The Senate recedes with an amendment that would make the 
     provision effective on or after October 1, 2006.
     Extension of temporary continuation of housing allowance for 
         dependents of members dying on active duty to spouses who 
         are also members (sec. 605)
       The House bill contained a provision (sec. 605) that would 
     amend section 403(l) of title 37, United States Code, to 
     provide that a member of the uniformed services, who is a 
     spouse of a deceased member who died while serving on active 
     duty, may continue to be paid the basic allowance for 
     housing.
       The Senate amendment contained a similar provision (sec. 
     606).
       The Senate recedes.
     Payment of full premium for coverage under Servicemembers' 
         Group Life Insurance program during service in Operation 
         Enduring Freedom or Operation Iraqi Freedom (sec. 606)
       The House bill contained a provision (sec. 607) that would 
     amend section 437 of title 37, United States Code, to 
     increase from $150,000 to $400,000 the amount of coverage 
     under the Servicemembers' Group Life Insurance that the 
     services would be required to fund for all members of the 
     Armed Forces serving in Operation Enduring Freedom or 
     Operation Iraqi Freedom.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Clarification of effective date of prohibition on 
         compensation for correspondence courses (sec. 607)
       The House bill contained a provision (sec. 606) that would 
     amend section 206(d) of title 37, United States Code, to 
     clarify that the prohibition on compensation for work or 
     study in connection with correspondence courses, including 
     the prohibition as it relates to a member of the National 
     Guard while not in federal service, applies to any such work 
     or study performed on or after September 7, 1962, and to any 
     claim for compensation based on such work or study arising 
     after that date
       The Senate amendment contained a similar provision (sec. 
     603).
       The Senate recedes.
       The conferees direct the Secretary of Defense to review the 
     policy regarding compensation of members of the reserve 
     components (which include officers and enlisted personnel of 
     the National Guard) for completing correspondence and 
     distance learning courses. The review should include an audit 
     of military professional education and other career 
     development and military skills courses that are required for 
     continued military service and advancement in the reserve 
     component. For those courses that do not afford reserve 
     component members practical options for attending in 
     residence, an assessment should be completed of the 
     feasibility and need for compensation as an incentive to 
     complete correspondence and distance learning courses. The 
     Secretary should report on the results of this review, 
     including any recommendations for legislative changes, by 
     July 31, 2007, to the Committees on Armed Services of the 
     Senate and the House of Representatives.
     Extension of pilot program on contributions to Thrift Savings 
         Plan for initial enlistees in the Army (sec. 608)
       The Senate amendment contained a provision (sec. 619) that 
     would extend the pilot program on contributions to the Thrift 
     Savings Plan for initial enlistees in the Army, as required 
     by section 606 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163), until December 31, 
     2008. The provision would also extend the due date for the 
     report on the pilot program to February 1, 2008.
       The House bill contained no similar provision.
       The House recedes.

           Subtitle B--Bonuses and Special and Incentive Pays

     Extension of certain bonus and special pay authorities for 
         reserve forces (sec. 611)
       The House bill contained a provision (sec. 611) that would 
     extend for 1 year the authority to pay the Selected Reserve 
     reenlistment

[[Page 21100]]

     bonus; the Selected Reserve affiliation or enlistment bonus; 
     the special pay for enlisted members assigned to certain high 
     priority units; the Ready Reserve enlistment bonus for 
     persons without prior service; the Ready Reserve enlistment 
     and reenlistment bonus for persons with prior service; and 
     the Selected Reserve enlistment bonus for persons with prior 
     service.
       The Senate amendment contained a similar provision (sec. 
     611).
       The House recedes.
     Extension of certain bonus and special pay authorities for 
         health care professionals (sec. 612)
       The House bill contained a provision (sec. 612) that would 
     extend the authority for the nurse officer candidate 
     accession program, the accession bonus for registered nurses, 
     the incentive special pay for nurse anesthetists, the special 
     pay for Selected Reserve health professionals in critically 
     short wartime specialties, the accession bonus for dental 
     officers, and the accession bonus for pharmacy officers until 
     December 31, 2007. Additionally, the provision would extend 
     the authority to repay the educational loans for certain 
     health professionals who serve in the Selected Reserve to 
     January 1, 2008.
       The Senate amendment contained a similar provision (sec. 
     612).
       The House recedes.
     Extension of special pay and bonus authorities for nuclear 
         officers (sec. 613)
       The House bill contained a provision (sec. 613) that would 
     extend for 1 year the authority to pay the special pay for 
     nuclear-qualified officers extending their period of active 
     service; the nuclear career accession bonus; and the nuclear 
     career annual incentive bonus.
       The Senate amendment contained an identical provision (sec. 
     613).
       The conference agreement includes this provision.
     Extension of authorities relating to payment of other bonuses 
         and special pays (sec. 614)
       The House bill contained a provision (sec. 614) that would 
     extend for 1 year the authority to pay the aviation officer 
     retention bonus; assignment incentive pay; the reenlistment 
     bonus for active members; the enlistment bonus; the retention 
     bonus for members qualified in critical military skills or 
     assigned to high priority units; the accession bonus for new 
     officers in critical skills; the incentive bonus for 
     conversion to military occupational specialty to ease 
     personnel shortage; and the incentive bonus for transfer 
     between the armed forces.
       The Senate amendment contained a similar provision (sec. 
     614). The provision would extend through December 31, 2009, 
     the authority to pay the incentive bonus for transfer between 
     the armed forces.
       The House recedes.
     Expansion of eligibility of dental officers for additional 
         special pay (sec. 615)
       The House bill contained a provision (sec. 615) that would 
     authorize additional special pay for dental officers while 
     they are undergoing dental internship or residency training.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Increase in maximum annual rate of special pay for Selected 
         Reserve health care professionals in critically short 
         wartime specialties (sec. 616)
       The House bill contained a provision (sec. 616) that would 
     increase the maximum annual rate of special pay for Selected 
     Reserve health care professionals in critically short wartime 
     specialties from $10,000 to $25,000.
       The Senate amendment contained a similar amendment (sec. 
     615).
       The House recedes with a clarifying amendment.
     Expansion and enhancement of accession bonus authorities for 
         certain officers in health care specialties (sec. 617)
       The House bill contained a provision (sec. 621) that would 
     authorize the Secretary of Defense to establish a 2-year 
     pilot program to offer additional financial incentives for up 
     to five critical medical specialties.
       The Senate amendment contained a provision (sec. 616) that 
     would authorize an increase in the maximum amount authorized 
     for an accession bonus for fully qualified dental officers 
     from $30,000 to $200,000, and an accession bonus of up to 
     $400,000 for fully qualified medical officers and dental 
     specialist officers in critically short wartime specialties.
       The House recedes with a technical amendment.
     Authority to provide lump sum payment of nuclear officer 
         incentive pay (sec. 618)
       The House bill contained a provision (sec. 617) that would 
     authorize nuclear officer incentive pay to be paid as a lump 
     sum or in variable amounts in addition to payment in equal 
     annual installments.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Increase in maximum amount of nuclear career accession bonus 
         (sec. 619)
       The House bill contained a provision (sec. 618) that would 
     increase the maximum amount of the nuclear career accession 
     bonus from $20,000 to $30,000.
       The Senate amendment contained a similar provision (sec. 
     617).
       The House recedes with a clarifying amendment.
     Increase in maximum amount of incentive bonus for transfer 
         between Armed Forces (sec. 620)
       The House bill contained a provision (sec. 619) that would 
     amend section 327(d)(1) of title 37, United States Code, to 
     increase the maximum authorized amount of the incentive bonus 
     for transfer between armed forces from $2,500 to $10,000.
       The Senate amendment contained a similar provision (sec. 
     618(d)).
       The Senate recedes with a technical amendment.
     Additional authorities and incentives to encourage retired 
         members and reserve component members to volunteer to 
         serve on active duty in high-demand, low-density 
         assignments (sec. 621)
       The House bill contained a provision (sec. 623) that would 
     add a new section 329 to title 37, United States Code. The 
     provision would authorize the Secretary of Defense to pay a 
     bonus of up to $50,000 to encourage retired members, 
     reservists, and former members discharged from the military 
     to return to active duty to fill manpower requirements in 
     units tasked to provide high-demand, low-density military 
     capabilities or to fill other specialties, as designated by 
     the Secretary as critical to meet wartime or peacetime 
     requirements. This section would also authorize the Secretary 
     to develop additional incentives to encourage personnel with 
     critical, high-demand, low-density skills to return to active 
     duty. The authority would expire on December 31, 2010. The 
     provision would also amend section 688a of title 10, United 
     States Code, to authorize the Secretary concerned to order to 
     active duty a retired member who agrees to serve on active 
     duty in an assignment intended to alleviate a high-demand, 
     low-density military capability.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     specify that members appointed under the authority of section 
     329 of title 37, United States Code, are not eligible for 
     promotion.
     Accession bonus for members of the Armed Forces appointed as 
         commissioned officers after completing officer candidate 
         school (sec. 622)
       The Senate amendment contained a provision (sec. 620) that 
     would amend title 37, United States Code, to add a new 
     section 330 that would authorize an accession bonus not to 
     exceed $8,000 for persons who complete officer candidate 
     school (OCS), accept a commission or appointment as an 
     officer of the armed forces, and serve on active duty in 
     accordance with the terms of their agreement. The provision 
     would also authorize the Secretary of the Army to pay an 
     accession bonus not to exceed $8,000 to a person who, during 
     the period beginning on April 1, 2005, and ending on April 6, 
     2006, executed an agreement to enlist for the purpose of 
     attending OCS and received a bonus under section 309 of title 
     37, United States Code, and who completed the terms of the 
     agreement required for payment of the bonus.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Modification of certain authorities applicable to the 
         targeted shaping of the Armed Forces (sec. 623)
       The House bill contained a provision (sec. 622) that would 
     expand the temporary program of voluntary separation 
     incentives (VSI) and benefits authorized by section 643 of 
     the National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163) to remove the bar prohibiting 
     participation of enlisted personnel and officers with between 
     12 and 20 years of service. The provision would also amend 
     section 1175 of title 10, United States Code, to extend the 
     expiration date of the authority from December 31, 2008, to 
     December 31, 2009.
       The Senate amendment contained a similar provision (sec. 
     618) that would increase the maximum authorized amount of the 
     VSI to an amount not greater than four times the full amount 
     of separation pay for a member of the same pay grade and 
     years of service who is involuntarily separated under section 
     1174 of title 10, United States Code, and extend the 
     authority to use the provision through December 31, 2012. The 
     provision would amend sections 638 and 638a of title 10, 
     United States Code, to relax limitations on use of selective 
     early retirements and discharges through December 31, 2012.
       The House recedes with an amendment that would delete 
     provisions relating to the expanded use of selective early 
     retirement boards under sections 638 and 638a.
     Enhancement of bonus to encourage certain persons to refer 
         other persons for enlistment in the Army (sec. 624)
       The House bill contained a provision (sec. 620) that would 
     amend section 645(a) of the National Defense Authorization 
     Act for Fiscal Year 2006 (Public Law 109-163) to clarify that 
     military retirees, to include members of a reserve component 
     under 60 years of age

[[Page 21101]]

     who, but for age, would be eligible for retired pay, are 
     eligible to be paid the referral bonus.
       The Senate amendment contained a similar provision (sec. 
     621). The provision would increase the maximum amount of the 
     bonus not to exceed $2,000; provide that civilian employees 
     of the Department of the Army are also eligible to receive 
     the referral bonus; and specify that a referral bonus paid to 
     a retiree is in addition to any compensation to which such a 
     member is entitled under titles 10, 37, or 38 United States 
     Code, or under any other provision of law.
       The House recedes with an amendment that would make 
     administrators or instructors in the Junior Reserve Officers' 
     Training Corps program or retired members of the Army 
     employed as administrators or instructors in the program 
     ineligible for the bonus.

            Subtitle C--Travel and Transportation Allowances

     Travel and transportation allowances for transportation of 
         family members incident to illness or injury of members 
         (sec. 631)
       The House bill contained a provision (sec. 633) that would 
     amend section 411h of title 37, United States Code, to 
     authorize the payment of travel and transportation allowances 
     to a person related to a seriously injured or ill member 
     covered under section 411h, who is also a member of the Armed 
     Forces.
       The Senate amendment contained no similar provision.
       The Senate recedes.

             Subtitle D--Retired Pay and Survivor Benefits

     Retired pay of general and flag officers to be based on rates 
         of basic pay provided by law (sec. 641)
       The Senate amendment contained a provision (sec. 650) that 
     would add a new section 1407a to title 10, United States 
     Code, that would control the calculation of the retired pay 
     of a flag or general officer whose rate of pay while on 
     active duty was subject to a reduction under section 
     203(a)(2) of title 37. The provision would provide that such 
     a determination would be made using the rates of basic pay in 
     effect as provided by law rather than rates reduced under 
     section 203(a)(2). The effective date for this provision 
     would be October 1, 2006.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Inapplicability of retired pay multiplier maximum percentage 
         to service of members of the Armed Forces in excess of 30 
         years (sec. 642)
       The Senate amendment contained a provision (sec. 651) that 
     would amend sections 1409 and 12739 of title 10, United 
     States Code, to provide that in the case of a member who 
     retires after December 31, 2006, with more than 30 years of 
     creditable service, the percentage to be used to calculate 
     retired pay would increase based on the years of active-duty 
     or reserve service in excess of 30 years pursuant to a 
     prescribed formula. The Secretary of Defense would be 
     authorized to establish conditions under which this higher 
     rate of retired pay would be afforded for purposes of this 
     provision.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Military Survivor Benefit Plan beneficiaries under insurable 
         interest coverage (sec. 643)
       The House bill contained a provision (sec. 641) that would 
     amend section 1448(b)(1) of title 10, United States Code, to 
     allow military retirees who participate in the Survivor 
     Benefit Plan and elect the insurable interest coverage to 
     select a new insurable interest if their designated 
     beneficiary dies.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Modification of eligibility for commencement of authority for 
         optional annuities for dependents under the Survivor 
         Benefit Plan (sec. 644)
       The House bill contained a provision (sec. 645) that would 
     express the sense of Congress that eligibility for a 
     surviving child annuity in lieu of a surviving spouse annuity 
     under the Survivor Benefit Plan (SBP) for a child of a member 
     of the Armed Forces who dies while on active duty should be 
     extended so as to cover children of members who die after 
     October 7, 2001, rather than only children of members dying 
     after November 23, 2003.
       The Senate amendment contained a provision (sec. 652) that 
     would amend section 1448(d)(2)(B) of title 10, United States 
     Code, to effect the foregoing change to SBP elections based 
     on service member deaths after October 7, 2001.
       The House recedes.
     Study of training costs, manning, operations tempo, and other 
         factors that affect retention of members of the Armed 
         Forces with special operations designations (sec. 645)
       The House bill contained a provision (sec. 644) that would 
     require the Secretary of Defense to submit a report, not 
     later than 90 days after the date of the enactment of this 
     Act, on retention of members of the Armed Forces who have a 
     special operations forces designation.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delete 
     certain matters to be reported on, and require that the 
     report be submitted no later than August 1, 2007.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

     Treatment of price surcharges of certain merchandise sold at 
         commissary stores (sec. 661)
       The House bill contained a provision (sec. 651) that would 
     clarify that revenues for products that are sold in 
     commissary stores as special exceptions to the standard 
     surcharge shall be applied to the surcharge fund as if it 
     were a uniform surcharge product.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Limitations on lease of non-excess Department of Defense 
         property for protection of morale, welfare, and 
         recreation activities and revenue (sec. 662)
       The House bill contained a provision (sec. 652) that would 
     prohibit the Secretary of Defense from entering into a lease 
     for enhanced use of non-excess Department of Defense 
     property, which includes the establishment or operation of an 
     ancillary support facility if that facility would be in 
     direct competition with military exchanges, commissaries, and 
     morale, welfare, and recreation activities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require a 
     lessee to provide military exchanges, commissaries, and 
     morale, welfare, and recreation activities the right to 
     establish and operate a community support facility or provide 
     community support services that are determined to be in 
     direct competition with facilities or activities of those 
     entities, or to seek equitable compensation for Department 
     morale, welfare, and recreation programs in lieu of operation 
     of such a facility or service. The amendment would allow 
     these entities 90 days within which to exercise the right to 
     establish or operate such community support facilities or 
     services, and require notification to Congress regarding all 
     leases for enhanced use that include such facilities or 
     services. The amendment would also require the Secretary to 
     prescribe uniform procedures and criteria for the evaluation 
     of proposals for enhanced use leases involving the operation 
     of community support facilities or services by either a 
     lessee or a military exchange, commissary, or morale, 
     welfare, and recreation entity. The conferees note that the 
     term ``lodging support services'' as used in the provision 
     was intended to include coin operated machines, lobby store 
     for personal items and snacks, restaurants/snack bars, and 
     other similar support services.
       The conferees direct the Secretary to ensure that the 
     notifications required in subsection (d)(6) of the amendment 
     are carried out in the same manner as approval or disapproval 
     is obtained from the Committees on Armed Services of the 
     Senate and the House of Representatives for non-appropriated 
     fund military construction projects.
     Report on cost effectiveness of purchasing commercial 
         insurance for commissary and exchange facilities and 
         facilities of other morale, welfare, and recreation 
         programs and nonappropriated fund instrumentalities (sec. 
         663)
       The House bill contained a provision (sec. 654) that would 
     require the Secretary of Defense to submit a report to 
     Congress evaluating the cost effectiveness of the Defense 
     Commissary Agency and certain nonappropriated fund activities 
     purchasing commercial insurance to protect financial 
     interests in facilities operated by morale, welfare, and 
     recreation activities, military exchange stores, and 
     commissary stores against loss or damage.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Study and report regarding access of disabled persons to 
         morale, welfare, and recreation facilities and activities 
         (sec. 664)
       The House bill contained a provision (sec. 662) that would 
     require the Secretary of Defense to conduct a pilot project 
     at a significant number of military golf courses for the 
     purpose of developing a strategy to make golfs carts that are 
     accessible for disabled persons available at all military 
     golf courses.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to conduct a study of the current capability of 
     Department of Defense morale, welfare, and recreation 
     facilities and nonappropriated fund activities to provide 
     access and accommodation to disabled persons, with specific 
     attention to the applicability of section 504 of the 
     Rehabilitation Act of l973 (Public Law 93-112). The amendment 
     would require the study to include plans to make available 
     additional golf carts at military golf courses

[[Page 21102]]

     that are accessible for disabled persons authorized to use 
     such courses. The amendment would require the Secretary to 
     report to Congress on the results of the study not later than 
     180 days after the date of the enactment of this Act.

                       Subtitle F--Other Matters

     Limitations on terms of consumer credit extended to 
         servicemembers and dependents (sec. 670)
       The Senate amendment contained a provision (sec. 666) that 
     would amend title II of the Servicemembers Civil Relief Act 
     (50 U.S.C. App. 521 et seq.) (SCRA) to add a new section 208 
     that would regulate the terms of consumer credit extended by 
     creditors to servicemembers and servicemembers' dependents. 
     The provision would: (1) prohibit creditors from imposing an 
     annual percentage rate greater than 36 percent for consumer 
     credit loans; (2) require prescribed mandatory loan 
     disclosures, including a clear description of payment 
     obligations; (3) prohibit creditors from automatically 
     renewing, repaying, refinancing, or consolidating a loan 
     without executing new loan documentation and loan 
     disclosures; and (4) preempt any State or Federal law or 
     regulation to the extent that such law or regulation is 
     inconsistent with this provision. The provision would provide 
     penalties, including fines as provided in title 18, United 
     States Code, or imprisonment for not more than 1 year.
       The House bill contained no similar provision.
       The House recedes with an amendment that would amend title 
     10, rather than the SCRA, to add a new section 987 that would 
     establish additional protections for servicemembers and their 
     dependents who are extended credit. The amendment would 
     prohibit creditors from charging servicemembers and their 
     dependents annual percentage rates of interest for loans 
     higher than the legal limits for residents of the State. The 
     amendment would prohibit violation or waiver of any State 
     consumer lending protections that protect residents of the 
     State on the basis of nonresident or military status. The 
     amendment would set forth specific limitations on lending 
     practices by creditors who extend credit to covered members 
     and their dependents, including mandatory waiver of a 
     borrower's right to legal recourse using a check or other 
     means of access to a deposit, savings, or other financial 
     account maintained by the borrower; or using the title of a 
     vehicle as security for an obligation. The amendment would 
     direct the Secretary of Defense, in consultation with other 
     Federal regulatory agencies, including the Federal Trade 
     Commission, the Board of Governors of the Federal Reserve 
     System, the Office of the Comptroller of the Currency, the 
     Federal Deposit Insurance Corporation, the Office of Thrift 
     Supervision, the National Credit Union Administration, and 
     the Treasury Department, to prescribe regulations to carry 
     out this provision.
     Enhancement of authority to waive claims for overpayment of 
         pay and allowances and travel and transportation 
         allowances (sec. 671)
       The Senate amendment contained a provision (sec. 665) that 
     would amend section 2774 of title 10, United States Code, to 
     specify that a claim of the United States against a person 
     arising out of an erroneous payment of a bonus, special pay, 
     or incentive pay, in addition to erroneous payment of pay or 
     allowances, may be waived. The provision would also increase 
     the dollar limit for waivers from $1,500 to $10,000 and 
     extend the period in which a waiver may be granted from 3 
     years to 5 years. The provision would require that any 
     modifications to standards under section 2774 controlling 
     waivers of claims necessitated by this provision be completed 
     not later than March 1, 2007.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     requirement for modifications to applicable standards and the 
     provision relating to bonuses, special pays, and incentive 
     pays as unnecessary.
     Exception for notice to consumer reporting agencies regarding 
         debts or erroneous payments pending a decision to waive, 
         remit, or cancel (sec. 672)
       The Senate amendment contained a provision (sec. 664) that 
     would amend section 2780 of title 10, United States Code, to 
     prohibit disclosure of information to consumer reporting 
     agencies concerning indebtedness of a member that is 
     delinquent by more than 3 months while a decision regarding 
     waiver, remission, or cancellation is pending.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Expansion and enhancement of authority to remit or cancel 
         indebtedness of members and former members of the Armed 
         Forces incurred on active duty (sec. 673)
       The House bill contained a provision (sec. 663) that would 
     amend sections 4837, 6161, and 9837 of title 10, United 
     States Code, to extend the termination date of the temporary 
     expanded authority to remit or cancel indebtedness of 
     military members included in section 683 of the National 
     Defense Authorization Act for Fiscal Year 2006 (Public Law 
     109-163) from December 31, 2007, to December 31, 2009. The 
     provision would also increase the period of time from 1 year 
     to 5 years following honorable discharge or separation during 
     which the service secretaries may exercise the expanded 
     authority to remit and cancel indebtedness.
       The Senate amendment contained a similar provision (sec. 
     663) that would extend the applicability of the remission or 
     cancellation authority to retired members. The provision 
     would also authorize the Secretary of Defense to determine 
     the limits on the time for exercise of the authority to remit 
     or cancel indebtedness by regulation.
       The House recedes with an amendment that would authorize 
     service secretaries to remit or cancel indebtedness of 
     persons incurred while they served on active duty in the 
     armed forces. The amendment would eliminate limits on the 
     allowable period of exercise of their authority retroactive 
     to October 7, 2001, and make the authority to remit or cancel 
     indebtedness permanent.
       The conferees believe that the Secretary of Defense must 
     take more forceful steps to ensure that policies and 
     procedures used by the Defense Finance and Accounting Service 
     and the services relating to the collection of indebtedness 
     incurred by members are cost-effective and equitable. 
     Collection practices must take into account fully the 
     problems created by existing manual pay systems, sources of 
     errors causing overpayments, and the harmful effects on 
     morale of belated, computer-generated efforts to recoup pay 
     from members, particularly those who have served under combat 
     conditions, whose overpayments occurred through no fault of 
     the member.
     Phased recovery of overpayments of pay made to members of the 
         uniformed services (sec. 674)
       The House bill contained a provision (sec. 664) that would 
     amend section 1007 of title 37, United States Code, to 
     provide that the amount deducted from the pay of a member to 
     recover an overpayment may not exceed 20 percent per month of 
     the member's pay when the overpayment occurred through no 
     fault of the member. Additionally, no deduction would be 
     authorized from the pay of a member who has been wounded or 
     injured in the line of duty or who incurred an illness in a 
     combat operation or combat zone until the 90-day period 
     beginning on the date on which the member is notified of the 
     overpayment has expired.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     waiver of the conditions limiting collection of overpayments 
     if the member requests or consents to collection of the 
     overpayment at an accelerated rate or at an earlier date.
     Joint family support assistance program (sec. 675)
       The Senate amendment contained a provision (sec. 667) that 
     would require the Secretary of Defense to establish a joint 
     family support program in at least six regions in the United 
     States. The program would provide financial and other 
     assistance to families of members of the Armed Forces, 
     including sponsorship of volunteers and coordination of 
     family assistance activities of the Department of Defense as 
     well as other public and private entities. The provision 
     would also authorize $5.0 million in Operation and 
     Maintenance, Defense-wide to provide financial, material, or 
     other support to nonprofit entities to facilitate assistance 
     by those entities to geographically isolated family members 
     of the Armed Forces. The authority for both programs would 
     expire 3 years after the initial obligation of funds.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     number of joint family support assistance regional sites to 
     six, and clarify that the program is not intended to operate 
     in lieu of existing family support centers, but rather to 
     augment the activities of the Department of Defense and the 
     military departments family support centers. The amendment 
     would also delete the authorization for grants to nonprofit 
     entities.
       The conference outcome is reflected in the tables in this 
     report.
     Special working group on transition to civilian employment of 
         National Guard and Reserve members returning from 
         deployment in Operation Iraqi Freedom or Operation 
         Enduring Freedom (sec. 676)
       The Senate amendment contained a provision (sec. 682) that 
     would require the Secretary of Defense to establish a working 
     group to identify and assess the needs of members of the 
     National Guard and Reserve returning from deployment in 
     Operation Iraqi Freedom or Operation Enduring Freedom in the 
     transition to civilian employment. The working group would be 
     required to report its recommendations to Congress within 1 
     year on the provision of assistance to employers and 
     employment assistance organizations, and ways to improve 
     collaboration between the public and private sector in order 
     to ensure the successful transition of members into civilian 
     employment.
       The House bill contained no similar provision.

[[Page 21103]]

       The House recedes with an amendment that would require the 
     working group to assess the extent to which members of the 
     National Guard and Reserve receive promotions, or experience 
     termination of employment, upon their return from deployment 
     in Operation Iraqi Freedom or Operation Enduring Freedom.
     Audit of pay accounts of members of the Army evacuated from a 
         combat zone for inpatient care (sec. 677)
       The Senate amendment contained a provision (sec. 661) that 
     would require the Secretary of the Army to conduct an audit 
     of the pay accounts of each member of the Army wounded or 
     injured in a combat zone who was evacuated from a theater of 
     operations for inpatient care during the period beginning on 
     May 1, 2005, and ending on April 30, 2006. The provision 
     would also require the Secretary of the Army to submit a 
     report to the congressional defense committees, no later than 
     120 days after the date of enactment of this Act, on the 
     results of the audit. The provision would also require the 
     Secretary of Defense to establish within the Department of 
     Defense a call assistance center for resolution of military 
     pay problems.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     requirement for establishment of a call assistance center in 
     view of the availability of other means for members and their 
     dependents to obtain assistance in resolving pay problems.
     Report on eligibility and provision of assignment incentive 
         pay (sec. 678)
       The House bill contained a provision (sec. 624) that would 
     express the sense of Congress that the Secretary of the Army 
     should correct a pay inequity in the provision of assignment 
     incentive pay under section 307a of title 37, United States 
     Code, to certain members of the Army National Guard and the 
     Army Reserve serving on active duty in Afghanistan and Iraq. 
     The provision would require a report by the Secretary of the 
     Army, not later than 30 days after the date of enactment of 
     this Act, specifying the number of members adversely affected 
     by the disparate treatment of members who previously served 
     under a call or order to active duty under section 12304 of 
     title 10, United States Code, in determining eligibility for 
     assignment incentive pay, and setting forth proposed remedies 
     or courses of action.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delete the 
     sense of Congress provision and extend the due date of the 
     required Secretary of the Army report by 30 days.
     Sense of Congress calling for payment to World War II 
         veterans who survived Bataan Death March (sec. 679)
       The House bill contained a provision (sec. 665) that would 
     express the sense of Congress that there should be paid to 
     Bataan Death March survivors or, if deceased, to their 
     surviving spouses, an amount equaling $4 for each day of 
     captivity during World War II, compounded annually at a 3 
     percent annual rate of interest.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would express the 
     sense of Congress that an appropriate amount of compensation 
     should be paid to Bataan Death March survivors or, if 
     deceased, to their surviving spouses in recognition of their 
     captivity.

                   Legislative Provisions Not Adopted

     Authority to pay costs associated with delivery of motor 
         vehicle to storage location selected by member and 
         subsequent removal of vehicle
       The House bill contained a provision (sec. 631) that would 
     amend section 2634 of title 10, United States Code, to 
     authorize payment to military members for the costs of 
     delivery and removal of privately-owned vehicles from storage 
     locations chosen by the member.
       The Senate amendment contained no similar provision.
       The House recedes.
     Transportation of additional motor vehicle of members on 
         change of permanent station to or from nonforeign areas 
         outside the continental United States
       The House bill contained a provision (sec. 632) that would 
     amend section 2634 of title 10, United States Code, to 
     authorize certain military members to ship two privately-
     owned vehicles during permanent change of station moves to 
     nonforeign duty locations located outside the continental 
     United States. Nonforeign duty locations would include 
     Alaska, Hawaii, Puerto Rico, Guam, and other territories and 
     possessions.
       The Senate amendment contained no similar provision.
       The House recedes.
     Retroactive payment of additional death gratuity for certain 
         members not previously covered
       The House bill contained a provision (sec. 642) that would 
     amend section 1478(d)(2) of title 10, United States Code, to 
     retroactively extend the applicability of the enhanced death 
     gratuity to survivors of military decedents who died on 
     active duty between May 12, 2005, and August 31, 2005.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that this legislative change was 
     previously enacted as section 1210 of the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006 (Public Law 109-234).
     Repeal of requirement of reduction of Survivor Benefit Plan 
         survivor annuities by dependency and indemnity 
         compensation
       The Senate amendment contained a provision (sec. 642) that 
     would amend sections 1450 and 1451 of title 10, United States 
     Code, to repeal the requirement for reduction of annuities 
     received under the Survivor Benefit Plan by the amount of 
     dependency and indemnity compensation paid to certain 
     beneficiaries under section 1311(a) of title 38, United 
     States Code.
       The House bill contained no similar provision.
       The Senate recedes.
     Effective date of paid-up coverage under Survivor Benefit 
         Plan
       The Senate amendment contained a provision (sec. 643) that 
     would amend section 1452(j) of title 10, United States Code, 
     to change the effective date for paid-up coverage under the 
     Survivor Benefit Plan from October 1, 2008, to October 1, 
     2006.
       The House bill contained no similar provision.
       The Senate recedes.
     Equity in computation of disability retired pay for reserve 
         component members wounded in action
       The House bill contained a provision (sec. 643) that would 
     modify section 1208(b) of title 10, United States Code, to 
     authorize calculation of the retired pay of a member of a 
     reserve component using the member's total years of service 
     in lieu of active-duty years of service when the member's 
     retirement is based upon a disability that was incurred under 
     circumstances that resulted in the award of the Purple Heart.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees believe that a review should be conducted of 
     the disability retirement benefits provided to members of the 
     Reserve and National Guard, particularly with respect to 
     combat-related disabilities adversely affecting the future 
     earning potential of military members. The conferees are 
     concerned that, particularly in the case of disabilities 
     resulting in retirement for physical disability, which were 
     incurred as a result of combat or combat-related training, 
     the military compensation system must equitably treat all 
     active and reserve component members. The conferees direct 
     the Secretary of Defense to submit a report to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives, not later than February 1, 2007, comparing 
     the compensation of reserve and active-duty members and the 
     feasibility of modifying existing laws controlling the 
     calculation of disability retirement benefits to ensure equal 
     treatment of active and reserve personnel under various 
     circumstances, including combat operations.
     Expansion of conditions for direct payment of divisible 
         retired pay
       The Senate amendment included a provision (sec. 644) that 
     would amend section 1408(d) of title 10, United States Code, 
     to provide that direct payments of divisible retired pay by 
     the Defense Finance and Accounting Service (DFAS) may be made 
     in all cases in accordance with the terms of a court decree. 
     The provision would not affect the eligibility of former 
     spouses of military members for a portion of retired pay and 
     would only enable DFAS to provide direct payment.
       The House bill contained no similar provision.
       The Senate recedes.
     Authority for cost of living adjustments of retired pay 
         treated as divisible property
       The Senate amendment contained a provision (sec. 645) that 
     would amend section 1408 of title 10, United States Code, to 
     authorize payment of cost of living adjustments in connection 
     with awards of retired pay stated in dollar amounts.
       The House bill contained no similar provision.
       The Senate recedes.
     Notice and copy to members of court orders on payment of 
         retired pay
       The Senate amendment contained a provision (sec. 646) that 
     would amend section 1408 of title 10, United States Code, to 
     allow a member to waive notice of an application for payment 
     of retired pay and eliminate the requirement that a copy of 
     the court order be sent to the member in every case.
       The House bill contained no similar provision.
       The Senate recedes.
     Renaming of death gratuity payable for deaths of members of 
         the Armed Forces as fallen hero compensation
       The Senate amendment contained a provision (sec. 648) that 
     would amend sections 1474 through 1480 and 1489 of title 10, 
     United States Code, to change the term death gratuity to 
     fallen hero compensation.

[[Page 21104]]

       The House bill contained no similar provision.
       The Senate recedes.
     Effective date of termination of phase-in of concurrent 
         receipt for veterans with service-connected disabilities 
         rated as total by virtue of unemployability
       The Senate amendment contained a provision (sec. 649) that 
     would amend section 1414(a)(1) of title 10, United States 
     Code, to provide that qualified retirees receiving veterans' 
     disability compensation at the rate payable for a 100 percent 
     disability by reason of a determination of individual 
     unemployability would only be subject to phased-in 
     implementation of authorization to receive both military 
     retired pay and veterans' disability compensation for the 
     period beginning on January 1, 2004, and ending on December 
     31, 2004, vice September 30, 2009.
       The House bill contained no similar provision.
       The Senate recedes.
     Commencement of receipt of non-regular service retired pay by 
         members of the Ready Reserve on active Federal status or 
         active duty for significant periods
       The Senate amendment contained a provision (sec. 653) that 
     would amend section 12731 of title 10, United States Code, to 
     provide that members of the Ready Reserve who have served on 
     active duty or performed active service after September 11, 
     2001, would be eligible to have their age for receipt of 
     retired pay reduced by 3 months for each aggregate of 90 days 
     of active duty or active service performed in any fiscal 
     year. Qualifying service for purposes of this provision would 
     be service on active duty pursuant to a call or order to 
     active duty under a provision of law referred to in section 
     101(a)(13)(B) of title 10, United States Code, or under 
     section 12301(d) of that title. Qualifying active service 
     would be under a call to active service authorized by the 
     President or Secretary of Defense under section 502(f) of 
     title 32 for purposes of responding to a national emergency 
     declared by the President or supported by Federal funds.
       The House bill contained no similar provision.
       The Senate recedes.
     Use of nonappropriated funds to supplement or replace 
         appropriated funds for construction of facilities of 
         exchange stores system or other nonappropriated fund 
         instrumentalities, military lodging facilities, and 
         community facilities
       The House bill contained a provision (sec. 653) that would 
     authorize the Secretary of Defense to allocate 
     nonappropriated funds to augment or replace appropriated 
     funding of construction of military exchanges and lodging, as 
     well as morale, welfare, and recreation and community 
     facilities, after providing notice to Congress.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees acknowledge the use of nonappropriated funds 
     by the Department of Defense for construction of certain 
     child care, lodging and other facilities, yet believe that 
     such use should be limited to extraordinary circumstances 
     when appropriated funds are not available, and only following 
     notification to Congress.
       The conferees direct the Secretary of Defense to submit to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives by February 1, 2007, a report which covers 
     the following:
       (1) the history of the Department's use of nonappropriated 
     funds, during the period of October 1, 1995, through 
     September 30, 2006, for construction of:
       (a) facilities of the exchange stores system and other 
     revenue-generating facilities operated by nonappropriated 
     fund instrumentalities of the Department for the morale, 
     welfare, and recreation of members of the Armed Forces;
       (b) facilities of other nonappropriated fund 
     instrumentalities of the Department for the morale, welfare, 
     and recreation of members of the Armed Forces;
       (c) military lodging facilities used to provide temporary 
     lodging to authorized members of the Armed Forces, including 
     temporary duty lodging, permanent change of station lodging, 
     recreational lodging, and military treatment facility 
     lodging; and
       (d) community facilities intended to supplement mission 
     activities, such as military museums and service academy 
     extra-curricular activities, or to facilitate private 
     organizations or enterprises, such as financial services, 
     memorials, and thrift shop facilities, on military 
     installations;
       (2) the justification and rationale for utilization of 
     nonappropriated funds for any construction project identified 
     above; and
       (3) recommendations for changes in legislation, if any, and 
     specific criteria that would clarify any instance in which 
     nonappropriated funds would be appropriately allocated to a 
     project that directly supports military requirements and 
     would otherwise be funded using authorized appropriations.
     Pilot program on Troops to Nurse Teachers
       The Senate amendment contained a provision (sec. 662) that 
     would require the Secretary of Defense, in coordination with 
     the Secretary of Health and Human Services and the Secretary 
     of Education, to conduct a pilot program to assess the 
     feasibility and potential benefits of a program to provide 
     scholarships and assist certain nurse corps officers in 
     achieving necessary qualifications to become nurse educators 
     and help alleviate the national shortage of nurse educators 
     and registered nurses.
       The House bill contained no similar provision.
       The Senate recedes.
     Short title
       The Senate amendment contained a provision (sec. 681) that 
     would establish a short title, the ``Heroes at Home Act of 
     2006.''
       The House bill contained no similar provision.
       The Senate recedes.
     Office for employers and employment assistance organizations
       The Senate amendment contained a provision (sec. 683) that 
     would require the Secretary of Defense to designate an office 
     within the Department to assist employers and employment-
     related organizations in facilitating the transition of 
     National Guard and Reserve members returning from Operation 
     Iraqi Freedom and Operation Enduring Freedom to civilian 
     employment.
       The House bill contained no similar provision.
       The Senate recedes.
     Grants on assistance in community-based settings for members 
         of the National Guard and reserve and their families 
         after deployment in Operation Iraqi Freedom and Operation 
         Enduring Freedom
       The Senate amendment contained a provision (sec. 685) that 
     would authorize the Secretary of Defense to award grants to 
     community-based organizations for the provision of assistance 
     to members of the National Guard and Reserve who serve in 
     Operation Iraqi Freedom and Operation Enduring Freedom, and 
     their families, following return from deployment. The grants 
     would support services to improve the reuniting of families, 
     and education and awareness of health and mental health 
     needs, including post traumatic stress disorder and traumatic 
     brain injury.
       The House bill contained no similar provision.
       The Senate recedes.

                   TITLE VII--HEALTH CARE PROVISIONS

                     Legislative Provisions Adopted

                Subtitle A--TRICARE Program Improvements

     TRICARE coverage for forensic examination following sexual 
         assault or domestic violence (sec. 701)
       The House bill contained a provision (sec. 701) that would 
     authorize coverage under TRICARE for forensic examinations 
     following a sexual assault or domestic violence.
       The Senate amendment contained an identical provision (sec. 
     704).
       The conference agreement includes this provision.
     Authorization of anesthesia and other costs for dental care 
         for children and certain other patients (sec. 702)
       The House bill contained a provision (sec. 702) that would 
     authorize coverage under TRICARE for anesthesia and 
     institutional costs for dental treatment for beneficiaries 
     with developmental, mental or physical disabilities, and 
     children under the age of five.
       The Senate amendment contained a similar provision (sec. 
     703).
       The Senate recedes.
     Improvements to descriptions of cancer screening for women 
         (sec. 703)
       The House bill contained a provision (sec. 703) that would 
     modify the terminology in section 1074d of title 10, United 
     States Code, which authorizes certain screening tests for 
     breast and cervical cancers.
       The Senate amendment contained a similar provision (sec. 
     701).
       The House recedes with a technical amendment.
     Prohibition on increases in certain health care costs for 
         members of the uniformed services (sec. 704)
       The House bill contained a provision (sec. 704) that would 
     prohibit the Secretary of Defense from increasing any 
     premiums, deductibles, copayment, or other charges under 
     Department of Defense contracts for medical care for 
     retirees, dependents, and survivors between April 1, 2006, 
     and December 31, 2007. The provision would prohibit any 
     increase during the same period of time in civilian inpatient 
     hospital charges, as well as in enrollment premiums for each 
     of the 3 tiers of health care coverage under the TRICARE 
     program for members of the Selected Reserve.
       The Senate amendment contained similar provisions (secs. 
     705-706). Section 705 would prohibit any increase in TRICARE 
     Prime enrollment fees during fiscal year 2007. Section 706 
     would limit any increase in the amount of premiums for the 
     TRICARE program for members of the Selected Reserve to 2.2 
     percent in fiscal year 2007.
       The Senate recedes with an amendment that would prohibit an 
     increase in such fees, copayments, and premiums between April 
     2, 2006, and September 30, 2007.
     Demonstration project on coverage of selected over-the-
         counter drugs under the pharmacy benefits program (sec. 
         705)
       The House bill contained a provision (sec. 706) that would 
     require the Secretary of Defense to conduct a demonstration 
     project to

[[Page 21105]]

     allow certain over-the-counter drugs to be included on the 
     uniform formulary of the Department of Defense pharmacy 
     program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that the evaluation of the demonstration project address the 
     cost and benefits of providing over-the-counter drugs under 
     the Department of Defense pharmacy program, the clinical 
     effectiveness of providing such drugs, and customer 
     satisfaction with the demonstration project.
       The conferees expect that in any instance in which an over-
     the-counter medication is dispensed, as part of the 
     demonstration project required by this section, notification 
     will be provided to the patient in a manner similar to that 
     required by current policy when a generic agent is 
     substituted for a brand name product.
     Expanded eligibility of Selected Reserve members under 
         TRICARE program (sec. 706)
       The House bill contained a provision (sec. 709) that would 
     expand eligibility for coverage under the TRICARE program to 
     all members of the Selected Reserve and their families while 
     in a non-active duty status based on payment of an amount 
     equal to 28 percent of a monthly premium established by the 
     Secretary of Defense. The provision would take effect not 
     later than October 1, 2007. It would not apply to members who 
     are eligible for health insurance under chapter 89 of title 
     V, United States Code. The provision would repeal the three-
     tiered cost sharing program for members of the Selected 
     Reserve established in section 702 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163).
       The Senate amendment contained a provision (sec. 708) that 
     would enhance the existing tiered benefit structure for all 
     members of the Selected Reserve by adding members employed by 
     businesses with 20 or fewer employees to those eligible for 
     coverage based on payment of 50 percent of a monthly premium 
     established by the Secretary. The Senate amendment would also 
     reduce from 85 percent to 75 percent the portion of a monthly 
     premium paid by members who, though eligible for employer-
     provided insurance, chose primary coverage under TRICARE.
       The Senate recedes.
     Relationship between the TRICARE program and employer-
         sponsored group health care plans (sec. 707)
       The House bill contained a provision (sec. 710) that would 
     extend to TRICARE the same rule that applies to the Medicare 
     program making it unlawful for an employer or other entity to 
     offer any financial or other incentive for a retired TRICARE 
     beneficiary not to enroll under an employer-provided group 
     health plan. The provision would also authorize the Secretary 
     of Defense to discontinue a relationship with a Department of 
     Defense contractor for repeated violations of this provision. 
     The provision would take effect on January 1, 2008.
       The Senate amendment contained a similar provision (sec. 
     722).
       The Senate recedes with an amendment that would clarify 
     that TRICARE eligible employees have the opportunity to elect 
     to participate in an employer group health plan in the same 
     manner as other similarly situated employees, and that the 
     provision would not be construed to effect, modify, or 
     terminate the eligibility of a TRICARE eligible employee or 
     spouse for their earned military health care entitlement 
     authorized under chapter 55, title 10, United States Code. 
     The amendment would also delete the authority for the 
     Secretary to terminate Department contractor relationships 
     based on repeated violations of this provision because the 
     Federal Acquisition Regulation already specifies the 
     circumstances under which repeated violations of law may be a 
     basis for suspension or debarment of a Department contractor.
       The conferees are aware of concerns that have been 
     expressed regarding the treatment of cafeteria plans 
     authorized under section 125 of the Internal Revenue Code and 
     non-TRICARE exclusive employer-provided health care 
     incentives under this provision. The conferees direct the 
     Secretary to report, not later than April 1, 2007, to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives on the treatment of cafeteria plans and non-
     TRICARE exclusive employer-provided health care incentives 
     under the Department's implementation of this provision. This 
     report shall assess the treatment of such plans under the 
     Medicare Secondary Payer statute and regulations and such 
     incentives, and include any recommendations the Secretary 
     finds appropriate to ensure fair treatment of all TRICARE 
     beneficiaries under this provision.
     Temporary prohibition on increase in copayments under retail 
         pharmacy system of pharmacy benefits program (sec. 708)
       The Senate amendment contained a provision (sec. 707) that 
     would prohibit any increase in the cost sharing requirements 
     for pharmaceuticals available through the Department of 
     Defense retail pharmacy program during fiscal year 2007.
       The House bill contained no similar provision.
       The House recedes with an amendment that would direct the 
     Secretary of Defense to transfer $186.0 million from the 
     unobligated balances of the National Defense Stockpile 
     Transaction Fund to the Department of Defense Medicare-
     Eligible Retiree Health Care Fund.

                    Subtitle B--Studies and Reports

     Department of Defense task force on the future of military 
         health care (sec. 711)
       The House bill contained a provision (sec. 711) that would 
     require the Secretary of Defense to establish a task force to 
     conduct a comprehensive assessment of the future of military 
     health care. The task force would be required to develop 
     recommendations on actions that the Department of Defense 
     would have to take to improve and sustain the military health 
     care system, and to develop a plan based on those 
     recommendations.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     required expertise for membership on the task force to 
     include health care information technology and women's 
     health. The amendment would also add the senior medical 
     advisor to the Chairman of the Joint Chiefs of Staff and the 
     Director of Defense Procurement and Acquisition Policy as 
     members. The amendment would require the task force to 
     examine the costs and benefits of a universal enrollment 
     system for all TRICARE users. The amendment would eliminate 
     the requirement for the task force to develop a plan based on 
     its recommendations, and require submission of an interim 
     report to Congress by May 31, 2007.
     Study relating to chiropractic health care services (sec. 
         712)
       The House bill contained a provision (sec. 712) that would 
     require the Secretary of Defense to study the cost, 
     feasibility, and potential benefit of providing chiropractic 
     care services for active-duty members and their families, 
     members of the Selected Reserve and their families, and 
     retirees and their families. The provision would also require 
     the Secretary to develop a plan for providing chiropractic 
     services to all members of the uniformed services, as 
     required by the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (Public Law 106-398).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to conduct a study on providing chiropractic care 
     to all members and former members of the Armed Forces and 
     their families, and to submit the study to Congress by March 
     31, 2008.
       The conferees expect the study required in this section to 
     consider any relevant findings of the Navy medical research 
     chiropractic treatment outcomes study required by the Senate 
     Report accompanying S. 2766 (S. Rept. 109-254) of the 
     National Defense Authorization Act for Fiscal Year 2007.
     Comptroller General audits of Department of Defense health 
         care costs and cost-saving measures (sec. 713)
       The House bill contained a provision (sec. 713) that would 
     require the Comptroller General to conduct a study, in 
     conjunction with the Congressional Budget Office, of the 
     projected savings to the Defense Health Program included in 
     the President's Budget Request for fiscal year 2007. The 
     study would include an evaluation of the rationale for 
     calculations made by the Department of Defense for health 
     care costs borne by beneficiaries in 1995 and 2005, as well 
     as the rationale for savings projections, a review of the 
     annual rates of medical inflation in the Department and other 
     health care programs, and an assessment of the rationale for 
     proposed beneficiary cost share increases.
       The Senate amendment contained a similar provision (sec. 
     744) that would require an audit of the costs of 
     administration of the TRICARE program and the program for 
     members of the Selected Reserve known as TRICARE Reserve 
     Select.
       The House recedes with an amendment that would require that 
     the audit be conducted in cooperation with the Director of 
     the Congressional Budget Office, and that the Comptroller 
     General's findings be provided to the congressional defense 
     committees not later than June 1, 2007.
     Transfer of custody of the Air Force Health Study assets to 
         Medical Follow-up Agency (sec. 714)
       The House bill contained a provision (sec. 714) that would 
     require the Secretary of the Air Force to notify and contact 
     participants of the Air Force Health Study (commonly known as 
     the Ranch Hand Study) to obtain written consent to transfer 
     the individual's data and biological specimens to the 
     Institute of Medicine of the National Academy of Sciences for 
     maintenance and further study.
       The Senate amendment contained a similar provision (sec 
     762).
       The Senate recedes.
     Study on allowing dependents of activated members of reserve 
         components to retain civilian health care coverage (sec. 
         715)
       The House bill contained a provision (sec. 715) that would 
     require the Secretary of Defense to conduct a study on the 
     feasibility of allowing family members of reservists who are 
     mobilized to continue health care coverage under a civilian 
     health care program.
       The Senate amendment contained no similar provision.

[[Page 21106]]

       The Senate recedes with an amendment that would limit the 
     study to members of the reserve components mobilized in 
     support of a contingency operation.
     Study of health effects of exposure to depleted uranium (sec. 
         716)
       The House bill contained a provision (sec. 716) that would 
     require the Secretary of Defense, in consultation with the 
     Secretary of Veterans Affairs and the Secretary of the 
     Department of Health and Human Services, to conduct a study 
     on the health effects of exposure to depleted uranium on 
     exposed soldiers and on the children of exposed soldiers.
       The Senate amendment contained a similar provision (sec. 
     746).
       The House recedes.
     Report and plan on services to military dependent children 
         with autism (sec. 717)
       The Senate amendment contained a provision (sec. 734) that 
     would require the Secretary of Defense to promulgate 
     regulations on requirements for the education, training, and 
     supervision of individuals providing special education 
     services to certain military dependent children that are in 
     addition to any other requirements applicable to Board 
     Certified Behavior Analysts or Board Certified Associate 
     Behavior Analysts. The provision would also require the 
     Secretary to establish metrics to identify and measure the 
     availability and distribution of individuals of various 
     expertise in Applied Behavioral Analysis.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to develop a plan to provide services to military 
     dependent children with autism, pursuant to the authority for 
     extended health care services in section 1079(d) and (e) of 
     title 10, United States Code, and to provide that plan within 
     30 days of its completion to the Committees on Armed Services 
     of the Senate and the House of Representatives. The amendment 
     would require that procedures be established to ensure that 
     such services are in addition to other publicly provided 
     services for military dependent children with autism.
     Comptroller General study on Department of Defense pharmacy 
         benefits program (sec. 718)
       The Senate amendment contained a provision (sec. 743) that 
     would require a study by the Comptroller General on the 
     Department of Defense pharmacy benefits program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     requirement that the Pharmacy and Therapeutics Committee and 
     Beneficiary Advisory Panel, required by section 1074g of 
     title 10, United States Code, review the results of the 
     report and make certain recommendations to the Secretary of 
     Defense.
     Review of Department of Defense medical quality improvement 
         program (sec. 719)
       The Senate amendment contained a provision (sec. 745) that 
     would require the Secretary of Defense to contract for an 
     independent review of the Department's medical quality 
     improvement program, and to compare the Department's program 
     to other public and private health care systems and 
     organizations.
       The House bill contained no similar provision.
       The House recedes with an amendment that would include an 
     additional requirement for the Secretary to report to 
     Congress within 180 days of enactment of this Act on actions 
     taken in response to the recommendations of the July 2001 
     report of the Department of Defense Healthcare Quality 
     Initiatives Review Panel.
     Report on distribution of hemostatic agents for use in the 
         field (sec. 720)
       The Senate amendment contained a provision (sec. 1414) that 
     would authorize $15.0 million in Operation and Maintenance, 
     Army and $5.0 million in Operation and Maintenance, Marine 
     Corps for hemostatic agents, including blood-clotting 
     bandages. The provision would also express a sense of 
     Congress that every member of the Armed Forces deployed in a 
     combat zone should carry life saving resources. The provision 
     would also require the Secretary of Defense to submit a 
     report regarding the distribution of hemostatic agents to 
     members of the Armed Forces serving in Iraq and Afghanistan.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     required report, delete the authorization for funding, and 
     delete the sense of Congress.
       The conference outcome is reflected in the tables of this 
     report in Operation and Maintenance, Army and Operation and 
     Maintenance, Marine Corps.
     Longitudinal study on traumatic brain injury incurred by 
         members of the Armed Forces in Operation Iraqi Freedom 
         and Operation Enduring Freedom (sec. 721)
       The Senate amendment contained a provision (sec. 686) that 
     would require the Secretary of Defense, in consultation with 
     the Secretary of Veterans Affairs, to conduct a longitudinal 
     study on the effects of traumatic brain injury incurred by 
     members of the Armed Forces serving in Operation Iraqi 
     Freedom and Operation Enduring Freedom. The study would 
     address the long-term physical and mental affects of such 
     injuries, the resulting health care needs, and availability 
     of long-term care services.
       The House bill contained no similar provision.
       The House recedes with an amendment that would include in 
     the study an analysis of the effects on families of those who 
     have suffered traumatic brain injury.

           Subtitle C--Planning, Programming, and Management

     Standardization of claims processing under TRICARE program 
         and Medicare program (sec. 731)
       The Senate amendment contained a provision (sec. 725) that 
     would require that by October 1, 2007, certain TRICARE claims 
     processing requirements be identical to Medicare claims 
     processing requirements. The provision would also authorize 
     modification to the processes for collection of health care 
     payments from third parties, and require an annual report to 
     Congress justifying any instance in which the Department of 
     Defense continues to have a unique claims processing 
     requirement.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     identical claims processing requirements go into effect with 
     the beginning of the next option period for managed care 
     support contracts. The amendment would also require a report 
     to Congress on the policies and directives concerning 
     collection of health care payments owed from third parties, 
     an estimate of the outstanding amounts, and a plan of action 
     to streamline and accelerate the collections or recoupments 
     of those funds.
     Requirements for support of military treatment facilities by 
         civilian contractors under TRICARE (sec. 732)
       The Senate amendment contained a provision (sec. 726) that 
     would require each TRICARE Regional Director to develop an 
     annual comprehensive plan for support of military treatment 
     facilities in the region provided by contracted civilian 
     health care and administrative personnel. The provision would 
     require approval by the TRICARE Regional Director of each 
     contract within the region, and require consistent standards 
     of quality within the region. The provision would also 
     require removal of financial disincentives for military 
     treatment facilities and civilian contractors to initiate and 
     sustain cost-effective health care staffing support 
     agreements.
       The House bill contained no similar provision.
       The House recedes with an amendment that would remove the 
     requirement that the Regional Director approve each support 
     contract within the region, and require the Secretary of 
     Defense to establish additional quality and performance 
     standards for health staffing support contractors.
     Standards and tracking of access to health care services for 
         wounded, injured, or ill servicemembers returning to the 
         United States from a combat zone (sec. 733)
       The Senate amendment contained a provision (sec. 727) that 
     would require the Secretary of Defense to prescribe uniform 
     standards for access to health care services for wounded or 
     injured servicemembers. The provision would require that 
     needed health care services be met through whatever means 
     possible, including through referral to civilian health care 
     providers if necessary, and that the Secretary establish 
     mechanisms for tracking the performance of the military 
     health care system in meeting those health care access 
     standards.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to report to Congress on uniform 
     standards for the access of wounded, injured, or ill members 
     of the armed forces to health care services in the United 
     States following return from a combat zone. The House 
     amendment would also clarify that the tracking system 
     required by this section be a uniform tracking mechanism.
       The conferees continue to learn of instances in which 
     returning members of the armed forces have been delayed in 
     receiving needed health, mental health, and rehabilitative 
     services, both in military hospitals and in medical holdover 
     status. The conferees believe that a wounded, injured, or ill 
     soldier, airman, sailor, or marine deserve the highest 
     priority for care. Should sufficient resources in the 
     military hospital system not be available, civilian resources 
     must be made available without delay.
     Disease and chronic care management (sec. 734)
       The Senate amendment contained a provision (sec. 728) that 
     would require the Secretary of Defense to establish and 
     implement throughout the military health care system a 
     comprehensive program on disease and chronic care management. 
     The program would include the most common chronic diseases 
     experienced by military beneficiaries and their families, and 
     would meet nationally recognized accreditation standards. The 
     Secretary would be required to ensure continuous and adequate 
     funding of the disease and chronic care management program, 
     and

[[Page 21107]]

     eliminate, to the extent practicable, any financial 
     disincentives to sustained investment by military hospitals 
     and health care services contractors in disease management.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to design and develop a fully integrated program on 
     disease and chronic care management, and to require the 
     Secretary, in coordination with the military departments, to 
     develop an implementation plan by February 1, 2008.
     Additional elements of assessment of Department of Defense 
         task force on mental health relating to mental health of 
         members who were deployed in Operation Iraqi Freedom and 
         Operation Enduring Freedom (sec. 735)
       The Senate amendment contained a provision (sec. 684) that 
     would add to the mandate of the Department of Defense Task 
     Force on Mental Health a requirement to assess the mental 
     health needs of members of the National Guard and Reserve who 
     are deployed in support of Operation Iraqi Freedom and 
     Operation Enduring Freedom. The assessment would include 
     identification of mental health conditions and disorders, 
     including Post Traumatic Stress Disorder, and recommendations 
     on improving mental health services to members of the 
     National Guard and Reserve who undergo multiple deployments. 
     The Senate amendment also contained a provision (sec. 730) 
     that would require the Secretary of Defense to expand the 
     Mental Health Self-Assessment Program to ensure the 
     continuous availability of the program to members and former 
     members of the Armed Forces, as well as to the dependent 
     children of members who have been deployed or mobilized.
       The House bill contained no similar provisions.
       The House recedes with an amendment that would merge these 
     provisions under this section. The amendment would require 
     the Task Force on Mental Health to undertake an assessment of 
     the mental health needs of all members, active and reserve, 
     who were deployed in support of Operation Iraqi Freedom and 
     Operation Enduring Freedom. The amendment would also require 
     an assessment by the Task Force of the current Mental Health 
     Self-Assessment Program within the Department of Defense.
       The conferees urge the Task Force members to take 
     cognizance of the existing requirements in section 723 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163) for examination of the long-term follow-
     up and access to care for mental health needs of members of 
     the Reserve components as they discharge their 
     responsibilities under that section to examine matters 
     relating to the mental health of members of the Armed Forces.
     Additional authorized option periods for extension of current 
         contracts under TRICARE (sec. 736)
       The Senate amendment contained a provision (sec. 731) that 
     would authorize the Secretary of Defense to extend TRICARE 
     managed care support contracts for up to 2 years. The 
     provision would authorize the Secretary to act only after 
     review by Congress of the minimum performance standards 
     required in order to be eligible for an extension, including 
     cost and beneficiary satisfaction, as well as the 
     justification for any extension. The provision would also 
     require the Secretary to report to Congress on future 
     contracting mechanisms under consideration for TRICARE 
     support, including an assessment of a contract for a single 
     term of 5 years, with a single optional period of extension 
     of an additional 5 years, if performance by the contractor is 
     rated ``excellent.''
       The House bill contained no similar provision.
       The House recedes with an amendment that would require a 
     cost-benefit analysis to be conducted as part of the 
     justification for such extension.
     Military vaccination matters (sec. 737)
       The Senate amendment contained a provision (sec. 732) that 
     would add a requirement to the Comptroller General study on 
     Department of Defense Vaccine Healthcare Centers required by 
     the National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163) to examine the feasibility of placing 
     the centers under the direct control of the Under Secretary 
     of Defense for Personnel and Readiness. The provision would 
     also require the Secretary of Defense to maintain a center of 
     excellence on medical needs resulting from mandatory military 
     vaccinations, and would limit the ability of the Secretary of 
     Defense to downsize or otherwise restructure the Vaccine 
     Healthcare Centers.
       The House bill contained no similar provision.
       The House recedes with an amendment that would prohibit the 
     Secretary of Defense from downsizing or restructuring the 
     Vaccine Healthcare Centers during fiscal year 2007, and 
     require that funding for the centers be provided by each 
     military department.
     Enhanced mental health screening services for members of the 
         Armed Forces (sec. 738)
       The Senate amendment contained a provision (sec. 733) that 
     would establish new requirements for each predeployment 
     mental health assessment of a member of the Armed Forces 
     relating to the presence and treatment of a mental health 
     condition or disorder, including any use of psychotropic 
     medications. The provision would also prescribe procedures 
     for referral for follow-up evaluation if needed, and would 
     require the Secretary of Defense to establish minimum mental 
     health standards for deployment to a combat operation or 
     contingency operation.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require 
     additional elements for predeployment and postdeployment 
     medical examinations, including an assessment of traumatic 
     brain injury. The amendment would establish criteria for 
     referral for follow-up care, and would require the Secretary 
     to develop guidelines concerning the deployability and 
     treatment of members of the Armed Forces diagnosed with a 
     severe mental illness or post traumatic stress disorder. The 
     amendment would expand requirements for the quality assurance 
     program for medical tracking for members deployed overseas to 
     include the following new elements:
       (1) the types and training of healthcare providers 
     conducting postdeployment health assessments;
       (2) the effectiveness of tracking mechanisms in ensuring 
     that the members who receive referrals for further evaluation 
     for mental health care receive those services; and
       (3) programs to monitor the mental health of members who 
     have a mental health condition following deployment.

                       Subtitle D--Other Matters

     Pilot projects on early diagnosis and treatment of post 
         traumatic stress disorder and other mental health 
         conditions (sec. 741)
       The Senate amendment contained a provision (sec. 741) that 
     would require the Secretary of Defense to conduct a minimum 
     of three pilot projects during fiscal year 2007 to evaluate 
     the efficacy of approaches to improving the capability of the 
     military and civilian health care systems to provide early 
     diagnosis and treatment of post traumatic stress disorder and 
     other mental health conditions.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     requirements for the three pilots, as follows:
       (1) one of the pilot projects would be designed to evaluate 
     effective diagnostic and treatment approaches by primary care 
     providers in the military health care system;
       (2) one of the projects would be focused on members of the 
     National Guard or reserves located more than 40 miles from a 
     military medical facility; and
       (3) one of the projects would be designed to provide 
     outreach to family members on post traumatic stress disorder 
     and other mental health conditions.
     Requirement to certify and report on conversion of military 
         medical and dental positions to civilian medical and 
         dental positions (sec. 742)
       The Senate amendment contained a provision (sec. 761) that 
     would extend for fiscal year 2007 and future years a 
     requirement in section 744 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163) 
     for the Secretary of Defense to certify that conversion of 
     military medical positions to civilian or contractor 
     positions does not increase the cost, or erode access to or 
     the quality of military health care.
       The House bill contained no similar provision.
       The House recedes with an amendment that would expand the 
     requirements for the report to Congress to accompany the 
     certification. The additional requirements include:
       (1) the number and grade of positions planned for 
     conversion;
       (2) an analysis by affected area of the impact of the 
     conversion on the direct care and purchased care systems;
       (3) the extent to which planned conversions would affect 
     recruiting and retention of military medical and dental 
     personnel;
       (4) a comparison of the full costs for the military medical 
     and dental positions planned for conversion with the full 
     costs for civilian positions;
       (5) documentation that the converted positions are in 
     excess of military medical and dental readiness requirements; 
     and
       (6) identification of each position scheduled to be 
     converted in the subsequent fiscal year.
       The amendment would also include several additional 
     requirements with respect to the conversion of medical and 
     dental provisions in fiscal years 2006 through 2008.
     Three-year extension of joint incentives program on sharing 
         of health care resources by the Department of Defense and 
         Department of Veterans Affairs (sec. 743)
       The Senate amendment contained a provision (sec. 923) that 
     would extend the authorization for the Department of Defense 
     and Department of Veterans Affairs joint incentives program 
     for the sharing of health care resources until September 30, 
     2010.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

[[Page 21108]]


     Training curricula for family caregivers on care and 
         assistance for members and former members of the Armed 
         Forces with traumatic brain injury (sec. 744)
       The Senate amendment contained a provision (sec. 687) that 
     would require the Secretary of Defense to establish, in 
     consultation with the Secretary of Veterans Affairs, a 
     Traumatic Brain Injury Family Caregiver Panel. The purpose of 
     the panel would be to develop training curricula to be used 
     in training family members who provide care to members and 
     former members of the Armed Forces with traumatic brain 
     injury incurred in Operation Iraqi Freedom and Operation 
     Enduring Freedom.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     the panel also include family members of members of the Armed 
     Forces with traumatic brain injury.
       The conferees intend the Department of Defense to utilize 
     for this purpose up to $1.0 million of the funds allocated 
     for its participation in the Department of Defense and 
     Department of Veterans Joint Incentives Program, authorized 
     elsewhere in this report.
     Recognition of Representative Lane Evans upon his retirement 
         from the House of Representatives (sec. 745)
       The conferees agree to include a provision that would 
     recognize Representative Lane Evans (D-IL) on the occasion of 
     his retirement from the House of Representatives.

                   Legislative Provisions Not Adopted

     Services of mental health counselors
       The House bill contained a provision (sec. 705) that would 
     allow mental health counselors to be reimbursed for services 
     provided to TRICARE beneficiaries without prior physician 
     referral or supervision. The provision would also allow 
     mental health counselors to enter into personal services 
     contracts with the Department of Defense, and would require 
     that such counselors meet licensure or certification 
     requirements for a health care professional as required by 
     law.
       The Senate amendment contained no similar provision.
       The House recedes.
     Requirement to reimburse certain travel expenses of certain 
         beneficiaries covered by TRICARE for Life
       The House bill contained a provision (sec. 707) that would 
     require the Secretary of Defense to reimburse expenses 
     incurred by a TRICARE for Life beneficiary for travel to a 
     military treatment facility for up to three follow-up medical 
     appointments if adequate treatment cannot be obtained within 
     100 miles of the residence of the beneficiary.
       The Senate amendment contained no similar provision.
       The House recedes.
     Inflation adjustment of differential payments to children's 
         hospitals participating in TRICARE program
       The House bill contained a provision (sec. 708) that would 
     require the Secretary of Defense to establish an annual 
     inflationary adjustment for the TRICARE children's hospital 
     differential payment rate beginning in fiscal year 2007.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees are disappointed that the Comptroller General 
     study required by section 734 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163) 
     has not been completed. The conferees intend that the study 
     required by that section will inform future legislative and 
     policy changes regarding appropriate adjustment of 
     differential payments to children's hospitals participating 
     in the TRICARE program.
     Costs of incentive payments to employees for TRICARE 
         enrollment made unallowable for contractors
       The House bill contained a provision (sec. 721) that would 
     establish as unallowable the contract costs that result when 
     Department of Defense contractors provide a financial 
     incentive for a TRICARE-eligible employee to use TRICARE in 
     lieu of their employer-provided health care coverage.
       The Senate amendment contained no similar provision.
       The House recedes.
     Treatment of TRICARE retail pharmacy network under Federal 
         procurement of pharmaceuticals
       The Senate amendment contained a provision (sec. 721) that 
     would clarify that the TRICARE retail pharmacy network is 
     covered by the Federal pricing limits applicable to covered 
     drugs under section 8126 of title 38, United States Code.
       The House bill contained no similar amendment.
       The Senate recedes.
       The conferees concluded that there is no need for 
     additional legislation at this time because prescriptions 
     dispensed by the Department of Defense Retail Pharmacy 
     Program qualify for discounted drug prices under section 
     8126.
     Enrollment in the TRICARE program
       The Senate amendment contained a provision (sec. 723) that 
     would require the Secretary of Defense to establish a system 
     of enrollment for all beneficiaries who obtain health care 
     services from the military health care system. The provision 
     would authorize the collection of a one-time administrative 
     fee as a condition for certain beneficiaries to receive 
     services under the Standard option of TRICARE. The provision 
     would also require the Secretary to conduct outreach to all 
     beneficiaries and provide health risk assessments.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the authority for a health care 
     enrollment system for military health care users is codified 
     in section 1099, title 10, United States Code. The conferees 
     recognize that beneficiary enrollment is a common feature of 
     public and private health insurance and entitlement programs 
     and may be necessary to ensure the most efficient delivery of 
     health care services. Therefore, the conferees direct the 
     Secretary to submit a report to the Committees on Armed 
     Services of the Senate and the House of Representatives by 
     February 1, 2007 on the advantages and disadvantages of an 
     enrollment requirement for the TRICARE Standard option. The 
     conferees further direct the Secretary to submit the required 
     report for consideration by the Department of Defense Task 
     Force on the Future of Military Health Care, which is 
     authorized elsewhere in this report. The conferees note that 
     an examination by the Task Force of the requirement for 
     universal enrollment is also required elsewhere in this 
     report.
     Incentive payments for the provision of services under the 
         TRICARE program in medically underserved areas
       The Senate amendment contained a provision (sec. 724) that 
     would require the Secretary of Defense to provide incentive 
     payments for physicians who provide services to TRICARE 
     eligible beneficiaries in medically underserved areas 
     designated by the Secretary of Health and Human Services as 
     primary care or specialist care scarcity locations.
       The House bill contained no similar provision.
       The Senate recedes.
     Post deployment health assessments for members of the Armed 
         Forces returning from deployment in support of a 
         contingency operation
       The Senate amendment contained a provision (sec. 729) that 
     would require that a health assessment, including traumatic 
     brain injury, be conducted on each member of the Armed Forces 
     returning from deployment by a qualified health care 
     provider. The provision would also require the Secretary of 
     Defense to establish criteria for assessments of mental 
     health and traumatic brain injury, including criteria for 
     referrals for further evaluation.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference agreement reflects the inclusion of certain 
     aspects of this provision in the requirement for enhanced 
     mental health screening and services for members of the Armed 
     Forces, authorized elsewhere in this report.
     TRICARE pharmacy program cost-share requirements
       The House bill contained a provision (sec. 731) that would 
     limit the amount of beneficiary cost sharing for generic and 
     formulary agents in the TRICARE national mail-order pharmacy 
     program to no more than the cost sharing for those agents in 
     military hospitals and clinics. The provision would also 
     establish cost-sharing requirements for the TRICARE retail 
     pharmacy program as follows: $6.00 for generic agents; $16.00 
     for formulary agents; and $22.00 for nonformulary agents.
       The Senate amendment contained a provision (sec. 702) that 
     would require beneficiaries to use the TRICARE national mail-
     order program for refill of most long-term maintenance 
     medications, unless waived by the Secretary of Defense based 
     on clinical need, and eliminate cost sharing for most drugs 
     obtained from the TRICARE national mail-order program.
       The conference agreement does not include these provisions.
       The conferees expect the Assistant Secretary of Defense 
     (Health Affairs) to manage the TRICARE pharmacy benefit in 
     accordance with existing authorities in section 1074g of 
     title 10, United States Code, in a manner using a full menu 
     of clinical quality and utilization management tools to lower 
     drug costs and improve quality, including the TRICARE 
     national mail-order program, consistent with state-of-the-art 
     pharmacy benefit management practices.
       The conferees expect that the Department of Defense will 
     proceed, under current authority, to eliminate co-payments 
     for generic drugs dispensed through the TRICARE national 
     mail-order program, as a minimum; and, in addition, expect 
     the Assistant Secretary to move toward providing a broad 
     range of incentives to increase the use of the TRICARE 
     national mail-order program. In developing measures to 
     implement pharmacy incentives, the Assistant Secretary shall 
     consult broadly and fully with constituent and beneficiary 
     groups and other interested parties.

[[Page 21109]]


     Annual reports on certain medical malpractice cases
       The Senate amendment contained a provision (sec. 742) that 
     would require each Secretary of a military department to 
     report annually to the Secretary of Defense on certain cases 
     involving allegations of medical malpractice for military 
     beneficiaries. The provision would also require the Secretary 
     of Defense to provide annual reports to the congressional 
     defense committees.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that a report and an independent review 
     of medical quality improvement in the military health care 
     system is required elsewhere in this report.

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

                     Legislative Provisions Adopted

 Subtitle A--Provisions Relating to Major Defense Acquisition Programs

     Requirements management certification training program (sec. 
         801)
       The House bill contained a provision (sec. 801) that would 
     require the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics, in consultation with the Defense 
     Acquisition University, to develop a training program to 
     certify civilian and military personnel with responsibility 
     for developing requirements for major defense acquisition 
     programs.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Under Secretary to establish the competency requirements for 
     personnel undergoing requirements management training, and 
     require that all personnel with responsibility for developing 
     such requirements receive certification training by September 
     30, 2008.
       The conferees believe that the training program established 
     in accordance with this provision should address:
       (1) the interrelationship between the requirements, budget, 
     and acquisition processes;
       (2) the importance of developing requirements that 
     facilitate joint operations;
       (3) the need to ensure that requirements are developed 
     early in a program and the adverse effect of introducing new 
     requirements after the commencement of system development and 
     demonstration;
       (4) the linkage between requirements and capability 
     shortfalls identified by combatant commanders;
       (5) the need for sound analysis of alternatives, realistic 
     technical assessments based on technology readiness levels, 
     and consultation with production engineers on the cost, 
     schedule, and technical feasibility of requirements;
       (6) the need for engineering feasibility assessments that 
     weigh the technology readiness, integration, cost, and 
     schedule impacts of proposed changes to requirements;
       (7) the importance of developing requirements that are 
     technologically mature, feasible, and achievable; and
       (8) the importance of stable requirements to provide the 
     baseline for successful program execution.
     Additional requirements relating to technical data rights 
         (sec. 802)
       The House bill contained a provision (sec. 802) that would 
     require the acquisition of full data rights necessary to 
     support competition for contracts for sustainment of each 
     major weapon system that is developed with federal or private 
     funds. The provision would also require that any contract for 
     a major system include options for acquiring, at any point 
     during the life cycle of the system, major elements of 
     technical data not acquired at the time of the initial 
     contract award.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Under Secretary of Defense for Acquisition, Technology, and 
     Logistics to require program managers to assess long-term 
     technical data needs and establish corresponding acquisition 
     strategies to ensure availability of technical data rights 
     for major weapon system life cycle sustainment. The amendment 
     would also modify title 10 of the United States Code to 
     distinguish between commercial items and major weapon 
     systems, subsystems, and components of major weapon systems 
     (regardless of whether they may be characterized as 
     commercial or non-commercial). In the case of a challenge 
     made to a claim that the latter group of systems or 
     components was developed exclusively at private expense, the 
     burden of proof would be on the contractor or subcontractor.
     Study and report on revisions to Selected Acquisition Report 
         requirements (sec. 803)
       The House bill contained a provision (sec. 803) that would 
     require the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics, in coordination with the service 
     acquisition executives of each military department, to 
     conduct a study on revisions to requirements related to 
     Selected Acquisition Reports, as set forth in section 2432 of 
     title 10, United States Code.
       The Senate provision contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Biannual updates on implementation of acquisition reform in 
         the Department of Defense (sec. 804)
       The House bill contained a provision (sec. 804) that would 
     require the Secretary of Defense to submit quarterly reports 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives on the implementation of plans to 
     reform the defense acquisition system.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would change the 
     reporting requirement to a biannual submission and make other 
     clarifying changes.
     Additional certification requirements for major defense 
         acquisition programs before proceeding to Milestone B 
         (sec. 805)
       The House bill contained a provision (sec. 806) that would 
     require certification that market research has been conducted 
     prior to technology development to reduce duplication of 
     existing technology and products.
       The Senate amendment contained a similar provision (sec. 
     801). The provision would require a certification that a 
     program meets validated requirements consistent with the 
     National Military Strategy and contains estimates and funding 
     to execute the product development and production plan under 
     the program.
       The Senate recedes with a clarifying amendment that would 
     amend section 2366a of title 10, United States Code, to 
     require the Secretary of Defense to include additional 
     certifications before a major defense acquisition program 
     receives Milestone B approval or Key Decision Point B 
     approval in the case of a space program.
     Original baseline estimate for major defense acquisition 
         programs (sec. 806)
       The Senate amendment contained a provision (sec. 803) that 
     would clarify the definition of the term ``Original Baseline 
     Estimate,'' and provide for periodic reporting of program 
     acquisition unit costs and procurement unit costs above the 
     significant cost growth thresholds identified in section 2433 
     of title 10, United States Code.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     definition of Original Baseline Estimate to mean the baseline 
     established before the program enters into system development 
     and demonstration.
     Lead system integrators (sec. 807)
       The Senate amendment contained a provision (sec. 842) that 
     would: (1) limit the participation of lead systems 
     integrators (LSI) in the development or construction of any 
     individual system or element of a system of systems; (2) 
     direct the Secretary of Defense to update regulations on 
     LSIs; and (3) direct the Secretary to include a specification 
     of various types of contracts and fee structures, including 
     award and incentive fees, that are appropriate for use by 
     LSIs.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     participation of LSIs in the development or construction of 
     any individual system or element of a system of systems.

             Subtitle B--Acquisition Policy and Management

     Time-certain development for Department of Defense 
         information technology business systems (sec. 811)
       The House bill contained a provision (sec. 813) that would 
     require that a Department of Defense information technology 
     business system be fielded within 5 years of the system 
     entering the technology development phase of Milestone A 
     approval. If such a program did not achieve initial operating 
     capability within 5 years, the Department would be prohibited 
     from obligating or expending any further funds on that 
     program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would maintain 
     the requirement of the Department to field information 
     technology programs within 5 years of Milestone A approval. 
     Failure to achieve initial operating capability within 5 
     years of Milestone A approval would result in the Department 
     being subject to reporting requirements contained in section 
     816 of this Act.
     Pilot program on time-certain development in acquisition of 
         major weapon systems (sec. 812)
       The Senate amendment contained a provision (sec. 811) that 
     would authorize the Secretary of Defense to carry out a pilot 
     program on the use of time-certain development in the 
     acquisition of major weapon systems.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     place limitations on the number of major weapon systems 
     included in the pilot program.
     Establishment of Panel on Contracting Integrity (sec. 813)
       The House bill contained a provision (sec. 814) that would 
     establish a Panel on Contracting Integrity to review progress 
     made by the Department of Defense to eliminate

[[Page 21110]]

     areas of vulnerability of the defense contracting system to 
     waste, fraud, and abuse. The panel would be chaired by the 
     Deputy Secretary of Defense. The panel would review the 
     Government Accountability Office report relating to 
     contracting vulnerabilities to waste, fraud, and abuse; and 
     make recommendations on any changes to law, regulations, and 
     policy determined necessary to eliminate such areas of 
     vulnerability.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would: (1) assign 
     a representative of the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics as the chair of the 
     panel; (2) provide the Department with increased flexibility 
     in determining the membership of the panel; (3) require 
     submission of the first annual report to the congressional 
     defense committees by December 31, 2007; and (4) terminate 
     the panel on December 31, 2009.
       The conferees agree that the panel's initial review should 
     include an examination of the Department's administrative and 
     disciplinary procedures for cases involving lapses in 
     contracting integrity and include recommendations on any 
     changes to such procedures the panel determines appropriate 
     in the first annual report.
     Linking of award and incentive fees to acquisition outcomes 
         (sec. 814)
       The Senate amendment contained a provision (sec. 843) that 
     would require the Secretary of Defense to issue detailed 
     implementation guidance, including definitions for 
     performance outcomes, for appropriate use of award and 
     incentive fee contracts. The provision would require 
     performance measures to evaluate the effectiveness of award 
     and incentive fees; mechanisms for sharing successful 
     acquisition strategies; and an independent evaluation of the 
     impact of award fee payment decisions on contractor 
     performance.
       The House bill contained a similar provision (sec. 815).
       The House recedes with an amendment that would require 
     development of standards to identify the appropriate level of 
     decision-making official for approval of new award and 
     incentive fee contracts and to ensure consistent application 
     of guidance and definitions across the military departments 
     and defense agencies.
     Report on defense instruction relating to contractor 
         personnel authorized to accompany Armed Forces (sec. 815)
       The House bill contained a provision (sec. 816) that would 
     require: (1) a Department of Defense Inspector General report 
     on overcharges discovered under Department contracts for work 
     performed in Iraq and Afghanistan; (2) assignment of 
     sufficient contracting officers to oversee and monitor 
     Department contracts for work to be performed in Iraq and 
     Afghanistan; and (3) implementation of a policy for 
     conducting comprehensive background checks on foreign 
     nationals hired by Department contractors and subcontractors 
     operating outside the United States. The provision would also 
     prohibit Department contractors and subcontractors operating 
     outside of the United States from hiring personnel with 
     violent felony convictions or who have committed acts 
     determined to be inconsistent with the policy of the 
     Department on human rights. The provision would further 
     require the Secretary of Defense to report on implementation 
     of Department of Defense Instruction Number 2030.14 entitled 
     ``Contractor Personnel Authorized to Accompany the United 
     States Armed Forces,'' and application of the instruction to 
     all new contracts, task orders, or contract extensions.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to submit to Congress a report on the status of 
     implementation of Department of Defense Instruction Number 
     2030.14 entitled ``Contractor Personnel Authorized to 
     Accompany the United States Armed Forces.''
     Major automated information system program (sec. 816)
       The Senate amendment contained a provision (sec. 804) that 
     would require that, as part of the annual budget 
     justification materials, the Department of Defense provide to 
     the congressional defense committees a report on major 
     automated information systems (MAIS) programs. The report 
     would include the estimate of developmental costs and total 
     life-cycle costs (original and current), a schedule of major 
     events (original and current), and a brief summary of key 
     performance criteria. The provision would further require the 
     Department to promptly notify the congressional defense 
     committees when a program exceeds established cost, schedule, 
     or performance criteria.
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide an 
     additional criterion for requiring a report when a MAIS fails 
     to achieve initial operating capability within 5 years of 
     Milestone A approval.
     Internal controls for procurements on behalf of the 
         Department of Defense by certain non-defense agencies 
         (sec. 817)
       The Senate amendment contained a provision (sec. 806) that 
     would expand section 811 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163) 
     to require the Department of Defense Inspector General (IG), 
     in consultation with the IG of the National Institutes of 
     Health and the IG of the Department of Veterans Affairs, to 
     determine whether the policies, procedures, and internal 
     controls of the two respective agencies for purchases on 
     behalf of the Department of Defense are adequate to ensure 
     compliance with defense procurement requirements.
       The House bill contained no similar provision.
       The House recedes.
     Determination of contract type for development programs (sec. 
         818)
       The Senate amendment contained a provision (sec. 807) that 
     would require the Secretary of Defense to modify Department 
     of Defense regulations regarding a preference for the use of 
     fixed-price contracts in development programs.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to modify Department regulations regarding the 
     determination of contract type in development programs.
       The conferees believe that the Department requires 
     additional tools to address the continuing problem of cost 
     and schedule growth in the Department's major acquisition 
     programs. Congress enacted section 807 of the National 
     Defense Authorization Act for Fiscal Year 1989 (Public Law 
     100-456) to prohibit the use of fixed-price development 
     contracts because of the Department's aggressive use of 
     fixed-price contracts, regardless of the level of program 
     risk associated with the program, resulted in cost and 
     schedule overruns.
       The conferees believe that program risk should be reduced 
     to the degree that the use of a fixed-price development 
     contract for a major acquisition program may be appropriate. 
     The conferees agree to repeal section 807 and would require 
     the Secretary to modify Department regulations to require the 
     Milestone Decision Authority for a major defense acquisition 
     program to document the basis for the contract type selected 
     at Milestone B approval (or Key Decision Point B approval in 
     the case of a space program) that is consistent with the 
     level of program risk for the program.
     Three-year extension of requirement for reports on commercial 
         price trend analyses of the Department of Defense (sec. 
         819)
       The Senate amendment contained a provision (sec. 810) that 
     would extend the requirement that the Secretary of Defense 
     submit an annual report on price trend analyses through 2009.
       The House bill contained no similar provision.
       The House recedes.
     Government performance of critical acquisition functions 
         (sec. 820)
       The Senate amendment contained a provision (sec. 812) that 
     would require the head of an agency to ensure that certain 
     positions for each major defense acquisition program and each 
     major automated information system program be performed by a 
     properly qualified full-time Federal military or civilian 
     employee.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to develop a plan of action for the 
     implementation of a Department of Defense goal, within 5 
     years of the date of enactment of this Act, that ensures 
     certain positions for each major defense acquisition program 
     and each major automated information system program be 
     performed by a properly qualified full-time Federal military 
     or civilian employee.

Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

     One-year extension of special temporary contract closeout 
         authority (sec. 831)
       The House bill contained a provision (sec. 821) that would 
     extend by 1 year authority under section 804 of the National 
     Defense Authorization Act for Fiscal Year 2004 (Public Law 
     108-136) to allow the Department of Defense to settle 
     contracts entered into prior to October 1, 1996, under 
     specified conditions.
       The Senate amendment contained an identical provision (sec. 
     872).
       The conference agreement includes this provision.
     Limitation on contracts for the acquisition of certain 
         services (sec. 832)
       The House bill contained a provision (sec. 822) that would 
     prohibit the Secretary of Defense from entering into a 
     contract for covered services if the amount of the contract 
     exceeds 75 percent of the estimated value of the asset 
     required for the provision of services under the contract or 
     exceeds $150.0 million in payments over the life of the 
     contract.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     the Secretary from entering into a service contract to 
     acquire a

[[Page 21111]]

     military flight simulator unless doing so is necessary for 
     national security purposes and a written economic analysis is 
     provided to the congressional defense committees at least 30 
     days in advance. The required economic analysis would include 
     a clear explanation for the need for the contract and an 
     examination of at least two alternatives for fulfilling the 
     contract requirement.
       The conferees are aware that in some cases the military 
     departments are using operations and maintenance funds for 
     service contracts and activities traditionally associated 
     with procurement and military construction. The conferees are 
     concerned that such a contracting methodology reduces 
     oversight, potentially increases life-cycle costs, requires 
     aggressive contract management, and reduces the flexibility 
     of the Department of Defense in allocating funds to meet 
     future defense needs. Furthermore, the use of service 
     contracts for military training may have readiness 
     consequences.
       The conferees are also aware that the Secretary of the Air 
     Force entered into a service contract for the Initial Flight 
     Screening program at Pueblo Memorial Airport, Pueblo, 
     Colorado, without conducting a full economic analysis to 
     determine the best alternative for meeting the Air Force 
     flight screening requirement. Therefore, the conferees direct 
     the Secretary of the Air Force to perform an economic 
     analysis as described in this section and provide the 
     congressional defense committees written certification, not 
     later than 180 days after the date of the enactment of this 
     Act, whether such analysis supports continuation of the 
     service contract.
     Use of Federal supply schedules by State and local 
         governments for goods and services for recovery from 
         natural disasters, terrorism, or nuclear, biological, 
         chemical, or radiological attack (sec. 833)
       The House bill contained a provision (sec. 823) that would 
     provide the Administrator of General Services with the 
     authority to allow State and local governments to use the 
     General Services Administration Federal supply schedules for 
     goods and services to facilitate recovery from natural 
     disasters, terrorist attacks, or attacks involving nuclear, 
     chemical, biological, or radiological weapons.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Waivers to extend task order contracts for advisory and 
         assistance services (sec. 834)
       The House bill contained a provision (sec. 824) that would 
     allow the head of an agency to issue a waiver to extend an 
     Advisory and Assistance Services (AAS) contract up to 10 
     years through 5 one-year options provided that the contract 
     meets a specific set of criteria.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit 
     delegation of the waiver authority to the senior procurement 
     executive of the agency, and modify the reporting 
     requirements. The modified reporting requirement would 
     include separate examinations conducted for the Department of 
     Defense and civilian agencies to review methods used to 
     identify a contract as an AAS contract, the number of such 
     contracts awarded during the preceding 5 years, average 
     expenditures and length of such contracts, and the number of 
     such contracts recompeted and then awarded to the previous 
     performer. The amendment would also require a General 
     Accountability Office report on Federal Government rationale 
     for the use and oversight of AAS contracts.

      Subtitle D--United States Defense Industrial Base Provisions

     Assessment and annual report of United States defense 
         industrial base capabilities and acquisitions of 
         articles, materials, and supplies manufactured outside 
         the United States (sec. 841)
       The Senate amendment contained a provision (sec. 1070A) 
     that would require the Department of Defense to submit a 
     report to Congress on the amount of the acquisitions of 
     articles, materials, and supplies made by the Department in 
     the preceding fiscal year from entities that manufacture 
     articles, materials, or supplies outside of the United 
     States.
       The House bill contained no similar provision.
       The House recedes with an amendment that would amend 
     section 812 of the National Defense Authorization Act for 
     Fiscal Year 2004 (Public Law 108-136) to include the 
     reporting requirements of section 1070A in the Senate 
     amendment.
     Protection of strategic materials critical to national 
         security (sec. 842)
       The House bill contained a provision (sec. 831) that would 
     move statutory requirements for the procurement of specialty 
     metals from domestic sources from the so-called ``Berry 
     amendment,'' currently codified in section 2533a of title 10, 
     United States Code, to a separate section of title 10 and 
     make certain changes to those requirements.
       The Senate amendment contained a provision (sec. 822) that 
     would revise the provisions of the Berry amendment regarding 
     the procurement of specialty metals from domestic sources.
       The Senate recedes with an amendment that would codify the 
     specialty metals requirements in a new section 2533b of title 
     10, United States Code, and modify those requirements. The 
     amendment would also authorize a one-time waiver of the 
     domestic source requirement for specialty metals that were 
     incorporated into items produced, manufactured, or assembled 
     in the United States before the date of the enactment of this 
     Act, under certain conditions.
     Strategic Materials Protection Board (sec. 843)
       The House bill contained a provision (sec. 832) that would 
     establish a Strategic Materials Protection Board to determine 
     the domestic supply of items designated as critical to 
     national security, including adding items to the list of 
     specialty metals protected under the so-called ``Berry 
     amendment,'' recodified elsewhere in this Act as section 
     2533b of title 10, United States Code.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the new board to make recommendations regarding the list of 
     specialty metals covered by the Berry amendment, but not to 
     add or delete items from the list.

                       Subtitle E--Other Matters

     Report on former Department of Defense officials employed by 
         contractors of the Department of Defense (sec. 851)
       The Senate amendment contained a provision (sec. 841) that 
     would require contractors that receive defense contracts in 
     excess of $10.0 million, other than contracts for the 
     procurement of commercial items, to report to the Department 
     of Defense on an annual basis on certain former senior 
     Department officials who receive compensation from the 
     contractor.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     General Accountability Office to report to Congress by 
     December 1, 2007, on the employment of former Department 
     officials by major defense contractors during the most recent 
     calendar year for which data is available. The objective of 
     the report would be to determine the effectiveness of 
     existing statutes and regulations governing the employment of 
     former Department officials by defense contractors, including 
     section 207 of title 18, United States Code and section 27 of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 423). 
     The report would provide information on Department contracts 
     or programs for which former officials personally had program 
     oversight responsibility or decision-making authority when 
     they served in the Department; or Department contracts or 
     programs which are the responsibility of the agency, office, 
     or command with which the official served.
     Report and regulations on excessive pass-through charges 
         (sec. 852)
       The Senate amendment contained a provision (sec. 844) that 
     would require the Secretary of Defense to modify Department 
     of Defense regulations to prohibit excessive pass-through 
     charges on contracts or subcontracts that are entered into, 
     for or on the behalf of the Department.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Comptroller General to submit a report to the congressional 
     defense committees, not later than 180 days after the date of 
     the enactment of this Act, on pass-through charges on 
     contracts or subcontracts (or task or delivery orders) that 
     are entered into, for or on the behalf of the Department. The 
     amendment would also require that the Secretary modify 
     Department regulations, not later than May 1, 2007, to 
     prohibit excessive pass-through charges on contracts or 
     subcontracts that are entered into, for or on the behalf of 
     the Department.
       The conferees agree that an assessment of the impact of 
     pass-through charges is required in order to understand the 
     magnitude of the problem the Department may have with pass-
     through charges. However, the conferees also agree that the 
     Department should not be paying excessive pass-through 
     charges to those contractors or subcontractors that have 
     little or no value added to a particular contract.
       The conferees expect the Secretary to provide an interim 
     report to the congressional defense committees on the 
     progress made towards completing the regulations required by 
     this section.
     Program manager empowerment and accountability (sec. 853)
       The Senate amendment contained provisions (secs. 861-863 
     and 865) that would address the role of program managers in 
     defense acquisition programs.
       The House bill contained no similar provision.
       The House recedes with an amendment that would consolidate 
     these provisions into a single provision and provide greater 
     flexibility to the Secretary of Defense in implementing the 
     new requirements.
       Subsections (a) and (b) would require the Secretary to 
     develop a comprehensive strategy for enhancing the role of 
     Department of Defense program managers in carrying out 
     defense acquisition programs. These subsections track the 
     language of the Senate amendment without change.

[[Page 21112]]

       Subsection (c) would require the Secretary to issue 
     guidance on qualifications, resources, responsibilities, 
     tenure, and accountability of program managers for the 
     program development period before Milestone B approval (or 
     Key Decision Point B approval in the case of a space 
     program).
       Subsection (d) would require the Secretary to revise the 
     Department's guidance on qualifications, resources, 
     responsibilities, tenure, and accountability of program 
     managers for the program execution period from Milestone B 
     approval (or Key Decision Point B approval in the case of a 
     space program) until the delivery of the first production 
     units for a program. The guidance would address, at a 
     minimum, the need for a performance agreement between a 
     program manager and the milestone decision authority for the 
     program; the authorities available to a program manager; and 
     the tenure of a program manager.
       The conferees agree with the assessment of the Government 
     Accountability Office that the Department has consistently 
     failed to give program managers the authority that they need 
     to successfully execute acquisition programs and, as a 
     result, is unable to hold them accountable.
       The conferees believe that program managers for the 
     development period before Milestone B should be responsible 
     for: (1) bringing to maturity the technologies and 
     manufacturing processes that will be needed to carry out the 
     program; (2) ensuring continued focus during program 
     development on meeting stated mission requirements and other 
     requirements of the Department; (3) making trade-offs between 
     program cost, schedule, and performance for the life-cycle of 
     the program; (4) developing a business case for the program; 
     and (5) ensuring that appropriate information is available to 
     the milestone decision authority to make a decision on 
     Milestone B approval, including the information necessary to 
     make the certification required by section 2366a of title 10, 
     United States Code.
       The conferees believe that a program manager for the 
     execution period from Milestone B to the delivery of 
     production units should enter into performance agreements 
     with the milestone decision authority for the program that: 
     (1) establishes expected parameters for the cost, schedule, 
     and performance of the program consistent with the business 
     case for the program and the Milestone B decision; (2) 
     provides the commitment of the milestone decision authority 
     to provide the level of funding and resources required to 
     meet such parameters; and (3) provides the assurance of the 
     program manager that such parameters are achievable and that 
     such program manager will be accountable for meeting such 
     parameters.
       The conferees also believe that program managers should be 
     granted the autonomy to manage their programs without 
     interference from outside officials. The conferees believe 
     that the guidance should include: (1) the assurance that 
     program requirements will not be modified in a way that would 
     be inconsistent with the business case, the Milestone B 
     decision, and any performance agreement entered without a 
     written determination by a senior Department official that 
     the modifications are necessary in the interest of the 
     national defense; (2) program manager authority to make 
     trade-offs between cost, schedule, and performance or to 
     redirect funding within the program, provided that such 
     tradeoffs or redirections of funds are consistent with the 
     parameters established for the program and with applicable 
     requirements of law; and (3) program manager authority to use 
     program funds to recruit and hire such technical experts as 
     may be required to carry out the program in a manner 
     consistent with the requirements of law and regulation, if 
     necessary expertise is not otherwise provided by the 
     Department.
       The conferees also believe that (1) a program manager 
     should be assigned to remain with a program, to the extent 
     practicable, during the entire respective development or 
     execution period; and (2) a program manager should be 
     provided the resources and support (including systems 
     engineering expertise, cost estimating expertise, and 
     software development expertise) needed to meet their 
     responsibilities. The conferees expect the guidance issued by 
     the Secretary to reflect these principles, subject to such 
     modifications and exceptions as the Secretary may deem 
     necessary.
       Subsection (e) would require reports by the Secretary and 
     the Comptroller General on steps taken to carry out the 
     requirements of this section.
     Joint policies on requirements definition, contingency 
         program management, and contingency contracting (sec. 
         854)
       The Senate amendment contained a provision (sec. 864) that 
     would require the Department of Defense to develop a plan for 
     contingency program management during combat operations and 
     post-conflict operations.
       The House bill contained no similar provision.
       The House recedes with an amendment that would incorporate 
     the requirements for contingency program management under 
     this section into a single provision with requirements for 
     contingency contracting under section 817 of the National 
     Defense Authorization Act for Fiscal Year 2006 (Public Law 
     109-163). This section would also require the development of 
     a joint policy to facilitate effective generation and 
     definition of requirements and determination of appropriate 
     corresponding organizational structures.
     Clarification of authority to carry out certain prototype 
         projects (sec. 855)
       The Senate amendment contained a provision (sec. 871) that 
     would amend section 845 of the National Defense Authorization 
     Act for Fiscal Year 1994 (Public Law 103-160), as amended by 
     section 823 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163), to allow the director 
     of a defense agency to make the written determination 
     necessary to exercise other transaction authority on a 
     prototype project that is expected to cost the Department of 
     Defense in excess of $20.0 million, but not more than $100.0 
     million.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     the authority to make the necessary determination to utilize 
     other transactions for projects expected to cost between 
     $20.0 million and $100.0 million would be granted to the 
     Director of the Defense Advanced Research Projects Agency and 
     the Director of the Missile Defense Agency.
     Contracting with employers of persons with disabilities (sec. 
         856)
       The Senate amendment contained a provision (sec. 873) that 
     would extend for 1 year the status quo for continuation and 
     completion of existing contracts, including any options, 
     awarded under the Javits-Wagner-O'Day Act (41 U.S.C. 46 et 
     seq.) and the Randolph-Sheppard Act (20 U.S.C. 107 et seq.) 
     programs for the operation of military troop dining 
     facilities, military mess halls, and other similar military 
     dining facilities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would establish a 
     permanent policy regarding the award of contracts and 
     subcontracts for food services, mess attendant services, and 
     other services supporting the operation of a military dining 
     facility under the Javits-Wagner-O'Day and Randolph-Sheppard 
     Acts. The amendment would require a review and report by the 
     Government Accountability Office on operational procedures, 
     competition, and determinations regarding fair and reasonable 
     pricing for contracts awarded under both Acts. The amendment 
     would also require a joint report from the Inspectors General 
     of the Departments of Defense and Education on management 
     procedures implemented under the two Acts.
     Enhanced access for small business (sec. 857)
       The House bill contained a provision (sec. 825) that would 
     amend section 9(a) of the Contract Disputes Act of 1978 (41 
     U.S.C. 608) to provide expedited disposition of appeals by 
     the Armed Services Board of Contract Appeals and the Civilian 
     Board of Contract Appeals for small business disputes of 
     $150,000 or less.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Procurement goal for Hispanic-serving institutions (sec. 858)
       The House bill contained a provision (sec. 826) that would 
     extend contract goals for small disadvantaged businesses and 
     certain institutions of higher education to include Hispanic-
     serving institutions.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                   Legislative Provisions Not Adopted

     Adjustment of original baseline estimates for major defense 
         acquisition program experiencing cost growth resulting 
         from damage caused by hurricanes Katrina, Rita, and Wilma
       The Senate amendment contained a provision (sec. 805) that 
     would allow the Department of Defense to adjust the original 
     baseline estimate under section 2435(d) of title 10, United 
     States Code, for a major defense program that is carried out 
     primarily in the areas affected by hurricanes Katrina, Rita, 
     and Wilma for the sole purpose of addressing cost growth that 
     is directly attributable to damage caused by those 
     hurricanes.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees acknowledge that funds appropriated in 
     division B of the Department of Defense Appropriations Act 
     for Fiscal Year 2006 (Public Law 109-148) for shipbuilding 
     programs affected by hurricanes Katrina, Rita, and Wilma will 
     likely cause the programs to breach Nunn-McCurdy thresholds. 
     The conferees expect the Department to submit an abbreviated 
     Selected Acquisition Report under section 2435(d) if Nunn-
     McCurdy thresholds are breached solely because of costs due 
     to increases caused by hurricanes Katrina, Rita, and Wilma.
     Availability of funds for performance-based logistics 
         contracts for weapons systems logistics support
       The Senate amendment contained a provision (sec. 808) that 
     would authorize the Secretary of Defense to use operation and 
     maintenance (O&M) funds for performance-based

[[Page 21113]]

     logistics contracts to finance costs associated with the 
     implementation of engineering changes that result in a 
     reduction of government O&M costs.
       The House bill contained no similar provision.
       The Senate recedes.
     Applicability of statutory executive compensation cap made 
         prospective
       The House bill contained a provision (sec. 811) that would 
     amend section 808(e)(2) of the National Defense Authorization 
     Act for Fiscal Year 1998 (Public Law 105-85) to clarify that 
     the underlying provision is prospective from the date of 
     enactment.
       The Senate amendment contained no similar provision.
       The House recedes.
     Prohibition on procurement from beneficiaries of foreign 
         subsidies
       The House bill contained a provision (sec. 812) that would 
     prohibit the Secretary of Defense from entering into a 
     contract with a foreign person (including a joint venture, 
     cooperative organization, partnership, or contracting team), 
     who has received a subsidy from the government of a foreign 
     country that is a member of the World Trade Organization, if 
     the United States has requested a consultation with that 
     foreign country on the basis that the subsidy is prohibited 
     under the Agreement on Subsidies and Countervailing Measures.
       The Senate amendment contained no similar provision.
       The House recedes.
     Removal of hand and measuring tools from certain requirements
       The Senate amendment contained a provision (sec. 821) that 
     would remove hand and measuring tools from the requirement to 
     buy certain articles from American sources.
       The House bill contained no similar provision.
       The Senate recedes.
     Waiver authority for domestic source or content requirements
       The Senate amendment contained a provision (sec. 823) that 
     would provide the Secretary of Defense the authority to waive 
     the application of statutory domestic source requirements and 
     domestic content requirements under certain conditions.
       The House bill contained no similar provision.
       The Senate recedes.
     Repeal of requirement for identification of essential 
         military items and military system essential item 
         breakout list
       The Senate amendment contained a provision (sec. 824) that 
     would repeal the requirement for identifying essential 
     military items on a military system essential item breakout 
     list.
       The House bill contained no similar provision.
       The Senate recedes.
     Consistency with United States obligations under trade 
         agreements
       The Senate amendment contained a provision (sec. 825) that 
     would require that no provision of this Act, or any amendment 
     made by this Act, shall apply if the Secretary of Defense, in 
     consultation with the Secretary of Commerce, the U.S. Trade 
     Representative, and the Secretary of State, determines that 
     the application of the provision would be inconsistent with 
     international trade agreements of the United States.
       The House bill contained no similar provision.
       The Senate recedes.
     Prohibition on defense contractors requiring licenses or fees 
         for use of military likenesses and designations
       The House bill contained a provision (sec. 827) that would 
     require that any contract entered into by the Department of 
     Defense include a provision prohibiting the contractor from 
     requiring toy and hobby manufacturers, distributors, or 
     merchants to obtain licenses or pay fees for the use of 
     military likenesses or designations on items provided under 
     the contract.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees are aware that the use of military likenesses 
     and designations in commerce involve issues of intellectual 
     property and trademark law, constitutional takings, and the 
     commercialization of defense technologies that are of great 
     importance to the Department. The conferees are also aware 
     that section 1004 of the Ronald W. Reagan National Defense 
     Authorization Act for Fiscal Year 2005 (Public Law 108-375) 
     authorized the Department to license trademarks, service 
     marks, certification marks, and collective marks, and to 
     operate a licensing program to raise funds for morale, 
     welfare, and recreation activities.
       The conferees believe that clarification of the system for 
     determining ownership of military likenesses and designations 
     could reduce confusion, particularly among manufacturers of 
     toy models and hobby items, regarding appropriate policy and 
     process for collection of license fees. The conferees 
     encourage the Department to work with appropriate Federal 
     departments and agencies to study the legal, financial, and 
     administrative issues surrounding the registration of 
     intellectual property rights in the likenesses and 
     designations of military items, and to report back to 
     Congress as soon as practicable on any recommendations for 
     modifications to existing polices or statutes. The report 
     should include a discussion of how the registration and 
     licensing program authorized by section 1004 could be used to 
     streamline the procedures under which toy and hobby 
     manufacturers obtain licenses for military likenesses and 
     designations.
     Report on Department of Defense contracting with contractors 
         or subcontractors employing members of the Selected 
         Reserve
       The Senate amendment contained a provision (sec. 845) that 
     would require the Secretary of Defense to conduct a study on 
     actual or potential contractors or subcontractors who employ 
     members of the Selected Reserve. The study would address the 
     extent to which Department of Defense contractors employ 
     members of the Selected Reserve; potential disadvantages to 
     such contractors in competing for Department contracts if 
     their employees are mobilized; and recommendations for any 
     appropriate action to provide such contractors with time or 
     assistance in meeting contract deadlines. The provision would 
     also repeal section 819 of the National Defense Authorization 
     Act for Fiscal Year 2006 (Public Law 109-163), which provided 
     authorization for the Secretary to use employment of Selected 
     Reserve members by a contractor as an evaluation factor for 
     award of contracts.
       The House bill contained no similar provision.
       The Senate recedes.
     Pilot program on expanded use of Mentor-Protege authority
       The Senate amendment contained a provision (sec. 874) that 
     would enable the Secretary of Defense to use the authorities 
     of the Department of Defense Mentor-Protege program to 
     provide technical assistance to firms that develop new 
     technologies related to force protection or countering the 
     threat of improvised explosive devices under the Small 
     Business Innovative Research program.
       The House bill contained no similar provision.
       The Senate recedes.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                     Legislative Provisions Adopted

              Subtitle A--Department of Defense Management

     Increase in authorized number of assistant secretaries of 
         defense (sec. 901)
       The conferees agree to include a provision requested by the 
     Department of Defense that would amend section 138(a) of 
     title 10, United States Code, to permit an increase in the 
     number of assistant secretaries of defense (ASDs) from 9 to 
     10 in order to facilitate a reorganization of the Office of 
     the Under Secretary of Defense for Policy (OUSD(P)).
       The conferees support the stated purpose of the 
     reorganization, which is to develop a balanced set of 
     portfolios that would allow more effective interaction with 
     both commanders of the unified combatant commands and other 
     Federal departments and agencies. The conferees understand 
     that the Secretary of Defense intends to begin implementation 
     of the OUSD(P) reorganization on or about October 1, 2006. 
     While the conferees agree that the Secretary of Defense 
     should adjust the roles and responsibilities within the 
     OUSD(P) to address more effectively the full range of current 
     and emerging national security challenges, the conferees 
     share some concerns about the proposed reorganization. Chief 
     among these concerns are:
       (1) the role of a global war on terrorism task force that 
     reports directly to the Under Secretary of Defense for 
     Policy, and the relationship between that task force and the 
     ASD for ``Special Operations and Low-Intensity Conflict and 
     Interdependent Capabilities'' (SOLIC/IC) and other ASDs;
       (2) the placement of ``Strategic Capabilities'' under the 
     ASD for SOLIC/IC. Nuclear and missile issues arguably require 
     a different skill set and knowledge base and could result in 
     an overall dilution of the statutory mission of this ASD, 
     which is to supervise special operations and low-intensity 
     conflict activities. Moreover, moving ``Strategic 
     Capabilities'' to a different ASD than the one responsible 
     for chemical and biological weapons issues may complicate the 
     effective coordination that occurs currently. It would mean 
     that the Commander, U.S. Strategic Command, would need to 
     seek guidance on combating weapons of mass destruction (WMD) 
     policy from two different ASDs, creating the kind of seam 
     that the reorganization is suppose to minimize;
       (3) the placement of ``Forces Transformation and 
     Resources'' under the ASD for SOLIC/IC. The conferees have 
     similar concerns about the different skill set and knowledge 
     base required for overseeing transformation, as well as the 
     U.S. Transportation Command. Placing such responsibilities 
     under the ASD for SOLIC/IC would further divert focus from 
     the statutory mission of this ASD;
       (4) the very large span of responsibilities for a Deputy 
     ASD for ``Counternarcotics, Counterproliferation, and Global 
     Threats.'' The large number of significant issues that would 
     reside in this organization could mean

[[Page 21114]]

     that insufficient personnel and resources are devoted to the 
     critical and diverse issues assigned to this ASD, including 
     the critical missions of cooperative threat reduction, 
     counterproliferation, and combating WMD;
       (5) the potential impact on counternarcotics (CN) program 
     execution. While the conferees recognize that efficiencies 
     can be gained by developing common approaches and funding to 
     combat illicit drug production and trafficking, terrorism, 
     and proliferation of WMD, the conferees note that the 
     management of CN policy must remain consistent with 
     congressional intent regarding the Department of Defense's 
     counterdrug role and the effective use of its drug 
     interdiction central transfer account. Separating CN policy 
     oversight from the administration of the central transfer 
     account would likely reduce the effectiveness and 
     responsiveness of the CN policy office and its ability to 
     facilitate accurate congressional oversight of the program;
       (6) the unique placement of both functional and regional 
     issue responsibilities under one ASD for Homeland Defense and 
     Americas' Security Affairs. It also is unclear what the 
     functional issues under this ASD would entail; and
       (7) the role of the Deputy Assistant Secretary of Defense 
     for ``Building Partner Capacity Strategy.'' It is unclear how 
     this portfolio would differ from that of a Deputy Assistant 
     Secretary of Defense for ``Security Cooperation Operations.'' 
     This structure appears to presume that the Department will 
     receive permanent authority to undertake foreign military 
     assistance missions, despite the fact that Congress has not 
     provided such authority to the Department.
       In light of these concerns, the conferees direct the 
     Secretary of Defense to submit to the congressional defense 
     committees, not later than February 1, 2007, a report on the 
     OUSD(P) reorganization. This report shall provide a detailed 
     description and explanation of the reorganization, including 
     each of the concerns noted above. The conferees also expect 
     that Department officials will consult frequently with the 
     congressional defense committees about the assigned 
     responsibilities of the ASDs, the assignment of personnel, 
     and the plan for implementation.
     Modifications to the Combatant Commander Initiative Fund 
         (sec. 902)
       The conferees agree to include a provision that would 
     provide expanded authority under the Combatant Commanders 
     Initiative Fund (CCIF) for geographic combatant commanders to 
     provide urgent and unanticipated humanitarian relief and 
     reconstruction assistance to countries in their respective 
     areas of responsibility (AORs), particularly to countries 
     where U.S. Armed Forces are engaged in a contingency 
     operation. The conferees also agree to increase by $5.0 
     million the amount authorized for the CCIF for fiscal year 
     2007 for this purpose.
       The conferees believe it is important that the geographic 
     combatant commanders have additional authority, resources, 
     and flexibility in order to be able to respond to urgent and 
     unanticipated humanitarian relief and reconstruction needs in 
     their AORs, particularly in countries where U.S. forces are 
     engaged in a contingency operation. The conferees urge the 
     Department of Defense to request sufficient funds in the CCIF 
     for this purpose in future years budget requests. The 
     conferees urge the Department of Defense to develop guidance 
     for the use of this authority to ensure that the authority 
     can be used quickly and without bureaucratic delay in urgent 
     situations. The conferees also urge that the guidance include 
     procedures for coordinating with the relevant Department of 
     State country team as a precondition for providing assistance 
     to a foreign country under this authority.
       The conferees note that this expanded CCIF authority is not 
     intended for use in Afghanistan or Iraq so long as 
     Commander's Emergency Response Program (CERP) authority is 
     available for use in those countries.
     Addition to membership of specified council (sec. 903)
       The House bill contained a provision (sec. 903) that would 
     amend section 179(a) of title 10, United States Code, to add 
     the Commander, Strategic Command to the Nuclear Weapons 
     Council.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Consolidation and standardization of authorities relating to 
         Department of Defense Regional Centers for Security 
         Studies (sec. 904)
       The House bill contained a provision (sec. 904) that would 
     streamline the management of the Department of Defense 
     Regional Centers for Security Studies by providing a uniform 
     set of authorities for all of these Regional Centers. The 
     provision would allow the Regional Centers to conduct 
     research, as well as facilitate the communication and 
     exchange of ideas between U.S. and foreign military officers, 
     civilian governmental personnel, and non-governmental 
     personnel. The provision would permit foreign governments and 
     U.S. federal agencies to fund foreign participation in Center 
     activities, and would provide the Secretary of Defense 
     authority to waive reimbursement of costs of activities for 
     military officers and civilian defense and security officials 
     from developing countries. The provision would continue the 
     requirement for the Secretary of Defense to submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives an annual report on the Regional Centers' 
     status, objectives, budgets, international participation, and 
     foreign gifts and donations.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Oversight by Office of Under Secretary of Defense for 
         Acquisition, Technology, and Logistics of exercise of 
         acquisition authority by combatant commanders and heads 
         of Defense Agencies (sec. 905)
       The Senate amendment contained a provision (sec. 902) that 
     would establish a senior acquisition executive for special 
     operations within the staff of the Assistant Secretary of 
     Defense for Special Operations and Low-Intensity Conflict.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to, not later than 180 days after the date of the 
     enactment of this Act, designate a senior acquisition 
     official within the Office of the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics to coordinate and 
     oversee the exercise of acquisition authorities by any 
     combatant commander and any head of a defense agency 
     designated by the Secretary of Defense to exercise 
     acquisition authority.
       The conferees note that the designation of a senior 
     acquisition official within the Office of the Under Secretary 
     of Defense for Acquisition, Technology, and Logistics under 
     the expanded authorities recommended by this section is 
     intended to enhance acquisition oversight and the effective 
     stewardship of resources and is not intended to impede the 
     need to fulfill the urgent requirements of the commanders of 
     combatant commands and the heads of defense agencies.
     Standardization of statutory references to ``national 
         security system'' within laws applicable to Department of 
         Defense (sec. 906)
       The House bill contained a provision (sec. 901) that would 
     modify three sections of title 10 to ensure the definition of 
     national security system is consistent with the current 
     definition in the Federal Information Security Management Act 
     of 2002 (Public Law 107-347) and with the definition of 
     information technology in section 3542(b)(2) of title 44, 
     United States Code.
       The Senate amendment contained a similar provision (sec. 
     1071).
       The Senate recedes.
     Correction of reference to predecessor of Defense Information 
         Systems Agency (sec. 907)
       The House bill contained a provision (sec. 902) that would 
     amend section 193 of title 10, United States Code, to reflect 
     the current name of the Defense Information Systems Agency.
       The Senate amendment contained an identical provision (sec. 
     1072).
       The conference agreement includes this provision.

                      Subtitle B--Space Activities

     Designation of successor organizations for the disestablished 
         Interagency Global Positioning Executive Board (sec. 911)
       The House bill contained a provision (sec. 911) that would 
     amend the Commercial Space Transportation Competitiveness Act 
     of 2000 (Public Law 106-405) to reflect the subsequent 
     disestablishment of the Interagency Global Positioning 
     Executive Board and its replacement by a new organizational 
     structure created by national policy.
       The Senate amendment contained a similar provision (sec. 
     1082).
       The Senate recedes with a technical amendment that would 
     replace the phrase ``national security presidential 
     directive'' with ``U.S. Space-based Position, Navigation, and 
     Timing Policy.''
     Extension of authority for pilot program for provision of 
         space surveillance network services to non-United States 
         Government entities (sec. 912)
       The House bill contained a provision (sec. 912) that would 
     extend through September 30, 2009, a pilot program that is 
     determining the feasibility and desirability of providing 
     space surveillance data support to non-United States 
     Government entities.
       The Senate amendment contained an identical provision (sec. 
     912).
       The conference agreement includes this provision.
     Operationally responsive space (sec. 913)
       The House bill contained a provision (sec. 913) that would 
     establish an Operationally Responsive Space (ORS) program 
     office and would require the Secretary of Defense to submit a 
     report to the congressional defense committees setting forth 
     a plan for acquisition of capabilities for operationally 
     responsive space support to the military.
       The Senate amendment contained a similar provision (sec. 
     911).
       The House recedes with an amendment that would clarify the 
     organization and acquisition activities of the program 
     office.
       The conferees make the following findings: (1) access to 
     and use of space is critical for preserving and protecting 
     the national security, commercial, and civil interests of the

[[Page 21115]]

     United States; (2) to the maximum extent possible, space 
     capabilities should be integrated into the strategy, 
     doctrine, operations, and contingency plans of the armed 
     forces; (3) the combatant commanders should have access to 
     responsive space capabilities that provide prompt, focused 
     support in their theater of operations, including which 
     capabilities should compliment other national and Department 
     of Defense space assets while providing direct and flexible 
     support to the warfighter on the battlefield and military 
     operations other than war; and (4) the United States Space 
     Transportation Policy of January 6, 2005, calls for the 
     demonstration, before 2010, of an initial capability for 
     operationally responsive access to and use of space to 
     support the national security requirements of the United 
     States.
       Accordingly, the conferees believe it should be the policy 
     of the United States to demonstrate, acquire, and deploy an 
     effective ORS capability to support military users and 
     operations from space. The conferees understand the term ORS 
     to include the ability to launch--and activate quickly--
     militarily useful satellites when needed to provide surge 
     capability, reconstitute damaged or incapacitated satellites, 
     or provide timely availability of tailored or new 
     capabilities to the military user. By lowering the cost of 
     satellite development and associated launch costs, ORS 
     capabilities can lead to long-term benefits by advancing 
     technology, improving space acquisitions, enhancing the 
     skills of the technical workforce, and broadening the space 
     industrial base.
       To this end, the conferees direct the Secretary of Defense 
     to establish a program office within the Department of 
     Defense to coordinate and execute the Department's ORS 
     activities and to facilitate the development of low-cost, 
     rapid reaction payloads, busses, space-lift, and launch 
     control capabilities to fulfill joint military operational 
     requirements for on-demand space support and reconstitution. 
     This program office should be the focal point for activities 
     and entities with the capacity to contribute to the 
     development of ORS capabilities and, as such, shall include 
     science and technology, acquisition, operations, and 
     combatant command support elements. In addition to 
     coordinating the Department's efforts, this program office 
     should seek to coordinate with the intelligence community and 
     other relevant non-Department of Defense entities that may 
     have activities associated with the ORS mission, and utilize 
     existing processes and infrastructure, where applicable. The 
     Department of Defense Executive Agent for Space, or a 
     designee appointed by the Secretary, shall serve as head of 
     the program office. Such designee shall report directly to 
     the Department of Defense Executive Agent for Space.
       The conferees recognize the value of developing systems for 
     operational experimentation, which include leveraging these 
     systems for technology demonstrations, applying lessons 
     learned to the acquisition of production systems, and 
     providing militarily useful support in-theater
       Central to the success of the ORS effort is controlling the 
     cost of satellites and launch vehicles developed as 
     operational experimentation systems as well as operationally 
     fielded production systems. The conferees believe it should 
     be a goal of the program office, to the maximum extent 
     possible, to limit the cost of launch vehicles (to low earth 
     orbit) to approximately $20.0 million in constant dollars, 
     and to limit the cost of an integrated satellite to 
     approximately $40.0 million in constant dollars.
       The conferees direct the Secretary to create a separate 
     program element for the activities of the ORS program office 
     and to ensure that, to the extent applicable, relevant 
     programs and activities for ORS are consolidated within this 
     program element. This is not intended to preclude other 
     agencies or organizations within the Department from 
     budgeting for science and technology efforts related to the 
     ORS mission. The conferees do recommend, however, that the 
     acquisition of operational capabilities and operations 
     support costs should be planned, programmed, and budgeted in 
     the program element for the ORS program office.
     Independent review and assessment of Department of Defense 
         organization and management for national security in 
         space (sec. 914)
       The Senate amendment contained a provision (sec. 913) that 
     would require the Secretary of Defense to select an entity 
     outside the Department of Defense to conduct an independent 
     review and assessment of the organization and management of 
     the Department of Defense for national security in space.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to consult with the chairmen and ranking 
     members of the Committees on Armed Services of the Senate and 
     the House of Representatives in selecting the entity to 
     conduct the review and assessment.

             Subtitle C--Chemical Demilitarization Program

     Sense of Congress on completion of destruction of United 
         States chemical weapons stockpile (sec. 921)
       The Senate amendment contained a provision (sec. 1087) that 
     would express the sense of the Senate that: (1) the United 
     States is committed to making every effort to safely dispose 
     of its chemical weapons stockpile by the Chemical Weapons 
     Convention extended deadline of April 29, 2012, or as soon 
     thereafter as possible; (2) the Secretary of Defense should 
     prepare a comprehensive schedule for safely destroying the 
     U.S. chemical weapons stockpile to prevent further delays in 
     its destruction, and should submit that schedule annually to 
     the congressional defense committees in an annual report; and 
     (3) the Secretary should make every effort to ensure adequate 
     funding to complete the elimination of the U.S. chemical 
     weapons stockpile in the shortest time possible, consistent 
     with the requirement to protect public health, safety, and 
     the environment.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make the 
     provision a sense of Congress and add an additional element 
     stating that the Secretary of Defense should propose a 
     credible process to gain the support of affected communities 
     when selecting a site for the treatment or disposal of 
     neutralized chemical agent at a location remote from where 
     the agent is stored.
     Comptroller General review of cost-benefit analysis of off-
         site versus on-site treatment and disposal of hydrolysate 
         derived from neutralization of VX nerve gas at Newport 
         Chemical Depot, Indiana (sec. 922)
       The House bill contained a provision (sec. 922) that would 
     require the Comptroller General to review and report to 
     Congress by December 1, 2006, on the adequacy of the cost 
     benefit analysis prepared by the Secretary of the Army 
     comparing options to treat and dispose of the hazardous 
     material that is a by-product of the process of neutralizing 
     VX nerve gas stored at the Newport Chemical Depot, Indiana. 
     The provision would also prohibit the Secretary from 
     proceeding with any action to transport this hazardous 
     material, or hydrolysate, from the Newport Chemical Depot 
     until 60 days after the Comptroller General's report is 
     received by Congress.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     the Secretary from proceeding with any action to transport 
     this hazardous material, or hydrolysate, from the Newport 
     Chemical Depot to the State of New Jersey until the earlier 
     of: 60 days after the Comptroller General's report is 
     received by Congress, or February 1, 2007.
     Incentives clauses in chemical demilitarization contracts 
         (sec. 923)
       The Senate amendment contained a provision (sec. 372) that 
     would provide the Secretary of Defense authority to include 
     an incentives clause in any contract for the destruction of 
     the U.S. stockpile of lethal chemical agents and munitions in 
     order to accelerate the safe elimination of the U.S. chemical 
     weapons stockpile and to reduce the total cost of the 
     chemical demilitarization program by affording the contractor 
     an opportunity to share in the life cycle cost savings that 
     the U.S. Government would realize by early completion of 
     destruction operations and facility closure. The provision 
     would require that this authority be exercised consistent 
     with the Secretary's obligation under law to provide for 
     maximum protection for the environment, the general public, 
     and the personnel who are involved in the destruction of the 
     lethal chemical agents and munitions. The authority to 
     include an incentives clause in a contract would be subject 
     to the availability of appropriations for that purpose.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that this authority is intended to be 
     available for all elements of the chemical demilitarization 
     program, including the Chemical Stockpile Disposal Project, 
     the Alternative Technologies and Approaches Project, and the 
     Assembled Chemical Weapons Alternative Program.
       The conferees express their disappointment in the 
     notification from the Secretary of Defense dated April 10, 
     2006, that the United States will not be able to meet the 
     Chemical Weapons Convention extended destruction deadline of 
     April 29, 2012, for the complete destruction of the U.S. 
     chemical weapons stockpile. The conferees note the 
     Secretary's commitment in the notification that ``The 
     Department will continue working diligently to minimize the 
     time to complete destruction without sacrificing safety and 
     security. We will also continue requesting resources needed 
     to complete destruction as close to April 2012 as 
     practicable.'' The conferees strongly concur in those 
     sentiments and urge the Department to uphold the commitment 
     expressed in the Secretary's notification letter.
     Chemical demilitarization program contracting authority (sec. 
         924)
       The Senate amendment contained a provision (sec. 376) that 
     would clarify retroactively that the Secretary of Defense may 
     carry out the chemical weapons demilitarization program 
     through multiyear contracts.
       The House bill contained no similar provision.

[[Page 21116]]

       The House recedes.

                Subtitle D--Intelligence-Related Matters

     Four-year extension of authority of Secretary of Defense to 
         engage in commercial activities as security for 
         intelligence collection activities (sec. 931)
       The Senate amendment contained a provision (sec. 1031) that 
     would extend the authority to engage in commercial activities 
     as security for intelligence collection activities until 
     December 31, 2008.
       The House bill contained a similar provision (sec. 931).
       The House recedes with an amendment that would extend the 
     authority until December 31, 2010.
     Annual reports on intelligence oversight activities of the 
         Department of Defense (sec. 932)
       The Senate amendment contained a provision (sec. 1032) that 
     would require the Secretary of Defense to submit an annual 
     report to the congressional defense and intelligence 
     committees on intelligence oversight activities of the 
     Department of Defense. The term ``intelligence oversight 
     activities of the Department of Defense'' refers to any 
     activity undertaken by an agency element or component of the 
     Department to ensure compliance with regard to intelligence 
     and intelligence-related activities of the Department under 
     law or any Executive order, or Presidential directive, 
     including Executive Order 12333.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     distribution of the report, remove references to 
     ``questionable activities,'' and add the required annual 
     report to chapter 21, title 10, United States Code.
     Collection by National Security Agency of service charges for 
         certification or validation of information assurance 
         products (sec. 933)
       The Senate amendment contained a provision (sec. 1035) that 
     would authorize the National Security Agency to collect 
     service charges for the certification or validation of 
     information assurance products.
       The House bill contained no similar provision.
       The House recedes.

                       Subtitle E--Other Matters

     Department of Defense policy on unmanned systems (sec. 941)
       The Senate amendment contained a provision (sec. 921) that 
     would require the Secretary of Defense, in consultation with 
     the Chairman of the Joint Chiefs of Staff, to develop a 
     Department-wide policy for research, development, test, and 
     evaluation; procurement; and operation of unmanned systems.
       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) clarify 
     the policy elements to be addressed; (2) require the report 
     to the congressional defense committees to include strategy 
     and schedule information for implementing the necessary 
     policy; and (3) define unmanned systems for the purposes of 
     this section.
       The conferees recognize that unmanned systems are not, and 
     will not, be capable of replacing manned systems in every 
     case. However, the conferees encourage the Department of 
     Defense to use an expanded vision in determining those 
     routine and dangerous missions that could, and should, be 
     performed by unmanned systems. Interoperability, 
     survivability, commonality, sustainment, manufacturing, and 
     training should be examined for seamless integration between 
     manned and unmanned systems development, acquisition and 
     operation in the air, on the ground, and at sea.
     Executive Schedule level IV for Deputy Under Secretary of 
         Defense for Logistics and Materiel Readiness (sec. 942)
       The Senate amendment contained a provision (sec. 922) that 
     would move the position of Deputy Under Secretary of Defense 
     for Logistics and Materiel Readiness from Executive Schedule 
     Level III to Level IV. The change would be applicable to 
     future appointees to the position.
       The House bill contained no similar provision.
       The House recedes.
     Study and report on reform of Defense Travel System (sec. 
         943)
       The Senate amendment contained a provision (sec. 926) that 
     would prohibit the Secretary of Defense from obligating or 
     expending any funds related to the Defense Travel System, 
     except those funds obtained through a one-time, fixed-price 
     service fee per Department of Defense customer utilizing the 
     system with an additional fixed fee for each transaction.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to provide an independent report to the 
     congressional defense committees within 6 months of the date 
     of the enactment of this Act. The report shall analyze the 
     feasibility of separating the financial infrastructure of the 
     Defense Travel System from the travel reservation system, 
     converting the travel reservation process to a fee-for-
     service system, and making the use of the financial 
     infrastructure of the Defense Travel System mandatory for all 
     travel transactions.
       The amendment would also require the Secretary to report to 
     the congressional defense committees on the actions he plans 
     to take to implement the recommendations of the report. The 
     amendment prohibits the Secretary from initiating a new 
     contract for the Defense Travel System (other than to 
     continue current operations) until the report has been 
     provided to the Congress.
     Administration of pilot project on Civilian Linguist Reserve 
         Corps (sec. 944)
       The Senate amendment contained a provision (sec. 1033) that 
     would transfer the administration of the pilot project on the 
     Civilian Linguist Reserve Corps from the Director of National 
     Intelligence (DNI) to the Secretary of Defense.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to coordinate with the DNI in carrying out the 
     pilot project, and extend the duration of the pilot project 
     for an additional 2 years.
     Improvement of authorities on the National Security Education 
         Program (sec. 945)
       The Senate amendment contained a provision (sec. 1034) that 
     would amend section 1902(b)(2) of title 50, United States 
     Code, to expand the entities in which mandated service could 
     be performed to include the Department of Homeland Security, 
     Department of State, or a position in the field of education. 
     The provision would also provide authority to the Secretary 
     of Defense to hire a program participant in a position in the 
     Department of Defense on a temporary, interim basis, for a 
     period not to exceed 2 years, to expedite security clearances 
     and other personnel processes, if there is no other permanent 
     position available for the participant.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     authority to expand the entities in which mandated service 
     could be performed, and make clarifying changes.
     Report on the posture of the United States Special Operations 
         Command to conduct the global war on terrorism (sec. 946)
       The Senate amendment contained a provision (sec. 927) that 
     would require the Secretary of Defense to report on the types 
     of units and capabilities that should be incorporated into 
     the reserve components of the Armed Forces as part of the 
     expansion of Special Forces, as outlined in the 2006 
     Quadrennial Defense Review Report. In addition, the Secretary 
     would be required to report on the effort taken by the U.S. 
     Special Operations Command (USSOCOM) to provide special 
     forces training in high-altitude and mountainous areas within 
     the United States.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     the report should assess the posture of USSOCOM to conduct 
     the global war on terrorism, including: (1) whether the 
     command is appropriately manned, resourced, and equipped; (2) 
     whether there is an appropriate balance of capabilities 
     between the active and reserve components; (3) whether there 
     are sufficient numbers of Army Special Forces for foreign 
     security assistance and training missions; and (4) how the 
     special operations forces are being trained for different 
     operational environments.

                   Legislative Provisions Not Adopted

     United States Military Cancer Institute
       The Senate amendment contained a provision (sec. 901) that 
     would require the Secretary of Defense to establish the 
     United States Military Cancer Institute in the Uniformed 
     Services University of the Health Sciences.
       The House bill contained no similar amendment.
       The Senate recedes.
     Military deputies to the assistant secretaries of the 
         military departments for acquisition, logistics, and 
         technology matters
       The Senate amendment contained a provision (sec. 904) that 
     would establish positions within the military departments for 
     military deputies to the assistant secretaries for 
     acquisition in the Departments of the Army, Navy, and Air 
     Force. The officers serving in these positions would hold the 
     rank of lieutenant general or vice admiral while serving and 
     would be excluded from limits on the numbers and percentages 
     of officers in the respective services.
       The House bill contained no similar provision.
       The Senate recedes.
     Redesignation of the Department of the Navy as the Department 
         of the Navy and Marine Corps
       The House bill contained a provision (sec. 905) that would 
     amend title 10, United States Code, to redesignate the 
     Department of the Navy as the Department of the Navy and 
     Marine Corps. The provision would also change the titles of 
     the Secretary of the Navy, the Assistant Secretaries of the 
     Navy, and the General Counsel of the Navy to include both the 
     Navy and the Marine Corps.
       The Senate amendment contained no similar provision.
       The House recedes.

[[Page 21117]]


     Transfer to Secretary of the Army of responsibility for 
         Assembled Chemical Weapons Alternatives program
       The House bill contained a provision (sec. 921) that would 
     transfer program management responsibility for the Assembled 
     Chemical Weapons Alternatives program from the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics to the Secretary of the Army by January 1, 2007.
       The Senate amendment contained no similar provision.
       The House recedes.
     Sense of Congress regarding the safe and expeditious disposal 
         of chemical weapons
       The House bill contained a provision (sec. 923) that would 
     express the sense of Congress that the process used for 
     selecting a site for remote disposal of hazardous material 
     remaining after the initial processing of chemical munitions 
     should be free from political influence and that a process 
     similar to that used for base closure and realignment be 
     considered for adoption.
       The Senate amendment contained no similar provision.
       The House recedes.
     Sense of Senate on nomination of individual to serve as 
         Director of Operational Test and Evaluation on a 
         permanent basis
       The Senate amendment contained a provision (sec. 924) that 
     would express the sense of the Senate that the President 
     should nominate a permanent Director of Operational Test and 
     Evaluation as soon as practicable.
       The House bill contained no similar provision.
       The Senate recedes.
     Inclusion of homeland defense and civil support missions of 
         the National Guard and Reserves in the Quadrennial 
         Defense Review
       The Senate amendment contained a provision (sec. 925) that 
     would amend section 118(d) of title 10, United States Code, 
     to require the Secretary of Defense to include homeland 
     defense and civil support missions in the Quadrennial Defense 
     Review (QDR) report.
       The House bill contained no similar provision.
       The Senate recedes. The provision was incorporated into 
     another provision elsewhere in this report.

                      TITLE X--GENERAL PROVISIONS

                        Item of Special Interest

     Vietnam conflict
       The conferees believe it is appropriate to commemorate the 
     50th anniversary of the Vietnam conflict in order to thank 
     and honor the veterans, missing in action, and prisoners of 
     war of that conflict and their families; to pay tribute to 
     the sacrifices and contributions made on the home front by 
     the people of the United States during the Vietnam conflict; 
     to highlight advances in technology, science, and medicine 
     related to military research conducted during the Vietnam 
     conflict; and to recognize the contributions and sacrifices 
     made by the allies of the United States in the Vietnam 
     conflict.
       The conferees, therefore, direct the Secretary of Defense 
     to provide the Committees on Armed Services of the Senate and 
     the House of Representatives, not later than April 1, 2007, 
     with a proposed plan on commemoration of the Vietnam 
     conflict. At a minimum, the proposed plan should include: the 
     recommended duration and outline of major events of the 
     commemoration; a discussion of how the Department of Defense 
     would coordinate, support, and facilitate this commemoration 
     with other Federal Government agencies, State and local 
     governments, and other entities; the estimated total 
     expenditures necessary to carry out the commemoration 
     program; and legislative proposals needed to implement the 
     commemoration. The plan should also include the recommended 
     process and guidelines for managing the financing and 
     expenditures of the commemoration. To that end, the plan 
     should include the establishment in the Treasury of an 
     account to be administered by the Secretary of Defense, from 
     which funds might be invested and from which funds could be 
     obligated solely for purposes related to the commemoration 
     program. The conferees also believe that the establishment of 
     such an account should be accompanied by a recommended 
     limitation on the expenditure of appropriated funds in 
     support of the commemoration and that the cost of the 
     commemoration should not be borne by a single military 
     department.

                     Legislative Provisions Adopted

                     Subtitle A---Financial Matters

     General transfer authority (sec. 1001)
       The House bill contained a provision (sec. 1001) that would 
     provide $3.75 billion in transfer authority among accounts in 
     division A of this Act for fiscal year 2007.
       The Senate amendment contained a similar provision (sec. 
     1001) that would provide $4.0 billion in transfer authority 
     among accounts in division A of this Act for fiscal year 
     2007.
       The House recedes with an amendment that would provide $4.5 
     billion in transfer authority.
     Authorization of additional emergency supplemental 
         appropriations for fiscal year 2006 (sec. 1002)
       The House bill contained a provision (sec. 1002) that would 
     authorize emergency supplemental appropriations pursuant to 
     an emergency supplemental appropriations act for 2006.
       The Senate amendment contained a similar provision (sec. 
     1002) that would authorize additional emergency supplemental 
     appropriations for fiscal year 2006 for Iraq, Afghanistan, 
     and the Global War on Terror, pursuant to titles I, II, and V 
     of the Emergency Supplemental Appropriations Act for Defense, 
     the Global War on Terror, and Hurricane Recovery, 2006 
     (Public Law 109-234).
       The House recedes.
     Reduction in certain authorizations due to savings relating 
         to lower inflation (sec. 1003)
       The House bill contained a provision (sec. 1006) that would 
     reduce the amount authorized to be appropriated to the 
     Department of Defense by $1.6 billion to reflect savings from 
     lower-than-expected inflation estimates.
       The Senate amendment contained a similar provision (sec. 
     1003).
       The Senate recedes with an amendment that would reduce the 
     amount authorized to be appropriated to the Department of 
     Defense by $757.1 million.
     Increase in fiscal year 2006 general transfer authority (sec. 
         1004)
       The House bill contained a provision (sec. 1003) that would 
     provide $3.75 billion in transfer authority among accounts in 
     division A of this Act for fiscal year 2006.
       The Senate amendment contained a similar provision (sec. 
     1006) that would provide $5.0 billion in transfer authority 
     for fiscal year 2006.
       The House recedes.
     United States contribution to NATO common-funded budgets in 
         fiscal year 2007 (sec. 1005)
       The House bill contained a provision (sec. 1004) that would 
     authorize the U.S. contribution to North Atlantic Treaty 
     Organization (NATO) common-funded budgets for fiscal year 
     2007, including the use of unexpended balances.
       The Senate amendment contained an identical provision (sec. 
     1005).
       The conference agreement includes this provision.
       The conferees note that this provision is necessary because 
     the resolution of ratification for the Protocol to the North 
     Atlantic Treaty of 1949 on the Accession of Poland, Hungary, 
     and the Czech Republic contained a provision (section 
     3(2)(c)(ii)) requiring a specific authorization for U.S. 
     payments to the common-funded budgets of NATO for each fiscal 
     year, beginning in fiscal year 1999, that payments exceed the 
     fiscal year 1998 total.
     Report on budgeting for fluctuations in fuel cost rates (sec. 
         1006)
       The House bill contained a provision (sec. 1005) that would 
     require the Secretary of Defense to submit a report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives by January 15, 2007, on the fuel cost rate 
     projection used in the annual Department of Defense budget.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment that would 
     change the date of the required report to February 15, 2007, 
     and require that the report be sent to the congressional 
     defense committees.
     Modification of date of submittal of OMB/CBO report on 
         scoring of outlays (sec. 1007)
       The Senate amendment contained a provision (sec. 1006) that 
     would change the date of the currently required report on the 
     Office of Management and Budget and the Congressional Budget 
     Office outlay estimates (section 226 of title 10, United 
     States Code) from January 15 to April 1 of each year.
       The House bill contained no similar provision.
       The House recedes.
     Budgeting for ongoing military operations in Afghanistan and 
         Iraq (sec. 1008)
       The Senate amendment contained a provision (sec. 1085) that 
     would require the President to submit, pursuant to section 
     1105(a) of title 31, United States Code, for each fiscal year 
     after fiscal year 2007, a request for funds for ongoing 
     military operations in Afghanistan and Iraq. The provision 
     would also require the President to submit an estimate of all 
     funds expected to be required in that fiscal year for such 
     operations and a detailed justification of the funds 
     requested.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

          Subtitle B--Policy Relating to Vessels and Shipyards

     Aircraft carrier force structure (sec. 1011)
       The Senate amendment contained a provision (sec. 1011) that 
     would eliminate the requirement for the naval combat forces 
     of the Navy to include no fewer than 12 operational aircraft 
     carriers.
       The House bill contained no similar provision.
       The House recedes with an amendment that would reduce the 
     minimum number of operational aircraft carriers required by 
     law to 11.
       The conferees understand that the 2006 Quadrennial Defense 
     Review Report concluded that a naval force including 11 
     aircraft carriers meets the combat capability requirements of 
     the National Military Strategy. The conferees agree with the 
     Navy's determination that the cost of maintaining 12

[[Page 21118]]

     operational aircraft carriers by restoring the USS John F. 
     Kennedy (CV-67) to a deployable, fully mission-capable status 
     would significantly impact the Chief of Naval Operations' 
     (CNO) plan to build a future naval force of 313 ships. The 
     conferees also agree with the Navy's proposal to inactivate 
     the USS John F. Kennedy (CV-67) in fiscal year 2007. However, 
     the conferees believe that it is important to retain the 
     ability to reactivate the USS John F. Kennedy (CV-67) in the 
     event that 12 aircraft carriers are required in response to a 
     national emergency.
       The conferees expect, therefore, in conjunction with 
     decommissioning the USS John F. Kennedy (CV-67), that the 
     Secretary of Defense, in coordination with the Supreme Allied 
     Commander, Europe and the Secretary of Homeland Security, 
     will evaluate the feasibility of maintaining the aircraft 
     carrier in an operational status by transferring custody and 
     control to the North Atlantic Treaty Organization or the 
     Department of Homeland Security. The Secretary shall provide 
     notification of the findings to the Committees on Armed 
     Services of the Senate and the House of Representatives prior 
     to decommissioning the USS John F. Kennedy (CV-67).
       The conferees further expect that, upon decommissioning 
     from the U.S. Navy and completion of the ship's inactivation 
     availability, the Navy will maintain CV-67 in a state of 
     preservation (dehumidification, cathodic protection, and 
     configuration control) pending determination of final 
     disposition. In the event it is determined that CV-67 is to 
     be retired from operational status, the Secretary of the Navy 
     shall evaluate other alternatives for final disposition, to 
     include maintenance in a reduced mobilization status, 
     donation as a museum article, or striking from the naval 
     vessel registry; and report the findings with the Secretary 
     of the Navy's recommendation to the congressional defense 
     committees not later than October 1, 2007. Under all 
     circumstances, the Navy shall retain custody of CV-67 at 
     least until commissioning of CVN-77. If the aircraft carrier 
     is transferred from the custody and control of the Navy, the 
     Secretary of the Navy shall require as a condition of such 
     transfer that the transferee, upon request of the Secretary 
     of Defense, return the vessel to the United States. In such a 
     case, unless the transferee is otherwise notified by the 
     Secretary of the Navy, the title to the vessel shall revert 
     immediately to the United States.
       The conferees agree with the CNO statement in his letter 
     dated August 14, 2006, to the Ranking Member of the Committee 
     on Armed Services of the Senate, that ``Naval Station Mayport 
     and the many resources of the Jacksonville area remain 
     vitally important to Navy readiness,'' and support the CNO 
     commitment ``to maintaining the infrastructure necessary to 
     support the strategic dispersal of the Atlantic Fleet at this 
     key east coast port.'' The conferees note that the USS John 
     F. Kennedy (CV-67) has served proudly in defense of freedom 
     around the world, in times of peace and in war in the course 
     of her 38 years of service. She has brought great honor to 
     our Nation, to her namesake, and to the tens of thousands of 
     sailors who ``stood the watch'' on her decks these many 
     years. It is most fitting, therefore, that the Navy plan the 
     decommissioning of the USS John F. Kennedy (CV-67) with 
     ceremony befitting her distinguished history of service to 
     our Nation.
     Sense of Congress on naming the CVN-78 aircraft carrier as 
         the USS Gerald R. Ford (sec. 1012)
       The Senate amendment contained a provision (sec. 1013) that 
     would require that the CVN-78 aircraft carrier shall be named 
     the USS Gerald R. Ford.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express the 
     sense of Congress that the Navy should name the CVN-78 
     aircraft carrier the USS Gerald R. Ford.
     Transfer of naval vessels to foreign nations based upon 
         vessel class (sec. 1013)
       The House bill contained a provision (sec. 1011) that would 
     allow the transfer of a specified number of ships to a 
     particular nation without identification of the specific 
     vessel by hull number or ship name.
       The Senate amendment contained a similar provision (sec. 
     1012).
       The Senate recedes.
     Overhaul, repair, and maintenance of vessels in foreign 
         shipyards (sec. 1014)
       The House bill contained a provision (sec. 1012) that would 
     clarify those commonwealths and possessions that are to be 
     considered as part of the United States for the purposes of 
     naval vessels to include Military Sealift Command vessels. 
     The provision would also extend the limitations on overhaul, 
     repair, and maintenance of vessels in foreign shipyards.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would amend 
     section 7310(a) of title 10, United States Code, to require 
     naval vessels homeported in Guam to be overhauled, repaired, 
     or maintained in a shipyard in the United States or Guam.
     Report on options for future lease arrangement for Guam 
         Shipyard (sec. 1015)
       The House bill contained a provision (sec. 1013) that would 
     require the Secretary of the Navy to submit a report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives on the Guam Shipyard. The provision would 
     also require the Comptroller General to submit an evaluation 
     of the Secretary of Navy's report. The provision would 
     further require the awarding of contracts to the Guam 
     Shipyard in an amount equal to the average amount awarded 
     between fiscal years 1998 and 2006.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delete the 
     requirement for awarding contracts to the Guam Shipyard.
     Assessments of naval vessel construction efficiencies and of 
         effectiveness of special contractor incentives (sec. 
         1016)
       The House bill contained a provision (sec. 1014) that would 
     establish a program to provide grants and loan guarantees to 
     U.S. shipbuilders to make capital investments in their 
     shipbuilding processes and facilities. The provision would 
     also require the Secretary of the Navy to perform annual 
     assessments of the shipbuilding industrial base to determine 
     where and to what extent inefficiencies exist and to what 
     extent innovative design and production technologies, 
     processes, and infrastructure can be developed to alleviate 
     such inefficiencies.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to conduct an assessment of naval vessel 
     construction to determine inefficiencies that exist; 
     innovative design and production technologies, processes, and 
     performance incentives that are warranted to alleviate those 
     inefficiencies; and actions the Secretary intends to take to 
     facilitate adoption by the shipbuilding industry of the 
     technologies, processes, and performance incentives so 
     identified. The amendment would also require the Secretary to 
     conduct an assessment of the effectiveness of the use in 
     naval construction contracts of special incentives for 
     investment by the contractor in facilities and process 
     improvement projects, including a description of the use of 
     such incentives, a description of the process and criteria 
     used for evaluation of and selection among proposed projects, 
     progress in implementing selected projects, plans for 
     applying similar contract incentives in future shipbuilding 
     programs, and recommendations by the Secretary for enactment 
     of legislation that might increase the effectiveness of, or 
     expand the use of, such contract incentives. The amendment 
     would further require that the Secretary submit a report on 
     these assessments to the congressional defense committees not 
     later than April 1, 2007. The conferees direct the Secretary 
     to provide the congressional defense committees with an 
     interim briefing on the findings of the assessments not later 
     than March 1, 2007.
     Obtaining carriage by vessel: criterion regarding overhaul, 
         repair, and maintenance of vessels in the United States 
         (sec. 1017)
       The House bill contained a provision (sec. 1017) that would 
     provide that the Secretary of Defense may not award any 
     contract for the carriage by vessel of cargo for the 
     Department of Defense, unless the contract includes a 
     requirement under which the contractor shall ensure that the 
     overhaul and repair work is done in a shipyard located in the 
     United States or the contractor must report any repair work 
     conducted in a shipyard located outside the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to issue an acquisition policy that establishes as 
     a criterion, required to be considered in obtaining carriage 
     by vessel of cargo for the Department, the extent to which an 
     offeror of such carriage had overhaul, repair, and 
     maintenance work for the offerors' vessels performed in 
     shipyards located in the United States. The amendment would 
     be limited to vessels that are owned, operated, or controlled 
     by the offeror and qualified to engage in the carriage of 
     cargo in the coastwise or non-contiguous trades. Thus, the 
     conferees expect that the Secretary will establish, as an 
     evaluation criterion in the award, the past accomplishment of 
     overhaul, repair, and maintenance work conducted in shipyards 
     located in the United States, similar to other considerations 
     such as cost, schedule, capability to perform the carriage, 
     and other independently weighted factors. The amendment would 
     apply to the carriage of Department cargo, whether the 
     carriage was obtained pursuant to charter or tariff. Further, 
     the amendment would define the term ``United States'' to 
     include any State of the United States and, in addition, 
     Guam.
       The conferees agree that a strong ship repair industrial 
     base is vital to the national security interests of the 
     United States. Accordingly, it is important that the 
     Secretary maintain a current assessment of the Nation's ship 
     repair capabilities and capacity and, consistent with the 
     Secretary's assessment, that the Department assign value to

[[Page 21119]]

     the accomplishment of overhaul, repair, and maintenance work 
     in the United States for the evaluation of offerors' 
     proposals in the awards of contracts to carry Department 
     cargo.
       To guide formulation and implementation of the Secretary's 
     acquisition policy, the Secretary shall conduct an assessment 
     of the ship repair industrial base, to include: (1) a 
     determination of ship repair requirements to support the 
     National Military Strategy; (2) an evaluation of the repair 
     industrial base's critical capabilities, capacity, 
     competitive sourcing, geographical disposition; and (3) other 
     critical factors as measured against the determined 
     requirements. The Secretary shall submit a report on the 
     results of the assessment to the congressional defense 
     committees not later than June 1, 2007.
     Riding gang member requirements (sec. 1018)
       The House bill contained a provision (sec. 1018) that would 
     prohibit the Secretary of Defense from awarding a charter or 
     a contract for carriage of defense cargo unless the charter 
     or contract requires that each riding gang member that 
     performs any work on the vessel during the effective period 
     of the charter or contract holds a merchant mariner's 
     document issued by the United States Coast Guard. The 
     provision would also allow the Secretary to issue regulations 
     to exempt a riding gang member from the above requirement 
     under limited circumstances, and then only if a background 
     check is performed.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would incorporate 
     by reference certain limited provisions contained in section 
     8106 of title 46, United States Code, relating to general 
     restrictions on the use of riding gangs on U.S. documented 
     vessels. The amendment would also clarify, for those vessels 
     carrying defense cargoes, the categories of individuals who 
     may be exempted under regulation from the requirement to hold 
     a merchant mariner's document issued by the United States 
     Coast Guard. These individuals, who will be required to have 
     either a background check or possess a merchant mariner's 
     document, include supercargo personnel, force protection 
     personnel, specialized repair technicians, and other 
     individuals required to be aboard the vessel. The amendment 
     would further make clear that individuals engaged in the 
     general operation or maintenance, whether designated members 
     of the vessel's crew or not, must possess a merchant 
     mariner's document issued by the United States Coast Guard if 
     the vessel is carrying defense cargoes.
     Authority to transfer SS Arthur M. Huddell to the Government 
         of Greece (sec. 1019)
       The Senate amendment contained a provision (sec. 1014) that 
     would authorize the Secretary of Transportation to transfer 
     the ex-Liberty ship SS Arthur M. Huddell, by gift to the 
     government of Greece. The provision would also authorize the 
     Secretary to convey additional equipment from other obsolete 
     vessels of the National Defense Reserve Fleet for purposes of 
     a museum exhibit.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the President to transfer the SS Arthur M. Huddell to the 
     government of Greece, and to convey additional equipment from 
     other obsolete vessels of the National Defense Reserve Fleet, 
     in accordance with such terms and conditions as the President 
     may determine. As a condition of the transfer of the vessel, 
     the President shall require, to the maximum extent 
     practicable, that the government of Greece have such repair 
     or refurbishment of the vessel, as is necessary for the safe 
     transit of the vessel to its ultimate destination, be 
     performed at a shipyard located in the United States.

                  Subtitle C--Counter Drug Activities

     Extension of authority of Department of Defense to provide 
         additional support for counterdrug activities of other 
         governmental agencies (sec. 1021)
       The Senate amendment contained a provision (sec. 1022) that 
     would authorize a 5-year extension in the current authorities 
     of the Department of Defense to assist the counterdrug 
     activities of any other department or agency of the Federal 
     Government or any other State, local, or foreign law 
     enforcement agency through 2011.
       The House bill contained no similar provision.
       The House recedes.
     Extension and expansion of Department of Defense authority to 
         provide support for counter-drug activities of certain 
         foreign governments (sec. 1022)
       The Senate amendment contained a provision (sec. 1023) that 
     would extend and expand certain authorities of the Department 
     of Defense to support the counterdrug activities of other 
     countries. The provision would: (1) extend current 
     authorities for 2 years; (2) add 15 countries that are 
     situated either along key drug smuggling routes or are facing 
     an increasing threat of narco-terrorism to the list of 
     countries eligible for support; (3) expand the types of 
     equipment and supplies that can be provided for counterdrug 
     support to include vehicles, aircraft, and detection and 
     monitoring equipment; and (4) double the funding limit for 
     counterdrug support through fiscal year 2011 from $40.0 
     million to $80.0 million. The provision would also require 
     the Secretary of Defense to seek concurrence of the Secretary 
     of State on matters of counterdrug support to foreign nations 
     and provide a report to designated congressional committees 
     on support provided to each foreign government.
       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) reduce 
     the number of additional countries authorized to receive this 
     support from 15 to 7; (2) reduce the funding limit to $60.0 
     million; (3) authorize, for calendar years 2007 and 2008 
     only, the transfer, to Afghanistan only, of individual and 
     crew-served weapons of 50 caliber or less, and the ammunition 
     for such weapons for counter-narcotics security forces only; 
     and (4) require the Secretary of Defense to consult with, 
     instead of seek the concurrence of, the Secretary of State.
     Extension of authority to support unified counterdrug and 
         counterterrorism campaign in Colombia (sec. 1023)
       The House bill contained a provision (sec. 1023) that would 
     extend the authority to support the unified counterdrug and 
     counterterrorism campaign in Colombia through fiscal year 
     2008, as provided in the Ronald W. Reagan National Defense 
     Authorization Act for Fiscal Year 2005 (Public Law 108-375).
       The Senate amendment contained a similar provision (sec. 
     1021).
       The Senate recedes.
     Continuation of reporting requirement regarding Department of 
         Defense expenditures to support foreign counter drug 
         activities (sec. 1024)
       The House bill contained a provision (sec. 1024) that would 
     extend by 1 year the requirement for the Secretary of Defense 
     to submit a report detailing the expenditure of funds by the 
     Secretary during fiscal year 2006.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would extend the 
     reporting requirement through fiscal year 2007, and require 
     the report to be submitted to the Committee on Foreign 
     Relations of the Senate and the Committee on International 
     Relations of the House of Representatives.
     Report on interagency counter-narcotics plan for Afghanistan 
         and South and Central Asian regions (sec. 1025)
       The House bill contained a provision (sec. 1025) that would 
     require the Secretary of Defense to submit a report to the 
     congressional defense committees on interagency counterdrug 
     implementation plans for Afghanistan and 10 other countries 
     in south and central Asia.
       The Senate amendment contained no similar provision.
       The Senate recedes with amendment that would add Armenia to 
     the list of countries in the report, and clarify other 
     matters included in the report.
     Report on United States support for Operation Bahamas, Turks 
         & Caicos (sec. 1026)
       The Senate amendment contained a provision (sec. 1024) that 
     would require the Secretary of Defense to submit a report to 
     Congress outlining the plan for continued United States 
     Government support to Operation Bahamas, Turks & Caicos not 
     later than 30 days prior to implementing a decision to 
     withdraw Department of Defense helicopters from this 
     counterdrug program.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

         Subtitle D--Force Structure and Defense Policy Matters

     Improvements to Quadrennial Defense Review (sec. 1031)
       The Senate amendment contained a provision (sec. 1083) that 
     would amend section 118 of title 10, United States Code, to 
     require: (1) analysis and recommendations in the Quadrennial 
     Defense Review (QDR) that are not constrained to comply with 
     the President's budget submission; (2) an identification of 
     specific capabilities, including the general number and type 
     of specific military platforms required to achieve strategic 
     and warfighting objectives; (3) an independent assessment of 
     the QDR and the submission of the results of the assessment 
     to Congress; and (4) a more comprehensive risk assessment 
     from the Chairman of the Joint Chiefs of Staff (CJCS) that 
     describes the additional capabilities needed to reduce the 
     risks identified in the CJCS risk assessment.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     appointment process for the independent panel, and expand the 
     scope of the review to include an assessment of the homeland 
     defense and support to civil authorities missions of the 
     active and reserve components of the armed forces, including 
     the organizations and capabilities required for the active 
     and reserve components to discharge their missions. The 
     latter was included as a separate provision in the Senate 
     amendment (sec. 925).

[[Page 21120]]


     Quarterly reports on implementation of 2006 Quadrennial 
         Defense Review Report (sec. 1032)
       The House bill contained a provision (sec. 1035) that would 
     require the Secretary of Defense to submit a quarterly report 
     on the implementation of recommendations described in the 
     2006 Quadrennial Defense Review Report. The first report 
     shall be submitted not later than January 31, 2007.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report on feasibility of establishing a regional combatant 
         command for Africa (sec. 1033)
       The Senate amendment contained a provision (sec. 1070C) 
     that would require the Secretary of Defense to submit a 
     report to the congressional defense committees, not later 
     than 180 days after the date of the enactment of this Act, on 
     the feasibility and advisability of establishing a regional 
     combatant command for Africa.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Determination of Department of Defense intratheater and 
         intertheater airlift requirements and sealift mobility 
         requirements (sec. 1034)
       The House bill contained a provision (sec. 1043) that would 
     require the Secretary of Defense to submit a report to the 
     congressional defense committees not later than February 1, 
     2007, on the intratheater and intertheater airlift and 
     sealift mobility requirements.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Presidential report on improving interagency support for 
         United States 21st century national security missions and 
         interagency operations in support of stability, security, 
         transition, and reconstruction operations (sec. 1035)
       The House bill contained a provision (sec. 1034) that would 
     require the President to submit a report to Congress on 
     building interagency capacity and enhancing the integration 
     of civilian and military capabilities to achieve U.S. 
     national security goals and objectives. The report should 
     include recommendations for specific legislative proposals to 
     improve interagency coordination.
       The Senate amendment contained a similar provision (sec. 
     1222) that would require the President to develop a plan to 
     establish interagency operating procedures for Federal 
     agencies to plan and conduct stabilization and reconstruction 
     operations.
       The Senate recedes with an amendment that would delete the 
     sense of Congress, and merge the two provisions into a single 
     report. The amendment would also make other clarifying 
     changes.
       The conferees recognize that the United States faces a more 
     diverse set of national security challenges than those faced 
     during the Cold War, and that the major national security 
     institutions designed for the Cold War lack adequate capacity 
     to address the security challenges of the 21st century. Since 
     2002, the administration has developed several strategy 
     documents that set forth broad U.S. national security goals 
     and objectives to address new and emerging security 
     challenges. The administration has also taken initial steps 
     to institutionalize lessons learned since the September 11, 
     2001, terrorist attacks on the United States, including the 
     establishment of the Department of Homeland Security, the 
     U.S. Northern Command, and the Office of Reconstruction and 
     Stabilization, as well as the creation of the positions of 
     the Assistant Secretary of Defense for Homeland Defense, the 
     Under Secretary of Defense for Intelligence, and the Director 
     of National Intelligence.
       The conferees believe that the executive branch and 
     Congress must take additional steps to lay the foundation and 
     strengthen Federal institutions to ensure that interagency 
     structures, policies, and processes support integrated 
     planning and unified action in response to 21st century 
     national security challenges. The conferees also believe that 
     the United States Government should bring to bear all 
     elements of national power to achieve its national security 
     objectives. This will require strengthening the capacity of 
     Federal departments and agencies to conduct interagency 
     operations. In developing the required report, the conferees 
     urge the executive branch to consult with State and local 
     agencies, and other national security experts, as 
     appropriate, on the types of interagency capabilities that 
     the Federal Government should develop to address current and 
     future security challenges. The report required by this 
     section will provide the Congress with a baseline assessment 
     of the capacities and capabilities of the Federal departments 
     and agencies to carry out the full range of national security 
     missions. The conferees intend to use this information in 
     helping to develop and implement strategies that will improve 
     the ability of the Federal departments and agencies to 
     participate, as appropriate, in the full range of national 
     security missions.
       Further, the conferees note that United States Government 
     lacks a standard, integrated approach to the planning and 
     conduct of interagency operations. The conferees express the 
     view that: (1) the President should provide clear guidance to 
     United States Government agencies to manage complex 
     operations and establish a standard, integrated approach to 
     the planning and conduct of interagency operations to ensure 
     a coherent and unified United States Government response to 
     contingency operations; (2) civilian agencies of the United 
     States Government should expand their capacity to 
     participate, as appropriate, in national security missions 
     and, more specifically, to plan, coordinate, and conduct 
     stability, security, transition, and reconstruction 
     operations, including their capacity to deploy rapidly, and 
     for sustained periods of time, trained personnel to support 
     such operations in the field; and (3) all the relevant United 
     States Government agencies should include in their budget 
     requests for future fiscal years adequate funding for 
     planning and preparing to support contingency operations and, 
     as necessary, request emergency supplemental funds for 
     unanticipated contingency operations.

                          Subtitle E--Reports

     Additional element in annual report on chemical and 
         biological warfare defense (sec. 1041)
       The Senate amendment contained a provision (sec. 1063) that 
     would direct the Department of Defense to include a new 
     element in the annual report on the Department's chemical and 
     biological defense program, as required by section 1703 of 
     the National Defense Authorization Act for Fiscal Year 1994 
     (Public Law 103-160). The new element would be a description 
     of the coordination and integration of the Defense Advanced 
     Research Projects Agency (DARPA) research and development 
     efforts on chemical and biological warfare defense with the 
     Department's chemical and biological defense program, 
     including the degree to which the DARPA program supports the 
     objectives and requirements of the overall program, and the 
     means by which the Department determines the level of 
     coordination and support provided by DARPA to the 
     Department's overall program.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Report on biodefense human capital requirements in support of 
         biosafety laboratories (sec. 1042)
       The Senate amendment contained a provision (sec. 1070) that 
     would require the Secretary of Defense to study and report to 
     Congress on the requirements for personnel and training at 
     current and planned national biodefense laboratories at 
     Biosafety Levels 3 and 4, including the number of personnel, 
     by discipline, and the training required to provide qualified 
     personnel for such laboratories.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     report to Department of Defense personnel and training 
     requirements, and expand the elements of the report to 
     include recruitment and retention plans.
     Report on technologies for neutralizing or defeating threats 
         to military rotary-wing aircraft from portable air 
         defense systems and rocket-propelled grenades (sec. 1043)
       The Senate amendment contained a provision (sec. 1068) that 
     would require the Secretary of Defense to submit a report to 
     Congress, not later than 180 days after the date of the 
     enactment of this Act, on technologies for neutralizing or 
     defeating threats to military rotary-wing aircraft from 
     portable air defense systems and rocket-propelled grenades 
     that are being researched, developed, employed, or considered 
     by the United States Government or the North Atlantic Treaty 
     Organization.
       The House bill contained no similar provision.
       The House recedes with a technical amendment. The conferees 
     expect the Secretary to submit a thorough classified report 
     that includes technologies developed under classified 
     programs.
     Reports on expanded use of unmanned aerial vehicles in the 
         National Airspace System (sec. 1044)
       The Senate amendment contained a provision (sec. 1070D) 
     that would make certain findings regarding the operational 
     reliability of unmanned systems in support of national 
     security missions and the potential for unmanned systems in 
     support of border security and homeland defense missions. The 
     provision would require the Secretary of Defense to report to 
     Congress on efforts to support the Federal Aviation 
     Administration (FAA) in the development of a policy on the 
     testing and operation of unmanned vehicles in the National 
     Airspace System.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     reporting requirement for the Department of Defense, and 
     would require the FAA to submit a report on progress in 
     developing a policy for testing and a plan for achieving 
     wider access by unmanned aerial vehicles that are 
     appropriately equipped to operate in the National Airspace 
     System.

[[Page 21121]]


     Report on incentives to encourage certain members and former 
         members of the armed forces to serve in the Bureau of 
         Customs and Border Protection (sec. 1045)
       The Senate amendment contained a provision (sec. 1066) that 
     would require, not later than 60 days after the date of the 
     enactment of this Act, the Secretary of Homeland Security and 
     the Secretary of Defense to jointly submit to Congress a 
     report assessing the desirability and feasibility of offering 
     incentives to members of the reserve components of the armed 
     forces and former members of the armed forces within 2 years 
     of separation from service to encourage such persons to serve 
     in the Bureau of Customs and Border Protection of the 
     Department of Homeland Security. For the purposes of the 
     report, the Secretary of Homeland Security and the Secretary 
     of Defense would consider such incentives as the Secretaries 
     jointly consider appropriate, including whether or not such 
     incentives are monetary, and whether or not such incentives 
     are currently authorized by law or regulations. The provision 
     would require that the Secretaries give particular attention 
     to the utility of such incentives in encouraging service by 
     members and former members of the armed forces who provided 
     border patrol or border security assistance as part of their 
     duties as members of the armed forces, and leveraging 
     military training and experience by accelerating training, or 
     allowing credit to be applied to related areas of training, 
     which is required for service with the Bureau of Customs and 
     Border Protection. The provision would require that in 
     assessing the incentives the Secretaries assume that any 
     costs of such incentives would be borne by the Department of 
     Homeland Security.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Repeal of certain report requirements (sec. 1046)
       The House bill contained a provision (sec. 661) that would 
     repeal the requirement for an annual report under section 
     1015 of title 37, United States Code, regarding the effects 
     of certain recruitment and retention initiatives taken in 
     fiscal year 2000.
       The Senate amendment contained a provision (sec. 1065) that 
     would repeal the requirement not only for the foregoing 
     report under section 1015, but also for: (1) the annual 
     report on aviation career incentive pay under section 301a of 
     title 37, United States Code; (2) the report of the Secretary 
     of Defense's recommendation on the need for Department of 
     Defense review of proposed federal agency actions to consider 
     possible impact on national defense; (3) the report on a 
     pilot program to enhance military recruiting by improving 
     military awareness of school counselors and educators; (4) 
     the annual report on the activities of the Medical 
     Informatics Advisory Committee and on coordination of 
     informatics systems within the Federal Government; and (5) 
     the reporting requirement associated with changes made by 
     service academies in the amount of authorized charges or 
     fees.
       The House recedes with an amendment that would delete the 
     provision regarding repeal of the report on imposition of 
     additional charges or fees for attendance at certain 
     academies.
     Requirement for identification of recently enacted recurring 
         reporting requirements applicable to the Department of 
         Defense (sec. 1047)
       The Senate amendment contained a provision (sec. 1067) that 
     would require the Secretary of Defense to submit to the 
     congressional defense committees, not later than March 1, 
     2007, a report on recurring reports that are required to be 
     submitted, by the Department of Defense or any element 
     thereof, to those committees by any provision of law enacted 
     on or after the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136). 
     The provision would require that the Secretary describe each 
     such report, assess its utility from the perspective of the 
     Department, and give a recommendation as to the advisability 
     of repealing the requirement for its submission.
       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) limit 
     the reports covered by the provision to those enacted on or 
     after the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2004 and before February 1, 
     2007; (2) require the Secretary to include an assessment of 
     the burden imposed on the Department (or an element thereof) 
     by the preparation of the report; and (3) require the 
     Secretary to submit his recommendations as to the 
     modification, as well as the repeal, of individual reports.

 Subtitle F--Miscellaneous Authorities and Limitations on Availability 
                            and Use of Funds

     Acceptance and retention of reimbursement from non-Federal 
         sources to defray Department of Defense costs of 
         conferences (sec. 1051)
       The Senate amendment contained a provision (sec. 1051) that 
     would authorize the Department of Defense to accept and 
     retain reimbursement from non-Federal sources for its 
     conference costs. The provision would further require the 
     Secretary of Defense to report to the congressional defense 
     committees on the use of the authority granted by this 
     provision.
       The House bill contained no similar provision.
       The House recedes with a technical amendment that would 
     clarify that fees collected in excess of conference costs 
     shall be deposited into the Treasury as miscellaneous 
     receipts.
     Increased flexibility in use of funds for Joint Staff 
         exercises (sec. 1052)
       The Senate amendment contained a provision (sec. 1053) that 
     would increase the flexibility of the Chairman of the Joint 
     Chiefs of Staff to use funds earmarked for the Chairman's 
     joint exercise program to be available for expenses relating 
     to self-deploying watercraft under the jurisdiction of a 
     military department; port support activities; prepositioned 
     watercraft; and lighterage for joint logistics and over the 
     shore exercises.
       The House bill contained no similar provision.
       The House recedes.
     Prohibition on parking of funds (sec. 1053)
       The Senate amendment contained a provision (sec. 1007) that 
     would prohibit any officer or employee of the Department of 
     Defense from directing the allocation of funds in the 
     President's budget or supporting documents with the knowledge 
     or intent that the funds would not be used for the purpose 
     for which they are allocated. A violation of this prohibition 
     would be subject to the same penalties as a violation of the 
     Anti-Deficiency Act, as codified in section 1341 of title 31, 
     United States Code.
       The House bill contained no similar provision.
       The House recedes.
     Modification of authorities relating to the Special Inspector 
         General for Iraq Reconstruction (sec. 1054)
       The Senate amendment contained a provision (sec. 1054) that 
     would expand the authority of the Special Inspector General 
     for Iraq Reconstruction (SIGIR) by considering any funds 
     appropriated or made available in the Emergency Supplemental 
     Appropriations Act for Defense, the Global War on Terror, and 
     Hurricane Recovery, 2006 (Public Law 109-234) for relief and 
     reconstruction in Iraq as part of the Iraqi Relief and 
     Reconstruction Fund (IRRF), and under the jurisdiction of the 
     SIGIR, regardless of the source of the funds.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     the additional SIGIR jurisdiction is limited to U.S. funds 
     and would provide a sunset date of October 1, 2007, for the 
     Office of the SIGIR, with transition operations authorized to 
     continue through December 31, 2007.
       The conferees support the comprehensive audit efforts of 
     the SIGIR and believe the office continues to perform a 
     critical function as long as significant resources flow to 
     Iraq reconstruction and until a transition plan is in place 
     to return to regular order. The conferees direct the SIGIR, 
     jointly with the Inspectors General of the Departments of 
     State and Defense and the Inspector General of the U.S. 
     Agency for International Development (USAID), to develop and 
     submit such a transition plan to Congress by April 1, 2007. 
     The plan should ensure maintenance and accountability of all 
     accumulated records and minimal, if any, disruption in the 
     ability to oversee reconstruction funding or other U.S. 
     assistance to Iraq. The plan should include a process and 
     time line for transfer of open audits and investigations to 
     the appropriate Departments of Defense, State or USAID office 
     and should consider various contingency scenarios which may 
     impact the transition time line. The conferees recognize that 
     a significant change in the assumptions underlying this 
     provision, such as a major new commitment of U.S. funds for 
     Iraq reconstruction, would require changes to the transition 
     plan and time line.

                Subtitle G--Matters Involving Detainees

     Provision of information to Congress on certain criminal 
         investigations and prosecutions involving detainees (sec. 
         1061)
       The House bill contained a provision (sec. 1039) that would 
     amend subsection (c) of section 1093 of the Ronald W. Reagan 
     National Defense Authorization Act for Fiscal Year 2005 
     (Public Law 108-375) to expand the reporting requirements to 
     include: (1) a detailed and comprehensive description of 
     investigations or prosecutions and any resulting punishments; 
     and (2) information about any officer nominated for command 
     or for promotion to a position requiring the advice and 
     consent of the Senate who has been the subject of any 
     investigation or prosecution regarding the treatment of 
     detainees.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delete the 
     requirement to provide information on any officer nominated 
     to a position subject to confirmation by the Senate. The 
     amendment would also require that the information on a member 
     of the United States Armed Forces being investigated or 
     prosecuted for allegations of mistreatment of detainees 
     include the grade of the service member at: (1) the time of 
     the incident resulting in the investigation or the 
     prosecution; (2) the beginning of the investigation or

[[Page 21122]]

     the prosecution; and (3) the time of the submission of the 
     report.

                       Subtitle H--Other Matters

     Technical and clerical amendments (sec. 1071)
       The House bill contained a provision (sec. 1037) that would 
     make technical and clerical amendments to various provisions 
     of law.
       The Senate amendment contained a similar provision (sec. 
     1073).
       The Senate recedes with an amendment that would incorporate 
     the provisions of section 1073, and would make certain 
     additional technical and clerical amendments.
     Revision to authorities relating to Commission on the 
         Implementation of the New Strategic Posture of the United 
         States (sec. 1072)
       The House bill contained a provision (sec. 1031) that would 
     expand the scope of the commission on the implementation of 
     the New Strategic Posture of the United States, as required 
     in section 1051 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163), to examine the 
     strategic posture of the United States through 2025, and 
     extend the mandate of the commission until 18 months after 
     the date of the commission's first meeting.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would extend the 
     due date for the commission's report until September 30, 
     2007, but not expand the scope of the study beyond 2008.
     Revised deadline for submission of final report of EMP 
         Commission (sec. 1073)
       The House bill contained a provision (sec. 1040) that would 
     direct the Electromagnetic Pulse (EMP) Attack Commission, 
     reestablished by section 1042 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163) 
     to change its final report date from June 30, 2007, to 18 
     months after commencement of commission activities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would change the 
     final report date from June 30, 2007, to September 30, 2007.
     Extension of returning worker exemption to H-2B numerical 
         limitation (sec. 1074)
       The Senate amendment contained a provision (sec. 1091) that 
     would amend section 402(b)(1) of the Save Our Small and 
     Seasonal Businesses Act of 2005 (8 U.S.C. 1184 note) to 
     extend a returning worker program by 2 years, from October 1, 
     2006, to October 1, 2008.
       The House bill contained no similar provision.
       The House recedes with an amendment that would amend 
     section 214(g)(9) of the Immigration and Nationality Act to 
     extend the program by 1 year, to October 1, 2007, and to 
     repeal a prior sunset provision. The amendment is effective 
     on October 1, 2006.
     Patent term extensions for the badges of the American Legion, 
         the American Legion Women's Auxiliary, and the Sons of 
         the American Legion (sec. 1075)
       The Senate amendment contained a provision (sec. 1094) that 
     would renew and extend for a term of 14 years the design 
     patents for the badges of the American Legion, the American 
     Legion Women's Auxiliary, and the Sons of the American 
     Legion.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Use of the Armed Forces in major public emergencies (sec. 
         1076)
       The Senate amendment contained a provision (sec. 1042) that 
     would amend chapter 15 of title 10, United States Code, the 
     so-called ``Insurrection Act,'' to clarify and update the 
     statute, and to make corresponding changes to other 
     provisions of law. Chapter 15 contains a collection of 
     statutes dating to the 18th and 19th centuries that authorize 
     the use of the armed forces to put down insurrections, 
     enforce Federal authority, and suppress conspiracies that 
     interfere with the enforcement of Federal or State law.
       The provision would amend section 333 of title 10, United 
     States Code, to authorize the President, in any situation in 
     which he determined that, as a result of a natural disaster, 
     terrorist attack or incident, epidemic or other serious 
     public health emergency, or other condition, domestic 
     violence occurred to such an extent that the constituted 
     authorities of the State are incapable of maintaining public 
     order, and the violence obstructed the execution of the laws 
     of the United States or impeded the course of justice 
     thereunder, to use the armed forces, including the National 
     Guard in Federal service, to restore public order and enforce 
     the laws of the United States until the State authorities are 
     again capable of maintaining order. The President is to 
     notify Congress of his determination to exercise this 
     authority as soon as possible and every 15 days thereafter as 
     long as the authority is exercised.
       The provision would also amend chapter 152 of title 10, 
     United States Code, to authorize the President, in any 
     situation in which he determines to exercise the authority 
     set out above, to direct the Secretary of Defense to provide 
     supplies, services, and equipment necessary for the immediate 
     preservation of life and property. Such supplies, services, 
     and equipment may be provided: (1) only to the extent that 
     the constituted authorities of the State are unable to 
     provide them; (2) only until other departments and agencies 
     of the United States charged with such responsibilities are 
     able to provide them; and (3) only to the extent that their 
     provision will not interfere with preparedness or ongoing 
     operations. This authority is not subject to the provisions 
     of section 403(c) of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5170b(c)).
       The provision would further include a conforming amendment 
     to section 12304(c) of title 10, United States Code, to 
     remove a restriction on the use of the Presidential Selected 
     Reserve callup authority in chapter 15 or natural disaster 
     situations.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     conforming amendment to section 12304(c) to provide that the 
     Presidential Selected Reserve callup authority could be used 
     in situations arising under chapter 15 and section 12406 of 
     title 10, United States Code, as well as in situations set 
     out in subsection (b) of section 12304.
     Increased hunting and fishing opportunities for members of 
         the Armed Forces, retired members, and disabled veterans 
         (sec. 1077)
       The House bill contained a provision (sec. 1036) that would 
     require the Secretary of Defense to ensure that service 
     members, military retirees, disabled veterans, and persons 
     assisting disabled veterans are able to utilize lands under 
     the jurisdiction of the Department of Defense that are 
     available for hunting and fishing. The provision would also 
     require the Secretary of Defense to submit a report to 
     Congress, not later than 180 days after the date of the 
     enactment of this Act, on actions necessary to increase the 
     availability of lands under the jurisdiction of the 
     Department to such persons for hunting and fishing 
     activities. The provision would further require the Secretary 
     of the Interior to cease the plan to exterminate deer and elk 
     on Santa Rosa Island, California by helicopter, and prohibit 
     the Secretary of the Interior from exterminating or nearly 
     exterminating the deer and elk on the island.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees note that the Wounded Warrior Project, an 
     organization whose mission is to raise public awareness and 
     enlist the public's aid for the needs of severely injured 
     service members, supports this provision.

                   Legislative Provision Not Adopted

     Sense of the Senate on the Transformational Medical 
         Technology Initiative
       The Senate amendment contained a provision (sec. 763) that 
     would express the sense of the Senate that the 
     Transformational Medical Technology Initiative (TMTI) is an 
     important effort to provide needed capability within the 
     Department of Defense to field effective broad-spectrum 
     countermeasures against a significant array of current and 
     future biological warfare threats.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note the following: (1) the 2006 Quadrennial 
     Defense Review Report identified the need to develop broad-
     spectrum medical countermeasures against the threat of 
     genetically engineered bioterror agents; (2) the TMTI 
     initiative is intended to invest in cutting edge 
     transformational medical technologies and apply them to 
     address the challenges of known, emerging, and future 
     bioengineered threats; and (3) the TMTI is designed to 
     provide such technologies in a much shorter timeframe, and at 
     lower cost, than is required with traditional biomedical 
     approaches. The conferees further emphasize the need for 
     innovative technological approaches to achieve broad-spectrum 
     medical countermeasures as a necessary component of the 
     Department's program to provide chemical and biological 
     defense and force protection capabilities to the armed 
     forces.
     Incorporation of classified annex
       The Senate amendment contained a provision (sec. 1008) that 
     would incorporate a classified annex.
       The House bill contained no similar provision.
       The Senate recedes.
     Reports to Congress and notice to public on earmarks in funds 
         available to the Department of Defense
       The Senate amendment contained a provision (sec. 1009) that 
     would require notice to Congress and the public on earmarks 
     of funds available to the Department of Defense.
       The House bill contained no similar provision.
       The Senate recedes.
     Transfer of operational control of certain Patrol Coastal 
         ships to Coast Guard
       The House bill contained a provision (sec. 1015) that would 
     require the Secretary of the Navy to enter into an agreement 
     with the Commandant of the Coast Guard for the transfer of 
     operational control of not less than five 179 foot Cyclone 
     class Patrol Coastal ships for a period extending at least 
     through September 30, 2012.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees are aware that Cyclone class Patrol Coastal 
     ships have proven to be extremely valuable to both the Navy 
     and the

[[Page 21123]]

     Coast Guard in the performance of their respective missions 
     of Homeland defense and the global war on terror. The 
     conferees agree that the assignment of the Patrol Coastal 
     ships to the Navy and the Coast Guard must reflect a joint 
     prioritization of the respective mission requirements, 
     including an assessment of alternatives to fulfill those 
     requirements. Accordingly, the conferees direct the Secretary 
     of the Navy, in consultation with the Secretary of the 
     department in which the Coast Guard is operating, to submit a 
     report to Congress, not later than March 30, 2007. The report 
     shall:
       (1) identify validated mission requirements for both Coast 
     Guard patrol boats and Navy Patrol Coastal ships through 
     2012;
       (2) identify a specific program plan, including 
     alternatives to meet Coast Guard Deepwater patrol boat 
     requirements through 2012;
       (3) identify a specific program plan, including 
     alternatives to meet Navy Patrol Coastal ship requirements 
     through 2012;
       (4) describe the impact to Navy operational requirements if 
     the Patrol Coastal ships currently being operated by the 
     Coast Guard remain with the Coast Guard to support the Coast 
     Guard mission; and (5) identify areas of overlap between the 
     Coast Guard's patrol boat requirements and the Navy's Patrol 
     Coastal ship requirements in terms of logistics, operations, 
     and maintenance.
     Limitation on leasing of foreign-built vessels
       The House bill contained a provision (sec. 1016) that would 
     amend section 2401 of title 10, United States Code, to 
     prohibit the Secretary of a military department from entering 
     into a contract for lease or charter of a vessel for a term 
     of more than 24 months, including all options to renew or 
     extend the contract, if the hull or superstructure of that 
     vessel was constructed in a foreign shipyard.
       The Senate amendment contained no similar provision.
       The House recedes.
     Restatement in title 10, United States Code, and revision of 
         Department of Defense authority to provide for support 
         for counterdrug activities of Federal, State, local, and 
         foreign law enforcement
       The House bill contained a provision (sec. 1021) that would 
     codify Department of Defense authority to provide for support 
     for counterdrug activities of Federal, state, local, and 
     foreign law enforcement.
       The Senate amendment contained no similar provision.
       The House recedes.
     Restatement in title 10, United States Code, and revision of 
         Department of Defense authority to provide for support 
         for counterdrug activities of certain foreign governments
       The House bill contained a provision (sec. 1022) that would 
     codify and expand the Department of Defense authority to 
     provide support for counterdrug activities of certain foreign 
     governments. The provision would: (1) add six additional 
     countries to the list of countries authorized to receive this 
     support; (2) allow for the transfer of individual and crew-
     sized weapons of 50 caliber or less to Afghanistan in fiscal 
     years 2007 and 2008; (3) provide ammunition for the weapons 
     provided to Afghanistan; and (4) limit the total amount of 
     funding available to be obligated and expended to $60.0 
     million in fiscal years 2007 and 2008.
       The Senate amendment contained no similar provision.
       The House recedes.
     Assignment of members of the Armed Forces to assist Bureau of 
         Customs and Border Protection and United States 
         Immigration and Customs Enforcement
       The House bill contained a provision (sec. 1026) that would 
     authorize the Secretary of Defense to assign members of the 
     Armed Forces to assist the Bureau of Customs and Border 
     Protection and the United States Immigration and Customs 
     Enforcement with their homeland security missions.
       The Senate amendment contained no similar provision.
       The House recedes.
     Funding for a certain intelligence program
       The Senate amendment contained a provision (sec. 1036) that 
     would: (1) increase by $450.0 million in Research, 
     Development, Test, and Evaluation, Defense-wide and (2) 
     decrease by $450.0 million in PE 0305159 for a classified 
     program described on page 34 of Volume VII (Compartmented 
     Annex) of the Fiscal Year 2007 Military Intelligence Program 
     justification book.
       The House bill contained no similar provision.
       The Senate recedes.
     Department of Defense operational plans for Armed Forces 
         support for civil authorities
       The House bill contained a provision (sec. 1044) that would 
     require the Secretary of Defense, in coordination with the 
     Secretary of Homeland Security and State governments, to 
     develop detailed operational plans regarding the use of the 
     Armed Forces to support to civil authorities.
       The Senate amendment contained no similar provision.
       The House recedes.
     Temporary National Guard support for securing the southern 
         land border of the United States
       The Senate amendment contained a provision (sec. 1044) that 
     would authorize the Governor of a State, with the approval of 
     the Secretary of Defense, to order any units or personnel of 
     the National Guard of such State to annual training duty or 
     other duty under section 502 of title 32, United States Code, 
     to carry out in any State along the southern land border of 
     the United States specified activities for the purpose of 
     securing the border.
       The House bill contained no similar provision.
       The Senate recedes.
     Minimum annual purchase amounts for airlift from carriers 
         participating in the Civil Reserve Air Fleet
       The Senate amendment contained a provision (sec. 1052) that 
     would allow the Department of Defense to guarantee higher 
     minimum levels of business to U.S. Civil Reserve Air Fleet 
     carriers than are currently authorized by law.
       The House bill contained no similar provision.
       The Senate recedes.
     Report on clarification of prohibition on cruel, inhuman, and 
         degrading treatment or punishment
       The Senate amendment contained a provision (sec. 1061) that 
     would require the President of the United States to submit a 
     report to the congressional defense committees that sets 
     forth unclassified legal opinions on whether certain 
     interrogation techniques constitute cruel, inhuman, or 
     degrading treatment, or punishment, as defined in the 
     Detainee Treatment Act of 2005 (Public Law 109-63), not later 
     than 90 days after the date of the enactment of this Act. The 
     provision would require that the legal opinions be 
     disseminated to all departments and agencies of the Federal 
     Government.
       The House bill contained no similar amendment.
       The Senate recedes.
     Reports on Department of Justice efforts to investigate and 
         prosecute cases of contracting abuse in Iraq, 
         Afghanistan, and throughout the war on terror
       The Senate amendment contained a provision (sec. 1069) that 
     would require the Attorney General to submit semiannual 
     reports to the congressional defense committees and other 
     relevant committees on Department of Justice efforts to 
     investigate and prosecute cases of contracting abuse in Iraq, 
     Afghanistan, and throughout the war on terror. Each report 
     would be required to include: (1) a description of organized 
     efforts of the Department to address such cases; (2) 
     information on the specific number of personnel, financial 
     resources, and workdays devoted; (3) a detailed description 
     of any internal task force; (4) a detailed description of any 
     interagency task force; (5) the names of senior officials 
     directly responsible for oversight; (6) specific information 
     on the numbers of investigators and other personnel working 
     on these cases; (7) specific information on the number of 
     investigations, including grand jury investigations, 
     underway; (8) specific information on the number and status 
     of criminal cases; (9) specific information on the number and 
     status of civil cases; (10) Specific information on resolved 
     civil and criminal cases on the issue; and (11) the 
     Department's best estimate of the scale of the problem.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees direct the Attorney General to provide the 
     relevant congressional committees, by no later than 6 months 
     after the date of the enactment of this Act, a written 
     assessment of the level of resources dedicated by the 
     Department to the investigation and prosecution of alleged 
     fraud cases arising out of contracting abuses in Iraq, 
     Afghanistan, and the global war on terrorism.
     National Foreign Language Coordination Council
       The Senate amendment contained a provision (sec. 1081) that 
     would establish a National Foreign Language Coordination 
     Council to develop and monitor the implementation of a 
     comprehensive national foreign language strategy.
       The House bill contained no similar provision.
       The Senate recedes.
     Court security improvements
       The Senate amendment contained a provision (sec. 1086) that 
     would amend title 28, United States Code, to ensure 
     consultation between the United States Marshals Service and 
     the Judicial Conference of the United States on security 
     requirements for the judicial branch of the United States 
     Government; amend the Ethics in Government Act to expand 
     protections for certain reports; establish a new federal 
     criminal offense prohibiting retaliating against a federal 
     judge or law enforcement officer by filing false liens or 
     encumbrances against his property; establish a new federal 
     criminal offense of misuse of certain personal information 
     about judges, law enforcement officials, jurors, witnesses, 
     or court officers; authorize grants to State and local 
     government for witness protection programs; and expand the 
     eligibility of State courts for certain federal grants.

[[Page 21124]]

       The House bill contained no similar provision.
       The Senate recedes.
     Improved accountability for competitive contracting in 
         hurricane recovery
       The Senate amendment contained a provision (sec. 1088) that 
     would prohibit the use of certain exceptions (including the 
     urgent and compelling exception) to competition requirements 
     under the Competition in Contracting Act in connection with 
     relief and recovery efforts related to Hurricane Katrina and 
     the other hurricanes of the 2005 season.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees recognize that the urgent and compelling 
     exception to competition requirements under the Competition 
     in Contracting Act (codified in 10 U.S.C. 2304(c)(2) and 
     section 303(c)(2) of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253(c)(2)) is vulnerable to 
     abuse in response to natural disasters, including hurricanes. 
     The conferees are aware of cases in which sole-source 
     contracts have been awarded on the basis of the urgent and 
     compelling exception months after a natural disaster takes 
     place. In other cases, urgent and compelling circumstances 
     arising out of a natural disaster have been used as the basis 
     for long-term, sole-source contracts that extend beyond what 
     can be justified on the basis of the disaster.
       The potential for such problems is not unique to relief and 
     recovery efforts related to Hurricane Katrina or to natural 
     disasters. The conferees believe that this issue should be 
     addressed in a systematic matter through the Federal 
     Acquisition Regulation and other procurement guidance 
     documents, rather than through legislation limited to a 
     specific set of contracts.
       As a general rule, the urgent and compelling exception 
     should be used to award a contract only on the basis of an 
     event, or series of events, that is reasonably proximate in 
     time to the event, or series of events, justifying the award. 
     In addition, the term of a contract awarded on the basis of 
     the urgent and compelling exception should not ordinarily 
     exceed the period of time the agency reasonably believes to 
     be necessary to award a follow-on competitive contract.
       The conferees direct the Secretary of Defense to: (1) issue 
     guidance clarifying the appropriate use of the urgent and 
     compelling exception to the Competition in Contracting Act 
     for the Department of Defense; and (2) work with the 
     Administrator for Federal Procurement Policy to issue 
     appropriate regulations addressing the issue on a government-
     wide basis.
     Protection of certain disclosures of information by Federal 
         employees
       The Senate amendment contained a provision (sec. 1089) that 
     would amend title 5, United States Code, to expand the 
     protections afforded to Federal employees who disclose 
     information evidencing violations of law; waste, 
     mismanagement, or abuse of authority; threats to public 
     health or safety; or certain false statements to Congress; 
     and to make conforming amendments to other provisions of law.
       The House bill contained no similar provision.
       The Senate recedes.
     Sense of Congress regarding the men and women of the Armed 
         Forces of the United States in Iraq
       The Senate amendment contained a provision (sec. 1090) that 
     would express the sense of Congress that commends the men and 
     women of the Armed Forces of the United States in Iraq for 
     their commitment and determination to win the global war on 
     terrorism and expresses gratitude to the families of the men 
     and women of the Armed Forces of the United States.
       The House bill contained no similar provision.
       The Senate recedes.
     Limitation on United States share of assessments for United 
         Nations peacekeeping operations
       The Senate amendment contained a provision (sec. 1092) that 
     would permit the United States to pay United Nations (UN) 
     assessments for peacekeeping at the rate assessed by the UN 
     up to a limit of 27.1 percent.
       The House bill contained no similar provision.
       The Senate recedes.
     Termination of program
       The Senate amendment contained a provision (sec. 1093) that 
     would establish an immediate sunset date for the Small 
     Business Competitive Demonstration Program.
       The House bill contained no similar provision.
       The Senate recedes.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

                     Legislative Provisions Adopted

     Accrual of annual leave for members of the uniformed services 
         performing dual employment (sec. 1101)
       The House bill contained a provision (sec. 1103) that would 
     authorize service members who are on terminal leave and who 
     are eligible to earn leave due to their status as a federal 
     employee to accrue such leave with pay in accordance with 
     section 6303(a) of title V for a retired member of a 
     uniformed service.
       The Senate amendment contained a similar provision (sec. 
     1101).
       The Senate recedes.
     Strategy for improving the senior management, functional, and 
         technical workforce of the Department of Defense (sec. 
         1102)
       The Senate amendment contained a provision (sec. 1102) that 
     would require the Secretary of Defense to develop a strategic 
     plan to shape and improve the senior management, functional, 
     and technical workforce of the Department, as part of the 
     Strategic Human Capital Plan required by section 1122 of the 
     National Defense Authorization Act for Fiscal year 2006 
     (Public Law 109-163).
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Three-year extension of authority for experimental personnel 
         management program for scientific and technical personnel 
         (sec. 1103)
       The Senate amendment contained a provision (sec. 1105) that 
     would extend until September 30, 2011, the authority for the 
     Defense Advanced Research Projects Agency experimental 
     personnel management program for technical personnel, 
     authorized in section 1101(e) of the Strom Thurmond National 
     Defense Authorization Act for Fiscal Year 1999 (Public Law 
     105-261).
       The House bill contained no similar amendment.
       The House recedes.
     Reports on members of the Armed Forces and civilian employees 
         of the Department of Defense serving in the legislative 
         branch (sec. 1104)
       The Senate amendment contained a provision (sec. 1062) that 
     would require the Secretary of Defense to submit a monthly 
     report to the congressional defense committees if a member of 
     the Armed Forces or a civilian employee of the Department of 
     Defense, who has been assigned to the legislative branch as a 
     detailee or as a legislative fellow, exceeds 1 year in such 
     an assignment. The provision would also require reporting if 
     a military member receives such an assignment as the last 
     tour of duty before retirement or separation from active 
     duty.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require 
     quarterly, vice monthly, reports only when the conditions 
     requiring reporting exist.
     Extension of authority to waive annual limitation on total 
         compensation paid to Federal civilian employees (sec. 
         1105)
       The conferees agree to a provision that would extend 
     through 2007 the authority to waive the annual limitation on 
     total compensation paid to Federal civilian employees who are 
     working in an overseas location that is in the area of 
     responsibility of the Central Command. The provision would 
     establish $212,100 as the maximum total compensation on such 
     pay in 2007.
       The conferees are disappointed that the Department of 
     Defense failed to provide a legislative proposal to extend 
     the authority provided in section 1105 of the National 
     Defense Authorization Act for Fiscal Year 2006 (Public Law 
     109-163) to allow timely consideration by the congressional 
     committees of jurisdiction. The conferees are further 
     concerned that the Department appears to no longer consider 
     utilization of authorities granted under the National 
     Security Personnel System (NSPS) a practical means of paying 
     the affected individuals for performance in an overseas 
     theater of operations. Despite the Department's challenges in 
     implementation of NSPS, pay for performance is not enjoined 
     from implementation, and the conferees expect the Department 
     to develop an implementation plan to facilitate inclusion of 
     these individuals in pay for performance before 2008.

                   Legislative Provisions Not Adopted

     Increase in authorized number of defense intelligence senior 
         executive employees
       The House bill contained a provision (sec. 1101) that would 
     increase the number of defense intelligence senior executives 
     from 594 to 644.
       The Senate amendment contained no similar provision.
       The House recedes.
       A separate provision contained elsewhere in this report 
     would require the Secretary of Defense to develop a strategic 
     plan to shape and improve the senior management, functional, 
     and technical workforce of the Department of Defense, 
     including senior-level intelligence employees.
     Authority to equalize allowances, benefits, and gratuities of 
         personnel on official duty in Iraq and Afghanistan
       The Senate amendment contained a provision (sec. 1103) that 
     would extend to the heads of all agencies, for their civilian 
     personnel serving on official duty in Iraq and Afghanistan, 
     the same authority as the Secretary of State already has 
     under section 413 of title I of the Foreign Service Act (22 
     U.S.C. 4081 et seq.) with respect to allowances, benefits, 
     and death gratuities for Foreign Service personnel.
       The House bill contained no similar provision.
       The Senate recedes.

[[Page 21125]]

       An identical provision (sec. 1603) was included in the 
     Emergency Supplemental Appropriations Act for Defense, the 
     Global War on Terror, and Hurricane Recovery, 2006 (Public 
     Law 109-234).
     Death gratuity authorized for federal employees
       The House bill contained a provision (sec. 1104) that would 
     provide a death gratuity of $0.1 million to civilian 
     employees of the United States Government in the case of a 
     death resulting from wounds, injuries, or illnesses that are 
     incurred in the performance of civilian duty in a contingency 
     operation, or who die in connection with a terrorist incident 
     during the employee's service with the Armed Forces of the 
     United States.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees are concerned that the increasing reliance on 
     civilian employees in a theater of operation by the 
     Department of Defense requires a comprehensive analysis of 
     civilian benefits including, but not limited to, a death 
     gratuity. The conferees expect the Secretary of Defense to 
     propose policy and legislative changes for consideration in 
     fiscal year 2008 or sooner, if appropriate, based on an 
     assessment by the Under Secretary of Defense for Personnel 
     and Readiness of current civilian personnel policies and the 
     findings of the Comptroller General report, as required by 
     Senate Report accompanying S. 1042 (S. Report 109-69) of the 
     National Defense Authorization Act for Fiscal year 2006, 
     entitled ``Comptroller General report on policy concerning 
     Department of Defense civilians deployed in support of 
     contingency operations.''
     Programs for use of leave by caregivers for family members of 
         individuals performing certain military service
       The Senate amendment contained a provision (sec. 1104) that 
     would require the Office of Personnel Management to establish 
     a temporary program to allow Federal employees who have been 
     designated by a member of the Armed Forces as a ``caregiver'' 
     to use annual leave for the purpose of providing care for the 
     dependents of the member when deployed in support of a 
     contingency operation. The amendment would authorize the 
     Secretary of Labor to establish a similar, voluntary leave 
     program for the private sector.
       The House bill contained no similar provision.
       The Senate recedes.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                     Legislative Provisions Adopted

                  Subtitle A--Assistance and Training

     Logistic support for allied forces participating in combined 
         operations (sec. 1201)
       The House bill contained a provision (sec. 1201) that would 
     allow the Secretary of Defense, with the concurrence of the 
     Secretary of State, to use up to $100.0 million of funds 
     available to the Department of Defense for operation and 
     maintenance in any given fiscal year to provide logistic 
     support, supplies, and services to allied forces. To receive 
     such support, the allied forces must be participating in an 
     operation, such as active hostilities, a contingency, or a 
     noncombat operation, with the Armed Forces of the United 
     States. Also, the Secretary of Defense must determine that 
     the support is essential to the success of the combined 
     operation and that without such support, the foreign military 
     forces would be unable to participate in the combined 
     operation. Finally, the support provided must be allowable 
     under existing export control laws and regulations.
       The Senate amendment contained a similar provision (sec. 
     1203) that would provide the Secretary of Defense, with the 
     concurrence of the Secretary of State, permanent authority to 
     use up to $100.0 million from operation and maintenance funds 
     in any fiscal year to provide logistic support, supplies, and 
     services to allied forces participating in combined 
     operations with the Armed Forces of the United States. The 
     provision would also authorize the Secretary of Defense to 
     provide up to an additional $5.0 million from operation and 
     maintenance funds in any fiscal year to provide logistic 
     support, supplies, and services to allied forces solely for 
     the purposes of enhancing the interoperability of the 
     logistical support systems of the allied forces with the 
     logistical support systems of the Armed Forces of the United 
     States in order to facilitate combined operations. The 
     provision would require the Secretary of Defense to provide 
     to the Committee on Armed Services and the Committee on 
     Foreign Relations of the Senate and the Committee on Armed 
     Services and the Committee on International Relations of the 
     House of Representatives an annual report on the use of this 
     authority.
       The Senate recedes with an amendment that would authorize 
     the Secretary of Defense to provide up to an additional $5.0 
     million from operation and maintenance funds in any fiscal 
     year to provide logistic support, supplies, and services to 
     allied forces participating in combined operations with the 
     Armed Forces of the United States solely for the purposes of 
     enhancing the interoperability of the logistical support 
     systems of the allied forces with the logistical support 
     systems of the Armed Forces of the United States in order to 
     facilitate such combined operations.
       The Senate amendment would also require the Secretary of 
     Defense to provide to the Committee on Armed Services and the 
     Committee on Foreign Relations of the Senate and the 
     Committee on Armed Services and the Committee on 
     International Relations of the House of Representatives an 
     annual report on the use of this authority.
       The conferees note their understanding that the term 
     ``logistic support, supplies, and services'' in section 
     2350(1) of title 10, United States Code, includes sealift.
     Temporary authority to use acquisition and cross-servicing 
         agreements to lend certain military equipment to foreign 
         forces in Iraq and Afghanistan for personnel protection 
         and survivability (sec. 1202)
       The House bill contained a provision (sec. 1202) that would 
     provide the Secretary of Defense authority to lend certain 
     military equipment, using Acquisition and Cross-Servicing 
     Agreements (ACSA), to the military forces of foreign nations 
     participating in combined operations with U.S. forces in Iraq 
     and Afghanistan. The provision would limit such equipment to 
     those items marked as significant military equipment in 
     specified categories on the U.S. munitions list, allow the 
     provision of such equipment under this authority for up to 1 
     year, and require that the equipment be used by foreign 
     military forces solely for personnel protection or to aid in 
     the personnel survivability of such forces. The provision 
     would require the Secretary to determine: (1) that the U.S. 
     forces participating in that combined operation have no 
     unfulfilled requirements for that equipment; and (2) with the 
     concurrence of the Secretary of State, that it is in the 
     national security interest of the United States to lend such 
     equipment for that purpose. The provision would stipulate 
     that the provision of equipment under this authority shall be 
     subject to the Arms Export Control Act (22 U.S.C. 2751 et 
     seq.) and any other export control regime under law relating 
     to the transfer of military technology to foreign nations. 
     The provision would require the Secretary of Defense, in 
     coordination with the Secretary of State, to submit 
     semiannual reports on the exercise of this authority to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives, the Committee on Foreign Relations of the 
     Senate, and the Committee on International Relations of the 
     House of Representatives. This authority would expire on 
     September 30, 2008.
       The Senate amendment contained a similar provision (sec. 
     1205).
       The Senate recedes with a clarifying amendment.
       The conferees note that this authority is intended to 
     permit the temporary loan of equipment such as armored HMMWVs 
     or HMMWVs with add-on armor kits, counter-improvised 
     explosive device equipment, and defusing equipment to our 
     coalition partners in Iraq and Afghanistan so that they can 
     be better protected against improvised explosive devices and 
     other weapons they are encountering in those theaters.
       The conferees further note their agreement on the 
     desirability of updating their understanding of the term 
     ``ammunition'' under section 2350(1) of title 10, United 
     States Code. The definition of ``ammunition'' provided in 
     this conference report is meant to supercede the definition 
     of ``ammunition'' that was provided in Senate Report 96-842 
     and Senate Report 96-795, both of which accompanied the 
     legislation (H.R. 5580) that first codified ACSA authority in 
     title 10, United States Code.
       Specifically, the conferees agree that the term 
     ``ammunition'' in section 2350(1) of title 10, United States 
     Code, includes: transfers of small arms ammunition between 
     forces on exercises when one side runs low and another has 
     sufficient supplies with repayment in cash or kind; 
     replacement-in-kind of ammunition expended at allied ranges; 
     exchange unit firing to determine compatibility of ammunition 
     between nations and its suitability for use in different 
     weapon systems; emergency acquisition of provisions of 
     conventional ammunition (small arms, mortar, automatic 
     cannon, artillery, and ship gun ammunition); bombs (cluster, 
     fuel air explosive, general purpose, and incendiary); 
     unguided projectiles and rockets; riot control chemical 
     ammunition; land mines (ground-to-ground and air-to-ground 
     delivered); demolition material; grenades; flares and 
     pyrotechnics; and all items included in the foregoing, such 
     as explosives, propellants, cartridges, propelling charges, 
     projectiles, warheads (with various fillers such as high 
     explosives, illuminating, incendiary, antimaterial, and anti-
     personnel), fuzes, boosters, and safe and arm devices, in-
     bulk, combination, or separately packaged items of issue for 
     complete round assembly; demolition munitions; training 
     ammunition; cartridge and propellant-actuated devices; chaff 
     and chaff dispensers; and expendable sonobuoys. Specifically 
     excluded are the following: guided missiles; naval mines and 
     torpedoes; nuclear ammunition and included items such as 
     warheads, warhead sections, and projectiles; guidance kits 
     for bombs or other ammunition; and chemical ammunition (other 
     than riot control).

[[Page 21126]]


     Recodification and revision to law relating to Department of 
         Defense humanitarian demining assistance (sec. 1203)
       The House bill contained a provision (sec. 1203) that would 
     amend chapter 20 of title 10, United States Code, to recodify 
     authorities for humanitarian demining assistance. The 
     provision would also clarify that the Secretary concerned may 
     carry out humanitarian demining assistance in a country if 
     such assistance would promote either the security interests 
     of the United States or the operational readiness skills of 
     the Armed Forces of the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would expand the 
     scope of the reporting requirement, and make other clarifying 
     changes.
     Enhancements to Regional Defense Combating Terrorism 
         Fellowship Program (sec. 1204)
       The Senate amendment contained a provision (sec. 1202) that 
     would amend section 2249c of title 10, United States Code, to 
     change the title of the ``Regional Defense Counterterrorism 
     Fellowship Program'' to the ``Regional Defense Combating 
     Terrorism Fellowship Program.'' The provision would also 
     increase the amount of authorized annual funding for the 
     program from $20.0 million to $25.0 million.
       The House bill contained a similar provision (sec. 1204).
       The Senate recedes with a clarifying amendment that would 
     limit the attendance of foreign officials to foreign military 
     officers, ministry of defense officials, or security 
     officials at military or civilian educational institutions.
       The conferees recognize the critical need to provide 
     education and training opportunities to our allies in the 
     global war on terror and support the Regional Defense 
     Combating Terrorism Fellowship Program as part of that 
     effort.
       The conferees expect the Department of Defense to continue 
     to ensure that the program conforms to the spirit of 
     statutory guidelines governing the administration of related 
     programs, including the requirement that each candidate 
     undergo a rigorous and thorough human rights verification and 
     vetting process.
     Participation of the Department of Defense in multinational 
         military centers of excellence (sec. 1205)
       The Senate amendment contained a provision (sec. 1207) that 
     would authorize during fiscal year 2007 the Secretary of 
     Defense, with the concurrence of the Secretary of State, to 
     permit the participation of Department of Defense civilian 
     and military personnel in multinational military centers of 
     excellence for the purpose of enhancing the ability of 
     participating nations to engage in joint exercises or 
     coalition or international military operations, or to improve 
     their interoperability. The provision would require the 
     Secretary of Defense to enter into memoranda of 
     understanding, with the concurrence of the Secretary of 
     State, that would govern the terms of the Department's 
     participation in such centers. The provision would permit the 
     Secretary of Defense to use up to $3.0 million from funds 
     available for operation and maintenance in fiscal year 2007 
     to pay the U.S. share of the expenses of such centers in 
     which the Department participates. The provision would 
     further authorize the use of Department facilities and 
     equipment to support such centers that are hosted by the 
     Department. The provision would require the Secretary of 
     Defense to submit a report to the congressional defense 
     committees, not later than October 31, 2007, on the use of 
     this authority, including a detailed report on the centers 
     and activities in which the Department participated, and the 
     cost of that participation.
       The provision would define a center of excellence as an 
     entity sponsored by one or more nations that is accredited 
     and approved by the North Atlantic Treaty Organization (NATO) 
     Military Committee as offering recognized expertise and 
     experience to personnel participating in the activities of 
     such entity for the benefit of NATO.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Modification and extension of authorities relating to program 
         to build the capacity of foreign military forces (sec. 
         1206)
       The Senate amendment contained a provision (sec. 1206) that 
     would modify section 1206 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163) 
     by permitting the Secretary of Defense to use funds available 
     for operation and maintenance to conduct or support the 
     activities authorized under that section, and by extending 
     the duration of the authority provided in that section 
     through September 30, 2008.
       The provision would also provide new authority to the 
     Secretary of Defense, with the concurrence of the Secretary 
     of State, to authorize any commander of a geographic 
     combatant command to respond to unanticipated changes in a 
     security environment within that commander's area of 
     responsibility (AOR) to build the capacity of the national 
     military forces of a country within that AOR in order for 
     that country to conduct counterterrorist operations or 
     participate in or support military and stability operations. 
     The provision would allow the Secretary of Defense to use 
     funds available for operation and maintenance for fiscal 
     years 2007 and 2008, up to $200.0 million in a fiscal year, 
     for this purpose. This authority would expire on September 
     30, 2008.
       The provision would further provide the Secretary of 
     Defense new authority to authorize a geographic combatant 
     commander to respond to urgent and unanticipated humanitarian 
     relief or reconstruction requirements in a foreign country 
     within the commander's AOR if the commander determines that 
     the provision of such assistance will promote the security 
     interest of the United States and of the country to which 
     such assistance would be provided. The provision would limit 
     the amounts available for this authority to $200,000 in any 
     country in a fiscal year. The provision would further require 
     the Secretary of Defense to submit to the congressional 
     defense committees an annual report on the provision of 
     assistance under this authority. This authority would expire 
     on September 30, 2008.
       The House contained no similar provision.
       The House recedes with an amendment that would modify 
     section 1206 by: (1) providing the authority in that section 
     to the Secretary of Defense, with the concurrence of the 
     Secretary of State, rather than to the President; (2) 
     permitting the Secretary of Defense to use up to $300.0 
     million from funds available for operation and maintenance in 
     a fiscal year to conduct or support the activities authorized 
     under that section; and (3) extending the duration of the 
     authority provided in that section through September 30, 
     2008.
       The conferees also agree to include elsewhere in this 
     report a provision that would provide expanded authority 
     under the Combatant Commanders Initiative Fund for geographic 
     combatant commanders to provide urgent and unanticipated 
     humanitarian relief and reconstruction assistance to 
     countries in their respective AORs.
       The conferees underscore that the authorities provided in 
     this section are provided in the spirit of a pilot program. 
     The conferees intend to review carefully how these 
     authorities are implemented so as to have a basis for 
     determining whether and, if so, in what precise manner, to 
     reauthorize these or provide other authorities after the 
     conclusion of the pilot program. Important factors in the 
     conferees' future consideration of these matters will be the 
     report that is to be provided under section 1206, and the 
     record of implementing these authorities that is built by the 
     Department of Defense over the next 2 years. The conferees 
     strongly discourage further modifications to these 
     authorities until a track record implementing the pilot 
     program authorized in this section has been established. The 
     conferees believe it will be important to demonstrate through 
     experience that these expanded authorities can and will be 
     exercised consistent with the effective coordination of U.S. 
     foreign policy writ large. Furthermore, the conferees 
     strongly believe that foreign assistance programs are more 
     appropriately funded through the foreign assistance accounts, 
     as administered by the Department of State, and urge the 
     administration to request sufficient funding for foreign 
     military assistance in those accounts in future years budget 
     requests.
     Authority for distribution to certain foreign personnel of 
         education and training materials and information 
         technology to enhance military interoperability (sec. 
         1207)
       The Senate amendment contained a provision (sec. 1208) that 
     would authorize the Secretary of Defense to provide 
     electronically-distributed learning content and associated 
     information technology for the education and training of 
     military and civilian personnel of friendly foreign 
     governments and personnel of internationally-recognized 
     nongovernmental organizations to enhance allied and friendly 
     military capabilities for multinational operations, including 
     joint exercises and coalition operations. The provision would 
     require the concurrence of the Secretary of State if the 
     activity proposed to be undertaken is not authorized by 
     another provision of law. The provision would further require 
     that the provision of learning content and information 
     technology under this authority shall be subject to the Arms 
     Export Control Act and any other export control regime under 
     law relating to the transfer of military technology for 
     foreign nations.
       The provision would also require the Secretary of Defense 
     to: (1) develop and issue guidance on the procedures for the 
     use of this authority; (2) submit a report to the 
     congressional defense committees on that guidance no later 
     than 30 days after it is issued; and (3) submit any 
     modifications of the guidance to the congressional defense 
     committees. The provision would require the Secretary of 
     Defense to submit an annual report to the congressional 
     defense committees on the use of the authority during the 
     preceding fiscal year. The authority would expire on 
     September 30, 2008.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to provide electronically-
     distributed

[[Page 21127]]

     learning content and associated information technology to 
     military and civilian personnel of a friendly foreign 
     government for their education and training for the purpose 
     of enhancing military interoperability between the Armed 
     Forces of the United States and military forces of friendly 
     foreign countries.

     Subtitle B--Nonproliferation Matters and Countries of Concern

       North Korea (sec. 1211)
       The Senate amendment contained a provision (sec. 1214) that 
     would require the President to appoint a senior presidential 
     envoy to act as coordinator of U.S. policy on North Korea, 
     and to submit to Congress a semiannual report on the nuclear 
     and missile programs of North Korea.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Report on participation of multinational partners in the 
         United Nations Command in the Republic of Korea (sec. 
         1212)
       The Senate amendment contained a provision (sec. 1221) that 
     would require the Secretary of Defense, in coordination with 
     the Secretary of State, to submit a report within 180 days of 
     enactment of this Act to the Committees on Armed Services of 
     the Senate and the House of Representatives and the Committee 
     on Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives on an 
     increased role and participation of multinational partners in 
     the United Nations Command in the Republic of Korea.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Intelligence on Iran (sec. 1213)
       The Senate amendment contained a provision (sec. 1216) that 
     would direct the Director of National Intelligence (DNI) to 
     submit to Congress an updated National Intelligence Estimate 
     (NIE) on Iran, and that would direct the President to submit 
     to Congress a report on U.S. policy objectives and strategy 
     regarding Iran. The provision would further direct the DNI to 
     submit a report on the process for vetting and clearing 
     statements of senior administration officials that are drawn 
     from or rely on intelligence and the process for identifying 
     significant misstatements of other public officials.
       The House bill contained no similar provision.
       The House recedes with an amendment that would direct the 
     DNI to submit to Congress a comprehensive NIE on Iran, but 
     would eliminate the requirement for the second report from 
     the DNI.
       In preparing the comprehensive NIE, the conferees urge the 
     DNI to address the full range of issues with respect to Iran 
     including: Iranian foreign policy and regime objectives; the 
     current status of the Iranian nuclear program with an 
     assessment of Iran's intentions and motivations with respect 
     to development of nuclear weapons to include factors that 
     might influence such intentions; an assessment of Iran's 
     military capabilities; an assessment of Iran's relationships 
     with terrorist groups; and an assessment of the full impacts, 
     success, and consequences of diplomacy, sanctions, military, 
     and other actions and interactions on and with Iran by the 
     international community. The conferees also urge the DNI to 
     include assessments of Iranian public opinion toward the 
     Iranian regime and programs, the United States, and the 
     international community. The NIE should also include an 
     assessment of the confidence level of key judgments, the 
     quality of the sources of intelligence on Iran, the nature 
     and scope of any intelligence gaps, and any significant 
     alternative views.
       An unclassified summary of the key judgments of the NIE 
     should be submitted with the NIE.
     Sense of Congress on United States policy on the nuclear 
         programs of Iran (sec. 1214)
       The Senate amendment contained a provision (sec. 1209) that 
     would express the sense of Congress: 1) endorsing the policy 
     of the United States announced May 31, 2006, to achieve a 
     successful diplomatic outcome with respect to Iran's efforts 
     to acquire a nuclear weapons capability; 2) calling on Iran 
     to suspend fully and verifiably its enrichment and 
     reprocessing activities, cooperate fully with the 
     International Atomic Energy Agency, and enter into 
     negotiations pursuant to the package presented to Iran by the 
     High Representative of the European Union; and 3) urging the 
     President and the Secretary of State to keep the Congress 
     fully informed about the progress in this vital initiative.
       The House bill contained no similar provision.
       The House recedes with an amendment that would add a clause 
     urging the United Nations Security Council to work for the 
     adoption of appropriate measures under Article 41 of Chapter 
     VII of the Charter of the United Nations in the event Iran 
     fails to comply with United Nations Security Council 
     Resolution 1696.

                       Subtitle C--Other Matters

     Exclusion of petroleum, oil, and lubricants from limitations 
         on annual amount of liabilities the United States may 
         accrue under acquisition and cross-servicing agreements 
         (sec. 1221)
       The Senate amendment contained a provision (sec. 1204) that 
     would exclude the acquisition of petroleum, oil, and 
     lubricants from the monetary limitations placed on 
     acquisitions made under Acquisition and Cross-servicing 
     Agreements with foreign allies.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to provide to the Committees on Armed 
     Services of the Senate and the House of Representatives a 
     report at the end of fiscal years 2007 and 2008, 
     respectively, on the use of this authority in that fiscal 
     year.
     Modification of limitations on assistance under the American 
         Servicemembers' Protection Act of 2002 (sec. 1222)
       The Senate amendment contained a provision (sec. 1210) that 
     would modify the limitations on the provision of military 
     assistance under the American Servicemembers' Protection Act 
     of 2002 (22 U.S.C. 7432(13)(A)) so that International 
     Military Education and Training assistance could be provided 
     to nations that are party to the International Criminal 
     Court.
       The House bill contained no similar provision.
       The House recedes.
     Humanitarian support for Iraqi children in urgent need of 
         medical care (sec. 1223)
       The House bill contained a provision (sec. 1222) that would 
     express the sense of Congress that the Secretary of Defense 
     should continue to provide space-available transportation on 
     military aircraft for humanitarian purposes to Iraqi children 
     in urgent need of medical care. The provision would also 
     authorize $1.0 million in Operation and Maintenance, Defense-
     wide for Department of Defense support of the Peace Through 
     Health Care Initiative.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delete the 
     authorization of appropriation.
       The conference outcome is reflected in the tables of this 
     report.
     Sense of Congress opposing the granting of amnesty by the 
         government of Iraq to persons known to have attacked, 
         killed, or wounded members of the United States Armed 
         Forces in Iraq (sec. 1224)
       The Senate amendment contained a provision (sec. 1212) that 
     would express the sense of Congress that: (1) the Government 
     of Iraq should not grant amnesty to persons known to have 
     attacked, killed, or wounded members of the Armed Forces of 
     the United States; and (2) the President should immediately 
     notify the Government of Iraq that the Government of the 
     United States strongly opposes granting amnesty to persons 
     who have attacked members of the Armed Forces of the United 
     States.
       The House bill contained no similar provision.
       The House recedes with an amendment that would add an 
     additional element to the sense of Congress that the goal of 
     the United States and coalition partners has been to empower 
     the Iraqi people with full sovereignty as a nation. The 
     amendment would delete the element regarding presidential 
     notification to the Government of Iraq.
     Annual reports on United States contributions to the United 
         Nations (sec. 1225)
       The Senate amendment contained a provision (sec. 1213) that 
     would require the President to submit an annual report to 
     Congress regarding all assessed and voluntary contributions 
     of the United States Government to the United Nations and 
     United Nations affiliated agencies and related bodies for the 
     preceding fiscal year.
       The House bill contained no similar provision.
       The House recedes with an amendment that would terminate 
     this annual reporting requirement on December 31, 2010.
     Comprehensive regional strategy and annual reports on Somalia 
         (sec. 1226)
       The Senate amendment contained a provision (sec. 1215) that 
     would require the President to submit a report to Congress, 
     not later than 90 days after the date of the enactment of 
     this Act, on a comprehensive regional strategy toward 
     Somalia. The strategy shall include: (1) a clearly stated 
     U.S. policy towards Somalia; (2) a description of bilateral, 
     regional, and multilateral efforts to coordinate and 
     strengthen diplomatic engagement with Somalia; (3) a 
     description of an integrated approach to counter 
     transnational security interests in Somalia and throughout 
     the Horn of Africa; (4) a description of an interagency 
     framework involving relevant Federal agencies and departments 
     to plan, coordinate, and execute U.S. policy and activities 
     in Somalia and throughout the Horn of Africa and to oversee 
     policy and program implementation; and (5) guidance on the 
     implementation of the comprehensive regional strategy. The 
     provision would also require annual reports on the status of 
     the implementation of the comprehensive regional strategy.
       The House bill contained no similar provision.

[[Page 21128]]

       The House recedes with an amendment that would repeal the 
     annual reporting requirement on the status of the 
     implementation of the comprehensive regional strategy on 
     April 1, 2010, and make other clarifying changes.
     Report on the implementation of the Darfur Peace Agreement 
         (sec. 1227)
       The Senate amendment contained a provision (sec. 1224) that 
     would require the Secretary of Defense to submit a report to 
     the appropriate congressional committees, not later than 60 
     days after the date of the enactment of this Act and annually 
     thereafter, on the role of the Department of Defense in 
     assisting the parties to the Darfur Peace Agreement with 
     implementation of that Agreement.
       The House bill contained no similar provision.
       The House recedes with an amendment that would incorporate 
     elements of a report from another provision contained 
     elsewhere in this report into a single report required under 
     this section. The amendment would also make other clarifying 
     and technical changes. The amendment would further repeal a 
     similar reporting requirement on Darfur required by the House 
     report accompanying H.R. 5122 (H.Rept. 109-452) of the 
     National Defense Authorization Act for Fiscal Year 2007.
     Sense of Congress concerning cooperation with Russia on 
         issues pertaining to missile defense (sec. 1228)
       The House bill contained a provision (sec. 1223) that would 
     express the sense of Congress that cooperation between Russia 
     and the United States with regard to missile defense is in 
     the interest of the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Sense of Congress calling for convening of a summit for a 
         comprehensive political agreement for Iraq (sec. 1229)
       The Senate amendment contained a provision (sec. 1096) that 
     would express the sense of Congress that the President should 
     convene a summit, as soon as possible, with leaders of the 
     Government of Iraq, governments that border Iraq, and the 
     governments of each permanent member of the United Nations 
     Security Council. The summit should also involve 
     representatives of the Arab League, the European Union, and 
     the North Atlantic Treaty Organization. The purpose of the 
     summit would be to achieve a comprehensive political 
     agreement that addresses fundamental issues, including 
     reconstruction, economic assistance, and border security.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Sense of Congress on the commendable actions of the Armed 
         Forces in Iraq (sec. 1230)
       The Senate amendment contained a provision (sec. 1084) that 
     would express a sense of Congress that: (1) commends the 
     United States Armed Forces, the intelligence community, other 
     Federal agencies, and coalition partners for their actions 
     that resulted in the death of Abu Musab al-Zarqawi; (2) 
     commends the United States Armed Forces, the intelligence 
     community, and other Federal agencies for their efforts to 
     bring freedom, democracy, and security to the people of Iraq; 
     (3) commends Iraqi Prime Minister Jawad al-Maliki on the 
     finalization of the new Iraqi cabinet and urges the 
     democratically-elected government of Iraq to defeat terrorism 
     and put an end to ethnic and sectarian violence; and (4) 
     affirms that Congress will continue to support the United 
     States Armed Forces and the democratically-elected unity 
     government of Iraq.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Annual report on foreign sales of significant military 
         equipment manufactured in the United States (sec. 1231)
       The Senate amendment contained a provision (sec. 1070B) 
     that would require the Department of Defense to submit an 
     annual report to Congress on foreign military sales and 
     direct sales to foreign customers of significant military 
     equipment manufactured in the United States.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

                   Legislative Provisions Not Adopted

     Expansion of humanitarian and civic assistance to include 
         communications and information capacity
       The Senate amendment contained a provision (sec. 1201) that 
     would amend section 401 of title 10, United States Code, to 
     expand the authority of the Secretary of Defense to provide 
     humanitarian and civic assistance in conjunction with 
     military operations to include information and communications 
     technology as necessary to provide basic information and 
     communications services.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees acknowledge that restoring basic information 
     and communications capacity is a fundamental element of 
     humanitarian and civic assistance, and that a functioning 
     information and communications infrastructure is vital to the 
     successful conduct of humanitarian missions. Accordingly, the 
     conferees note that rudimentary construction and repair of 
     public facilities, under section 401(e)(4) of title 10, 
     United States Code, includes information and communications 
     technology as necessary to provide basic information and 
     communications services.
     Capstone overseas field studies trips to People's Republic of 
         China and Republic of China on Taiwan
       The House bill contained a provision (sec. 1205) that would 
     require the Secretary of Defense to direct that field studies 
     trips to the People's Republic of China and the Republic of 
     China on Taiwan be a mandatory element of the Capstone course 
     for newly selected flag and general officers.
       The Senate amendment contained no similar provision.
       The House recedes.
     Military educational exchanges between senior officers and 
         officials of the United States and Taiwan
       The House bill contained a provision (sec. 1206) that would 
     would require the Secretary of Defense to undertake a program 
     of senior military officer and senior official exchanges with 
     Taiwan designed to improve Taiwan's defenses against the 
     People's Liberation Army of the People's Republic of China.
       The Senate amendment contained no similar provision.
       The House recedes.
       Procurement restrictions against foreign persons that 
     transfer certain defense articles and services to the 
     People's Republic of China
       The House bill contained a provision (sec. 1211) that would 
     prohibit the Secretary of Defense from procuring any goods or 
     services from a foreign person or entity that the Secretary 
     of Defense has determined transferred to the People's 
     Republic of China items on the U.S. munitions list.
       The Senate amendment contained no similar provision.
       The House recedes.
     Sense of Congress commending the Government of Iraq for 
         affirming its position of no amnesty for terrorists who 
         attack United States Armed Forces
       The Senate amendment contained a provision (sec. 1211) that 
     would express the sense of Congress that: (1) the goal of the 
     United States and our coalition partners has been to empower 
     the Iraqi nation with full sovereignty thereby recognizing 
     their freedom to exercise that sovereignty; (2) history 
     records that governments derived of free elections should not 
     grant amnesty to those who have committed war crimes or 
     terrorists acts; and (3) the United States should continue 
     with the historic tradition of diplomatically, economically, 
     and in a humanitarian manner assisting nations and the people 
     who have fought once a conflict is concluded.
       The House bill contained no similar provision.
       The Senate recedes. Elsewhere in this report, the conferees 
     agree to include a separate provision on a similar topic.
     Reports on implementation of the Darfur Peace Agreement
       The Senate amendment contained a provision (sec. 1217) that 
     would require the President to submit a report on the 
     implementation of the Darfur Peace Agreement.
       The House bill contained no similar provision.
       The Senate recedes.
     Execution of the President's policy to make available to 
         Taiwan diesel electric submarines
       The House bill contained a provision (sec. 1221) that would 
     establish that it is the policy of the United States to make 
     available to Taiwan plans and options for design work and 
     construction work on future diesel electric submarines under 
     the U.S. foreign military sales process, consistent with U.S. 
     national disclosure policy and applicable U.S. export control 
     laws.
       The Senate amendment contained no similar provision.
       The House recedes.
     Repeal of certain report requirements
       The Senate amendment contained a provision (sec. 1223) that 
     would repeal two annual reports on North Atlantic Treaty 
     Organization burdensharing that were codified in section 1003 
     of the Department of Defense Authorization Act, 1985 (Public 
     Law 98-525), and in section 1313 of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337), 
     respectively.
       The House bill contained no similar provision.
       The Senate recedes.

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

                     Legislative Provisions Adopted

     Specification of Cooperative Threat Reduction programs and 
         funds (sec. 1301)
       The House bill contained a provision (sec. 1301) that would 
     define the programs that are

[[Page 21129]]

     Cooperative Threat Reduction (CTR) programs, define the funds 
     for CTR programs as those authorized to be appropriated in 
     section 301 of this Act, and specify that CTR funds shall 
     remain available for obligation for three fiscal years.
       The Senate amendment contained an identical provision (sec. 
     1301).
       The conference agreement includes this provision.
     Funding allocations (sec. 1302)
       The House bill contained a provision (sec. 1302) that would 
     authorize $372.1 million for the Cooperative Threat Reduction 
     (CTR) program. The provision would also authorize specific 
     amounts for each CTR program element, require notification to 
     Congress 30 days before the Secretary of Defense obligates 
     and expends fiscal year 2007 funds for purposes other than 
     those specifically authorized, and provide limited authority 
     to obligate amounts for a CTR program element in excess of 
     the amount specifically authorized for that purpose.
       The Senate amendment contained a similar provision (sec. 
     1302).
       The Senate recedes.
     Extension of temporary authority to waive limitation on 
         funding for chemical weapons destruction facility in 
         Russia (sec. 1303)
       The House bill contained a provision (sec. 1303) that would 
     extend, until the completion of the facility, the President's 
     authority to waive restrictions established in section 1305 
     of the National Defense Authorization Act for Fiscal Year 
     2000 (Public Law 106-65) for continuing the construction of a 
     chemical weapons destruction facility at Shchuch'ye, Russia.
       The Senate amendment contained a similar provision (sec. 
     1303) that would extend, through December 31, 2011, the 
     President's authority to waive restrictions established in 
     section 1305 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65) for continuing the 
     construction of a chemical weapons destruction facility at 
     Shchuch'ye, Russia.
       The Senate recedes with a clarifying amendment.
     National Academy of Sciences study of prevention of 
         proliferation of biological weapons (sec. 1304)
       The House bill contained a provision (sec. 1304) that would 
     require the Secretary of Defense to sponsor a study by the 
     National Academy of Sciences (NAS) to analyze lessons 
     learned, past and present challenges, and possible options in 
     effectively managing and facilitating threat reduction and 
     nonproliferation projects under the Cooperative Threat 
     Reduction (CTR) program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to sponsor a study by the NAS to identify areas for 
     further cooperation with Russia and other states of the 
     former Soviet Union under the CTR program, specifically in 
     the area of biological weapons proliferation prevention.
       The conferees agree that it is beneficial to have an 
     independent nongovernmental organization study certain 
     aspects of the CTR program. The conferees agree that the 
     study required by this section should concentrate on 
     biological weapons proliferation prevention, given the 
     emerging threats associated with biological weapons 
     proliferation; the considerable challenges to preventing such 
     proliferation; the Department's focus on biological weapons 
     proliferation prevention in recent years and interest in 
     possibly expanding such work; and the necessity of benefiting 
     from the knowledge of scientific and technical experts when 
     designing programs to promote further cooperation in the area 
     of biological weapons proliferation prevention. The conferees 
     note their intent to consider in future years requiring 
     independent analyses of other remaining proliferation 
     challenges, particularly in the area of nuclear weapons 
     proliferation prevention, and how CTR programs might address 
     them.
       To ensure timely delivery of the study described in this 
     section, the conferees strongly urge all U.S. Government 
     departments or agencies that provide the NAS with access to 
     classified material for use in the study to complete 
     promptly, no later than 30 calendar days after receipt, any 
     necessary classification reviews of the study or related 
     documents.

                   Legislative Provision Not Adopted

     Removal of certain restrictions on provision of Cooperative 
         Threat Reduction assistance
       The Senate amendment contained a provision (sec. 1304) that 
     would repeal certain restrictions on the provision of 
     Cooperative Threat Reduction (CTR) assistance, including: the 
     requirement that the President make certain certifications to 
     the Congress regarding the proposed recipients of CTR funds; 
     and the conditions on provision of CTR assistance for 
     chemical weapons destruction at Shchuch'ye, Russia.
       The House bill contained no similar provision.
       The Senate recedes.

  TITLE XIV--MATTERS RELATED TO DEFENSE AGAINST TERRORISM AND RELATED 
                            SECURITY MATTERS

                     Legislative Provisions Adopted

     Enhancement to authority to pay rewards for assistance in 
         combating terrorism (sec. 1401)
       The House bill contained a provision (sec. 1032) that would 
     increase the flexibility and responsiveness of the rewards 
     protection program available to the Department of Defense. 
     The provision would (1) delegate approval authority to 
     commanders directly subordinate to combatant commanders; (2) 
     direct that delegated authority must be approved by the 
     Secretary of Defense, Deputy Secretary of Defense, or an 
     Under Secretary of Defense; and (3) increase the current 
     maximum reward amount from $2,500 to $10,000.
       The Senate amendment contained a similar provision (sec. 
     1041).
       The Senate recedes with an amendment that would direct that 
     the delegated authority by a combatant commander may be made 
     only with the approval of an Under Secretary of Defense to 
     whom authority has been delegated under section 127b(c)(1)(A) 
     of title 10, United States Code.
     Quarterly reports on Department of Defense response to threat 
         posed by improvised explosive devices (sec. 1402)
       The House bill contained a provision (sec. 1042) that would 
     require the Secretary of Defense to submit to Congress a 
     report on the status of the threat posed by improvised 
     explosive devices (IED) and the efforts being undertaken to 
     defeat the IED threat not later than 30 days after the date 
     of the enactment of this Act. The provision would also 
     require supplemental quarterly reports to account for every 
     incident involving the detonation or discovery of an IED 
     since the previous report was submitted.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     require the Secretary to submit the initial report 90 days 
     after the date of the enactment of this Act. The amendment 
     would also clarify the reporting requirements for the 
     supplemental quarterly report on IED incidents.
     Requirement that all military wheeled vehicles used in Iraq 
         and Afghanistan outside of secure military operating 
         bases be protected by Improvised Explosive Device (IED) 
         jammers (sec. 1403)
       The House bill contained a provision (sec. 1045) that would 
     require the Secretary of Defense to take such steps as 
     necessary to ensure that by the end of fiscal year 2007 all 
     U.S. military wheeled vehicles used in Iraq and Afghanistan 
     outside of military compounds are equipped with improvised 
     explosive device (IED) jammers. The provision would also 
     require the Secretary to submit to the congressional defense 
     committees, not later than December 15, 2006, a report on the 
     cost and schedule to comply with the requirement.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to take such steps as necessary to ensure that by 
     the end of fiscal year 2007 all U.S. military wheeled 
     vehicles used in Iraq and Afghanistan outside of secure 
     military operating bases are protected by IED jammers.
       The conferees understand that there is no single ``silver 
     bullet'' solution to defeat IEDs, but current jamming 
     technology allows commanders to provide a level of protection 
     for deployed forces. However, the conferees also understand 
     that it is critical for subordinate commanders of U.S. 
     Central Command (USCENTCOM) to retain the flexibility to 
     modify the jammer-to-vehicle ratio in order to match mission 
     requirements with unit capabilities. The conferees do not 
     intend to require that every vehicle be equipped with a 
     jammer, but expect that battlefield commanders will develop 
     tactics, techniques, and procedures to ensure that all 
     vehicles remain within the protective envelope of jammers and 
     that an individual vehicle will not be left unprotected when 
     used outside of secure military operating bases. The 
     conferees intend that such jammers suppress the radio-
     controlled IED initiation devices assessed to be used in a 
     commander's area of responsibility.
       The conferees strongly urge the Secretary to take whatever 
     measures necessary, using the funds authorized for the Joint 
     IED Defeat Fund in title XV of this Act, to accelerate the 
     production of jammers so that the Commander, USCENTCOM, can 
     deploy a jammer on every tactical wheeled vehicle used in 
     Iraq and Afghanistan.
     Report on assessment process of Chairman of the Joint Chiefs 
         of Staff relating to Global War on Terrorism (sec. 1404)
       The House bill contained a provision (sec. 1033) that would 
     require the Secretary of Defense to submit a report, not 
     later than March 1, 2007, on the findings of the semiannual 
     assessment on the global war on terrorism, as described in 
     the annex to the National Military Strategic Plan for the War 
     on Terrorism.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Treatment under Freedom of Information Act of certain 
         confidential information shared with State and local 
         personnel (sec. 1405)
       The Senate amendment contained a provision (sec. 1043) that 
     would clarify that sensitive but unclassified homeland 
     security information in the possession of the Department of 
     Defense that is shared with state

[[Page 21130]]

     and local personnel who are involved in the prevention of or 
     response to terrorist activity does not become subject to 
     disclosure under the Freedom of Information Act (5 U.S.C. 
     552) by virtue of such sharing.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Database of emergency response capabilities (sec. 1406)
       The House bill contained a provision (sec. 1038) that would 
     require the Secretary of Defense to maintain a database of 
     emergency response capabilities resident in each State's 
     National Guard that could be deployed in response to a 
     domestic natural or manmade disaster.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.

                   Legislative Provision Not Adopted

     Homeland defense technology transfer
       The House bill contained provisions (secs. 1401-1403) that 
     would require the establishment of a homeland defense 
     technology transfer consortium.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that section 1401 of the Bob Stump 
     National Defense Authorization Act for Fiscal Year 2003 
     (Public Law 107-314) directed the Secretary of Defense to 
     designate a senior Federal official within the Department of 
     Defense to coordinate the Department's efforts to identify, 
     evaluate, deploy, and transfer technological items and 
     equipment to Federal, State, and local first responders in 
     support of homeland defense. The conferees commend the 
     designation of the Assistant Secretary of Defense for 
     Homeland Defense (ASD-HD) as the senior Federal official, and 
     the execution of the Memorandum of Agreement (MOA) in October 
     2005 between ASD-HD and senior officials in the Departments 
     of Homeland Security and Justice, which outlined their 
     respective responsibilities for the program. While a formal 
     process is important, the MOA places the Offices of ASD-HD 
     and the Under Secretary of Science and Technology for 
     Homeland Security between the Department of Defense technical 
     community and the first responder community. As a result, 
     these two organizations do not bridge both the Department's 
     technical community and the first responder community for the 
     purposes of transferring technological items and equipment in 
     support of homeland defense. The conferees believe the 
     Department's efforts to rapidly transfer technologies that 
     could assist other Federal agencies, State governments, and 
     first responders with their homeland security 
     responsibilities would benefit by a more direct dialogue 
     between the Department's technical community and first 
     responders. Therefore, the conferees urge the Secretary to 
     consider the establishment of a consortium that brings 
     together appropriate defense entities, other Federal 
     agencies, State and local governments, and the first 
     responder community.

  TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM

     Overview
       The House bill contained a title (title XV) that would 
     authorize $50.0 billion for ongoing operations in Iraq and 
     Afghanistan. The title also contained general provisions.
       The Senate amendment contained a similar title (title XIV). 
     The title also contained reporting requirements and general 
     provisions.
       The conferees agree to include a title that would authorize 
     $70.0 billion for ongoing operations in Iraq and Afghanistan. 
     The title would also contain reporting requirements and 
     general provisions.
     Summary table of authorization
       The following table summarizes authorizations included in 
     this report for ongoing operations in Iraq and Afghanistan 
     for fiscal year 2007.

[[Page 21131]]

     TH29SE06.177
     


[[Page 21132]]

     TH29SE06.178
     


[[Page 21133]]

     TH29SE06.179
     


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[[Page 21160]]

     Reset funding
       The conferees agree to authorize $23.7 billion in this 
     title to reset--repair, replace, or recapitalize--Army and 
     Marine Corps equipment used in the global war on terror. The 
     conferees based their agreement on information provided to 
     them by the Army on July 29, 2006, and by the Marine Corps on 
     September 6, 2006. The conferees understand that these 
     requirements may change, and expect the Department of Defense 
     to fully utilize the reprogramming authorities provided in 
     this title to best meet its requirements.
       The table below summarizes the reset funding contained 
     elsewhere in this title.

[[Page 21161]]

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[[Page 21162]]

                              Budget Item

     C-17 procurement
       The budget request included $2.6 billion in Aircraft 
     Procurement, Air Force for procurement of 12 C-17 aircraft, 
     which would complete the current C-17 multiyear procurement 
     contract purchase of 60 aircraft.
       The House bill would authorize an increase of $299.8 
     million, and would also authorize the budget request of 
     $389.6 million of settlement funding for the procurement of 
     three additional C-17 aircraft.
       The Senate amendment would authorize the budget request for 
     12 C-17 aircraft. Of the authorized amount, the Secretary of 
     the Air Force may apply $400.0 million of settlement funding 
     for the procurement of two additional C-17 aircraft, and 
     $33.2 million of settlement funding for advance procurement 
     for additional C-17 aircraft in the fiscal year 2008 budget 
     request.
       The conferees agree to authorize a decrease of $348.0 
     million in Aircraft Procurement, Air Force for C-17 
     production line shut-down. The conferees agree to authorize 
     an increase of $2.1 billion in title XV of this Act for the 
     procurement of 10 additional C-17 aircraft. The conferees 
     authorize the Secretary to apply the fiscal year 2006 
     appropriation for line shut-down funding of $224.0 million 
     towards advance procurement of these 10 additional C-17 
     aircraft.
       The conferees are concerned that the Department of Defense 
     has not thoroughly determined its airlift requirements for 
     both the intra-theater and inter-theater missions and that 
     the decision to cease production of the Department's only 
     strategic airlift aircraft procurement program is premature. 
     Further, the conferees agree with the Government 
     Accountability Office's assessment of the Mobility 
     Capabilities Study (MCS), and are concerned about the 
     validity and completeness of the MCS and its conclusions. The 
     MCS assessed that a fleet of 292 strategic airlift aircraft 
     is adequate to meet future airlift requirements. However, the 
     conferees have concluded that the Department's determination 
     was based on numerous assumptions, of which some are no 
     longer relevant. Among the uncertainties affecting these 
     assumptions are:
       (1) defining Army modularity intra-theater and inter-
     theater airlift requirements;
       (2) achieving success in the C-5 modernization program;
       (3) defining the C-130 wing-box repair strategy; and
       (4) determining the viability of the Civil Reserve Airlift 
     Fleet to augment future airlift requirements.
       The conferees support the number one priority on the Chief 
     of Staff of the Air Force's unfunded priorities list 
     requesting seven additional C-17 aircraft, and agree that 
     procurement of additional C-17 aircraft would help mitigate 
     the risk associated with the uncertainties of determining the 
     Department's airlift requirements.

                     Legislative Provisions Adopted

     Purpose (sec. 1501)
       The House bill contained a provision (sec. 1501) that would 
     establish a title as an authorization of appropriations for 
     the Department of Defense for fiscal year 2007, in addition 
     to amounts otherwise authorized in this Act, to provide funds 
     for additional costs due to Operation Iraqi Freedom and 
     Operation Enduring Freedom.
       The Senate amendment contained an identical provision (sec. 
     1401).
       The conference agreement includes this provision.
     Army procurement (sec. 1502)
       The House bill contained a provision (sec. 1502) that would 
     authorize an additional $3,773.8 million in fiscal year 2007 
     for Army Procurement.
       The Senate amendment contained a similar provision (sec. 
     1402) that would authorize an additional $1,755.1 million.
       The Senate recedes with an amendment that would authorize 
     an additional $9,235.7 million in fiscal year 2007 for Army 
     Procurement.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Navy and Marine Corps procurement (sec. 1503)
       The House bill contained a provision (sec. 1503) that would 
     authorize an additional $955.4 million in fiscal year 2007 
     for Navy and Marine Corps Procurement.
       The Senate amendment contained a similar provision (sec. 
     1403) that would authorize an additional $319.8 million.
       The Senate recedes with an amendment that would authorize 
     an additional $5,062.8 million in fiscal year 2007 for Navy 
     and Marine Corps Procurement.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Air Force procurement (sec. 1504)
       The House bill contained a provision (sec. 1504) that would 
     authorize an additional $296.9 million in fiscal year 2007 
     for Air Force Procurement.
       The Senate amendment contained a similar provision (sec. 
     1404) that would authorize $51.8 million.
       The Senate recedes with an amendment that would authorize 
     an additional $2,179.7 million in fiscal year 2007 for Air 
     Force Procurement.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Defense-wide activities procurement (sec. 1505)
       The House bill contained a provision (sec. 1505) that would 
     authorize an additional $140.2 million in fiscal year 2007 
     for Procurement, Defense-wide.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     an additional $127.6 million in fiscal year 2007 for 
     Procurement, Defense-wide.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Research, development, test and evaluation (sec. 1506)
       The House bill contained a provision (sec. 1506) that would 
     authorize an additional $37.5 million in fiscal year 2007 for 
     Research, Development, Test, and Evaluation.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     an additional $10.5 million in fiscal year 2007 for Research, 
     Development, Test, and Evaluation.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Operation and maintenance (sec. 1507)
       The House bill contained a provision (sec. 1507) that would 
     authorize an additional $31,983.3 million in fiscal year 2007 
     for operation and maintenance programs.
       The Senate amendment contained a similar provision (sec. 
     1405) that would authorize an additional $32,246.2 million.
       The Senate recedes with an amendment that would authorize 
     an additional $36,557.9 million in fiscal year 2007 for 
     operation and maintenance programs.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Defense health program (sec. 1508)
       The House bill contained a provision (sec. 1508) that would 
     authorize an additional $950.2 million in fiscal year 2007 
     for Defense Health Program activities.
       The Senate amendment contained a similar provision (sec. 
     1406) that would authorize an additional $960.2 million.
       The House recedes with an amendment that would authorize an 
     additional $869.2 million in fiscal year 2007 for Defense 
     Health Program activities.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Classified programs (sec. 1509)
       The House bill contained a provision (sec. 1509) that would 
     authorize an additional $2.5 billion in fiscal year 2007 for 
     classified programs.
       The Senate amendment contained a similar provision (sec. 
     1409) that would authorize an additional $3.0 billion.
       The Senate recedes.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Military personnel (sec. 1510)
       The House bill contained a provision (sec. 1510) that would 
     authorize an additional $9,362.8 million in fiscal year 2007 
     for military personnel accounts.
       The Senate amendment contained a similar provision (sec. 
     1407) that would authorize an additional $7,335.9 million.
       The Senate recedes with an amendment that would authorize 
     an additional $8,107.0 million in fiscal year 2007 for 
     military personnel accounts.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Treatment as additional authorizations (sec. 1511)
       The House bill contained a provision (sec. 1511) that would 
     provide that the funds authorized in title XV of their bill 
     for emergency contingency operations related to Operation 
     Iraqi Freedom and Operation Enduring Freedom are in addition 
     to the amounts otherwise authorized in this Act.
       The Senate amendment contained an identical provision (sec. 
     1411).
       The conference agreement includes this provision.
     Transfer authority (sec. 1512)
       The House bill contained a provision (sec. 1512) that would 
     provide fiscal year 2007 transfer authority of $3.0 billion 
     to the Department of Defense for the authorizations contained 
     in title XV of their bill.
       The Senate amendment contained a similar provision (sec. 
     1412) that would transfer authority of $2.5 billion.
       The House recedes.
     Availability of funds (sec. 1513)
       The House bill contained a provision (sec. 1513) that would 
     require the funds provided in title XV be made available for 
     obligation by the end of the second quarter of fiscal year 
     2007.
       The Senate amendment contained an identical provision (sec. 
     1413).
       The conference agreement includes this provision.

[[Page 21163]]


     Joint Improvised Explosive Device Defeat Fund (sec. 1514)
       The Senate amendment contained a provision (sec. 1408) that 
     would authorize an additional $2.1 billion in fiscal year 
     2007 for the Joint Improvised Explosive Device Defeat Fund.
       The House bill contained no similar provision.
       The House recedes.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Iraq Freedom Fund (sec. 1515)
       The Senate amendment contained a provision (sec. 1410) that 
     would authorize an additional $2,231.0 million in fiscal year 
     2007 for the Iraq Freedom Fund.
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide an 
     additional authorization of $50.0 million in fiscal year 2007 
     for an Iraq Freedom Fund transfer account. Unless noted 
     explicitly in the statement of managers, all changes are made 
     without prejudice.
     Iraq Security Forces Fund (sec. 1516)
       The conferees agree to include a provision that would 
     provide an additional authorization of $1,734.0 million in 
     fiscal year 2007 for an Iraq Security Forces Fund transfer 
     account. These funds would be available to the Secretary of 
     Defense for the provision of equipment, supplies, services, 
     training, facility and infrastructure repair, renovation, and 
     construction, and for the Iraq Security Forces. The provision 
     would also authorize the Secretary to receive contributions 
     of funds from any person, foreign government, or 
     international organization for the purposes of the fund. The 
     provision would require the Secretary to notify the 
     congressional defense committees in writing 5 days prior to 
     the use or transfer of funds from the Iraq Security Forces 
     Fund, and to provide quarterly reports summarizing the 
     details of the use or transfer of funds.
     Afghanistan Security Forces Fund (sec. 1517)
       The conferees agree to include a provision that would 
     provide an additional authorization of $1,446.3 million in 
     fiscal year 2007 for an Afghanistan Security Forces Fund 
     transfer account. These funds would be available to the 
     Secretary of Defense for the provision of equipment, 
     supplies, services, training, facility and infrastructure 
     repair, renovation, and construction, and for the Afghanistan 
     Security Forces. The provision would also authorize the 
     Secretary to receive contributions of funds from any person, 
     foreign government, or international organization for the 
     purposes of the fund. The provision would require the 
     Secretary to notify the congressional defense committees in 
     writing 5 days prior to the use or transfer of funds from the 
     Afghanistan Security Forces Fund, and to provide quarterly 
     reports summarizing the details of the use or transfer of 
     funds.
     Submittal to Congress of Department of Defense supplemental 
         and cost of war execution reports (sec. 1518)
       The Senate amendment contained a provision (sec. 1418) that 
     would add the congressional defense committees to the report 
     distribution of global war on terror cost reports, as 
     required by section 1221 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163).
       The House bill contained no similar provision.
       The House recedes.
     Limitation on availability of funds for certain purposes 
         relating to Iraq (sec. 1519)
       The Senate amendment contained a provision (sec. 1419) that 
     would prohibit the obligation or expenditure of funds within 
     this Act to establish a permanent United States military 
     installation or base in Iraq or to exercise United States 
     control over the oil resources of Iraq.
       The House bill contained no similar provision.
       The House recedes with an amendment that would prohibit the 
     obligation or expenditure of funds within this Act to 
     establish any military installation or base for the purposes 
     of providing for the permanent stationing of United States 
     Armed Forces in Iraq or to exercise United States economic 
     control of the oil resources of Iraq.
     Intelligence Community Management Account (sec. 1520)
       The conferees agree to include a provision that would 
     provide an additional authorization of $19.3 million in 
     fiscal year 2007 for an Intelligence Community Management 
     Account.

                   Legislative Provision Not Adopted

     Our Military Kids Youth Support Program
       The Senate amendment contained a provision (sec. 1415) that 
     would authorize a total of $2.0 million for expansion of the 
     program Our Military Kids Youth Support Program, which 
     provides services to the children of deployed or injured 
     members of the guard and reserve.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

                              Budget Items

     Explanation of funding table
       Division B of this Act authorizes funding for military 
     construction projects for the Department of Defense. It 
     includes funding authorizations for the construction and 
     operation of military family housing and military 
     construction for the reserve components, the defense 
     agencies, and the North Atlantic Treaty Organization Security 
     Investment program. It also provides authorization for the 
     base closure account that funds environmental cleanup and 
     other activities associated with the implementation of base 
     closure rounds.
       The budget request included $16,698.4 million for military 
     construction and housing programs. Of this amount, the budget 
     request included $5,626.2 million to implement the results of 
     the 2005 Defense Base Closure and Realignment round. The 
     amount is included in the following table in a line 
     designated Base Realignment and Closure V.
       The House bill would authorize appropriations of $16,698.4 
     million.
       The Senate amendment would authorize appropriations of 
     $17,102.0 million.
       The conferees agree to authorize appropriations of 
     $17,376.8 million for the military construction and family 
     housing programs. When the impact of $278.4 million in prior 
     year rescissions proposed in the Military Quality of Life and 
     Veterans Affairs, and Related Agencies Appropriations Bill, 
     2007 (H.R. 5385) for both the Senate and the House of 
     Representatives is included, the conference agreement will be 
     consistent with the budget authority level of $17,098.4 
     million for military construction and family housing 
     programs.
       The following tables provide the project-level 
     authorizations for the military construction funding 
     authorized in division B of this Act and summarize that 
     funding by account.

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[[Page 21184]]

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[[Page 21185]]

     2005 Defense Base Closure and Realignment accounts authorized 
         for appropriations in 2006
       The National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163) included authorization of appropriations 
     of $1,504.5 million to carry out military construction, 
     environmental activities, and certain operating expenses 
     related to the results of the 2005 Defense Base Closure and 
     Realignment (BRAC) round. Section 2404(c) of the 
     aforementioned Act required the Secretary of Defense to 
     submit to the congressional defense committees a report 
     describing the specific programs, projects, and activities 
     for which the authorized amounts would be used.
       Congress imposed a 1 percent reduction upon the 
     appropriation for the BRAC account, which resulted in an 
     amount of $1,489.4 million being available for obligation.
       On February 10, 2006, the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics submitted to the 
     committees on Armed Services of the Senate and the House of 
     Representatives a report detailing the planned expenditures 
     of funds to support implementation of the Department of 
     Defense's BRAC requirements.
       The planned expenditures included $1,160.3 million to 
     initiate planning, design, and construction of facilities; 
     $82.3 million for activities required by the National 
     Environmental Policy Act and other environmental actions; 
     $193.8 million to carry out personnel permanent changes of 
     station, transportation of personnel property, sustainment of 
     real property, and BRAC program management; and $52.6 million 
     for the procurement of collateral equipment, information 
     technology systems, training, and other transition support 
     services.
       The following table provides the projects and other 
     activities that were identified by the Department to be 
     carried out by each service using amounts made available in 
     fiscal year 2006.
       The conferees continue to review the justification for the 
     construction projects and other BRAC V activities within 
     these accounts to ensure amounts authorized for this program 
     are used solely to carry out the decisions of the 2005 BRAC 
     round.

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[[Page 21187]]

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[[Page 21188]]

     2005 Defense base closure and realignment accounts
       The budget request included authorization of appropriations 
     of $5,626.2 million for fiscal year 2007 to carry out 
     military construction, environmental activities, and certain 
     operating expenses related to the results of the 2005 Defense 
     Base Closure and Realignment (BRAC) round.
       The House bill would authorize appropriations of $5,626.2 
     million for fiscal year 2007 to carry out military 
     construction, environmental activities, and certain operating 
     expenses related to the results of the 2005 BRAC round.
       The Senate amendment would authorize appropriations of 
     $5,526.9 million for fiscal year 2007 to carry out military 
     construction, environmental activities, and certain operating 
     expenses related to the results of the 2005 BRAC round.
       The conferees agree to authorize appropriations of $5,626.2 
     million for fiscal year 2007 to carry out military 
     construction, environmental activities, and certain operating 
     expenses related to the results of the 2005 BRAC round.
       The following table provides the projects and other 
     activities identified by the Department of Defense to be 
     carried out with amounts authorized for appropriation within 
     each service's BRAC V account.
       The conferees continue to review the justification for the 
     construction projects and other BRAC V activities within 
     these accounts to ensure amounts authorized for this program 
     are used solely to carry out the decisions of the 2005 BRAC 
     round.

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[[Page 21190]]

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[[Page 21191]]

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[[Page 21192]]

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[[Page 21193]]

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[[Page 21195]]

                     Legislative Provisions Adopted

     Short title (sec. 2001)
       The House bill contained a provision (sec. 2001) that would 
     cite division B of this Act as the ``Joel Hefley Military 
     Construction Authorization Act for Fiscal Year 2007.''
       The Senate amendment contained a provision (sec. 2001) that 
     would cite division B of this Act as the ``Military 
     Construction Authorization Act for Fiscal Year 2007.''
       The House recedes.
     Recognition of Representative Joel Hefley upon his retirement 
         from the House of Representatives (sec. 2002)
       The conferees agree to include a provision that would 
     recognize and commend the accomplishments of Representative 
     Joel Hefley for 20 years of public service to the people of 
     Colorado, members of the Armed Forces and their families, and 
     the United States.

                            TITLE XXI--ARMY

                              Budget Item

     Overview
       The budget request included $2,059.8 million for military 
     construction and $1,271.8 million for family housing for the 
     Army in fiscal year 2007.
       The House bill would authorize appropriations of $2,135.6 
     million for military construction and $1,253.4 million for 
     family housing.
       The Senate amendment would authorize appropriations of 
     $2,180.8 million for military construction and $1,271.8 
     million for family housing.
       The conferees agree to authorize appropriations of $2,264.0 
     million for military construction and $1,254.4 million for 
     family housing for the Army in fiscal year 2007.
       The conferees agree to decrease the authorization of 
     appropriations for military construction for the Army by 
     $31.0 million for a project to acquire a temporary 
     administrative facility at Fort Belvoir, Virginia. The 
     conferees acknowledge that the substantial annual cost to 
     lease the facility could be avoided by the acquisition of the 
     building. Therefore, the conferees direct the Secretary of 
     the Army to review the administrative space requirements for 
     Fort Belvoir related to the 2005 Defense Base Closure and 
     Realignment (BRAC) round. If the Secretary determines that 
     this temporary building will be used to satisfy BRAC 
     requirements, the conferees direct the Secretary to carry out 
     the acquisition of the facility in fiscal year 2007 with 
     funds authorized for BRAC activities, consistent with BRAC 
     statutes.
       The conferees agree to decrease the authorization of 
     appropriations for military construction for the Army by 
     $15.4 million for two projects to construct barracks at Camp 
     Humphreys, Republic of Korea due to a favorable bid climate 
     in the country.
       The conferees agree to decrease the authorization of 
     appropriations for Army housing construction improvements by 
     $16.2 million for a project to privatize housing at Fort 
     McNair, Washington, D.C. The conferees note that the 
     Secretary has decided that the best course of action to 
     restore the houses to an adequate condition is to use 
     military construction funds to renovate 18 historic houses. 
     The conferees are concerned that the current cost estimates 
     to restore these houses to an acceptable condition meeting 
     historical preservation requirements exceeds $1.0 million per 
     house. At a time when the Army is struggling to budget funds 
     for the recapitalization and sustainment of critical mission 
     facilities and infrastructure, the conferees do not support 
     the current estimated costs for these units. Understanding 
     the need to perform critical repairs for the safety and 
     security of the housing occupants, the conferees direct the 
     Secretary to reassess the costs and proposed renovation or 
     replacement actions to be carried out to these houses, and to 
     include in the budget request for fiscal year 2008 an amount 
     that will allow the Army to carry out minimum essential 
     repairs required to ensure adequate living conditions.
       The conferees agree to decrease the authorization of 
     appropriations for Army housing maintenance by $1.2 million 
     for a project to repair a housing unit at Stuggart, Germany, 
     and direct that the Secretary consider a burden-sharing 
     agreement with the host nation to complete the repair of this 
     facility.

                     Legislative Provisions Adopted

     Authorized Army construction and land acquisition projects 
         (sec. 2101)
       The House bill contained a provision (sec. 2101) that would 
     authorize Army military construction projects in fiscal year 
     2007.
       The Senate amendment contained a similar provision (sec. 
     2101).
       The conference agreement includes this provision.
       The amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of Division B of this 
     conference report entitled ``Military Construction 
     Authorizations for Fiscal Year 2007'' provides the binding 
     list of specific construction projects authorized at each 
     location.
     Family housing (sec. 2102)
       The House bill contained a provision (sec. 2102) that would 
     authorize new construction and planning and design of family 
     housing units for the Army in fiscal year 2007.
       The Senate amendment contained a similar provision (sec. 
     2102).
       The conference agreement includes this provision.
       The amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of Division B of this 
     conference report entitled ``Military Construction 
     Authorizations for Fiscal Year 2007'' provides the binding 
     list of specific construction projects authorized at each 
     location.
     Improvements to military family housing units (sec. 2103)
       The House bill contained a provision (sec. 2103) that would 
     authorize improvements to existing units of Army family 
     housing in fiscal year 2007.
       The Senate amendment contained a similar provision (sec. 
     2103).
       The conference agreement includes this provision.
     Authorization of appropriations, Army (sec. 2104)
       The House bill contained a provision (sec. 2104) that would 
     authorize specific appropriations for each line item 
     contained in the Army's military construction budget in 
     fiscal year 2007. The provision would also provide an overall 
     limit on the amount the Army is authorized to spend on 
     military construction projects in fiscal year 2007.
       The Senate amendment contained a similar provision (sec. 
     2104).
       The conference agreement includes this provision.

                       Items of Special Interest

     Impact of 2005 Defense Base Closure and Realignment decisions 
         to the transportation infrastructure in Northern Virginia
       The conferees note that the decisions of the 2005 Defense 
     Base Closure and Realignment (BRAC) round will have a 
     significant impact on the transportation infrastructure and 
     national highway system in Northern Virginia supporting Fort 
     Belvoir and Marine Corps Base Quantico. These impacts, if not 
     studied and addressed through a long-term investment 
     strategy, have the potential to adversely affect timely 
     access to these two critical military installations, as well 
     as the quality of life for military members and their 
     families on the installations and in the local communities.
       The conferees acknowledge that the Department of the Army 
     is currently studying the impact to the environment resulting 
     from relocation of functions and personnel to Fort Belvoir 
     and the former Engineering Proving Grounds in Fairfax County, 
     Virginia. The conferees direct the Secretary of the Army to 
     work with appropriate Federal, Commonwealth, and local 
     agencies to ensure the draft and final environmental impact 
     statements address the following factors:
       (1) a description of the demographic, population, and other 
     planning assumptions used to determine traffic infrastructure 
     requirements;
       (2) an analysis of the direct and indirect impact to the 
     transportation infrastructure resulting from the BRAC 
     decisions;
       (3) a description of the standards and methodologies for 
     the traffic impact studies contained in the study; and
       (4) an assessment of specific traffic infrastructure 
     improvements and new construction projects identified to 
     mitigate the effects of the increase of personnel, and 
     estimates of the costs to carry out the projects.
     Request for data related to unaccompanied housing 
         requirements in the Department of the Army
       The conferees note that the Department of the Army is 
     carrying out programs to transform its force structure and 
     global presence within the next 5 years, which will result in 
     the permanent relocation of over 100,000 unaccompanied 
     soldiers among Army installations. Concurrently, the 
     Department of the Army is in the process of implementing 
     business plans to carry out the decisions of the 2005 Defense 
     Base Closure and Realignment (BRAC) round. In the budget 
     justification material accompanying the fiscal year 2007 
     budget request for BRAC 2005, the Army included an assessment 
     that the military construction, environmental, and related 
     requirements, currently identified by the Army to implement 
     its BRAC recommendations, will cost $5.7 billion more than 
     the $9.5 billion budgeted by the Department of Defense for 
     the Army over the Future Years Defense Program. In subsequent 
     testimony to Congress, Army officials estimated that the 
     shortfall may be as high as $8.0 billion.
       In both BRAC and transformation initiatives, a major 
     expense for the Army will be the construction of new 
     unaccompanied housing facilities to support the relocation of 
     military personnel. The conferees are concerned that the 
     inadequate planning and scarce resources within the 
     Department of the Army to carry out BRAC and transformation 
     initiatives will result in too many unaccompanied junior 
     enlisted personnel having to find adequate quarters off base 
     due to a lack of adequate on-base facilities. The conferees 
     recognize that local communities

[[Page 21196]]

     have limited resources to be able to accommodate the increase 
     in demand for barracks-type housing at market rates 
     commensurate with a military member's Basic Allowance for 
     Housing. The conferees are concerned that this limited 
     availability could force military personnel to seek housing 
     at substantial distances from military bases, detrimentally 
     affecting both readiness and their quality of life.
       To address this substantial requirement to construct 
     unaccompanied housing on military installations, the 
     conferees note that Congress has granted authority to the 
     Department of the Army to enter into agreements with eligible 
     entities to provide for the acquisition or construction of 
     military unaccompanied housing units on or near military 
     installations. Similar authorities have been used to 
     dramatically improve the quality of family housing for 
     military personnel across all services.
       In the statement of managers accompanying the National 
     Defense Authorization Act for Fiscal Year 2006 (Public Law 
     109-163), the conferees encouraged ``the Secretary of the 
     Army to consider the use of alternate authorities for the 
     construction of unaccompanied housing in the development of 
     plans for permanent facilities at installations planned for 
     substantial increases in the number of unaccompanied 
     personnel.'' The conferees acknowledge that the Department of 
     the Army has initiated a project to acquire unaccompanied 
     housing using alternative authorities at Fort Drum, New York. 
     To date, no other similar projects have been initiated at 
     other Army installations planned for a substantial population 
     increase of military personnel.
       In order to more accurately understand the Department of 
     the Army's current status concerning the housing of 
     unaccompanied personnel, the conferees direct the Secretary 
     of the Army to submit to the congressional defense 
     committees, not later than March 1, 2007, a report on the 
     following:
       (1) the current number of each rank of unaccompanied 
     personnel living either on or off post at each major Army 
     installation in the United States;
       (2) the number of each rank of unaccompanied personnel 
     projected to be living either on or off post at each major 
     Army installation in the United States by 2011;
       (3) a description of the Department of the Army's policy 
     concerning the use of alternate authorities for the 
     acquisition of unaccompanied housing; and
       (4) an assessment by the Secretary of the Army of the 
     costs, benefits, utility, and restrictions of using the 
     alternate authorities to acquire unaccompanied housing.

                            TITLE XXII--NAVY

                              Budget Item

     Overview
       The budget request included $1,162.0 million for military 
     construction and $814.2 million for family housing for the 
     Navy in fiscal year 2007.
       The House bill would authorize appropriations of $1,219.9 
     million for military construction and $818.1 million for 
     family housing.
       The Senate amendment would authorize appropriations of 
     $1,268.8 million for military construction and $803.6 million 
     for family housing.
       The conferees agree to authorize appropriations of $1,291.3 
     million for military construction and $818.1 million for 
     family housing for the Navy in fiscal year 2007.
       The conferees agree to fully authorize the project to 
     recapitalize Hangar 5 at Whidbey Island, Washington, but to 
     decrease the authorization of appropriations for military 
     construction for the Navy by $31.2 million for this project. 
     The conferees expect the Secretary of the Navy to carry out 
     this project in fiscal year 2007 using incremental 
     appropriations, as was initially proposed by the Department 
     of the Navy during the preparation of the budget request for 
     fiscal year 2007.
       The conferees agree to decrease the authorization of 
     appropriations for military construction for the Navy by $1.4 
     million for a project to construct an addition to Hockmuth 
     Hall, Marine Corps Base Quantico, Virginia due to an error in 
     the amount included in the budget request for fiscal year 
     2007.

                     Legislative Provisions Adopted

     Authorized Navy construction and land acquisition projects 
         (sec. 2201)
       The House bill contained a provision (sec. 2201) that would 
     authorize Navy military construction projects in fiscal year 
     2007.
       The Senate amendment contained a similar provision (sec. 
     2201).
       The conference agreement includes this provision. The 
     amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of Division B of this 
     conference report entitled ``Military Construction 
     Authorizations for Fiscal Year 2007'' provides the binding 
     list of specific construction projects authorized at each 
     location.
     Family housing (sec. 2202)
       The House bill contained a provision (sec. 2202) that would 
     authorize new construction and planning and design of family 
     housing units for the Navy in fiscal year 2007.
       The Senate amendment contained a similar provision (sec. 
     2202).
       The conference agreement includes this provision.
       The amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of Division B of this 
     conference report entitled ``Military Construction 
     Authorizations for Fiscal Year 2007'' provides the binding 
     list of specific construction projects authorized at each 
     location.
     Improvements to military family housing units (sec. 2203)
       The House bill contained a provision (sec. 2203) that would 
     authorize improvements to existing units of Navy family 
     housing in fiscal year 2007.
       The Senate amendment contained a similar provision (sec. 
     2203).
       The conference agreement includes this provision.
     Authorization of appropriations, Navy (sec. 2204)
       The House bill contained a provision (sec. 2204) that would 
     authorize specific appropriations for each line item 
     contained in the Navy's military construction budget in 
     fiscal year 2007. The provision would also provide an overall 
     limit on the amount the Navy is authorized to spend on 
     military construction projects in fiscal year 2007.
       The Senate amendment contained a similar provision (sec. 
     2204).
       The conference agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2004, 2005, and 2006 projects (sec. 2205)
       The House bill contained a provision (sec. 2205) that would 
     amend section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 2004 (division B of Public 
     Law 108-136), as amended, and the Military Construction 
     Authorization Act for Fiscal Year 2005 (division B of Public 
     Law 108-375), as amended, to consolidate into one project the 
     authorities currently provided in two separate projects for 
     the construction of an outlying landing field at Washington 
     County, North Carolina.
       The Senate amendment contained a provision (sec. 2205) that 
     would amend section 2201 of the Military Construction 
     Authorization Act for Fiscal Year 2006 (division B of Public 
     Law 109-163) to change project authorizations for Marine 
     Corps Base, Camp Pendleton, California and Marine Corps Base, 
     Quantico, Virginia.
       The Senate recedes with an amendment that would change a 
     project authorization for Marine Corps Base, Camp Pendleton, 
     California.

                         TITLE XXIII--AIR FORCE

                              Budget Item

     Overview
       The budget request included $1,156.1 million for military 
     construction and $1,938.2 million for family housing for the 
     Air Force in fiscal year 2007.
       The House bill would authorize appropriations of $1,233.7 
     million for military construction and $1,924.2 million for 
     family housing.
       The Senate amendment would authorize appropriations of 
     $1,258.3 million for military construction and $1,937.2 
     million for family housing.
       The conferees agree to authorize appropriations of $1,308.2 
     million for military construction and $1,923.2 million for 
     family housing for the Air Force in fiscal year 2007.
       The conferees agree to decrease the authorization of 
     appropriations for military construction for the Air Force by 
     $15.5 million for a project to construct a large vehicle 
     inspection center and access road at Andersen Air Force Base, 
     Guam due to the lack of a comprehensive masterplan that 
     incorporates all proposed infrastructure and facility 
     projects and investments required to support new missions in 
     Guam, including the relocation of 7,000 U.S. Marines from 
     Okinawa, Japan, to Guam.
       The conferees agree to decrease the authorization of 
     appropriations for military construction for the Air Force by 
     $9.3 million for a project to construct a dormitory at Kunsan 
     Air Base, Republic of Korea due to a favorable bid climate in 
     the country.
       The conferees agree to decrease the authorization of 
     appropriations for military construction for the Air Force by 
     $14.2 million for a project to construct a common battlefield 
     airman training complex at an unspecified worldwide location 
     due to concerns with the status of an environmental impact 
     analysis.
       The conferees agree to decrease the authorization of 
     appropriations for military construction for the Air Force by 
     $26.0 million for a project to construct a Global Hawk 
     aircraft maintenance and operations complex at Naval Base 
     Sigonella, Italy because approval from the host nation to 
     proceed with the project has not yet been received.
       The conferees agree to decrease the authorization of 
     appropriations for family housing military construction for 
     the Air Force by $1.0 million for a project to replace 
     housing at Minot Air Force Base, North Dakota due to the cost 
     efficiencies gained by the substantial scope of the project.
       The conferees agree to decrease the authorization of 
     appropriations for family

[[Page 21197]]

     housing military construction for the Air Force by $14.0 
     million for a project to replace housing at Ramstein Air 
     Base, Germany due to errors in the budget request for fiscal 
     year 2007 in the calculation of supporting costs for the 
     project.
       The conferees agree to decrease the authorization of 
     appropriations for military construction for the Air Force by 
     $8.5 million for planning and design due to excess amounts in 
     the budget request for fiscal year 2007 identified by the Air 
     Force, which would be available for other projects.
       The conferees agree to change a project title for the Air 
     Force at Cape Canaveral, Florida in the table entitled 
     ``Military Construction Authorizations for Fiscal Year 
     2006,'' as contained in the statement of managers 
     accompanying the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163), from ``Satellite 
     Processing Operations Support Facility'' to ``Satellite Alert 
     Facility.''

                     Legislative Provisions Adopted

     Authorized Air Force construction and land acquisition 
         projects (sec. 2301)
       The House bill contained a provision (sec. 2301) that would 
     authorize Air Force military construction projects in fiscal 
     year 2007.
       The Senate amendment contained a similar provision (sec. 
     2301).
       The conference agreement includes this provision.
       The amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of Division B of this 
     conference report entitled ``Military Construction 
     Authorizations for Fiscal Year 2007'' provides the binding 
     list of specific construction projects authorized at each 
     location.
     Family housing (sec. 2302)
       The House bill contained a provision (sec. 2302) that would 
     authorize new construction and planning and design of family 
     housing units for the Air Force in fiscal year 2007.
       The Senate amendment contained a similar provision (sec. 
     2302).
       The conference agreement includes this provision.
       The amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of division B of this 
     conference report entitled ``Military Construction 
     Authorizations for Fiscal Year 2007'' provides the binding 
     list of specific construction projects authorized at each 
     location.
     Improvements to military family housing units (sec. 2303)
       The House bill contained a provision (sec. 2303) that would 
     authorize improvements to existing units of Air Force family 
     housing in fiscal year 2007.
       The Senate amendment contained a similar provision (sec. 
     2303).
       The conference agreement includes this provision.
     Authorization of appropriations, Air Force (sec. 2304)
       The House bill contained a provision (sec. 2304) that would 
     authorize specific appropriations for each line item 
     contained in the Air Force's military construction budget in 
     fiscal year 2007. The provision would also provide an overall 
     limit on the amount the Air Force is authorized to spend on 
     military construction projects in fiscal year 2007.
       The Senate amendment contained a similar provision (sec. 
     2304).
       The conference agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2006 project (sec. 2305)
       The Senate amendment contained a provision (sec. 2305) that 
     would amend section 2301 of the Military Construction 
     Authorization Act for Fiscal Year 2006 (division B of Public 
     Law 109-163) to decrease a project authorization for MacDill 
     Air Force Base, Florida.
       The House bill contained no similar provision.
       The House recedes.

                        Item of Special Interest

     Military construction project for Phase 1 of a Basic 
         Expeditionary Airman Skill Training Campus at Lackland 
         Air Force Base, Texas
       The conferees note that the Chief of Staff of the Air Force 
     recently requested additional authorization for a 
     ``critical'' military construction requirement not included 
     in the President's budget request for fiscal year 2007. The 
     conferees agree that the construction of Phase 1 of a Basic 
     Expeditionary Airman Skill Training Campus at Lackland Air 
     Force Base, Texas could significantly enhance the ability of 
     the Air Force to deploy in expeditionary environments. The 
     conferees note that the Secretary of the Air Force currently 
     has authorities provided by Congress to address urgent, 
     unforeseen military construction requirements. Section 2803 
     of title 10, United States Code, authorizes the Secretary 
     concerned to carry out a military construction project not 
     otherwise authorized by law if determined to be vital to the 
     national security or to the protection of health, safety, or 
     the quality of the environment and urgent enough not to wait 
     for the next budget cycle.
       Therefore, the conferees encourage the Secretary of the Air 
     Force to use this authority to carry out this military 
     construction project, if the Secretary of the Air Force 
     determines it is a critical requirement, using amounts from 
     within the total authorization of appropriations for military 
     construction for the Air Force included in this Act.

                      TITLE XXIV--DEFENSE AGENCIES

                              Budget Item

     Overview
       The budget request included $1,339.2 million for military 
     construction (including construction of chemical 
     demilitarization facilities) and $59.8 million for family 
     housing for defense agencies in fiscal year 2007.
       The House bill would authorize appropriations of $1,283.1 
     million for military construction and $59.8 million for 
     family housing.
       The Senate amendment would authorize appropriations of 
     $1,344.7 million for military construction and $59.8 million 
     for family housing.
       The conferees agree to authorize appropriations of $1,286.2 
     million for military construction and $59.8 million for 
     family housing for defense agencies in fiscal year 2007.
       The conferees agree to decrease the authorization of 
     appropriations for military construction for the TRICARE 
     Management Agency by $41.4 million for a project to replace 
     the clinic at MacDill Air Force Base, Florida. The conferees 
     agree to fully authorize the project and expect the Director 
     of Health Affairs to carry out this project in fiscal year 
     2007 using incremental appropriations, as was initially 
     proposed by the TRICARE Management Agency during the 
     preparation of the budget request for fiscal year 2007.
       The conferees agree to decrease the authorization of 
     appropriations for military construction for the defense 
     agencies by $30.0 million for a project to construct 
     increment 2 of a regional security operations center at Fort 
     Gordon, Georgia due to delays in the award of the 
     construction contract.
       The conferees agree to decrease the authorization of 
     appropriations for military construction for the defense 
     agencies by $4.5 million for the first phase of a project to 
     upgrade utilities at the headquarters complex at Fort Meade, 
     Maryland. The conferees support the requirement to upgrade 
     the existing Supervisory Control and Data Acquisition system 
     servers, workstations, and associated software to improve the 
     energy control and management systems and encourage the 
     Director of the National Security Agency to fund the 
     improvements with appropriations provided for operation and 
     maintenance.

                     Legislative Provisions Adopted

     Authorized Defense Agencies construction and land acquisition 
         projects (sec. 2401)
       The House bill contained a provision (sec. 2401) that would 
     authorize Defense Agencies military construction projects in 
     fiscal year 2007.
       The Senate amendment contained a similar provision (sec. 
     2401).
       The conference agreement includes this provision.
       The amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of Division B of this 
     conference report entitled ``Military Construction 
     Authorizations for Fiscal Year 2007'' provides the binding 
     list of specific construction projects authorized at each 
     location.
     Family housing (sec. 2402)
       The House bill contained a provision (sec. 2402) that would 
     authorize construction and planning and design of family 
     housing units for defense agency activities in fiscal year 
     2007.
       The Senate amendment contained a similar provision (sec. 
     2402).
       The conference agreement includes this provision.
       The amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of Division B of this 
     conference report entitled ``Military Construction 
     Authorizations for Fiscal Year 2007'' provides the binding 
     list of specific construction projects authorized at each 
     location.
     Energy conservation projects (sec. 2403)
       The House bill contained a provision (sec. 2403) that would 
     authorize the Secretary of Defense to carry out energy 
     conservation projects.
       The Senate amendment contained a similar provision (sec. 
     2403).
       The conference agreement includes this provision.
     Authorized base closure and realignment activities funded 
         through Department of Defense Base Closure Account 2005 
         (sec. 2404)
       The House bill contained a provision (sec. 2404) that would 
     authorize the amount for base closure and realignment (BRAC) 
     activities and projects in fiscal year 2007. The provision 
     would also amend the Military Construction Authorization Act 
     for Fiscal Year 2006 (division B of Public Law 109-163) to 
     authorize the amount for BRAC activities and projects for 
     fiscal year 2006.
       The Senate amendment contained no similar provision.

[[Page 21198]]

       The Senate recedes.
     Authorization of appropriations, Defense Agencies (sec. 2405)
       The House bill contained a provision (sec. 2405) that would 
     authorize specific appropriations for each line item 
     contained in the Defense Agencies' military construction 
     budget in fiscal year 2007. The provision would also provide 
     an overall limit on the amount the Defense Agencies are 
     authorized to spend on military construction projects in 
     fiscal year 2007.
       The Senate amendment contained a similar provision (sec. 
     2404).
       The conference agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2006 project (sec. 2406)
       The House bill contained a provision (sec. 2406) that would 
     amend the Military Construction Authorization Act for Fiscal 
     Year 2006 (division B of Public Law 109-163) to increase 
     project authorizations for the National Security Agency for 
     Augusta, Georgia; Kunia, Hawaii; and Menwith Hill, United 
     Kingdom.
       The Senate amendment contained a similar provision (sec. 
     2405).
       The House recedes with an amendment that would increase the 
     project authorization for the National Security Agency for 
     Menwith Hill, United Kingdom.
       The conferees note that the project authorizations for the 
     National Security Agency for Augusta, Georgia and Kunia, 
     Hawaii were amended by sections 7016 and 7017 of the 
     Emergency Supplemental Appropriations Act for Defense, the 
     Global War on Terror, and Hurricane Recovery, 2006 (Public 
     Law 109-234).

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

                              Budget Item

     Overview
       The budget request included $221.0 million for the North 
     Atlantic Treaty Organization Security Investment program.
       The House bill would authorize appropriations of $201.0 
     million, a decrease of $20.0 million.
       The Senate amendment would authorize appropriations of 
     $206.0 million, a decrease of $15.0 million.
       The conferees agree to authorize appropriations of $201.0 
     million, a decrease of $20.0 million.

                     Legislative Provisions Adopted

     Authorized NATO construction and land acquisition projects 
         (sec. 2501)
       The House bill contained a provision (sec. 2501) that would 
     authorize the Secretary of Defense to make contributions to 
     the North Atlantic Treaty Organization Security Investment 
     program in an amount equal to the sum of the amount 
     specifically authorized elsewhere in this conference report, 
     and the amount of recoupment due to the United States for 
     construction previously financed by the United States.
       The Senate amendment contained an identical provision (sec. 
     2501).
       The conference agreement includes this provision.
     Authorization of appropriations, NATO (sec. 2502)
       The House bill contained a provision (sec. 2502) that would 
     authorize appropriation of $200.9 million for the U.S. 
     contribution to the North Atlantic Treaty Organization 
     Security Investment program.
       The Senate amendment contained a similar provision (sec. 
     2502).
       The Senate recedes.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

                              Budget Item

     Overview
       The budget request included $858.8 million for military 
     construction for National Guard and reserve facilities in 
     fiscal year 2007.
       The House bill would authorize appropriations of $1,012.7 
     million.
       The Senate amendment would authorize appropriations of 
     $1,052.9 million.
       The conferees agree to authorize appropriations of $1,153.1 
     million for National Guard and reserve facilities in fiscal 
     year 2007, as set forth in the following table:

        Reserve Component                                  $ (millions)
Army National Guard...............................................561.4
Air National Guard................................................294.3
Army Reserve......................................................190.6
Naval and Marine Corps Reserve.....................................50.0
Air Force Reserve..................................................56.8
                                                       ________________
                                                       
  Total.........................................................1,153.1

       The conferees agree to decrease the authorization of 
     appropriations for military construction for the Naval and 
     Marine Corps Reserve by $5.2 million for a project to 
     relocate a reserve center at Camp Lejeune, North Carolina due 
     to a notification received by the Secretary of the Navy that 
     the project is no longer required.

                     Legislative Provision Adopted

     Authorized Guard and Reserve construction and land 
         acquisition projects (sec. 2601)
       The House bill contained a provision (sec. 2601) that would 
     authorize appropriations for military construction for the 
     Guard and reserve components in fiscal year 2007.
       The Senate amendment contained a similar provision (sec. 
     2601).
       The conference agreement includes this provision.
       A State list of projects contained in the table at the 
     beginning of Division B of this conference report entitled 
     ``Military Construction Authorization for Fiscal Year 2007'' 
     provides the binding list of specific construction projects 
     authorized at each location.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

                     Legislative Provisions Adopted

     Expiration of authorizations and amounts required to be 
         specified by law (sec. 2701)
       The House bill contained a provision (sec. 2701) that would 
     provide that authorizations for military construction 
     projects, repair of real property, land acquisition, family 
     housing projects and facilities, contributions to the North 
     Atlantic Treaty Organization Security Investment program, and 
     National Guard and reserve projects will expire on October 1, 
     2009, or the date of enactment of an act authorizing funds 
     for military construction for fiscal year 2010, whichever is 
     later. This requirement would not apply to funds obligated 
     prior to the expiration date.
       The Senate amendment contained an identical provision (sec. 
     2701).
       The conference agreement includes this provision.
     Extension of authorizations of certain fiscal year 2004 
         projects (sec. 2702)
       The Senate amendment contained a provision (sec. 2702) that 
     would provide for the extension of authorizations of certain 
     fiscal year 2004 military construction projects until October 
     1, 2007, or the date of enactment of an act authorizing funds 
     for military construction for fiscal year 2008, whichever is 
     later.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete 
     certain projects for which the military department concerned 
     has notified the conferees that the extension is no longer 
     required.
     Extension of authorizations of certain fiscal year 2003 
         projects (sec. 2703)
       The Senate amendment contained a provision (sec. 2703) that 
     would provide for the extension of authorizations of certain 
     fiscal year 2003 military construction projects until October 
     1, 2007, or the date of enactment of an act authorizing funds 
     for military construction for fiscal year 2008, whichever is 
     later.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Effective date (sec. 2704)
       The House bill contained a provision (sec. 2702) that would 
     provide that titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of 
     this Act shall take effect on October 1, 2006, or the date of 
     enactment of this Act, whichever is later.
       The Senate amendment contained an identical provision (sec. 
     2704).
       The conference agreement includes this provision.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

                       Items of Special Interest

     Incremental funding of military construction projects
       The conferees note that, in a memo dated January 10, 2006, 
     the Associate Director of National Security Programs in the 
     Office of Management and Budget (OMB) provided guidance to 
     the Under Secretary of Defense (Comptroller) and Chief 
     Financial Officer about requests for incremental funding of 
     military construction projects. OMB has stated the intent to 
     limit incremental funding of military construction projects 
     to an exceptional practice, as intended by OMB Circular A-11. 
     This guidance represents a change in policy for the budgeting 
     of certain military construction projects.
       The conferees acknowledge that requesting full funding to 
     ensure a military construction project results in a complete 
     and useable facility, or useable improvement to an existing 
     facility, should be the preferred practice consistent with 
     law and current policy to ensure an accurate accounting of 
     all obligations incurred by the Federal Government. The 
     conferees also acknowledge that, for certain military 
     construction projects estimated to exceed $50.0 million and 
     where the construction period is planned to exceed 2 years, 
     Congress has supported the use of incremental funding to 
     address the fact that not all military construction funds 
     appropriated by Congress for a project will be expended in 
     the first year. In these cases, the Department of Defense has 
     had the option of requesting only those appropriated amounts 
     expected to be expended in the budget year, and notifying 
     potential contractors that the project's completion is 
     subject to subsequent appropriations. This option then allows 
     the Department to address additional military requirements in 
     the military construction budget request; and accelerating 
     the completion of critical projects for military readiness, 
     operations, and service members' quality of life. Because of 
     the efficiencies gained

[[Page 21199]]

     by this method, the conferees' agreement includes the use of 
     incremental funding not proposed in the budget request for 
     certain military construction projects.
       The conferees also note that the Department has requested 
     incremental funding for single military construction projects 
     that will construct multiple complete and useable facilities. 
     The conferees are concerned that this practice will encourage 
     the bundling of facility requirements into very large 
     contracts, thereby curtailing contractor competition. 
     Therefore, the conferees encourage the Department to avoid 
     the use of incremental funding requests for projects with 
     multiple complete and useable facilities, except in cases 
     where operational requirements dictate a compelling need for 
     facilities.
     Updating foreign currency fluctuation adjustment for certain 
         military family housing leases in Korea
       The conferees note that section 2801 of the National 
     Defense Authorization Act for Fiscal Year 2003 (Public Law 
     107-314) amended section 2828 of title 10, United States 
     Code, to authorize the Secretaries of military departments to 
     lease an additional 2,800 family housing units in Korea at a 
     maximum amount of $35,000 per unit per year. This authority 
     was in addition to existing authority to lease a certain 
     number of family housing units at $25,000 per unit per year, 
     which was provided by Congress in 1987. Both authorities 
     include a statutory requirement in section 2828 to adjust the 
     maximum amounts annually to account for foreign currency 
     fluctuation and changes to the consumer price index.
       Congress clearly intended that section 2801 provide the 
     Secretary concerned permanent authority to lease a certain 
     number of family housing units in Korea at a greater maximum 
     amount that was then currently authorized by statute. 
     Therefore, any adjustments for foreign currency fluctuation 
     and the consumer price index to maximum lease amounts should 
     reflect this intent.
       As such, the conferees direct the Secretary of a military 
     department, in making adjustments required by paragraph 
     (5)(B) of section 2828(e), to the maximum lease amount 
     provided in paragraph (4) of such section for up to 2,800 
     units of family housing in Korea subject to a maximum lease 
     amount of $35,000 per unit per year, to base such adjustments 
     on the same beginning date specified in law for adjustments 
     required by paragraph (5)(A) of such section.

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

                     Legislative Provisions Adopted

     Increase in maximum annual amount authorized to be obligated 
         for emergency military construction (sec. 2801)
       The House bill contained a provision (sec. 2801) that would 
     amend section 2803 of title 10, United States Code, to 
     increase from $45.0 million to $60.0 million the maximum 
     amount of funds the Secretary of each military department may 
     annually obligate using emergency construction authorities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would increase 
     from $45.0 million to $50.0 million the maximum amount of 
     funds the Secretary concerned may annually obligate using 
     emergency construction authorities.
     One-year extension of temporary, limited authority to use 
         operation and maintenance funds for construction projects 
         outside the United States (sec. 2802)
       The House bill contained a provision (sec. 2810) that would 
     extend through 2007 the authority provided by section 2808 of 
     the National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136), which permits the Secretary of Defense 
     to utilize operation and maintenance funds to construct 
     facilities necessary for temporary operational requirements 
     related to a declaration of war, national emergency, or 
     contingency.
       The Senate amendment contained a similar provision (sec. 
     2801) that would extend the authority by 3 years.
       The Senate recedes.
     Repeal of requirement to determine availability of suitable 
         alternative housing for acquisition in lieu of 
         construction of new family housing (sec. 2803)
       The Senate amendment contained a provision (sec. 2808) that 
     would repeal section 2823 of title 10, United States Code, 
     which requires the Secretaries of military departments to 
     consult with the Secretary of Housing and Urban Development 
     on the availability of suitable alternate housing before 
     entering into contracts to construct authorized family 
     housing units in the United States.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Authority to continue to occupy leased family housing for 
         United States Southern Command personnel (sec. 2804)
       The Senate amendment contained a provision (sec. 2816) that 
     would provide temporary authority to the Secretary of the 
     Army to manage the occupancy of housing units leased under 
     the authority of section 2828(b)(4) of title 10, United 
     States Code, in a manner consistent with Army housing policy 
     as it relates to allowing the family members of a member of 
     the armed forces deployed overseas on an unaccompanied tour 
     to continue to occupy military housing.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Consideration of alternative and more efficient uses for 
         general officer and flag officer quarters in excess of 
         6,000 square feet (sec. 2805)
       The House bill contained a provision (sec. 2808) that would 
     amend section 2831 of title 10, United States Code, to 
     require the Secretary of Defense to identify and consider 
     alternative uses for general and flag officer housing units 
     that exceed 6,000 square feet.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Modification of notification requirements related to cost 
         variation authority (sec. 2806)
       The Senate amendment contained a provision (sec. 2803) that 
     would amend section 2853(c) of title 10, United States Code, 
     to modify the requirement for the Secretary of a military 
     department to notify the congressional defense committees of 
     a variation in the cost of a military construction contract.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Consideration of local comparability of floor areas in 
         construction, acquisition, and improvement to military 
         unaccompanied housing (sec. 2807)
       The House bill contained a provision (sec. 2802) that would 
     amend section 2826 of title 10, United States Code, to 
     require the Secretary concerned to ensure that floor areas in 
     unaccompanied housing be built to standards consistent with 
     local private construction.
       The Senate amendment contained a similar provision (sec. 
     2804)
       The House recedes with a technical amendment.
       The conferees encourage the Secretary of the Navy to 
     implement, for the future construction, acquisition, and 
     improvement of military unaccompanied housing, a policy which 
     provides a consistent floor area standard between the Navy 
     and the Marine Corps, and which does not exceed the floor 
     areas of similar local private housing.
     Certification required for military construction projects for 
         facilities designed to provide training in urban 
         operations (sec. 2808)
       The Senate amendment contained a provision (sec. 2811) that 
     would restrict the obligation of funds for military 
     construction projects that would provide training in urban 
     operations, including urban assault courses, range complexes, 
     shoot houses, and combined arms training facilities, 
     beginning in fiscal year 2007, until the Under Secretary of 
     Defense for Personnel and Readiness certifies to the 
     congressional defense committees that the Department of 
     Defense has developed a training strategy and assessed the 
     project against that strategy.
       The House bill contained no similar provision.
       The House recedes with an amendment that would allow the 
     Secretary of Defense to obligate funds for such projects, if 
     carried out under specific emergency authorities identified 
     in this section.
     Authority to carry out military construction projects in 
         connection with industrial facility investment program 
         (sec. 2809)
       The Senate amendment contained a provision (sec. 2802) that 
     would authorize the Secretary of Defense to carry out a 
     military construction project not previously authorized, 
     using funds appropriated or otherwise made available for that 
     purpose, to carry out activities to reengineer industrial 
     processes in support of the goals of section 2474(a)(2) of 
     title 10, United States Code.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees note that this section authorizes the 
     Secretary to include in the annual budget request for 
     military construction an unspecified authorization for an 
     amount to be used for projects not otherwise authorized, 
     similar to the Energy Conservation Investment Program. The 
     conferees expect that projects submitted by the services, 
     which meet guidelines established for process improvements in 
     industrial facilities, will compete for funding based on an 
     assessment of their value and rate of economic return. The 
     conferees intend for this authority to be used by the 
     Secretary to encourage investment in process improvements to 
     enhance the performance of the Department's equipment 
     maintenance facilities.
     Repeal of special requirement for military construction 
         contracts on Guam (sec. 2810)
       The House bill contained a provision (sec. 2804) that would 
     repeal section 2864 of title

[[Page 21200]]

     10, United States Code, which places special limitations on 
     military construction contracts in Guam.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees note that while the Davis-Bacon law is not 
     applicable to military construction projects in Guam, in 
     general, federal labor laws, including the Fair Labor 
     Standards Act and the federal minimum wage, do apply in Guam. 
     The conferees expect the military departments, the government 
     of Guam, the U.S. Commissioner of Immigration and 
     Naturalization, and other federal entities as appropriate, to 
     ensure that non-immigrant alien workers who perform 
     construction work for the Department of Defense in Guam are 
     treated fairly and in accordance with applicable law.
     Temporary expansion of authority to convey property at 
         military installations to support military construction 
         (sec. 2811)
       The House bill contained a provision (sec. 2806) that would 
     amend section 2869 of title 10, United States Code, to 
     authorize the Secretaries of the military departments to 
     exchange excess property at any military installation for 
     construction projects, land, housing, or to support 
     agreements to limit encroachments under section 2684a of 
     title 10, United States Code.
       The Senate amendment contained a provision (sec. 2807) that 
     would repeal section 2869 to authorize the Secretary of a 
     military department to transfer property at military 
     installations that have been closed or are subject to closure 
     to persons who, in exchange, construct or provide family 
     housing, unaccompanied housing, and military construction 
     activities.
       The Senate recedes with an amendment that would establish 
     an expiration date of September 30, 2008, to the authority 
     granted to the Secretaries of the military departments to 
     exchange real property, deemed excess to the requirements of 
     the Department of Defense, in return for the construction of 
     new facilities.
     Pilot projects for acquisition or construction of military 
         unaccompanied housing (sec. 2812)
       The House bill contained a provision (sec. 2807) that would 
     amend section 2881a of title 10, United States Code, to 
     reduce notification and wait periods required before the 
     Secretary of the Navy may enter into a contract for the 
     privatization of unaccompanied housing using the authorities 
     in section 2881a. The provision would also extend from 
     September 30, 2007, to September 30, 2011, the expiration of 
     the pilot authority in section 2881a and increase the number 
     of pilot projects authorized from three to six.
       The Senate amendment contained a provision (sec. 2810) that 
     would amend section 2881a to extend the expiration date of 
     the authorization for the pilot projects for unaccompanied 
     housing privatization from September 30, 2007, to September 
     30, 2009.
       The House recedes.

        Subtitle B--Real Property and Facilities Administration

     Congressional notice requirements, in advance of acquisition 
         of land by condemnation for military purposes (sec. 2821)
       The House bill contained a provision (sec. 2825) that would 
     express the sense of Congress that the Secretary of Defense, 
     when acquiring land for military purposes, should make every 
     effort to do so by purchases from willing sellers, and that 
     the use of condemnation, eminent domain, or seizure 
     procedures should only be employed as a matter of last resort 
     in cases of compelling national security requirements. The 
     provision would also amend section 2663 of title 10, United 
     States Code, to require prior notification to Congress before 
     the Secretary of Defense may begin condemnation, eminent 
     domain, or seizure procedures to acquire property.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify the 
     reporting requirement. The amendment would also authorize the 
     Secretary of a military department, in cases where the 
     requirement is vital to national security or where any delay 
     would be detrimental to life, health, or safety, to begin 
     legal proceedings to acquire any interest in land through the 
     use of condemnation, eminent domain, or seizure procedures 
     prior to congressional notification. In such cases, the 
     Secretary concerned would be required to notify the 
     congressional defense committees within 7 days of the 
     commencement of legal proceedings.
     Consolidation of Department of Defense authorities regarding 
         granting of easements for rights-of-way (sec. 2822)
       The House bill contained a provision (sec. 2821) that would 
     amend section 2668 of title 10, United States Code, to 
     consolidate and make technical corrections to authorities 
     available to the Secretaries of the military departments to 
     grant real property easements.
       The Senate amendment contained a similar provision (sec. 
     2821).
       The Senate recedes.
     Authority to grant restrictive easements for conservation 
         purposes in connection with land conveyances (sec. 2823)
       The House bill contained a provision (sec. 2822) that would 
     authorize the Secretaries of the military departments to 
     grant restrictive easements for conservation purposes to 
     State or local governments, or qualified organizations, in 
     connection with the conveyance of real property.
       The Senate amendment contained a similar provision (sec. 
     2822).
       The Senate recedes with a clarifying amendment that would 
     limit the granting of such restrictive easements unless the 
     proposed recipient of the easement consents to the receipt of 
     the easement.
     Maximum term of leases for structures and real property 
         relating to structures in foreign countries needed for 
         purposes other than family housing (sec. 2824)
       The House bill contained a provision (sec. 2823) that would 
     amend section 2675 of title 10, United States Code, to 
     increase from 5 years to 10 years the maximum time period 
     authorized for the lease of a structure required for a 
     military purpose other than family housing in a foreign 
     country.
       The Senate amendment contained a similar provision (sec. 
     2826).
       The Senate recedes.
     Consolidation of laws relating to transfer of Department of 
         Defense real property within the Department of Defense 
         and to other Federal agencies (sec. 2825)
       The House bill contained a provision (sec. 2824) that would 
     amend section 2696 of title 10, United States Code, to 
     consolidate and clarify the requirement for the Secretary of 
     Defense to screen for use by the Department of Defense or 
     other Federal agencies proposed transfers or conveyances of 
     real property currently deeded to the Department.
       The Senate amendment contained a similar provision (sec. 
     2823).
       The Senate recedes with a technical amendment.
     Defense access road program (sec. 2826)
       The House bill contained a provision (sec. 2826) that would 
     amend section 2837 of the Military Construction Authorization 
     Act for Fiscal Year 2006 (division B of Public Law 109-163) 
     to add the consideration of transit systems to the 
     requirement for the Secretary of Defense to conduct a study 
     of the impact to local transportation infrastructure around 
     military installations affected by significant personnel 
     realignments.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Reports on Army operational ranges (sec. 2827)
       The Senate amendment contained a provision (sec. 2828) that 
     would require the Secretary of the Army to submit a report to 
     the congressional defense committees not later than November 
     30, 2006, containing an analysis of any potential expansion 
     of the Pinon Canyon Maneuver Site, Fort Carson, Colorado. The 
     provision would also restrict the Secretary from carrying out 
     any actions related to the expansion of the site until after 
     30 days of receipt of the report by the congressional defense 
     committees. The provision would also require the Secretary to 
     submit a report to the congressional defense committees not 
     later than February 1, 2007, containing an assessment of 
     training ranges operated by the Army to support major 
     training units. The House bill contained no similar 
     provision.
       The House recedes with a technical amendment. The conferees 
     agree to require the Secretary to include other types of Army 
     operational ranges in the report.

                Subtitle C--Base Closure and Realignment

     Modification of deposit requirements in connection with lease 
         proceeds received at military installations approved for 
         closure or realignment after January 1, 2005 (sec. 2831)
       The House bill contained a provision (sec. 2831) that would 
     amend section 2667 of title 10, United States Code, to 
     authorize the Secretary of Defense to deposit into the 
     appropriate base closure and realignment account lease 
     proceeds received at a military installation closed or 
     realigned by the 2005 Defense Base Closure and Realignment 
     round.
       The Senate amendment contained a similar provision (sec. 
     2833).
       The House recedes with a clarifying amendment.
     Report on Air Force and Air National Guard bases affected by 
         2005 round of defense base closure and realignment (sec. 
         2832)
       The Senate amendment contained a provision (sec. 2834) that 
     would require the Secretary of the Air Force to submit to the 
     congressional defense committees a report not later than 
     January 1, 2007, on planning by the Department of the Air 
     Force for future roles and missions for each Air Force and 
     Air National Guard installation affected by the 2005 Defense 
     Base Closure and Realignment process.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

                      Subtitle D--Land Conveyances

     Conveyance of easement, Pine Bluff Arsenal, Arkansas (sec. 
         2841)
       The conferees agree to include a provision that would 
     authorize the Secretary of the Army to convey, without 
     consideration, to

[[Page 21201]]

     Jefferson County, Arkansas an easement over approximately 
     38.18 acres of property adjacent to Pine Bluff Arsenal, 
     Arkansas for the purpose of permitting the county to 
     construct, maintain, and operate a railroad on the property 
     encumbered by the easement. The provision would require the 
     Secretary to determine that the conveyance, and the 
     subsequent use of the easement by the county, would not 
     adversely impact the mission of Pine Bluff Arsenal.
     Modification of land transfer authority, Potomac Annex, 
         District of Columbia (sec. 2842)
       The Senate amendment contained a provision (sec. 2827) that 
     would amend section 2831 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201) 
     to authorize the Secretary of the Navy to convey, without 
     consideration other than certain reimbursement requirements, 
     to the United States Institute of Peace administrative 
     jurisdiction over one acre and two buildings located thereon, 
     known as building 6 and building 7, in addition to the 3 
     acres originally authorized.
       The House bill contained no similar amendment.
       The House recedes with a technical amendment.
     Land conveyance, Naval Air Station, Barbers Point, Hawaii 
         (sec. 2843)
       The House bill contained a provision (sec. 2841) that would 
     direct the Secretary of the Navy, not later than September 
     30, 2008, to dispose of approximately 499 acres at the former 
     Naval Air Station Barbers Point, Hawaii that are subject to 
     the Ford Island Master Development Agreement for the purpose 
     of promoting the beneficial development of the real property.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify the 
     action required to be completed by the Secretary by September 
     30, 2008.
       The conferees note the concurrence of the Secretary of the 
     Navy with this directive provision. The conferees also 
     acknowledge the special circumstances surrounding this parcel 
     of land and reaffirm a commitment to minimize the use of 
     legislation to direct the Secretaries of the military 
     departments to dispose of land under their jurisdiction.
     Land conveyances, Omaha, Nebraska (sec. 2844)
       The Senate amendment contained a provision (sec. 2843) that 
     would authorize the Secretaries of the Army and the Navy to 
     convey to the Metropolitan Community College area four 
     parcels of property consisting of approximately 12 acres 
     currently under the control of the Army and Navy Reserve at 
     the Fort Omaha campus of the College in Omaha, Nebraska for 
     educational purposes.
       The House bill contained no similar provision.
       The House recedes.
     Land conveyance, Hopkinton, New Hampshire (sec. 2845)
       The Senate amendment contained a provision (sec. 2854) that 
     would authorize the Secretary of the Army to convey to the 
     Town of Hopkinton, New Hampshire a parcel of property 
     consisting of approximately 90 acres known as Kast Hill for 
     the purpose of permitting the town to use the existing sand 
     and gravel resources on the property and to ensure perpetual 
     conservation of the property.
       The House bill contained no similar provision.
       The House recedes.
     Land conveyance, North Hills Army Reserve Center, Allison 
         Park, Pennsylvania (sec. 2846)
       The House bill contained a provision (sec. 2844) that would 
     authorize the Secretary of the Army to convey to the North 
     Allegheny School District a parcel of property consisting of 
     approximately 11 acres and containing the North Hills Army 
     Reserve Center in Allison Park, Pennsylvania for the purpose 
     of permitting the school district to use the property for 
     educational and recreational purposes and for related parking 
     facilities.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Transfer of jurisdiction, Fort Jackson, South Carolina (sec. 
         2847)
       The conferees agree to include a provision that would 
     authorize the Secretary of the Army to transfer, without 
     reimbursement, to the administrative jurisdiction of the 
     Secretary of Veterans Affairs a parcel of real property 
     consisting of approximately 600 acres at Fort Jackson, South 
     Carolina for the purpose of permitting the Secretary of 
     Veterans Affairs to establish a national cemetery on the 
     property.
     Sense of Congress regarding land conveyance involving Army 
         Reserve Center, Marshall, Texas (sec. 2848)
       The House bill contained a provision (sec. 2846) that would 
     express the sense of Congress that the Secretary of the Army 
     should consider the feasibility of conveying an Army Reserve 
     Center in Marshall, Texas to the Marshall-Harrison County 
     Veterans Association for the purpose of assisting in the 
     erection of a veteran's memorial, the creation of a park, and 
     the establishment of a museum honoring the sacrifices and 
     accomplishments of the veterans of the armed forces.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Modifications to land conveyance authority, Engineering 
         Proving Grounds, Fort Belvoir, Virginia (sec. 2849)
       The House bill contained a provision (sec. 2845) that would 
     amend section 2836 of the Military Construction Authorization 
     Act for Fiscal Year 2002 (division B of Public Law 107-107) 
     to authorize the Secretary of the Army to carry out an 
     alternate agreement with the Commonwealth of Virginia for the 
     design and construction of a parkway portion as part of the 
     conveyance of two parcels of real property totaling 182 acres 
     at the Engineering Proving Grounds, Fort Belvoir, Virginia.
       The Senate amendment contained a similar provision (sec. 
     2842)
       The Senate recedes.
     Land conveyance, Radford Army Ammunition Plant, New River 
         Unit, Virginia (sec. 2850)
       The House bill contained a provision (sec. 2843) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, to the Commonwealth of Virginia, on behalf of 
     the Virginia Department of Veterans Services, a parcel of 
     property consisting of approximately 85 acres located at the 
     Radford Army Ammunition Plant, Radford, Virginia for the 
     purpose of establishing a veterans' cemetery.
       The Senate amendment contained a similar provision (sec. 
     2841).
       The Senate recedes with a clarifying amendment.

                      Subtitle E--Energy Security

     Consolidation and enhancement of laws to improve Department 
         of Defense energy efficiency and conservation (sec. 2851)
       The Senate amendment contained a provision (sec. 2806) that 
     would amend section 2865 of title 10, United States Code, to 
     require the Secretary of Defense to designate energy 
     performance goals consistent, where appropriate, with the 
     Energy Policy Act of 2005 (Public Law 109-58). The provision 
     would also expand the application of the section to include 
     the consideration of alternate energy initiatives for 
     vehicles and military support equipment, and make other 
     technical clarifications. The provision would require the 
     Secretary to ensure energy efficient products that meet the 
     requirements of the Secretary are included in the 
     construction of new facilities for the Department of Defense.
       The House bill contained no similar provision.
       The House recedes with an amendment that would revise 
     various sections in title 10, United States Code, related to 
     energy usage and conservation, and would incorporate this 
     provision within the revision. Elsewhere in this report, the 
     conferees agree to include a separate provision on the use of 
     energy efficient products in the construction of new 
     facilities.
       The conferees intend for the Secretary to establish energy 
     performance goals across all aspects of military operations, 
     training, and the Department's facilities, which can be 
     evaluated on a consistent basis to determine progress towards 
     achievement. The conferees also acknowledge that certain 
     energy saving measures adopted by the Secretary may not 
     demonstrate an immediate economic payback. Therefore, the 
     conferees agree to expand the Secretary's flexibility to 
     evaluate energy conservation measures to include 
     consideration of alternate energy initiatives and energy 
     reduction performance goals, as opposed to requiring the 
     Secretary to assess measures based solely on a specific 
     economic return within 10 years to justify the investment.
     Department of Defense goal regarding use of renewable energy 
         to meet electricity needs (sec. 2852)
       The Senate amendment contained a provision (sec. 2829) that 
     would establish goals for the Department of Defense for the 
     use of renewable energy sources.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Congressional notification of cancellation ceiling for 
         Department of Defense energy savings performance 
         contracts (sec. 2853)
       The House bill contained a provision (sec. 2805) that would 
     amend section 2865 of title 10, United States Code, to 
     require a notice and wait period for the Secretary of Defense 
     before the award of an energy savings performance contract 
     that contains a cancellation ceiling in excess of $7.0 
     million.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Use of energy efficiency products in new construction (sec. 
         2854)
       The conferees agree to include a provision that would 
     require the Secretary of Defense to ensure energy efficient 
     products that meet the requirements of the Secretary are 
     included in the construction of new facilities for the 
     Department. These requirements

[[Page 21202]]

     were originally included in section 2806 of the Senate 
     amendment.

                       Subtitle F--Other Matters

     Availability of research and technical assistance under 
         Defense Economic Adjustment Program (sec. 2861)
       The Senate amendment contained a provision (sec. 2831) that 
     would amend section 2391 of title 10, United States Code, to 
     authorize the Secretary of Defense to award grants, conclude 
     cooperative agreements, or enter into contracts for research 
     and technical assistance.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Availability of community planning assistance relating to 
         encroachment of civilian communities on military 
         facilities used for training by the armed forces (sec. 
         2862)
       The House bill contained a provision (sec. 2851) that would 
     amend section 2391 of title 10, United States Code, to 
     authorize the Secretary of Defense to award grants for the 
     purposes of addressing encroachment upon state-owned and 
     operated National Guard facilities subject to significant use 
     by the armed forces.
       The Senate amendment contained a similar provision (sec. 
     2832).
       The Senate recedes with a technical amendment.
     Prohibitions against making certain military airfields or 
         facilities available for use by civil aircraft (sec. 
         2863)
       The House bill contained a provision (sec. 2852) that would 
     prohibit the Secretary of the Navy from entering into an 
     agreement that would allow the regular use of property at, or 
     conveyance of property for, civil aviation purposes at Marine 
     Corps Air Station and Marine Corps Base Camp Pendleton, 
     Marine Corps Air Station Miramar, and Naval Station North 
     Island, California.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Modification of certain transportation projects (sec. 2864)
       The Senate amendment contained a provision (sec. 2851) that 
     would amend section 1702 of the Safe, Accountable, Flexible, 
     Efficient Transportation Equity Act: A Legacy for Users 
     (Public Law 109-59) to clarify the purpose for a project 
     numbered 4651 authorized for Rickenbacker airport, Columbus, 
     Ohio.
       The House bill contained no similar provision.
       The House recedes with an amendment that would combine this 
     provision with a similar provision (sec. 2852) and would 
     amend sections 1702 and 1934 of the Safe, Accountable, 
     Flexible, Efficient Transportation Equity Act: A Legacy for 
     Users (Public Law 109-59) to clarify the purpose for projects 
     numbered 4333 and 196 authorized for Detroit, Michigan.
     Availability of funds for South County Commuter Rail project, 
         Providence, Rhode Island (sec. 2865)
       The Senate amendment contained a provision (sec. 1095) that 
     would make funds authorized by paragraphs (34) and (35) of 
     section 3034(d) of the Safe, Accountable, Flexible, Efficient 
     Transportation Equity Act: A Legacy for Users (Public Law 
     109-59) available for the purchase of commuter rail equipment 
     for the South County Commuter Rail project, Providence, Rhode 
     Island, upon the receipt by the Secretary of the Rhode Island 
     Department of Transportation of an approved environmental 
     assessment.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Fox Point Hurricane Barrier, Providence, Rhode Island (sec. 
         2866)
       The Senate amendment contained a provision (sec. 2853) that 
     would direct the Secretary of the Army to assume 
     responsibility for the annual operation and maintenance of 
     the Fox Point Hurricane Barrier, Providence, Rhode Island.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Federal funding for fixed guideway projects (sec. 2867)
       The Senate amendment contained a provision (sec. 2855) that 
     would direct certain requirements prescribed by the Federal 
     Transit Administration for cost effectiveness ratings not to 
     apply to the Northstar Corridor Commuter Rail project in 
     Minnesota.
       The House bill contained no similar provision.
       The House recedes.
     Feasibility study regarding use of General Services 
         Administration property for Fort Belvoir, Virginia, 
         realignment (sec. 2868)
       The conferees agree to include a provision that would 
     require the Secretary of the Army, in consultation with the 
     Administrator of General Services, to conduct a study that 
     considers the potential costs, benefits, feasibility, and 
     suitability of the exchange or purchase of property under the 
     control of the General Services Administration in 
     Springfield, Virginia.
       The conferees note that the relocation of thousands of 
     military and civilian personnel to Fort Belvoir, Virginia may 
     present significant transportation challenges. The conferees 
     have taken steps to address these concerns in three other 
     provisions in this report.
       The first provision would facilitate the construction of a 
     segment of the Fairfax County parkway on the former 
     Engineering Proving Grounds at Fort Belvoir.
       The second provision would urge the inclusion of mass 
     transit improvements in the defense access roads program. The 
     third provision would require the Secretary of the Army to 
     incorporate within an ongoing environmental impact assessment 
     a review of traffic infrastructure requirements, in 
     collaboration with other Federal, State, and local agencies, 
     at Fort Belvoir related to the impact of the realignment of 
     personnel.
       The conferees believe that the Army should make every 
     effort to proactively address the potential traffic 
     congestion that could result from the relocation of personnel 
     to Fort Belvoir. The conferees urge the Army to incorporate 
     as many transportation improvements as possible into plans to 
     support the arrival of these additional personnel.

                   Legislative Provisions Not Adopted

     Authority to use proceeds from sale of military family 
         housing to support military housing privatization 
         initiative
       The House bill contained a provision (sec. 2803) that would 
     amend section 2831 of title 10, United States Code, to 
     authorize the transfer of proceeds from the handling and 
     disposal of family housing units into the Department of 
     Defense Family Housing Improvement Fund, which is used to 
     support military family housing privatization activities.
       The Senate amendment contained no similar provision.
       The House recedes.
     Increase in thresholds for unspecified minor military 
         construction projects
       The Senate amendment contained a provision (sec. 2805) that 
     would amend section 2805(a)(1) of title 10, United States 
     Code, to raise the threshold of the cost of a construction 
     project authorized by this section from $1.5 million to $2.5 
     million. This provision would also raise the threshold of the 
     cost of a construction project intended solely to correct a 
     deficiency that is life-threatening, health-threatening, or 
     safety-threatening from $3.0 million to $4.0 million.
       The House bill contained no similar provision.
       The Senate recedes.
     Repeal of temporary minor military construction program
       The House bill contained a provision (sec. 2809) that would 
     repeal section 2810 of the Military Construction 
     Authorization Act for Fiscal Year 2006 (division B of Public 
     Law 109-163), which provides for temporary authority to 
     expend minor construction funds at increased limits for 
     construction of child development centers.
       The Senate amendment contained no similar provision.
       The House recedes.
     Updating foreign currency fluctuation adjustment for certain 
         military family housing leases in Korea
       The Senate amendment contained a provision (sec. 2809) that 
     would amend section 2828 of title 10, United States Code, to 
     modify the adjustments made by a Secretary of a military 
     department to maximum lease amounts for family housing in 
     Korea to account for foreign currency fluctuations.
       The House bill contained no similar provision.
       The Senate recedes.
     Naming of research laboratory at Air Force Rome Research 
         Site, Rome, New York in honor of Sherwood L. Boehlert, a 
         member of the House of Representatives
       The Senate amendment contained a provision (sec. 2813) that 
     would designate the new laboratory building at the Air Force 
     Rome Research Site, Rome, New York as the ``Sherwood L. 
     Boehlert Engineering Center.''
       The House bill contained no similar provision.
       The Senate recedes.
     Naming of administrative building at Joint Systems 
         Manufacturing Center in Lima, Ohio after Michael G. 
         Oxley, a member of the House of Representatives
       The Senate amendment contained a provision (sec. 2814) that 
     would designate the administrative building under 
     construction at the Joint Systems Manufacturing Center in 
     Lima, Ohio as the ``Michael G. Oxley Administration and 
     Technology Center.''
       The House bill contained no similar provision.
       The Senate recedes.
     Naming of military family housing facility at Fort Carson, 
         Colorado, in honor of Joel Hefley, a member of the House 
         of Representatives
       The Senate amendment contained a provision (sec. 2815) that 
     would require the Secretary of the Army to designate one of 
     the military family housing areas or facilities constructed 
     for Fort Carson, Colorado, using housing privatization 
     authorities provided by subchapter IV of chapter 169 of title 
     10,

[[Page 21203]]

     United States Code, in honor of Representative Joel Hefley.
       The House bill contained no similar provision.
       The Senate recedes.
     Authority to use excess property as exchange under agreements 
         to limit encroachments on military training, testing, and 
         operations
       The Senate amendment contained a provision (sec. 2824) that 
     would authorize the Secretary concerned to use land that is 
     determined to be excess to the needs of the Department of 
     Defense in an exchange under an agreement with eligible third 
     parties under section 2684a of title 10, United States Code, 
     to create buffer zones to address the use or development of 
     real property in the vicinity of a military installation to 
     prevent encroachment or preserve habitat that may relieve 
     environmental restrictions on military training, testing, or 
     operations.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that authority to use excess lands as 
     part of the contribution to the acquisition costs of real 
     property, or an interest in real property, as part of 
     agreements under section 2864a is included in section 2811 of 
     this report.
     Modification of utility system authority and related 
         reporting requirements
       The Senate amendment contained a provision (sec. 2825) that 
     would amend section 2688 of title 10, United States Code, to 
     modify the authority provided to the Secretary of a military 
     department for the conveyance of utility systems.
       The House bill contained no similar provision.
       The Senate recedes.
     Naming of Navy and Marine Corps Reserve Center at Rock 
         Island, Illinois, in honor of Lane Evans, a member of the 
         House of Representatives
       The Senate amendment contained a provision (sec. 2830) that 
     would designate the Navy and Marine Corps Reserve Center at 
     Rock Island, Illinois, in honor of Lane Evans, a member of 
     the House of Representatives.
       The House bill contained no similar provision.
       The Senate recedes.
     Modification of land acquisition authority, Perquimans 
         County, North Carolina
       The House bill contained a provision (sec. 2842) that would 
     amend section 2846 of the Military Construction Authorization 
     Act for Fiscal Year 2002 (division B of Public Law 107-107), 
     as amended by section 2865 of the Military Construction 
     Authorization Act for Fiscal Year 2005 (division B of Public 
     Law 108-375), to increase, from 840 acres to 1,540 acres, the 
     amount of acreage that the Secretary of the Navy is 
     authorized to acquire.
       The Senate amendment contained a similar provision (sec. 
     2812).
       The conference agreement does not include this provision. 
     The conferees note that the provision was included in the 
     Emergency Supplemental Appropriations Act for Defense, the 
     Global War on Terror, and Hurricane Recovery, 2006 (Public 
     Law 109-234).
     Highway projects, Detroit, Michigan
       The Senate amendment contained a provision (sec. 2852) that 
     would amend sections 1702 and 1934 of the Safe, Accountable, 
     Flexible, Efficient Transportation Equity Act: A Legacy for 
     Users (Public Law 109-59) to clarify the purpose for projects 
     numbered 4333 and 196 authorized for Detroit, Michigan.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to include this provision in section 
     2864 of this Act.

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

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

     Overview
       Title XXXI authorizes appropriations for atomic energy 
     defense activities of the Department of Energy for fiscal 
     year 2007, including: the purchase, construction, and 
     acquisition of plant and capital equipment; research and 
     development; nuclear weapons activities; naval nuclear 
     propulsion; environmental cleanup; operating expenses; and 
     other expenses necessary to carry out the purposes of the 
     Department of Energy Organization Act (Public Law 95-91). 
     This title authorizes appropriations in four categories, 
     which are: (1) National Nuclear Security Administration 
     (NNSA); (2) defense environmental cleanup; (3) other defense 
     activities; and (4) defense nuclear waste disposal.
       The budget request included $15.8 billion for atomic energy 
     defense activities, a 2.5 percent decrease below the fiscal 
     year 2006 appropriated level. Of the total amount requested:
       (1) $9.3 billion is for NNSA, of which
       (a) $6.4 billion is for weapons activities,
       (b) $1.7 billion is for defense nuclear nonproliferation 
     activities,
       (c) $795.1 million is for naval reactors, and
       (d) $386.6 million is for the Office of the Administrator;
       (2) $5.4 billion is for defense environmental cleanup;
       (3) $717.8 million is for other defense activities; and
       (4) $388.1 million is for defense nuclear waste disposal.
       The budget request also included $6.1 million within energy 
     supply.
       The conferees agree to authorize $15.8 billion for atomic 
     energy defense activities, the amount of the budget request.
       Of this amount, the conferees agree to authorize:
       (1) $9.3 billion for NNSA, of which
       (a) $6.4 billion would be for weapons activities, an 
     increase of $9.8 million above the budget request;
       (b) $1.7 billion would be for defense nuclear 
     nonproliferation, a decrease of $24.8 million below the 
     budget request;
       (c) $795.1 million would be for naval reactors, the amount 
     of the budget request; and
       (d) $386.6 million would be for the Office of the 
     Administrator, the amount of the budget request;
       (2) $5.4 billion would be for defense environmental cleanup 
     activities, an increase of $45.0 million above the budget 
     request;
       (3) $717.8 million would be for other defense activities, 
     the amount of the budget request; and
       (4) $358.1 million would be for defense nuclear waste 
     disposal, a decrease of $30.0 million below the budget 
     request.
       The conferees agree to authorize $6.1 million for energy 
     supply, the amount of the budget request.
       The following table summarizes the budget request and the 
     authorizations:

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[[Page 21223]]

                     Legislative Provisions Adopted

         Subtitle A--National Security Programs Authorizations

     National Nuclear Security Administration (sec. 3101)
       The House bill contained a provision (sec. 3101) that would 
     authorize $9.3 billion for the National Nuclear Security 
     Administration (NNSA) of the Department of Energy, including 
     funds for weapons activities, defense nuclear 
     nonproliferation programs, naval reactor programs, and the 
     Office of the Administrator, a decrease of $50.0 million 
     below the budget request. The Senate amendment contained a 
     similar provision (sec. 3101). The provision would authorize 
     $9.3 billion, an increase of $17.5 million above the budget 
     request.
       The conferees agree to authorize $9.3 billion for NNSA, a 
     decrease of $15.0 million below the budget request.
       The budget request included $6.4 billion for weapons 
     activities. The House bill would authorize $6.5 billion, an 
     increase of $60.0 million above the budget request. The 
     Senate amendment would authorize $6.5 billion, an increase of 
     $47.5 million above the budget request. The conferees agree 
     to authorize $6.4 billion, an increase of $9.8 million above 
     the budget request.
       Within weapons activities, the conferees agree to authorize 
     $22.0 million for the W80 life extension program, a decrease 
     of $80.0 million below the budget request, to be used for the 
     orderly closeout of program activities due to the 
     postponement of the W80 life extension by the Nuclear Weapons 
     Council. The conferees agree to authorize an additional $20.0 
     million for the reliable replacement warhead to support a 
     second warhead design competition. Within inertial 
     confinement fusion ignition and high yield campaign, the 
     conferees agree to authorize an increase of $10.0 million to 
     support enhanced target production and characterization 
     capabilities and for tests on the Omega and Z facilities. 
     Within readiness in technical base and facilities, the 
     conferees agree to authorize an additional $17.0 million to 
     address deferred maintenance and repair at the Pantex Plant, 
     an additional $15.0 million to address deferred maintenance 
     and repair at the Y-12 National Security Complex, and an 
     additional $10.0 million for the High Enriched Uranium 
     Materials Facility [project 01-D-124] at the Y-12 National 
     Security Complex. Within safeguards and security, the 
     conferees agree to authorize an additional $11.8 million for 
     safeguards and security requirements at the Pantex Plant and 
     an additional $14.0 million for safeguards and security 
     requirements at the Y-12 National Security Complex.
       The budget request included $1.7 billion for defense 
     nuclear nonproliferation. The conferees agree to authorize 
     $1.7 billion, a decrease of $24.8 million below the budget 
     request. The conferees agree to provide an additional $15.0 
     million in funding for the Second Line of Defense Megaports 
     program to accelerate cooperation with international partners 
     to improve their capability to detect and interdict nuclear 
     and radiological materials that could be passing through 
     foreign ports. The conferees agree to authorize an additional 
     $20.0 million in funding for the Global Threat Reduction 
     Initiative (GTRI) program. Of that amount, $5.0 million is 
     authorized for international radiological threat reduction 
     and $15.0 million is authorized to be used exclusively for 
     other GTRI activities conducted outside the United States. 
     The conferees agree to provide no funding for the Russian 
     Surplus Fissile Materials Disposition program, a decrease of 
     $34.7 million. The conferees agree to provide $264.4 million 
     for construction of the U.S. Mixed Oxide Fuel Fabrication 
     Facility, a decrease of $25.1 million below the budget 
     request. The views of the conferees regarding the Fissile 
     Materials Disposition program are discussed elsewhere in this 
     conference report.
       The budget request included $795.1 million for naval 
     reactors programs and $386.6 million for the Office of the 
     NNSA Administrator. The conferees agree to authorize these 
     programs at the requested levels.
     Defense environmental cleanup (sec. 3102)
       The House bill contained a provision (sec. 3102) that would 
     authorize $5.4 billion for the Department of Energy for 
     defense environmental cleanup for fiscal year 2007, an 
     increase of $50.0 million above the budget request.
       The Senate amendment contained a similar provision (sec. 
     3102). The provision would authorize $5.4 billion for defense 
     environmental cleanup, an increase of $40.0 million above the 
     budget request.
       The conferees agree to include a provision that would 
     authorize $5.4 billion for defense environmental cleanup, an 
     increase of $45.0 million above the budget request. Within 
     this increase, the conferees agree to provide an additional 
     $35.0 million in funding for radioactive liquid tank waste 
     stabilization and disposition at the Savannah River Site in 
     South Carolina and to provide an additional $10.0 million in 
     funding for a research and development program to support 
     tank waste cleanup technologies consistent with 
     recommendations made in the National Research Council report 
     entitled ``Tank Waste Retrieval, Processing, and On-Site 
     Disposal at Three Department of Energy Sites, April 2006.''
     Other defense activities (sec. 3103)
       The House bill contained a provision (sec. 3103) that would 
     authorize $717.8 million for the Department of Energy for 
     other defense activities for fiscal year 2007, the amount of 
     the budget request.
       The Senate amendment contained a similar provision (sec. 
     3103). The provision would authorize $624.5 million for the 
     Department for other defense activities, a decrease of $93.3 
     million below the budget request.
       The conferees agree to include a provision that would 
     authorize $717.8 million, the amount of the budget request.
     Defense nuclear waste disposal (sec. 3104)
       The House bill contained a provision (sec. 3104) that would 
     authorize $388.1 million for defense nuclear waste disposal, 
     the amount of the budget request.
       The Senate amendment contained a similar provision (sec. 
     3104). The provision would authorize $333.1 million for 
     defense nuclear waste disposal, a decrease of $55.0 million 
     below the budget request.
       The conferees agree to include a provision that would 
     authorize $358.1 million, a decrease of $30.0 million below 
     the budget request. The conferees note that the Department of 
     Energy has issued a revised schedule for the development of a 
     geologic repository, delaying the completion of the license 
     application for the repository until June of 2008.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

     Plan for transformation of National Nuclear Security 
         Administration nuclear weapons complex (sec. 3111)
       The House bill contained a provision (sec. 3111) that would 
     direct the Secretary of Energy and the Secretary of Defense 
     to develop a plan to transform the nuclear weapons complex so 
     as to achieve a responsive infrastructure by the year 2030 
     and to transmit a report to the congressional defense 
     committees, not later than February 1, 2007, on the 
     transformation plan.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary of Energy to develop the transformation plan in 
     consultation with the Secretary of Defense and the Nuclear 
     Weapons Council. The amendment would also modify the 
     objectives of the plan to acknowledge the continued 
     utilization of Category I and II special nuclear material, 
     beyond the year 2012, at the national security laboratory at 
     which a pit production capability is located. The amendment 
     would make further technical changes.
     Extension of Facilities and Infrastructure Recapitalization 
         Program (sec. 3112)
       The House bill contained a provision (sec. 3112) that would 
     extend the Facilities and Infrastructure Recapitalization 
     Program for 2 years, until September 30, 2013.
       The Senate amendment contained a similar provision (sec. 
     3114).
       The Senate recedes.
     Utilization of contributions to Global Threat Reduction 
         Initiative (sec. 3113)
       The House bill contained a provision (sec. 3113) that would 
     provide the Secretary of Energy authority to accept 
     international contributions to the Global Threat Reduction 
     Initiative program.
       The Senate amendment contained a similar provision (sec. 
     3112).
       The House recedes with a technical amendment.
     Utilization of contributions to Second Line of Defense 
         program (sec. 3114)
       The House bill contained a provision (sec. 3114) that would 
     provide the Secretary of Energy authority to accept 
     international contributions to the Second Line of Defense 
     program.
       The Senate amendment contained a similar provision (sec. 
     3113).
       The House recedes with a technical amendment.
     Two-year extension of authority for appointment of certain 
         scientific, engineering, and technical personnel (sec. 
         3115)
       The House bill contained a provision (sec. 3115) that would 
     amend section 4601(c)(1) of the Atomic Energy Defense Act (50 
     U.S.C. 2701(c)(1)) to extend excepted service authority for 
     an additional two years, until September 30, 2008.
       The Senate amendment contained an identical provision (sec. 
     3115).
       The conference agreement includes this provision.
     National Academy of Sciences study of quantification of 
         margins and uncertainty methodology for assessing and 
         certifying the safety and reliability of the nuclear 
         stockpile (sec. 3116)
       The House bill contained a provision (sec. 3116) that would 
     direct the Secretary of Energy to enter into an arrangement 
     with the National Research Council of the National Academy of 
     Sciences to carry out a study of the quantification of 
     margins and uncertainty methodology used by the national 
     security laboratories for assessing and certifying the safety 
     and reliability of the nuclear stockpile. The provision would 
     further direct the National Research Council to submit a 
     report on the study to the Secretary of Energy and to the 
     Committees on Armed

[[Page 21224]]

     Services of the Senate and the House of Representatives not 
     later than 1 year after the date on which the Council enters 
     into the arrangement for such study.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would narrow the 
     matters to be included in the study, and would make technical 
     changes to the funding of the study.
       The conferees acknowledge the aggressive schedule directed 
     for completion of the study and the report thereon. The 
     conferees are aware of ongoing work on complementary topics 
     being conducted by the Nuclear Weapons Complex Assessment 
     Committee of the American Association for the Advancement of 
     Science. The conferees encourage the National Research 
     Council to seek opportunities to support mutual study 
     objectives and to coordinate the use of any study 
     contributors and subject matter experts between these 
     studies, as appropriate.
     Consolidation of counterintelligence programs of Department 
         of Energy and National Nuclear Security Administration 
         (sec. 3117)
       The House bill contained a provision (sec. 3117) that would 
     consolidate the counterintelligence programs of the 
     Department of Energy and the National Nuclear Security 
     Administration (NNSA) under the Department of Energy. The 
     provision would also establish the Intelligence Executive 
     Committee within the Department of Energy consisting of the 
     Deputy Secretary of Energy, who would chair the committee, 
     and each Under Secretary of Energy. The provision would 
     require the Secretary of Energy to use the committee to 
     assist in developing and promulgating the counterintelligence 
     and intelligence policies, requirements, and priorities of 
     the entire Department.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would establish, 
     within the staff of the Administrator of the NNSA, a position 
     of NNSA Intelligence and Counterintelligence Liaison that 
     would be responsible for liaison between the NNSA and the 
     Department's Office of Intelligence and Counterintelligence. 
     The amendment would also sunset on September 30, 2010, the 
     transfer of functions, personnel, funds, assets, and other 
     resources transferred to the Secretary of Energy, returning 
     them to the control of the Administrator of the NNSA.
       The conferees reluctantly provide this authority to 
     consolidate the counterintelligence programs of the 
     Department of Energy and NNSA, despite the ongoing skepticism 
     of many in Congress over the Department's ability to 
     implement a strong security program for the Department and 
     its laboratories. The conferees note that with the recent 
     Departmental initiative to combine the Offices of 
     Intelligence and Counterintelligence and with the authority 
     provided in this provision, the intelligence and 
     counterintelligence functions will be organized as they were 
     when the Department experienced significant 
     counterintelligence problems.
       The conferees believe that the Department could have 
     addressed many of the perceived issues associated with having 
     separate counterintelligence offices for the Department and 
     NNSA by demonstrating greater management resourcefulness. The 
     conferees are unpersuaded that the Department fully and 
     faithfully implemented the counterintelligence program 
     structure called for in the National Nuclear Security 
     Administration Act (Title 32 of the National Defense 
     Authorization Act for Fiscal Year 2000, Public Law 106-65, as 
     amended).
       Nevertheless, the conferees note that the Department has 
     continued--under the leadership of two different Secretaries 
     of Energy and two different Deputy Secretaries--to identify 
     the counterintelligence structure of the NNSA Act as an 
     impediment to the smooth functioning of security operations 
     within the Department of Energy complex. The conferees have 
     agreed, therefore, to include a provision that would provide 
     temporary authority for the disestablishment of the Office of 
     Defense Nuclear Counterintelligence within NNSA and the 
     transfer of NNSA counterintelligence personnel to the 
     Department's Office of Counterintelligence.
       Because NNSA and its programs contain the assets of 
     greatest national security concern, the conferees would 
     incorporate three important safeguards into the new 
     organizational structure. First, the provision would require 
     the establishment of an Intelligence Executive Committee 
     within the Department of Energy consisting of the Deputy 
     Secretary of Energy, who would chair the Committee, and each 
     Under Secretary of Energy. One of the Under Secretaries is 
     also the Administrator of the NNSA. Second, conferees would 
     create, within the staff of the Administrator of the NNSA, a 
     position of NNSA Intelligence and Counterintelligence Liaison 
     that would be responsible for liaison between NNSA and the 
     Department's Office of Intelligence and Counterintelligence. 
     Third, the conferees would include a section to sunset the 
     transfer effective September 30, 2010. This sunset would 
     allow future Congresses to examine the effectiveness of the 
     new, consolidated office and to take appropriate action, 
     either to continue, modify, or reverse this organizational 
     structure, based on that examination. Taken together, these 
     measures are intended to ensure a continued strong voice for 
     the NNSA in counterintelligence policy and requirements 
     within the Department.
       The conferees also wish to emphasize to the Department of 
     Energy the existing requirement, already in law, regarding 
     the selection and appointment of leadership for the new 
     organization. The conferees remind the Department that 
     section 1014 of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (Public Law 108-458) requires the 
     Secretary of Energy to obtain the concurrence of the Director 
     of National Intelligence before appointing an individual to 
     fill the positions of Director of Intelligence and Director 
     of Counterintelligence for the Department of Energy. Section 
     1014 further states that if the Director of National 
     Intelligence does not concur in the recommendation, the 
     Secretary of Energy may not appoint the individual to the 
     position. The conferees support this requirement. The 
     conferees further note that the recently appointed Director 
     of Counterintelligence for the Department is detailed from 
     the Federal Bureau of Investigation (FBI) for 2 years. The 
     conferees believe that an individual having experience in 
     counterintelligence matters as either a current or former 
     agent of the FBI continues to be the most appropriate choice 
     to lead the Department's counterintelligence efforts.
     Notice-and-wait requirement applicable to certain third-party 
         financing arrangements (sec. 3118)
       The Senate amendment contained a provision (sec. 3111) that 
     would require the Secretary of Energy to notify the 
     congressional defense committees 30 days prior to entering 
     into certain alternative financing arrangements.
       The House bill contained no similar provision.
       The House recedes.
     Extension of deadline for transfer of lands to Los Alamos 
         County, New Mexico, and of lands in trust for the Pueblo 
         of San Ildefonso (sec. 3119)
       The Senate amendment contained a provision (sec. 3116) that 
     would amend section 632 of the Departments of Commerce, 
     Justice, and State, the Judiciary, and Related Agencies 
     Appropriations Act, 1998 (Public Law 105-119) to extend, by 
     five years, the deadline for completing certain land 
     transfers by the Secretary of Energy to Los Alamos County, 
     New Mexico and to the Secretary of the Interior of lands to 
     be held in trust for the Pueblo of San Ildefonso.
       The House bill contained no similar provision.
       The House recedes.
     Limitations on availability of funds for Waste Treatment and 
         Immobilization Plant (sec. 3120)
       The Senate amendment contained a provision (sec. 3117) that 
     would prohibit the Secretary of Energy from obligating or 
     expending more than a percentage of the amount authorized to 
     be appropriated for the Waste Treatment and Immobilization 
     Plant prior to performing certain actions.
       The House bill contained no similar provision.
       The House recedes with an amendment that would increase the 
     amount available to be obligated or expended from 30 percent 
     to 90 percent of the funds appropriated or otherwise 
     available prior to the Secretary certifying to the 
     congressional defense committees that the earned value 
     management system for the project has been recommended for 
     acceptance by the Defense Contract Management Agency. The 
     amendment would also alter the limitation related to the 
     establishment of final seismic criteria for the project by 
     prohibiting the obligation or expenditure of any of the 
     amount appropriated or otherwise available for the project 
     for construction or for procurement of critical equipment 
     affected by the seismic criteria prior to the establishment 
     of final seismic and ground motion criteria for the project. 
     The conferees encourage the Department of Energy to sequence 
     the obligation and expenditure of engineering funds on the 
     project in a manner that minimizes the risk of incurring 
     additional costs should the interim seismic criteria 
     ultimately be found to be inadequate.
     Report on Russian Surplus Fissile Materials Disposition 
         Program (sec. 3121)
       The Senate amendment contained a provision (sec. 3118) that 
     would prohibit the obligation of fiscal year 2007 funds to 
     implement the Russian Surplus Fissile Materials Disposition 
     Program, other than continuation of the research and 
     development associated with the Gas Turbine-Modular Helium 
     Reactor (GT-MHR), until 30 days after the Secretary of Energy 
     provides to the congressional defense committees written 
     recommendations regarding whether and in what manner the 
     program should proceed. The provision would require the 
     recommendations to include: (1) a description of the 
     disposition method Russia has agreed to use; (2) a 
     description of the assistance the United States plans to 
     provide under the program; (3) an estimate of the total cost 
     and schedule of the U.S. assistance to the program; and (4) 
     an explanation of how parallelism is to be defined for 
     purposes of the program and whether such parallelism can be 
     achieved if the U.S. mixed-oxide (MOX) approach to plutonium 
     disposition continues

[[Page 21225]]

     on the current planned schedule without further delays.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Energy to provide a report, no later than March 
     1, 2007, to the congressional defense committees. The report 
     shall include: (1) a description of the disposition method 
     Russia has agreed to use under the program; (2) a description 
     of the assistance the United States plans to provide under 
     the program; (3) an estimate of the total cost and schedule 
     of such assistance; and (4) an explanation of how parallelism 
     is to be defined for purposes of the program, including 
     projected goals for the disposition of Russian weapons-grade 
     plutonium under the 2000 Plutonium Disposition and Management 
     Agreement, and whether such parallelism can be achieved if 
     the U.S. MOX program continues on the current planned 
     schedule without further delays.
       The conferees note their support for the goals of the 
     September 2000 Plutonium Management and Disposition Agreement 
     to dispose of 34 metric tons of surplus weapons-grade 
     plutonium in both the United States and Russia on roughly 
     parallel paths. For the past 2 years, the Russian program has 
     been delayed pending completion of a liability agreement 
     between the United States and the Russian Federation, and 
     that in turn caused a delay in the U.S. program. The National 
     Defense Authorization Act for Fiscal Year 2006 (Public Law 
     109-163) cut $250.0 million in funding for the U.S. MOX 
     program due to the impasse over liability. Although the 
     liability agreement has now been signed, Russian officials 
     have stated that the agreement will require ratification by 
     the Russian Duma.
       In a new development arising out of U.S.-Russian 
     negotiations on the plutonium disposition program in February 
     2006, Russia has now indicated that it is not prepared to 
     proceed with the program as originally conceived. 
     Representatives of the National Nuclear Security 
     Administration and the Department of State have indicated 
     that Russia no longer wishes to use MOX fuel in VVER-1000 
     light water reactors unless the United States and the 
     international community agree to bear the full life cycle 
     cost of this approach, estimated at $2.7 billion. Rather, 
     Russia would like to explore a new two-pillar approach to the 
     plutonium disposition program, consisting of limited 
     disposition in an existing BN-600 reactor (disposition in 
     such a reactor was part of the originally envisioned 
     program), and eventually larger-scale disposition in one or 
     more BN-800 fast breeder reactors (FBR). It is unclear how 
     much this new approach would cost and how it would be funded. 
     The United States has not previously supported the FBR design 
     due to proliferation concerns.
       While generally pleased with the progress of DOE programs 
     with the Russian Federation to cooperatively reduce the 
     nuclear threat, the conferees are troubled by the uncertainty 
     that now surrounds the Russian Surplus Materials Disposition 
     Program. The conferees note the July 13, 2006, Joint 
     Statement by the Secretary of Energy and the Director of the 
     Federal Atomic Energy Agency of the Russian Federation 
     reaffirming the joint commitment to the 2000 Agreement to 
     dispose of 34 metric tons of excess weapons-grade plutonium. 
     Nevertheless, the conferees remain concerned about the lack 
     of any plan, implementing agreement, or concrete timetable 
     for implementing this renewed commitment. Such a plan should 
     include the method of disposition, the amount of the Russian 
     contribution to the disposition program, and how much and 
     what type of assistance the United States and the 
     international community will be asked to provide to the 
     program. The conferees believe that these questions must be 
     resolved before the United States invests further in this 
     important cooperative program. Therefore, the conferees 
     recommend no funds for the Russian Surplus Fissile Materials 
     Disposition Program, a reduction of $34.7 million. Of those 
     funds available from prior fiscal years for the Russian 
     Surplus Fissile Materials Disposition Program, no more than 
     $20.0 million shall be available for expenditure until 30 
     days after the Secretary of Energy has provided to the 
     congressional defense committees the report required by this 
     section. The conferees note that there are adequate prior 
     year funds available for the Russian Surplus Fissile 
     Materials Disposition Program in the event that Russia and 
     the United States agree on a path forward and are prepared to 
     resume cooperative work on a plutonium disposition program 
     that is consistent with the 2000 Agreement, and to which 
     Russia and the United States are fully committed.
       The conferees expect the GT-MHR technology cooperation 
     efforts to proceed without interruption using the prior year 
     funds that are unaffected by this funding restriction.
     Limitation on availability of funds for construction of MOX 
         Fuel Fabrication Facility (sec. 3122)
       The Senate amendment contained a provision (sec. 3119) that 
     would prohibit the obligation of fiscal year 2007 funds for 
     construction of the Mixed Oxide (MOX) Fuel Fabrication 
     Facility until 30 days after the Secretary of Energy provides 
     to the congressional defense committees: (1) an independent 
     cost estimate for the U.S. Surplus Fissile Materials 
     Disposition program and facilities; and (2) a written 
     certification that the Department of Energy intends to use 
     the MOX Fuel Fabrication Facility for U.S. plutonium 
     disposition regardless of the future direction of the Russian 
     Surplus Fissile Materials Disposition program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would prohibit the 
     obligation of fiscal year 2007 funds for construction of the 
     MOX Fuel Fabrication Facility until 30 days after the 
     Secretary of Energy provides to the congressional defense 
     committees: (1) an independent cost estimate for the U.S. 
     Surplus Fissile Materials Disposition program and facilities; 
     (2) a written certification that the Department intends to 
     use the MOX Fuel Fabrication Facility for U.S. plutonium 
     disposition regardless of the future direction of the Russian 
     Surplus Fissile Materials Disposition program; and (3) a 
     corrective action plan for issues raised by the Department of 
     Energy Inspector General (IG) in the December 2005 report 
     titled ``The Status of the Mixed Oxide Fuel Fabrication 
     Facility.''
       The conferees support the goals of the September 2000 
     Plutonium Management and Disposition Agreement to dispose of 
     34 metric tons of surplus weapons-grade plutonium in both the 
     United states and Russia on roughly parallel paths, but note 
     their ongoing concern regarding the implementation of this 
     program. Under the agreement, the United States and Russia 
     each agreed to dispose of 34 metric tons of surplus weapons-
     grade plutonium, and both countries planned to dispose of the 
     plutonium by fabricating it into MOX fuel for use in existing 
     nuclear reactors. It has been both executive branch policy 
     and a condition of the Congress that the U.S. and Russian 
     programs would proceed on parallel paths. This program was 
     delayed for more than 2 years as the United States and Russia 
     negotiated an agreement on liability protections for U.S. 
     contractors associated with the project. Now Russia has 
     indicated it wishes to pursue alternative disposition methods 
     under this program, rather than relying on the MOX method 
     that had been planned. Uncertainties surrounding the Russian 
     program have led to questions regarding the continued 
     relationship of that program to the U.S. Surplus Fissile 
     Materials Disposition program, given that these two programs 
     are required to proceed on roughly parallel paths.
       The conferees are further concerned that the U.S. MOX 
     program has experienced significant cost overruns and 
     schedule delays, irrespective of the problems with the 
     Russian program. A December 2005 audit by the IG concluded 
     that while the original 2002 budget estimate for the U.S. MOX 
     facility was $1.0 billion, the total cost is now estimated at 
     around $3.5 billion, and the plant will not begin producing 
     MOX fuel until 2015, 6 years later than originally planned. 
     The IG audit was highly critical of the Department's 
     management of the MOX program, asserting that weaknesses in 
     project management and limited administration of the program 
     contributed to cost growth. More recent information suggests 
     that the cost of the U.S. MOX program is expected to rise 
     significantly higher than the IG estimated.
       In light of these developments, the conferees believe it is 
     necessary to have an independent cost estimate for the 
     program; a certification from the Secretary that the 
     Department will use the MOX facility for plutonium 
     disposition regardless of the future direction of the Russian 
     program; and a corrective action plan for issues raised by 
     the IG, before fiscal year 2007 funds are obligated for 
     construction of the MOX Fuel Fabrication Facility.
       Based on preliminary discussions with the Department, the 
     conferees are operating under the assumption that the 
     Savannah River Site MOX project is a cost-effective and 
     efficient method for the United States to dispose of a 
     significant portion of its excess weapons-grade plutonium 
     inventory as part of a broader plutonium disposition plan. 
     Accordingly, the conferees believe that moving forward 
     expeditiously with construction and operation of the U.S. MOX 
     facility will significantly reduce the costs and risks 
     associated with managing domestic weapons-grade plutonium. 
     The conferees direct the Department to provide to the 
     congressional defense committees an assessment of whether, 
     given the sunk costs to date for the U.S. MOX project and an 
     evaluation of other alternatives for plutonium disposition, 
     proceeding with the U.S. MOX project is the most effective 
     means, from both a cost and technical perspective, for 
     managing and disposing of excess U.S. weapons-grade 
     plutonium.
       The conferees reaffirm their view that proceeding with 
     construction and operation of the U.S. MOX facility is 
     important in order to demonstrate the continuing commitment 
     of the United States to fulfilling its obligations under both 
     the 2000 Plutonium Management and Disposition Agreement, and 
     under Article VI of the Nuclear Non-Proliferation Treaty.

[[Page 21226]]


     Education of future nuclear engineers (sec. 3123)
       The Senate amendment contained a provision (sec. 3121) that 
     would direct the Secretary of Energy to conduct a study on 
     the feasibility and merit of establishing a scholarship or 
     fellowship program to educate future nuclear engineers at the 
     postsecondary and postgraduate levels and to submit a report 
     on the study to the congressional defense committees.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Technical correction related to authorization of 
         appropriations for fiscal year 2006 (sec. 3124)
       The Senate amendment contained a provision (sec. 3120) that 
     would strike the amount ``$9,196,456'' and insert 
     ``$9,196,456,000'' in section 3101(a) of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163).
       The House bill contained no similar provision.
       The House recedes.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

                     Legislative Provision Adopted

     Authorization (sec. 3201)
       The House bill contained a provision (sec. 3201) that would 
     authorize $22.3 million for the Defense Nuclear Facilities 
     Safety Board, the amount of the budget request.
       The Senate amendment contained an identical provision (sec. 
     3201).
       The conference agreement includes this provision. The 
     conferees note their concern regarding the untimely 
     resolution by the Department of Energy of technical issues 
     raised by the Board. The conferees believe that the Board and 
     the Department would benefit from a more structured process 
     for issue resolution that would allow issues to be raised, 
     evaluated, and adjudicated at logical points in the design 
     and construction process. The conferees urge the Board to 
     evaluate whether more frequent use of the Board's formal 
     recommendation process would drive both parties towards this 
     more structured process. The conferees also encourage the 
     Board to take a constructive role in the problem-solving 
     process by quickly evaluating corrective actions proposed by 
     the Department and its contractors.
       The conferees are encouraged by efforts between the 
     Department and the Board to develop a process to provide for 
     more timely identification and resolution of technical 
     differences over design standards and other issues at the 
     Department's nuclear facilities. Specifically, conferees 
     support the pending revision of the Department's Order 413.3 
     to require critical safety determinations be made prior to 
     Critical Decision 1 in the Department's project management 
     system. The conferees direct the Board and the Department to 
     continue these discussions and to report jointly to the 
     congressional defense committees on their efforts to improve 
     the timeliness of issue resolution, including 
     recommendations, if any, for legislation that would 
     strengthen and improve technical oversight of the 
     Department's nuclear design and operational activities. Until 
     such time as this report is submitted, the conferees further 
     direct the Board to provide to the congressional defense 
     committees quarterly reports to identify and report the 
     status of significant unresolved issues.
       The conferees expect the Board to exercise its existing 
     statutory authority at all Department of Energy defense 
     nuclear facilities. This includes the Waste Treatment and 
     Immobilization Plant [Project 01-D-416] at the Department's 
     Hanford site in the State of Washington.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

                     Legislative Provision Adopted

     Authorized uses of National Defense Stockpile funds (sec. 
         3301)
       The House bill contained a provision (sec. 3301) that would 
     authorize $52.1 million from the National Defense Stockpile 
     Transaction Fund for the operation and maintenance of the 
     National Defense Stockpile for fiscal year 2007. The 
     provision would also permit the use of additional funds for 
     extraordinary or emergency conditions 45 days after Congress 
     receives notification.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Revisions to required receipt objectives for previously 
         authorized disposals from National Defense Stockpile 
         (sec. 3302)
       The House bill contained a provision (sec. 3302) that would 
     authorize increased sales of certain materials in the 
     National Defense Stockpile through the end of fiscal year 
     2013.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would reduce the 
     amount of the increased sales.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

                     Legislative Provision Adopted

     Authorization of appropriations (sec. 3401)
       The House bill contained a provision (sec. 3401) that would 
     authorize $18.8 million for the operation and maintenance of 
     the Naval Petroleum and Oil Shale Reserves.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                   Legislative Provision Not Adopted

       The Senate amendment contained a provision (sec. 3401) that 
     would require the 'Shallow Oil Zone Provisional 
     Recommendation of Equity Participation' of the independent 
     petroleum engineer for Naval Petroleum Reserve Numbered 1 to 
     become the final recommendation, unless the Department of 
     Energy and Chevron U.S.A. Inc. agree that the independent 
     petroleum engineer shall not be liable for any cost or 
     expense incurred as a result of good faith services.
       The House bill contained no similar provision.
       The Senate recedes.

                  TITLE XXXV--MARITIME ADMINISTRATION

                     Legislative Provisions Adopted

     Authorization of appropriations for fiscal year 2007 (sec. 
         3501)
       The House bill contained a provision (sec. 3501) that would 
     authorize a total of $164.4 million for fiscal year 2007, an 
     increase of $19.5 million above the budget request. Of the 
     amount authorized, $25.7 million would be for the disposal of 
     obsolete vessels. Within the funds included for operation and 
     training programs, the provision would authorize $19.5 
     million to provide for the reimbursement of non-emergency 
     repairs under the provisions of section 3517 of the Maritime 
     Security Act of 2003 (46 U.S.C. 53101 note), as amended by 
     section 3503 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would increase 
     the amount authorized by an additional $15.6 million. Of the 
     additional amount authorized, $15.0 million would be for 
     assistance to small shipyards under section 3506 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163), and $0.6 million for fuel payments for 
     the six State maritime academies to operate their training 
     ships.
       The amendment would further clarify the amount authorized 
     for administrative expenses related to the implementation of 
     the loan guarantee program under title XI of the Merchant 
     Marine Act, 1936 (46 U.S.C. App. 1271 et seq.) and the non-
     emergency repair reimbursement, and small shipyard assistance 
     programs described above.
     Amendments relating to the Maritime Security Fleet program 
         (sec. 3502)
       The House bill contained a provision (sec. 3502) that would 
     amend section 53105(e) of the Maritime Security Act of 2003 
     (46 U.S.C. 53101 note) to prohibit the transfer of an 
     operating agreement to a person that is not a citizen of the 
     United States, as that term is used in section 2 of the 
     Shipping Act, 1916 (46 U.S.C. 802), unless the Secretary of 
     Defense determines that there is no citizen under that 
     section who is interested in obtaining the operating 
     agreement for a vessel that is otherwise eligible to be 
     included in the Maritime Security Fleet program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that in order for a vessel to be considered eligible for an 
     operating agreement to be transferred the vessel must meet 
     the specific Department of Defense requirements for that 
     operating agreement. The amendment would also amend section 
     53103(c)(4) of title 46, United States Code, to provide an 
     alternative approach for operators of the Maritime Security 
     Fleet program product tankers to meet U.S.-built replacement 
     vessel requirements. The alternative approach would include 
     the construction and operation of equivalent domestic trade 
     tank vessels. The amendment would further amend section 53106 
     of title 46, United States Code, to establish priority for 
     allocation of payments to vessels, in the event that the 
     amounts available for payments under operating agreements are 
     not sufficient to pay the full amount authorized under each 
     agreement.
     Applicability to certain Maritime Administration vessels of 
         limitations on overhaul, repair, and maintenance of 
         vessels in foreign shipyards (sec. 3503)
       The House bill contained a provision (sec. 3503) that would 
     require that certain U.S. Maritime Administration vessels 
     activated in support of Department of Defense missions be 
     subject to section 7310 of title 10, United States Code.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Vessel transfer authority (sec. 3504)
       The House bill contained a provision (sec. 3504) that would 
     authorize the Secretary of Transportation to transfer any 
     vessels that are in the National Defense Reserve Fleet to 
     another Federal agency.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     United States Merchant Marine Academy graduates: service 
         requirements (sec. 3505)
       The House bill contained a provision (sec. 3505) that would 
     exempt graduates of the

[[Page 21227]]

     United States Merchant Marine Academy, who serve on active 
     duty in the Armed Forces for the 5 years following 
     graduation, from certain commitment agreement requirements 
     which were entered into upon admission.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would include 
     exemption of graduates of the United States Merchant Marine 
     Academy, who serve on active duty in the Public Health 
     Service for the 5 years following graduation, from the 
     agreement requirements specified in this provision.
     United States Merchant Marine Academy graduates: service 
         obligation performance reporting requirement (sec. 3506)
       The House bill contained a provision (sec. 3506) that would 
     allow the Department of Defense, the United States Coast 
     Guard, and the National Oceanic and Atmospheric 
     Administration to verify to the Maritime Administration that 
     academy graduates have in fact remained on active duty or 
     continued in a ready reserve status for the amount of their 
     obligation.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would also allow 
     the Public Health Service to verify to the Maritime 
     Administration that academy graduates have in fact remained 
     on active duty or continued in a ready reserve status for the 
     amount of their obligation.
     Temporary authority to transfer obsolete combatant vessels to 
         Navy for disposal (sec. 3507)
       The House bill contained a provision (sec. 3507) that would 
     require the Secretary of Transportation to transfer to the 
     Secretary of the Navy for disposal by scrapping, during 
     fiscal year 2007, no fewer than six combatant vessels of the 
     nonretention fleet of the Maritime Administration.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would reduce the 
     number of combatant vessels subject to transfer by the 
     Secretary of Transportation to the Secretary of the Navy, 
     during fiscal year 2007, to no fewer than three.
     Qualifying Reserve duty for receipt of student incentive 
         payments (sec. 3508)
       The conferees agree to include a provision that would amend 
     title 13 of the Merchant Marine Act, 1936 (46 U.S.C. App. 
     1295c(g)(2)) to include service in the United States Coast 
     Guard Reserve as fulfillment of enlisted reserve requirements 
     for receipt of student incentive payments.
     Large passenger ship crew requirements (sec. 3509)
       The conferees agree to include a provision that would amend 
     section 8103 of title 46, United States Code, to establish 
     crew requirements for large passenger vessels. Specifically, 
     the provision would expand the pool of non-citizens that can 
     be employed on U.S.-flag large passenger vessels to include 
     certain non-resident alien visa holders. The provision would 
     also establish rules, restrictions, and background check 
     requirements for non-resident alien employees, which have 
     been deemed necessary by the Department of Homeland Security 
     to maintain the security and safety of passenger vessels.
       The conferees direct the Commandant of the Coast Guard to 
     closely monitor implementation of affected procedures for 
     employment of non-citizens. The Commandant shall notify 
     Congress of any measures, beyond changes to Coast Guard 
     regulations, that may be required to maintain the security 
     and safety of the subject passenger vessels consistent with 
     standards for U.S.-flagged vessels.
       The conferees agree that the relief to employment 
     requirements of this provision warrant documentation within 
     the security plan for each large passenger vessel employing 
     non-resident aliens. The Secretary of Homeland Security shall 
     ensure that vessel security plans prohibit non-resident alien 
     seamen from working in:
       (1) any position with the authority to receive stores or 
     provisions;
       (2) any position allowing unescorted access to restricted 
     spaces on the vessel;
       (3) any position with security-related responsibilities; 
     and
       (4) any position with any operationally critical shipboard 
     duties.
     Miscellaneous Maritime Administration provisions (sec. 3510)
       The conferees agree to include a provision that would make 
     technical corrections to (1) section 1208(a) of the Merchant 
     Marine Act, 1936 (46 U.S.C. App. 1288(a)), (2) section 8 of 
     the Merchant Marine Decorations and Medals Act (46 U.S.C. 
     App. 2007), and (3) section 3509 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163). 
     The provision would also authorize funding for an intermodal 
     or marine facility comprising a component of the Hawaii Port 
     Infrastructure Expansion Program.

                   Legislative Provision Not Adopted

     Temporary requirement to maintain Ready Reserve Force
       The House bill contained a provision (sec. 3508) that would 
     require the Secretary of Defense, in consultation with the 
     Secretary of Transportation, to submit to Congress by March 
     1, 2007, a report describing a 5-year plan for maintaining 
     the capability of the Ready Reserve Force of the National 
     Defense Reserve Fleet necessary to support Department of 
     Defense wartime mission and support to civil authorities. The 
     provision would also require the Secretary of Transportation 
     to maintain 58 vessels in the Ready Reserve Force of the 
     National Defense Reserve Fleet until 45 days after the date 
     the report is required.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees request that the U. S. Transportation Command 
     advise the congressional defense committees prior to further 
     reductions to the Ready Reserve Force and include plans for 
     providing capacity to meet related readiness requirements.

                                EARMARKS

       Pursuant to House Resolution 1000, entitled ``Providing for 
     earmarking reform in the House of Representatives,'' adopted 
     on September 14, 2006, the committee finds the following 
     earmarks contained in this conference report:

----------------------------------------------------------------------------------------------------------------
                                                                                                        Amount
                  Member                      Program/Project Title           Account/Line No.       (dollars in
                                                                                                      millions)
----------------------------------------------------------------------------------------------------------------
Hunter, Duncan (CA) and Bartlett, Roscoe   Low cost domestic titanium   RDA 183 78045A.............         $5.0
 (MD).                                      reduction to powder
                                            initiative.
Kline, John (MN).........................  Traumatic brain injury       Defense Health Program O&M.         12.0
                                            treatment and
                                            rehabilitation.
Warner, John (VA)........................  East Coast Asymmetric        RDDW 54 63828D8Z...........          4.0
                                            Warfare Initiative.
Kingston, Jack (GA) and Marshall, Jim      Construct Software Support   Air Force Construction and           7.0
 (GA).                                      Facility, Phase 2, Robins    Land Acquisition Projects.
                                            AFB, Georgia.
Chafee, Lincoln (RI) and Reed, Jack (RI).  Replace Vehicle Bridge,      Navy Construction and Land          3.41
                                            Increment 2, Naval Station   Acquisition Projects.
                                            Newport, Rhode Island.
----------------------------------------------------------------------------------------------------------------

     From the Committee on Armed Services, for consideration of 
     the House bill and the Senate amendment, and modifications 
     committed to conference:
     Duncan Hunter,
     C. Weldon,
     Joel Hefley,
     J. Saxton,
     John M. McHugh,
     Terry Everett,
     R. Bartlett,
     Mac Thornberry,
     John N. Hostettler,
     Jim Ryun,
     Jim Gibbons,
     Robin Hayes,
     Ken Calvert,
     Rob Simmons,
     Thelma Drake,
     Geoff Davis,
     Ike Skelton,
     John M. Spratt, Jr.,
     Solomon P. Ortiz,
     Gene Taylor,
     Neil Abercrombie,
     Silvestre Reyes,
     Vic Snyder,
     Adam Smith,
     Loretta Sanchez,
     Ellen Tauscher,
     R.A. Brady,
     Robert E. Andrews,
     From the Permanent Select Committee on Intelligence, for 
     consideration of matters within the jurisdiction of that 
     committee under clause 11 of rule X:
     Pete Hoekstra,
     Ray LaHood,
     Jane Harman,
     From the Committee on Education and the Workforce, for 
     consideration of secs. 571 and 572 of the House bill, and 
     secs. 571, 572, 1081, and 1104 of the Senate amendment, and 
     modifications committed to conference:
     Howard P. McKeon,
     John Kline,
     From the Committee on Energy and Commerce, for consideration 
     of secs. 314, 601, 602, 710, 3115, 3117, and 3201 of the 
     House bill, and secs. 332-335, 352, 601, 722, 2842, 3115, and 
     3201 of the Senate amendment, and modification committed to 
     conference:
     Joe Barton,
     Paul Gillmor,
     From the Committee on Government Reform, for consideration of 
     secs. 343, 721, 811, 823, 824, 1103, 1104, and 3115 of the 
     House bill, and secs. 371, 619, 806, 823, 922, 1007, 1043, 
     1054,

[[Page 21228]]

     1088, 1089, 1101, and 3115 of the Senate amendment, and 
     modifications committed to conference:
     Tom Davis,
     C. Shays,
     From the Committee on Homeland Security, for consideration of 
     section 1026 of the House bill, and section 1044 of the 
     Senate amendment, and modifications committed to conference:
     Peter T. King,
     D. Reichert,
     Bennie G. Thompson,
     From the Committee on International Relations, for 
     consideration of secs. 1021-1023, 1201-1204, 1206, title 
     XIII, secs. 3113 and 3114 of the House bill, and secs. 1014, 
     1021-1023, 1054, 1092, 1201-1208, 1210, 1214, title XIII, 
     secs. 3112 and 3113 of the Senate amendment, and 
     modifications committed to conference:
     Henry Hyde,
     James Leach,
     Tom Lantos,
     From the Committee on Resources, for consideration of secs. 
     601, 602, and 1036 of the House bill, and section 601 of the 
     Senate amendment, and modifications committed to conference:
     Richard Pombo,
     Greg Walden,
     From the Committee on Science, for consideration of secs. 312 
     and 911 of the House bill, and secs. 333, 874, and 1082 of 
     the Senate amendment, and modifications committed to 
     conference:
     Sherwood Boehlert,
     Mike Sodrel,
     From the Committee on Small Business, for consideration of 
     secs. 874 and 1093 of the Senate amendment, and modifications 
     committed to conference:
     Donald Manzullo,
     Sue W. Kelly,
     From the Committee on Transportation and Infrastructure, for 
     consideration of secs. 312, 551, 601, 602, and 2845 of the 
     House bill and secs. 333, 584, 601, 1042, 1095, 2842, 2851-
     2853, and 2855 of the Senate amendment, and modifications 
     committed to conference:
     Don Young,
     Frank LoBiondo,
     Jim Oberstar
     (Except sections 1095, 2851, 2852, 2853 of the Senate 
     amendment),
     From the Committee on Veterans' Affairs, for consideration of 
     secs. 666, 682, 683, 687, 721, and 923 of the Senate 
     amendment, and modifications committed to conference:
     Steven Buyer,
     John Boozman,
     Stephanie Herseth,
                                Managers on the Part of the House.

     John W. Warner,
     John McCain,
     James M. Inhofe,
     Pat Roberts,
     Jeff Sessions,
     Susan M. Collins,
     John Ensign,
     Jim Talent,
     Joe Lieberman,
     Jack Reed,
     Daniel K. Akaka,
     Bill Nelson,
     E. Benjamin Nelson,
     Mark Dayton,
     Evan Bayh,
     H.R. Clinton,
     Saxby Chambliss,
     Lindsey Graham,
     John Cornyn
     John Thune,
     Carl Levin,
     Ted Kennedy,
     Robert C. Byrd,
     Managers on the Part of the Senate.

                          ____________________