[Congressional Record (Bound Edition), Volume 153 (2007), Part 24]
[House]
[Pages 32514-33232]
[From the U.S. Government Publishing Office, www.gpo.gov]




CONFERENCE REPORT ON H.R. 1585, NATIONAL DEFENSE AUTHORIZATION ACT FOR 
                            FISCAL YEAR 2008

  Mr. SKELTON submitted the following conference report and statement 
on the bill (H.R. 1585) to authorize appropriations for fiscal year 
2008 for military activities of the Department of Defense, to prescribe 
military personnel strengths for fiscal year 2008, and for other 
purposes:

                  Conference Report (H. Rept. 110-477)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     1585), to authorize appropriations for fiscal year 2008 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.

       This Act may be cited as the ``National Defense 
     Authorization Act for Fiscal Year 2008''.

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. National Guard and Reserve equipment.

                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for M1A2 Abrams System 
              Enhancement Package upgrades.
Sec. 112. Multiyear procurement authority for M2A3/M3A3 Bradley 
              fighting vehicle upgrades.
Sec. 113. Multiyear procurement authority for conversion of CH-47D 
              helicopters to CH-47F configuration.
Sec. 114. Multiyear procurement authority for CH-47F helicopters.
Sec. 115. Limitation on use of funds for Increment 1 of the Warfighter 
              Information Network-Tactical program pending 
              certification to Congress.
Sec. 116. Prohibition on closure of Army Tactical Missile System 
              production line pending report.
Sec. 117. Stryker Mobile Gun System.

                       Subtitle C--Navy Programs

Sec. 121. Multiyear procurement authority for Virginia-class submarine 
              program.
Sec. 122. Report on shipbuilding investment strategy.
Sec. 123. Sense of Congress on the preservation of a skilled United 
              States shipyard workforce.
Sec. 124. Assessments required prior to start of construction on first 
              ship of a shipbuilding program.
Sec. 125. Littoral Combat Ship (LCS) program.

                     Subtitle D--Air Force Programs

Sec. 131. Limitation on Joint Cargo Aircraft.
Sec. 132. Clarification of limitation on retirement of U-2 aircraft.
Sec. 133. Repeal of requirement to maintain retired C-130E tactical 
              aircraft.
Sec. 134. Limitation on retirement of C-130E/H tactical airlift 
              aircraft.
Sec. 135. Limitation on retirement of KC-135E aerial refueling 
              aircraft.
Sec. 136. Transfer to Government of Iraq of three C-130E tactical 
              airlift aircraft.
Sec. 137. Modification of limitations on retirement of B-52 bomber 
              aircraft.

         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. Operational test and evaluation of Future Combat Systems 
              network.
Sec. 212. Limitation on use of funds for systems development and 
              demonstration of Joint Light Tactical Vehicle program.
Sec. 213. Requirement to obligate and expend funds for development and 
              procurement of a competitive propulsion system for the 
              Joint Strike Fighter.
Sec. 214. Limitation on use of funds for defense-wide manufacturing 
              science and technology program.
Sec. 215. Advanced Sensor Applications Program.
Sec. 216. Active protection systems.

                 Subtitle C--Ballistic Missile Defense

Sec. 221. Participation of Director, Operational Test and Evaluation, 
              in missile defense test and evaluation activities.
Sec. 222. Study on future roles and missions of the Missile Defense 
              Agency.
Sec. 223. Budget and acquisition requirements for Missile Defense 
              Agency activities.
Sec. 224. Limitation on use of funds for replacing warhead on SM-3 
              Block IIA missile.
Sec. 225. Extension of Comptroller General assessments of ballistic 
              missile defense programs.
Sec. 226. Limitation on availability of funds for procurement, 
              construction, and deployment of missile defenses in 
              Europe.

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Sec. 227. Sense of Congress on missile defense cooperation with Israel.
Sec. 228. Limitation on availability of funds for deployment of missile 
              defense interceptors in Alaska.
Sec. 229. Policy of the United States on protection of the United 
              States and its allies against Iranian ballistic missiles.

                       Subtitle D--Other Matters

Sec. 231. Coordination of human systems integration activities related 
              to acquisition programs.
Sec. 232. Expansion of authority for provision of laboratory 
              facilities, services, and equipment.
Sec. 233. Modification of cost sharing requirement for Technology 
              Transition Initiative.
Sec. 234. Report on implementation of Manufacturing Technology Program.
Sec. 235. Assessment of sufficiency of test and evaluation personnel.
Sec. 236. Repeal of requirement for separate reports on technology area 
              review and assessment summaries.
Sec. 237. Modification of notice and wait requirement for obligation of 
              funds for foreign comparative test program.
Sec. 238. Strategic Plan for the Manufacturing Technology Program.
Sec. 239. Modification of authorities on coordination of Defense 
              Experimental Program to Stimulate Competitive Research 
              with similar Federal programs.
Sec. 240. Enhancement of defense nanotechnology research and 
              development program.
Sec. 241. Federally funded research and development center assessment 
              of the Defense Experimental Program to Stimulate 
              Competitive Research.
Sec. 242. Cost-benefit analysis of proposed funding reduction for High 
              Energy Laser Systems Test Facility.
Sec. 243. Prompt global strike.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

                  Subtitle B--Environmental Provisions

Sec. 311. Reimbursement of Environmental Protection Agency for certain 
              costs in connection with Moses Lake Wellfield Superfund 
              Site, Moses Lake, Washington.
Sec. 312. Reimbursement of Environmental Protection Agency for certain 
              costs in connection with the Arctic Surplus Superfund 
              Site, Fairbanks, Alaska.
Sec. 313. Payment to Environmental Protection Agency of stipulated 
              penalties in connection with Jackson Park Housing 
              Complex, Washington.
Sec. 314. Report on control of the brown tree snake.
Sec. 315. Notification of certain residents and civilian employees at 
              Camp Lejeune, North Carolina, of exposure to drinking 
              water contamination.

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Availability of funds in Defense Information Systems Agency 
              Working Capital Fund for technology upgrades to Defense 
              Information Systems Network.
Sec. 322. Modification to public-private competition requirements 
              before conversion to contractor performance.
Sec. 323. Public-private competition at end of period specified in 
              performance agreement not required.
Sec. 324. Guidelines on insourcing new and contracted out functions.
Sec. 325. Restriction on Office of Management and Budget influence over 
              Department of Defense public-private competitions.
Sec. 326. Bid protests by Federal employees in actions under Office of 
              Management and Budget Circular A-76.
Sec. 327. Public-private competition required before conversion to 
              contractor performance.
Sec. 328. Extension of authority for Army industrial facilities to 
              engage in cooperative activities with non-Army entities.
Sec. 329. Reauthorization and modification of multi-trades 
              demonstration project.
Sec. 330. Pilot program for availability of working-capital funds to 
              Army for certain product improvements.

              Subtitle D--Extension of Program Authorities

Sec. 341. Extension of Arsenal Support Program Initiative.
Sec. 342. Extension of period for reimbursement for helmet pads 
              purchased by members of the Armed Forces deployed in 
              contingency operations.
Sec. 343. Extension of temporary authority for contract performance of 
              security guard functions.

                          Subtitle E--Reports

Sec. 351. Reports on National Guard readiness for emergencies and major 
              disasters.
Sec. 352. Annual report on prepositioned materiel and equipment.
Sec. 353. Report on incremental cost of early 2007 enhanced deployment.
Sec. 354. Modification of requirements of Comptroller General report on 
              the readiness of Army and Marine Corps ground forces.
Sec. 355. Plan to improve readiness of ground forces of active and 
              reserve components.
Sec. 356. Independent assessment of Civil Reserve Air Fleet viability.
Sec. 357. Department of Defense Inspector General report on physical 
              security of Department of Defense installations.
Sec. 358. Review of high-altitude aviation training.
Sec. 359. Reports on safety measures and encroachment issues and master 
              plan for Warren Grove Gunnery Range, New Jersey.
Sec. 360. Report on search and rescue capabilities of the Air Force in 
              the northwestern United States.
Sec. 361. Report and master infrastructure recapitalization plan for 
              Cheyenne Mountain Air Station, Colorado.

                       Subtitle F--Other Matters

Sec. 371. Enhancement of corrosion control and prevention functions 
              within Department of Defense.
Sec. 372. Authority for Department of Defense to provide support for 
              certain sporting events.
Sec. 373. Authority to impose reasonable restrictions on payment of 
              full replacement value for lost or damaged personal 
              property transported at Government expense.
Sec. 374. Priority transportation on Department of Defense aircraft of 
              retired members residing in Commonwealths and possessions 
              of the United States for certain health care services.
Sec. 375. Recovery of missing military property.
Sec. 376. Retention of combat uniforms by members of the Armed Forces 
              deployed in support of contingency operations.
Sec. 377. Issue of serviceable material of the Navy other than to Armed 
              Forces.
Sec. 378. Reauthorization of Aviation Insurance Program.

              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 2009 and 2010.
Sec. 404. Increase in authorized strengths for Army officers on active 
              duty in the grade of major.
Sec. 405. Increase in authorized strengths for Navy officers on active 
              duty in the grades of lieutenant commander, commander, 
              and captain.
Sec. 406. Increase in authorized daily average of number of members in 
              pay grade E-9.

                       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 2008 limitation on number of non-dual status 
              technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on 
              active duty for operational support.
Sec. 416. Future authorizations and accounting for certain reserve 
              component personnel authorized to be on active duty or 
              full-time National Guard duty to provide operational 
              support.
Sec. 417. Revision of variances authorized for Selected Reserve end 
              strengths.

              Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Assignment of officers to designated positions of importance 
              and responsibility.
Sec. 502. Enhanced authority for Reserve general and flag officers to 
              serve on active duty.
Sec. 503. Increase in years of commissioned service threshold for 
              discharge of probationary officers and for use of force 
              shaping authority.
Sec. 504. Mandatory retirement age for active-duty general and flag 
              officers continued on active duty.
Sec. 505. Authority for reduced mandatory service obligation for 
              initial appointments of officers in critically short 
              health professional specialties.
Sec. 506. Expansion of authority for reenlistment of officers in their 
              former enlisted grade.
Sec. 507. Increase in authorized number of permanent professors at the 
              United States Military Academy.
Sec. 508. Promotion of career military professors of the Navy.

[[Page 32516]]

                Subtitle B--Reserve Component Management

Sec. 511. Retention of military technicians who lose dual status in the 
              Selected Reserve due to combat-related disability.
Sec. 512. Constructive service credit upon original appointment of 
              Reserve officers in certain health care professions.
Sec. 513. Mandatory separation of Reserve officers in the grade of 
              lieutenant general or vice admiral after completion of 38 
              years of commissioned service.
Sec. 514. Maximum period of temporary Federal recognition of person as 
              Army National Guard officer or Air National Guard 
              officer.
Sec. 515. Advance notice to members of reserve components of deployment 
              in support of contingency operations.
Sec. 516. Report on relief from professional licensure and 
              certification requirements for reserve component members 
              on long-term active duty.

                   Subtitle C--Education and Training

Sec. 521. Revisions to authority to pay tuition for off-duty training 
              or education.
Sec. 522. Reduction or elimination of service obligation in an Army 
              Reserve or Army National Guard troop program unit for 
              certain persons selected as medical students at Uniformed 
              Services University of the Health Sciences.
Sec. 523. Repeal of annual limit on number of ROTC scholarships under 
              Army Reserve and Army National Guard financial assistance 
              program.
Sec. 524. Treatment of prior active service of members in uniformed 
              medical accession programs.
Sec. 525. Repeal of post-2007-2008 academic year prohibition on phased 
              increase in cadet strength limit at the United States 
              Military Academy.
Sec. 526. National Defense University master's degree programs.
Sec. 527. Authority of the Air University to confer degree of master of 
              science in flight test engineering.
Sec. 528. Enhancement of education benefits for certain members of 
              reserve components.
Sec. 529. Extension of period of entitlement to educational assistance 
              for certain members of the Selected Reserve affected by 
              force shaping initiatives.
Sec. 530. Time limit for use of educational assistance benefit for 
              certain members of reserve components and resumption of 
              benefit.
Sec. 531. Secretary of Defense evaluation of the adequacy of the 
              degree-granting authorities of certain military 
              universities and educational institutions.
Sec. 532. Report on success of Army National Guard and Reserve Senior 
              Reserve Officers' Training Corps financial assistance 
              program.
Sec. 533. Report on utilization of tuition assistance by members of the 
              Armed Forces.
Sec. 534. Navy Junior Reserve Officers' Training Corps unit for 
              Southold, Mattituck, and Greenport High Schools.
Sec. 535. Report on transfer of administration of certain educational 
              assistance programs for members of the reserve 
              components.

       Subtitle D--Military Justice and Legal Assistance Matters

Sec. 541. Authority to designate civilian employees of the Federal 
              Government and dependents of deceased members as eligible 
              for legal assistance from Department of Defense legal 
              staff resources.
Sec. 542. Authority of judges of the United States Court of Appeals for 
              the Armed Forces to administer oaths.
Sec. 543. Modification of authorities on senior members of the Judge 
              Advocate Generals' Corps.
Sec. 544. Prohibition against members of the Armed Forces participating 
              in criminal street gangs.

                       Subtitle E--Military Leave

Sec. 551. Temporary enhancement of carryover of accumulated leave for 
              members of the Armed Forces.
Sec. 552. Enhancement of rest and recuperation leave.

                   Subtitle F--Decorations and Awards

Sec. 561. Authorization and request for award of Medal of Honor to 
              Leslie H. Sabo, Jr., for acts of valor during the Vietnam 
              War.
Sec. 562. Authorization and request for award of Medal of Honor to 
              Henry Svehla for acts of valor during the Korean War.
Sec. 563. Authorization and request for award of Medal of Honor to 
              Woodrow W. Keeble for acts of valor during the Korean 
              War.
Sec. 564. Authorization and request for award of Medal of Honor to 
              Private Philip G. Shadrach for acts of valor as one of 
              Andrews' Raiders during the Civil War.
Sec. 565. Authorization and request for award of Medal of Honor to 
              Private George D. Wilson for acts of valor as one of 
              Andrews' Raiders during the Civil War.

     Subtitle G--Impact Aid and Defense Dependents Education System

Sec. 571. 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. Impact aid for children with severe disabilities.
Sec. 573. Inclusion of dependents of non-department of Defense 
              employees employed on Federal property in plan relating 
              to force structure changes, relocation of military units, 
              or base closures and realignments.
Sec. 574. Payment of private boarding school tuition for military 
              dependents in overseas areas not served by defense 
              dependents' education system schools.

                     Subtitle H--Military Families

Sec. 581. Department of Defense Military Family Readiness Council and 
              policy and plans for military family readiness.
Sec. 582. Yellow Ribbon Reintegration Program.
Sec. 583. Study to enhance and improve support services and programs 
              for families of members of regular and reserve components 
              undergoing deployment.
Sec. 584. Protection of child custody arrangements for parents who are 
              members of the Armed Forces deployed in support of a 
              contingency operation.
Sec. 585. Family leave in connection with injured members of the Armed 
              Forces.
Sec. 586. Family care plans and deferment of deployment of single 
              parent or dual military couples with minor dependents.
Sec. 587. Education and treatment services for military dependent 
              children with autism.
Sec. 588. Commendation of efforts of Project Compassion in paying 
              tribute to members of the Armed Forces who have fallen in 
              the service of the United States.

                       Subtitle I--Other Matters

Sec. 590. Uniform performance policies for military bands and other 
              musical units.
Sec. 591. Transportation of remains of deceased members of the Armed 
              Forces and certain other persons.
Sec. 592. Expansion of number of academies supportable in any State 
              under STARBASE program.
Sec. 593. Gift acceptance authority.
Sec. 594. Conduct by members of the Armed Forces and veterans out of 
              uniform during hoisting, lowering, or passing of United 
              States flag.
Sec. 595. Annual report on cases reviewed by National Committee for 
              Employer Support of the Guard and Reserve.
Sec. 596. Modification of Certificate of Release or Discharge from 
              Active Duty (DD Form 214).
Sec. 597. Reports on administrative separations of members of the Armed 
              Forces for personality disorder.
Sec. 598. Program to commemorate 50th anniversary of the Vietnam War.
Sec. 599. Recognition of members of the Monuments, Fine Arts, and 
              Archives program of the Civil Affairs and Military 
              Government Sections of the Armed Forces during and 
              following World War II.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2008 increase in military basic pay.
Sec. 602. Basic allowance for housing for reserve component members 
              without dependents who attend accession training while 
              maintaining a primary residence.
Sec. 603. Extension and enhancement of authority for temporary lodging 
              expenses for members of the Armed Forces in areas subject 
              to major disaster declaration or for installations 
              experiencing sudden increase in personnel levels.
Sec. 604. Income replacement payments for reserve component members 
              experiencing extended and frequent mobilization for 
              active duty service.
Sec. 605. Midmonth payment of basic pay for contributions of members of 
              the uniformed services participating in Thrift Savings 
              Plan.

           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.

[[Page 32517]]

Sec. 614. Extension of authorities relating to payment of other bonuses 
              and special pays.
Sec. 615. Increase in incentive special pay and multiyear retention 
              bonus for medical officers.
Sec. 616. Increase in dental officer additional special pay.
Sec. 617. Increase in maximum monthly rate of hardship duty pay and 
              authority to provide hardship duty pay in a lump sum.
Sec. 618. Definition of sea duty for career sea pay to include service 
              as off-cycle crewmembers of multi-crew ships.
Sec. 619. Reenlistment bonus for members of the Selected Reserve.
Sec. 620. Availability of Selected Reserve accession bonus for persons 
              who previously served in the Armed Forces for a short 
              period.
Sec. 621. Availability of nuclear officer continuation pay for officers 
              with more than 26 years of commissioned service.
Sec. 622. Waiver of years-of-service limitation on receipt of critical 
              skills retention bonus.
Sec. 623. Accession bonus for participants in the Armed Forces Health 
              Professions Scholarship and Financial Assistance Program.
Sec. 624. Payment of assignment incentive pay for Reserve members 
              serving in combat zone for more than 22 months.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Payment of inactive duty training travel costs for certain 
              Selected Reserve members.
Sec. 632. Survivors of deceased members eligible for transportation to 
              attend burial ceremonies.
Sec. 633. Allowance for participation of Reserves in electronic 
              screening.
Sec. 634. Allowance for civilian clothing for members of the Armed 
              Forces traveling in connection with medical evacuation.
Sec. 635. Payment of moving expenses for Junior Reserve Officers' 
              Training Corps instructors in hard-to-fill positions.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Expansion of combat-related special compensation eligibility.
Sec. 642. Inclusion of veterans with service-connected disabilities 
              rated as total by reason of unemployability under 
              termination of phase-in of concurrent receipt of retired 
              pay and veterans' disability compensation.
Sec. 643. Recoupment of annuity amounts previously paid, but subject to 
              offset for dependency and indemnity compensation.
Sec. 644. Special survivor indemnity allowance for persons affected by 
              required Survivor Benefit Plan annuity offset for 
              dependency and indemnity compensation.
Sec. 645. Modification of authority of members of the Armed Forces to 
              designate recipients for payment of death gratuity.
Sec. 646. Clarification of application of retired pay multiplier 
              percentage to members of the uniformed services with over 
              30 years of service.
Sec. 647. 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.
Sec. 648. Computation of years of service for purposes of retired pay 
              for non-regular service.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 651. Authority to continue commissary and exchange benefits for 
              certain involuntarily separated members of the Armed 
              Forces.
Sec. 652. Authorization of installment deductions from pay of employees 
              of nonappropriated fund instrumentalities to collect 
              indebtedness to the United States.

  Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus 
                              Authorities

Sec. 661. Consolidation of special pay, incentive pay, and bonus 
              authorities of the uniformed services.
Sec. 662. Transitional provisions.

                       Subtitle G--Other Matters

Sec. 671. Referral bonus authorities.
Sec. 672. Expansion of education loan repayment program for members of 
              the Selected Reserve.
Sec. 673. Ensuring entry into United States after time abroad for 
              permanent resident alien military spouses and children.
Sec. 674. Overseas naturalization for military spouses and children.
Sec. 675. Modification of amount of back pay for members of Navy and 
              Marine Corps selected for promotion while interned as 
              prisoners of war during World War II to take into account 
              changes in Consumer Price Index.

                   TITLE VII--HEALTH CARE PROVISIONS

          Subtitle A--Improvements to Military Health Benefits

Sec. 701. One-year extension of prohibition on increases in certain 
              health care costs for members of the uniformed services.
Sec. 702. Temporary prohibition on increase in copayments under retail 
              pharmacy system of pharmacy benefits program.
Sec. 703. Inclusion of TRICARE retail pharmacy program in Federal 
              procurement of pharmaceuticals.
Sec. 704. Stipend for members of reserve components for health care for 
              certain dependents.
Sec. 705. Authority for expansion of persons eligible for continued 
              health benefits coverage.
Sec. 706. Continuation of eligibility for TRICARE Standard coverage for 
              certain members of the Selected Reserve.
Sec. 707. Extension of pilot program for health care delivery.
Sec. 708. Inclusion of mental health care in definition of health care 
              and report on mental health care services.

                    Subtitle B--Studies and Reports

Sec. 711. Surveys on continued viability of TRICARE Standard and 
              TRICARE Extra.
Sec. 712. Report on training in preservation of remains under combat or 
              combat-related conditions.
Sec. 713. Report on patient satisfaction surveys.
Sec. 714. Report on medical physical examinations of members of the 
              Armed Forces before their deployment.
Sec. 715. Report and study on multiple vaccinations of members of the 
              Armed Forces.
Sec. 716. Review of gender- and ethnic group-specific mental health 
              services and treatment for members of the Armed Forces.
Sec. 717. Licensed mental health counselors and the TRICARE program.
Sec. 718. Report on funding of the Department of Defense for health 
              care.

                       Subtitle C--Other Matters

Sec. 721. Prohibition on conversion of military medical and dental 
              positions to civilian medical and dental positions.
Sec. 722. Establishment of Joint Pathology Center.

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

Sec. 800. Short title.

             Subtitle A--Acquisition Policy and Management

Sec. 801. Internal controls for procurements on behalf of the 
              Department of Defense by certain non-Defense agencies.
Sec. 802. Lead systems integrators.
Sec. 803.  Reinvestment in domestic sources of strategic materials.
Sec. 804. Clarification of the protection of strategic materials 
              critical to national security.
Sec. 805. Procurement of commercial services.
Sec. 806. Specification of amounts requested for procurement of 
              contract services.
Sec. 807. Inventories and reviews of contracts for services.
Sec. 808. Independent management reviews of contracts for services.
Sec. 809.  Implementation and enforcement of requirements applicable to 
              undefinitized contractual actions.
Sec. 810. Clarification of limited acquisition authority for Special 
              Operations Command.

 Subtitle B--Provisions Relating to Major Defense Acquisition Programs

Sec. 811. Requirements applicable to multiyear contracts for the 
              procurement of major systems of the Department of 
              Defense.
Sec. 812. Changes to Milestone B certifications.
Sec. 813. Comptroller General report on Department of Defense 
              organization and structure for major defense acquisition 
              programs.
Sec. 814.  Clarification of submission of cost or pricing data on 
              noncommercial modifications of commercial items.
Sec. 815. Clarification of rules regarding the procurement of 
              commercial items.
Sec. 816.  Review of systemic deficiencies on major defense acquisition 
              programs.
Sec. 817.  Investment strategy for major defense acquisition programs.
Sec. 818. Report on implementation of recommendations on total 
              ownership cost for major weapon systems.

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

Sec. 821. Plan for restricting Government-unique contract clauses on 
              commercial contracts.
Sec. 822. Extension of authority for use of simplified acquisition 
              procedures for certain commercial items.
Sec. 823. Five-year extension of authority to carry out certain 
              prototype projects.

[[Page 32518]]

Sec. 824. Exemption of Special Operations Command from certain 
              requirements for certain contracts relating to vessels, 
              aircraft, and combat vehicles.
Sec. 825. Provision of authority to maintain equipment to unified 
              combatant command for joint warfighting.
Sec. 826. Market research.
Sec. 827. Modification of competition requirements for purchases from 
              Federal Prison Industries.
Sec. 828. Multiyear contract authority for electricity from renewable 
              energy sources.
Sec. 829. Procurement of fire resistant rayon fiber for the production 
              of uniforms from foreign sources.
Sec. 830. Comptroller General review of noncompetitive awards of 
              congressional and executive branch interest items.

               Subtitle D--Accountability in Contracting

Sec. 841. Commission on Wartime Contracting in Iraq and Afghanistan.
Sec. 842. Investigation of waste, fraud, and abuse in wartime contracts 
              and contracting processes in Iraq and Afghanistan.
Sec. 843. Enhanced competition requirements for task and delivery order 
              contracts.
Sec. 844. Public disclosure of justification and approval documents for 
              noncompetitive contracts.
Sec. 845. Disclosure of government contractor audit findings.
Sec. 846. Protection for contractor employees from reprisal for 
              disclosure of certain information.
Sec. 847.  Requirements for senior Department of Defense officials 
              seeking employment with defense contractors.
Sec. 848. Report on contractor ethics programs of Major Defense 
              contractors.
Sec. 849. Contingency contracting training for personnel outside the 
              acquisition workforce and evaluations of Army Commission 
              recommendations.

              Subtitle E--Acquisition Workforce Provisions

Sec. 851. Requirement for section on defense acquisition workforce in 
              strategic human capital plan.
Sec. 852. Department of Defense Acquisition Workforce Development Fund.
Sec. 853. Extension of authority to fill shortage category positions 
              for certain Federal acquisition positions.
Sec. 854. Repeal of sunset of acquisition workforce training fund.
Sec. 855. Federal acquisition workforce improvements.

             Subtitle F--Contracts in Iraq and Afghanistan

Sec. 861. Memorandum of understanding on matters relating to 
              contracting.
Sec. 862. Contractors performing private security functions in areas of 
              combat operations.
Sec. 863. Comptroller General reviews and reports on contracting in 
              Iraq and Afghanistan.
Sec. 864. Definitions and other general provisions.

              Subtitle G--Defense Materiel Readiness Board

Sec. 871. Establishment of Defense Materiel Readiness Board.
Sec. 872. Critical materiel readiness shortfalls.

                       Subtitle H--Other Matters

Sec. 881. Clearinghouse for rapid identification and dissemination of 
              commercial information technologies.
Sec. 882. Authority to license certain military designations and 
              likenesses of weapons systems to toy and hobby 
              manufacturers.
Sec. 883. Modifications to limitation on contracts to acquire military 
              flight simulator.
Sec. 884. Requirements relating to waivers of certain domestic source 
              limitations relating to specialty metals.
Sec. 885. Telephone services for military personnel serving in combat 
              zones.
Sec. 886. Enhanced authority to acquire products and services produced 
              in Iraq and Afghanistan.
Sec. 887. Defense Science Board review of Department of Defense 
              policies and procedures for the acquisition of 
              information technology.
Sec. 888. Green procurement policy.
Sec. 889. Comptroller General review of use of authority under the 
              Defense Production Act of 1950.
Sec. 890. Prevention of export control violations.
Sec. 891. Procurement goal for Native Hawaiian-serving institutions and 
              Alaska Native-serving institutions.
Sec. 892. Competition for procurement of small arms supplied to Iraq 
              and Afghanistan.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Repeal of limitation on major Department of Defense 
              headquarters activities personnel and related report.
Sec. 902. Flexibility to adjust the number of deputy chiefs and 
              assistant chiefs.
Sec. 903. Change in eligibility requirements for appointment to 
              Department of Defense leadership positions.
Sec. 904. Management of the Department of Defense.
Sec. 905. Revision in guidance relating to combatant command 
              acquisition authority.
Sec. 906. Department of Defense Board of Actuaries.
Sec. 907. Modification of background requirement of individuals 
              appointed as Under Secretary of Defense for Acquisition, 
              Technology, and Logistics.
Sec. 908. Assistant Secretaries of the military departments for 
              acquisition matters; principal military deputies.
Sec. 909. Sense of Congress on term of Office of the Director of 
              Operational Test and Evaluation.

                      Subtitle B--Space Activities

Sec. 911. Space protection strategy.
Sec. 912. Biennial report on management of space cadre within the 
              Department of Defense.
Sec. 913. Additional report on oversight of acquisition for defense 
              space programs.

             Subtitle C--Chemical Demilitarization Program

Sec. 921. Chemical demilitarization citizens advisory commissions.
Sec. 922. Sense of Congress on completion of destruction of United 
              States chemical weapons stockpile.
Sec. 923. Repeal of certain qualifications requirement for director of 
              chemical demilitarization management organization.
Sec. 924. Modification of termination of assistance to State and local 
              governments after completion of the destruction of the 
              United States chemical weapons stockpile.

                Subtitle D--Intelligence-Related Matters

Sec. 931. Technical amendments to title 10, United States Code, arising 
              from enactment of the Intelligence Reform and Terrorism 
              Prevention Act of 2004.

                Subtitle E--Roles and Missions Analysis

Sec. 941. Requirement for quadrennial roles and missions review.
Sec. 942. Joint Requirements Oversight Council additional duties 
              relating to core mission areas.
Sec. 943. Requirement for certification of major systems prior to 
              technology development.
Sec. 944. Presentation of future-years mission budget by core mission 
              area.
Sec. 951. Department of Defense consideration of effect of climate 
              change on Department facilities, capabilities, and 
              missions.
Sec. 952. Interagency policy coordination.
Sec. 953. Expansion of employment creditable under service agreements 
              under National Security Education Program.
Sec. 954. Board of Regents for the Uniformed Services University of the 
              Health Sciences.
Sec. 955. Establishment of Department of Defense School of Nursing.
Sec. 956. Inclusion of commanders of Western Hemisphere combatant 
              commands in Board of Visitors of Western Hemisphere 
              Institute for Security Cooperation.
Sec. 957. Comptroller General assessment of reorganization of the 
              Office of the Under Secretary of Defense for Policy.
Sec. 958. Report on foreign language proficiency.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
              fiscal year 2008.
Sec. 1003. Authorization of additional emergency supplemental 
              appropriations for fiscal year 2007.
Sec. 1004. Modification of fiscal year 2007 general transfer authority.
Sec. 1005. Financial management transformation initiative for the 
              Defense Agencies.
Sec. 1006. Repeal of requirement for two-year budget cycle for the 
              Department of Defense.

          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Limitation on leasing of vessels.
Sec. 1012. Policy relating to major combatant vessels of the strike 
              forces of the United States Navy.

                  Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority for joint task forces to provide 
              support to law enforcement agencies conducting counter-
              terrorism activities.
Sec. 1022. Expansion of authority to provide additional support for 
              counter-drug activities in certain foreign countries.
Sec. 1023. Report on counternarcotics assistance for the Government of 
              Haiti.

         Subtitle D--Miscellaneous Authorities and Limitations

Sec. 1031. Provision of Air Force support and services to foreign 
              military and state aircraft.

[[Page 32519]]

Sec. 1032. Department of Defense participation in Strategic Airlift 
              Capability Partnership.
Sec. 1033. Improved authority to provide rewards for assistance in 
              combating terrorism.
Sec. 1034. Support for non-Federal development and testing of material 
              for chemical agent defense.
Sec. 1035. Prohibition on sale of F-14 fighter aircraft and related 
              parts.

                          Subtitle E--Reports

Sec. 1041. Extension and modification of report relating to hardened 
              and deeply buried targets.
Sec. 1042. Report on joint modeling and simulation activities.
Sec. 1043. Renewal of submittal of plans for prompt global strike 
              capability.
Sec. 1044. Report on workforce required to support the nuclear missions 
              of the Navy and the Department of Energy.
Sec. 1045. Comptroller General report on Defense Finance and Accounting 
              Service response to Butterbaugh v. Department of Justice.
Sec. 1046. Study on size and mix of airlift force.
Sec. 1047. Report on feasibility of establishing a domestic military 
              aviation national training center.
Sec. 1048. Limited field user evaluations for combat helmet pad 
              suspension systems.
Sec. 1049. Study on national security interagency system.
Sec. 1050. Report on solid rocket motor industrial base.
Sec. 1051. Reports on establishment of a memorial for members of the 
              Armed Forces who died in the air crash in Bakers Creek, 
              Australia, and establishment of other memorials in 
              Arlington National Cemetery.

                       Subtitle F--Other Matters

Sec. 1061. Reimbursement for National Guard support provided to Federal 
              agencies.
Sec. 1062. Congressional Commission on the Strategic Posture of the 
              United States.
Sec. 1063. Technical and clerical amendments.
Sec. 1064. Repeal of certification requirement.
Sec. 1065. Maintenance of capability for space-based nuclear detection.
Sec. 1066. Sense of Congress regarding detainees at Naval Station, 
              Guantanamo Bay, Cuba.
Sec. 1067. A report on transferring individuals detained at Naval 
              Station, Guantanamo Bay, Cuba.
Sec. 1068. Repeal of provisions in section 1076 of Public Law 109-364 
              relating to use of Armed Forces in major public 
              emergencies.
Sec. 1069. Standards required for entry to military installations in 
              United States.
Sec. 1070. Revised nuclear posture review.
Sec. 1071. Termination of Commission on the Implementation of the New 
              Strategic Posture of the United States.
Sec. 1072. Security clearances; limitations.
Sec. 1073. Improvements in the process for the issuance of security 
              clearances.
Sec. 1074. Protection of certain individuals.
Sec. 1075. Modification of authorities on Commission to Assess the 
              Threat to the United States from Electromagnetic Pulse 
              Attack.
Sec. 1076. Sense of Congress on Small Business Innovation Research 
              Program.
Sec. 1077. Revision of proficiency flying definition.
Sec. 1078. Qualifications for public aircraft status of aircraft under 
              contract with the Armed Forces.
Sec. 1079. Communications with the Committees on Armed Services of the 
              Senate and the House of Representatives.
Sec. 1080. Retention of reimbursement for provision of reciprocal fire 
              protection services.
Sec. 1081. Pilot program on commercial fee-for-service air refueling 
              support for the Air Force.
Sec. 1082. Advisory panel on Department of Defense capabilities for 
              support of civil authorities after certain incidents.
Sec. 1083. Terrorism exception to immunity.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Extension of authority to waive annual limitation on total 
              compensation paid to Federal civilian employees working 
              overseas under areas of United States Central Command.
Sec. 1102. Continuation of life insurance coverage for Federal 
              employees called to active duty.
Sec. 1103. Transportation of dependents, household effects, and 
              personal property to former home following death of 
              Federal employee where death resulted from disease or 
              injury incurred in the Central Command area of 
              responsibility.
Sec. 1104. Special benefits for civilian employees assigned on 
              deployment temporary change of station.
Sec. 1105. Death gratuity authorized for Federal employees.
Sec. 1106. Modifications to the National Security Personnel System.
Sec. 1107. Requirement for full implementation of personnel 
              demonstration project.
Sec. 1108. Authority for inclusion of certain Office of Defense 
              Research and Engineering positions in experimental 
              personnel program for scientific and technical personnel.
Sec. 1109. Pilot program for the temporary assignment of information 
              technology personnel to private sector organizations.
Sec. 1110. Compensation for Federal wage system employees for certain 
              travel hours.
Sec. 1111. Travel compensation for wage grade personnel.
Sec. 1112. Accumulation of annual leave by senior level employees.
Sec. 1113. Uniform allowances for civilian employees.
Sec. 1114. Flexibility in setting pay for employees who move from a 
              Department of Defense or Coast Guard nonappropriated fund 
              instrumentality position to a position in the General 
              Schedule pay system.
Sec. 1115. Retirement service credit for service as cadet or midshipman 
              at a military service academy.
Sec. 1116. Authorization for increased compensation for faculty and 
              staff of the Uniformed Services University of the Health 
              Sciences.
Sec. 1117. Report on establishment of a scholarship program for 
              civilian mental health professionals.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                  Subtitle A--Assistance and Training

Sec. 1201. Military-to-military contacts and comparable activities.
Sec. 1202. Authority for support of military operations to combat 
              terrorism.
Sec. 1203. Medical care and temporary duty travel expenses for liaison 
              officers of certain foreign nations.
Sec. 1204. Extension and expansion of Department of Defense authority 
              to participate in multinational military centers of 
              excellence.
Sec. 1205. Reauthorization of Commanders' Emergency Response Program.
Sec. 1206. Authority to build the capacity of the Pakistan Frontier 
              Corps.
Sec. 1207. Authority to equip and train foreign personnel to assist in 
              accounting for missing United States Government 
              personnel.
Sec. 1208. Authority to provide automatic identification system data on 
              maritime shipping to foreign countries and international 
              organizations.
Sec. 1209. Report on foreign-assistance related programs carried out by 
              the Department of Defense.
Sec. 1210. Extension and enhancement of authority for security and 
              stabilization assistance.
Sec. 1211. Government Accountability Office report on Global Peace 
              Operations Initiative.
Sec. 1212. Repeal of limitations on military assistance under the 
              American Servicemembers' Protection Act of 2002.

          Subtitle B--Matters Relating to Iraq and Afghanistan

Sec. 1221. Modification of authorities relating to the Office of the 
              Special Inspector General for Iraq Reconstruction.
Sec. 1222. Limitation on availability of funds for certain purposes 
              relating to Iraq.
Sec. 1223. Report on United States policy and military operations in 
              Iraq.
Sec. 1224. Report on a comprehensive set of performance indicators and 
              measures for progress toward military and political 
              stability in Iraq.
Sec. 1225. Report on support from Iran for attacks against coalition 
              forces in Iraq.
Sec. 1226. Sense of Congress on the consequences of a failed state in 
              Iraq.
Sec. 1227. Sense of Congress on federalism in Iraq.
Sec. 1228. Tracking and monitoring of defense articles provided to the 
              Government of Iraq and other individuals and groups in 
              Iraq.
Sec. 1229. Special Inspector General for Afghanistan Reconstruction.
Sec. 1230. Report on progress toward security and stability in 
              Afghanistan.
Sec. 1231. United States plan for sustaining the Afghanistan National 
              Security Forces.
Sec. 1232. Report on enhancing security and stability in the region 
              along the border of Afghanistan and Pakistan.
Sec. 1233. Reimbursement of certain coalition nations for support 
              provided to United States military operations.
Sec. 1234. Logistical support for coalition forces supporting 
              operations in Iraq and Afghanistan.

                    Subtitle C--Iraq Refugee Crisis

Sec. 1241. Short title.
Sec. 1242. Processing mechanisms.
Sec. 1243. United States refugee program processing priorities.
Sec. 1244. Special immigrant status for certain Iraqis.

[[Page 32520]]

Sec. 1245. Senior Coordinator for Iraqi Refugees and Internally 
              Displaced Persons.
Sec. 1246. Countries with significant populations of Iraqi refugees.
Sec. 1247. Motion to reopen denial or termination of asylum.
Sec. 1248. Reports.
Sec. 1249. Authorization of appropriations.

             Subtitle D--Other Authorities and Limitations

Sec. 1251. Cooperative opportunities documents under cooperative 
              research and development agreements with NATO 
              organizations and other allied and friendly foreign 
              countries.
Sec. 1252. Extension and expansion of temporary authority to use 
              acquisition and cross-servicing agreements to lend 
              military equipment for personnel protection and 
              survivability.
Sec. 1253. Acceptance of funds from the Government of Palau for costs 
              of United States military Civic Action Team in Palau.
Sec. 1254. Repeal of requirement relating to North Korea.
Sec. 1255. Justice for Osama bin Laden and other leaders of al Qaeda.
Sec. 1256. Extension of Counterproliferation Program Review Committee.
Sec. 1257. Sense of Congress on the Western Hemisphere Institute for 
              Security Cooperation.
Sec. 1258. Sense of Congress on Iran.

                          Subtitle E--Reports

Sec. 1261. One-year extension of update on report on claims relating to 
              the bombing of the Labelle Discotheque.
Sec. 1262. Report on United States policy toward Darfur, Sudan.
Sec. 1263. Inclusion of information on asymmetric capabilities in 
              annual report on military power of the People's Republic 
              of China.
Sec. 1264. Report on application of the Uniform Code of Military 
              Justice to civilians accompanying the Armed Forces during 
              a time of declared war or contingency operation.
Sec. 1265. Report on family reunions between United States citizens and 
              their relatives in North Korea.
Sec. 1266. Reports on prevention of mass atrocities.
Sec. 1267. Report on threats to the United States from ungoverned 
              areas.

  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. Specification of Cooperative Threat Reduction programs in 
              states outside the former Soviet Union.
Sec. 1304. Repeal of restrictions on assistance to states of the former 
              Soviet Union for Cooperative Threat Reduction.
Sec. 1305. Modification of authority to use Cooperative Threat 
              Reduction funds outside the former Soviet Union.
Sec. 1306. New initiatives for the Cooperative Threat Reduction 
              Program.
Sec. 1307. Report relating to chemical weapons destruction at 
              Shchuch'ye, Russia.
Sec. 1308. National Academy of Sciences study of prevention of 
              proliferation of biological weapons.

                    TITLE XIV--OTHER AUTHORIZATIONS

                     Subtitle A--Military Programs

Sec. 1401. Working capital funds.
Sec. 1402. National Defense Sealift Fund.
Sec. 1403. Defense Health Program.
Sec. 1404. Chemical agents and munitions destruction, Defense.
Sec. 1405. Drug Interdiction and Counter-Drug Activities, Defense-wide.
Sec. 1406. Defense Inspector General.

                 Subtitle B--National Defense Stockpile

Sec. 1411. Authorized uses of National Defense Stockpile funds.
Sec. 1412. Revisions to required receipt objectives for previously 
              authorized disposals from the National Defense Stockpile.
Sec. 1413. Disposal of ferromanganese.
Sec. 1414. Disposal of chrome metal.

                Subtitle C--Armed Forces Retirement Home

Sec. 1421. Authorization of appropriations for Armed Forces Retirement 
              Home.
Sec. 1422. Administration and oversight of the Armed Forces Retirement 
              Home.

  TITLE XV--AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR 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. Joint Improvised Explosive Device Defeat Fund.
Sec. 1506. Defense-wide activities procurement.
Sec. 1507. Research, development, test, and evaluation.
Sec. 1508. Operation and maintenance.
Sec. 1509. Working capital funds.
Sec. 1510. Other Department of Defense programs.
Sec. 1511. Iraq Freedom Fund.
Sec. 1512. Iraq Security Forces Fund.
Sec. 1513. Afghanistan Security Forces Fund.
Sec. 1514. Military personnel.
Sec. 1515. Strategic Readiness Fund.
Sec. 1516. Treatment as additional authorizations.
Sec. 1517. Special transfer authority.

                   TITLE XVI--WOUNDED WARRIOR MATTERS

Sec. 1601. Short title.
Sec. 1602. General definitions.
Sec. 1603. Consideration of gender-specific needs of recovering service 
              members and veterans.

Subtitle A--Policy on Improvements to Care, Management, and Transition 
                     of Recovering Service Members

Sec. 1611. Comprehensive policy on improvements to care, management, 
              and transition of recovering service members.
Sec. 1612. Medical evaluations and physical disability evaluations of 
              recovering service members.
Sec. 1613. Return of recovering service members to active duty in the 
              Armed Forces.
Sec. 1614. Transition of recovering service members from care and 
              treatment through the Department of Defense to care, 
              treatment, and rehabilitation through the Department of 
              Veterans Affairs.
Sec. 1615. Reports.
Sec. 1616. Establishment of a wounded warrior resource center.
Sec. 1617. Notification to Congress of hospitalization of combat 
              wounded service members.
Sec. 1618. Comprehensive plan on prevention, diagnosis, mitigation, 
              treatment, and rehabilitation of, and research on, 
              traumatic brain injury, post-traumatic stress disorder, 
              and other mental health conditions in members of the 
              Armed Forces.

    Subtitle B--Centers of Excellence in the Prevention, Diagnosis, 
 Mitigation, Treatment, and Rehabilitation of Traumatic Brain Injury, 
            Post-Traumatic Stress Disorder, and Eye Injuries

Sec. 1621. Center of excellence in the prevention, diagnosis, 
              mitigation, treatment, and rehabilitation of traumatic 
              brain injury.
Sec. 1622. Center of excellence in prevention, diagnosis, mitigation, 
              treatment, and rehabilitation of post-traumatic stress 
              disorder and other mental health conditions.
Sec. 1623. Center of excellence in prevention, diagnosis, mitigation, 
              treatment, and rehabilitation of military eye injuries.
Sec. 1624. Report on establishment of centers of excellence.

                    Subtitle C--Health Care Matters

Sec. 1631. Medical care and other benefits for members and former 
              members of the Armed Forces with severe injuries or 
              illnesses.
Sec. 1632. Reimbursement of travel expenses of retired members with 
              combat-related disabilities for follow-on specialty care, 
              services, and supplies.
Sec. 1633. Respite care and other extended care benefits for members of 
              the uniformed services who incur a serious injury or 
              illness on active duty.
Sec. 1634. Reports.
Sec. 1635. Fully interoperable electronic personal health information 
              for the Department of Defense and Department of Veterans 
              Affairs.
Sec. 1636. Enhanced personnel authorities for the Department of Defense 
              for health care professionals for care and treatment of 
              wounded and injured members of the Armed Forces.
Sec. 1637. Continuation of transitional health benefits for members of 
              the Armed Forces pending resolution of service-related 
              medical conditions.

                     Subtitle D--Disability Matters

Sec. 1641. Utilization of veterans' presumption of sound condition in 
              establishing eligibility of members of the Armed Forces 
              for retirement for disability.
Sec. 1642. Requirements and limitations on Department of Defense 
              determinations of disability with respect to members of 
              the Armed Forces.
Sec. 1643. Review of separation of members of the Armed Forces 
              separated from service with a disability rating of 20 
              percent disabled or less.
Sec. 1644. Authorization of pilot programs to improve the disability 
              evaluation system for members of the Armed Forces.
Sec. 1645. Reports on Army action plan in response to deficiencies in 
              the Army physical disability evaluation system.
Sec. 1646. Enhancement of disability severance pay for members of the 
              Armed Forces.

[[Page 32521]]

Sec. 1647. Assessments of continuing utility and future role of 
              temporary disability retired list.
Sec. 1648. Standards for military medical treatment facilities, 
              specialty medical care facilities, and military quarters 
              housing patients and annual report on such facilities.
Sec. 1649. Reports on Army Medical Action Plan in response to 
              deficiencies identified at Walter Reed Army Medical 
              Center, District of Columbia.
Sec. 1650. Required certifications in connection with closure of Walter 
              Reed Army Medical Center, District of Columbia.
Sec. 1651. Handbook for members of the Armed Forces on compensation and 
              benefits available for serious injuries and illnesses.

                    Subtitle E--Studies and Reports

Sec. 1661. Study on physical and mental health and other readjustment 
              needs of members and former members of the Armed Forces 
              who deployed in Operation Iraqi Freedom and Operation 
              Enduring Freedom and their families.
Sec. 1662. Access of recovering service members to adequate outpatient 
              residential facilities.
Sec. 1663. Study and report on support services for families of 
              recovering service members.
Sec. 1664. Report on traumatic brain injury classifications.
Sec. 1665. Evaluation of the Polytrauma Liaison Officer/Non-
              Commissioned Officer program.

                       Subtitle F--Other Matters

Sec. 1671. Prohibition on transfer of resources from medical care.
Sec. 1672. Medical care for families of members of the Armed Forces 
              recovering from serious injuries or illnesses.
Sec. 1673. Improvement of medical tracking system for members of the 
              Armed Forces deployed overseas.
Sec. 1674. Guaranteed funding for Walter Reed Army Medical Center, 
              District of Columbia.
Sec. 1675. Use of leave transfer program by wounded veterans who are 
              Federal employees.
Sec. 1676. Moratorium on conversion to contractor performance of 
              Department of Defense functions at military medical 
              facilities.

                      TITLE XVII--VETERANS MATTERS

Sec. 1701. Sense of Congress on Department of Veterans Affairs efforts 
              in the rehabilitation and reintegration of veterans with 
              traumatic brain injury.
Sec. 1702. Individual rehabilitation and community reintegration plans 
              for veterans and others with traumatic brain injury.
Sec. 1703. Use of non-Department of Veterans Affairs facilities for 
              implementation of rehabilitation and community 
              reintegration plans for traumatic brain injury.
Sec. 1704. Research, education, and clinical care program on traumatic 
              brain injury.
Sec. 1705. Pilot program on assisted living services for veterans with 
              traumatic brain injury.
Sec. 1706. Provision of age-appropriate nursing home care.
Sec. 1707. Extension of period of eligibility for health care for 
              veterans of combat service during certain periods of 
              hostilities and war.
Sec. 1708. Service-connection and assessments for mental health 
              conditions in veterans.
Sec. 1709. Modification of requirements for furnishing outpatient 
              dental services to veterans with service-connected dental 
              conditions or disabilities.
Sec. 1710. Clarification of purpose of outreach services program of 
              Department of Veterans Affairs.
Sec. 1711. Designation of fiduciary or trustee for purposes of 
              Traumatic Servicemembers' Group Life Insurance.

     TITLE XVIII--NATIONAL GUARD BUREAU MATTERS AND RELATED MATTERS

Sec. 1801. Short title.

                   Subtitle A--National Guard Bureau

Sec. 1811. Appointment, grade, duties, and retirement of the Chief of 
              the National Guard Bureau.
Sec. 1812. Establishment of National Guard Bureau as joint activity of 
              the Department of Defense.
Sec. 1813. Enhancement of functions of the National Guard Bureau.
Sec. 1814. Requirement for Secretary of Defense to prepare plan for 
              response to natural disasters and terrorist events.
Sec. 1815. Determination of Department of Defense civil support 
              requirements.

          Subtitle B--Additional Reserve Component Enhancement

Sec. 1821. United States Northern Command.
Sec. 1822. Council of Governors.
Sec. 1823. Plan for Reserve Forces Policy Board.
Sec. 1824. High-level positions authorized or required to be held by 
              reserve component general or flag officers.
Sec. 1825. Retirement age and years of service limitations on certain 
              reserve general and flag officers.
Sec. 1826. Additional reporting requirements relating to National Guard 
              equipment.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.
Sec. 2002. Expiration of authorizations and amounts required to be 
              specified by law.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Termination of authority to carry out fiscal year 2007 Army 
              projects for which funds were not appropriated.
Sec. 2106. Technical amendments to Military Construction Authorization 
              Act for Fiscal Year 2007.
Sec. 2107. Modification of authority to carry out certain fiscal year 
              2006 project.
Sec. 2108. Extension of authorization of certain fiscal year 2005 
              project.
Sec. 2109. Ground lease, SOUTHCOM headquarters facility, Miami-Doral, 
              Florida.

                            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. Termination of authority to carry out fiscal year 2007 Navy 
              projects for which funds were not appropriated.
Sec. 2206. Modification of authority to carry out certain fiscal year 
              2005 project.
Sec. 2207. Repeal of authorization for construction of Navy Outlying 
              Landing Field, Washington County, North Carolina.

                         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. Termination of authority to carry out fiscal year 2007 Air 
              Force projects for which funds were not appropriated.
Sec. 2306. Modification of authority to carry out certain fiscal year 
              2006 projects.
Sec. 2307. Extension of authorizations of certain fiscal year 2005 
              projects.
Sec. 2308. Extension of authorizations of certain fiscal year 2004 
              projects.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Energy conservation projects.
Sec. 2403. Authorization of appropriations, Defense Agencies.
Sec. 2404. Termination or modification of authority to carry out 
              certain fiscal year 2007 Defense Agencies projects.
Sec. 2405. Munitions demilitarization facilities, Blue Grass Army 
              Depot, Kentucky, and Pueblo Chemical Activity, Colorado.
Sec. 2406. Extension of authorizations of certain fiscal year 2005 
              projects.

   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 Army National Guard construction and land 
              acquisition projects.
Sec. 2602. Authorized Army Reserve construction and land acquisition 
              projects.
Sec. 2603. Authorized Navy Reserve and Marine Corps Reserve 
              construction and land acquisition projects.
Sec. 2604. Authorized Air National Guard construction and land 
              acquisition projects.
Sec. 2605. Authorized Air Force Reserve construction and land 
              acquisition projects.
Sec. 2606. Authorization of appropriations, National Guard and Reserve.
Sec. 2607. Termination of authority to carry out fiscal year 2007 Guard 
              and Reserve projects for which funds were not 
              appropriated.
Sec. 2608. Modification of authority to carry out fiscal year 2006 Air 
              Force Reserve construction and acquisition projects.

[[Page 32522]]

Sec. 2609. Extension of authorizations of certain fiscal year 2005 
              projects.
Sec. 2610. Extension of authorizations of certain Fiscal Year 2004 
              projects.

          TITLE XXVII--BASE CLOSURE AND REALIGNMENT ACTIVITIES

Sec. 2701. Authorization of appropriations for base closure and 
              realignment activities funded through Department of 
              Defense Base Closure Account 1990.
Sec. 2702. Authorized base closure and realignment activities funded 
              through Department of Defense Base Closure Account 2005.
Sec. 2703. Authorization of appropriations for base closure and 
              realignment activities funded through Department of 
              Defense Base Closure Account 2005.
Sec. 2704. Authorized cost and scope of work variations for military 
              construction and military family housing projects related 
              to base closures and realignments.
Sec. 2705. Transfer of funds from Department of Defense Base Closure 
              Account 2005 to Department of Defense Housing Funds.
Sec. 2706. Comprehensive accounting of funding required to ensure 
              timely implementation of 2005 Defense Base Closure and 
              Realignment Commission recommendations.
Sec. 2707. Relocation of units from Roberts United States Army Reserve 
              Center and Navy-Marine Corps Reserve Center, Baton Rouge, 
              Louisiana.
Sec. 2708. Acquisition of real property, Fort Belvoir, Virginia, as 
              part of the realignment of the installation.
Sec. 2709. Report on availability of traffic infrastructure and 
              facilities to support base realignment.

        TITLE XXVIIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

Sec. 2801. Authority to use operation and maintenance funds for 
              construction projects outside the United States.
Sec. 2802. Clarification of requirement for authorization of military 
              construction.
Sec. 2803. Increase in thresholds for unspecified minor military 
              construction projects.
Sec. 2804. Temporary authority to support revitalization of Department 
              of Defense laboratories through unspecified minor 
              military construction projects.
Sec. 2805. Extension of authority to accept equalization payments for 
              facility exchanges.
Sec. 2806. Modifications of authority to lease military family housing.
Sec. 2807. Expansion of authority to exchange reserve component 
              facilities.
Sec. 2808. Limitation on use of alternative authority for acquisition 
              and improvement of military housing for privatization of 
              temporary lodging facilities.
Sec. 2809. Two-year extension of temporary program to use minor 
              military construction authority for construction of child 
              development centers.
Sec. 2810. Report on housing privatization initiatives.

        Subtitle B--Real Property and Facilities Administration

Sec. 2821. Requirement to report real property transactions resulting 
              in annual costs of more than $750,000.
Sec. 2822. Continued consolidation of real property provisions without 
              substantive change.
Sec. 2823. Modification of authority to lease non-excess property of 
              the military departments.
Sec. 2824. Cooperative agreement authority for management of cultural 
              resources on certain sites outside military 
              installations.
Sec. 2825. Agreements to limit encroachments and other constraints on 
              military training, testing, and operations.
Sec. 2826. Expansion to all military departments of Army pilot program 
              for purchase of certain municipal services for military 
              installations.
Sec. 2827. Prohibition on commercial flights into Selfridge Air 
              National Guard Base.
Sec. 2828. Sense of Congress on Department of Defense actions to 
              protect installations, ranges, and military airspace from 
              encroachment.
Sec. 2829. Reports on Army and Marine Corps operational ranges.
Sec. 2830. Niagara Air Reserve Base, New York, basing report.
Sec. 2831. Report on the Pinon Canyon Maneuver Site, Colorado.

                      Subtitle C--Land Conveyances

Sec. 2841. Modification of conveyance authority, Marine Corps Base, 
              Camp Pendleton, California.
Sec. 2842. Grant of easement, Eglin Air Force Base, Florida.
Sec. 2843. Land conveyance, Lynn Haven Fuel Depot, Lynn Haven, Florida.
Sec. 2844. Modification of lease of property, National Flight Academy 
              at the National Museum of Naval Aviation, Naval Air 
              Station, Pensacola, Florida.
Sec. 2845. Land exchange, Detroit, Michigan.
Sec. 2846. Transfer of jurisdiction, former Nike missile site, Grosse 
              Ile, Michigan.
Sec. 2847. Modification to land conveyance authority, Fort Bragg, North 
              Carolina.
Sec. 2848. Land conveyance, Lewis and Clark United States Army Reserve 
              Center, Bismarck, North Dakota.
Sec. 2849. Land exchange, Fort Hood, Texas.

                      Subtitle D--Energy Security

Sec. 2861. Repeal of congressional notification requirement regarding 
              cancellation ceiling for Department of Defense energy 
              savings performance contracts.
Sec. 2862. Definition of alternative fueled vehicle.
Sec. 2863. Use of energy efficient lighting fixtures and bulbs in 
              Department of Defense facilities.
Sec. 2864. Reporting requirements relating to renewable energy use by 
              Department of Defense to meet Department electricity 
              needs.

                       Subtitle E--Other Matters

Sec. 2871. Revised deadline for transfer of Arlington Naval Annex to 
              Arlington National Cemetery.
Sec. 2872. Transfer of jurisdiction over Air Force Memorial to 
              Department of the Air Force.
Sec. 2873. Report on plans to replace the monument at the Tomb of the 
              Unknowns at Arlington National Cemetery, Virginia.
Sec. 2874. Increased authority for repair, restoration, and 
              preservation of Lafayette Escadrille Memorial, Marnes-la-
              Coquette, France.
Sec. 2875. Addition of Woonsocket local protection project.
Sec. 2876. Repeal of moratorium on improvements at Fort Buchanan, 
              Puerto Rico.
Sec. 2877. Establishment of national military working dog teams 
              monument on suitable military installation.
Sec. 2878. Report required prior to removal of missiles from 564th 
              Missile Squadron.
Sec. 2879. Report on condition of schools under jurisdiction of 
              Department of Defense Education Activity.
Sec. 2880. Report on facilities and operations of Darnall Army Medical 
              Center, Fort Hood Military Reservation, Texas.
Sec. 2881. Report on feasibility of establishing a regional disaster 
              response center at Kelly Air Field, San Antonio, Texas.
Sec. 2882. Naming of housing facility at Fort Carson, Colorado, in 
              honor of the Honorable Joel Hefley, a former member of 
              the United States House of Representatives.
Sec. 2883. Naming of Navy and Marine Corps Reserve Center at Rock 
              Island, Illinois, in honor of the Honorable Lane Evans, a 
              former member of the United States House of 
              Representatives.
Sec. 2884. Naming of research laboratory at Air Force Rome Research 
              Site, Rome, New York, in honor of the Honorable Sherwood 
              L. Boehlert, a former member of the United States House 
              of Representatives.
Sec. 2885. Naming of administration building at Joint Systems 
              Manufacturing Center, Lima, Ohio, in honor of the 
              Honorable Michael G. Oxley, a former member of the United 
              States House of Representatives.
Sec. 2886. Naming of Logistics Automation Training Facility, Army 
              Quartermaster Center and School, Fort Lee, Virginia, in 
              honor of General Richard H. Thompson.
Sec. 2887. Authority to relocate Joint Spectrum Center to Fort Meade, 
              Maryland.

      TITLE XXIX--WAR-RELATED AND EMERGENCY MILITARY CONSTRUCTION 
                             AUTHORIZATIONS

Sec. 2901. Authorized Army construction and land acquisition projects.
Sec. 2902. Authorized Navy construction and land acquisition projects.
Sec. 2903. Authorized Air Force construction and land acquisition 
              projects.
Sec. 2904. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2905. Authorized base closure and realignment activities funded 
              through Department of Defense Base Closure Account 2005 
              and related authorization of appropriations.

 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.

[[Page 32523]]

Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.
Sec. 3105. Energy security and assurance.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Reliable Replacement Warhead program.
Sec. 3112. Nuclear test readiness.
Sec. 3113. Modification of reporting requirement.
Sec. 3114. Limitation on availability of funds for Fissile Materials 
              Disposition program.
Sec. 3115. Modification of limitations on availability of funds for 
              Waste Treatment and Immobilization Plant.
Sec. 3116. Modification of sunset date of the Office of the Ombudsman 
              of the Energy Employees Occupational Illness Compensation 
              Program.
Sec. 3117. Technical amendments.

                       Subtitle C--Other Matters

Sec. 3121. Study on using existing pits for the Reliable Replacement 
              Warhead program.
Sec. 3122. Report on retirement and dismantlement of nuclear warheads.
Sec. 3123. Plan for addressing security risks posed to nuclear weapons 
              complex.
Sec. 3124. Department of Energy protective forces.
Sec. 3125. Evaluation of National Nuclear Security Administration 
              strategic plan for advanced computing.
Sec. 3126. Sense of Congress on the nuclear nonproliferation policy of 
              the United States and the Reliable Replacement Warhead 
              program.
Sec. 3127. Department of Energy report on plan to strengthen and expand 
              International Radiological Threat Reduction program.
Sec. 3128. Department of Energy report on plan to strengthen and expand 
              Materials Protection, Control, and Accounting program.
Sec. 3129. Agreements and reports on nuclear forensics capabilities.
Sec. 3130. Report on status of environmental management initiatives to 
              accelerate the reduction of environmental risks and 
              challenges posed by the legacy of the Cold War.

                Subtitle D--Nuclear Terrorism Prevention

Sec. 3131. Definitions.
Sec. 3132. Sense of Congress on the prevention of nuclear terrorism.
Sec. 3133. Minimum security standard for nuclear weapons and formula 
              quantities of strategic special nuclear material.
Sec. 3134. Annual report.

   TITLE XXXII--WAR-RELATED NATIONAL NUCLEAR SECURITY ADMINISTRATION 
                             AUTHORIZATIONS

Sec. 3201. Additional war-related authorization of appropriations for 
              National Nuclear Security Administration.

         TITLE XXXIII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3301. Authorization.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Remedial action at Moab uranium milling site.

                  TITLE XXXV--MARITIME ADMINISTRATION

          Subtitle A--Maritime Administration Reauthorization

Sec. 3501. Authorization of appropriations for fiscal year 2008.
Sec. 3502. Temporary authority to transfer obsolete combatant vessels 
              to Navy for disposal.
Sec. 3503. Vessel disposal program.

                          Subtitle B--Programs

Sec. 3511. Commercial vessel chartering authority.
Sec. 3512. Maritime Administration vessel chartering authority.
Sec. 3513. Chartering to State and local governmental 
              instrumentalities.
Sec. 3514. Disposal of obsolete Government vessels.
Sec. 3515. Vessel transfer authority.
Sec. 3516. Sea trials for Ready Reserve Force.
Sec. 3517. Review of applications for loans and guarantees.

                   Subtitle C--Technical Corrections

Sec. 3521. Personal injury to or death of seamen.
Sec. 3522. Amendments to Chapter 537 based on Public Law 109-163.
Sec. 3523. Additional amendments based on Public Law 109-163.
Sec. 3524. Amendments based on Public Law 109-171.
Sec. 3525. Amendments based on Public Law 109-241.
Sec. 3526. Amendments based on Public Law 109-364.
Sec. 3527. Miscellaneous amendments.
Sec. 3528. Application of sunset provision to codified provision.
Sec. 3529. Additional technical corrections.

     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

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. National Guard and Reserve equipment.

                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for M1A2 Abrams System 
              Enhancement Package upgrades.
Sec. 112. Multiyear procurement authority for M2A3/M3A3 Bradley 
              fighting vehicle upgrades.
Sec. 113. Multiyear procurement authority for conversion of CH-47D 
              helicopters to CH-47F configuration.
Sec. 114. Multiyear procurement authority for CH-47F helicopters.
Sec. 115. Limitation on use of funds for Increment 1 of the Warfighter 
              Information Network-Tactical program pending 
              certification to Congress.
Sec. 116. Prohibition on closure of Army Tactical Missile System 
              production line pending report.
Sec. 117. Stryker Mobile Gun System.

                       Subtitle C--Navy Programs

Sec. 121. Multiyear procurement authority for Virginia-class submarine 
              program.
Sec. 122. Report on shipbuilding investment strategy.
Sec. 123. Sense of Congress on the preservation of a skilled United 
              States shipyard workforce.
Sec. 124. Assessments required prior to start of construction on first 
              ship of a shipbuilding program.
Sec. 125. Littoral Combat Ship (LCS) program.

                     Subtitle D--Air Force Programs

Sec. 131. Limitation on Joint Cargo Aircraft.
Sec. 132. Clarification of limitation on retirement of U-2 aircraft.
Sec. 133. Repeal of requirement to maintain retired C-130E tactical 
              aircraft.
Sec. 134. Limitation on retirement of C-130E/H tactical airlift 
              aircraft.
Sec. 135. Limitation on retirement of KC-135E aerial refueling 
              aircraft.
Sec. 136. Transfer to Government of Iraq of three C-130E tactical 
              airlift aircraft.
Sec. 137. Modification of limitations on retirement of B-52 bomber 
              aircraft.
              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2008 for procurement for the Army as follows:
       (1) For aircraft, $4,168,798,000.
       (2) For missiles, $1,911,979,000.
       (3) For weapons and tracked combat vehicles, 
     $3,007,489,000.
       (4) For ammunition, $2,214,576,000.
       (5) For other procurement, $12,451,312,000.
       (6) For the Joint Improvised Explosive Device Defeat Fund, 
     $228,000,000.

     SEC. 102. NAVY AND MARINE CORPS.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 2008 for procurement for the Navy as follows:
       (1) For aircraft, $12,432,644,000.
       (2) For weapons, including missiles and torpedoes, 
     $3,068,187,000.
       (3) For shipbuilding and conversion, $13,596,120,000.
       (4) For other procurement, $5,209,330,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 2008 for procurement for the 
     Marine Corps in the amount of $2,299,419,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for fiscal year 2008 for 
     procurement of ammunition for the Navy and the Marine Corps 
     in the amount of $1,058,832,000.

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2008 for procurement for the Air Force as follows:
       (1) For aircraft, $12,117,800,000.
       (2) For ammunition, $854,167,000.
       (3) For missiles, $4,984,102,000.
       (4) For other procurement, $15,405,832,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2008 for Defense-wide procurement in the amount of 
     $3,280,435,000.

     SEC. 105. NATIONAL GUARD AND RESERVE EQUIPMENT.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2008 for the procurement of aircraft, missiles, wheeled 
     and tracked combat vehicles, tactical wheeled vehicles, 
     ammunition, other weapons, and other procurement for the 
     reserve components of the Armed Forces in the amount of 
     $980,000,000.
                       Subtitle B--Army Programs

     SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR M1A2 ABRAMS 
                   SYSTEM ENHANCEMENT PACKAGE UPGRADES.

       The Secretary of the Army, in accordance with section 2306b 
     of title 10, United States Code, may enter into a multiyear 
     contract, beginning with the fiscal year 2008 program year, 
     for procurement of M1A2 Abrams System Enhancement Package 
     upgrades.

     SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR M2A3/M3A3 
                   BRADLEY FIGHTING VEHICLE UPGRADES.

       The Secretary of the Army, in accordance with section 2306b 
     of title 10, United States

[[Page 32524]]

     Code, may enter into a multiyear contract, beginning with the 
     fiscal year 2008 program year, for procurement of M2A3/M3A3 
     Bradley fighting vehicle upgrades.

     SEC. 113. MULTIYEAR PROCUREMENT AUTHORITY FOR CONVERSION OF 
                   CH-47D HELICOPTERS TO CH-47F CONFIGURATION.

       The Secretary of the Army may, in accordance with section 
     2306b of title 10, United States Code, enter into a multiyear 
     contract, beginning with the fiscal year 2008 program year, 
     for conversion of CH-47D helicopters to the CH-47F 
     configuration.

     SEC. 114. MULTIYEAR PROCUREMENT AUTHORITY FOR CH-47F 
                   HELICOPTERS.

       The Secretary of the Army may, in accordance with section 
     2306b of title 10, United States Code, enter into a multiyear 
     contract, beginning with the fiscal year 2008 program year, 
     for procurement of CH-47F helicopters.

     SEC. 115. LIMITATION ON USE OF FUNDS FOR INCREMENT 1 OF THE 
                   WARFIGHTER INFORMATION NETWORK-TACTICAL PROGRAM 
                   PENDING CERTIFICATION TO CONGRESS.

       (a) Funding Restricted.--Of the amounts appropriated 
     pursuant to an authorization of appropriations for fiscal 
     year 2008 or otherwise made available for Other Procurement, 
     Army, that are available for Increment 1 of the Warfighter 
     Information Network-Tactical program, not more than 50 
     percent may be obligated or expended until the Director of 
     Operational Test and Evaluation submits to the congressional 
     defense committees a certification, in writing, that the 
     Director of Operational Test and Evaluation has approved a 
     Test and Evaluation Master Plan and Initial Operational Test 
     Plan for Increment 1 of the Warfighter Information Network-
     Tactical program.
       (b) Increment 1 Defined.--For the purposes of this section, 
     Increment 1 of the Warfighter Information Network-Tactical 
     program includes all program elements described as 
     constituting ``Increment 1'' in the memorandum titled 
     ``Warfighter Information Network-Tactical (WIN-T) Program 
     Acquisition Decision Memorandum'', dated June 5, 2007, and 
     signed by the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics.

     SEC. 116. PROHIBITION ON CLOSURE OF ARMY TACTICAL MISSILE 
                   SYSTEM PRODUCTION LINE PENDING REPORT.

       (a) Prohibition.--Amounts appropriated pursuant to the 
     authorization of appropriations in section 101(2) for 
     missiles, Army, and in section 1502(4) for missile 
     procurement, Army, and any other appropriated funds available 
     to the Secretary of the Army may not be used to close the 
     production line for the Army Tactical Missile System program 
     until after the date on which the Secretary of the Army 
     submits to the congressional defense committees a report that 
     contains--
       (1) the certification of the Secretary that the long range 
     surface-to-surface strike and counter battery mission of the 
     Army can be adequately performed by other Army weapons 
     systems or by other elements of the Armed Forces; and
       (2) a plan to mitigate any shortfalls in the industrial 
     base that would be created by the closure of the production 
     line.
       (b) Submission of Report.--The report referred to in 
     subsection (a) is required not later than April 1, 2008.

     SEC. 117. STRYKER MOBILE GUN SYSTEM.

       (a) Limitation on Availability of Funds.--None of the 
     amounts authorized to be appropriated by sections 101(3) and 
     1501(3) for procurement of weapons and tracked combat 
     vehicles for the Army may be obligated or expended for 
     purposes of the procurement of the Stryker Mobile Gun System 
     until 30 days after the date on which the Secretary of the 
     Army certifies to Congress that the Stryker Mobile Gun System 
     is operationally effective, suitable, and survivable for its 
     anticipated deployment missions.
       (b) Waiver.--The Secretary of Defense may waive the 
     limitation in subsection (a) if the Secretary--
       (1) determines that further procurement of the Stryker 
     Mobile Gun System utilizing amounts referred to in subsection 
     (a) is in the national security interest of the United States 
     notwithstanding the inability of the Secretary of the Army to 
     make the certification required by that subsection; and
       (2) submits to the Congress, in writing, a notification of 
     the waiver together with a discussion of--
       (A) the reasons for the determination described in 
     paragraph (1); and
       (B) the actions that will be taken to mitigate any 
     deficiencies that cause the Stryker Mobile Gun System not to 
     be operationally effective, suitable, or survivable, as that 
     case may be, as described in subsection (a).
                       Subtitle C--Navy Programs

     SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR VIRGINIA-CLASS 
                   SUBMARINE PROGRAM.

       (a) Authority.--The Secretary of the Navy may, in 
     accordance with section 2306b of title 10, United States 
     Code, enter into multiyear contracts, beginning with the 
     fiscal year 2009 program year, for the procurement of 
     Virginia-class submarines and Government-furnished equipment 
     associated with the Virginia-class submarine program.
       (b) Limitation.--The Secretary may not enter into a 
     contract authorized by subsection (a) until--
       (1) the Secretary submits to the congressional defense 
     committees a certification that the Secretary has made, with 
     respect to that contract, each of the findings required by 
     subsection (a) of section 2306b of title 10, United States 
     Code; and
       (2) a period of 30 days has elapsed after the date of the 
     transmission of such certification.

     SEC. 122. REPORT ON SHIPBUILDING INVESTMENT STRATEGY.

       (a) Study Required.--The Secretary of the Navy shall 
     provide for a study to determine the effectiveness of current 
     financing mechanisms for providing incentives for contractors 
     to make shipbuilding capital expenditures, and to assess 
     potential capital expenditure incentives that would lead to 
     ship construction or life-cycle cost savings to the Federal 
     Government. The study shall examine--
       (1) potential improvements in design tools and techniques, 
     material management, technology insertion, systems 
     integration and testing, and other key processes and 
     functions that would lead to reduced construction costs;
       (2) construction process improvements that would reduce 
     procurement and life-cycle costs of the vessels under 
     construction at the contractor's facilities; and
       (3) incentives for investment in shipyard infrastructure 
     that support construction process improvements.
       (b) Report.--Not later than October 1, 2008, the Secretary 
     of the Navy shall submit to the congressional defense 
     committees a report providing the results of the study under 
     subsection (a). The report shall include each of the 
     following:
       (1) An assessment of the shipbuilding industrial base, as 
     measured by a ten-year history for major shipbuilders with 
     respect to--
       (A) estimated value of shipbuilding facilities;
       (B) critical shipbuilding capabilities;
       (C) capital expenditures;
       (D) major investments in process improvements; and
       (E) costs for related Navy shipbuilding projects.
       (2) A description of mechanisms available to the government 
     and industry to finance facilities and process improvements, 
     including--
       (A) contract incentive and award fees;
       (B) facilities capital cost of money;
       (C) facilities depreciation;
       (D) progress payment provisions;
       (E) other contract terms and conditions;
       (F) State and Federal tax provisions and tax incentives;
       (G) the National Shipbuilding Research Program; and
       (H) any other mechanisms available.
       (3) A summary of potential shipbuilding investments that 
     offer greatest reduction to shipbuilding costs, including, 
     for each such investment--
       (A) a project description;
       (B) an estimate of required investment;
       (C) the estimated return on investment; and
       (D) alternatives for financing the investment.
       (4) The Navy's strategy for providing incentives for 
     contractors' capital expenditures that would lead to ship 
     construction or life-cycle savings to the Federal Government, 
     including identification of any specific changes in 
     legislative authority that would be required for the 
     Secretary to execute this strategy.
       (c) Utilization of Other Studies and Outside Experts.--The 
     study shall build upon the results of the 2005 and 2006 
     Global Shipbuilding Industrial Base Benchmarking studies. 
     Financial analysis associated with the report shall be 
     conducted in consultation with financial experts independent 
     of the Department of Defense.

     SEC. 123. SENSE OF CONGRESS ON THE PRESERVATION OF A SKILLED 
                   UNITED STATES SHIPYARD WORKFORCE.

       (a) Sense of Congress.--It is the sense of Congress that 
     the preservation of a robust domestic skilled workforce is 
     required for the national shipbuilding infrastructure and 
     particularly essential to the construction of ships for the 
     United States Navy.
       (b) Study Required.--
       (1) In general.--The Secretary of the Navy shall determine, 
     on a one-time, non-recurring basis, and in consultation with 
     the Department of Labor, the average number of H2B visa 
     workers employed by the major shipbuilders in the 
     construction of United States Navy ships during the calendar 
     year ending December 31, 2007. The study shall also identify 
     the number of workers petitioned by the major shipbuilders 
     for use in calendar year 2008, as of the first quarter of 
     calendar year 2008.
       (2) Report.--Not later than April 1, 2008, the Secretary of 
     the Navy shall submit to the congressional defense committees 
     a report containing the results of the study required by 
     subsection (b).
       (3) Definitions.--In this paragraph--
       (A) the term ``major shipbuilder'' means a prime contractor 
     or a first-tier subcontractor responsible for delivery of 
     combatant and support vessels required for the naval vessel 
     force, as reported within the annual naval vessel 
     construction plan required by section 231 of title 10, United 
     States Code; and
       (B) the term ``H2B visa'' means a non-immigrant visa 
     program that permits employers to hire foreign workers to 
     come temporarily to the United States and perform temporary 
     non-agricultural services or labor on a one-time, seasonal, 
     peakload, or intermittent basis.

     SEC. 124. ASSESSMENTS REQUIRED PRIOR TO START OF CONSTRUCTION 
                   ON FIRST SHIP OF A SHIPBUILDING PROGRAM.

       (a) In General.--Concurrent with approving the start of 
     construction of the first ship for any major shipbuilding 
     program, the Secretary of the Navy shall--

[[Page 32525]]

       (1) submit a report to the congressional defense committees 
     on the results of any production readiness review; and
       (2) certify to the congressional defense committees that 
     the findings of any such review support commencement of 
     construction.
       (b) Report.--The report required by subsection (a)(1) shall 
     include, at a minimum, an assessment of each of the 
     following:
       (1) The maturity of the ship's design, as measured by 
     stability of the ship contract specifications and the degree 
     of completion of detail design and production design 
     drawings.
       (2) The maturity of developmental command and control 
     systems, weapon and sensor systems, and hull, mechanical and 
     electrical systems.
       (3) The readiness of the shipyard facilities and workforce 
     to begin construction.
       (4) The Navy's estimated cost at completion and the 
     adequacy of the budget to support the estimate.
       (5) The Navy's estimated delivery date and description of 
     any variance to the contract delivery date.
       (6) The extent to which adequate processes and metrics are 
     in place to measure and manage program risks.
       (c) Applicability.--This section applies to each major 
     shipbuilding program beginning after the date of the 
     enactment of this Act.
       (d) Definitions.--For the purposes of subsection (a):
       (1) Start of construction.--The term ``start of 
     construction'' means the beginning of fabrication of the hull 
     and superstructure of the ship.
       (2) First ship.--The term ``first ship'' applies to a ship 
     if--
       (A) the ship is the first ship to be constructed under that 
     shipbuilding program; or
       (B) the shipyard at which the ship is to be constructed has 
     not previously started construction on a ship under that 
     shipbuilding program.
       (3) Major shipbuilding program.--The term ``major 
     shipbuilding program'' means a program for the construction 
     of combatant and support vessels required for the naval 
     vessel force, as reported within the annual naval vessel 
     construction plan required by section 231 of title 10, United 
     States Code.
       (4) Production readiness review.--The term ``production 
     readiness review'' means a formal examination of a program 
     prior to the start of construction to determine if the design 
     is ready for production, production engineering problems have 
     been resolved, and the producer has accomplished adequate 
     planning for the production phase.

     SEC. 125. LITTORAL COMBAT SHIP (LCS) PROGRAM.

       Section 124 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3157) is 
     amended by striking subsections (a), (b), (c), and (d) and 
     inserting the following:
       ``(a) Limitation of Costs.--
       ``(1) In general.--The total amount obligated or expended 
     for the procurement costs of post-2007 LCS vessels shall not 
     exceed $460,000,000 per vessel.
       ``(2) Procurement costs.--For purposes of this section, 
     procurement costs shall include all costs for plans, basic 
     construction, change orders, electronics, ordnance, 
     contractor support, and other costs associated with 
     completion of production drawings, ship construction, test, 
     and delivery, including work performed post-delivery that is 
     required to meet original contract requirements.
       ``(3) Post-2007 lcs vessels.--For purposes of this section, 
     the term `post-2007 LCS vessel' means a vessel in the 
     Littoral Combat Ship (LCS) class of vessels, the procurement 
     of which is funded from amounts appropriated pursuant to an 
     authorization of appropriations or otherwise made available 
     for fiscal year 2008 or any fiscal year thereafter.
       ``(b) Contract Type.--The Secretary of the Navy shall 
     employ a fixed-price type contract for construction of post-
     2007 LCS vessels.
       ``(c) Limitation of Government Liability.--The Secretary of 
     the Navy shall not enter into a contract, or modify a 
     contract, for construction or final delivery of post-2007 LCS 
     vessels if the limitation of the Government's cost liability, 
     when added to the sum of other budgeted procurement costs, 
     would exceed $460,000,000 per vessel.
       ``(d) Adjustment of Limitation Amount.--The Secretary of 
     the Navy may adjust the amount set forth in subsections 
     (a)(1) and (c) for vessels referred to in such subsections by 
     the following:
       ``(1) The amounts of increases or decreases in costs 
     attributable to compliance with changes in Federal, State, or 
     local laws enacted after September 30, 2007.
       ``(2) The amounts of outfitting costs and costs required to 
     complete post-delivery test and trials.''.
                     Subtitle D--Air Force Programs

     SEC. 131. LIMITATION ON JOINT CARGO AIRCRAFT.

       No funds appropriated pursuant to an authorization of 
     appropriations or otherwise made available for procurement, 
     or for research, development, test, and evaluation, may be 
     obligated or expended for the Joint Cargo Aircraft until 30 
     days after the Secretary of Defense submits to the 
     congressional defense committees each of the following:
       (1) The Air Force Air Mobility Command's Airlift Mobility 
     Roadmap.
       (2) The Department of Defense Intra-Theater Airlift 
     Capabilities Study.
       (3) The Department of Defense Joint Intra-Theater 
     Distribution Assessment.
       (4) The Joint Cargo Aircraft Functional Area Series 
     Analysis.
       (5) The Joint Cargo Aircraft Analysis of Alternatives.
       (6) The Joint Intra-theater Airlift Fleet Mix Analysis.
       (7) The Secretary's certification that--
       (A) there is, within the Department of the Army, Department 
     of the Air Force, Army National Guard, or Air National Guard, 
     a capability gap or shortfall with respect to intra-theater 
     airlift; and
       (B) validated requirements exist to fill that gap or 
     shortfall through procurement of the Joint Cargo Aircraft.

     SEC. 132. CLARIFICATION OF LIMITATION ON RETIREMENT OF U-2 
                   AIRCRAFT.

       Section 133(b) of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364; 
     120 Stat. 2112) is amended--
       (1) in paragraph (1)--
       (A) by striking ``After fiscal year 2007'' and inserting 
     ``For each fiscal year after fiscal year 2007''; and
       (B) by inserting after ``Secretary of Defense'' the 
     following: ``, in that fiscal year,''; and
       (2) in paragraph (2)--
       (A) by inserting after ``Department of Defense'' the 
     following: ``in a fiscal year''; and
       (B) by inserting after ``Congress'' the following: ``in 
     that fiscal year''.

     SEC. 133. REPEAL OF REQUIREMENT TO MAINTAIN RETIRED C-130E 
                   TACTICAL AIRCRAFT.

       (a) In General.--Effective as of the date specified in 
     subsection (b), section 137(b) of the John Warner National 
     Defense Authorization Act for Fiscal Year 2007 (Public Law 
     109-364; 120 Stat. 2114) is repealed.
       (b) Specified Date.--The date specified in this subsection 
     is the date that is 30 days after the date on which the 
     Secretary of the Air Force submits to the congressional 
     defense committees the Fleet Mix Analysis Study.

     SEC. 134. LIMITATION ON RETIREMENT OF C-130E/H TACTICAL 
                   AIRLIFT AIRCRAFT.

       (a) General Prohibition.--The Secretary of the Air Force 
     may not retire C-130E/H tactical airlift aircraft during 
     fiscal year 2008, except as provided in subsection (b).
       (b) Contingent Authority to Retire Certain C-130E 
     Aircraft.--Effective as of the date specified in subsection 
     (d), subsection (a) shall not apply to C-130E tactical 
     airlift aircraft, and the number of such aircraft retired by 
     the Secretary of the Air Force during fiscal year 2008 may 
     not exceed 24.
       (c) Treatment of Retired Aircraft.--The Secretary of the 
     Air Force shall maintain each C-130E tactical airlift 
     aircraft that is retired during fiscal year 2008 in a 
     condition that would allow recall of that aircraft to future 
     service.
       (d) Specified Date.--The date specified in this subsection 
     is the date that is 30 days after the date on which the 
     Secretary of the Air Force submits to the congressional 
     defense committees the Fleet Mix Analysis Study.

     SEC. 135. LIMITATION ON RETIREMENT OF KC-135E AERIAL 
                   REFUELING AIRCRAFT.

       (a) Limitation on Retirement of More Than 48 Aircraft.--The 
     Secretary of the Air Force may not retire more than 48 KC-
     135E aerial refueling aircraft of the Air Force during fiscal 
     year 2008, except as provided in subsection (b).
       (b) Contingent Authority to Retire 37 Additional 
     Aircraft.--Effective as of the date specified in subsection 
     (c), the number of such aircraft retired by the Secretary of 
     the Air Force during fiscal year 2008 may not exceed 85.
       (c) Specified Date.--The date specified in this subsection 
     is the date that is 15 days after the date on which the 
     Secretary of the Air Force submits to the congressional 
     defense committees the Secretary's certification that--
       (1) the system design and development contract for the KC-X 
     program has been awarded; and
       (2) if a protest is submitted pursuant to subchapter 5 of 
     title 31, United States Code--
       (A) the protest has been resolved in favor of the Federal 
     agency; or
       (B) the Secretary has authorized performance of the 
     contract (notwithstanding the protest).

     SEC. 136. TRANSFER TO GOVERNMENT OF IRAQ OF THREE C-130E 
                   TACTICAL AIRLIFT AIRCRAFT.

       The Secretary of the Air Force may transfer not more than 
     three C-130E tactical airlift aircraft, allowed to be retired 
     under the John Warner National Defense Authorization Act for 
     Fiscal Year 2007 (Public Law 109-364), to the Government of 
     Iraq.

     SEC. 137. MODIFICATION OF LIMITATIONS ON RETIREMENT OF B-52 
                   BOMBER AIRCRAFT.

       (a) Maintenance of Primary, Backup, and Attrition Reserve 
     Inventory of Aircraft.--Subsection (a) of section 131 of the 
     John Warner National Defense Authorization Act for Fiscal 
     Year 2007 (Public Law 109-364; 120 Stat. 2111) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking ``and'' at the end;
       (B) in subparagraph (B), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(C) shall maintain in a common capability configuration a 
     primary aircraft inventory of not less than 63 such aircraft, 
     a backup aircraft inventory of not less than 11 such 
     aircraft, and

[[Page 32526]]

     an attrition reserve aircraft inventory of not less than 2 
     such aircraft; and
       ``(D) shall not keep any such aircraft referred to in 
     subparagraph (C) in a status considered excess to the 
     requirements of the possessing command and awaiting 
     disposition instructions.''; and
       (2) by adding at the end the following:
       ``(3) Definitions.--For purposes of paragraph (1):
       ``(A) The term `primary aircraft inventory' means aircraft 
     assigned to meet the primary aircraft authorization to--
       ``(i) a unit for the performance of its wartime mission;
       ``(ii) a training unit primarily for technical and 
     specialized training for crew personnel or leading to aircrew 
     qualification;
       ``(iii) a test unit for testing of the aircraft or its 
     components for purposes of research, development, test and 
     evaluation, operational test and evaluation, or to support 
     testing programs; or
       ``(iv) meet requirements for special missions not elsewhere 
     classified.
       ``(B) The term `backup aircraft inventory' means aircraft 
     above the primary aircraft inventory to permit scheduled and 
     unscheduled depot level maintenance, modifications, 
     inspections, and repairs, and certain other mitigating 
     circumstances without reduction of aircraft available for the 
     assigned mission.
       ``(C) The term `attrition reserve aircraft inventory' means 
     aircraft required to replace anticipated losses of primary 
     aircraft inventory due to peacetime accidents or wartime 
     attrition.
       ``(4) Treatment of retired aircraft.--Of the aircraft 
     retired in accordance with paragraph (1)(A), the Secretary of 
     the Air Force may use not more than 2 such aircraft for 
     maintenance ground training.''.
       (b) Notice of Retirement.--Subsection (b)(1) of such 
     section is amended by striking ``45 days'' and inserting ``60 
     days''.
         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. Operational test and evaluation of Future Combat Systems 
              network.
Sec. 212. Limitation on use of funds for systems development and 
              demonstration of Joint Light Tactical Vehicle program.
Sec. 213. Requirement to obligate and expend funds for development and 
              procurement of a competitive propulsion system for the 
              Joint Strike Fighter.
Sec. 214. Limitation on use of funds for defense-wide manufacturing 
              science and technology program.
Sec. 215. Advanced Sensor Applications Program.
Sec. 216. Active protection systems.

                 Subtitle C--Ballistic Missile Defense

Sec. 221. Participation of Director, Operational Test and Evaluation, 
              in missile defense test and evaluation activities.
Sec. 222. Study on future roles and missions of the Missile Defense 
              Agency.
Sec. 223. Budget and acquisition requirements for Missile Defense 
              Agency activities.
Sec. 224. Limitation on use of funds for replacing warhead on SM-3 
              Block IIA missile.
Sec. 225. Extension of Comptroller General assessments of ballistic 
              missile defense programs.
Sec. 226. Limitation on availability of funds for procurement, 
              construction, and deployment of missile defenses in 
              Europe.
Sec. 227. Sense of Congress on missile defense cooperation with Israel.
Sec. 228. Limitation on availability of funds for deployment of missile 
              defense interceptors in Alaska.
Sec. 229. Policy of the United States on protection of the United 
              States and its allies against Iranian ballistic missiles.

                       Subtitle D--Other Matters

Sec. 231. Coordination of human systems integration activities related 
              to acquisition programs.
Sec. 232. Expansion of authority for provision of laboratory 
              facilities, services, and equipment.
Sec. 233. Modification of cost sharing requirement for Technology 
              Transition Initiative.
Sec. 234. Report on implementation of Manufacturing Technology Program.
Sec. 235. Assessment of sufficiency of test and evaluation personnel.
Sec. 236. Repeal of requirement for separate reports on technology area 
              review and assessment summaries.
Sec. 237. Modification of notice and wait requirement for obligation of 
              funds for foreign comparative test program.
Sec. 238. Strategic Plan for the Manufacturing Technology Program.
Sec. 239. Modification of authorities on coordination of Defense 
              Experimental Program to Stimulate Competitive Research 
              with similar Federal programs.
Sec. 240. Enhancement of defense nanotechnology research and 
              development program.
Sec. 241. Federally funded research and development center assessment 
              of the Defense Experimental Program to Stimulate 
              Competitive Research.
Sec. 242. Cost-benefit analysis of proposed funding reduction for High 
              Energy Laser Systems Test Facility.
Sec. 243. Prompt global strike.
              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2008 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $10,840,392,000.
       (2) For the Navy, $16,980,732,000.
       (3) For the Air Force, $25,692,521,000.
       (4) For Defense-wide activities, $20,213,900,000, of which 
     $180,264,000 is authorized for the Director of Operational 
     Test and Evaluation.

     SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

       (a) Fiscal Year 2008.--Of the amounts authorized to be 
     appropriated by section 201, $10,913,944,000 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. OPERATIONAL TEST AND EVALUATION OF FUTURE COMBAT 
                   SYSTEMS NETWORK.

       (a) Operational Test and Evaluation Required.--The 
     Secretary of the Army, in cooperation with the Director, 
     Operational Test and Evaluation, shall complete an 
     operational test and evaluation (as defined in section 
     139(a)(2)(A) of title 10, United States Code), of the FCS 
     network in a realistic environment simulating operational 
     conditions. The operational test and evaluation shall--
       (1) be conducted in accordance with a Future Combat Systems 
     Test and Evaluation Master Plan approved by the Director, 
     Operational Test and Evaluation;
       (2) be conducted using prototype equipment, sensors, and 
     software for the FCS network;
       (3) be conducted in a manner that simulates a full Future 
     Combat Systems brigade;
       (4) be conducted, to the maximum extent possible, using 
     actual communications equipment instead of computer 
     simulations;
       (5) be conducted in a realistic operational electronic 
     warfare environment, including enemy electronic warfare and 
     network attacks; and
       (6) include, to the maximum extent possible, all sensor 
     information feeds the FCS network is designed to incorporate.
       (b) FCS Network Defined.--In this section, the term ``FCS 
     network'' includes all sensors, information systems, 
     computers, and communications systems necessary to support 
     Future Combat Systems brigade operations.
       (c) Report.--Not later than 120 days after completing the 
     operational test and evaluation required by subsection (a), 
     the Director, Operational Test and Evaluation shall submit to 
     the congressional defense committees a report on the outcome 
     of the operational test and evaluation. The report shall 
     include, at a minimum--
       (1) an evaluation of the overall operational effectiveness 
     of the FCS network, including--
       (A) an evaluation of the FCS network's capability to 
     transmit the volume and classes of data required by Future 
     Combat Systems approved requirements; and
       (B) an evaluation of the FCS network's performance in a 
     degraded condition due to enemy network attack, sophisticated 
     enemy electronic warfare, adverse weather conditions, and 
     terrain variability;
       (2) an evaluation of the FCS network's ability to improve 
     friendly force knowledge of the location and capability of 
     enemy forces and combat systems; and
       (3) an evaluation of the overall operational suitability of 
     the FCS network.
       (d) Limitation Pending Submission of Report.--
       (1) In general.--No funds, with the exception of funds for 
     advanced procurement, appropriated pursuant to an 
     authorization of appropriations or otherwise made available 
     to the Department of the Army for any fiscal year may be 
     obligated for low-rate initial production or full-rate 
     production of Future Combat Systems manned ground vehicles 
     until 60 days after the date on which the report is submitted 
     under subsection (c).
       (2) Waiver authority.--The Secretary of Defense may waive 
     the limitation in paragraph (1) if the Secretary determines 
     that such a waiver is critical for national security. Such a 
     waiver shall not become effective until 45 days after the 
     date on which the Secretary submits to the congressional 
     defense committees a written notice of the waiver.
       (3) Inapplicability to the non line of sight cannon 
     vehicle.--The limitation in paragraph (1) does not apply to 
     the Non Line of Sight Cannon vehicle.

[[Page 32527]]



     SEC. 212. LIMITATION ON USE OF FUNDS FOR SYSTEMS DEVELOPMENT 
                   AND DEMONSTRATION OF JOINT LIGHT TACTICAL 
                   VEHICLE PROGRAM.

       Of the amounts appropriated pursuant to an authorization of 
     appropriations or otherwise made available for the Joint 
     Light Tactical Vehicle program for the acquisition program 
     phase of systems development and demonstration for fiscal 
     year 2008 or any fiscal year thereafter, no more than 50 
     percent of those amounts may be obligated or expended until 
     after--
       (1) the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics, or the appropriate milestone 
     decision authority, makes the certification required by 
     section 2366a of title 10, United States Code, with respect 
     to the Joint Light Tactical Vehicle program; and
       (2) the certification has been received by the 
     congressional defense committees.

     SEC. 213. REQUIREMENT TO OBLIGATE AND EXPEND FUNDS FOR 
                   DEVELOPMENT AND PROCUREMENT OF A COMPETITIVE 
                   PROPULSION SYSTEM FOR THE JOINT STRIKE FIGHTER.

       Of the funds appropriated pursuant to an authorization of 
     appropriations or otherwise made available for fiscal year 
     2008 or any year thereafter, for research, development, test, 
     and evaluation and procurement for the Joint Strike Fighter 
     program, the Secretary of Defense shall ensure the obligation 
     and expenditure in each such fiscal year of sufficient annual 
     amounts for the continued development and procurement of two 
     options for the propulsion system for the Joint Strike 
     Fighter in order to ensure the development and competitive 
     production for the propulsion system for the Joint Strike 
     Fighter.

     SEC. 214. LIMITATION ON USE OF FUNDS FOR 
                   DEFENSE-WIDE MANUFACTURING SCIENCE AND 
                   TECHNOLOGY PROGRAM.

       No funds available to the Office of the Secretary of 
     Defense for any fiscal year may be obligated or expended for 
     the defense-wide manufacturing science and technology program 
     unless the Director, Defense Research and Engineering, 
     ensures each of the following:
       (1) A component of the Department of Defense has requested 
     and evaluated--
       (A) competitive proposals, for each project under the 
     program that is not a project covered by subparagraph (B); 
     and
       (B) proposals from as many sources as is practicable under 
     the circumstances, for a project under the program if the 
     disclosure of the needs of the Department of Defense with 
     respect to that project would compromise the national 
     security.
       (2) Each project under the program is carried out--
       (A) in accordance with the statutory requirements of the 
     Manufacturing Technology Program established by section 2521 
     of title 10, United States Code; and
       (B) in compliance with all requirements of any directive 
     that applies to manufacturing technology.
       (3) An implementation plan has been developed.

     SEC. 215. ADVANCED SENSOR APPLICATIONS PROGRAM.

       (a) Transfer of Funds.--(1) Of the amount authorized to be 
     appropriated by section 201(3) for research, development, 
     test, and evaluation, Air Force activities, and made 
     available for the activities of the Intelligence Systems 
     Support Office, an aggregate of $13,000,000 shall be 
     transferred to the Advanced Sensor Applications Program not 
     later than 60 days after the date of the enactment of this 
     Act.
       (2) Of the amount authorized to be appropriated by section 
     301(2) for operation and maintenance, Navy activities, and 
     made available for the activities of the Office of Naval 
     Intelligence, an aggregate of $5,000,000 shall be transferred 
     to the Advanced Sensor Applications Program not later than 60 
     days after the date of the enactment of this Act.
       (b) Assignment of Program.--Management of the program shall 
     reside within the office of the Under Secretary of Defense 
     for Intelligence until certain conditions specified in the 
     classified annex to the statement of managers accompanying 
     this Act are met. The program shall be executed by the 
     Commander, Naval Air Systems Command in consultation with the 
     Program Executive Officer for Aviation for the Navy.

     SEC. 216. ACTIVE PROTECTION SYSTEMS.

       (a) Live-Fire Tests Required.--
       (1) In general.--The Secretary of Defense shall undertake 
     live-fire tests, of appropriate foreign and domestic active 
     protection systems with size, weight, and power 
     characteristics suitable for protecting wheeled tactical 
     vehicles, especially light wheeled tactical vehicles, in 
     order--
       (A) to determine the effectiveness of such systems for 
     protecting wheeled tactical vehicles; and
       (B) to develop information useful in the consideration of 
     the adoption of such systems in defense acquisition programs.
       (2) Reports.--Not later than March 1 of each of 2008 and 
     2009, the Secretary shall submit to the congressional defense 
     committees a report on the results of the tests undertaken 
     under paragraph (1) as of the date of such report.
       (3) Funding.--The live-fire tests required by paragraph (1) 
     shall be conducted using funds authorized and appropriated 
     for the Joint Improvised Explosive Device Defeat Fund.
       (b) Comprehensive Assessment Required.--
       (1) In general.--The Secretary shall undertake a 
     comprehensive assessment of active protection systems in 
     order to develop information useful in the development of 
     joint active protection systems and other defense programs.
       (2) Elements.--The assessment under paragraph (1) shall 
     include--
       (A) an identification of the potential merits and 
     operational costs of the use of active protection systems by 
     United States military forces;
       (B) a characterization of the threats that use of active 
     protection systems by potential adversaries would pose to 
     United States military forces and weapons;
       (C) an identification and assessment of countermeasures to 
     active protection systems;
       (D) an analysis of collateral damage potential of active 
     protection systems;
       (E) an identification and assessment of emerging direct-
     fire and top-attack threats to defense systems that could 
     potentially deploy active protection systems; and
       (F) an identification and assessment of critical technology 
     elements of active protection systems.
       (3) Report.--Not later than December 31, 2008, the 
     Secretary shall submit to the congressional defense 
     committees a report on the assessment under paragraph (1).
                 Subtitle C--Ballistic Missile Defense

     SEC. 221. PARTICIPATION OF DIRECTOR, OPERATIONAL TEST AND 
                   EVALUATION, IN MISSILE DEFENSE TEST AND 
                   EVALUATION ACTIVITIES.

       Section 139 of title 10, United States Code, is amended--
       (1) by redesignating subsections (f) through (j) as 
     subsections (g) through (k), respectively; and
       (2) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f)(1) The Director of the Missile Defense Agency shall 
     make available to the Director of Operational Test and 
     Evaluation the results of all tests and evaluations conducted 
     by the Missile Defense Agency and of all studies conducted by 
     the Missile Defense Agency in connection with tests and 
     evaluations in the Missile Defense Agency.
       ``(2) The Director of Operational Test and Evaluation may 
     require that such observers as the Director designates be 
     present during the preparation for and the conduct of any 
     test and evaluation conducted by the Missile Defense Agency.
       ``(3) The Director of Operational Test and Evaluation shall 
     have access to all records and data in the Department of 
     Defense (including the records and data of the Missile 
     Defense Agency) that the Director considers necessary to 
     review in order to carry out his duties under this 
     subsection.''.

     SEC. 222. STUDY ON FUTURE ROLES AND MISSIONS OF THE MISSILE 
                   DEFENSE AGENCY.

       (a) In General.--The Secretary of Defense shall enter into 
     an agreement with one of the Federally Funded Research and 
     Development Centers under which the Center shall carry out an 
     independent study to examine, and make recommendations with 
     respect to, the long-term structure, roles, and missions of 
     the Missile Defense Agency.
       (b) Matters Included.--
       (1) Review.--The study shall include a full review of the 
     structure, roles, and missions of the Missile Defense Agency.
       (2) Assessments.--The study shall include an examination 
     and assessment of the current and future--
       (A) structure, roles, and missions of the Missile Defense 
     Agency;
       (B) relationship of the Missile Defense Agency with--
       (i) the Office of the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics;
       (ii) the Office of the Under Secretary of Defense for 
     Policy;
       (iii) the Director of Operational Test and Evaluation;
       (iv) the Commander of the United States Strategic Command 
     and other combatant commanders;
       (v) the Joint Requirements Oversight Council; and
       (vi) the military departments;
       (C) operations and sustainment of missile defenses;
       (D) acquisition process for missile defense;
       (E) requirements process for missile defense; and
       (F) transition and transfer of missile defense capabilities 
     to the military departments.
       (3) Recommendations.--The study shall include 
     recommendations as to how the Missile Defense Agency can be 
     made more effective to support the needs of the warfighter, 
     especially with regard to near-term missile defense 
     capabilities. The study shall also examine the full range of 
     options for the future of the Missile Defense Agency and 
     shall include, but not be limited to, specific 
     recommendations as to whether--
       (A) the Missile Defense Agency should be maintained in its 
     current configuration;
       (B) the scope and nature of the Missile Defense Agency 
     should be changed from an organization focused on research 
     and development to an organization focused on combat support;
       (C) any functions and responsibilities should be added to 
     the Missile Defense Agency, in part or in whole, from other 
     entities such as the United States Strategic Command and the 
     military departments; and
       (D) any functions and responsibilities of the Missile 
     Defense Agency should be transferred, in part or in whole, to 
     other entities such as the United States Strategic Command 
     and the military departments.
       (c) Cooperation From Government.--In carrying out the 
     study, the Federally Funded

[[Page 32528]]

     Research and Development Center shall receive the full and 
     timely cooperation of the Secretary of Defense and any other 
     United States Government official in providing the Center 
     with analyses, briefings, and other information necessary for 
     the fulfillment of its responsibilities.
       (d) Report.--Not later than September 1, 2008, the 
     Federally Funded Research and Development Center 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 its findings, conclusions, and recommendations.
       (e) Funding.--Funds for the study shall be provided from 
     amounts appropriated for the Department of Defense.

     SEC. 223. BUDGET AND ACQUISITION REQUIREMENTS FOR MISSILE 
                   DEFENSE AGENCY ACTIVITIES.

       (a) Revised Budget Structure.--The budget justification 
     materials submitted to Congress in support of the Department 
     of Defense budget for any fiscal year after fiscal year 2009 
     (as submitted with the budget of the President under section 
     1105(a) of title 31, United States Code) shall set forth 
     separately amounts requested for the Missile Defense Agency 
     for each of the following:
       (1) Research, development, test, and evaluation.
       (2) Procurement.
       (3) Operation and maintenance.
       (4) Military construction.
       (b) Revised Budget Structure for Fiscal Year 2009.--The 
     budget justification materials submitted to Congress in 
     support of the Department of Defense budget for fiscal year 
     2009 (as submitted with the budget of the President under 
     section 1105(a) of title 31, United States Code) shall--
       (1) identify all known and estimated operation and support 
     costs; and
       (2) set forth separately amounts requested for the Missile 
     Defense Agency for each of the following:
       (A) Research, development, test, and evaluation.
       (B) Procurement or advance procurement of long lead items, 
     including for Terminal High Altitude Area Defense firing 
     units 3 and 4, and for Standard Missile-3 Block 1A 
     interceptors.
       (C) Military construction.
       (c) Availability of RDT&E Funds for Fiscal Year 2009.--Upon 
     approval by the Secretary of Defense, and consistent with the 
     plan submitted under subsection (f), funds appropriated 
     pursuant to an authorization of appropriations or otherwise 
     made available for fiscal year 2009 for research, 
     development, test, and evaluation for the Missile Defense 
     Agency--
       (1) may be used for the fielding of ballistic missile 
     defense capabilities approved previously by Congress; and
       (2) may not be used for--
       (A) military construction activities; or
       (B) procurement or advance procurement of long lead items, 
     including for Terminal High Altitude Area Defense firing 
     units 3 and 4, and for Standard Missile-3 Block 1A 
     interceptors.
       (d) Full Funding Requirement Not Applicable to Use of 
     Procurement Funds for Fiscal Years 2009 and 2010.--In any 
     case in which funds appropriated pursuant to an authorization 
     of appropriations or otherwise made available for procurement 
     for the Missile Defense Agency for fiscal years 2009 and 2010 
     are used for the fielding of ballistic missile defense 
     capabilities, the funds may be used for the fielding of those 
     capabilities on an ``incremental'' basis, notwithstanding any 
     law or policy of the Department of Defense that would 
     otherwise require a ``full funding'' basis.
       (e) Relationship to Other Law.--Nothing in this provision 
     shall be construed to alter or otherwise affect in any way 
     the applicability of the requirements and other provisions of 
     section 234(a) through (d) of the Ronald W. Reagan National 
     Defense Authorization Act for Fiscal Year 2005 (Public Law 
     108-375; 118 Stat. 1837; 10 U.S.C. 2431 note).
       (f) Plan Required.--Not later than March 1, 2008, the 
     Director of the Missile Defense Agency 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 
     transitioning the Missile Defense Agency from using 
     exclusively research, development, test, and evaluation funds 
     to using procurement, military construction, operations and 
     maintenance, and research, development, test, and evaluation 
     funds for the appropriate budget activities, and for 
     transitioning from incremental funding to full funding for 
     fiscal years after fiscal year 2010.
       (g) Objectives for Acquisition Activities.--
       (1) In general.--Commencing as soon as practicable, but not 
     later than the submittal to Congress of the budget for the 
     President for fiscal year 2009 under section 1105(a) of title 
     31, United States Code, the Missile Defense Agency shall take 
     appropriate actions to achieve the following objectives in 
     its acquisition activities:
       (A) Improved transparency.
       (B) Improved accountability.
       (C) Enhanced oversight.
       (2) Required actions.--In order to achieve the objectives 
     specified in paragraph (1), the Missile Defense Agency shall, 
     at a minimum, take actions as follows:
       (A) Establish acquisition cost, schedule, and performance 
     baselines for each ballistic missile defense system element 
     that--
       (i) has entered the equivalent of the systems development 
     and demonstration phase of acquisition; or
       (ii) is being produced and acquired for operational 
     fielding.
       (B) Provide unit cost reporting data for each ballistic 
     missile defense system element covered by subparagraph (A), 
     and secure independent estimation and verification of such 
     cost reporting data.
       (C) Include, in the budget justification materials 
     described in subsection (a), a description of actions being 
     taken in the fiscal year in which such materials are 
     submitted, and the actions to be taken in the fiscal year 
     covered by such materials, to achieve such objectives.
       (3) Specification of ballistic missile defense system 
     elements.--The ballistic missile defense system elements 
     that, as of October 2007, are ballistic missile defense 
     system elements covered by paragraph (2)(A) are the following 
     elements:
       (A) Ground-based Midcourse Defense.
       (B) Aegis Ballistic Missile Defense.
       (C) Terminal High Altitude Area Defense.
       (D) Forward-Based X-band radar-Transportable (AN/TPY-2).
       (E) Command, Control, Battle Management, and 
     Communications.
       (F) Sea-Based X-band radar.
       (G) Upgraded Early Warning radars.

     SEC. 224. LIMITATION ON USE OF FUNDS FOR REPLACING WARHEAD ON 
                   SM-3 BLOCK IIA MISSILE.

       None of the funds appropriated or otherwise made available 
     pursuant to an authorization of appropriations in this Act 
     may be obligated or expended to replace the unitary warhead 
     on the SM-3 Block IIA missile with the Multiple Kill Vehicle 
     until after the Secretary of Defense certifies to Congress 
     that--
       (1) the United States and Japan have reached an agreement 
     to replace the unitary warhead on the SM-3 Block IIA missile; 
     and
       (2) replacing the unitary warhead on the SM-3 Block IIA 
     missile with the Multiple Kill Vehicle will not delay the 
     expected deployment date of 2014-2015 for that missile.

     SEC. 225. 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 2008'' and 
     inserting ``through 2013''; and
       (2) in paragraph (2), by striking ``through 2009'' and 
     inserting ``through 2014''.

     SEC. 226. LIMITATION ON AVAILABILITY OF FUNDS FOR 
                   PROCUREMENT, CONSTRUCTION, AND DEPLOYMENT OF 
                   MISSILE DEFENSES IN EUROPE.

       (a) General Limitation.--No funds authorized to be 
     appropriated by this Act may be obligated or expended for 
     procurement, site activation, construction, preparation of 
     equipment for, or deployment of a long-range missile defense 
     system in Europe until the following conditions have been 
     met:
       (1) The governments of the countries in which major 
     components of such missile defense system (including 
     interceptors and associated radars) are proposed to be 
     deployed have each given final approval to any missile 
     defense agreements negotiated between such governments and 
     the United States Government concerning the proposed 
     deployment of such components in their countries.
       (2) 45 days have elapsed following the receipt by Congress 
     of the report required under subsection (c)(6).
       (b) Additional Limitation.--In addition to the limitation 
     in subsection (a), no funds authorized to be appropriated by 
     this Act may be obligated or expended for the acquisition or 
     deployment of operational missiles of a long-range missile 
     defense system in Europe until the Secretary of Defense, 
     after receiving the views of the Director of Operational Test 
     and Evaluation, submits to Congress a report certifying that 
     the proposed interceptor to be deployed as part of such 
     missile defense system has demonstrated, through successful, 
     operationally realistic flight testing, a high probability of 
     working in an operationally effective manner.
       (c) Report on Independent Assessment for Ballistic Missile 
     Defense in Europe.--
       (1) Independent assessment.--Not later than 30 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall select a federally funded research and 
     development center to conduct an independent assessment of 
     options for ballistic missile defense for forward deployed 
     forces of the United States and its allies in Europe and for 
     the United States homeland.
       (2) Analysis of administration proposal.--The study shall 
     provide a full analysis of the Administration's proposal to 
     protect forward-deployed forces of the United States and its 
     allies in Europe, forward-deployed radars in Europe, and the 
     United States by deploying, in Europe, interceptors and 
     radars of the Ground-Based Midcourse Defense (GMD) system. In 
     providing the analysis, the study shall examine each of the 
     following matters:
       (A) The threat to Europe and the United States of ballistic 
     missiles (including short-range, medium-range, intermediate-
     range, and long-range ballistic missiles) from Iran, 
     including the likelihood and timing of such threats.
       (B) The technical capabilities of the system, as so 
     deployed, to effectively protect forward-deployed forces of 
     the United States and its allies in Europe, forward-deployed 
     radars in Europe, and the United States against the threat 
     specified in subparagraph (A).
       (C) The degree of coverage of the European territory of 
     members of the North Atlantic Treaty Organization.

[[Page 32529]]

       (D) The political implications of such a deployment on the 
     United States, the North Atlantic Treaty Organization, and 
     other interested parties.
       (E) Integration and interoperability with North Atlantic 
     Treaty Organization missile defenses.
       (F) The operational issues associated with such a 
     deployment, including operational effectiveness.
       (G) The force structure implications of such a deployment, 
     including a comparative analysis of alternative deployment 
     options.
       (H) The budgetary implications of such a deployment, 
     including possible allied cost sharing, and the cost-
     effectiveness of such a deployment.
       (I) Command and control arrangements, including any command 
     and control roles for the United States European Command and 
     the North Atlantic Treaty Organization.
       (J) Potential opportunities for participation by the 
     Government of Russia.
       (3) Analysis of alternatives.--The study shall also provide 
     a full analysis of alternative systems that could be deployed 
     to fulfill, in whole or in part, the protective purposes of 
     the Administration's proposal. The alternative systems shall 
     include a range of feasible combinations of other missile 
     defense systems that are available or are expected to be 
     available as of 2015 and 2020. These should include, but not 
     be limited to, the following:
       (A) The Patriot PAC-3 system.
       (B) The Medium Extended Air Defense System.
       (C) The Aegis Ballistic Missile Defense system, with all 
     variants of the Standard Missile-3 interceptor.
       (D) The Terminal High Altitude Area Defense (THAAD) system.
       (E) Forward-Based X-band Transportable (FBX-T) radars.
       (F) The Kinetic Energy Interceptor (KEI).
       (G) Other non-United States, North Atlantic Treaty 
     Organization missile defense systems or components.
       (4) Matters examined.--In providing the analysis, the study 
     shall examine, for each alternative system included, each of 
     the matters specified in paragraph (2).
       (5) Cooperation of other agencies.--The Secretary of 
     Defense shall provide the federally funded research and 
     development center selected under paragraph (1) data, 
     analyses, briefings, and other information as the center 
     considers necessary to carry out the assessment described in 
     that paragraph. Furthermore, the Director of National 
     Intelligence and the heads of other departments and agencies 
     of the United States Government shall also provide the center 
     the appropriate data, analyses, briefings, and other 
     information necessary for the purpose of carrying out the 
     assessment described in that paragraph.
       (6) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the federally funded research and 
     development center shall submit to the congressional defense 
     committees and the Secretary of Defense a report on the 
     results of the study. The report shall be in unclassified 
     form, but may include a classified annex.
       (7) Funding.--Of the amounts appropriated or otherwise made 
     available pursuant to the authorization of appropriations in 
     section 201(4), $1,000,000 is available to carry out the 
     study required by this subsection.
       (d) Construction.--Nothing in this section shall be 
     construed to limit continuing obligation and expenditure of 
     funds for missile defense, including for research and 
     development and for other activities not otherwise limited by 
     subsection (a) or (b), including, but not limited to, site 
     surveys, studies, analysis, and planning and design for the 
     proposed missile defense deployment in Europe.

     SEC. 227. SENSE OF CONGRESS ON MISSILE DEFENSE COOPERATION 
                   WITH ISRAEL.

       (a) Sense of Congress.--It is the sense of Congress that 
     the United States should have an active program of ballistic 
     missile defense cooperation with Israel, and should take 
     steps to improve the coordination, interoperability, and 
     integration of United States and Israeli missile defense 
     capabilities, and to enhance the capability of both nations 
     to defend against ballistic missile threats present in the 
     Middle East region.
       (b) Report.--
       (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 congressional defense committees a report on 
     the status of missile defense cooperation between the United 
     States and Israel.
       (2) Content.--The report submitted under this subsection 
     shall include each of the following:
       (A) A description of the current program of ballistic 
     missile defense cooperation between the United States and 
     Israel, including its objectives and results to date.
       (B) A description of steps taken within the previous five 
     years to improve the interoperability and coordination of the 
     missile defense capabilities of the United States and Israel.
       (C) A description of steps planned to be taken by the 
     governments of the United States and Israel in the future to 
     improve the coordination, interoperability, and integration 
     of their missile defense capabilities.
       (D) A description of joint efforts of the United States and 
     Israel to develop ballistic missile defense technologies.
       (E) A description of joint missile defense exercises and 
     training that have been conducted by the United States and 
     Israel, and the lessons learned from those exercises.
       (F) A description of the joint missile defense testing 
     activities of the United States and Israel, past and planned, 
     and the benefits of such joint testing activities.
       (G) A description of how the United States and Israel share 
     threat assessments regarding the ballistic missile threat.
       (H) Any other matters that the Secretary considers 
     appropriate.

     SEC. 228. LIMITATION ON AVAILABILITY OF FUNDS FOR DEPLOYMENT 
                   OF MISSILE DEFENSE INTERCEPTORS IN ALASKA.

       None of the funds authorized to be appropriated by this Act 
     may be obligated or expended to deploy more than 40 Ground-
     Based Interceptors at Fort Greely, Alaska, until the 
     Secretary of Defense, after receiving the views of the 
     Director of Operational Test and Evaluation, submits to 
     Congress a certification that the Block 2006 Ground-based 
     Midcourse Defense element of the Ballistic Missile Defense 
     System has demonstrated, through operationally realistic end-
     to-end flight testing, that it has a high probability of 
     working in an operationally effective manner.

     SEC. 229. POLICY OF THE UNITED STATES ON PROTECTION OF THE 
                   UNITED STATES AND ITS ALLIES AGAINST IRANIAN 
                   BALLISTIC MISSILES.

       (a) Finding.--Congress finds that Iran maintains a nuclear 
     program in continued defiance of the international community 
     while developing ballistic missiles of increasing 
     sophistication and range that--
       (1) pose a threat to--
       (A) the forward-deployed forces of the United States;
       (B) North Atlantic Treaty Organization (NATO) allies in 
     Europe; and
       (C) other allies and friendly foreign countries in the 
     region; and
       (2) eventually could pose a threat to the United States 
     homeland.
       (b) Policy of the United States.--It is the policy of the 
     United States--
       (1) to develop, test, and deploy, as soon as 
     technologically feasible, in conjunction with allies and 
     friendly foreign countries whenever possible, an effective 
     defense against the threat from Iran described in subsection 
     (a) that will provide protection--
       (A) for the forward-deployed forces of the United States, 
     NATO allies, and other allies and friendly foreign countries 
     in the region; and
       (B) for the United States homeland;
       (2) to encourage the NATO alliance to accelerate its 
     efforts to--
       (A) protect NATO territory in Europe against the existing 
     threat of Iranian short- and medium-range ballistic missiles; 
     and
       (B) facilitate the ability of NATO allies to acquire the 
     missile defense systems needed to provide a wide-area defense 
     capability against short- and medium-range ballistic 
     missiles; and
                       Subtitle D--Other Matters

     SEC. 231. COORDINATION OF HUMAN SYSTEMS INTEGRATION 
                   ACTIVITIES RELATED TO ACQUISITION PROGRAMS.

       (a) In General.--The Secretary of Defense, acting through 
     the Under Secretary of Defense for Acquisition, Technology, 
     and Logistics, shall coordinate and manage human systems 
     integration activities throughout the acquisition programs of 
     the Department of Defense.
       (b) Administration.--In carrying out subsection (a), the 
     Secretary shall designate a senior official to be responsible 
     for the effort.
       (c) Responsibilities.--In carrying out this section, the 
     senior official designated in subsection (b) shall--
       (1) coordinate the planning, management, and execution of 
     such activities; and
       (2) identify and recommend, as appropriate, resource 
     requirements for human systems integration activities.
       (d) Designation.--The designation required by subsection 
     (b) shall be made not later than 60 days after the date of 
     the enactment of this Act.

     SEC. 232. EXPANSION OF AUTHORITY FOR PROVISION OF LABORATORY 
                   FACILITIES, SERVICES, AND EQUIPMENT.

       Section 2539b of title 10, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (2) by striking ``and'' at the end;
       (B) in paragraph (3) by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(4) make available to any person or entity, through 
     leases, contracts, or other appropriate arrangements, 
     facilities, services, and equipment of any government 
     laboratory, research center, or range, if the facilities, 
     services, and equipment provided will not be in direct 
     competition with the domestic private sector.'';
       (2) in subsection (c)--
       (A) by striking ``for services''; and
       (B) by striking ``subsection (a)(3)'' and inserting 
     ``subsections (a)(3) and (a)(4)''; and
       (3) in subsection (d)--
       (A) by striking ``for services made available''; and
       (B) by striking ``subsection (a)(3)'' and inserting 
     ``subsections (a)(3) and (a)(4)''.

     SEC. 233. MODIFICATION OF COST SHARING REQUIREMENT FOR 
                   TECHNOLOGY TRANSITION INITIATIVE.

       Paragraph (2) of section 2359a(f) of title 10, United 
     States Code, is amended to read as follows:
       ``(2) The amount of funds provided to a project under 
     paragraph (1) by the military department or Defense Agency 
     concerned shall be the appropriate share of the military 
     department or Defense Agency, as the case may be, of the cost 
     of the project, as determined by the Manager.''.

[[Page 32530]]



     SEC. 234. REPORT ON IMPLEMENTATION OF MANUFACTURING 
                   TECHNOLOGY PROGRAM.

       (a) Report Required.--Not later than September 1, 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 implementation 
     of the technologies and processes developed under the 
     Manufacturing Technology Program required by section 2521 of 
     title 10, United States Code.
       (b) Elements.--The report shall identify each technology or 
     process implemented and, for each such technology or process, 
     shall identify--
       (1) the project of the Manufacturing Technology Program 
     through which the technology or process was developed, the 
     Federal and non-Federal participants in that project, and the 
     duration of the project;
       (2) the organization or program implementing the technology 
     or process, and a description of the implementation;
       (3) the funding required to implement the technology or 
     process, including--
       (A) funds provided by military departments and Defense 
     Agencies under the Manufacturing Technology Program;
       (B) funds provided by the Department of Defense, or any 
     element of the Department, to co-develop the technology or 
     process;
       (C) to the maximum extent practicable, funds provided by 
     the Department of Defense, or any element of the Department, 
     to--
       (i) mature the technology or process prior to transition to 
     the Manufacturing Technology Program; and
       (ii) provide for the implementation of the technology or 
     process;
       (4) the total value of industry cost share, if applicable;
       (5) if applicable, the total value of cost avoidance or 
     cost savings directly attributable to the implementation of 
     the technology or process; and
       (6) a description of any system performance enhancements, 
     technology performance enhancements, or improvements in a 
     manufacturing readiness level of a system or a technology.
       (c) Definition.--For purposes of this section, the term 
     ``implementation'' refers to--
       (1) the use of a technology or process in the manufacture 
     of defense materiel;
       (2) the inclusion of a technology or process in the systems 
     engineering plan for a program of record; or
       (3) the use of a technology or process for the manufacture 
     of commercial items.
       (d) Scope.--The report shall include technologies or 
     processes developed with funds appropriated or otherwise made 
     available for the Manufacturing Technology programs of the 
     military departments and Defense Agencies for fiscal years 
     2003 through 2005.

     SEC. 235. ASSESSMENT OF SUFFICIENCY OF TEST AND EVALUATION 
                   PERSONNEL.

       (a) Assessment Required.--The Director of Operational Test 
     and Evaluation shall assess whether the Director's 
     professional staff meets the requirement of section 139(j) of 
     title 10, United States Code, that the staff be sufficient to 
     carry out the Director's duties and responsibilities.
       (b) Inclusion in Report.--The Director shall include the 
     results of the assessment in the report, required by section 
     139(g) of title 10, United States Code, summarizing the 
     operational test and evaluation activities during fiscal year 
     2007.

     SEC. 236. REPEAL OF REQUIREMENT FOR SEPARATE REPORTS ON 
                   TECHNOLOGY AREA REVIEW AND ASSESSMENT 
                   SUMMARIES.

       Subsection (c) of section 253 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163; 
     119 Stat. 3179; 10 U.S.C. 2501 note) is repealed.

     SEC. 237. MODIFICATION OF NOTICE AND WAIT REQUIREMENT FOR 
                   OBLIGATION OF FUNDS FOR FOREIGN COMPARATIVE 
                   TEST PROGRAM.

       Paragraph (3) of section 2350a(g) of title 10, United 
     States Code, is amended to read as follows:
       ``(3) The Director of Defense Research and Engineering 
     shall notify the congressional defense committees of the 
     intent to obligate funds made available to carry out this 
     subsection not less than 7 days before such funds are 
     obligated.''.

     SEC. 238. STRATEGIC PLAN FOR THE MANUFACTURING TECHNOLOGY 
                   PROGRAM.

       (a) In General.--Section 2521 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(e) Five-Year Strategic Plan.--(1) The Secretary shall 
     develop a plan for the program that includes the following:
       ``(A) The overall manufacturing technology goals, 
     milestones, priorities, and investment strategy for the 
     program.
       ``(B) The objectives of, and funding for, the program for 
     each military department and each Defense Agency that shall 
     participate in the program during the period of the plan.
       ``(2) The Secretary shall include in the plan mechanisms 
     for assessing the effectiveness of the program under the 
     plan.
       ``(3) The Secretary shall update the plan on a biennial 
     basis.
       ``(4) Each plan, and each update to the plan, shall cover a 
     period of five fiscal years.''.
       (b) Initial Development and Submission of Plan.--
       (1) Development.--The Secretary of Defense shall develop 
     the strategic plan required by subsection (e) of section 2521 
     of title 10, United States Code (as added by subsection (a) 
     of this section), so that the plan goes into effect at the 
     beginning of fiscal year 2009.
       (2) Submission.--Not later than the date on which the 
     budget of the President for fiscal year 2010 is submitted to 
     Congress under section 1105 of title 31, United States Code, 
     the Secretary shall submit to the Committee on Armed Services 
     of the Senate and the Committee on Armed Services of the 
     House of Representatives the plan specified in paragraph (1).

     SEC. 239. MODIFICATION OF AUTHORITIES ON COORDINATION OF 
                   DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE 
                   COMPETITIVE RESEARCH WITH SIMILAR FEDERAL 
                   PROGRAMS.

       Section 257(e)(2) of the National Defense Authorization Act 
     for Fiscal Year 1995 (10 U.S.C. 2358 note) is amended by 
     striking ``shall'' each place it appears and inserting 
     ``may''.

     SEC. 240. ENHANCEMENT OF DEFENSE NANOTECHNOLOGY RESEARCH AND 
                   DEVELOPMENT PROGRAM.

       (a) Program Purposes.--Subsection (b) of section 246 of the 
     Bob Stump National Defense Authorization Act for Fiscal Year 
     2003 (Public Law 107-314; 116 Stat. 2500; 10 U.S.C. 2358 
     note) is amended--
       (1) in paragraph (2), by striking ``in nanoscale research 
     and development'' and inserting ``in the National 
     Nanotechnology Initiative and with the National 
     Nanotechnology Coordination Office under section 3 of the 
     21st Century Nanotechnology Research and Development Act (15 
     U.S.C. 7502)''; and
       (2) in paragraph (3), by striking ``portfolio of 
     fundamental and applied nanoscience and engineering research 
     initiatives'' and inserting ``portfolio of nanotechnology 
     research and development initiatives''.
       (b) Program Administration.--
       (1) Administration through under secretary of defense for 
     acquisition, technology, and logistics.--Subsection (c) of 
     such section is amended--
       (A) by striking ``the Director of Defense Research and 
     Engineering'' and inserting ``the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics''; and
       (B) by striking ``The Director'' and inserting ``The Under 
     Secretary''.
       (2) Other administrative matters.--Such subsection is 
     further amended--
       (A) in paragraph (2), by striking ``the Department's 
     increased investment in nanotechnology research and 
     development and the National Nanotechnology Initiative; and'' 
     and inserting ``investments by the Department and other 
     departments and agencies participating in the National 
     Nanotechnology Initiative in nanotechnology research and 
     development;'';
       (B) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following new paragraph:
       ``(4) oversee Department of Defense participation in 
     interagency coordination of the program with other 
     departments and agencies participating in the National 
     Nanotechnology Initiative.''.
       (c) Program Activities.--Such section is further amended--
       (1) by striking subsection (d); and
       (2) by adding at the end the following new subsection (d):
       ``(d) Strategic Plan.--The Under Secretary shall develop 
     and maintain a strategic plan for defense nanotechnology 
     research and development that--
       ``(1) is integrated with the strategic plan for the 
     National Nanotechnology Initiative and the strategic plans of 
     the Director of Defense Research and Engineering, the 
     military departments, and the Defense Agencies; and
       ``(2) includes a clear strategy for transitioning the 
     research into products needed by the Department.''.
       (d) Reports.--Such section is further amended by adding at 
     the end the following new subsection:
       ``(e) Reports.--
       ``(1) In general.--Not later than March 1 of each of 2009, 
     2011, and 2013, the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics shall submit to the 
     congressional defense committees a report on the program.
       ``(2) Matters included.-- Each report under paragraph (1) 
     shall include the following:
       ``(A) A review of--
       ``(i) the long-term challenges and specific technical goals 
     of the program; and
       ``(ii) the progress made toward meeting such challenges and 
     achieving such goals.
       ``(B) An assessment of current and proposed funding levels 
     for the program, including an assessment of the adequacy of 
     such funding levels to support program activities.
       ``(C) A review of the coordination of activities under the 
     program within the Department of Defense, with other 
     departments and agencies of the United States, and with the 
     National Nanotechnology Initiative.
       ``(D) A review and analysis of the findings and 
     recommendations relating to the Department of Defense of the 
     most recent triennial external review of the National 
     Nanotechnology Program under section 5 of the 21st Century 
     Nanotechnology Research and Development Act (15 U.S.C. 1704), 
     and a description of initiatives of the Department to 
     implement such recommendations.
       ``(E) An assessment of technology transition from 
     nanotechnology research and development to enhanced 
     warfighting capabilities, including contributions from the 
     Department of Defense Small Business Innovative Research and 
     Small Business Technology Transfer Research programs, and the 
     Department of Defense Manufacturing Technology program, and 
     an identification of acquisition programs and deployed

[[Page 32531]]

     defense systems that are incorporating nanotechnologies.
       ``(F) An assessment of global nanotechnology research and 
     development in areas of interest to the Department, including 
     an identification of the use of nanotechnologies in any 
     foreign defense systems.
       ``(G) An assessment of the defense nanotechnology 
     manufacturing and industrial base and its capability to meet 
     the near and far term requirements of the Department.
       ``(H) Such recommendations for additional activities under 
     the program to meet emerging national security requirements 
     as the Under Secretary considers appropriate.
       ``(3) Classification.--Each report under paragraph (1) 
     shall be submitted in unclassified form, but may include a 
     classified annex.''.

     SEC. 241. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER 
                   ASSESSMENT OF THE DEFENSE EXPERIMENTAL PROGRAM 
                   TO STIMULATE COMPETITIVE RESEARCH.

       (a) Assessment Required.--The Secretary of Defense shall--
       (1) utilize a defense federally funded research and 
     development center to carry out an assessment of the 
     effectiveness of the Defense Experimental Program to 
     Stimulate Competitive Research; and
       (2) not later than nine months after the date of the 
     enactment of this Act, submit to the Committees on Armed 
     Services of the Senate and the House of Representatives a 
     report on that assessment.
       (b) Matters Assessed.--The report under subsection (a) 
     shall include the following:
       (1) A description and assessment of the tangible results 
     and progress toward the objectives of the program, 
     including--
       (A) an identification of any past program activities that 
     led to, or were fundamental to, applications used by, or 
     supportive of, operational users; and
       (B) an assessment of whether the program has expanded the 
     national research infrastructure.
       (2) An assessment whether the activities undertaken under 
     the program are consistent with the statute authorizing the 
     program.
       (3) An assessment whether the various elements of the 
     program, such as structure, funding, staffing, project 
     solicitation and selection, and administration, are working 
     effectively and efficiently to support the effective 
     execution of the program.
       (4) A description and assessment of past and ongoing 
     activities of State planning committees under the program in 
     supporting the achievement of the objectives of the program.
       (5) An analysis of the advantages and disadvantages of 
     having an institution-based formula for qualification to 
     participate in the program when compared with the advantages 
     and disadvantages of having a State-based formula for 
     qualification to participate in supporting defense missions 
     and the objective of expanding the Nation's defense research 
     infrastructure.
       (6) An identification of mechanisms for improving the 
     management and implementation of the program, including 
     modification of the statute authorizing the program, 
     Department regulations, program structure, funding levels, 
     funding strategy, or the activities of the State committees.
       (7) Any other matters the Secretary considers appropriate.

     SEC. 242. COST-BENEFIT ANALYSIS OF PROPOSED FUNDING REDUCTION 
                   FOR HIGH ENERGY LASER SYSTEMS TEST FACILITY.

       (a) Report Required.--Not later than 90 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     submit to the congressional defense committees a report 
     containing a cost-benefit analysis of the proposed reduction 
     in Army research, development, test, and evaluation funding 
     for the High Energy Laser Systems Test Facility.
       (b) Evaluation of Impact on Other Military Departments.--
     The report required under subsection (a) shall include an 
     evaluation of the impact of the proposed reduction in funding 
     on each Department of Defense organization or activity that 
     utilizes the High Energy Laser Systems Test Facility.

     SEC. 243. PROMPT GLOBAL STRIKE.

       (a) Research, Development, and Testing Plan.--The Secretary 
     of Defense shall submit to the congressional defense 
     committees a research, development, and testing plan for 
     prompt global strike program objectives for fiscal years 2008 
     through 2013.
       (b) Plan for Obligation and Expenditure of Funds.--
       (1) In general.--The Under Secretary of Defense for 
     Acquisition, Technology, and Logistics shall submit to the 
     congressional defense committees a plan for obligation and 
     expenditure of funds available for prompt global strike for 
     fiscal year 2008. The plan shall include correlations between 
     each technology application being developed in fiscal year 
     2008 and the prompt global strike alternative or alternatives 
     toward which the technology application applies.
       (2) Limitation.--The Under Secretary shall not implement 
     the plan required by paragraph (1) until at least 10 days 
     after the plan is submitted as required by that paragraph.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

                  Subtitle B--Environmental Provisions

Sec. 311. Reimbursement of Environmental Protection Agency for certain 
              costs in connection with Moses Lake Wellfield Superfund 
              Site, Moses Lake, Washington.
Sec. 312. Reimbursement of Environmental Protection Agency for certain 
              costs in connection with the Arctic Surplus Superfund 
              Site, Fairbanks, Alaska.
Sec. 313. Payment to Environmental Protection Agency of stipulated 
              penalties in connection with Jackson Park Housing 
              Complex, Washington.
Sec. 314. Report on control of the brown tree snake.
Sec. 315. Notification of certain residents and civilian employees at 
              Camp Lejeune, North Carolina, of exposure to drinking 
              water contamination.

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Availability of funds in Defense Information Systems Agency 
              Working Capital Fund for technology upgrades to Defense 
              Information Systems Network.
Sec. 322. Modification to public-private competition requirements 
              before conversion to contractor performance.
Sec. 323. Public-private competition at end of period specified in 
              performance agreement not required.
Sec. 324. Guidelines on insourcing new and contracted out functions.
Sec. 325. Restriction on Office of Management and Budget influence over 
              Department of Defense public-private competitions.
Sec. 326. Bid protests by Federal employees in actions under Office of 
              Management and Budget Circular A-76.
Sec. 327. Public-private competition required before conversion to 
              contractor performance.
Sec. 328. Extension of authority for Army industrial facilities to 
              engage in cooperative activities with non-Army entities.
Sec. 329. Reauthorization and modification of multi-trades 
              demonstration project.
Sec. 330. Pilot program for availability of working-capital funds to 
              Army for certain product improvements.

              Subtitle D--Extension of Program Authorities

Sec. 341. Extension of Arsenal Support Program Initiative.
Sec. 342. Extension of period for reimbursement for helmet pads 
              purchased by members of the Armed Forces deployed in 
              contingency operations.
Sec. 343. Extension of temporary authority for contract performance of 
              security guard functions.

                          Subtitle E--Reports

Sec. 351. Reports on National Guard readiness for emergencies and major 
              disasters.
Sec. 352. Annual report on prepositioned materiel and equipment.
Sec. 353. Report on incremental cost of early 2007 enhanced deployment.
Sec. 354. Modification of requirements of Comptroller General report on 
              the readiness of Army and Marine Corps ground forces.
Sec. 355. Plan to improve readiness of ground forces of active and 
              reserve components.
Sec. 356. Independent assessment of Civil Reserve Air Fleet viability.
Sec. 357. Department of Defense Inspector General report on physical 
              security of Department of Defense installations.
Sec. 358. Review of high-altitude aviation training.
Sec. 359. Reports on safety measures and encroachment issues and master 
              plan for Warren Grove Gunnery Range, New Jersey.
Sec. 360. Report on search and rescue capabilities of the Air Force in 
              the northwestern United States.
Sec. 361. Report and master infrastructure recapitalization plan for 
              Cheyenne Mountain Air Station, Colorado.

                       Subtitle F--Other Matters

Sec. 371. Enhancement of corrosion control and prevention functions 
              within Department of Defense.
Sec. 372. Authority for Department of Defense to provide support for 
              certain sporting events.
Sec. 373. Authority to impose reasonable restrictions on payment of 
              full replacement value for lost or damaged personal 
              property transported at Government expense.
Sec. 374. Priority transportation on Department of Defense aircraft of 
              retired members residing in Commonwealths and possessions 
              of the United States for certain health care services.
Sec. 375. Recovery of missing military property.
Sec. 376. Retention of combat uniforms by members of the Armed Forces 
              deployed in support of contingency operations.
Sec. 377. Issue of serviceable material of the Navy other than to Armed 
              Forces.
Sec. 378. Reauthorization of Aviation Insurance Program.
              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2008 for the use of the

[[Page 32532]]

     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, $28,787,219,000.
       (2) For the Navy, $33,355,683,000.
       (3) For the Marine Corps, $4,967,193,000.
       (4) For the Air Force, $33,118,462,000.
       (5) For Defense-wide activities, $22,500,253,000.
       (6) For the Army Reserve, $2,509,862,000.
       (7) For the Navy Reserve, $1,186,883,000.
       (8) For the Marine Corps Reserve, $208,637,000.
       (9) For the Air Force Reserve, $2,821,817,000.
       (10) For the Army National Guard, $5,857,409,000.
       (11) For the Air National Guard, $5,456,668,000.
       (12) For the United States Court of Appeals for the Armed 
     Forces, $11,971,000.
       (13) For Environmental Restoration, Army, $434,879,000.
       (14) For Environmental Restoration, Navy, $300,591,000.
       (15) For Environmental Restoration, Air Force, 
     $458,428,000.
       (16) For Environmental Restoration, Defense-wide, 
     $12,751,000.
       (17) For Environmental Restoration, Formerly Used Defense 
     Sites, $270,249,000.
       (18) For Overseas Humanitarian, Disaster, and Civic Aid 
     programs, $103,300,000.
       (19) For Former Soviet Union Threat Reduction programs, 
     $428,048,000.
       (20) For the Overseas Contingency Operations Transfer Fund, 
     $5,000,000.
                  Subtitle B--Environmental Provisions

     SEC. 311. 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, notwithstanding section 
     2215 of title 10, United States Code, transfer not more than 
     $91,588.51 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(16) for operation and maintenance for 
     Environmental Restoration, Defense-wide.
       (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. 312. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY 
                   FOR CERTAIN COSTS IN CONNECTION WITH THE ARCTIC 
                   SURPLUS SUPERFUND SITE, FAIRBANKS, ALASKA.

       (a) Authority To Reimburse.--
       (1) Transfer amount.--Using funds described in subsection 
     (b), the Secretary of Defense may, notwithstanding section 
     2215 of title 10, United States Code, transfer not more than 
     $186,625.38 to the Hazardous Substance Superfund.
       (2) Purpose of reimbursement.--The payment under paragraph 
     (1) is to reimburse the Environmental Protection Agency for 
     costs incurred pursuant to the agreement known as ``In the 
     Matter of Arctic Surplus Superfund Site, U.S. EPA Docket 
     Number CERCLA-10-2003-0114: Administrative Order on Consent 
     for Remedial Design and Remedial Action'', entered into by 
     the Department of Defense and the Environmental Protection 
     Agency on December 11, 2003.
       (b) Source of Funds.--Any payment under subsection (a) 
     shall be made using funds authorized to be appropriated by 
     section 301(16) for operation and maintenance for 
     Environmental Restoration, Defense-wide.
       (c) Use of Funds.--The Environmental Protection Agency 
     shall use the amount transferred under subsection (a) to pay 
     costs incurred by the Agency pursuant to the agreement 
     described in paragraph (2) of such subsection.

     SEC. 313. PAYMENT TO ENVIRONMENTAL PROTECTION AGENCY OF 
                   STIPULATED PENALTIES IN CONNECTION WITH JACKSON 
                   PARK HOUSING COMPLEX, WASHINGTON.

       (a) Authority To Transfer Funds.--
       (1) Transfer amount.--Using funds described in subsection 
     (b), the Secretary of the Navy may, notwithstanding section 
     2215 of title 10, United States Code, transfer not more than 
     $40,000.00 to the Hazardous Substance Superfund.
       (2) Purpose of transfer.--The payment under paragraph (1) 
     is to pay a stipulated penalty assessed by the Environmental 
     Protection Agency on October 25, 2005, against the Jackson 
     Park Housing Complex, Washington, for the failure by the Navy 
     to timely submit a draft final Phase II Remedial 
     Investigation Work Plan for the Jackson Park Housing Complex 
     Operable Unit (OU-3T-JPHC) pursuant to a schedule included in 
     an Interagency Agreement (Administrative Docket No. CERCLA-
     10-2005-0023).
       (b) Source of Funds.--Any payment under subsection (a) 
     shall be made using funds authorized to be appropriated by 
     section 301(14) for operation and maintenance for 
     Environmental Restoration, Navy.
       (c) Use of Funds.--The amount transferred under subsection 
     (a) shall be used by the Environmental Protection Agency to 
     pay the penalty described under paragraph (2) of such 
     subsection.

     SEC. 314. REPORT ON CONTROL OF THE BROWN TREE SNAKE.

       (a) Findings.--Congress finds the following:
       (1) The brown tree snake (Boiga irregularis), an invasive 
     species, is found in significant numbers on military 
     installations and in other areas on Guam, and constitutes a 
     serious threat to the ecology of Guam.
       (2) If introduced into Hawaii, the Commonwealth of the 
     Northern Mariana Islands, or the continental United States, 
     the brown tree snake would pose an immediate and serious 
     economic and ecological threat.
       (3) The most probable vector for the introduction of the 
     brown tree snake into Hawaii, the Commonwealth of the 
     Northern Mariana Islands, or the continental United States is 
     the movement from Guam of military aircraft, personnel, and 
     cargo, including the household goods of military personnel 
     and other military assets.
       (4) It is probable that the movement of military aircraft, 
     personnel, and cargo, including the household goods of 
     military personnel, from Guam to Hawaii, the Commonwealth of 
     the Northern Mariana Islands, or the continental United 
     States will increase significantly coincident with the 
     increase in the number of military units and personnel 
     stationed on Guam.
       (5) Current policies, programs, procedures, and dedicated 
     resources of the Department of Defense and of other 
     departments and agencies of the United States may not be 
     sufficient to adequately address the management, control, and 
     eradication of the brown tree snake on Guam and the 
     increasing threat of the introduction of the brown tree snake 
     from Guam into Hawaii, the Commonwealth of the Northern 
     Mariana Islands, the continental United States, or other non-
     native environments.
       (b) Report.--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 the 
     following:
       (1) The actions currently being taken (including the 
     resources being made available) by the Department of Defense 
     to control, and to develop new or existing techniques to 
     control, the brown tree snake on Guam and to prevent the 
     introduction of the brown tree snake into Hawaii, the 
     Commonwealth of the Northern Mariana Island, the continental 
     United States, or any other non-native environment as a 
     result of the movement from Guam of military aircraft, 
     personnel, and cargo, including the household goods of 
     military personnel and other military assets. Such actions 
     shall include any actions taken by the Department of Defense 
     to implement the recommendations of the Brown Treesnake 
     Review Panel commissioned by the Department of the Interior, 
     as contained in the Review Panel's final report entitled 
     ``Review of Brown Treesnake Problems and Control Programs'' 
     published in March 2005.
       (2) Current plans for enhanced future actions, policies, 
     and procedures and increased levels of resources in order to 
     ensure that the projected increase of military personnel 
     stationed on Guam does not increase the threat of 
     introduction of the brown tree snake from Guam into Hawaii, 
     the Commonwealth of the Northern Mariana Islands, the 
     continental United States, or other non-native environments.
       (3) The results of management, control, and eradication 
     carried out by the Secretary of Defense, in consultation with 
     the Secretary of the Interior, before the date on which the 
     report is submitted with respect to brown tree snakes through 
     the integrated natural resource management plans prepared for 
     military installations in Guam under the pilot program 
     authorized by section 101(g) of the Sikes Act (16 U.S.C. 
     670a(g)).

     SEC. 315. NOTIFICATION OF CERTAIN RESIDENTS AND CIVILIAN 
                   EMPLOYEES AT CAMP LEJEUNE, NORTH CAROLINA, OF 
                   EXPOSURE TO DRINKING WATER CONTAMINATION.

       (a) Notification of Individuals Served by Tarawa Terrace 
     Water Distribution System, Including Knox Trailer Park.--Not 
     later than one year after the date of the enactment of this 
     Act, the Secretary of the Navy shall make reasonable efforts 
     to identify and notify directly individuals who were served 
     by the Tarawa Terrace Water Distribution System, including 
     Knox Trailer Park, at Camp Lejeune, North Carolina, during 
     the years 1958 through 1987 that they may have been exposed 
     to drinking water contaminated with tetrachloroethylene 
     (PCE).
       (b) Notification of Individuals Served by Hadnot Point 
     Water Distribution System.--Not later than one year after the 
     Agency for Toxic Substances and Disease Registry (ATSDR) 
     completes its water modeling study of the Hadnot Point water 
     distribution system, the Secretary of the Navy shall make 
     reasonable efforts to identify and notify directly 
     individuals who were served by the system during the period 
     identified in the study of the drinking water contamination 
     to which they may have been exposed.
       (c) Notification of Former Civilian Employees at Camp 
     Lejeune.--Not later than one year after the date of the 
     enactment of this Act, the Secretary of the Navy shall make 
     reasonable

[[Page 32533]]

     efforts to identify and notify directly civilian employees 
     who worked at Camp Lejeune during the period identified in 
     the ATSDR drinking water study of the drinking water 
     contamination to which they may have been exposed.
       (d) Circulation of Health Survey.--
       (1) Findings.--Congress makes the following findings:
       (A) Notification and survey efforts related to the drinking 
     water contamination described in this section are necessary 
     due to the potential negative health impacts of these 
     contaminants.
       (B) The Secretary of the Navy will not be able to identify 
     or contact all former residents and former employees due to 
     the condition, non-existence, or accessibility of records.
       (C) It is the intent of Congress that the Secretary of the 
     Navy contact as many former residents and former employees as 
     quickly as possible.
       (2) ATSDR health survey.--
       (A) Development.--
       (i) In general.--Not later than 120 days after the date of 
     the enactment of this Act, the ATSDR, in consultation with a 
     well-qualified contractor selected by the ATSDR, shall 
     develop a health survey that would voluntarily request of 
     individuals described in subsections (a), (b), and (c) 
     personal health information that may lead to scientifically 
     useful health information associated with exposure to 
     trichloroethylene (TCE), PCE, vinyl chloride, and the other 
     contaminants identified in the ATSDR studies that may provide 
     a basis for further reliable scientific studies of 
     potentially adverse health impacts of exposure to 
     contaminated water at Camp Lejeune.
       (ii) Funding.--The Secretary of the Navy is authorized to 
     provide from available funds the necessary funding for the 
     ATSDR to develop the health survey.
       (B) Inclusion with notification.--The survey developed 
     under subparagraph (A) shall be distributed by the Secretary 
     of the Navy concurrently with the direct notification 
     required under subsections (a), (b), and (c).
       (e) Use of Media To Supplement Notification.--The Secretary 
     of the Navy may use media notification as a supplement to 
     direct notification of individuals described under 
     subsections (a), (b), and (c). Media notification may reach 
     those individuals not identifiable via remaining records. 
     Once individuals respond to media notifications, the 
     Secretary will add them to the contact list to be included in 
     future information updates.
                 Subtitle C--Workplace and Depot Issues

     SEC. 321. AVAILABILITY OF FUNDS IN DEFENSE INFORMATION 
                   SYSTEMS AGENCY WORKING CAPITAL FUND FOR 
                   TECHNOLOGY UPGRADES TO DEFENSE INFORMATION 
                   SYSTEMS NETWORK.

       (a) In General.--Notwithstanding section 2208 of title 10, 
     United States Code, funds in the Defense Information Systems 
     Agency Working Capital Fund may be used for expenses directly 
     related to technology upgrades to the Defense Information 
     Systems Network.
       (b) Limitation on Certain Projects.--Funds may not be used 
     under subsection (a) for--
       (1) any technology insertion to the Defense Information 
     Systems Network that significantly changes the performance 
     envelope of an end item; or
       (2) any component with an estimated total cost in excess of 
     $500,000.
       (c) Limitation in Fiscal Year Pending Timely Report.--If in 
     any fiscal year the report required by paragraph (1) of 
     subsection (d) is not submitted by the date specified in 
     paragraph (2) of subsection (d), funds may not be used under 
     subsection (a) in such fiscal year during the period--
       (1) beginning on the date specified in paragraph (2) of 
     subsection (d); and
       (2) ending on the date of the submittal of the report under 
     paragraph (1) of subsection (d).
       (d) Annual Report.--
       (1) In general.--The Director of the Defense Information 
     Systems Agency shall submit to the congressional defense 
     committees each fiscal year a report on the use of the 
     authority in subsection (a) during the preceding fiscal year.
       (2) Deadline for submittal.--The report required by 
     paragraph (1) in a fiscal year shall be submitted not later 
     than 60 days after the date of the submittal to Congress of 
     the budget of the President for the succeeding fiscal year 
     pursuant to section 1105 of title 31, United States Code.
       (e) Sunset.--The authority in subsection (a) shall expire 
     on October 1, 2011.

     SEC. 322. MODIFICATION TO PUBLIC-PRIVATE COMPETITION 
                   REQUIREMENTS BEFORE CONVERSION TO CONTRACTOR 
                   PERFORMANCE.

       (a) Comparison of Retirement System Costs.--Section 
     2461(a)(1) of title 10, United States Code, is amended--
       (1) in subparagraph (F), by striking ``and'' at the end;
       (2) by redesignating subparagraph (G) as subparagraph (H); 
     and
       (3) by inserting after subparagraph (F) the following new 
     subparagraph (G):
       ``(G) requires that the contractor shall not receive an 
     advantage for a proposal that would reduce costs for the 
     Department of Defense by--
       ``(i) not making an employer-sponsored health insurance 
     plan (or payment that could be used in lieu of such a plan), 
     health savings account, or medical savings account available 
     to the workers who are to be employed to perform the function 
     under the contract;
       ``(ii) offering to such workers an employer-sponsored 
     health benefits plan that requires the employer to contribute 
     less towards the premium or subscription share than the 
     amount that is paid by the Department of Defense for health 
     benefits for civilian employees of the Department under 
     chapter 89 of title 5; or
       ``(iii) offering to such workers a retirement benefit that, 
     in any year, costs less than the annual retirement cost 
     factor applicable to civilian employees of the Department of 
     Defense under chapter 84 of title 5; and''.
       (b) Conforming Amendments.--Such title is further amended--
       (1) by striking section 2467; and
       (2) in section 2461--
       (A) by redesignating subsections (b) through (d) as 
     subsections (c) through (e), respectively; and
       (B) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Requirement to Consult DOD Employees.--(1) Each 
     officer or employee of the Department of Defense responsible 
     for determining under Office of Management and Budget 
     Circular A-76 whether to convert to contractor performance 
     any function of the Department of Defense--
       ``(A) shall, at least monthly during the development and 
     preparation of the performance work statement and the 
     management efficiency study used in making that 
     determination, consult with civilian employees who will be 
     affected by that determination and consider the views of such 
     employees on the development and preparation of that 
     statement and that study; and
       ``(B) may consult with such employees on other matters 
     relating to that determination.
       ``(2)(A) In the case of employees represented by a labor 
     organization accorded exclusive recognition under section 
     7111 of title 5, consultation with representatives of that 
     labor organization shall satisfy the consultation requirement 
     in paragraph (1).
       ``(B) In the case of employees other than employees 
     referred to in subparagraph (A), consultation with 
     appropriate representatives of those employees shall satisfy 
     the consultation requirement in paragraph (1).
       ``(C) The Secretary of Defense shall prescribe regulations 
     to carry out this subsection. The regulations shall include 
     provisions for the selection or designation of appropriate 
     representatives of employees referred to in subparagraph (B) 
     for purposes of the consultation required by paragraph 
     (1).''.
       (c) Technical Amendments.--Section 2461 of such title, as 
     amended by this section, is further amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (B), by inserting after ``2003'' the 
     following: ``, or any successor circular''; and
       (B) in subparagraph (D), by striking ``and reliability'' 
     and inserting ``, reliability, and timeliness''; and
       (2) in subsection (c)(2), as redesignated by subsection 
     (b)(2), by inserting ``of'' after ``examination''.
       (d) Clerical Amendment.--The table of sections at the 
     beginning of chapter 146 of such title is amended by striking 
     the item relating to section 2467.

     SEC. 323. PUBLIC-PRIVATE COMPETITION AT END OF PERIOD 
                   SPECIFIED IN PERFORMANCE AGREEMENT NOT 
                   REQUIRED.

       Section 2461(a) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(4) A military department or Defense Agency may not be 
     required to conduct a public-private competition under Office 
     of Management and Budget Circular A-76 or any other provision 
     of law at the end of the performance period specified in a 
     letter of obligation or other agreement entered into with 
     Department of Defense civilian employees pursuant to a 
     public-private competition for any function of the Department 
     of Defense performed by Department of Defense civilian 
     employees.''.

     SEC. 324. GUIDELINES ON INSOURCING NEW AND CONTRACTED OUT 
                   FUNCTIONS.

       (a) Codification and Revision of Requirement for 
     Guidelines.--
       (1) In general.--Chapter 146 of title 10, United States 
     Code, is amended by inserting after section 2462 the 
     following new section:

     ``Sec. 2463. Guidelines and procedures for use of civilian 
       employees to perform Department of Defense functions

       ``(a) Guidelines Required.--(1) The Under Secretary of 
     Defense for Personnel and Readiness shall devise and 
     implement guidelines and procedures to ensure that 
     consideration is given to using, on a regular basis, 
     Department of Defense civilian employees to perform new 
     functions and functions that are performed by contractors and 
     could be performed by Department of Defense civilian 
     employees. The Secretary of a military department may 
     prescribe supplemental regulations, if the Secretary 
     determines such regulations are necessary for implementing 
     such guidelines within that military department.
       ``(2) The guidelines and procedures required under 
     paragraph (1) may not include any specific limitation or 
     restriction on the number of functions or activities that may 
     be converted to performance by Department of Defense civilian 
     employees.
       ``(b) Special Consideration for Certain Functions.--The 
     guidelines and procedures required under subsection (a) shall 
     provide for special consideration to be given to using 
     Department of Defense civilian employees to perform any 
     function that--
       ``(1) is performed by a contractor and--
       ``(A) has been performed by Department of Defense civilian 
     employees at any time during the previous 10 years;

[[Page 32534]]

       ``(B) is a function closely associated with the performance 
     of an inherently governmental function;
       ``(C) has been performed pursuant to a contract awarded on 
     a non-competitive basis; or
       ``(D) has been performed poorly, as determined by a 
     contracting officer during the five-year period preceding the 
     date of such determination, because of excessive costs or 
     inferior quality; or
       ``(2) is a new requirement, with particular emphasis given 
     to a new requirement that is similar to a function previously 
     performed by Department of Defense civilian employees or is a 
     function closely associated with the performance of an 
     inherently governmental function.
       ``(c) Exclusion of Certain Functions From Competitions.--
     The Secretary of Defense may not conduct a public-private 
     competition under this chapter, Office of Management and 
     Budget Circular A-76, or any other provision of law or 
     regulation before--
       ``(1) in the case of a new Department of Defense function, 
     assigning the performance of the function to Department of 
     Defense civilian employees;
       ``(2) in the case of any Department of Defense function 
     described in subsection (b), converting the function to 
     performance by Department of Defense civilian employees; or
       ``(3) in the case of a Department of Defense function 
     performed by Department of Defense civilian employees, 
     expanding the scope of the function.
       ``(d) Use of Flexible Hiring Authority.--(1) The Secretary 
     of Defense may use the flexible hiring authority available to 
     the Secretary under the National Security Personnel System, 
     as established pursuant to section 9902 of title 5, to 
     facilitate the performance by Department of Defense civilian 
     employees of functions described in subsection (b).
       ``(2) The Secretary shall make use of the inventory 
     required by section 2330a(c) of this title for the purpose of 
     identifying functions that should be considered for 
     performance by Department of Defense civilian employees 
     pursuant to subsection (b).
       ``(e) Definitions.--In this section the term `functions 
     closely associated with inherently governmental functions' 
     has the meaning given that term in section 2383(b)(3) of this 
     title.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2462 the following new item:

``2463. Guidelines and procedures for use of civilian employees to 
              perform Department of Defense functions.''.

       (3) Deadline for issuance of guidelines and procedures.--
     The Secretary of Defense shall implement the guidelines and 
     procedures required under section 2463 of title 10, United 
     States Code, as added by paragraph (1), by not later than 60 
     days after the date of the enactment of this Act.
       (b) Inspector General Report.--Not later than 180 days 
     after the date of the enactment of this Act, the Inspector 
     General of the Department of Defense shall submit to the 
     congressional defense committees a report on the 
     implementation of this section and the amendments made by 
     this section.
       (c) Conforming Repeal.--The National Defense Authorization 
     Act for Fiscal Year 2006 (Public Law 109-163) is amended by 
     striking section 343.

     SEC. 325. RESTRICTION ON OFFICE OF MANAGEMENT AND BUDGET 
                   INFLUENCE OVER DEPARTMENT OF DEFENSE PUBLIC-
                   PRIVATE COMPETITIONS.

       (a) Restriction on Office of Management and Budget.--The 
     Office of Management and Budget may not direct or require the 
     Secretary of Defense or the Secretary of a military 
     department to prepare for, undertake, continue, or complete a 
     public-private competition or direct conversion of a 
     Department of Defense function to performance by a contractor 
     under Office of Management and Budget Circular A-76, or any 
     other successor regulation, directive, or policy.
       (b) Restriction on Secretary of Defense.--The Secretary of 
     Defense or the Secretary of a military department may not 
     prepare for, undertake, continue, or complete a public-
     private competition or direct conversion of a Department of 
     Defense function to performance by a contractor under Office 
     of Management and Budget Circular A-76, or any other 
     successor regulation, directive, or policy by reason of any 
     direction or requirement provided by the Office of Management 
     and Budget.
       (c) Inspector General Review.--
       (1) Comprehensive review required.--The Inspector General 
     of the Department of Defense shall conduct a comprehensive 
     review of the compliance of the Secretary of Defense and the 
     Secretaries of the military departments with the requirements 
     of this section during calendar year 2008. The Inspector 
     General shall submit to the congressional defense committees 
     the following reports on the comprehensive review:
       (A) An interim report, to be submitted by not later than 90 
     days after the date of the enactment of this Act.
       (B) A final report, to be submitted by not later than 
     December 31, 2008.
       (2) Inspector general access.--For the purpose of 
     determining compliance with the requirements of this section, 
     the Secretary of Defense shall ensure that the Inspector 
     General has access to all Department records of relevant 
     communications between Department officials and officials of 
     other departments and agencies of the Federal Government, 
     whether such communications occurred inside or outside of the 
     Department.

     SEC. 326. BID PROTESTS BY FEDERAL EMPLOYEES IN ACTIONS UNDER 
                   OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-76.

       (a) Eligibility to Protest Public-Private Competitions.--
     Section 3551(2) of title 31, United States Code, is amended 
     to read as follows:
       ``(2) The term `interested party'--
       ``(A) with respect to a contract or a solicitation or other 
     request for offers described in paragraph (1), means an 
     actual or prospective bidder or offeror whose direct economic 
     interest would be affected by the award of the contract or by 
     failure to award the contract; and
       ``(B) with respect to a public-private competition 
     conducted under Office of Management and Budget Circular A-76 
     with respect to the performance of an activity or function of 
     a Federal agency, or a decision to convert a function 
     performed by Federal employees to private sector performance 
     without a competition under Office of Management and Budget 
     Circular A-76, includes--
       ``(i) any official who submitted the agency tender in such 
     competition; and
       ``(ii) any one individual who, for the purpose of 
     representing the Federal employees engaged in the performance 
     of the activity or function for which the public-private 
     competition is conducted in a protest under this subchapter 
     that relates to such public-private competition, has been 
     designated as the agent of the Federal employees by a 
     majority of such employees.''.
       (b) Expedited Action.--
       (1) In general.--Subchapter V of chapter 35 of such title 
     is amended by adding at the end the following new section:

     ``Sec. 3557. Expedited action in protests of Public-Private 
       competitions

       ``For any protest of a public-private competition conducted 
     under Office of Management and Budget Circular A-76 with 
     respect to the performance of an activity or function of a 
     Federal agency, the Comptroller General shall administer the 
     provisions of this subchapter in the manner best suited for 
     expediting the final resolution of the protest and the final 
     action in the public-private competition.''.
       (2) Clerical amendment.--The chapter analysis at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 3556 the following new item:

``3557. Expedited action in protests of public-private competitions.''.

       (c) Right to Intervene in Civil Action.--Section 1491(b) of 
     title 28, United States Code, is amended by adding at the end 
     the following new paragraph:
       ``(5) If an interested party who is a member of the private 
     sector commences an action described in paragraph (1) with 
     respect to a public-private competition conducted under 
     Office of Management and Budget Circular A-76 regarding the 
     performance of an activity or function of a Federal agency, 
     or a decision to convert a function performed by Federal 
     employees to private sector performance without a competition 
     under Office of Management and Budget Circular A-76, then an 
     interested party described in section 3551(2)(B) of title 31 
     shall be entitled to intervene in that action.''.
       (d) Applicability.--Subparagraph (B) of section 3551(2) of 
     title 31, United States Code (as added by subsection (a)), 
     and paragraph (5) of section 1491(b) of title 28, United 
     States Code (as added by subsection (c)), shall apply to--
       (1) a protest or civil action that challenges final 
     selection of the source of performance of an activity or 
     function of a Federal agency that is made pursuant to a study 
     initiated under Office of Management and Budget Circular A-76 
     on or after January 1, 2004; and
       (2) any other protest or civil action that relates to a 
     public-private competition initiated under Office of 
     Management and Budget Circular A-76, or to a decision to 
     convert a function performed by Federal employees to private 
     sector performance without a competition under Office of 
     Management and Budget Circular A-76, on or after the date of 
     the enactment of this Act.

     SEC. 327. PUBLIC-PRIVATE COMPETITION REQUIRED BEFORE 
                   CONVERSION TO CONTRACTOR PERFORMANCE.

       (a) In General.--The Office of Federal Procurement Policy 
     Act (41 U.S.C. 403 et seq.) is amended by adding at the end 
     the following new section:

     ``SEC. 43. PUBLIC-PRIVATE COMPETITION REQUIRED BEFORE 
                   CONVERSION TO CONTRACTOR PERFORMANCE.

       ``(a) Public-Private Competition.--(1) A function of an 
     executive agency performed by 10 or more agency civilian 
     employees may not be converted, in whole or in part, to 
     performance by a contractor unless the conversion is based on 
     the results of a public-private competition that--
       ``(A) formally compares the cost of performance of the 
     function by agency civilian employees with the cost of 
     performance by a contractor;
       ``(B) creates an agency tender, including a most efficient 
     organization plan, in accordance with Office of Management 
     and Budget Circular A-76, as implemented on May 29, 2003, or 
     any successor circular;
       ``(C) includes the issuance of a solicitation;
       ``(D) determines whether the submitted offers meet the 
     needs of the executive agency with respect to factors other 
     than cost, including quality, reliability, and timeliness;
       ``(E) examines the cost of performance of the function by 
     agency civilian employees and the cost of performance of the 
     function by one or

[[Page 32535]]

     more contractors to demonstrate whether converting to 
     performance by a contractor will result in savings to the 
     Government over the life of the contract, including--
       ``(i) the estimated cost to the Government (based on offers 
     received) for performance of the function by a contractor;
       ``(ii) the estimated cost to the Government for performance 
     of the function by agency civilian employees; and
       ``(iii) an estimate of all other costs and expenditures 
     that the Government would incur because of the award of such 
     a contract;
       ``(F) requires continued performance of the function by 
     agency civilian employees unless the difference in the cost 
     of performance of the function by a contractor compared to 
     the cost of performance of the function by agency civilian 
     employees would, over all performance periods required by the 
     solicitation, be equal to or exceed the lesser of--
       ``(i) 10 percent of the personnel-related costs for 
     performance of that function in the agency tender; or
       ``(ii) $10,000,000; and
       ``(G) examines the effect of performance of the function by 
     a contractor on the agency mission associated with the 
     performance of the function.
       ``(2) A function that is performed by the executive agency 
     and is reengineered, reorganized, modernized, upgraded, 
     expanded, or changed to become more efficient, but still 
     essentially provides the same service, shall not be 
     considered a new requirement.
       ``(3) In no case may a function being performed by 
     executive agency personnel be--
       ``(A) modified, reorganized, divided, or in any way changed 
     for the purpose of exempting the conversion of the function 
     from the requirements of this section; or
       ``(B) converted to performance by a contractor to 
     circumvent a civilian personnel ceiling.
       ``(b) Requirement To Consult Employees.--(1) Each civilian 
     employee of an executive agency responsible for determining 
     under Office of Management and Budget Circular A-76 whether 
     to convert to contractor performance any function of the 
     executive agency--
       ``(A) shall, at least monthly during the development and 
     preparation of the performance work statement and the 
     management efficiency study used in making that 
     determination, consult with civilian employees who will be 
     affected by that determination and consider the views of such 
     employees on the development and preparation of that 
     statement and that study; and
       ``(B) may consult with such employees on other matters 
     relating to that determination.
       ``(2)(A) In the case of employees represented by a labor 
     organization accorded exclusive recognition under section 
     7111 of title 5, United States Code, consultation with 
     representatives of that labor organization shall satisfy the 
     consultation requirement in paragraph (1).
       ``(B) In the case of employees other than employees 
     referred to in subparagraph (A), consultation with 
     appropriate representatives of those employees shall satisfy 
     the consultation requirement in paragraph (1).
       ``(C) The head of each executive agency shall prescribe 
     regulations to carry out this subsection. The regulations 
     shall include provisions for the selection or designation of 
     appropriate representatives of employees referred to in 
     paragraph (2)(B) for purposes of consultation required by 
     paragraph (1).
       ``(c) Congressional Notification.--(1) Before commencing a 
     public-private competition under subsection (a), the head of 
     an executive agency shall submit to Congress a report 
     containing the following:
       ``(A) The function for which such public-private 
     competition is to be conducted.
       ``(B) The location at which the function is performed by 
     agency civilian employees.
       ``(C) The number of agency civilian employee positions 
     potentially affected.
       ``(D) The anticipated length and cost of the public-private 
     competition, and a specific identification of the budgetary 
     line item from which funds will be used to cover the cost of 
     the public-private competition.
       ``(E) A certification that a proposed performance of the 
     function by a contractor is not a result of a decision by an 
     official of an executive agency to impose predetermined 
     constraints or limitations on such employees in terms of man 
     years, end strengths, full-time equivalent positions, or 
     maximum number of employees.
       ``(2) The report required under paragraph (1) shall include 
     an examination of the potential economic effect of 
     performance of the function by a contractor on--
       ``(A) agency civilian employees who would be affected by 
     such a conversion in performance; and
       ``(B) the local community and the Government, if more than 
     50 agency civilian employees perform the function.
       ``(3)(A) A representative individual or entity at a 
     facility where a public-private competition is conducted may 
     submit to the head of the executive agency an objection to 
     the public private competition on the grounds that the report 
     required by paragraph (1) has not been submitted or that the 
     certification required by paragraph (1)(E) is not included in 
     the report submitted as a condition for the public private 
     competition. The objection shall be in writing and shall be 
     submitted within 90 days after the following date:
       ``(i) In the case of a failure to submit the report when 
     required, the date on which the representative individual or 
     an official of the representative entity authorized to pose 
     the objection first knew or should have known of that 
     failure.
       ``(ii) In the case of a failure to include the 
     certification in a submitted report, the date on which the 
     report was submitted to Congress.
       ``(B) If the head of the executive agency determines that 
     the report required by paragraph (1) was not submitted or 
     that the required certification was not included in the 
     submitted report, the function for which the public-private 
     competition was conducted for which the objection was 
     submitted may not be the subject of a solicitation of offers 
     for, or award of, a contract until, respectively, the report 
     is submitted or a report containing the certification in full 
     compliance with the certification requirement is submitted.
       ``(d) Exemption for the Purchase of Products and Services 
     of the Blind and Other Severely Handicapped Persons.--This 
     section shall not apply to a commercial or industrial type 
     function of an executive agency that--
       ``(1) is included on the procurement list established 
     pursuant to section 2 of the Javits-Wagner-O'Day Act (41 
     U.S.C. 47); or
       ``(2) is planned to be changed to performance by a 
     qualified nonprofit agency for the blind or by a qualified 
     nonprofit agency for other severely handicapped persons in 
     accordance with that Act.
       ``(e) Inapplicability During War or Emergency.--The 
     provisions of this section shall not apply during war or 
     during a period of national emergency declared by the 
     President or Congress.''.
       (b) Clerical Amendment.--The table of sections in section 
     1(b) of such Act is amended by adding at the end the 
     following new item:

``Sec. 43. Public-private competition required before conversion to 
              contractor performance.''.

     SEC. 328. EXTENSION OF AUTHORITY FOR ARMY INDUSTRIAL 
                   FACILITIES TO ENGAGE IN COOPERATIVE ACTIVITIES 
                   WITH NON-ARMY ENTITIES.

       (a) Extension of Authority.--Section 4544 of title 10, 
     United States Code, is amended--
       (1) in subsection (a), by adding at the end the following: 
     ``This authority may be used to enter into not more than 
     eight contracts or cooperative agreements.''; and
       (2) in subsection (k), by striking ``2009'' and inserting 
     ``2014''.
       (b) Reports.--
       (1) Annual report on use of authority.--The Secretary of 
     the Army shall submit to Congress at the same time the budget 
     of the President is submitted to Congress for fiscal years 
     2009 through 2016 under section 1105 of title 31, United 
     States Code, a report on the use of the authority provided 
     under section 4544 of title 10, United States Code.
       (2) Analysis of use of authority.--Not later than September 
     30, 2012, the Secretary of the Army shall submit to the 
     congressional defense committees a report assessing the 
     advisability of making such authority permanent and 
     eliminating the limitation on the number of contracts or 
     cooperative arrangements that may be entered into pursuant to 
     such authority.

     SEC. 329. REAUTHORIZATION AND MODIFICATION OF MULTI-TRADES 
                   DEMONSTRATION PROJECT.

       (a) Reauthorization and Expansion.--Section 338 of the 
     National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136; 10 U.S.C. 5013 note) is amended--
       (1) by striking subsection (a) and inserting the following 
     new subsection (a):
       ``(a) Demonstration Project Authorized.--In accordance with 
     section 4703 of title 5, United States Code, the Secretary of 
     a military department may carry out a demonstration project 
     under which workers who are certified at the journey level as 
     able to perform multiple trades may be promoted by one grade 
     level. A demonstration project under this subsection may be 
     carried out as follows:
       ``(1) In the case of the Secretary of the Army, at one Army 
     depot.
       ``(2) In the case of the Secretary of the Navy, at one Navy 
     Fleet Readiness Center.
       ``(3) In the case of the Secretary of the Air Force, at one 
     Air Force Logistics Center.'';
       (2) in subsection (b)--
       (A) by striking ``a Naval Aviation Depot'' and inserting 
     ``an Air Force Air Logistics Center, Navy Fleet Readiness 
     Center, or Army depot''; and
       (B) by striking ``Secretary'' and inserting ``Secretary of 
     the military department concerned'';
       (3) by striking subsection (d) and redesignating 
     subsections (e) through (g) as subsections (d) through (f), 
     respectively;
       (4) in subsection (d), as so redesignated, by striking 
     ``2004 through 2006'' and inserting ``2008 through 2013'';
       (5) in subsection (e), as so redesignated--
       (A) by striking ``2007'' and inserting ``2014'';
       (B) by inserting after ``Secretary'' the following ``of 
     each military department that carried out a demonstration 
     project under this section''; and
       (C) by adding at the end the following new sentence: ``Each 
     such report shall include the Secretary's recommendation on 
     whether permanent multi-trade authority should be 
     authorized.''; and
       (6) in subsection (f), as so redesignated--
       (A) in the first sentence, by striking ``The Secretary'' 
     and inserting ``Each Secretary who submits a report under 
     subsection (e)''; and
       (B) in the second sentence--
       (i) by striking ``receiving the report'' and inserting 
     ``receiving a report''; and

[[Page 32536]]

       (ii) by striking ``evaluation of the report'' and inserting 
     ``evaluation of that report''.
       (b) Clerical Amendment.--The heading for such section is 
     amended to read as follows:

     ``SEC. 338. MULTI-TRADES DEMONSTRATION PROJECT.''.

     SEC. 330. PILOT PROGRAM FOR AVAILABILITY OF WORKING-CAPITAL 
                   FUNDS TO ARMY FOR CERTAIN PRODUCT IMPROVEMENTS.

       (a) In General.--Notwithstanding section 2208 of title 10, 
     United States Code, the Secretary of the Army may use a 
     working-capital fund established pursuant to that section for 
     expenses directly related to conducting a pilot program for a 
     product improvement described in subsection (b).
       (b) Product Improvement.--A product improvement covered by 
     the pilot program is the procurement and installation of a 
     component or subsystem of a weapon system platform or major 
     end item that would improve the reliability and 
     maintainability, extend the useful life, enhance safety, 
     lower maintenance costs, or provide performance enhancement 
     of the weapon system platform or major end item.
       (c) Limitation on Certain Projects.--Funds may not be used 
     under subsection (a) for--
       (1) any product improvement that significantly changes the 
     performance envelope of an end item; or
       (2) any component with an estimated total cost in excess of 
     $1,000,000.
       (d) Limitation in Fiscal Year Pending Timely Report.--If 
     during any fiscal year the report required by paragraph (1) 
     of subsection (e) is not submitted by the date specified in 
     paragraph (3) of that subsection, funds may not be used under 
     subsection (a) in such fiscal year during the period--
       (1) beginning on the date specified in paragraph (3) of 
     subsection (e); and
       (2) ending on the date of the submittal of the report under 
     paragraph (1) of subsection (e).
       (e) Annual Report.--
       (1) In general.--Each fiscal year, the Assistant Secretary 
     of the Army for Acquisition, Logistics, and Technology, in 
     consultation with the Assistant Secretary of the Army for 
     Financial Management and Comptroller, shall submit to the 
     congressional defense committees a report on the use of the 
     authority in subsection (a) during the preceding fiscal year.
       (2) Recommendation.--In the case of the report required to 
     be submitted under paragraph (1) during fiscal year 2012, the 
     report shall include the recommendation of the Assistant 
     Secretary of the Army for Acquisition, Logistics, and 
     Technology regarding whether the authority under subsection 
     (a) should be made permanent.
       (3) Deadline for submittal.--The report required by 
     paragraph (1) in a fiscal year shall be submitted not later 
     than 60 days after the date of the submittal to Congress of 
     the budget of the President for the succeeding fiscal year 
     pursuant to section 1105 of title 31, United States Code.
       (f) Sunset.--The authority under subsection (a) shall 
     expire on October 1, 2013.
              Subtitle D--Extension of Program Authorities

     SEC. 341. EXTENSION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

       Section 343 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (10 U.S.C. 4551 note) 
     is amended--
       (1) in subsection (a), by striking ``2008'' and inserting 
     ``2010''; and
       (2) in subsection (g)(1), by striking ``2008'' and 
     inserting ``2010''.

     SEC. 342. EXTENSION OF PERIOD FOR REIMBURSEMENT FOR HELMET 
                   PADS PURCHASED BY MEMBERS OF THE ARMED FORCES 
                   DEPLOYED IN CONTINGENCY OPERATIONS.

       (a) Extension.--Section 351 of the Ronald W. Reagan 
     National Defense Authorization Act for Fiscal Year 2005 
     (Public Law 108-375; 118 Stat. 1857) is amended--
       (1) in subsection (a)(3), by inserting before the period at 
     the end the following: ``, or in the case of protective 
     helmet pads purchased by a member from a qualified vendor for 
     that member's personal use, ending on September 30, 2007'';
       (2) in subsection (c)--
       (A) by inserting after ``Armed Forces'' the following: 
     ``shall comply with regular Department of Defense procedures 
     for the submission of claims and''; and
       (B) by inserting before the period at the end the 
     following: ``or one year after the date on which the purchase 
     of the protective, safety, or health equipment was made, 
     whichever occurs last''; and
       (3) in subsection (d), by adding at the end the following 
     new sentence: ``Subsection (a)(1) shall not apply in the case 
     of the purchase of protective helmet pads on behalf of a 
     member.''.
       (b) Funding.--Amounts for reimbursements made under section 
     351 of the Ronald W. Reagan National Defense Authorization 
     Act for Fiscal Year 2005 after the date of the enactment of 
     this Act shall be derived from supplemental appropriations 
     for the Department of Defense for fiscal year 2008, 
     contingent upon such appropriations being enacted.

     SEC. 343. EXTENSION OF TEMPORARY AUTHORITY FOR CONTRACT 
                   PERFORMANCE OF SECURITY GUARD FUNCTIONS.

       (a) Extension.--Subsection (c) of section 332 of the Bob 
     Stump National Defense Authorization Act for Fiscal Year 2003 
     (Public Law 107-314) is amended by striking ``September 30, 
     2009'' both places it appears and inserting ``September 30, 
     2012''.
       (b) Limitation for Fiscal Years 2010 Through 2012.--
     Subsection (d) of such section is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period and inserting 
     a semicolon; and
       (3) by adding at the end the following new paragraphs:
       ``(4) for fiscal year 2010, the number equal to 70 percent 
     of the total number of such personnel employed under such 
     contracts on October 1, 2006;
       ``(5) for fiscal year 2011, the number equal to 60 percent 
     of the total number of such personnel employed under such 
     contracts on October 1, 2006; and
       ``(6) for fiscal year 2012, the number equal to 50 percent 
     of the total number of such personnel employed under such 
     contracts on October 1, 2006.''.
                          Subtitle E--Reports

     SEC. 351. REPORTS ON NATIONAL GUARD READINESS FOR EMERGENCIES 
                   AND MAJOR DISASTERS.

       (a) Annual Reports on Equipment.--Section 10541(b) of title 
     10, United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(9) An assessment of the extent to which the National 
     Guard possesses the equipment required to perform the 
     responsibilities of the National Guard pursuant to sections 
     331, 332, 333, 12304(b), and 12406 of this title in response 
     to an emergency or major disaster (as such terms are defined 
     in section 102 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5122)). Such assessment 
     shall--
       ``(A) identify any shortfall in equipment provided to the 
     National Guard by the Department of Defense throughout the 
     United States and the territories and possessions of the 
     United States that is likely to affect the ability of the 
     National Guard to perform such responsibilities;
       ``(B) evaluate the effect of any such shortfall on the 
     capacity of the National Guard to perform such 
     responsibilities in response an emergency or major disaster 
     that occurs in the United States or a territory or possession 
     of the United States; and
       ``(C) identify the requirements and investment strategies 
     for equipment provided to the National Guard by the 
     Department of Defense that are necessary to plan for a 
     reduction or elimination of any such shortfall.''.
       (b) Inclusion of Assessment of National Guard Readiness in 
     Quarterly Personnel and Unit Readiness Report.--Section 482 
     of such title is amended--
       (1) in subsection (a), by striking ``and (e)'' and 
     inserting ``(e), and (f)'';
       (2) by redesignating subsection (f) as subsection (g); and
       (3) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f) Readiness of National Guard To Perform Civil Support 
     Missions.--(1) Each report shall also include an assessment 
     of the readiness of the National Guard to perform tasks 
     required to support the National Response Plan for support to 
     civil authorities.
       ``(2) Any information in an assessment under this 
     subsection that is relevant to the National Guard of a 
     particular State shall also be made available to the Governor 
     of that State.
       ``(3) The Secretary shall ensure that each State Governor 
     has an opportunity to provide to the Secretary an independent 
     evaluation of that State's National Guard, which the 
     Secretary shall include with each assessment submitted under 
     this subsection.''.
       (c) Effective Date.--
       (1) Annual report on national guard and reserve component 
     equipment.--The amendment made by subsection (a) shall apply 
     with respect to reports submitted after the date of the 
     enactment of this Act.
       (2) Quarterly reports on personnel and unit readiness.--The 
     amendment made by subsection (b) shall apply with respect to 
     the quarterly report required under section 482 of title 10, 
     United States Code, for the second quarter of fiscal year 
     2009 and each subsequent report required under that section.
       (d) Report on Implementation.--
       (1) In general.--As part of the budget justification 
     materials submitted to Congress in support of the budget of 
     the President for each of fiscal years 2009 and 2010 (as 
     submitted under section 1105 of title 31, United States 
     Code), the Secretary of Defense shall submit to the 
     congressional defense committees a report on actions taken by 
     the Secretary to implement the amendments made by this 
     section.
       (2) Elements.--Each report required under paragraph (1) 
     shall include a description of the mechanisms to be utilized 
     by the Secretary for assessing the personnel, equipment, and 
     training readiness of the National Guard, including the 
     standards and measures that will be applied and mechanisms 
     for sharing information on such matters with the Governors of 
     the States.

     SEC. 352. ANNUAL REPORT ON PREPOSITIONED MATERIEL AND 
                   EQUIPMENT.

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

     ``Sec. 2229a. Annual report on prepositioned materiel and 
       equipment

       ``(a) Annual Report Required.--Not later than the date of 
     the submission of the President's budget request for a fiscal 
     year under section 1105 of title 31, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     on the status of the materiel in

[[Page 32537]]

     the prepositioned stocks as of the end of the fiscal year 
     preceding the fiscal year during which the report is 
     submitted. Each report shall be unclassified and may contain 
     a classified annex. Each report shall include the following 
     information:
       ``(1) The level of fill for major end items of equipment 
     and spare parts in each prepositioned set as of the end of 
     the fiscal year covered by the report.
       ``(2) The material condition of equipment in the 
     prepositioned stocks as of the end of such fiscal year, 
     grouped by category or major end item.
       ``(3) A list of major end items of equipment drawn from the 
     prepositioned stocks during such fiscal year and a 
     description of how that equipment was used and whether it was 
     returned to the stocks after being used.
       ``(4) A timeline for completely reconstituting any 
     shortfall in the prepositioned stocks.
       ``(5) An estimate of the amount of funds required to 
     completely reconstitute any shortfall in the prepositioned 
     stocks and a description of the Secretary's plan for carrying 
     out such complete reconstitution.
       ``(6) A list of any operations plan affected by any 
     shortfall in the prepositioned stocks and a description of 
     any action taken to mitigate any risk that such a shortfall 
     may create.
       ``(b) Comptroller General Review.--(1) By not later than 
     120 days after the date on which a report is submitted under 
     subsection (a), the Comptroller General shall review the 
     report and, as the Comptroller General determines 
     appropriate, submit to the congressional defense committees 
     any additional information that the Comptroller General 
     determines will further inform such committees on issues 
     relating to the status of the materiel in the prepositioned 
     stocks.
       ``(2) The Secretary of Defense shall ensure the full 
     cooperation of the Department of Defense with the Comptroller 
     General for purposes of the conduct of the review required by 
     this subsection, both before and after each report is 
     submitted under subsection (a). The Secretary shall conduct 
     periodic briefings for the Comptroller General on the 
     information covered by each report required under subsection 
     (a) and provide to the Comptroller General access to the data 
     and preliminary results to be used by the Secretary in 
     preparing each such report before the Secretary submits the 
     report to enable the Comptroller General to conduct each 
     review required under paragraph (1) in a timely manner.
       ``(3) The requirement to conduct a review under this 
     subsection shall terminate on September 30, 2015.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2229a. Annual report on prepositioned materiel and equipment.''.

     SEC. 353. REPORT ON INCREMENTAL COST OF EARLY 2007 ENHANCED 
                   DEPLOYMENT.

       Section 323(b)(2) of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364; 
     120 Stat. 2146; 10 U.S.C. 229 note) is amended--
       (1) in subparagraph (A), by striking ``; and'' and 
     inserting a semicolon;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(C) each of the military departments for the incremental 
     changes in reset costs resulting from the deployment and 
     redeployment of forces to Iraq and Afghanistan above the 
     levels deployed to such countries on January 1, 2007.''.

     SEC. 354. MODIFICATION OF REQUIREMENTS OF COMPTROLLER GENERAL 
                   REPORT ON THE READINESS OF ARMY AND MARINE 
                   CORPS GROUND FORCES.

       (a) Submittal Date.--Subsection (a)(1) of section 345 of 
     the John Warner National Defense Authorization Act for Fiscal 
     Year 2007 (Public Law 109-364; 120 Stat. 2156) is amended by 
     striking ``June 1, 2007'' and inserting ``June 1, 2008''.
       (b) Elements.--Subsection (b) of such section is amended--
       (1) by striking paragraph (2);
       (2) by redesignating paragraphs (3) through (7) as 
     paragraphs (4) through (8), respectively; and
       (3) by inserting after paragraph (1) the following new 
     paragraphs:
       ``(2) An assessment of the ability of the Army and Marine 
     Corps to provide trained and ready forces to meet the 
     requirements of increased force levels in support of 
     Operation Iraqi Freedom and Operation Enduring Freedom above 
     such force levels in effect on January 1, 2007, and to meet 
     the requirements of other ongoing operations simultaneously 
     with such increased force levels.
       ``(3) An assessment of the strategic depth of the Army and 
     Marine Corps and their ability to provide trained and ready 
     forces to meet the requirements of the high-priority 
     contingency war plans of the regional combatant commands, 
     including an identification and evaluation for each such plan 
     of--
       ``(A) the strategic and operational risks associated with 
     current and projected forces of current and projected 
     readiness;
       ``(B) the time required to make forces available and 
     prepare them for deployment; and
       ``(C) likely strategic tradeoffs necessary to meet the 
     requirements of each such plan.''.
       (c) Department of Defense Cooperation.--Such section is 
     further amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Department of Defense Cooperation.--The Secretary of 
     Defense shall ensure the full cooperation of the Department 
     of Defense with the Comptroller General for purposes of the 
     preparation of the report required by this section.''.

     SEC. 355. PLAN TO IMPROVE READINESS OF GROUND FORCES OF 
                   ACTIVE AND RESERVE COMPONENTS.

       (a) Report Required.--At the same time that the budget is 
     submitted under section 1105(a) of title 31, United States 
     Code, for a fiscal year, the Secretary of Defense shall 
     submit to the congressional defense committees a report on 
     improving the readiness of the ground forces of active and 
     reserve components of the Armed Forces. Each such report 
     shall include--
       (1) a summary of the readiness of each reporting unit of 
     the ground forces of the active and reserve components and a 
     summary of the readiness of each major combat unit of each 
     Armed Force by readiness level;
       (2) an identification of the extent to which the actual 
     readiness ratings of the active and reserve components of the 
     Armed Forces have been upgraded based on the judgment of 
     commanders and any efforts of the Secretary of Defense to 
     analyze the trends and implications of such upgrades;
       (3) the goals of the Secretary of Defense for managing the 
     readiness of the ground forces of the active and reserve 
     components, expressed in terms of the number of units or 
     percentage of the force that the Secretary plans to maintain 
     at each level of readiness, and the Secretary's projected 
     timeframe for achieving each such goal;
       (4) a prioritized list of items and actions to be 
     accomplished during the fiscal year during which the report 
     is submitted, and during the fiscal years covered by the 
     future-years defense program, that the Secretary of Defense 
     believes are necessary to significantly improve the readiness 
     of the ground forces of the active and reserve components and 
     achieve the goals and timeframes described in paragraph (3); 
     and
       (5) a detailed investment strategy and plan for each fiscal 
     year covered by the future-years defense program under 
     section 221 of title 10, United States Code, that is 
     submitted during the fiscal year in which the report is 
     submitted, that outlines the resources required to improve 
     the readiness of the ground forces of the active and reserve 
     components, including a description of how each resource 
     identified in such plan relates to funding requested by the 
     Secretary in the Secretary's annual budget, and how each such 
     resource will specifically enable the Secretary to achieve 
     the readiness goals described in paragraph (3) within the 
     projected timeframes.
       (b) Comptroller General Review.--By not later than 60 days 
     after the date on which a report is submitted under 
     subsection (a), the Comptroller General shall review the 
     report and, as the Comptroller General determines 
     appropriate, submit to the congressional defense committees 
     any additional information that the Comptroller General 
     determines will further inform the congressional defense 
     committees on issues relating to the readiness of the ground 
     forces of the active and reserve components of the Armed 
     Forces.
       (c) Termination.--The requirement to submit a report under 
     subsection (a) shall terminate on the date the Secretary of 
     Defense submits the fifth report required under that 
     subsection.

     SEC. 356. INDEPENDENT ASSESSMENT OF CIVIL RESERVE AIR FLEET 
                   VIABILITY.

       (a) Independent Assessment Required.--The Secretary of 
     Defense shall provide for an independent assessment of the 
     viability of the Civil Reserve Air Fleet to be conducted by a 
     federally-funded research and development center selected by 
     the Secretary.
       (b) Contents of Assessment.--The assessment required by 
     subsection (a) shall include each of the following:
       (1) An assessment of the Civil Reserve Air Fleet as of the 
     date of the enactment of this Act, including an assessment 
     of--
       (A) the level of increased use of commercial assets to 
     fulfill Department of Defense transportation requirements as 
     a result of the increased global mobility requirements in 
     response to the terrorist attacks of September 11, 2001;
       (B) the extent of charter air carrier participation in 
     fulfilling increased Department of Defense transportation 
     requirements as a result of the increased global mobility 
     requirements in response to the terrorist attacks of 
     September 11, 2001;
       (C) any policy of the Secretary of Defense to limit the 
     percentage of income a single air carrier participating in 
     the Civil Reserve Air Fleet may earn under contracts with the 
     Secretary during any calendar year and the effects of such 
     policy on the air carrier industry in peacetime and during 
     periods during which the Armed Forces are deployed in support 
     of a contingency operation for which the Civil Reserve Air 
     Fleet is not activated; and
       (D) any risks to the charter air carrier industry as a 
     result of the expansion of the industry in response to 
     contingency operations resulting in increased demand by the 
     Department of Defense.
       (2) A strategic assessment of the viability of the Civil 
     Reserve Air Fleet that compares such viability as of the date 
     of the enactment of this Act with the projected viability of 
     the Civil Reserve Air Fleet five, ten, and 15 years after the 
     date of the enactment of this Act, including for activations 
     at each of stages 1, 2, and 3--

[[Page 32538]]

       (A) an examination of the requirements of the Department of 
     Defense for the Civil Reserve Air Fleet for the support of 
     operational and contingency plans, including any anticipated 
     changes in the Department's organic airlift capacity, 
     logistics concepts, and personnel and training requirements;
       (B) an assessment of air carrier participation in the Civil 
     Reserve Air Fleet; and
       (C) a comparison between the requirements of the Department 
     described in subparagraph (A) and air carrier participation 
     described in subparagraph (B).
       (3) An examination of any perceived barriers to Civil 
     Reserve Air Fleet viability, including--
       (A) the operational planning system of the Civil Reserve 
     Air Fleet;
       (B) the reward system of the Civil Reserve Air Fleet;
       (C) the long-term affordability of the Aviation War Risk 
     Insurance Program;
       (D) the effect on United States air carriers operating 
     overseas routes during periods of Civil Reserve Air Fleet 
     activation;
       (E) increased foreign ownership of United States air 
     carriers;
       (F) increased operational costs during activation as a 
     result of hazardous duty pay, routing delays, and 
     inefficiencies in cargo handling by the Department of 
     Defense;
       (G) the effect of policy initiatives by the Secretary of 
     Transportation to encourage international code sharing and 
     alliances; and
       (H) the effect of limitations imposed by the Secretary of 
     Defense to limit commercial shipping options for certain 
     routes and package sizes.
       (4) Recommendations for improving the Civil Reserve Air 
     Fleet program, including an assessment of potential 
     incentives for increasing participation in the Civil Reserve 
     Air Fleet program, including establishing a minimum annual 
     purchase amount during peacetime.
       (c) Submission to Congress.--Upon the completion of the 
     assessment required under subsection (a) and by not later 
     than April 1, 2008, the Secretary shall submit to the 
     congressional defense committees a report on the assessment.
       (d) Comptroller General Report.--Not later than 90 days 
     after the report is submitted under subsection (c), the 
     Comptroller General shall conduct a review of the assessment 
     required under subsection (a).

     SEC. 357. DEPARTMENT OF DEFENSE INSPECTOR GENERAL REPORT ON 
                   PHYSICAL SECURITY OF DEPARTMENT OF DEFENSE 
                   INSTALLATIONS.

       (a) Report.--Not later than one year after the date of the 
     enactment of this Act, the Inspector General of the 
     Department of Defense shall submit to Congress a report on 
     the physical security of Department of Defense installations 
     and resources.
       (b) Elements.--The report required by subsection (a) shall 
     include the following:
       (1) An analysis of the progress in implementing 
     requirements under the Physical Security Program as set forth 
     in the Department of Defense Instruction 5200.08-R, Chapter 2 
     (C.2) and Chapter 3, Section 3: Installation Access (C3.3), 
     which mandates the policies and minimum standards for the 
     physical security of Department of Defense installations and 
     resources.
       (2) Recommendations based on the findings of the 
     Comptroller General of the United States in the report 
     required by section 344 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-366; 
     120 Stat. 2155).
       (3) Recommendations based on the lessons learned from the 
     thwarted plot to attack Fort Dix, New Jersey, in 2007.

     SEC. 358. REVIEW OF HIGH-ALTITUDE AVIATION TRAINING.

       (a) Review Required.--The Secretary of the Defense shall 
     conduct a review of the training requirements of the 
     Department of Defense for helicopter operations in high-
     altitude or power-limited conditions.
       (b) Content.--The review required under subsection (a) 
     shall include an examination of--
       (1) power-management and high-altitude training 
     requirements by military department, helicopter, and crew 
     position;
       (2) training methods and locations currently used by each 
     of the military departments to fulfill those training 
     requirements;
       (3) department or service regulations that prohibit or 
     inhibit joint-service or inter-service high-altitude aviation 
     training;
       (4) costs for each of the previous five years associated 
     with transporting aircraft to and from the High-Altitude 
     Aviation Training Site, Gypsum, Colorado, for training 
     purposes;
       (5) potential risk avoidance and reductions in accident 
     rates due to power management if training of the type offered 
     at the High-Altitude Aviation Training Site was required 
     training, rather than optional training; and
       (6) potential cost savings and operational benefits, if 
     any, of permanently stationing no less than 4 UH-60, 2 CH-47, 
     and 2 LUH-72 aircraft at the High-Altitude Aviation Training 
     Site, Gypsum, Colorado.
       (c) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary shall submit to the 
     congressional defense committees a report on the conduct and 
     findings of the review required under subsection (a) along 
     with a summary of changes to policy, regulation, or asset 
     allocation necessary to ensure that Department of Defense 
     helicopter aircrews are adequately trained in high-altitude 
     or power-limited flying conditions prior to being exposed to 
     such conditions operationally.

     SEC. 359. REPORTS ON SAFETY MEASURES AND ENCROACHMENT ISSUES 
                   AND MASTER PLAN FOR WARREN GROVE GUNNERY RANGE, 
                   NEW JERSEY.

       (a) Annual Report on Safety Measures.--Not later than March 
     1, 2008, and annually thereafter for two additional years, 
     the Secretary of the Air Force shall submit to the 
     congressional defense committees a report on efforts made by 
     all of the military departments utilizing the Warren Grove 
     Gunnery Range, New Jersey, to provide the highest level of 
     safety.
       (b) Master Plan for Warren Grove Gunnery Range.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of the Air Force 
     shall submit to the congressional defense committees a master 
     plan for Warren Grove Gunnery Range.
       (2) Content.--The master plan required under paragraph (1) 
     shall include measures to mitigate encroachment of the Warren 
     Grove Gunnery Range, taking into consideration military 
     mission requirements, land use plans, the surrounding 
     community, the economy of the region, and protection of the 
     environment and public health, safety, and welfare.
       (3) Input.--In establishing the master plan required under 
     paragraph (1), the Secretary shall seek input from relevant 
     stakeholders at the Federal, State, and local level.

     SEC. 360. REPORT ON SEARCH AND RESCUE CAPABILITIES OF THE AIR 
                   FORCE IN THE NORTHWESTERN UNITED STATES.

       (a) Report.--Not later than April 1, 2008, the Secretary of 
     the Air Force shall submit to the appropriate congressional 
     committees a report on the search and rescue capabilities of 
     the Air Force in the northwestern United States.
       (b) Content.--The report required under subsection (a) 
     shall include the following:
       (1) An assessment of the search and rescue capabilities 
     required to support Air Force operations and training.
       (2) A description of the compliance of the Air Force with 
     the 1999 United States National Search and Rescue Plan 
     (referred to hereinafter in this section as the ``NSRP'') for 
     Washington, Oregon, Idaho, and Montana.
       (3) An inventory and description of the search and rescue 
     assets of the Air Force that are available to meet the 
     requirements of the NSRP.
       (4) A description of the use of such search and rescue 
     assets during the three-year period preceding the date when 
     the report is submitted.
       (5) The plans of the Air Force to meet current and future 
     search and rescue requirements in the northwestern United 
     States, including plans that take into consideration 
     requirements related to support for both Air Force operations 
     and training and compliance with the NSRP.
       (6) An inventory of other search and rescue capabilities 
     equivalent to such capabilities provided by the Air Force 
     that may be provided by other Federal, State, or local 
     agencies in the northwestern United States.
       (c) Use of Report for Purposes of Certification Regarding 
     Search and Rescue Capabilities.--Section 1085 of the Ronald 
     W. Reagan National Defense Authorization Act for Fiscal Year 
     2005 (Public Law 108-375; 118 Stat. 2065; 10 U.S.C. 113 note) 
     is amended by striking ``unless the Secretary first 
     certifies'' and inserting ``unless the Secretary, after 
     reviewing the search and rescue capabilities report prepared 
     by the Secretary of the Air Force under subsection (a), first 
     certifies''.
       (d) Appropriate Congressional Committees Defined.--In this 
     section, the term ``appropriate congressional committees'' 
     means--
       (1) the Committee on Armed Services, the Committee on 
     Homeland Security and Governmental Affairs, the Committee on 
     Commerce, Science, and Transportation, the Committee on 
     Energy and Natural Resources, and the Committee on 
     Appropriations of the Senate; and
       (2) the Committee on Armed Services, the Committee on 
     Homeland Security, the Committee on Energy and Commerce, the 
     Committee on Natural Resources, and the Committee on 
     Appropriations of the House of Representatives.

     SEC. 361. REPORT AND MASTER INFRASTRUCTURE RECAPITALIZATION 
                   PLAN FOR CHEYENNE MOUNTAIN AIR STATION, 
                   COLORADO.

       (a) Report on Relocation of North American Aerospace 
     Defense Command Center.--
       (1) In general.--Not later than March 1, 2008, the 
     Secretary of Defense shall submit to Congress a report on the 
     relocation of the North American Aerospace Defense Command 
     center and related functions from Cheyenne Mountain Air 
     Station, Colorado, to Peterson Air Force Base, Colorado.
       (2) Content.--The report required under paragraph (1) shall 
     include--
       (A) an analysis comparing the total costs associated with 
     the relocation, including costs determined as part of ongoing 
     security-related studies of the relocation, to anticipated 
     operational benefits from the relocation;
       (B) a detailed explanation of the backup functions that 
     will remain located at Cheyenne Mountain Air Station, and how 
     such functions planned to be transferred out of Cheyenne 
     Mountain Air Station, including the Space Operations Center, 
     will maintain operational connectivity with their related 
     commands and relevant communications centers;
       (C) the final plans for the relocation of the North 
     American Aerospace Defense Command center and related 
     functions; and
       (D) the findings and recommendations of an independent 
     security and vulnerability assessment of Peterson Air Force 
     Base carried out by Sandia National Laboratory for the United 
     States Air Force Space Command and the Secretary's plans for 
     mitigating any security and vulnerability risks identified as 
     part of that assessment and associated cost and schedule 
     estimates.

[[Page 32539]]

       (b) Limitation on Availability of Funds Pending Receipt of 
     Report.--Of the funds appropriated pursuant to an 
     authorization of appropriations or otherwise made available 
     for fiscal year 2008 for operation and maintenance for the 
     Air Force that are available for the Cheyenne Mountain 
     Transformation project, $5,000,000 may not be obligated or 
     expended until Congress receives the report required under 
     subsection (a).
       (c) Comptroller General Review.--Not later than 120 days 
     after the date on which the Secretary of Defense submits the 
     report required under subsection (a), the Comptroller General 
     shall submit to Congress a review of the report and the final 
     plans of the Secretary for the relocation of the North 
     American Aerospace Defense Command center and related 
     functions.
       (d) Master Infrastructure Recapitalization Plan.--
       (1) In general.--Not later than March 16, 2008, the 
     Secretary of the Air Force shall submit to Congress a master 
     infrastructure recapitalization plan for Cheyenne Mountain 
     Air Station.
       (2) Content.--The plan required under paragraph (1) shall 
     include--
       (A) a description of the projects that are needed to 
     improve the infrastructure required for supporting missions 
     associated with Cheyenne Mountain Air Station; and
       (B) a funding plan explaining the expected timetable for 
     the Air Force to support such projects.
                       Subtitle F--Other Matters

     SEC. 371. ENHANCEMENT OF CORROSION CONTROL AND PREVENTION 
                   FUNCTIONS WITHIN DEPARTMENT OF DEFENSE.

       (a) Office of Corrosion Policy and Oversight.--
       (1) In general.--Section 2228 of title 10, United States 
     Code, is amended by striking the section heading and 
     subsection (a) and inserting the following:

     ``Sec. 2228. Office of Corrosion Policy and Oversight

       ``(a) Office and Director.--(1) There is an Office of 
     Corrosion Policy and Oversight within the Office of the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics.
       ``(2) The Office shall be headed by a Director of Corrosion 
     Policy and Oversight, who shall be assigned to such position 
     by the Under Secretary from among civilian employees of the 
     Department of Defense with the qualifications described in 
     paragraph (3). The Director is responsible in the Department 
     of Defense to the Secretary of Defense (after the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics) for the prevention and mitigation of corrosion of 
     the military equipment and infrastructure of the Department 
     of Defense. The Director shall report directly to the Under 
     Secretary.
       ``(3) In order to qualify to be assigned to the position of 
     Director, an individual shall--
       ``(A) have management expertise in, and professional 
     experience with, corrosion project and policy implementation, 
     including an understanding of the effects of corrosion 
     policies on infrastructure; research, development, test, and 
     evaluation; and maintenance; and
       ``(B) have an understanding of Department of Defense budget 
     formulation and execution, policy formulation, and planning 
     and program requirements.
       ``(4) The Secretary of Defense shall designate the position 
     of Director as a critical acquisition position under section 
     1733(b)(1)(C) of this title.''.
       (2) Conforming amendments.--Section 2228(b) of such title 
     is amended--
       (A) in paragraph (1), by striking ``official or 
     organization designated under subsection (a)'' and inserting 
     ``Director of Corrosion Policy and Oversight (in this section 
     referred to as the `Director')''; and
       (B) in paragraphs (2), (3), (4), and (5), by striking 
     ``designated official or organization'' and inserting 
     ``Director''.
       (b) Additional Authority for Director of Office.--Section 
     2228 of such title is further amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (d) and (f), respectively; and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Additional Authorities for Director.--The Director is 
     authorized to--
       ``(1) develop, update, and coordinate corrosion training 
     with the Defense Acquisition University;
       ``(2) participate in the process within the Department of 
     Defense for the development of relevant directives and 
     instructions; and
       ``(3) interact directly with the corrosion prevention 
     industry, trade associations, other government corrosion 
     prevention agencies, academic research and educational 
     institutions, and scientific organizations engaged in 
     corrosion prevention, including the National Academy of 
     Sciences.''.
       (c) Inclusion of Cooperative Research Agreements as Part of 
     Corrosion Reduction Strategy.--Subsection (d)(2)(D) of 
     section 2228 of such title, as redesignated by subsection 
     (b), is amended by inserting after ``operational strategies'' 
     the following: ``, including through the establishment of 
     memoranda of agreement, joint funding agreements, public-
     private partnerships, university research and education 
     centers, and other cooperative research agreements''.
       (d) Report Requirement.--Section 2228 of such title is 
     further amended by inserting after subsection (d) (as 
     redesignated by subsection (b)) the following new subsection:
       ``(e) Report.--(1) For each budget for a fiscal year, 
     beginning with the budget for fiscal year 2009, the Secretary 
     of Defense shall submit, with the defense budget materials, a 
     report on the following:
       ``(A) Funding requirements for the long-term strategy 
     developed under subsection (d).
       ``(B) The return on investment that would be achieved by 
     implementing the strategy.
       ``(C) The funds requested in the budget compared to the 
     funding requirements.
       ``(D) An explanation if the funding requirements are not 
     fully funded in the budget.
       ``(2) Within 60 days after submission of the budget for a 
     fiscal year, the Comptroller General shall provide to the 
     congressional defense committees--
       ``(A) an analysis of the budget submission for corrosion 
     control and prevention by the Department of Defense; and
       ``(B) an analysis of the report required under paragraph 
     (1).''.
       (e) Definitions.--Subsection (f) of section 2228 of such 
     title, as redesignated by subsection (b), is amended by 
     adding at the end the following new paragraphs:
       ``(4) 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.
       ``(5) 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.''.
       (f) Clerical Amendment.--The table of sections at the 
     beginning of chapter 131 of such title is amended by striking 
     the item relating to section 2228 and inserting the following 
     new item:

``2228. Office of Corrosion Policy and Oversight.''.

     SEC. 372. AUTHORITY FOR DEPARTMENT OF DEFENSE TO PROVIDE 
                   SUPPORT FOR CERTAIN SPORTING EVENTS.

       (a) Provision of Support.--Section 2564 of title 10, United 
     States Code, is amended--
       (1) in subsection (c), by adding at the end the following 
     new paragraphs:
       ``(4) A sporting event sanctioned by the United States 
     Olympic Committee through the Paralympic Military Program.
       ``(5) Any national or international paralympic sporting 
     event (other than a sporting event described in paragraphs 
     (1) through (4))--
       ``(A) that--
       ``(i) is held in the United States or any of its 
     territories or commonwealths;
       ``(ii) is governed by the International Paralympic 
     Committee; and
       ``(iii) is sanctioned by the United States Olympic 
     Committee;
       ``(B) for which participation exceeds 100 amateur athletes; 
     and
       ``(C) in which at least 10 percent of the athletes 
     participating in the sporting event are members or former 
     members of the armed forces who are participating in the 
     sporting event based upon an injury or wound incurred in the 
     line of duty in the armed force and veterans who are 
     participating in the sporting event based upon a service-
     connected disability.''; and
       (2) by adding at the end the following new subsection:
       ``(g) Funding for Support of Certain Events.--(1) Amounts 
     for the provision of support for a sporting event described 
     in paragraph (4) or (5) of subsection (c) may be derived from 
     the Support for International Sporting Competitions, Defense 
     account established by section 5802 of the Omnibus 
     Consolidated Appropriations Act, 1997 (Public Law 104-208; 10 
     U.S.C. 2564 note), notwithstanding any limitation under that 
     section relating to the availability of funds in such account 
     for the provision of support for international sporting 
     competitions.
       ``(2) The total amount expended for any fiscal year to 
     provide support for sporting events described in subsection 
     (c)(5) may not exceed $1,000,000.''.
       (b) Source of Funds.--Section 5802 of the Omnibus 
     Consolidated Appropriations Act, 1997 (Public Law 104-208; 10 
     U.S.C. 2564 note) is amended--
       (1) by inserting after ``international sporting 
     competitions'' the following: ``and for support of sporting 
     competitions authorized under section 2564(c)(4) and (5), of 
     title 10, United States Code,''; and
       (2) by striking ``45 days'' and inserting ``15 days''.

     SEC. 373. AUTHORITY TO IMPOSE REASONABLE RESTRICTIONS ON 
                   PAYMENT OF FULL REPLACEMENT VALUE FOR LOST OR 
                   DAMAGED PERSONAL PROPERTY TRANSPORTED AT 
                   GOVERNMENT EXPENSE.

       Section 2636a(d) of title 10, United States Code, is 
     amended by adding at the end the following new sentence: 
     ``The regulations may include a requirement that a member of 
     the armed forces or civilian employee of the Department of 
     Defense comply with reasonable restrictions or conditions 
     prescribed by the Secretary in order to receive the full 
     amount deducted under subsection (b).''.

     SEC. 374. PRIORITY TRANSPORTATION ON DEPARTMENT OF DEFENSE 
                   AIRCRAFT OF RETIRED MEMBERS RESIDING IN 
                   COMMONWEALTHS AND POSSESSIONS OF THE UNITED 
                   STATES FOR CERTAIN HEALTH CARE SERVICES.

       (a) Availability of Transportation.--Chapter 157 of title 
     10, United States Code, is amended by inserting after section 
     2641a the following new section:

     ``Sec. 2641b. Space-available travel on Department of Defense 
       aircraft: retired members residing in Commonwealths and 
       possessions of the United States for certain health care 
       services

       ``(a) Priority Transportation.--The Secretary of Defense 
     shall provide transportation

[[Page 32540]]

     on Department of Defense aircraft on a space-available basis 
     for any member or former member of the uniformed services 
     described in subsection (b), and a single dependent of the 
     member if needed to accompany the member, at a priority level 
     in the same category as the priority level for an 
     unaccompanied dependent over the age of 18 traveling on 
     environmental and morale leave.
       ``(b) Eligible Members and Former Members.--A member or 
     former member eligible for priority transport under 
     subsection (a) is a covered beneficiary under chapter 55 of 
     this title who--
       ``(1) is entitled to retired or retainer pay;
       ``(2) resides in or is located in a Commonwealth or 
     possession of the United States; and
       ``(3) is referred by a military or civilian primary care 
     provider located in that Commonwealth or possession to a 
     specialty care provider for services to be provided outside 
     of that Commonwealth or possession.
       ``(c) Scope of Priority.--The increased priority for space-
     available transportation required by subsection (a) applies 
     with respect to both--
       ``(1) the travel from the Commonwealth or possession of the 
     United States to receive the specialty care services; and
       ``(2) the return travel.
       ``(d) Definitions.--In this section, the terms `primary 
     care provider' and `specialty care provider' refer to a 
     medical or dental professional who provides health care 
     services under chapter 55 of this title.
       ``(e) Regulations.--The Secretary of Defense shall 
     prescribe regulations to implement 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 2641a the following new item:

``2641b. Space-available travel on Department of Defense aircraft: 
              retired members residing in Commonwealths and possessions 
              of the United States for certain health care services.''.

     SEC. 375. RECOVERY OF MISSING MILITARY PROPERTY.

       (a) In General.--Chapter 165 of title 10, United States 
     Code, is amended by adding at the end the following new 
     sections:

     ``Sec. 2788. Property accountability: regulations

       ``The Secretary of a military department may prescribe 
     regulations for the accounting for the property of that 
     department and the fixing of responsibility for that 
     property.

     ``Sec. 2789. Individual equipment: unauthorized disposition

       ``(a) Prohibition.--No member of the armed forces may sell, 
     lend, pledge, barter, or give any clothing, arms, or 
     equipment furnished to such member by the United States to 
     any person other than a member of the armed forces or an 
     officer of the United States who is authorized to receive it.
       ``(b) Seizure of Improperly Disposed Property.--If a member 
     of the armed forces has disposed of property in violation of 
     subsection (a) and the property is in the possession of a 
     person who is neither a member of the armed forces nor an 
     officer of the United States who is authorized to receive it, 
     that person has no right to or interest in the property, and 
     any civil or military officer of the United States may seize 
     the property, wherever found, subject to applicable 
     regulations. Possession of such property furnished by the 
     United States to a member of the armed forces by a person who 
     is neither a member of the armed forces, nor an officer of 
     the United States, is prima facie evidence that the property 
     has been disposed of in violation of subsection (a).
       ``(c) Delivery of Seized Property.--If an officer who 
     seizes property under subsection (b) is not authorized to 
     retain it for the United States, the officer shall deliver 
     the property to a person who is authorized to retain it.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new items:

``2788. Property accountability: regulations.
``2789. Individual equipment: unauthorized disposition.''.

       (c) Conforming Amendments.--
       (1) In general.--Such title is further amended by striking 
     the following sections:
       (A) Section 4832.
       (B) Section 4836.
       (C) Section 9832.
       (D) Section 9836.
       (2) Clerical amendments.--
       (A) Chapter 453.--The table of sections at the beginning of 
     chapter 453 of such title is amended by striking the items 
     relating to sections 4832 and 4836.
       (B) Chapter 953.--The table of sections at the beginning of 
     chapter 953 of such title is amended by striking the items 
     relating to sections 9832 and 9836.

     SEC. 376. RETENTION OF COMBAT UNIFORMS BY MEMBERS OF THE 
                   ARMED FORCES DEPLOYED IN SUPPORT OF CONTINGENCY 
                   OPERATIONS.

       (a) Retention of Combat Uniforms.--Chapter 152 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2568. Retention of combat uniforms by members deployed 
       in support of contingency operations

       ``The Secretary of a military department may authorize a 
     member of the armed forces under the jurisdiction of the 
     Secretary who has been deployed in support of a contingency 
     operation for at least 30 days to retain, after that member 
     is no longer so deployed, the combat uniform issued to that 
     member as organizational clothing and individual 
     equipment.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2568. Retention of combat uniforms by members deployed in support of 
              contingency operations.''.

     SEC. 377. ISSUE OF SERVICEABLE MATERIAL OF THE NAVY OTHER 
                   THAN TO ARMED FORCES.

       (a) In General.--Part IV of subtitle C of title 10, United 
     States Code, is amended by adding at the end the following 
     new chapter:

``CHAPTER 667--ISSUE OF SERVICEABLE MATERIAL OTHER THAN TO ARMED FORCES

``Sec.
``7911. Arms, tentage, and equipment: educational institutions not 
              maintaining units of R.O.T.C.
``7912. Rifles and ammunition for target practice: educational 
              institutions having corps of midshipmen.
``7913. Supplies: military instruction camps.

     ``Sec. 7911. Arms, tentage, and equipment: educational 
       institutions not maintaining units of R.O.T.C.

       ``Under such conditions as he may prescribe, the Secretary 
     of the Navy may issue arms, tentage, and equipment that the 
     Secretary considers necessary for proper military training, 
     to any educational institution at which no unit of the 
     Reserve Officers' Training Corps is maintained, but which has 
     a course in military training prescribed by the Secretary and 
     which has at least 50 physically fit students over 14 years 
     of age.

     ``Sec. 7912. Rifles and ammunition for target practice: 
       educational institutions having corps of midshipmen

       ``(a) Authority To Lend.--The Secretary of the Navy may 
     lend, without expense to the United States, magazine rifles 
     and appendages that are not of the existing service models in 
     use at the time and that are not necessary for a proper 
     reserve supply, to any educational institution having a 
     uniformed corps of midshipmen of sufficient number for target 
     practice. The Secretary may also issue 40 rounds of ball 
     cartridges for each midshipman for each range at which target 
     practice is held, but not more than 120 rounds each year for 
     each midshipman participating in target practice.
       ``(b) Responsibilities of Institutions.--The institutions 
     to which property is lent under subsection (a) shall--
       ``(1) use the property for target practice;
       ``(2) take proper care of the property; and
       ``(3) return the property when required.
       ``(c) Regulations.--The Secretary of the Navy shall 
     prescribe regulations to carry out this section, containing 
     such other requirements as he considers necessary to 
     safeguard the interests of the United States.

     ``Sec. 7913. Supplies: military instruction camps

       ``Under such conditions as he may prescribe, the Secretary 
     of the Navy may issue, to any educational institution at 
     which an officer of the naval service is detailed as 
     professor of naval science, such supplies as are necessary to 
     establish and maintain a camp for the military instruction of 
     its students. The Secretary shall require a bond in the value 
     of the property issued under this section, for the care and 
     safekeeping of that property and except for property properly 
     expended, for its return when required.''.
       (b) Clerical Amendment.--The table of chapters at the 
     beginning of subtitle C of such title, and the table of 
     chapters at the beginning of part IV of such subtitle, are 
     each amended by inserting after the item relating to chapter 
     665 the following new item:

``667. Issue of serviceable material other than to Armed Fo7911.''.....

     SEC. 378. REAUTHORIZATION OF AVIATION INSURANCE PROGRAM.

       Section 44310 of title 49, United States Code, is amended 
     by striking ``March 30, 2008'' and inserting ``December 31, 
     2013''.
              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 2009 and 2010.
Sec. 404. Increase in authorized strengths for Army officers on active 
              duty in the grade of major.
Sec. 405. Increase in authorized strengths for Navy officers on active 
              duty in the grades of lieutenant commander, commander, 
              and captain.
Sec. 406. Increase in authorized daily average of number of members in 
              pay grade E-9.

                       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 2008 limitation on number of non-dual status 
              technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on 
              active duty for operational support.

[[Page 32541]]

Sec. 416. Future authorizations and accounting for certain reserve 
              component personnel authorized to be on active duty or 
              full-time National Guard duty to provide operational 
              support.
Sec. 417. Revision of variances authorized for Selected Reserve end 
              strengths.

              Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.
                       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, 2008, as 
     follows:
       (1) The Army, 525,400.
       (2) The Navy, 329,098.
       (3) The Marine Corps, 189,000.
       (4) The Air Force, 329,563.
       (b) Limitation.--
       (1) Army.--The authorized strength for the Army provided in 
     paragraph (1) of subsection (a) for active duty personnel for 
     fiscal year 2008 is subject to the condition that costs of 
     active duty personnel of the Army for that fiscal year in 
     excess of 489,400 shall be paid out of funds authorized to be 
     appropriated for that fiscal year by section 1514.
       (2) Marine corps.--The authorized strength for the Marine 
     Corps provided in paragraph (3) of subsection (a) for active 
     duty personnel for fiscal year 2008 is subject to the 
     condition that costs of active duty personnel of the Marine 
     Corps for that fiscal year in excess of 180,000 shall be paid 
     out of funds authorized to be appropriated for that fiscal 
     year by section 1514.

     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 new paragraphs:
       ``(1) For the Army, 525,400.
       ``(2) For the Navy, 328,400.
       ``(3) For the Marine Corps, 189,000.
       ``(4) For the Air Force, 328,600.''.

     SEC. 403. ADDITIONAL AUTHORITY FOR INCREASES OF ARMY AND 
                   MARINE CORPS ACTIVE DUTY END STRENGTHS FOR 
                   FISCAL YEARS 2009 AND 2010.

       (a) Authority to Increase Army Active Duty End Strengths.--
     For each of fiscal years 2009 and 2010, the Secretary of 
     Defense may, as the Secretary determines necessary for the 
     purposes described in subsection (c), 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 2008 baseline plus 22,000.
       (b) Marine Corps.--For each of fiscal years 2009 and 2010, 
     the Secretary of Defense may, as the Secretary determines 
     necessary for the purposes described in subsection (c), 
     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 2008 baseline 
     plus 13,000.
       (c) Purpose of Increases.--The purposes for which increases 
     may be made in Army and Marine Corps active duty end 
     strengths under this section are--
       (1) to support operational missions; and
       (2) 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.
       (d) 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.
       (e) Relationship to Other Variance Authority.--The 
     authority under this section 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.
       (f) Budget Treatment.--
       (1) Fiscal years 2009 and 2010 budgets.--The budget for the 
     Department of Defense for fiscal years 2009 and 2010 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 this section, 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 2008 
     active duty end strength authorized for that service under 
     section 401.
       (g) Definitions.--In this section:
       (1) Fiscal-year 2008 baseline.--The term ``fiscal-year 2008 
     baseline'', with respect to the Army and Marine Corps, means 
     the active-duty end strength authorized for those services in 
     section 401.
       (2) 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.
       (h) Repeal of Other Discretionary Authority to Temporarily 
     Increase Army and Marine Corps Active Duty End Strengths.--
     Section 403 of the Ronald W. Reagan National Defense 
     Authorization Act for Fiscal Year 2005 (Public Law 108-375; 
     10 U.S.C. 115 note), as amended by section 403 of the John 
     Warner National Defense Authorization Act for Fiscal Year 
     2007 (Public Law 109-364; 120 Stat. 2169), is repealed.

     SEC. 404. INCREASE IN AUTHORIZED STRENGTHS FOR ARMY OFFICERS 
                   ON ACTIVE DUTY IN THE GRADE OF MAJOR.

       The portion of the table in section 523(a)(1) of title 10, 
     United States Code, relating to the Army is amended to read 
     as follows:


------------------------------------------------------------------------
``Total number of commissioned  Number of officers who may be serving on
 officers (excluding officers           active duty in grade of:
  in categories specified in   -----------------------------------------
   subsection (b)) on active                   Lieutenant
             duty:                  Major        Colonel       Colonel
------------------------------------------------------------------------
Army:
  20,000                              7,768         5,253         1,613
  25,000                              8,689         5,642         1,796
  30,000                              9,611         6,030         1,980
  35,000                             10,532         6,419         2,163
  40,000                             11,454         6,807         2,347
  45,000                             12,375         7,196         2,530
  50,000                             13,297         7,584         2,713
  55,000                             14,218         7,973         2,897
  60,000                             15,140         8,361         3,080
  65,000                             16,061         8,750         3,264
  70,000                             16,983         9,138         3,447
  75,000                             17,903         9,527         3,631
  80,000                             18,825         9,915         3,814
  85,000                             19,746        10,304         3,997
  90,000                             20,668        10,692         4,181
  95,000                             21,589        11,081         4,364
  100,000                            22,511        11,469         4,548
  110,000                            24,354        12,246         4,915
  120,000                            26,197        13,023         5,281
  130,000                            28,040        13,800         5,648
  170,000                            35,412        16,908         7,116
------------------------------------------------------------------------


[[Page 32542]]

     SEC. 405. INCREASE IN AUTHORIZED STRENGTHS FOR NAVY OFFICERS 
                   ON ACTIVE DUTY IN THE GRADES OF LIEUTENANT 
                   COMMANDER, COMMANDER, AND CAPTAIN.

       The table in section 523(a)(2) of title 10, United States 
     Code, is amended to read as follows:


------------------------------------------------------------------------
``Total number of commissioned  Number of officers who may be serving on
 officers (excluding officers           active duty in grade of:
  in categories specified in   -----------------------------------------
   subsection (b)) on active     Lieutenant
             duty:                Commander     Commander      Captain
------------------------------------------------------------------------
Navy:
  30,000                              7,698         5,269         2,222
  33,000                              8,189         5,501         2,334
  36,000                              8,680         5,733         2,447
  39,000                              9,172         5,965         2,559
  42,000                              9,663         6,197         2,671
  45,000                             10,155         6,429         2,784
  48,000                             10,646         6,660         2,896
  51,000                             11,136         6,889         3,007
  54,000                             11,628         7,121         3,120
  57,000                             12,118         7,352         3,232
  60,000                             12,609         7,583         3,344
  63,000                             13,100         7,813         3,457
  66,000                             13,591         8,044         3,568
  70,000                             14,245         8,352         3,718
  90,000                             17,517         9,890         4,467
------------------------------------------------------------------------

     SEC. 406. INCREASE IN AUTHORIZED DAILY AVERAGE OF NUMBER OF 
                   MEMBERS IN PAY GRADE E-9.

       Section 517(a) of title 10, United States Code, is amended 
     by striking ``1 percent'' and inserting ``1.25 percent''.
                       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, 2008, as follows:
       (1) The Army National Guard of the United States, 351,300.
       (2) The Army Reserve, 205,000.
       (3) The Navy Reserve, 67,800.
       (4) The Marine Corps Reserve, 39,600.
       (5) The Air National Guard of the United States, 106,700.
       (6) The Air Force Reserve, 67,500.
       (7) The Coast Guard Reserve, 10,000.
       (b) End Strength Reductions.--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.
       (c) End Strength Increases.--Whenever units or individual 
     members of the Selected Reserve of any reserve component 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, 2008, 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, 29,204.
       (2) The Army Reserve, 15,870.
       (3) The Navy Reserve, 11,579.
       (4) The Marine Corps Reserve, 2,261.
       (5) The Air National Guard of the United States, 13,936.
       (6) The Air Force Reserve, 2,721.

     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 2008 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, 8,249.
       (2) For the Army National Guard of the United States, 
     26,502.
       (3) For the Air Force Reserve, 9,909.
       (4) For the Air National Guard of the United States, 
     22,553.

     SEC. 414. FISCAL YEAR 2008 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, 2008, 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, 
     2008, may not exceed 595.
       (3) Air force reserve.--The number of non-dual status 
     technicians employed by the Air Force Reserve as of September 
     30, 2008, 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 2008, 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.

     SEC. 416. FUTURE AUTHORIZATIONS AND ACCOUNTING FOR CERTAIN 
                   RESERVE COMPONENT PERSONNEL AUTHORIZED TO BE ON 
                   ACTIVE DUTY OR FULL-TIME NATIONAL GUARD DUTY TO 
                   PROVIDE OPERATIONAL SUPPORT.

       (a) Review of Operational Support Missions Performed by 
     Certain Reserve Component Personnel.--
       (1) Review required.--The Secretary of Defense shall 
     conduct a review of the long-term operational support 
     missions performed by members of the reserve components 
     authorized under section 115(b) of title 10, United States 
     Code, to be on active duty or full-time National Guard duty 
     for the purpose of providing operational support, with the 
     objectives of such review being--
       (A) minimizing the number of reserve component members who 
     perform such service for a period greater than 1,095 
     consecutive days, or cumulatively for 1,095 days out of the 
     previous 1,460 days; and
       (B) determining which long-term operational support 
     missions being performed by such members would more 
     appropriately be performed by members of the Armed Forces on 
     active duty under other provisions of title 10, United States 
     Code, or by full-time support personnel of reserve 
     components.

[[Page 32543]]

       (2) Submission of results.--Not later than March 1, 2008, 
     the Secretary shall submit to Congress the results of the 
     review, including a description of the adjustments in 
     Department of Defense policy to be implemented as a result of 
     the review and such recommendations for changes in statute, 
     as the Secretary considers to be appropriate.
       (b) Improved Accounting for Reserve Component Personnel 
     Providing Operational Support.--Section 115(b) of title 10, 
     United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(4) As part of the budget justification materials 
     submitted by the Secretary of Defense to Congress in support 
     of the end strength authorizations required under 
     subparagraphs (A) and (B) of subsection (a)(1) for fiscal 
     year 2009 and each fiscal year thereafter, the Secretary 
     shall provide the following:
       ``(A) The number of members, specified by reserve 
     component, authorized under subparagraphs (A) and (B) of 
     paragraph (1) who were serving on active duty or full-time 
     National Guard duty for operational support beyond each of 
     the limits specified under subparagraphs (A) and (B) of 
     paragraph (2) at the end of the fiscal year preceding the 
     fiscal year for which the budget justification materials are 
     submitted.
       ``(B) The number of members, specified by reserve 
     component, on active duty for operational support who, at the 
     end of the fiscal year for which the budget justification 
     materials are submitted, are projected to be serving on 
     active duty or full-time National Guard duty for operational 
     support beyond such limits.
       ``(C) The number of members, specified by reserve 
     component, on active duty or full-time National Guard duty 
     for operational support who are included in, and counted 
     against, the end strength authorizations requested under 
     subparagraphs (A) and (B) of subsection (a)(1).
       ``(D) A summary of the missions being performed by members 
     identified under subparagraphs (A) and (B).''.

     SEC. 417. REVISION OF VARIANCES AUTHORIZED FOR SELECTED 
                   RESERVE END STRENGTHS.

       Section 115(f)(3) of title 10, United States Code, is 
     amended by striking ``2 percent'' and inserting ``3 
     percent''.
              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 
     2008 a total of $117,091,420,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 2008.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Assignment of officers to designated positions of importance 
              and responsibility.
Sec. 502. Enhanced authority for Reserve general and flag officers to 
              serve on active duty.
Sec. 503. Increase in years of commissioned service threshold for 
              discharge of probationary officers and for use of force 
              shaping authority.
Sec. 504. Mandatory retirement age for active-duty general and flag 
              officers continued on active duty.
Sec. 505. Authority for reduced mandatory service obligation for 
              initial appointments of officers in critically short 
              health professional specialties.
Sec. 506. Expansion of authority for reenlistment of officers in their 
              former enlisted grade.
Sec. 507. Increase in authorized number of permanent professors at the 
              United States Military Academy.
Sec. 508. Promotion of career military professors of the Navy.

                Subtitle B--Reserve Component Management

Sec. 511. Retention of military technicians who lose dual status in the 
              Selected Reserve due to combat-related disability.
Sec. 512. Constructive service credit upon original appointment of 
              Reserve officers in certain health care professions.
Sec. 513. Mandatory separation of Reserve officers in the grade of 
              lieutenant general or vice admiral after completion of 38 
              years of commissioned service.
Sec. 514. Maximum period of temporary Federal recognition of person as 
              Army National Guard officer or Air National Guard 
              officer.
Sec. 515. Advance notice to members of reserve components of deployment 
              in support of contingency operations.
Sec. 516. Report on relief from professional licensure and 
              certification requirements for reserve component members 
              on long-term active duty.

                   Subtitle C--Education and Training

Sec. 521. Revisions to authority to pay tuition for off-duty training 
              or education.
Sec. 522. Reduction or elimination of service obligation in an Army 
              Reserve or Army National Guard troop program unit for 
              certain persons selected as medical students at Uniformed 
              Services University of the Health Sciences.
Sec. 523. Repeal of annual limit on number of ROTC scholarships under 
              Army Reserve and Army National Guard financial assistance 
              program.
Sec. 524. Treatment of prior active service of members in uniformed 
              medical accession programs.
Sec. 525. Repeal of post-2007-2008 academic year prohibition on phased 
              increase in cadet strength limit at the United States 
              Military Academy.
Sec. 526. National Defense University master's degree programs.
Sec. 527. Authority of the Air University to confer degree of master of 
              science in flight test engineering.
Sec. 528. Enhancement of education benefits for certain members of 
              reserve components.
Sec. 529. Extension of period of entitlement to educational assistance 
              for certain members of the Selected Reserve affected by 
              force shaping initiatives.
Sec. 530. Time limit for use of educational assistance benefit for 
              certain members of reserve components and resumption of 
              benefit.
Sec. 531. Secretary of Defense evaluation of the adequacy of the 
              degree-granting authorities of certain military 
              universities and educational institutions.
Sec. 532. Report on success of Army National Guard and Reserve Senior 
              Reserve Officers' Training Corps financial assistance 
              program.
Sec. 533. Report on utilization of tuition assistance by members of the 
              Armed Forces.
Sec. 534. Navy Junior Reserve Officers' Training Corps unit for 
              Southold, Mattituck, and Greenport High Schools.
Sec. 535. Report on transfer of administration of certain educational 
              assistance programs for members of the reserve 
              components.

       Subtitle D--Military Justice and Legal Assistance Matters

Sec. 541. Authority to designate civilian employees of the Federal 
              Government and dependents of deceased members as eligible 
              for legal assistance from Department of Defense legal 
              staff resources.
Sec. 542. Authority of judges of the United States Court of Appeals for 
              the Armed Forces to administer oaths.
Sec. 543. Modification of authorities on senior members of the Judge 
              Advocate Generals' Corps.
Sec. 544. Prohibition against members of the Armed Forces participating 
              in criminal street gangs.

                       Subtitle E--Military Leave

Sec. 551. Temporary enhancement of carryover of accumulated leave for 
              members of the Armed Forces.
Sec. 552. Enhancement of rest and recuperation leave.

                   Subtitle F--Decorations and Awards

Sec. 561. Authorization and request for award of Medal of Honor to 
              Leslie H. Sabo, Jr., for acts of valor during the Vietnam 
              War.
Sec. 562. Authorization and request for award of Medal of Honor to 
              Henry Svehla for acts of valor during the Korean War.
Sec. 563. Authorization and request for award of Medal of Honor to 
              Woodrow W. Keeble for acts of valor during the Korean 
              War.
Sec. 564. Authorization and request for award of Medal of Honor to 
              Private Philip G. Shadrach for acts of valor as one of 
              Andrews' Raiders during the Civil War.
Sec. 565. Authorization and request for award of Medal of Honor to 
              Private George D. Wilson for acts of valor as one of 
              Andrews' Raiders during the Civil War.

     Subtitle G--Impact Aid and Defense Dependents Education System

Sec. 571. 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. Impact aid for children with severe disabilities.
Sec. 573. Inclusion of dependents of non-department of Defense 
              employees employed on Federal property in plan relating 
              to force structure changes, relocation of military units, 
              or base closures and realignments.
Sec. 574. Payment of private boarding school tuition for military 
              dependents in overseas areas not served by defense 
              dependents' education system schools.

                     Subtitle H--Military Families

Sec. 581. Department of Defense Military Family Readiness Council and 
              policy and plans for military family readiness.
Sec. 582. Yellow Ribbon Reintegration Program.
Sec. 583. Study to enhance and improve support services and programs 
              for families of members of regular and reserve components 
              undergoing deployment.

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Sec. 584. Protection of child custody arrangements for parents who are 
              members of the Armed Forces deployed in support of a 
              contingency operation.
Sec. 585. Family leave in connection with injured members of the Armed 
              Forces.
Sec. 586. Family care plans and deferment of deployment of single 
              parent or dual military couples with minor dependents.
Sec. 587. Education and treatment services for military dependent 
              children with autism.
Sec. 588. Commendation of efforts of Project Compassion in paying 
              tribute to members of the Armed Forces who have fallen in 
              the service of the United States.

                       Subtitle I--Other Matters

Sec. 590. Uniform performance policies for military bands and other 
              musical units.
Sec. 591. Transportation of remains of deceased members of the Armed 
              Forces and certain other persons.
Sec. 592. Expansion of number of academies supportable in any State 
              under STARBASE program.
Sec. 593. Gift acceptance authority.
Sec. 594. Conduct by members of the Armed Forces and veterans out of 
              uniform during hoisting, lowering, or passing of United 
              States flag.
Sec. 595. Annual report on cases reviewed by National Committee for 
              Employer Support of the Guard and Reserve.
Sec. 596. Modification of Certificate of Release or Discharge from 
              Active Duty (DD Form 214).
Sec. 597. Reports on administrative separations of members of the Armed 
              Forces for personality disorder.
Sec. 598. Program to commemorate 50th anniversary of the Vietnam War.
Sec. 599. Recognition of members of the Monuments, Fine Arts, and 
              Archives program of the Civil Affairs and Military 
              Government Sections of the Armed Forces during and 
              following World War II.
                  Subtitle A--Officer Personnel Policy

     SEC. 501. ASSIGNMENT OF OFFICERS TO DESIGNATED POSITIONS OF 
                   IMPORTANCE AND RESPONSIBILITY.

       (a) Continuation in Grade While Awaiting Orders.--Section 
     601(b) of title 10, United States Code, is amended--
       (1) by striking ``and'' at the end of paragraph (3);
       (2) by redesignating paragraph (4) as paragraph (5); and
       (3) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) at the discretion of the Secretary of Defense, while 
     the officer is awaiting orders after being relieved from the 
     position designated under subsection (a) or by law to carry 
     one of those grades, but not for more than 60 days beginning 
     on the day the officer is relieved from the position, unless, 
     during such period, the officer is placed under orders to 
     another position designated under subsection (a) or by law to 
     carry one of those grades, in which case paragraph (2) will 
     also apply to the officer; and''.
       (b) Conforming Amendment Regarding General and Flag Officer 
     Ceilings.--Section 525(e) of such title is amended by 
     striking paragraph (2) and inserting the following new 
     paragraph:
       ``(2) At the discretion of the Secretary of Defense, an 
     officer of that armed force who has been relieved from a 
     position designated under section 601(a) of this title or by 
     law to carry one of the grades specified in such section, but 
     only during the 60-day period beginning on the date on which 
     the assignment of the officer to the first position is 
     terminated or until the officer is assigned to a second such 
     position, whichever occurs first.''.

     SEC. 502. ENHANCED AUTHORITY FOR RESERVE GENERAL AND FLAG 
                   OFFICERS TO SERVE ON ACTIVE DUTY.

       Section 526(d) of title 10, United States Code, is 
     amended--
       (1) by inserting ``(1)'' before ``The limitations''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The limitations of this section also do not apply to 
     a number, as specified by the Secretary of the military 
     department concerned, of reserve component general or flag 
     officers authorized to serve on active duty for a period of 
     not more than 365 days. The number so specified for an armed 
     force may not exceed the number equal to ten percent of the 
     authorized number of general or flag officers, as the case 
     may be, of that armed force under section 12004 of this 
     title. In determining such number, any fraction shall be 
     rounded down to the next whole number, except that such 
     number shall be at least one.''.

     SEC. 503. INCREASE IN YEARS OF COMMISSIONED SERVICE THRESHOLD 
                   FOR DISCHARGE OF PROBATIONARY OFFICERS AND FOR 
                   USE OF FORCE SHAPING AUTHORITY.

       (a) Active-Duty List Officers.--
       (1) Extended probationary period.--Paragraph (1)(A) of 
     section 630 of title 10, United States Code, is amended by 
     striking ``five years'' and inserting ``six years''.
       (2) Section heading.--The heading of such section is 
     amended by striking ``five years'' and inserting ``six 
     years''.
       (3) Table of sections.--The item relating to such section 
     in the table of sections at the beginning of subchapter III 
     of chapter 36 of such title is amended to read as follows:

``630. Discharge of commissioned officers with less than six years of 
              active commissioned service or found not qualified for 
              promotion for first lieutenant or lieutenant (junior 
              grade).''.

       (b) Officer Force Shaping Authority.--Section 647(b)(1) of 
     such title is amended by striking ``5 years'' both places it 
     appears and inserting ``six years''.
       (c) Reserve Officers.--
       (1) Extended probationary period.--Subsection (a)(1) of 
     section 14503 of such title is amended by striking ``five 
     years'' and inserting ``six years''.
       (2) Section heading.--The heading of such section is 
     amended by striking ``five years'' and inserting ``six 
     years''.
       (3) Table of sections.--The item relating to such section 
     in the table of sections at the beginning of chapter 1407 of 
     such title is amended to read as follows:

``14503. Discharge of officers with less than six years of commissioned 
              service or found not qualified for promotion to first 
              lieutenant or lieutenant (junior grade).''.

     SEC. 504. MANDATORY RETIREMENT AGE FOR ACTIVE-DUTY GENERAL 
                   AND FLAG OFFICERS CONTINUED ON ACTIVE DUTY.

       Section 637(b)(3) of title 10, United States Code, is 
     amended by striking ``but such period may not (except as 
     provided under section 1251(b) of this title) extend beyond 
     the date of the officer's sixty-second birthday'' and 
     inserting ``except as provided under section 1251 or 1253 of 
     this title''.

     SEC. 505. AUTHORITY FOR REDUCED MANDATORY SERVICE OBLIGATION 
                   FOR INITIAL APPOINTMENTS OF OFFICERS IN 
                   CRITICALLY SHORT HEALTH PROFESSIONAL 
                   SPECIALTIES.

       Section 651 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(c)(1) For the armed forces under the jurisdiction of the 
     Secretary of Defense, the Secretary may waive the initial 
     period of required service otherwise established pursuant to 
     subsection (a) in the case of the initial appointment of a 
     commissioned officer in a critically short health 
     professional specialty specified by the Secretary for 
     purposes of this subsection.
       ``(2) The minimum period of obligated service for an 
     officer under a waiver under this subsection shall be the 
     greater of--
       ``(A) two years; or
       ``(B) in the case of an officer who has accepted an 
     accession bonus or executed a contract or agreement for the 
     multiyear receipt of special pay for service in the armed 
     forces, the period of obligated service specified in such 
     contract or agreement.''.

     SEC. 506. EXPANSION OF AUTHORITY FOR REENLISTMENT OF OFFICERS 
                   IN THEIR FORMER ENLISTED GRADE.

       (a) Regular Army.--Section 3258 of title 10, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) by striking ``a Reserve officer'' and inserting ``an 
     officer''; and
       (B) by striking ``a temporary appointment'' and inserting 
     ``an appointment''; and
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``a Reserve officer'' and 
     inserting ``an officer''; and
       (B) in paragraph (2), by striking ``the Reserve 
     commission'' and inserting ``the commission''.
       (b) Regular Air Force.--Section 8258 of such title is 
     amended--
       (1) in subsection (a)--
       (A) by striking ``a reserve officer'' and inserting ``an 
     officer''; and
       (B) by striking ``a temporary appointment'' and inserting 
     ``an appointment''; and
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``a Reserve officer'' and 
     inserting ``an officer''; and
       (B) in paragraph (2), by striking ``the Reserve 
     commission'' and inserting ``the commission''.

     SEC. 507. INCREASE IN AUTHORIZED NUMBER OF PERMANENT 
                   PROFESSORS AT THE UNITED STATES MILITARY 
                   ACADEMY.

       Paragraph (4) of section 4331(b) of title 10, United States 
     Code, is amended to read as follows:
       ``(4) Twenty-eight permanent professors.''.

     SEC. 508. PROMOTION OF CAREER MILITARY PROFESSORS OF THE 
                   NAVY.

       (a) Promotion.--
       (1) In general.--Chapter 603 of title 10, United States 
     Code, is amended--
       (A) by redesignating section 6970 as section 6970a; and
       (B) by inserting after section 6969 the following new 
     section 6970:

     ``Sec. 6970. Permanent professors: promotion

       ``(a) Promotion.--An officer serving as a permanent 
     professor may be recommended for promotion to the grade of 
     captain or colonel, as the case may be, under regulations 
     prescribed by the Secretary of the Navy. The regulations 
     shall include a competitive selection board process to 
     identify those permanent professors best qualified for 
     promotion. An officer so recommended shall be promoted by 
     appointment to the higher grade by the President, by and with 
     the advice and consent of the Senate.
       ``(b) Effective Date of Promotion.--If made, the promotion 
     of an officer under subsection (a) shall be effective not 
     earlier than

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     three years after the selection of the officer as a permanent 
     professor as described in that subsection.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by striking the item 
     relating to section 6970 and inserting the following new 
     items:

``6970. Permanent professors: promotion.
``6970a. Permanent professors: retirement for years of service; 
              authority for deferral.''.

       (b) Conforming Amendments.--Section 641(2) of such title is 
     amended--
       (1) by striking ``and the registrar'' and inserting ``, the 
     registrar''; and
       (2) by inserting before the period at the end the 
     following: ``, and permanent professors of the Navy (as 
     defined in regulations prescribed by the Secretary of the 
     Navy)''.
       (c) Competitive Selection Assessment.--The Secretary of 
     Defense shall conduct an assessment of the effectiveness of 
     the promotion system established under section 6970 of title 
     10, United States Code, as added by subsection (a), for 
     permanent professors of the United States Naval Academy, 
     including an evaluation of the extent to which the 
     implementation of the promotion system has resulted in a 
     competitive environment for the selection of permanent 
     professors and an evaluation of whether the goals of the 
     permanent professor program have been achieved, including 
     adequate career progression and promotion opportunities for 
     participating officers. Not later than December 31, 2009, the 
     Secretary shall submit to the congressional defense 
     committees a report containing the results of the assessment.
       (d) Use of Exclusions From Authorized Officer Strengths.--
     Not later than March 31, 2008, the Secretary of the Navy 
     shall submit to the congressional defense committees a report 
     describing the plans of the Secretary for utilization of 
     authorized exemptions under section 523(b)(8) of title 10, 
     United States Code, and a discussion of the Navy's 
     requirement, if any, and projections for use of additional 
     exemptions by grade.
                Subtitle B--Reserve Component Management

     SEC. 511. RETENTION OF MILITARY TECHNICIANS WHO LOSE DUAL 
                   STATUS IN THE SELECTED RESERVE DUE TO COMBAT-
                   RELATED DISABILITY.

       Section 10216 of title 10, United States Code, is amended 
     by inserting after subsection (f) the following new 
     subsection:
       ``(g) Retention of Military Technicians Who Lose Dual 
     Status Due to Combat-Related Disability.--(1) Notwithstanding 
     subsection (d) of this section or subsections (a)(3) and (b) 
     of section 10218 of this title, if a military technician 
     (dual status) loses such dual status as the result of a 
     combat-related disability (as defined in section 1413a of 
     this title), the person may be retained as a non-dual status 
     technician so long as--
       ``(A) the combat-related disability does not prevent the 
     person from performing the non-dual status functions or 
     position; and
       ``(B) the person, while a non-dual status technician, is 
     not disqualified from performing the non-dual status 
     functions or position because of performance, medical, or 
     other reasons.
       ``(2) A person so retained shall be removed not later than 
     30 days after becoming eligible for an unreduced annuity and 
     becoming 60 years of age.
       ``(3) Persons retained under the authority of this 
     subsection do not count against the limitations of section 
     10217(c) of this title.''.

     SEC. 512. CONSTRUCTIVE SERVICE CREDIT UPON ORIGINAL 
                   APPOINTMENT OF RESERVE OFFICERS IN CERTAIN 
                   HEALTH CARE PROFESSIONS.

       (a) Inclusion of Additional Health Care Professions.--
     Paragraph (2) of section 12207(b) of title 10, United States 
     Code, is amended to read as follows:
       ``(2)(A) If the Secretary of Defense determines that the 
     number of officers in a health profession described in 
     subparagraph (B) who are serving in an active status in a 
     reserve component of the Army, Navy, or Air Force in grades 
     below major or lieutenant commander is critically below the 
     number needed in such health profession by such reserve 
     component in such grades, the Secretary of Defense may 
     authorize the Secretary of the military department concerned 
     to credit any person who is receiving an original appointment 
     as an officer for service in such health profession with a 
     period of constructive credit in such amount (in addition to 
     any amount credited such person under paragraph (1)) as will 
     result in the grade of such person being that of captain or, 
     in the case of the Navy Reserve, lieutenant.
       ``(B) The types of health professions referred to in 
     subparagraph (A) include the following:
       ``(i) Any health profession performed by officers in the 
     Medical Corps of the Army or the Navy or by officers of the 
     Air Force designated as a medical officer.
       ``(ii) Any health profession performed by officers in the 
     Dental Corps of the Army or the Navy or by officers of the 
     Air Force designated as a dental officer.
       ``(iii) Any health profession performed by officers in the 
     Medical Service Corps of the Army or the Navy or by officers 
     of the Air Force designated as a medical service officer or 
     biomedical sciences officer.
       ``(iv) Any health profession performed by officers in the 
     Army Medical Specialist Corps.
       ``(v) Any health profession performed by officers of the 
     Nurse Corps of the Army or the Navy or by officers of the Air 
     Force designated as a nurse.
       ``(vi) Any health profession performed by officers in the 
     Veterinary Corps of the Army or by officers designated as a 
     veterinary officer.''.
       (b) Conforming Amendment.--Paragraph (3) of such section is 
     amended by striking ``a medical or dental officer'' and 
     inserting ``officers covered by paragraph (2)''.

     SEC. 513. MANDATORY SEPARATION OF RESERVE OFFICERS IN THE 
                   GRADE OF LIEUTENANT GENERAL OR VICE ADMIRAL 
                   AFTER COMPLETION OF 38 YEARS OF COMMISSIONED 
                   SERVICE.

       (a) Mandatory Separation.--Section 14508 of title 10, 
     United States Code, is amended--
       (1) by redesignating subsections (c), (d), and (e) as 
     subsections (e), (f), and (g), respectively; and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Thirty-Eight Years of Service for Lieutenant Generals 
     and Vice Admirals.--Unless retired, transferred to the 
     Retired Reserve, or discharged at an earlier date, each 
     reserve officer of the Army, Air Force, or Marine Corps in 
     the grade of lieutenant general and each reserve officer of 
     the Navy in the grade of vice admiral shall be separated in 
     accordance with section 14514 of this title on the later of 
     the following:
       ``(1) 30 days after completion of 38 years of commissioned 
     service.
       ``(2) The fifth anniversary of the date of the officer's 
     appointment in the grade of lieutenant general or vice 
     admiral.''.
       (b) Clerical Amendments.--Such section is further amended--
       (1) in subsection (a), by inserting ``for Brigadier 
     Generals and Rear Admirals (Lower Half)'' after ``Grade'' in 
     the subsection heading; and
       (2) in subsection (b), by inserting ``for Major Generals 
     and Rear Admirals'' after ``Grade'' in the subsection 
     heading.

     SEC. 514. MAXIMUM PERIOD OF TEMPORARY FEDERAL RECOGNITION OF 
                   PERSON AS ARMY NATIONAL GUARD OFFICER OR AIR 
                   NATIONAL GUARD OFFICER.

       Section 308(a) of title 32, United States Code, is amended 
     in the last sentence by striking ``six months'' and inserting 
     ``one year''.

     SEC. 515. ADVANCE NOTICE TO MEMBERS OF RESERVE COMPONENTS OF 
                   DEPLOYMENT IN SUPPORT OF CONTINGENCY 
                   OPERATIONS.

       (a) Advance Notice Required.--The Secretary of a military 
     department shall ensure that a member of a reserve component 
     under the jurisdiction of that Secretary who will be called 
     or ordered to active duty for a period of more than 30 days 
     in support of a contingency operation (as defined in section 
     101(a)(13) of title 10, United States Code) receives notice 
     in advance of the mobilization date. In so far as is 
     practicable, the notice shall be provided not less than 30 
     days before the mobilization date, but with a goal of 90 days 
     before the mobilization date.
       (b) Reduction or Waiver of Notice Requirement.--The 
     Secretary of Defense may waive the requirement of subsection 
     (a), or authorize shorter notice than the minimum specified 
     in such subsection, during a war or national emergency 
     declared by the President or Congress or to meet mission 
     requirements. If the waiver or reduction is made on account 
     of mission requirements, the Secretary shall submit to 
     Congress a report detailing the reasons for the waiver or 
     reduction and the mission requirements at issue.

     SEC. 516. REPORT ON RELIEF FROM PROFESSIONAL LICENSURE AND 
                   CERTIFICATION REQUIREMENTS FOR RESERVE 
                   COMPONENT MEMBERS ON LONG-TERM ACTIVE DUTY.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study of the requirements to maintain 
     licensure or certification by members of the National Guard 
     or other reserve components of the Armed Forces while on 
     active duty for an extended period of time.
       (b) Elements of Study.--In the study, the Comptroller 
     General shall--
       (1) identify the number and type of professional or other 
     licensure or certification requirements that may be adversely 
     impacted by extended periods of active duty; and
       (2) determine mechanisms that would provide relief from 
     professional or other licensure or certification requirements 
     for members of the reserve components while on active duty 
     for an extended period of time.
       (c) Report.--Not later than 120 days after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to the Committees on Armed Services of the Senate and House 
     of Representative a report containing the results of the 
     study and such recommendations as the Comptroller General 
     considers appropriate to provide further relief for members 
     of the reserve components from professional or other 
     licensure or certification requirements while on active duty 
     for an extended period of time.
                   Subtitle C--Education and Training

     SEC. 521. REVISIONS TO AUTHORITY TO PAY TUITION FOR OFF-DUTY 
                   TRAINING OR EDUCATION.

       (a) Inclusion of Coast Guard.--Subsection (a) of section 
     2007 of title 10, United States Code, is amended by striking 
     ``Subject to subsection (b), the Secretary of a military 
     department'' and inserting ``Subject to subsections (b) and 
     (c), the Secretary concerned''.
       (b) Commissioned Officers on Active Duty.--Subsection (b) 
     of such section is amended--
       (1) in paragraph (1)--
       (A) by inserting after ``commissioned officer on active 
     duty'' the following: ``(other than a member of the Ready 
     Reserve)'';

[[Page 32546]]

       (B) by striking ``the Secretary of the military department 
     concerned'' and inserting ``the Secretary concerned''; and
       (C) by striking ``or full-time National Guard duty'' both 
     places it appears; and
       (2) in paragraph (2)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``the Secretary of the military department'' and inserting 
     ``the Secretary concerned'';
       (B) in subparagraph (B), by inserting after ``active duty 
     service'' the following: ``for which the officer was ordered 
     to active duty''; and
       (C) in subparagraph (C), by striking ``Secretary'' and 
     inserting ``Secretary concerned''.
       (c) Authority To Pay Tuition Assistance to Members of the 
     Ready Reserve.--
       (1) Availability of assistance.--Subsection (c) of such 
     section is amended to read as follows:
       ``(c)(1) Subject to paragraphs (3) and (5), the Secretary 
     concerned may pay the charges of an educational institution 
     for the tuition or expenses described in subsection (a) of a 
     member of the Selected Reserve.
       ``(2) Subject to paragraphs (4) and (5), the Secretary 
     concerned may pay the charges of an educational institution 
     for the tuition or expenses described in subsection (a) of a 
     member of the Individual Ready Reserve who has a military 
     occupational specialty designated by the Secretary concerned 
     for purposes of this subsection.
       ``(3) The Secretary concerned may not pay charges under 
     paragraph (1) for tuition or expenses of an officer of the 
     Selected Reserve unless the officer enters into an agreement 
     to remain a member of the Selected Reserve for at least four 
     years after completion of the education or training for which 
     the charges are paid.
       ``(4) The Secretary concerned may not pay charges under 
     paragraph (2) for tuition or expenses of an officer of the 
     Individual Ready Reserve unless the officer enters into an 
     agreement to remain in the Selected Reserve or Individual 
     Ready Reserve for at least four years after completion of the 
     education or training for which the charges are paid.
       ``(5) The Secretary of a military department may require an 
     enlisted member of the Selected Reserve or Individual Ready 
     Reserve to enter into an agreement to serve for up to four 
     years in the Selected Reserve or Individual Ready Reserve, as 
     the case may be, after completion of the education or 
     training for which tuition or expenses are paid under 
     paragraph (1) or (2), as applicable.''.
       (2) Repeal of superseded provision.--Such section is 
     further amended--
       (A) by striking subsection (d); and
       (B) by redesignating subsections (e) and (f) as subsections 
     (d) and (e), respectively.
       (3) Repayment of unearned benefit.--Subsection (e) of such 
     section, as redesignated by paragraph (2) of this subsection, 
     is amended--
       (A) by inserting ``(1)'' after ``(e)''; and
       (B) by adding at the end the following new paragraph:
       ``(2) If a member of the Ready Reserve who enters into an 
     agreement under subsection (c) does not complete the period 
     of service specified in the agreement, the member shall be 
     subject to the repayment provisions of section 303a(e) of 
     title 37.''.
       (d) Regulations.--Such section is further amended by adding 
     at the end the following new subsection:
       ``(f) This section shall be administered under regulations 
     prescribed by the Secretary of Defense or, with respect to 
     the Coast Guard when it is not operating as a service in the 
     Navy, the Secretary of Homeland Security.''.
       (e) Study.--
       (1) Study required.--The Secretary of Defense shall carry 
     out a study on the tuition assistance program carried out 
     under section 2007 of title 10, United States Code. The study 
     shall--
       (A) identify the number of members of the Armed Forces 
     eligible for assistance under the program, and the number who 
     actually receive the assistance;
       (B) assess the extent to which the program affects 
     retention rates; and
       (C) assess the extent to which State tuition assistance 
     programs affect retention rates in those States.
       (2) Report.--Not later than nine months after the date of 
     the enactment of this Act, 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 study.

     SEC. 522. REDUCTION OR ELIMINATION OF SERVICE OBLIGATION IN 
                   AN ARMY RESERVE OR ARMY NATIONAL GUARD TROOP 
                   PROGRAM UNIT FOR CERTAIN PERSONS SELECTED AS 
                   MEDICAL STUDENTS AT UNIFORMED SERVICES 
                   UNIVERSITY OF THE HEALTH SCIENCES.

       Paragraph (3) of section 2107a(b) of title 10, United 
     States Code, is amended to read as follows:
       ``(3)(A) Subject to subparagraph (C), in the case of a 
     person described in subparagraph (B), the Secretary may, at 
     any time and with the consent of the person, modify an 
     agreement described in paragraph (1)(F) submitted by the 
     person for the purpose of reducing or eliminating the troop 
     program unit service obligation specified in the agreement 
     and to establish, in lieu of that obligation, an active duty 
     service obligation.
       ``(B) Subparagraph (A) applies with respect to the 
     following persons:
       ``(i) A cadet under this section at a military junior 
     college.
       ``(ii) A cadet or former cadet under this section who is 
     selected under section 2114 of this title to be a medical 
     student at the Uniformed Services University of the Health 
     Sciences.
       ``(iii) A cadet or former cadet under this section who 
     signs an agreement under section 2122 of this title for 
     participation in the Armed Forces Health Professions 
     Scholarship and Financial Assistance program.
       ``(C) The modification of an agreement described in 
     paragraph (1)(F) may be made only if the Secretary determines 
     that it is in the best interests of the United States to do 
     so.''.

     SEC. 523. REPEAL OF ANNUAL LIMIT ON NUMBER OF ROTC 
                   SCHOLARSHIPS UNDER ARMY RESERVE AND ARMY 
                   NATIONAL GUARD FINANCIAL ASSISTANCE PROGRAM.

       Section 2107a(h) of title 10, United States Code, is 
     amended by striking ``not more than 416 cadets each year 
     under this section, to include'' and inserting ``each year 
     under this section''.

     SEC. 524. TREATMENT OF PRIOR ACTIVE SERVICE OF MEMBERS IN 
                   UNIFORMED MEDICAL ACCESSION PROGRAMS.

       (a) Medical Students of USUHS.--
       (1) Treatment of students with prior active service.--
     Section 2114 of title 10, United States Code, is amended--
       (A) by redesignating subsections (c) through (h) as 
     subsections (d) through (i), respectively; and
       (B) in subsection (b)--
       (i) by inserting ``(1)'' after ``(b)''; and
       (ii) by inserting after the second sentence the following 
     new paragraph:
       ``(2) If a member of the uniformed services selected to be 
     a student has prior active service in a pay grade and with 
     years of service credited for pay that would entitle the 
     member, if the member remained in the former grade, to a rate 
     of basic pay in excess of the rate of basic pay for regular 
     officers in the grade of second lieutenant or ensign, the 
     member shall be paid basic pay based on the former grade and 
     years of service credited for pay. The amount of such basic 
     pay for the member shall be increased on January 1 of each 
     year by the percentage by which basic pay is increased on 
     average on that date for that year, and the member shall 
     continue to receive basic pay based on the former grade and 
     years of service until the date, whether occurring before or 
     after graduation, on which the basic pay for the member in 
     the member's actual grade and years of service credited for 
     pay exceeds the amount of basic pay to which the member is 
     entitled based on the member's former grade and years of 
     service.''.
       (2) Conforming amendments.--Such section is further 
     amended--
       (A) in subsection (b), by striking ``Upon graduation they'' 
     and inserting the following:
       ``(c) Medical students who graduate''; and
       (B) in subsection (i), as redesignated by paragraph (1), by 
     striking ``subsection (b)'' and inserting ``subsection (c)''.
       (b) Participants in Health Professions Scholarship and 
     Financial Assistance Program.--Section 2121(c) of such title 
     is amended--
       (1) by inserting ``(1)'' after ``(c)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) If a member of the uniformed services selected to 
     participate in the program as a medical student has prior 
     active service in a pay grade and with years of service 
     credited for pay that would entitle the member, if the member 
     remained in the former grade, to a rate of basic pay in 
     excess of the rate of basic pay for regular officers in the 
     grade of second lieutenant or ensign, the member shall be 
     paid basic pay based on the former grade and years of service 
     credited for pay. The amount of such basic pay for the member 
     shall be increased on January 1 of each year by the 
     percentage by which basic pay is increased on average on that 
     date for that year, and the member shall continue to receive 
     basic pay based on the former grade and years of service 
     until the date, whether occurring before or after the 
     conclusion of such participation, on which the basic pay for 
     the member in the member's actual grade and years of service 
     credited for pay exceeds the amount of basic pay to which the 
     member is entitled based on the member's former grade and 
     years of service.''.
       (c) Officers Detailed as Students at Medical Schools.--
       (1) Appointment and treatment of prior active service.--
     Section 2004a of such title is amended--
       (A) by redesignating subsections (e) through (h) as 
     subsections (f) through (i), respectively; and
       (B) by inserting after subsection (d) the following new 
     subsection:
       ``(e) Appointment and Treatment of Prior Active Service.--
     (1) A commissioned officer detailed as a student at a medical 
     school under subsection (a) shall be appointed as a regular 
     officer in the grade of second lieutenant or ensign and shall 
     serve on active duty in that grade with full pay and 
     allowances of that grade.
       ``(2) If an officer detailed to be a medical student has 
     prior active service in a pay grade and with years of service 
     credited for pay that would entitle the officer, if the 
     officer remained in the former grade, to a rate of basic pay 
     in excess of the rate of basic pay for regular officers in 
     the grade of second lieutenant or ensign, the officer shall 
     be paid basic pay based on the former grade and years of 
     service credited for pay. The amount of such basic pay for 
     the officer shall be increased on January 1 of each year by 
     the percentage by which basic pay is increased on average on 
     that date for that year, and the officer

[[Page 32547]]

     shall continue to receive basic pay based on the former grade 
     and years of service until the date, whether occurring before 
     or after graduation, on which the basic pay for the officer 
     in the officer's actual grade and years of service credited 
     for pay exceeds the amount of basic pay to which the officer 
     is entitled based on the officer's former grade and years of 
     service.''.
       (2) Technical amendment.--Subsection (c) of such section is 
     amended by striking ``subsection (c)'' and inserting 
     ``subsection (b)''.

     SEC. 525. REPEAL OF POST-2007-2008 ACADEMIC YEAR PROHIBITION 
                   ON PHASED INCREASE IN CADET STRENGTH LIMIT AT 
                   THE UNITED STATES MILITARY ACADEMY.

       Section 4342(j)(1) of title 10, United States Code, is 
     amended by striking the last sentence.

     SEC. 526. NATIONAL DEFENSE UNIVERSITY MASTER'S DEGREE 
                   PROGRAMS.

       (a) Master of Arts Program Authorized.--Section 2163 of 
     title 10, United States Code, is amended--
       (1) in subsection (a), by inserting ``or master of arts'' 
     after ``master of science''; and
       (2) in subsection (b), by adding at the end the following 
     new paragraph:
       ``(4) Master of arts in strategic security studies.--The 
     degree of master of arts in strategic security studies, to 
     graduates of the University who fulfill the requirements of 
     the program at the School for National Security Executive 
     Education.''.
       (b) Clerical Amendments.--
       (1) Section heading.--The heading of such section is 
     amended to read as follows:

     ``Sec. 2163. National Defense University: master's degree 
       programs''.

       (2) Table of contents.--The table of sections at the 
     beginning of chapter 108 of such title is amended by striking 
     the item relating to section 2163 and inserting the following 
     new item:

``2163. National Defense University: master's degree programs.''.
       (c) Applicability to 2006-2007 Graduates.--Paragraph (4) of 
     section 2163(b) of title 10, United States Code, as added by 
     subsection (a) of this section, applies with respect to any 
     person who becomes a graduate of the National Defense 
     University on or after September 6, 2006, and fulfills the 
     requirements of the program referred to in such paragraph 
     (4).

     SEC. 527. AUTHORITY OF THE AIR UNIVERSITY TO CONFER DEGREE OF 
                   MASTER OF SCIENCE IN FLIGHT TEST ENGINEERING.

       Section 9317(a) of title 10, United States Code, is 
     amended--
       (1) by redesignating paragraph (4) as paragraph (5); and
       (2) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) The degree of master of science in flight test 
     engineering upon graduates of the Air Force Test Pilot School 
     who fulfill the requirements for that degree in a manner 
     consistent with the recommendations of the Department of 
     Education and the principles of the regional accrediting body 
     for the Air University.''.

     SEC. 528. ENHANCEMENT OF EDUCATION BENEFITS FOR CERTAIN 
                   MEMBERS OF RESERVE COMPONENTS.

       (a) Accelerated Payment of Educational Assistance for 
     Members of the Selected Reserve.--
       (1) In general.--Chapter 1606 of title 10, United States 
     Code, is amended by inserting after section 16131 the 
     following new section:

     ``Sec. 16131a. Accelerated payment of educational assistance

       ``(a) The educational assistance allowance payable under 
     section 16131 of this title with respect to an eligible 
     person described in subsection (b) may, upon the election of 
     such eligible person, be paid on an accelerated basis in 
     accordance with this section.
       ``(b) An eligible person described in this subsection is a 
     person entitled to educational assistance under this chapter 
     who is--
       ``(1) enrolled in an approved program of education not 
     exceeding two years in duration and not leading to an 
     associate, bachelors, masters, or other degree, subject to 
     subsection (g); and
       ``(2) charged tuition and fees for the program of education 
     that, when divided by the number of months (and fractions 
     thereof) in the enrollment period, exceeds the amount equal 
     to 200 percent of the monthly rate of educational assistance 
     allowance otherwise payable with respect to the person under 
     section 16131 of this title.
       ``(c)(1) The amount of the accelerated payment of 
     educational assistance payable with respect to an eligible 
     person making an election under subsection (a) for a program 
     of education shall be the lesser of--
       ``(A) the amount equal to 60 percent of the established 
     charges for the program of education; or
       ``(B) the aggregate amount of educational assistance 
     allowance to which the person remains entitled under this 
     chapter at the time of the payment.
       ``(2)(A) In this subsection, except as provided in 
     subparagraph (B), the term `established charges', in the case 
     of a program of education, means the actual charges (as 
     determined pursuant to regulations prescribed by the 
     Secretary of Veterans Affairs) for tuition and fees which 
     similarly circumstanced individuals who are not eligible for 
     benefits under this chapter and who are enrolled in the 
     program of education would be required to pay. Established 
     charges shall be determined on the following basis:
       ``(i) In the case of an individual enrolled in a program of 
     education offered on a term, quarter, or semester basis, the 
     tuition and fees charged the individual for the term, 
     quarter, or semester.
       ``(ii) In the case of an individual enrolled in a program 
     of education not offered on a term, quarter, or semester 
     basis, the tuition and fees charged the individual for the 
     entire program of education.
       ``(B) In this subsection, the term `established charges' 
     does not include any fees or payments attributable to the 
     purchase of a vehicle.
       ``(3) The educational institution providing the program of 
     education for which an accelerated payment of educational 
     assistance allowance is elected by an eligible person under 
     subsection (a) shall certify to the Secretary of Veterans 
     Affairs the amount of the established charges for the program 
     of education.
       ``(d) An accelerated payment of educational assistance 
     allowance made with respect to an eligible person under this 
     section for a program of education shall be made not later 
     than the last day of the month immediately following the 
     month in which the Secretary of Veterans Affairs receives a 
     certification from the educational institution regarding--
       ``(1) the person's enrollment in and pursuit of the program 
     of education; and
       ``(2) the amount of the established charges for the program 
     of education.
       ``(e)(1) Except as provided in paragraph (2), for each 
     accelerated payment of educational assistance allowance made 
     with respect to an eligible person under this section, the 
     person's entitlement to educational assistance under this 
     chapter shall be charged the number of months (and any 
     fraction thereof) determined by dividing the amount of the 
     accelerated payment by the full-time monthly rate of 
     educational assistance allowance otherwise payable with 
     respect to the person under section 16131 of this title as of 
     the beginning date of the enrollment period for the program 
     of education for which the accelerated payment is made.
       ``(2) If the monthly rate of educational assistance 
     allowance otherwise payable with respect to an eligible 
     person under section 16131 of this title increases during the 
     enrollment period of a program of education for which an 
     accelerated payment of educational assistance allowance is 
     made under this section, the charge to the person's 
     entitlement to educational assistance under this chapter 
     shall be determined by prorating the entitlement chargeable, 
     in the manner provided for under paragraph (1), for the 
     periods covered by the initial rate and increased rate, 
     respectively, in accordance with regulations prescribed by 
     the Secretary of Veterans Affairs.
       ``(f) The Secretary of Veterans Affairs shall prescribe 
     regulations to carry out this section. The regulations shall 
     include requirements, conditions, and methods for the 
     request, issuance, delivery, certification of receipt and 
     use, and recovery of overpayment of an accelerated payment of 
     educational assistance allowance under this section. The 
     regulations may include such elements of the regulations 
     prescribed under section 3014A of title 38 as the Secretary 
     of Veterans Affairs considers appropriate for purposes of 
     this section.
       ``(g) The aggregate amount of educational assistance 
     payable under this section in any fiscal year for enrollments 
     covered by subsection (b)(1) may not exceed $4,000,000.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 1606 of such title is amended by 
     inserting after the item relating to section 16131 the 
     following new item:

``16131a. Accelerated payment of educational assistance.''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on October 1, 2008, and shall only apply to 
     initial enrollments in approved programs of education after 
     such date.
       (b) Accelerated Payment of Educational Assistance for 
     Reserve Component Members Supporting Contingency Operations 
     and Other Operations.--
       (1) In general.--Chapter 1607 of title 10, United States 
     Code, is amended by inserting after section 16162 the 
     following new section:

     ``Sec. 16162a. Accelerated payment of educational assistance

       ``(a) Payment on Accelerated Basis.--The educational 
     assistance allowance payable under section 16162 of this 
     title with respect to an eligible member described in 
     subsection (b) may, upon the election of such eligible 
     member, be paid on an accelerated basis in accordance with 
     this section.
       ``(b) Eligible Members.--An eligible member described in 
     this subsection is a member of a reserve component entitled 
     to educational assistance under this chapter who is--
       ``(1) enrolled in an approved program of education not 
     exceeding two years in duration and not leading to an 
     associate, bachelors, masters, or other degree, subject to 
     subsection (g); and
       ``(2) charged tuition and fees for the program of education 
     that, when divided by the number of months (and fractions 
     thereof) in the enrollment period, exceeds the amount equal 
     to 200 percent of the monthly rate of educational assistance 
     allowance otherwise payable with respect to the member under 
     section 16162 of this title.
       ``(c) Amount of Accelerated Payment.--(1) The amount of the 
     accelerated payment of educational assistance payable with 
     respect to an eligible member making an election under 
     subsection (a) for a program of education shall be the lesser 
     of--
       ``(A) the amount equal to 60 percent of the established 
     charges for the program of education; or

[[Page 32548]]

       ``(B) the aggregate amount of educational assistance 
     allowance to which the member remains entitled under this 
     chapter at the time of the payment.
       ``(2)(A) In this subsection, except as provided in 
     subparagraph (B), the term `established charges', in the case 
     of a program of education, means the actual charges (as 
     determined pursuant to regulations prescribed by the 
     Secretary of Veterans Affairs) for tuition and fees which 
     similarly circumstanced individuals who are not eligible for 
     benefits under this chapter and who are enrolled in the 
     program of education would be required to pay. Established 
     charges shall be determined on the following basis:
       ``(i) In the case of an individual enrolled in a program of 
     education offered on a term, quarter, or semester basis, the 
     tuition and fees charged the individual for the term, 
     quarter, or semester.
       ``(ii) In the case of an individual enrolled in a program 
     of education not offered on a term, quarter, or semester 
     basis, the tuition and fees charged the individual for the 
     entire program of education.
       ``(B) In this subsection, the term `established charges' 
     does not include any fees or payments attributable to the 
     purchase of a vehicle.
       ``(3) The educational institution providing the program of 
     education for which an accelerated payment of educational 
     assistance allowance is elected by an eligible member under 
     subsection (a) shall certify to the Secretary of Veterans 
     Affairs the amount of the established charges for the program 
     of education.
       ``(d) Time of Payment.--An accelerated payment of 
     educational assistance allowance made with respect to an 
     eligible member under this section for a program of education 
     shall be made not later than the last day of the month 
     immediately following the month in which the Secretary of 
     Veterans Affairs receives a certification from the 
     educational institution regarding--
       ``(1) the member's enrollment in and pursuit of the program 
     of education; and
       ``(2) the amount of the established charges for the program 
     of education.
       ``(e) Charge Against Entitlement.--(1) Except as provided 
     in paragraph (2), for each accelerated payment of educational 
     assistance allowance made with respect to an eligible member 
     under this section, the member's entitlement to educational 
     assistance under this chapter shall be charged the number of 
     months (and any fraction thereof) determined by dividing the 
     amount of the accelerated payment by the full-time monthly 
     rate of educational assistance allowance otherwise payable 
     with respect to the member under section 16162 of this title 
     as of the beginning date of the enrollment period for the 
     program of education for which the accelerated payment is 
     made.
       ``(2) If the monthly rate of educational assistance 
     allowance otherwise payable with respect to an eligible 
     member under section 16162 of this title increases during the 
     enrollment period of a program of education for which an 
     accelerated payment of educational assistance allowance is 
     made under this section, the charge to the member's 
     entitlement to educational assistance under this chapter 
     shall be determined by prorating the entitlement chargeable, 
     in the manner provided for under paragraph (1), for the 
     periods covered by the initial rate and increased rate, 
     respectively, in accordance with regulations prescribed by 
     the Secretary of Veterans Affairs.
       ``(f) Regulations.--The Secretary of Veterans Affairs shall 
     prescribe regulations to carry out this section. The 
     regulations shall include requirements, conditions, and 
     methods for the request, issuance, delivery, certification of 
     receipt and use, and recovery of overpayment of an 
     accelerated payment of educational assistance allowance under 
     this section. The regulations may include such elements of 
     the regulations prescribed under section 3014A of title 38 as 
     the Secretary of Veterans Affairs considers appropriate for 
     purposes of this section.
       ``(g) Limitation.--The aggregate amount of educational 
     assistance payable under this section in any fiscal year for 
     enrollments covered by subsection (b)(1) may not exceed 
     $3,000,000.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 1607 of such title is amended by 
     inserting after the item relating to section 16162 the 
     following new item:

``16162a. Accelerated payment of educational assistance.''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on October 1, 2008, and shall only apply to 
     initial enrollments in approved programs of education after 
     such date.
       (c) Enhancement of Educational Assistance for Reserve 
     Component Members Supporting Contingency Operations and Other 
     Operations.--
       (1) Assistance for three years cumulative service.--
     Subsection (c)(4)(C) of section 16162 of title 10, United 
     States Code, is amended by striking ``for two continuous 
     years or more.'' and inserting ``for--
       ``(i) two continuous years or more; or
       ``(ii) an aggregate of three years or more.''.
       (2) Contributions for increased amount of educational 
     assistance.--Such section is further amended by adding at the 
     end the following new subsection:
       ``(f) Contributions for Increased Amount of Educational 
     Assistance.--(1)(A) Any individual eligible for educational 
     assistance under this section may contribute amounts for 
     purposes of receiving an increased amount of educational 
     assistance as provided for in paragraph (2).
       ``(B) An individual covered by subparagraph (A) may make 
     the contributions authorized by that subparagraph at any time 
     while a member of a reserve component, but not more 
     frequently than monthly.
       ``(C) The total amount of the contributions made by an 
     individual under subparagraph (A) may not exceed $600. Such 
     contributions shall be made in multiples of $20.
       ``(D) Contributions under this subsection shall be made to 
     the Secretary concerned. Such Secretary shall deposit any 
     amounts received as contributions under this subsection into 
     the Treasury as miscellaneous receipts.
       ``(2) Effective as of the first day of the enrollment 
     period following the enrollment period in which an individual 
     makes contributions under paragraph (1), the monthly amount 
     of educational assistance allowance applicable to such 
     individual under this section shall be the monthly rate 
     otherwise provided for under subsection (c) increased by--
       ``(A) an amount equal to $5 for each $20 contributed by 
     such individual under paragraph (1) for an approved program 
     of education pursued on a full-time basis; or
       ``(B) an appropriately reduced amount based on the amount 
     so contributed as determined under regulations that the 
     Secretary of Veterans Affairs shall prescribe, for an 
     approved program of education pursued on less than a full-
     time basis.''.

     SEC. 529. EXTENSION OF PERIOD OF ENTITLEMENT TO EDUCATIONAL 
                   ASSISTANCE FOR CERTAIN MEMBERS OF THE SELECTED 
                   RESERVE AFFECTED BY FORCE SHAPING INITIATIVES.

       Section 16133(b)(1)(B) of title 10, United States Code, is 
     amended by inserting ``or the period beginning on October 1, 
     2007, and ending on September 30, 2014,'' after ``December 
     31, 2001,''.

     SEC. 530. TIME LIMIT FOR USE OF EDUCATIONAL ASSISTANCE 
                   BENEFIT FOR CERTAIN MEMBERS OF RESERVE 
                   COMPONENTS AND RESUMPTION OF BENEFIT.

       (a) Modification of Time Limit for Use of Benefit.--
       (1) Modification.--Section 16164(a) of title 10, United 
     States Code, is amended by striking ``this chapter while 
     serving--'' and all that follows and inserting ``this 
     chapter--
       ``(1) while the member is serving--
       ``(A) in the Selected Reserve of the Ready Reserve, in the 
     case of a member called or ordered to active service while 
     serving in the Selected Reserve; or
       ``(B) in the Ready Reserve, in the case of a member ordered 
     to active duty while serving in the Ready Reserve (other than 
     the Selected Reserve); and
       ``(2) in the case of a person who separates from the 
     Selected Reserve of the Ready Reserve after completion of a 
     period of active service described in section 16163 of this 
     title and completion of a service contract under other than 
     dishonorable conditions, during the 10-year period beginning 
     on the date on which the person separates from the Selected 
     Reserve.''.
       (2) Conforming amendment.--Paragraph (2) of section 
     16165(a) of such title is amended to read as follows:
       ``(2) when the member separates from the Ready Reserve as 
     provided in section 16164(a)(1) of this title, or upon 
     completion of the period provided for in section 16164(a)(2) 
     of this title, as applicable.''.
       (b) Reclaiming Benefit for Members Reentering Service.--
     Section 16165(b) of such title is amended by striking ``of 
     not more than 90 days'' after ``who incurs a break in service 
     in the Selected Reserve''.
       (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 (Public Law 108-375), 
     to which such amendments relate.

     SEC. 531. SECRETARY OF DEFENSE EVALUATION OF THE ADEQUACY OF 
                   THE DEGREE-GRANTING AUTHORITIES OF CERTAIN 
                   MILITARY UNIVERSITIES AND EDUCATIONAL 
                   INSTITUTIONS.

       (a) Evaluation Required.--The Secretary of Defense shall 
     carry out an evaluation of the degree-granting authorities 
     provided by title 10, United States Code, to the academic 
     institutions specified in subsection (b). The evaluation 
     shall assess whether the current process, under which each 
     degree conferred by each institution must have a statutory 
     authorization, remains adequate, appropriate, and responsive 
     enough to meet emerging military service education 
     requirements.
       (b) Specified Institutions.--The academic institutions 
     covered by subsection (a) are the following:
       (1) The National Defense University.
       (2) The Army War College and the United States Army Command 
     and General Staff College.
       (3) The United States Naval War College.
       (4) The United States Naval Postgraduate School.
       (5) Air University and the United States Air Force 
     Institute of Technology.
       (6) The Marine Corps University.
       (c) Report.--Not later than April 1, 2008, 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 evaluation. The report shall 
     include the results of the evaluation and any recommendations 
     for changes to policy or law that the Secretary considers 
     appropriate.

[[Page 32549]]



     SEC. 532. REPORT ON SUCCESS OF ARMY NATIONAL GUARD AND 
                   RESERVE SENIOR RESERVE OFFICERS' TRAINING CORPS 
                   FINANCIAL ASSISTANCE PROGRAM.

       (a) Report Required.--Not later than 150 days after the 
     date of the enactment of this Act, the Secretary of the Army 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report on the 
     success of the financial assistance program of the Senior 
     Reserve Officers' Training Corps under section 2107a of title 
     10, United States Code, in securing the appointment of second 
     lieutenants in the Army Reserve and Army National Guard. The 
     report shall include detailed information on the appointment 
     of cadets under the financial assistance program who are 
     enrolled in an educational institution described in 
     subsection (b) and address the efforts of the Secretary to 
     increase awareness of the availability and advantages of 
     appointment in the Senior Reserve Officers' Training Corps at 
     these institutions and to increase the number of cadets at 
     these institutions.
       (b) Covered Educational Institutions.--The educational 
     institutions referred to in subsection (a) are the following:
       (1) An historically Black college or university that is a 
     part B institution, as defined in section 322(2) of the 
     Higher Education Act of 1965 (20 U.S.C. 1061(2)).
       (2) A minority institution, as defined in section 365(3) of 
     that Act (20 U.S.C. 1067k(3)).
       (3) An Hispanic-serving institution, as defined in section 
     502(a)(5) of that Act (20 U.S.C. 1101a(a)(5)).

     SEC. 533. REPORT ON UTILIZATION OF TUITION ASSISTANCE BY 
                   MEMBERS OF THE ARMED FORCES.

       (a) Reports Required.--Not later than April 1, 2008, the 
     Secretary of each military department shall submit to the 
     congressional defense committees a report on the utilization 
     of tuition assistance by members of the Armed Forces, whether 
     in the regular components of the Armed Forces or the reserve 
     components of the Armed Forces, under the jurisdiction of 
     such military department during fiscal year 2007.
       (b) Elements.--The report with respect to a military 
     department under subsection (a) shall include the following:
       (1) Information on the policies of such military department 
     for fiscal year 2007 regarding utilization of, and limits on, 
     tuition assistance by members of the Armed Forces under the 
     jurisdiction of such military department, including an 
     estimate of the number of members of the reserve components 
     of the Armed Forces under the jurisdiction of such military 
     department whose requests for tuition assistance during that 
     fiscal year were unfunded.
       (2) Information on the policies of such military department 
     for fiscal year 2007 regarding funding of tuition assistance 
     for each of the regular components of the Armed Forces and 
     each of the reserve components of the Armed Forces under the 
     jurisdiction of such military department.

     SEC. 534. NAVY JUNIOR RESERVE OFFICERS' TRAINING CORPS UNIT 
                   FOR SOUTHOLD, MATTITUCK, AND GREENPORT HIGH 
                   SCHOOLS.

       For purposes of meeting the requirements of section 2031(b) 
     of title 10, United States Code, the Secretary of the Navy 
     may and, to the extent the schools request, shall treat any 
     two or more of the following schools (all in Southold, 
     Suffolk County, New York) as a single institution:
       (1) Southold High School.
       (2) Mattituck High School.
       (3) Greenport High School.

     SEC. 535. REPORT ON TRANSFER OF ADMINISTRATION OF CERTAIN 
                   EDUCATIONAL ASSISTANCE PROGRAMS FOR MEMBERS OF 
                   THE RESERVE COMPONENTS.

       (a) Report Required.--Not later than September 1, 2008, the 
     Secretary of Defense, in cooperation with the Secretary of 
     Veterans Affairs, shall submit to the congressional defense 
     committees and the Committees on Veterans Affairs of the 
     Senate and House of Representatives a report on the 
     feasibility and merits of transferring the administration of 
     the educational assistance programs for members of the 
     reserve components contained in chapters 1606 and 1607 of 
     title 10, United States Code, from the Department of Defense 
     to the Department of Veterans Affairs.
       (b) Elements of Report.--The report shall specifically 
     address the following:
       (1) A discussion of the history and purpose of the 
     educational assistance benefits under chapters 1606 and 1607 
     of title 10, United States Code, and the data most recently 
     available, as of the date of the enactment of this Act, 
     relating to the cost of providing such benefits and the 
     projected costs of providing such benefits over the ten-year 
     period beginning on the such date.
       (2) The effect of a transfer of administrative jurisdiction 
     on the delivery of educational assistance benefits to members 
     of the reserve components.
       (3) The effect of a transfer of administrative jurisdiction 
     on Department of Defense efforts relating to recruiting, 
     retention, and compensation, including bonuses, special pays, 
     and incentive pays.
       (4) The extent to which educational assistance benefits 
     influence the decision of a person to join a reserve 
     component.
       (5) The extent to which the educational assistance benefits 
     available under chapter 1606 of title 10, United States Code, 
     affect retention rates, including statistics showing how many 
     members remain in the reserve components in order to continue 
     to receive education benefits under such chapter.
       (6) The extent to which the educational assistance benefits 
     available under chapter 1607 of title 10, United States Code, 
     affect retention rates, including statistics showing how many 
     members remain in the reserve components in order to continue 
     to receive education benefits under such chapter.
       (7) The practical and budgetary issues involved in a 
     transfer of administrative jurisdiction, including a 
     discussion of the cost of equating the educational assistance 
     benefits for members of the active and reserve components.
       (8) Any recommendations of the Secretary for legislation to 
     enhance or improve the delivery of educational assistance 
     benefits for members of the reserve components.
       (9) The feasibility and likely effects of transferring the 
     administration of the educational assistance programs for 
     members of the reserve components contained in chapters 1606 
     and 1607 of title 10, United States Code, from the Department 
     of Defense to the Department of Veterans Affairs through the 
     recodification of such chapters in title 38, United States 
     Code, as proposed in section 525 of HR 1585 of the 110th 
     Congress, as passed by the House of Representatives, together 
     with any recommendations of the Secretary for improving that 
     section.
       (10) A discussion of the effects and impact of the 
     amendments to chapter 1607 of title 10, United States Code, 
     made by section 530 of this Act, relating to the extension of 
     the time limit for the use of educational assistance benefits 
     under that chapter.
       (c) Reviews of Report.--Before submission of the report to 
     Congress, the Secretary of Defense shall secure the review of 
     the report by the Defense Business Board, in cooperation with 
     the Reserve Forces Policy Board. The Secretary of Veterans 
     Affairs shall secure the review of the report by the Veterans 
     Affairs Advisory Committee on Education. The results of such 
     reviews shall be included as an appendix to the report.
       (d) Comptroller General Review.--Not later than November 1, 
     2008, the Comptroller General shall submit to the 
     congressional committees referred to in subsection (a) an 
     assessment of the report, including a review of the costs 
     inherent in the transfer of administrative jurisdiction and 
     the recruiting and retention data and other assumptions used 
     by the Secretary of Defense in preparing the report. As part 
     of the assessment, the Comptroller General shall solicit 
     responses from the Secretary of Defense and the Secretary of 
     Veterans Affairs.
       Subtitle D--Military Justice and Legal Assistance Matters

     SEC. 541. AUTHORITY TO DESIGNATE CIVILIAN EMPLOYEES OF THE 
                   FEDERAL GOVERNMENT AND DEPENDENTS OF DECEASED 
                   MEMBERS AS ELIGIBLE FOR LEGAL ASSISTANCE FROM 
                   DEPARTMENT OF DEFENSE LEGAL STAFF RESOURCES.

       Section 1044(a) of title 10, United States Code, is amended 
     by adding at the end the following new paragraphs:
       ``(6) Survivors of a deceased member or former member 
     described in paragraphs (1), (2), (3), and (4) who were 
     dependents of the member or former member at the time of the 
     death of the member or former member, except that the 
     eligibility of such survivors shall be determined pursuant to 
     regulations prescribed by the Secretary concerned.
       ``(7) Civilian employees of the Federal Government serving 
     in locations where legal assistance from non-military legal 
     assistance providers is not reasonably available, except that 
     the eligibility of civilian employees shall be determined 
     pursuant to regulations prescribed by the Secretary 
     concerned.''.

     SEC. 542. AUTHORITY OF JUDGES OF THE UNITED STATES COURT OF 
                   APPEALS FOR THE ARMED FORCES TO ADMINISTER 
                   OATHS.

       Section 936 of title 10, United States Code (article 136 of 
     the Uniform Code of Military Justice), is amended by adding 
     at the end the following new subsection:
       ``(c) The judges of the United States Court of Appeals for 
     the Armed Forces may administer the oaths authorized by 
     subsections (a) and (b).''.

     SEC. 543. MODIFICATION OF AUTHORITIES ON SENIOR MEMBERS OF 
                   THE JUDGE ADVOCATE GENERALS' CORPS.

       (a) Department of the Army.--
       (1) Grade of judge advocate general.--Subsection (a) of 
     section 3037 of title 10, United States Code, is amended by 
     striking the third sentence and inserting the following new 
     sentence: ``The Judge Advocate General, while so serving, has 
     the grade of lieutenant general.''.
       (2) Redesignation of assistant judge advocate general as 
     deputy judge advocate general.--Such section is further 
     amended--
       (A) in subsection (a), by striking ``Assistant Judge 
     Advocate General'' each place it appears and inserting 
     ``Deputy Judge Advocate General''; and
       (B) in subsection (d), by striking ``Assistant Judge 
     Advocate General'' and inserting ``Deputy Judge Advocate 
     General''.
       (3) Clerical amendments.--(A) The heading of such section 
     is amended to read as follows:

     ``Sec. 3037. Judge Advocate General, Deputy Judge Advocate 
       General, and general officers of Judge Advocate General's 
       Corps: appointment; duties''.

       (B) The table of sections at the beginning of chapter 305 
     of such title is amended by striking

[[Page 32550]]

     the item relating to section 3037 and inserting the following 
     new item:

``3037. Judge Advocate General, Deputy Judge Advocate General, and 
              general officers of Judge Advocate General's Corps: 
              appointment; duties.''.

       (b) Grade of Judge Advocate General of the Navy.--Section 
     5148(b) of such title is amended by striking the last 
     sentence and inserting the following new sentence: ``The 
     Judge Advocate General, while so serving, has the grade of 
     vice admiral or lieutenant general, as appropriate.''.
       (c) Grade of Judge Advocate General of the Air Force.--
     Section 8037(a) of such title is amended by striking the last 
     sentence and inserting the following new sentence: ``The 
     Judge Advocate General, while so serving, has the grade of 
     lieutenant general.''.
       (d) Increase in Number of Officers Serving in Grades Above 
     Major General and Rear Admiral.--Section 525(b) of such title 
     is amended in paragraphs (1) and (2)(A) by striking ``15.7 
     percent'' each place it appears and inserting ``16.3 
     percent''.
       (e) Legal Counsel to Chairman of the Joint Chiefs of 
     Staff.--
       (1) In general.--Chapter 5 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 156. Legal Counsel to the Chairman of the Joint Chiefs 
       of Staff

       ``(a) In General.--There is a Legal Counsel to the Chairman 
     of the Joint Chiefs of Staff.
       ``(b) Selection for Appointment.--Under regulations 
     prescribed by the Secretary of Defense, the officer selected 
     for appointment to serve as Legal Counsel to the Chairman of 
     the Joint Chiefs of Staff shall be recommended by a board of 
     officers convened by the Secretary of Defense that, insofar 
     as practicable, is subject to the procedures applicable to 
     selection boards convened under chapter 36 of this title.
       ``(c) Grade.--An officer appointed to serve as Legal 
     Counsel to the Chairman of the Joint Chiefs of Staff shall, 
     while so serving, hold the grade of brigadier general or rear 
     admiral (lower half).
       ``(d) Duties.--The Legal Counsel of the Chairman of the 
     Joint Chiefs of Staff shall perform such legal duties in 
     support of the responsibilities of the Chairman of the Joint 
     Chiefs of Staff as the Chairman may prescribe.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 5 of such title is amended by adding at 
     the end the following new item:

``156. Legal Counsel to the Chairman of the Joint Chiefs of Staff''.

       (f) Strategic Plan To Link General and Flag Officer 
     Numbers, Assignments, and Development to the Missions and 
     Requirements of the Department of Defense.--
       (1) Strategic plan required.--The Secretary of Defense 
     shall develop a strategic plan linking the missions and 
     requirements of the Department of Defense for general and 
     flag officers to the statutory limits on the numbers of 
     general and flag officers, and current assignment, promotion, 
     and joint officer development policies for general and flag 
     officers.
       (2) Advice of chairman of joint chiefs of staff.--The 
     Secretary shall develop the strategic plan required under 
     paragraph (1) with the advice of the Chairman of the Joint 
     Chiefs of Staff.
       (3) Matters to be included.--The strategic plan required 
     under paragraph (1) shall include the following:
       (A) A description of the process for identification of the 
     present and emerging requirements for general and flag 
     officers and recommendations for meeting these requirements.
       (B) Identification of the numbers of general and flag 
     officers by service, grade, and qualifications currently 
     available compared with the numbers needed to meet existing 
     statutory requirements in support of the overall missions of 
     the Department of Defense.
       (C) An assessment of the problems or issues (and proposed 
     solutions for any such problems or issues) arising from 
     existing numerical limitations on the number and grade 
     distribution of active and reserve component general and flag 
     officers under sections 525, 526, and 12004 of title 10, 
     United States Code;
       (D) A discussion of how wartime requirements for additional 
     general or flag officers have been addressed in support of 
     Operation Enduring Freedom and Operation Iraqi Freedom, 
     including the usage of wartime or national emergency 
     authorities.
       (E) An assessment of any problems or issues (and proposed 
     solutions for any such problems or issues) arising from 
     existing statutory provisions regarding general and flag 
     officer assignments and grade requirements and the need, if 
     any, for revision of provisions in title 10, United States 
     Code, specific to individual general and flag officer 
     positions along with recommendations to mitigate the need for 
     routine legislative intervention as positions change to 
     support organizational demands.
       (F) An assessment of the use currently being made of 
     reserve component flag and general officers and discussion of 
     barriers to the qualification, selection, and assignment of 
     National Guard and Reserve officers for the broadest possible 
     range of positions of importance and responsibility.
       (4) Deadline for submission.--The Secretary shall submit 
     the plan required under paragraph (1) to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     not later than March 1, 2009.

     SEC. 544. PROHIBITION AGAINST MEMBERS OF THE ARMED FORCES 
                   PARTICIPATING IN CRIMINAL STREET GANGS.

       The Secretary of Defense shall prescribe regulations to 
     prohibit the active participation by members of the Armed 
     Forces in a criminal street gang.
                       Subtitle E--Military Leave

     SEC. 551. TEMPORARY ENHANCEMENT OF CARRYOVER OF ACCUMULATED 
                   LEAVE FOR MEMBERS OF THE ARMED FORCES.

       (a) Temporary Increase in Accumulated Leave Carryover 
     Amount.--Section 701 of title 10, United States Code, is 
     amended--
       (1) in subsection (b), by striking ``subsection (f) and 
     subsection (g)'' and inserting ``subsections (d), (f), and 
     (g)''; and
       (2) by inserting after subsection (c) the following new 
     subsection:
       ``(d) Notwithstanding subsection (b), during the period 
     beginning on October 1, 2008, through December 31, 2010, a 
     member may accumulate up to 75 days of leave.''.
       (b) Conforming Amendments Related to High Deployment 
     Members.--Subsection (f) of such section is amended--
       (1) in paragraph (1)(A), by striking ``any accumulated 
     leave in excess of 60 days at the end of the fiscal year'' 
     and inserting ``at the end of the fiscal year any accumulated 
     leave in excess of the number of days of leave authorized to 
     be accumulated under subsection (b) or (d)'';
       (2) in paragraph (1)(C)--
       (A) by striking ``60 days'' and inserting ``the days of 
     leave authorized to be accumulated under subsection (b) or 
     (d) that are''; and
       (B) by inserting ``(or fourth fiscal year, if accumulated 
     while subsection (d) is in effect)'' after ``third fiscal 
     year''; and
       (3) in paragraph (2), by striking ``except for this 
     paragraph--'' and all that follows through the end of the 
     paragraph and inserting ``except for this paragraph, would 
     lose at the end of that fiscal year any accumulated leave in 
     excess of the number of days of leave authorized to be 
     accumulated under subsection (b) or (d), shall be permitted 
     to retain such leave until the end of the second fiscal year 
     after the fiscal year in which such service on active duty is 
     terminated.''.
       (c) Conforming Amendment Related to Members in Missing 
     Status.--Subsection (g) of such section is amended by 
     striking ``60-day limitation in subsection (b) and the 90-day 
     limitation in subsection (f)'' and inserting ``limitations in 
     subsections (b), (d), and (f)''.
       (d) Pay.--Section 501(b) of title 37, United States Code, 
     is amended by adding at the end the following new paragraph:
       ``(6) An enlisted member of the armed forces who would lose 
     accumulated leave in excess of 120 days of leave under 
     section 701(f)(1) of title 10 may elect to be paid in cash or 
     by a check on the Treasurer of the United States for any 
     leave in excess so accumulated for up to 30 days of such 
     leave. A member may make an election under this paragraph 
     only once.''.

     SEC. 552. ENHANCEMENT OF REST AND RECUPERATION LEAVE.

       Section 705(b)(2) of title 10, United States Code, is 
     amended by inserting ``for members whose qualifying tour of 
     duty is 12 months or less, or for not more than 20 days for 
     members whose qualifying tour of duty is longer than 12 
     months,'' after ``for not more than 15 days''.
                   Subtitle F--Decorations and Awards

     SEC. 561. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF 
                   HONOR TO LESLIE H. SABO, JR., FOR ACTS OF VALOR 
                   DURING THE VIETNAM WAR.

       (a) Authorization.--Notwithstanding the time limitations 
     specified in section 3744 of title 10, United States Code, or 
     any other time limitation with respect to the awarding of 
     certain medals to persons who served in the Armed Forces, the 
     President is authorized and requested to award the Medal of 
     Honor under section 3741 of such title to Leslie H. Sabo, 
     Jr., for the acts of valor during the Vietnam War described 
     in subsection (b).
       (b) Acts of Valor Described.--The acts of valor referred to 
     in subsection (a) are the actions of Leslie H. Sabo, Jr., on 
     May 10, 1970, as a member of the United States Army serving 
     in the grade of Specialist Four in the Republic of Vietnam 
     with Company B of the 3d Battalion, 506th Infantry Regiment, 
     101st Airborne Division.

     SEC. 562. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF 
                   HONOR TO HENRY SVEHLA FOR ACTS OF VALOR DURING 
                   THE KOREAN WAR.

       (a) Authorization.--Notwithstanding the time limitations 
     specified in section 3744 of title 10, United States Code, or 
     any other time limitation with respect to the awarding of 
     certain medals to persons who served in the Armed Forces, the 
     President is authorized and requested to award the Medal of 
     Honor under section 3741 of such title to Henry Svehla for 
     the acts of valor described in subsection (b).
       (b) Acts of Valor Described.--The acts of valor referred to 
     in subsection (a) are the actions of Henry Svehla on June 12, 
     1952, as a member of the United States Army serving in the 
     grade of Private First Class in Korea with Company F of the 
     32d Infantry Regiment, 7th Infantry Division.

     SEC. 563. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF 
                   HONOR TO WOODROW W. KEEBLE FOR ACTS OF VALOR 
                   DURING THE KOREAN WAR.

       (a) Waiver of Time Limitations.--Notwithstanding the time 
     limitations specified in section 3744 of title 10, United 
     States Code, or any other time limitation with respect to the 
     awarding of

[[Page 32551]]

     certain medals to persons who served in the Armed Forces, the 
     President is authorized and requested to award the Medal of 
     Honor under section 3741 of such title to Woodrow W. Keeble 
     for the acts of valor described in subsection (b).
       (b) Acts of Valor Described.--The acts of valor referred to 
     in subsection (a) are the actions of Woodrow W. Keeble of the 
     United States Army as an acting platoon leader on October 20, 
     1950, during the Korean War.

     SEC. 564. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF 
                   HONOR TO PRIVATE PHILIP G. SHADRACH FOR ACTS OF 
                   VALOR AS ONE OF ANDREWS' RAIDERS DURING THE 
                   CIVIL WAR.

       (a) Authorization.--Notwithstanding the time limitations 
     specified in section 3744 of title 10, United States Code, or 
     any other time limitation with respect to the awarding of 
     certain medals to persons who served in the Armed Forces, the 
     President is authorized and requested to award the Medal of 
     Honor under section 3741 of such title posthumously to 
     Private Philip G. Shadrach of Company K, 2nd Ohio Volunteer 
     Infantry Regiment for the acts of valor described in 
     subsection (b).
       (b) Acts of Valor Described.--The acts of valor referred to 
     in subsection (a) are the actions of Philip G. Shadrach as 
     one of Andrews' Raiders during the Civil War on April 12, 
     1862.

     SEC. 565. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF 
                   HONOR TO PRIVATE GEORGE D. WILSON FOR ACTS OF 
                   VALOR AS ONE OF ANDREWS' RAIDERS DURING THE 
                   CIVIL WAR.

       (a) Authorization.--The President is authorized and 
     requested to award the Medal of Honor under section 3741 of 
     title 10, United States Code, posthumously to Private George 
     D. Wilson of Company B, 2nd Ohio Volunteer Infantry Regiment 
     for the acts of valor described in subsection (b).
       (b) Acts of Valor Described.--The acts of valor referred to 
     in subsection (a) are the actions of George D. Wilson as one 
     of Andrews' Raiders during the Civil War on April 12, 1862.
     Subtitle G--Impact Aid and Defense Dependents Education System

     SEC. 571. 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, $30,000,000 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. 572. 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. 573. INCLUSION OF DEPENDENTS OF NON-DEPARTMENT OF 
                   DEFENSE EMPLOYEES EMPLOYED ON FEDERAL PROPERTY 
                   IN PLAN RELATING TO FORCE STRUCTURE CHANGES, 
                   RELOCATION OF MILITARY UNITS, OR BASE CLOSURES 
                   AND REALIGNMENTS.

       Section 574(e)(3) of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364; 
     120 Stat. 2227; 20 U.S.C. 7703b note) is amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(C) elementary and secondary school students who are 
     dependents of personnel who are not members of the Armed 
     Forces or civilian employees of the Department of Defense but 
     who are employed on Federal property.''.

     SEC. 574. PAYMENT OF PRIVATE BOARDING SCHOOL TUITION FOR 
                   MILITARY DEPENDENTS IN OVERSEAS AREAS NOT 
                   SERVED BY DEFENSE DEPENDENTS' EDUCATION SYSTEM 
                   SCHOOLS.

       Section 1407(b)(1) of the Defense Dependents' Education Act 
     of 1978 (20 U.S.C. 926(b)(1)) is amended by inserting after 
     the first sentence the following new sentence: ``Schools to 
     which tuition may be paid under this subsection may include 
     private boarding schools in the United States.''.
                     Subtitle H--Military Families

     SEC. 581. DEPARTMENT OF DEFENSE MILITARY FAMILY READINESS 
                   COUNCIL AND POLICY AND PLANS FOR MILITARY 
                   FAMILY READINESS.

       (a) In General.--Subchapter I of chapter 88 of title 10, 
     United States Code, is amended by inserting after section 
     1781 the following new sections:

     ``Sec. 1781a. Department of Defense Military Family Readiness 
       Council

       ``(a) In General.--There is in the Department of Defense 
     the Department of Defense Military Family Readiness Council 
     (in this section referred to as the `Council').
       ``(b) Members.--(1) The Council shall consist of the 
     following members:
       ``(A) The Under Secretary of Defense for Personnel and 
     Readiness, who shall serve as chair of the Council.
       ``(B) One representative of each of the Army, Navy, Marine 
     Corps, and Air Force, who shall be appointed by the Secretary 
     of Defense.
       ``(C) Three individuals appointed by the Secretary of 
     Defense from among representatives of military family 
     organizations, including military family organizations of 
     families of members of the regular components and of families 
     of members of the reserve components.
       ``(D) In addition to the representatives appointed under 
     subparagraph (B), the senior enlisted advisors of the Army, 
     Navy, Marine Corps, and Air Force, or the spouse of a senior 
     enlisted member from each of the Army, Navy, Marine Corps, 
     and Air Force.
       ``(2) The term on the Council of the members appointed 
     under paragraph (1)(C) shall be three years.
       ``(c) Meetings.--The Council shall meet not less often than 
     twice each year.
       ``(d) Duties.--The duties of the Council shall include the 
     following:
       ``(1) To review and make recommendations to the Secretary 
     of Defense regarding the policy and plans required under 
     section 1781b of this title.
       ``(2) To monitor requirements for the support of military 
     family readiness by the Department of Defense.
       ``(3) To evaluate and assess the effectiveness of the 
     military family readiness programs and activities of the 
     Department of Defense.
       ``(e) Annual Reports.--(1) Not later than February 1 each 
     year, the Council shall submit to the Secretary of Defense 
     and the congressional defense committees a report on military 
     family readiness.
       ``(2) Each report under this subsection shall include the 
     following:
       ``(A) An assessment of the adequacy and effectiveness of 
     the military family readiness programs and activities of the 
     Department of Defense during the preceding fiscal year in 
     meeting the needs and requirements of military families.
       ``(B) Recommendations on actions to be taken to improve the 
     capability of the military family readiness programs and 
     activities of the Department of Defense to meet the needs and 
     requirements of military families, including actions relating 
     to the allocation of funding and other resources to and among 
     such programs and activities.

     ``Sec. 1781b. Department of Defense policy and plans for 
       military family readiness

       ``(a) Policy and Plans Required.--The Secretary of Defense 
     shall develop a policy and plans for the Department of 
     Defense for the support of military family readiness.
       ``(b) Purposes.--The purposes of the policy and plans 
     required under subsection (a) are as follows:
       ``(1) To ensure that the military family readiness programs 
     and activities of the Department of Defense are 
     comprehensive, effective, and properly supported.
       ``(2) To ensure that support is continuously available to 
     military families in peacetime and in war, as well as during 
     periods of force structure change and relocation of military 
     units.
       ``(3) To ensure that the military family readiness programs 
     and activities of the Department of Defense are available to 
     all military families, including military families of members 
     of the regular components and military families of members of 
     the reserve components.
       ``(4) To make military family readiness an explicit element 
     of applicable Department of Defense plans, programs, and 
     budgeting activities, and that achievement of military family 
     readiness is expressed through Department-wide goals that are 
     identifiable and measurable.
       ``(5) To ensure that the military family readiness programs 
     and activities of the Department of Defense undergo 
     continuous evaluation in order to ensure that resources are 
     allocated and expended for such programs and activities to 
     achieve Department-wide family readiness goals.
       ``(c) Elements of Policy.--The policy required under 
     subsection (a) shall include the following elements:
       ``(1) A list of military family readiness programs and 
     activities.
       ``(2) Department of Defense-wide goals for military family 
     support, including joint programs, both for military families 
     of members of the regular components and military families of 
     members of the reserve components.
       ``(3) Policies on access to military family support 
     programs and activities based on military family populations 
     served and geographical location.
       ``(4) Metrics to measure the performance and effectiveness 
     of the military family readiness programs and activities of 
     the Department of Defense.
       ``(5) A summary, by fiscal year, of the allocation of funds 
     (including appropriated funds and

[[Page 32552]]

     nonappropriated funds) for major categories of military 
     family readiness programs and activities of the Department of 
     Defense, set forth for each of the military departments and 
     for the Office of the Secretary of Defense.
       ``(d) Annual Report.--Not later than March 1, 2008, and 
     each year thereafter, the Secretary of Defense shall submit 
     to the congressional defense committees a report on the plans 
     required under subsection (a) for the five-fiscal year period 
     beginning with the fiscal year in which the report is 
     submitted. Each report shall include the plans covered by the 
     report and an assessment of the discharge by the Department 
     of Defense of the previous plans submitted under this 
     section.''.
       (b) Report on Military Family Readiness Policy.--Not later 
     than February 1, 2009, the Secretary of Defense shall submit 
     to the congressional defense committees a report setting 
     forth the policy developed under section 1781b of title 10, 
     United States Code, as added by subsection (a).
       (c) Surveys of Military Families.--Section 1782 of title 
     10, United States Code, is amended by adding at the end the 
     following new subsection:
       ``(d) Survey Required for Fiscal Year 2010.--
     Notwithstanding subsection (a), during fiscal year 2010, the 
     Secretary of Defense shall conduct a survey otherwise 
     authorized under such subsection. Thereafter, additional 
     surveys may be conducted not less often than once every three 
     fiscal years.''.
       (d) Clerical Amendment.--The table of sections at the 
     beginning of subchapter I of chapter 88 of such title is 
     amended by inserting after the item relating to section 1781 
     the following new items:

``1781a. Department of Defense Military Family Readiness Council.
``1781b. Department of Defense policy and plans for military family 
              readiness.''.

     SEC. 582. YELLOW RIBBON REINTEGRATION PROGRAM.

       (a) Establishment of Program.--The Secretary of Defense 
     shall establish a national combat veteran reintegration 
     program to provide National Guard and Reserve members and 
     their families with sufficient information, services, 
     referral, and proactive outreach opportunities throughout the 
     entire deployment cycle. This program shall be known as the 
     Yellow Ribbon Reintegration Program.
       (b) Purpose of Program; Deployment Cycle.--The Yellow 
     Ribbon Reintegration Program shall consist of informational 
     events and activities for members of the reserve components 
     of the Armed Forces, their families, and community members to 
     facilitate access to services supporting their health and 
     well-being through the four phases of the deployment cycle:
       (1) Pre-Deployment.
       (2) Deployment.
       (3) Demobilization.
       (4) Post-Deployment-Reconstitution.
       (c) Executive Agent.--The Secretary shall designate the 
     Under Secretary of Defense for Personnel and Readiness as the 
     Department of Defense executive agent for the Yellow Ribbon 
     Reintegration Program.
       (d) Office for Reintegration Programs.--
       (1) Establishment.--The Under Secretary of Defense for 
     Personnel and Readiness shall establish the Office for 
     Reintegration Programs within the Office of the Secretary of 
     Defense. The office shall administer all reintegration 
     programs in coordination with State National Guard 
     organizations. The office shall be responsible for 
     coordination with existing National Guard and Reserve family 
     and support programs. The Directors of the Army National 
     Guard and Air National Guard and the Chiefs of the Army 
     Reserve, Marine Corps Reserve, Navy Reserve, and Air Force 
     Reserve may appoint liaison officers to coordinate with the 
     permanent office staff. The office may also enter into 
     partnerships with other public entities, including the 
     Department of Health and Human Services, Substance Abuse and 
     the Mental Health Services Administration, for access to 
     necessary substance abuse and mental health treatment 
     services from local State-licensed service providers.
       (2) Center for excellence in reintegration.--The Office for 
     Reintegration Programs shall establish a Center for 
     Excellence in Reintegration within the office. The Center 
     shall collect and analyze ``lessons learned'' and suggestions 
     from State National Guard and Reserve organizations with 
     existing or developing reintegration programs. The Center 
     shall also assist in developing training aids and briefing 
     materials and training representatives from State National 
     Guard and Reserve organizations.
       (e) Advisory Board.--
       (1) Appointment.--The Secretary of Defense shall appoint an 
     advisory board to analyze the Yellow Ribbon Reintegration 
     Program and report on areas of success and areas for 
     necessary improvements. The advisory board shall include the 
     Director of the Army National Guard, the Director of the Air 
     National Guard, Chiefs of the Army Reserve, Marine Corps 
     Reserve, Navy Reserve, and Air Force Reserve, the Assistant 
     Secretary of Defense for Reserve Affairs, an Adjutant General 
     on a rotational basis as determined by the Chief of the 
     National Guard Bureau, and any other Department of Defense, 
     Federal Government agency, or outside organization as 
     determined by the Secretary of Defense. The members of the 
     advisory board may designate representatives in their stead.
       (2) Schedule.--The advisory board shall meet on a schedule 
     determined by the Secretary of Defense.
       (3) Initial reporting requirement.--The advisory board 
     shall issue internal reports as necessary and shall submit an 
     initial report to the Committees on Armed Services of the 
     Senate and House of Representatives not later than 180 days 
     after the end of the one-year period beginning on the date of 
     the establishment of the Office for Reintegration Programs. 
     The report shall contain--
       (A) an evaluation of the implementation of the Yellow 
     Ribbon Reintegration Program by State National Guard and 
     Reserve organizations;
       (B) an assessment of any unmet resource requirements; and
       (C) recommendations regarding closer coordination between 
     the Office of Reintegration Programs and State National Guard 
     and Reserve organizations.
       (4) Annual reports.--The advisory board shall submit annual 
     reports to the Committees on Armed Services of the Senate and 
     the House of Representatives following the initial report by 
     the first week in March of subsequent years following the 
     initial report.
       (f) State Deployment Cycle Support Teams.--The Office for 
     Reintegration Programs may employ personnel to administer the 
     Yellow Ribbon Reintegration Program at the State level. The 
     primary function of team members shall be--
       (1) to implement the reintegration curriculum through the 
     deployment cycle described in subsection (g);
       (2) to obtain necessary service providers; and
       (3) to educate service providers regarding the unique 
     military nature of the reintegration program.
       (g) Operation of Program Through Deployment Cycle.--
       (1) In general.--The Office for Reintegration Programs 
     shall analyze the demographics, placement of State Family 
     Assistance Centers and their resources before a mobilization 
     alert is issued to affected State National Guard and Reserve 
     organizations. The Office of Reintegration Programs shall 
     consult with affected State National Guard and Reserve 
     organizations following the issuance of a mobilization alert 
     and implement the reintegration events in accordance with the 
     Reintegration Program phase model.
       (2) Pre-deployment phase.--The Pre-Deployment Phase shall 
     constitute the time from first notification of mobilization 
     until deployment of the mobilized National Guard or Reserve 
     unit. Events and activities shall focus on providing 
     education and ensuring the readiness of members of the unit, 
     their families, and affected communities for the rigors of a 
     combat deployment.
       (3) Deployment phase.--The Deployment Phase shall 
     constitute the period from deployment of the mobilized 
     National Guard or Reserve unit until the unit arrives at a 
     demobilization station inside the continental United States. 
     Events and services provided shall focus on the challenges 
     and stress associated with separation and having a member in 
     a combat zone. Information sessions shall utilize State 
     National Guard and Reserve resources in coordination with the 
     Employer Support of Guard and Reserve Office, Transition 
     Assistance Advisors, and the State Family Programs Director.
       (4) Demobilization phase.--
       (A) In general.--The Demobilization Phase shall constitute 
     the period from arrival of the National Guard or Reserve unit 
     at the demobilization station until its departure for home 
     station.
       (B) Initial reintegration activity.--The purpose of this 
     reintegration program is to educate members about the 
     resources that are available to them and to connect members 
     to service providers who can assist them in overcoming the 
     challenges of reintegration.
       (5) Post-deployment-reconstitution phase.--
       (A) In general.--The Post-Deployment-Reconstitution Phase 
     shall constitute the period from arrival at home station 
     until 180 days following demobilization. Activities and 
     services provided shall focus on reconnecting members with 
     their families and communities and providing resources and 
     information necessary for successful reintegration. 
     Reintegration events shall begin with elements of the Initial 
     Reintegration Activity program that were not completed during 
     the Demobilization Phase.
       (B) 30-day, 60-day, and 90-day reintegration activities.--
     The State National Guard and Reserve organizations shall hold 
     reintegration activities at the 30-day, 60-day, and 90-day 
     interval following demobilization. These activities shall 
     focus on reconnecting members and their families with the 
     service providers from the Initial Reintegration Activity to 
     ensure that members and their families understand what 
     benefits they are entitled to and what resources are 
     available to help them overcome the challenges of 
     reintegration. The Reintegration Activities shall also 
     provide a forum for members and their families to address 
     negative behaviors related to combat stress and transition.
       (C) Member pay.--Members shall receive appropriate pay for 
     days spent attending the Reintegration Activities at the 30-
     day, 60-day, and 90-day intervals.
       (h) Outreach Services.--As part of the Yellow Ribbon 
     Reintegration Program, the Office for Reintegration Programs 
     may develop programs of outreach to members of the Armed 
     Forces and their family members to educate such members and 
     their family members about the assistance and services 
     available to them under the Yellow Ribbon Reintegration 
     Program. Such

[[Page 32553]]

     assistance and services may include the following:
       (1) Marriage counseling.
       (2) Services for children.
       (3) Suicide prevention.
       (4) Substance abuse awareness and treatment.
       (5) Mental health awareness and treatment.
       (6) Financial counseling.
       (7) Anger management counseling.
       (8) Domestic violence awareness and prevention.
       (9) Employment assistance.
       (10) Preparing and updating family care plans.
       (11) Development of strategies for living with a member of 
     the Armed Forces with post traumatic stress disorder or 
     traumatic brain injury.
       (12) Other services that may be appropriate to address the 
     unique needs of members of the Armed Forces and their 
     families who live in rural or remote areas with respect to 
     family readiness and servicemember reintegration.
       (13) Assisting members of the Armed Forces and their 
     families find and receive assistance with military family 
     readiness and servicemember reintegration, including referral 
     services.
       (14) Development of strategies and programs that recognize 
     the need for long-term follow-up services for reintegrating 
     members of the Armed Forces and their families for extended 
     periods following deployments, including between deployments.
       (15) Assisting members of the Armed Forces and their 
     families in receiving services and assistance from the 
     Department of Veterans Affairs, including referral services.

     SEC. 583. STUDY TO ENHANCE AND IMPROVE SUPPORT SERVICES AND 
                   PROGRAMS FOR FAMILIES OF MEMBERS OF REGULAR AND 
                   RESERVE COMPONENTS UNDERGOING DEPLOYMENT.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a study to determine the most effective means to enhance and 
     improve family support programs for families of deployed 
     members of the regular and reserve components of the Armed 
     Forces before, during, and after deployment. The study shall 
     also take into account the potential to utilize non-
     governmental and local private sector entities and other 
     Federal agencies having expertise in health and well-being of 
     families, including family members who are children, infants, 
     or toddlers.
       (b) Elements.--The study shall include at a minimum the 
     following:
       (1) The assessment of the types of information on health 
     care and mental health benefits and services and other 
     community resources that should be made available to members 
     of the regular and reserve components and their families, 
     including--
       (A) crisis services;
       (B) marriage and family counseling; and
       (C) financial counseling.
       (2) An assessment of means to improve support to the 
     parents and caretakers of military dependent children in 
     order to mitigate any adverse effects of the deployment of 
     members on such children, including consideration of the 
     following:
       (A) The need to develop materials for parents and other 
     caretakers of children to assist in responding to the effects 
     of such deployment on children, including extended and 
     multiple deployments and reunion (and the death or injury of 
     members during such deployment), and the role that parents 
     and caretakers can play in addressing or mitigating such 
     effects.
       (B) The potential best practices that are identified which 
     build psychological and emotional resiliency in children in 
     coping with deployment.
       (C) The potential to improve dissemination throughout the 
     Armed Forces of the most effective practices for outreach, 
     training, and building psychological and emotional resiliency 
     in children.
       (D) The effectiveness of training materials for education, 
     mental health, health, and family support professionals who 
     provide services to parents and caretakers of military 
     dependent children.
       (E) The requirement to develop programs and activities to 
     increase awareness throughout the military and civilian 
     communities of the effects of deployment of a military spouse 
     or guardians for such children and their families and to 
     increase collaboration within such communities to address and 
     mitigate such effects.
       (F) The development of training for early child care and 
     education, mental health, health care, and family support 
     professionals to enhance the awareness of such professionals 
     of their role in assisting families in addressing and 
     mitigating the adverse implications of such deployment.
       (G) The conduct of research on best practices for building 
     psychological and emotional resiliency in such children in 
     coping with the deployment of such members.
       (3) An assessment of the effectiveness of family-to-family 
     support programs--
       (A) in providing peer support for families of deployed 
     members of the regular and reserve components;
       (B) in identifying and preventing family problems in such 
     families;
       (C) in reducing adverse outcomes for children of such 
     families, including poor academic performance, behavioral 
     problems, stress, and anxiety;
       (D) in improving family readiness and post deployment 
     transition for such families; and
       (E) in utilizing spouses of members of the Armed Forces as 
     counselors for families of deployed members, in order to 
     assist such families in coping before, during, and after the 
     deployment, and the best practices for training spouses of 
     members of the Armed Forces to act as counselors for families 
     of deployed members.
       (4) An assessment of the effectiveness of transition 
     assistance programs and policies for families of members 
     during post-deployment transition from a combat zone back to 
     civilian or military communities--
       (A) in identifying signs and symptoms of mental health 
     conditions for both service member and their families; and
       (B) in receiving information and resources available within 
     the local communities to ease transition.
       (5) An assessment of the impact of multiple overseas 
     deployments of members on their families, particularly in the 
     case of members serving in Operation Iraqi Freedom and 
     Operation Enduring Freedom, including financial impacts and 
     emotional impacts.
       (6) An assessment of the most effective timing of providing 
     information and support to the families of deployed members 
     before, during, and after deployment, including at least six 
     months after the date of return of deployed members.
       (7) An assessment of the need for additional long-term 
     research on the effects of multiple wartime deployments on 
     families, including children, and critical areas of focus 
     that should be addressed by such research.
       (c) Report on Results of Study.--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 containing the results of the study conducted under 
     subsection (a).

     SEC. 584. PROTECTION OF CHILD CUSTODY ARRANGEMENTS FOR 
                   PARENTS WHO ARE MEMBERS OF THE ARMED FORCES 
                   DEPLOYED IN SUPPORT OF A CONTINGENCY OPERATION.

       (a) Protection of Servicemembers Against Default 
     Judgments.--Section 201(a) of the Servicemembers Civil Relief 
     Act (50 U.S.C. App. 521(a)) is amended by inserting ``, 
     including any child custody proceeding,'' after 
     ``proceeding''.
       (b) Stay of Proceedings When Servicemember Has Notice.--
     Section 202(a) of the Servicemembers Civil Relief Act (50 
     U.S.C. App. 522(a)) is amended by inserting ``, including any 
     child custody proceeding,'' after ``civil action or 
     proceeding''.

     SEC. 585. FAMILY LEAVE IN CONNECTION WITH INJURED MEMBERS OF 
                   THE ARMED FORCES.

       (a) Servicemember Family Leave.--
       (1) Definitions.--Section 101 of the Family and Medical 
     Leave Act of 1993 (29 U.S.C. 2611) is amended by adding at 
     the end the following new paragraphs:
       ``(14) Active duty.--The term `active duty' means duty 
     under 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.
       ``(15) Contingency operation.--The term `contingency 
     operation' has the same meaning given such term in section 
     101(a)(13) of title 10, United States Code.
       ``(16) Covered servicemember.--The term `covered 
     servicemember' means a member of the Armed Forces, including 
     a member of the National Guard or Reserves, who is undergoing 
     medical treatment, recuperation, or therapy, is otherwise in 
     outpatient status, or is otherwise on the temporary 
     disability retired list, for a serious injury or illness.
       ``(17) Outpatient status.--The term `outpatient status', 
     with respect to a covered servicemember, means the status of 
     a member of the Armed Forces assigned to--
       ``(A) a military medical treatment facility as an 
     outpatient; or
       ``(B) a unit established for the purpose of providing 
     command and control of members of the Armed Forces receiving 
     medical care as outpatients.
       ``(18) Next of kin.--The term `next of kin', used with 
     respect to an individual, means the nearest blood relative of 
     that individual.
       ``(19) Serious injury or illness.--The term `serious injury 
     or illness', in the case of a member of the Armed Forces, 
     including a member of the National Guard or Reserves, means 
     an injury or illness incurred by the member in line of duty 
     on active duty in the Armed Forces that may render the member 
     medically unfit to perform the duties of the member's office, 
     grade, rank, or rating.''.
       (2) Entitlement to leave.--Section 102(a) of such Act (29 
     U.S.C. 2612(a)) is amended--
       (A) in paragraph (1), by adding at the end the following 
     new subparagraph:
       ``(E) Because of any qualifying exigency (as the Secretary 
     shall, by regulation, determine) arising out of the fact that 
     the spouse, or a son, daughter, or parent of the employee is 
     on active duty (or has been notified of an impending call or 
     order to active duty) in the Armed Forces in support of a 
     contingency operation.''; and
       (B) by adding at the end the following new paragraphs:
       ``(3) Servicemember family leave.--Subject to section 103, 
     an eligible employee who is the spouse, son, daughter, 
     parent, or next of kin of a covered servicemember shall be 
     entitled to a total of 26 workweeks of leave during a 12-
     month period to care for the servicemember. The leave 
     described in this paragraph shall only be available during a 
     single 12-month period.
       ``(4) Combined leave total.--During the single 12-month 
     period described in paragraph (3), an eligible employee shall 
     be entitled to a combined total of 26 workweeks of leave 
     under paragraphs (1) and (3). Nothing in this paragraph shall 
     be construed to limit the availability of leave under 
     paragraph (1) during any other 12-month period.''.

[[Page 32554]]

       (3) Requirements relating to leave.--
       (A) Schedule.--Section 102(b) of such Act (29 U.S.C. 
     2612(b)) is amended--
       (i) in paragraph (1), in the second sentence--

       (I) by striking ``section 103(b)(5)'' and inserting 
     ``subsection (b)(5) or (f) (as appropriate) of section 103''; 
     and
       (II) by inserting ``or under subsection (a)(3)'' after 
     ``subsection (a)(1)'';

       (ii) in paragraph (1), by inserting after the second 
     sentence the following new sentence: ``Subject to subsection 
     (e)(3) and section 103(f), leave under subsection (a)(1)(E) 
     may be taken intermittently or on a reduced leave 
     schedule.''; and
       (iii) in paragraph (2), by inserting ``or under subsection 
     (a)(3)'' after ``subsection (a)(1)''.
       (B) Substitution of paid leave.--Section 102(d) of such Act 
     (29 U.S.C. 2612(d)) is amended--
       (i) in paragraph (1)--

       (I) by inserting ``(or 26 workweeks in the case of leave 
     provided under subsection (a)(3))'' after ``12 workweeks'' 
     the first place it appears; and
       (II) by inserting ``(or 26 workweeks, as appropriate)'' 
     after ``12 workweeks'' the second place it appears;

       (ii) in paragraph (2)(A), by striking ``or (C)'' and 
     inserting ``(C), or (E)''; and
       (iii) in paragraph (2)(B), by adding at the end the 
     following: ``An eligible employee may elect, or an employer 
     may require the employee, to substitute any of the accrued 
     paid vacation leave, personal leave, family leave, or medical 
     or sick leave of the employee for leave provided under 
     subsection (a)(3) for any part of the 26-week period of such 
     leave under such subsection, except that nothing in this 
     title requires an employer to provide paid sick leave or paid 
     medical leave in any situation in which the employer would 
     not normally provide any such paid leave.''.
       (C) Notice.--Section 102(e) of such Act (29 U.S.C. 2612(e)) 
     is amended--
       (i) in paragraph (2), by inserting ``or under subsection 
     (a)(3)'' after ``subsection (a)(1)''; and
       (ii) by adding at the end the following new paragraph:
       ``(3) Notice for leave due to active duty of family 
     member.--In any case in which the necessity for leave under 
     subsection (a)(1)(E) is foreseeable, whether because the 
     spouse, or a son, daughter, or parent, of the employee is on 
     active duty, or because of notification of an impending call 
     or order to active duty in support of a contingency 
     operation, the employee shall provide such notice to the 
     employer as is reasonable and practicable.''.
       (D) Spouses employed by same employer.--Section 102(f) of 
     such Act (29 U.S.C. 2612(f)) is amended--
       (i) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), and aligning the margins of the 
     subparagraphs with the margins of section 102(e)(2)(A);
       (ii) by striking ``In any'' and inserting the following:
       ``(1) In general.--In any''; and
       (iii) by adding at the end the following:
       ``(2) Servicemember family leave.--
       ``(A) In general.--The aggregate number of workweeks of 
     leave to which both that husband and wife may be entitled 
     under subsection (a) may be limited to 26 workweeks during 
     the single 12-month period described in subsection (a)(3) if 
     the leave is--
       ``(i) leave under subsection (a)(3); or
       ``(ii) a combination of leave under subsection (a)(3) and 
     leave described in paragraph (1).
       ``(B) Both limitations applicable.--If the leave taken by 
     the husband and wife includes leave described in paragraph 
     (1), the limitation in paragraph (1) shall apply to the leave 
     described in paragraph (1).''.
       (E) Certification requirements.--Section 103 of such Act 
     (29 U.S.C. 2613) is amended--
       (i) in subsection (a)--

       (I) by striking ``section 102(a)(1)'' and inserting 
     ``paragraph (1) or paragraph (3) of section 102(a)''; and
       (II) by inserting ``or of the next of kin of an individual 
     in the case of leave taken under such paragraph (3),'' after 
     ``parent of the employee,''; and

       (ii) by adding at the end the following:
       ``(f) Certification Related to Active Duty or Call to 
     Active Duty.--An employer may require that a request for 
     leave under section 102(a)(1)(E) be supported by a 
     certification issued at such time and in such manner as the 
     Secretary may by regulation prescribe. If the Secretary 
     issues a regulation requiring such certification, the 
     employee shall provide, in a timely manner, a copy of such 
     certification to the employer.''.
       (F) Failure to return.--Section 104(c) of such Act (29 
     U.S.C. 2614(c)) is amended--
       (i) in paragraph (2)(B)(i), by inserting ``or under section 
     102(a)(3)'' before the semicolon; and
       (ii) in paragraph (3)(A)--

       (I) in clause (i), by striking ``or'' at the end;
       (II) in clause (ii), by striking the period and inserting 
     ``; or''; and
       (III) by adding at the end the following:

       ``(iii) a certification issued by the health care provider 
     of the servicemember being cared for by the employee, in the 
     case of an employee unable to return to work because of a 
     condition specified in section 102(a)(3).''.
       (G) Enforcement.--Section 107 of such Act (29 U.S.C. 2617) 
     is amended, in subsection (a)(1)(A)(i)(II), by inserting 
     ``(or 26 weeks, in a case involving leave under section 
     102(a)(3))'' after ``12 weeks''.
       (H) Instructional employees.--Section 108 of such Act (29 
     U.S.C. 2618) is amended, in subsections (c)(1), (d)(2), and 
     (d)(3), by inserting ``or under section 102(a)(3)'' after 
     ``section 102(a)(1)''.
       (b) Servicemember Family Leave for Civil Service 
     Employees.--
       (1) Definitions.--Section 6381 of title 5, United States 
     Code, is amended--
       (A) in paragraph (5), by striking ``and'' at the end;
       (B) in paragraph (6), by striking the period and inserting 
     a semicolon; and
       (C) by adding at the end the following:
       ``(7) the term `active duty' means duty under a call or 
     order to active duty under a provision of law referred to in 
     section 101(a)(13)(B) of title 10;
       ``(8) the term `covered servicemember' means a member of 
     the Armed Forces, including a member of the National Guard or 
     Reserves, who is undergoing medical treatment, recuperation, 
     or therapy, is otherwise in an outpatient status, or is 
     otherwise on the temporary disability retired list, for a 
     serious injury or illness;
       ``(9) the term `outpatient status', with respect to a 
     covered servicemember, means the status of a member of the 
     Armed Forces assigned to--
       ``(A) a military medical treatment facility as an 
     outpatient; or
       ``(B) a unit established for the purpose of providing 
     command and control of members of the Armed Forces receiving 
     medical care as outpatients;
       ``(10) the term `next of kin', used with respect to an 
     individual, means the nearest blood relative of that 
     individual; and
       ``(11) the term `serious injury or illness', in the case of 
     a member of the Armed Forces, means an injury or illness 
     incurred by the member in line of duty on active duty in the 
     Armed Forces that may render the member medically unfit to 
     perform the duties of the member's office, grade, rank, or 
     rating.''.
       (2) Entitlement to leave.--Section 6382(a) of such title is 
     amended by adding at the end the following:
       ``(3) Subject to section 6383, an employee who is the 
     spouse, son, daughter, parent, or next of kin of a covered 
     servicemember shall be entitled to a total of 26 
     administrative workweeks of leave during a 12-month period to 
     care for the servicemember. The leave described in this 
     paragraph shall only be available during a single 12-month 
     period.
       ``(4) During the single 12-month period described in 
     paragraph (3), an employee shall be entitled to a combined 
     total of 26 administrative workweeks of leave under 
     paragraphs (1) and (3). Nothing in this paragraph shall be 
     construed to limit the availability of leave under paragraph 
     (1) during any other 12-month period.''.
       (3) Requirements relating to leave.--
       (A) Schedule.--Section 6382(b) of such title is amended--
       (i) in paragraph (1), in the second sentence--

       (I) by striking ``section 6383(b)(5)'' and inserting 
     ``subsection (b)(5) or (f) (as appropriate) of section 
     6383''; and
       (II) by inserting ``or under subsection (a)(3)'' after 
     ``subsection (a)(1)''; and

       (ii) in paragraph (2), by inserting ``or under subsection 
     (a)(3)'' after ``subsection (a)(1)''.
       (B) Substitution of paid leave.--Section 6382(d) of such 
     title is amended by adding at the end the following: ``An 
     employee may elect to substitute for leave under subsection 
     (a)(3) any of the employee's accrued or accumulated annual or 
     sick leave under subchapter I for any part of the 26-week 
     period of leave under such subsection.''.
       (C) Notice.--Section 6382(e) of such title is amended by 
     inserting ``or under subsection (a)(3)'' after ``subsection 
     (a)(1)''.
       (D) Certification.--Section 6383 of such title is amended 
     by adding at the end the following:
       ``(f) An employing agency may require that a request for 
     leave under section 6382(a)(3) be supported by a 
     certification issued at such time and in such manner as the 
     Office of Personnel Management may by regulation 
     prescribe.''.

     SEC. 586. FAMILY CARE PLANS AND DEFERMENT OF DEPLOYMENT OF 
                   SINGLE PARENT OR DUAL MILITARY COUPLES WITH 
                   MINOR DEPENDENTS.

       The Secretary of Defense shall establish appropriate 
     procedures to ensure that an adequate family care plan is in 
     place for a member of the Armed Forces with minor dependents 
     who is a single parent or whose spouse is also a member of 
     the Armed Forces when the member may be deployed in an area 
     for which imminent danger pay is authorized under section 310 
     of title 37, United States Code. Such procedures should allow 
     the member to request a deferment of deployment due to 
     unforeseen circumstances, and the request for such a 
     deferment should be considered and responded to promptly.

     SEC. 587. EDUCATION AND TREATMENT SERVICES FOR MILITARY 
                   DEPENDENT CHILDREN WITH AUTISM.

       (a) Assessment of Availability of Services.--The Secretary 
     of Defense shall conduct a comprehensive assessment of the 
     availability of Federal, State, and local education and 
     treatment services on and in the vicinity of a covered 
     military installation for children of members of the Armed 
     Forces who are diagnosed with autism. This assessment shall 
     include the following:
       (1) The local availability of adequate educational services 
     for children with autism.
       (2) The local availability of adequate medical services for 
     children with autism.
       (3) The local availability of supplemental services for 
     children with autism.
       (4) The ease of access of children with autism to adequate 
     educational services, such as the length of time on waiting 
     lists.

[[Page 32555]]

       (b) Review of Best Practices.--In preparing the assessment 
     under subsection (a), the Secretary of Defense shall conduct 
     a review of best practices in the United States in the 
     provision of covered educational services and treatment 
     services for children with autism, including an assessment of 
     Federal and State education and treatment services for 
     children with autism in each State, with an emphasis on 
     locations where eligible members and eligible dependents 
     reside. The Secretary of Defense shall conduct the review in 
     coordination with the Secretary of Education.
       (c) Personnel Management Requirements.--
       (1) Limited stationing options.--The Secretary of the 
     military department concerned shall ensure that, whenever 
     practicable, eligible members are only assigned to military 
     installations that are identified in the report required by 
     subsection (g)(1).
       (2) Stabilization policy.--The Secretary of the military 
     department concerned shall ensure that, whenever practicable, 
     the families of eligible members residing at a military 
     installation that is identified in such report are permitted 
     to remain at that installation for a period of not less than 
     four years.
       (d) Case Managers and Services.--
       (1) Case managers.--The Secretary of the military 
     department concerned shall ensure that eligible members are 
     assigned case managers for both medical services and covered 
     educational services for eligible dependents, which shall be 
     required under the Exceptional Family Member Program pursuant 
     to the policy established by the Secretary.
       (2) Individualized services plan.--The Secretary of the 
     military department concerned shall provide for the voluntary 
     development for eligible dependents of individualized autism 
     services plans for use by case managers, caregivers, and 
     families to ensure continuity of services throughout the 
     active military service of eligible members.
       (3) Autism support centers.--Secretary of the military 
     department concerned may establish local centers on military 
     installations for the purpose of providing and coordinating 
     autism services for eligible dependents.
       (4) Partnerships and contracts.--The Secretary of the 
     military department concerned is encouraged to enter into 
     partnerships or contracts with other appropriate public and 
     private entities to carry out the responsibilities of this 
     section.
       (e) Demonstration Projects.--
       (1) Projects authorized.--The Secretary of Defense may 
     conduct one or more demonstration projects to evaluate 
     improved approaches to the provision of covered educational 
     services and treatment services to eligible dependents for 
     the purpose of evaluating strategies for integrated treatment 
     and case manager services, including early intervention and 
     diagnosis, medical care, parent involvement, special 
     education services, intensive behavioral intervention, and 
     language, communications, and other interventions considered 
     appropriate by the Secretary.
       (2) Case managers and services plan.--Each demonstration 
     project shall include the assignment of case managers under 
     paragraph (1) of subsection (d) and utilize the services 
     plans prepared for eligible dependents under paragraph (2) of 
     such subsection.
       (3) Supervisory level providers.--The Secretary of Defense 
     may utilize for purposes of the demonstration projects 
     personnel who are professionals with a level (as determined 
     by the Secretary) of post-secondary education that is 
     appropriate for the provision of safe and effective services 
     for autism and who are from an accredited educational 
     facility in the mental health, human development, social 
     work, or education field to act as supervisory level 
     providers of behavioral intervention services for autism. In 
     so acting, such personnel may be authorized--
       (A) to develop and monitor intensive behavior intervention 
     plans for eligible dependents who are participating in the 
     demonstration projects; and
       (B) to provide appropriate training in the provision of 
     approved services to participating eligible dependents.
       (4) Services under corporate services provider model.--In 
     carrying out the demonstration projects, the Secretary of 
     Defense may utilize a corporate services provider model. 
     Employees of a provider under such a model shall include 
     personnel who implement special educational and behavioral 
     intervention plans for eligible dependents that are 
     developed, reviewed, and maintained by supervisory level 
     providers approved by the Secretary. In authorizing such a 
     model, the Secretary shall establish--
       (A) minimum education, training, and experience criteria 
     required to be met by employees who provide services to 
     eligible dependents;
       (B) requirements for supervisory personnel and supervision, 
     including requirements for supervisor credentials and for the 
     frequency and intensity of supervision; and
       (C) such other requirements as the Secretary considers 
     appropriate to ensure safety and the protection of the 
     eligible dependents who receive services from such employees 
     under the demonstration projects.
       (5) Period.--If the Secretary of Defense determines to 
     conduct demonstration projects under this subsection, the 
     Secretary shall commence such demonstration projects not 
     later than 180 days after the date of the enactment of this 
     Act. The demonstration projects shall be conducted for not 
     less than two years.
       (6) Evaluation.--The Secretary of Defense shall conduct an 
     evaluation of each demonstration project conducted under this 
     section. The evaluation shall include the following:
       (A) An assessment of the extent to which the activities 
     under the demonstration project contributed to positive 
     outcomes for eligible dependents.
       (B) An assessment of the extent to which the activities 
     under the demonstration project led to improvements in 
     services and continuity of care for eligible dependents.
       (C) An assessment of the extent to which the activities 
     under the demonstration project improved military family 
     readiness and enhanced military retention.
       (f) Relationship to Other Benefits.--Nothing is this 
     section precludes the eligibility of members of the Armed 
     Forces and their dependents for extended benefits under 
     section 1079 of title 10, United States Code.
       (g) Reports.--
       (1) Report identifying covered military installations.--As 
     a result of the assessment required by subsection (a), the 
     Secretary of Defense shall submit to the congressional 
     defense committees, not later than December 31, 2008, a 
     report identifying those covered military installations that 
     have covered educational services and facilities available 
     (on the installation or in the vicinity of the installation) 
     for eligible dependents that provide special education and 
     related services consistent with the Individuals with 
     Disabilities Education Act (20 U.S.C. 1400 et seq.).
       (2) Reports on demonstration projects.--Not later than 30 
     months after the commencement of any demonstration project 
     under subsection (e), the Secretary of Defense shall submit 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives a report on the demonstration 
     project. The report shall include a description of the 
     project, the results of the evaluation under subsection 
     (e)(6) with respect to the project, and a description of 
     plans for the further provision of services for eligible 
     dependents under the project.
       (h) Covered Educational Services Plan.--After completing 
     the assessment required by subsection (a) and the report 
     required by subsection (g)(1), the Secretary of Defense shall 
     develop a plan that would ensure that all eligible dependents 
     are able to obtain covered educational services. In the event 
     that eligible members are assigned to military installations 
     that are not identified in the report required by subsection 
     (g)(1), the plan should ensure that such eligible dependents 
     are still able to obtain covered educational services, 
     including by the use of authority granted to the Secretary 
     under section 2164 of title 10, United States Code. The plan 
     shall also include any legislative actions that the Secretary 
     recommends to implement the plan and describe what funding or 
     funding mechanisms may be needed to ensure eligible 
     dependents obtain covered educational services. The Secretary 
     shall submit the plan to the congressional defense committees 
     not later than July 1, 2009.
       (i) Definitions.--In this section:
       (1) The term ``autism'' refers to the Autism Spectrum 
     Disorders, which are developmental disabilities that cause 
     substantial impairments in the areas of social interaction, 
     emotional regulation, communication, and the integration of 
     higher-order cognitive processes and are often characterized 
     by the presence of unusual behaviors and interests. The term 
     includes autistic disorder, pervasive developmental disorder 
     (not otherwise specified), and Asperger's syndrome.
       (2) The term ``child'' has the meaning given that term in 
     section 1072 of title 10, United States Code.
       (3) The term ``covered military installation'' means a 
     military installation at which at least 1,000 members of the 
     Armed Forces are assigned who are eligible for an assignment 
     accompanied by dependents.
       (4) The term ``eligible member'' means a member of the 
     Armed Forces who--
       (A) has a dependent child who is diagnosed with autism; and
       (B) is enrolled in an Exceptional Family Member Program of 
     the Department of Defense.
       (5) The term ``eligible dependent'' means a child of an 
     eligible member who is diagnosed with autism.
       (6) 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)), except 
     that the term includes publicly financed schools in 
     communities, Department of Defense domestic dependent 
     elementary and secondary schools, and schools of the defense 
     dependents' education system.
       (7) The term ``covered educational services'' includes 
     behavioral intervention services for autism, such as Applied 
     Behavioral Analysis.

     SEC. 588. COMMENDATION OF EFFORTS OF PROJECT COMPASSION IN 
                   PAYING TRIBUTE TO MEMBERS OF THE ARMED FORCES 
                   WHO HAVE FALLEN IN THE SERVICE OF THE UNITED 
                   STATES.

       (a) Commendation.--Congress, on the behalf of the people of 
     the United States, commends Kaziah M. Hancock and the four 
     other volunteer professional portrait artists of the 
     nonprofit organization known as Project Compassion, as well 
     as the entire Project Compassion organization, for their 
     ongoing efforts to provide, without charge, to the family of 
     each member of the Armed Forces who has died on active duty 
     since September 11, 2001, a museum-quality original oil 
     portrait of the member.
       (b) Sense of Congress.--It is the sense of Congress that 
     the people of the United States

[[Page 32556]]

      owe the deepest gratitude to Kaziah M. Hancock and the 
     members of Project Compassion.
                       Subtitle I--Other Matters

     SEC. 590. UNIFORM PERFORMANCE POLICIES FOR MILITARY BANDS AND 
                   OTHER MUSICAL UNITS.

       (a) In General.--
       (1) Consolidation of separate authorities.--Chapter 49 of 
     title 10, United States Code, is amended by inserting after 
     section 973 the following new section:

     ``Sec. 974. Uniform performance policies for military bands 
       and other musical units

       ``(a) Restrictions on Competition and Remuneration.--Bands, 
     ensembles, choruses, or similar musical units of the armed 
     forces, including individual members of such a unit 
     performing in an official capacity, may not--
       ``(1) engage in the performance of music in competition 
     with local civilian musicians; or
       ``(2) receive remuneration for official performances.
       ``(b) Members Performing in Personal Capacity.--A member of 
     a band, ensemble, chorus, or similar musical unit of the 
     armed forces may engage in the performance of music in the 
     member's personal capacity, as an individual or part of a 
     group, for remuneration or otherwise, if the member--
       ``(1) does not wear a military uniform for the performance;
       ``(2) does not identify himself or herself as a member of 
     the armed forces in connection with the performance; and
       ``(3) complies with all other applicable regulations and 
     standards of conduct.
       ``(c) Recordings.--(1) When authorized pursuant to 
     regulations prescribed by the Secretary of Defense for 
     purposes of this section, bands, ensembles, choruses, or 
     similar musical units of the armed forces may produce 
     recordings for distribution to the public, at a cost not to 
     exceed production and distribution expenses.
       ``(2) Amounts received in payment for recordings 
     distributed to the public under this subsection shall be 
     credited to the appropriation or account providing the funds 
     for the production of such recordings. Any amounts so 
     credited shall be merged with amounts in the appropriation or 
     account to which credited, and shall be available for the 
     same purposes, and subject to the same conditions and 
     limitations, as amounts in such appropriation or account.
       ``(d) Performance of Music in Competition With Local 
     Civilian Musicians Defined.--(1) In this section, the term 
     `performance of music in competition with local civilian 
     musicians' includes performances--
       ``(A) that are more than incidental to events that are not 
     supported solely by appropriated funds and are not free to 
     the public; and
       ``(B) of background, dinner, dance, or other social music 
     at events, regardless of location, that are not supported 
     solely by appropriated funds.
       ``(2) The term does not include performances--
       ``(A) at official Federal Government events that are 
     supported solely by appropriated funds;
       ``(B) at concerts, parades, and other events that are 
     patriotic events or celebrations of national holidays and are 
     free to the public; or
       ``(C) that are incidental, such as short performances of 
     military or patriotic music to open or close events, to 
     events that are not supported solely by appropriated funds, 
     in compliance with applicable rules and regulations.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 973 the following new item:

``974. Uniform performance policies for military bands and other 
              musical units.''.
       (b) Repeal of Separate Service Authorities.--
       (1) Repeal.--Sections 3634, 6223, and 8634 of such title 
     are repealed.
       (2) Table of sections.--(A) The table of sections at the 
     beginning of chapter 349 of such title is amended by striking 
     the item relating to section 3634.
       (B) The table of sections at the beginning of chapter 565 
     of such title is amended by striking the item relating to 
     section 6223.
       (C) The table of sections at the beginning of chapter 849 
     of such title is amended by striking the item relating to 
     section 8634.

     SEC. 591. TRANSPORTATION OF REMAINS OF DECEASED MEMBERS OF 
                   THE ARMED FORCES AND CERTAIN OTHER PERSONS.

       Section 1482(a)(8) of title 10, United States Code, is 
     amended by adding at the end the following new sentence: 
     ``When transportation of the remains includes transportation 
     by aircraft under section 562 of the John Warner National 
     Defense Authorization Act for Fiscal Year 2007 (Public Law 
     109-364; 10 U.S.C. 1482 note), the Secretary concerned shall 
     provide, to the maximum extent practicable, for delivery of 
     the remains by air to the commercial, general aviation, or 
     military airport nearest to the place selected by the 
     designee.''.

     SEC. 592. EXPANSION OF NUMBER OF ACADEMIES SUPPORTABLE IN ANY 
                   STATE UNDER STARBASE PROGRAM.

       Section 2193b(c)(3) of title 10, United States Code, is 
     amended--
       (1) in subparagraph (A), by striking ``more than two 
     academies'' and inserting ``more than four academies''; and
       (2) in subparagraph (B), by striking ``in excess of two'' 
     both places it appears and inserting ``in excess of four''.

     SEC. 593. GIFT ACCEPTANCE AUTHORITY.

       (a) Permanent Authority To Accept Gifts on Behalf of the 
     Wounded.--Section 2601(b) of title 10, United States Code, is 
     amended by striking paragraph (4).
       (b) Limitation on Solicitation of Gifts.--The Secretary of 
     Defense shall prescribe regulations implementing sections 
     2601 and 2608 of title 10, United States Code, that prohibit 
     the solicitation of any gift under such sections by any 
     employee of the Department of Defense if the nature or 
     circumstances of such solicitation would compromise the 
     integrity or the appearance of integrity of any program of 
     the Department of Defense or of any individual involved in 
     such program.

     SEC. 594. CONDUCT BY MEMBERS OF THE ARMED FORCES AND VETERANS 
                   OUT OF UNIFORM DURING HOISTING, LOWERING, OR 
                   PASSING OF UNITED STATES FLAG.

       Section 9 of title 4, United States Code, is amended by 
     striking ``all persons present'' and all that follows through 
     the end of the section and inserting the following: ``all 
     persons present in uniform should render the military salute. 
     Members of the Armed Forces and veterans who are present but 
     not in uniform may render the military salute. All other 
     persons present should face the flag and stand at attention 
     with their right hand over the heart, or if applicable, 
     remove their headdress with their right hand and hold it at 
     the left shoulder, the hand being over the heart. Citizens of 
     other countries present should stand at attention. All such 
     conduct toward the flag in a moving column should be rendered 
     at the moment the flag passes.''.

     SEC. 595. ANNUAL REPORT ON CASES REVIEWED BY NATIONAL 
                   COMMITTEE FOR EMPLOYER SUPPORT OF THE GUARD AND 
                   RESERVE.

       Section 4332 of title 38, United States Code, is amended--
       (1) by redesignating paragraphs (2), (3), (4), (5), and (6) 
     as paragraphs (3), (4), (5), (6), and (7) respectively;
       (2) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) The number of cases reviewed by the Secretary of 
     Defense under the National Committee for Employer Support of 
     the Guard and Reserve of the Department of Defense during the 
     fiscal year for which the report is made.''; and
       (3) in paragraph (5), as so redesignated, by striking 
     ``(2), or (3)'' and inserting ``(2), (3), or (4)''.

     SEC. 596. MODIFICATION OF CERTIFICATE OF RELEASE OR DISCHARGE 
                   FROM ACTIVE DUTY (DD FORM 214).

       The Secretary of Defense, in consultation with the 
     Secretary of Veterans Affairs, shall modify the Certificate 
     of Release or Discharge from Active Duty (DD Form 214) in 
     order to permit a member of the Armed Forces, upon discharge 
     or release from active duty in the Armed Forces, to elect 
     that the DD-214 issued with regard to the member be forwarded 
     to the following:
       (1) The Central Office of the Department of Veterans 
     Affairs in the District of Columbia.
       (2) The appropriate office of the Department of Veterans 
     Affairs for the State or other locality in which the member 
     will first reside after such discharge or release.

     SEC. 597. REPORTS ON ADMINISTRATIVE SEPARATIONS OF MEMBERS OF 
                   THE ARMED FORCES FOR PERSONALITY DISORDER.

       (a) Secretary of Defense Report on Administrative 
     Separations Based on Personality Disorder.--
       (1) Report required.--Not later than April 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 all cases of administrative separation from the 
     Armed Forces of covered members of the Armed Forces on the 
     basis of a personality disorder.
       (2) Elements.--The report required by paragraph (1) shall 
     include the following:
       (A) A statement of the total number of cases, by Armed 
     Force, in which covered members of the Armed Forces have been 
     separated from the Armed Forces on the basis of a personality 
     disorder, and an identification of the various forms of 
     personality disorder forming the basis for such separations.
       (B) A statement of the total number of cases, by Armed 
     Force, in which covered members of the Armed Forces who have 
     served in Iraq and Afghanistan since October 2001 have been 
     separated from the Armed Forces on the basis of a personality 
     disorder, and the identification of the various forms of 
     personality disorder forming the basis for such separations.
       (C) A summary of the policies, by Armed Force, controlling 
     administrative separations of members of the Armed Forces 
     based on personality disorder, and an evaluation of the 
     adequacy of such policies for ensuring that covered members 
     of the Armed Forces who may be eligible for disability 
     evaluation due to mental health conditions are not separated 
     from the Armed Forces on the basis of a personality order.
       (D) A discussion of measures being implemented to ensure 
     that members of the Armed Forces who should be evaluated for 
     disability separation or retirement due to mental health 
     conditions are not processed for separation from the Armed 
     Forces on the basis of a personality disorder, and 
     recommendations regarding how members of the Armed Forces who 
     may have been so separated from the Armed Forces should be 
     provided with expedited review by the applicable board for 
     the correction of military records.
       (b) Comptroller General Report on Policies on 
     Administrative Separation Based on Personality Disorder.--
       (1) Report required.--Not later than June 1, 2008, the 
     Comptroller General shall submit to

[[Page 32557]]

     Congress a report evaluating the policies and procedures of 
     the Department of Defense and of the military departments 
     relating to the separation of members of the Armed Forces 
     based on a personality disorder.
       (2) Elements.--The report required by paragraph (1) shall--
       (A) include an audit of a sampling of cases to determine 
     the validity and clinical efficacy of the policies and 
     procedures referred to in paragraph (1) and the extent, if 
     any, of the divergence between the terms of such policies and 
     procedures and the implementation of such policies and 
     procedures; and
       (B) include a determination by the Comptroller General of 
     whether, and to what extent, the policies and procedures 
     referred to in paragraph (1)--
       (i) deviate from standard clinical diagnostic practices and 
     current clinical standards; and
       (ii) provide adequate safeguards aimed at ensuring that 
     members of the Armed Forces who suffer from mental health 
     conditions (including depression, post-traumatic stress 
     disorder, or traumatic brain injury) resulting from service 
     in a combat zone are not separated from the Armed Forces on 
     the basis of a personality disorder.
       (3) Alternative submission method.--In lieu of submitting a 
     separate report under this subsection, the Comptroller may 
     include the evaluation, audit and determination required by 
     this subsection as part of the study of mental health 
     services required by section 723 of the Ronald W. Reagan 
     National Defense Authorization Act of 2005 (Public Law 108-
     375; 118 Stat. 1989).
       (c) Covered Member of the Armed Forces Defined.--In this 
     section, the term ``covered member of the Armed 
     Forces''includes the following:
       (1) Any member of a regular component of the Armed Forces 
     who has served in Iraq or Afghanistan since October 2001.
       (2) Any member of the Selected Reserve of the Ready Reserve 
     of the Armed Forces who served on active duty in Iraq or 
     Afghanistan since October 2001.

     SEC. 598. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE 
                   VIETNAM WAR.

       (a) Commemorative Program Authorized.--The Secretary of 
     Defense may conduct a program to commemorate the 50th 
     anniversary of the Vietnam War. In conducting the 
     commemorative program, the Secretary shall coordinate, 
     support, and facilitate other programs and activities of the 
     Federal Government, State and local governments, and other 
     persons and organizations in commemoration of the Vietnam 
     War.
       (b) Schedule.--The Secretary of Defense shall determine the 
     schedule of major events and priority of efforts for the 
     commemorative program in order to ensure achievement of the 
     objectives specified in subsection (c).
       (c) Commemorative Activities and Objectives.--The 
     commemorative program may include activities and ceremonies 
     to achieve the following objectives:
       (1) To thank and honor veterans of the Vietnam War, 
     including personnel who were held as prisoners of war or 
     listed as missing in action, for their service and sacrifice 
     on behalf of the United States and to thank and honor the 
     families of these veterans.
       (2) To highlight the service of the Armed Forces during the 
     Vietnam War and the contributions of Federal agencies and 
     governmental and non-governmental organizations that served 
     with, or in support of, the Armed Forces.
       (3) To pay tribute to the contributions made on the home 
     front by the people of the United States during the Vietnam 
     War.
       (4) To highlight the advances in technology, science, and 
     medicine related to military research conducted during the 
     Vietnam War.
       (5) To recognize the contributions and sacrifices made by 
     the allies of the United States during the Vietnam War.
       (d) Names and Symbols.--The Secretary of Defense shall have 
     the sole and exclusive right to use the name ``The United 
     States of America Vietnam War Commemoration'', and such seal, 
     emblems, and badges incorporating such name as the Secretary 
     may lawfully adopt. Nothing in this section may be construed 
     to supersede rights that are established or vested before the 
     date of the enactment of this Act.
       (e) Commemorative Fund.--
       (1) Establishment and administration.--If the Secretary 
     establishes the commemorative program under subsection (a), 
     the Secretary the Treasury shall establish in the Treasury of 
     the United States an account to be known as the ``Department 
     of Defense Vietnam War Commemoration Fund'' (in this section 
     referred to as the ``Fund''). The Fund shall be administered 
     by the Secretary of Defense.
       (2) Use of fund.--The Secretary shall use the assets of the 
     Fund only for the purpose of conducting the commemorative 
     program and shall prescribe such regulations regarding the 
     use of the Fund as the Secretary considers to be necessary.
       (3) Deposits.--There shall be deposited into the Fund--
       (A) amounts appropriated to the Fund;
       (B) proceeds derived from the Secretary's use of the 
     exclusive rights described in subsection (d);
       (C) donations made in support of the commemorative program 
     by private and corporate donors; and
       (D) funds transferred to the Fund by the Secretary from 
     funds appropriated for fiscal year 2008 and subsequent years 
     for the Department of Defense.
       (4) Availability.--Subject to subsection (g)(2), amounts 
     deposited under paragraph (3) shall constitute the assets of 
     the Fund and remain available until expended.
       (5) Budget request.--The Secretary of Defense may establish 
     a separate budget line for the commemorative program. In the 
     budget justification materials submitted by the Secretary in 
     support of the budget of the President for any fiscal year 
     for which the Secretary establishes the separate budget line, 
     the Secretary shall--
       (A) identify and explain any amounts expended for the 
     commemorative program in the fiscal year preceding the budget 
     request;
       (B) identify and explain the amounts being requested to 
     support the commemorative program for the fiscal year of the 
     budget request; and
       (C) present a summary of the fiscal status of the Fund.
       (f) Acceptance of Voluntary Services.--
       (1) Authority to accept services.--Notwithstanding section 
     1342 of title 31, United States Code, the Secretary of 
     Defense may accept from any person voluntary services to be 
     provided in furtherance of the commemorative program. The 
     Secretary of Defense shall prohibit the solicitation of any 
     voluntary services if the nature or circumstances of such 
     solicitation would compromise the integrity or the appearance 
     of integrity of any program of the Department of Defense or 
     of any individual involved in the program.
       (2) Reimbursement of incidental expenses.--The Secretary 
     may provide for reimbursement of incidental expenses incurred 
     by a person providing voluntary services under this 
     subsection. The Secretary shall determine which expenses are 
     eligible for reimbursement under this paragraph.
       (g) Final Report.--
       (1) Report required.--Not later than 60 days after the end 
     of the commemorative program, if established by the Secretary 
     of Defense under subsection (a), the Secretary shall submit 
     to Congress a report containing an accounting of--
       (A) all of the funds deposited into and expended from the 
     Fund;
       (B) any other funds expended under this section; and
       (C) any unobligated funds remaining in the Fund.
       (2) Treatment of unobligated funds.--Unobligated amounts 
     remaining in the Fund as of the end of the commemorative 
     period specified in subsection (b) shall be held in the Fund 
     until transferred by law.
       (h) Limitation on Expenditures.--Total expenditures from 
     the Fund, using amounts appropriated to the Department of 
     Defense, may not exceed $5,000,000 for fiscal year 2008 or 
     for any subsequent fiscal year to carry out the commemorative 
     program.
       (i) Funding.--Of the amount authorized to be appropriated 
     pursuant to section 301(5) for Defense-wide activities, 
     $1,000,000 shall be available for deposit in the Fund for 
     fiscal year 2008 if the Fund is established under subsection 
     (e).

     SEC. 599. RECOGNITION OF MEMBERS OF THE MONUMENTS, FINE ARTS, 
                   AND ARCHIVES PROGRAM OF THE CIVIL AFFAIRS AND 
                   MILITARY GOVERNMENT SECTIONS OF THE ARMED 
                   FORCES DURING AND FOLLOWING WORLD WAR II.

       Congress hereby--
       (1) recognizes the men and women who served in the 
     Monuments, Fine Arts, and Archives program (MFAA) under the 
     Civil Affairs and Military Government Sections of the United 
     States Armed Forces for their heroic role in the 
     preservation, protection, and restitution of monuments, works 
     of art, and other artifacts of inestimable cultural 
     importance in Europe and Asia during and following World War 
     II;
       (2) recognizes that without their dedication and service, 
     many more of the world's artistic and historic treasures 
     would have been destroyed or lost forever amidst the chaos 
     and destruction of World War II;
       (3) acknowledges that the detailed catalogues, 
     documentation, inventories, and photographs developed and 
     compiled by MFAA personnel during and following World War II, 
     have made, and continue to make, possible the restitution of 
     stolen works of art to their rightful owners; and
       (4) commends and extols the members of the MFAA for 
     establishing a precedent for action to protect cultural 
     property in the event of armed conflict, and by their action 
     setting a standard not just for one country, but for people 
     of all nations to acknowledge and uphold.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2008 increase in military basic pay.
Sec. 602. Basic allowance for housing for reserve component members 
              without dependents who attend accession training while 
              maintaining a primary residence.
Sec. 603. Extension and enhancement of authority for temporary lodging 
              expenses for members of the Armed Forces in areas subject 
              to major disaster declaration or for installations 
              experiencing sudden increase in personnel levels.
Sec. 604. Income replacement payments for reserve component members 
              experiencing extended and frequent mobilization for 
              active duty service.
Sec. 605. Midmonth payment of basic pay for contributions of members of 
              the uniformed services participating in Thrift Savings 
              Plan.

[[Page 32558]]

           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. Increase in incentive special pay and multiyear retention 
              bonus for medical officers.
Sec. 616. Increase in dental officer additional special pay.
Sec. 617. Increase in maximum monthly rate of hardship duty pay and 
              authority to provide hardship duty pay in a lump sum.
Sec. 618. Definition of sea duty for career sea pay to include service 
              as off-cycle crewmembers of multi-crew ships.
Sec. 619. Reenlistment bonus for members of the Selected Reserve.
Sec. 620. Availability of Selected Reserve accession bonus for persons 
              who previously served in the Armed Forces for a short 
              period.
Sec. 621. Availability of nuclear officer continuation pay for officers 
              with more than 26 years of commissioned service.
Sec. 622. Waiver of years-of-service limitation on receipt of critical 
              skills retention bonus.
Sec. 623. Accession bonus for participants in the Armed Forces Health 
              Professions Scholarship and Financial Assistance Program.
Sec. 624. Payment of assignment incentive pay for Reserve members 
              serving in combat zone for more than 22 months.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Payment of inactive duty training travel costs for certain 
              Selected Reserve members.
Sec. 632. Survivors of deceased members eligible for transportation to 
              attend burial ceremonies.
Sec. 633. Allowance for participation of Reserves in electronic 
              screening.
Sec. 634. Allowance for civilian clothing for members of the Armed 
              Forces traveling in connection with medical evacuation.
Sec. 635. Payment of moving expenses for Junior Reserve Officers' 
              Training Corps instructors in hard-to-fill positions.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Expansion of combat-related special compensation eligibility.
Sec. 642. Inclusion of veterans with service-connected disabilities 
              rated as total by reason of unemployability under 
              termination of phase-in of concurrent receipt of retired 
              pay and veterans' disability compensation.
Sec. 643. Recoupment of annuity amounts previously paid, but subject to 
              offset for dependency and indemnity compensation.
Sec. 644. Special survivor indemnity allowance for persons affected by 
              required Survivor Benefit Plan annuity offset for 
              dependency and indemnity compensation.
Sec. 645. Modification of authority of members of the Armed Forces to 
              designate recipients for payment of death gratuity.
Sec. 646. Clarification of application of retired pay multiplier 
              percentage to members of the uniformed services with over 
              30 years of service.
Sec. 647. 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.
Sec. 648. Computation of years of service for purposes of retired pay 
              for non-regular service.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 651. Authority to continue commissary and exchange benefits for 
              certain involuntarily separated members of the Armed 
              Forces.
Sec. 652. Authorization of installment deductions from pay of employees 
              of nonappropriated fund instrumentalities to collect 
              indebtedness to the United States.

  Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus 
                              Authorities

Sec. 661. Consolidation of special pay, incentive pay, and bonus 
              authorities of the uniformed services.
Sec. 662. Transitional provisions.

                       Subtitle G--Other Matters

Sec. 671. Referral bonus authorities.
Sec. 672. Expansion of education loan repayment program for members of 
              the Selected Reserve.
Sec. 673. Ensuring entry into United States after time abroad for 
              permanent resident alien military spouses and children.
Sec. 674. Overseas naturalization for military spouses and children.
Sec. 675. Modification of amount of back pay for members of Navy and 
              Marine Corps selected for promotion while interned as 
              prisoners of war during World War II to take into account 
              changes in Consumer Price Index.
                     Subtitle A--Pay and Allowances

     SEC. 601. FISCAL YEAR 2008 INCREASE IN MILITARY BASIC PAY.

       (a) Waiver of Section 1009 Adjustment.--The adjustment to 
     become effective during fiscal year 2008 required by section 
     1009 of title 37, United States Code, in the rates of monthly 
     basic pay authorized members of the uniformed services shall 
     not be made.
       (b) Increase in Basic Pay.--Effective on January 1, 2008, 
     the rates of monthly basic pay for members of the uniformed 
     services are increased by 3.5 percent.

     SEC. 602. BASIC ALLOWANCE FOR HOUSING FOR RESERVE COMPONENT 
                   MEMBERS WITHOUT DEPENDENTS WHO ATTEND ACCESSION 
                   TRAINING WHILE MAINTAINING A PRIMARY RESIDENCE.

       (a) Availability of Allowance.--Section 403(g)(1) of title 
     37, United States Code, is amended--
       (1) by inserting ``to attend accession training,'' after 
     ``active duty'' the first place it appears; and
       (2) by inserting a comma after ``contingency operation'' 
     the first place it appears.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply with respect to months beginning on or after the 
     date of the enactment of this Act.

     SEC. 603. EXTENSION AND ENHANCEMENT OF AUTHORITY FOR 
                   TEMPORARY LODGING EXPENSES FOR MEMBERS OF THE 
                   ARMED FORCES IN AREAS SUBJECT TO MAJOR DISASTER 
                   DECLARATION OR FOR INSTALLATIONS EXPERIENCING 
                   SUDDEN INCREASE IN PERSONNEL LEVELS.

       (a) Maximum Period of Receipt of Expenses.--Section 
     404a(c)(3) of title 37, United States Code, is amended by 
     striking ``20 days'' and inserting ``60 days''.
       (b) Extension of Authority for Increase in Certain BAH.--
     Section 403(b)(7)(E) of such title is amended by striking 
     ``December 31, 2008'' and inserting ``December 31, 2009''.

     SEC. 604. INCOME REPLACEMENT PAYMENTS FOR RESERVE COMPONENT 
                   MEMBERS EXPERIENCING EXTENDED AND FREQUENT 
                   MOBILIZATION FOR ACTIVE DUTY SERVICE.

       (a) Clarification Regarding When Payments Required.--
     Subsection (a) of section 910 of title 37, United States 
     Code, is amended by inserting before the period at the end of 
     the first sentence the following: ``, when the total monthly 
     military compensation of the member is less than the average 
     monthly civilian income of the member''.
       (b) Eligibility.--Subsection (b) of such section is amended 
     to read as follows:
       ``(b) Eligibility.--(1) A member of a reserve component is 
     entitled to a payment under this section for any full month 
     of active duty of the member, when the total monthly military 
     compensation of the member is less than the average monthly 
     civilian income of the member, while the member is on active 
     duty under an involuntary mobilization order, following the 
     date on which the member--
       ``(A) completes 547 continuous days of service on active 
     duty under an involuntary mobilization order;
       ``(B) completes 730 cumulative days on active duty under an 
     involuntary mobilization order during the previous 1,826 
     days; or
       ``(C) is involuntarily mobilized for service on active duty 
     for a period of 180 days or more within 180 days after the 
     date of the member's separation from a previous period of 
     active duty for a period of 180 days or more.
       ``(2) The entitlement of a member of a reserve component to 
     a payment under this section also shall commence or, if 
     previously commenced under paragraph (1), shall continue if 
     the member--
       ``(A) satisfies the required number of days on active duty 
     specified in subparagraph (A) or (B) of paragraph (1) or was 
     involuntarily mobilized as provided in subparagraph (C) of 
     such paragraph; and
       ``(B) is retained on active duty under subparagraph (A) or 
     (B) of section 12301(h)(1) of title 10 because of an injury 
     or illness incurred or aggravated while the member was 
     assigned to duty in an area for which special pay under 
     section 310 of this title is available.''.
       (c) Termination of Authority.--Subsection (g) of such 
     section is amended to read as follows:
       ``(g) Termination.--No payment shall be made to a member 
     under this section for months beginning after December 31, 
     2008, unless the entitlement of the member to payments under 
     this section commenced on or before that date.''.

     SEC. 605. MIDMONTH PAYMENT OF BASIC PAY FOR CONTRIBUTIONS OF 
                   MEMBERS OF THE UNIFORMED SERVICES PARTICIPATING 
                   IN THRIFT SAVINGS PLAN.

       (a) Semi-Monthly Deposit of Member's Contributions.--
     Section 1014 of title 37, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(c) With respect to a member of the uniformed services 
     who has elected to participate in

[[Page 32559]]

     the Thrift Savings Plan under section 211 of this title, 
     subsection (a) does not preclude the payment of an amount 
     equal to one-half of the monthly deposit to the Thrift 
     Savings Fund otherwise to be made by the member in 
     participating in the Plan, which amount may be deposited in 
     the Thrift Savings Fund at midmonth.''.
       (b) Semi-Monthly Repayment of Borrowed Amounts.--Section 
     211 of such title is amended by adding at the end the 
     following new subsection:
       ``(e) Repayment of Amounts Borrowed From Member Account.--
     If a loan is issued to a member under section 8433(g) of 
     title 5 from funds in the member's account in the Thrift 
     Savings Plan, repayment of the loan may be required on the 
     same semi-monthly basis as authorized for contributions to 
     the Thrift Savings Fund on behalf of the member under section 
     1014(c) of this title.''.
           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, 2007'' and inserting ``December 31, 2008''.
       (b) Selected Reserve Affiliation or Enlistment Bonus.--
     Section 308c(i) of such title is amended by striking 
     ``December 31, 2007'' and inserting ``December 31, 2008''.
       (c) Special Pay for Enlisted Members Assigned to Certain 
     High Priority Units.--Section 308d(c) of such title is 
     amended by striking ``December 31, 2007'' and inserting 
     ``December 31, 2008''.
       (d) Ready Reserve Enlistment Bonus for Persons Without 
     Prior Service.--Section 308g(f)(2) of such title is amended 
     by striking ``December 31, 2007'' and inserting ``December 
     31, 2008''.
       (e) Ready Reserve Enlistment and Reenlistment Bonus for 
     Persons With Prior Service.--Section 308h(e) of such title is 
     amended by striking ``December 31, 2007'' and inserting 
     ``December 31, 2008''.
       (f) Selected Reserve Enlistment Bonus for Persons With 
     Prior Service.--Section 308i(f) of such title is amended by 
     striking ``December 31, 2007'' and inserting ``December 31, 
     2008''.

     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, 2007'' and inserting ``December 31, 
     2008''.
       (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, 
     2008'' and inserting ``January 1, 2009''.
       (c) Accession Bonus for Registered Nurses.--Section 
     302d(a)(1) of title 37, United States Code, is amended by 
     striking ``December 31, 2007'' and inserting ``December 31, 
     2008''.
       (d) Incentive Special Pay for Nurse Anesthetists.--Section 
     302e(a)(1) of such title is amended by striking ``December 
     31, 2007'' and inserting ``December 31, 2008''.
       (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, 2007'' and 
     inserting ``December 31, 2008''.
       (f) Accession Bonus for Dental Officers.--Section 
     302h(a)(1) of such title is amended by striking ``December 
     31, 2007'' and inserting ``December 31, 2008''.
       (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) 
     of such title is amended by striking ``December 31, 2007'' 
     and inserting ``December 31, 2008''.
       (h) Accession Bonus for Medical Officers in Critically 
     Short Wartime Specialties.--Section 302k(f) of such title is 
     amended by striking ``December 31, 2007'' and inserting 
     ``December 31, 2008''.
       (i) Accession Bonus for Dental Specialist Officers in 
     Critically Short Wartime Specialties.--Section 302l(g) of 
     such title is amended by striking ``December 31, 2007'' and 
     inserting ``December 31, 2008''.

     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(f) of title 37, United 
     States Code, is amended by striking ``December 31, 2007'' and 
     inserting ``December 31, 2008''.
       (b) Nuclear Career Accession Bonus.--Section 312b(c) of 
     such title is amended by striking ``December 31, 2007'' and 
     inserting ``December 31, 2008''.
       (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
     of such title is amended by striking ``December 31, 2007'' 
     and inserting ``December 31, 2008''.

     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, 2007'' and inserting ``December 31, 2008''.
       (b) Reenlistment Bonus for Active Members.--Section 308(g) 
     of such title is amended by striking ``December 31, 2007'' 
     and inserting ``December 31, 2008''.
       (c) Enlistment Bonus.--Section 309(e) of such title is 
     amended by striking ``December 31, 2007'' and inserting 
     ``December 31, 2008''.
       (d) 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, 2007'' and 
     inserting ``December 31, 2008''.
       (e) Accession Bonus for New Officers in Critical Skills.--
     Section 324(g) of such title is amended by striking 
     ``December 31, 2007'' and inserting ``December 31, 2008''.
       (f) Incentive Bonus for Conversion to Military Occupational 
     Specialty to Ease Personnel Shortage.--Section 326(g) of such 
     title is amended by striking ``December 31, 2007'' and 
     inserting ``December 31, 2008''.
       (g) Accession Bonus for Officer Candidates.--Section 330(f) 
     of such title is amended by striking ``December 31, 2007'' 
     and inserting ``December 31, 2008''.
       (h) Prohibition on Charges for Meals Received at Military 
     Treatment Facilities by Members Receiving Continuous Care.--
     Section 402(h)(3) of such title is amended by striking 
     ``December 31, 2007'' and inserting ``December 31, 2008''.

     SEC. 615. INCREASE IN INCENTIVE SPECIAL PAY AND MULTIYEAR 
                   RETENTION BONUS FOR MEDICAL OFFICERS.

       (a) Incentive Special Pay.--Section 302(b)(1) of title 37, 
     United States Code, is amended by striking ``$50,000'' and 
     inserting ``$75,000''.
       (b) Multiyear Retention Bonus.--Section 301d(a)(2) of title 
     37, United States Code, is amended by striking ``$50,000'' 
     and inserting ``$75,000''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to agreements entered into under 
     section 301d(a) or 302b(c) of title 37, United States Code, 
     on or after the date of the enactment of this Act.

     SEC. 616. INCREASE IN DENTAL OFFICER ADDITIONAL SPECIAL PAY.

       (a) Increase.--Section 302b(a)(4) of title 37, United 
     States Code, is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``at the following rates'' and inserting ``at a rate 
     determined by the Secretary concerned, which rate may not 
     exceed the following'';
       (2) in subparagraph (A), by striking ``$4,000'' and 
     inserting ``$10,000''; and
       (3) in subparagraph (B), by striking ``$6,000'' and 
     inserting ``$12,000''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to agreements entered into under 
     section 302b(b) of title 37, United States Code, on or after 
     the date of the enactment of this Act.

     SEC. 617. INCREASE IN MAXIMUM MONTHLY RATE OF HARDSHIP DUTY 
                   PAY AND AUTHORITY TO PROVIDE HARDSHIP DUTY PAY 
                   IN A LUMP SUM.

       Section 305 of title 37, United States Code, is amended to 
     read as follows:

     ``Sec. 305. Special pay: hardship duty pay

       ``(a) Special Pay Authorized.--A member of a uniformed 
     service who is entitled to basic pay may be paid special pay 
     under this section while the member is performing duty that 
     is designated by the Secretary of Defense as hardship duty.
       ``(b) Payment on Monthly or Lump Sum Basis.--Special pay 
     payable under this section may be paid on a monthly basis or 
     in a lump sum.
       ``(c) Maximum Rate or Amount.--(1) The monthly rate of 
     special pay payable to a member under this section may not 
     exceed $1,500.
       ``(2) The amount of the lump sum payment of special pay 
     payable to a member under this section may not exceed the 
     product of--
       ``(A) the maximum monthly rate in effect under paragraph 
     (1) at the time the member qualifies for payment of special 
     pay under this section; and
       ``(B) the number of months during which the member will be 
     performing the designated hardship duty.
       ``(d) Relationship to Other Pay and Allowances.--Special 
     pay paid to a member under this section is in addition to any 
     other pay and allowances to which the member is entitled.
       ``(e) Repayment.--A member who is paid special pay in a 
     lump sum under this section, but who fails to perform the 
     designated hardship duty during the months included in the 
     calculation of the amount of the lump sum under subsection 
     (c)(2), shall be subject to the repayment provisions of 
     section 303a(e) of this title.
       ``(f) Regulations.--The Secretary of Defense shall 
     prescribe regulations for the payment of hardship duty pay 
     under this section, including the specific monthly rates at 
     which the special pay will be available.''.

     SEC. 618. DEFINITION OF SEA DUTY FOR CAREER SEA PAY TO 
                   INCLUDE SERVICE AS OFF-CYCLE CREWMEMBERS OF 
                   MULTI-CREW SHIPS.

       Section 305a(e)(1)(A) of title 37, United States Code, is 
     amended--
       (1) by striking ``or'' at the end of clause (ii); and
       (2) by adding at the end the following new clause:
       ``(iv) while serving as an off-cycle crewmember of a multi-
     crewed ship; or''.

     SEC. 619. REENLISTMENT BONUS FOR MEMBERS OF THE SELECTED 
                   RESERVE.

       (a) Minimum Term of Reenlistment or Enlistment Extension.--
     Subsection (a)(2) of 308b of title 37, United States Code, is 
     amended by striking ``his enlistment for a period of three 
     years or for a period of six years'' and inserting ``an 
     enlistment for a period of at least three years''.
       (b) Maximum Bonus Amount.--Subsection (b)(1) of such 
     section is amended by striking ``may not exceed'' and all 
     that follows through

[[Page 32560]]

     the end of the paragraph and inserting ``may not exceed 
     $15,000.''.
       (c) Conforming Amendments Regarding Eligibility 
     Requirements.--Subsection (c) of such section is amended--
       (1) by striking the subsection heading and all that follows 
     through ``(2) In the case'' and inserting ``Waiver of 
     Condition on Eligibility.--In the case''; and
       (2) by striking ``paragraph (1)(B) or''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to reenlistments or extensions of 
     enlistment that occur on or after the date of the enactment 
     of this Act.

     SEC. 620. AVAILABILITY OF SELECTED RESERVE ACCESSION BONUS 
                   FOR PERSONS WHO PREVIOUSLY SERVED IN THE ARMED 
                   FORCES FOR A SHORT PERIOD.

       Section 308c(c)(1) of title 37, United States Code, is 
     amended by inserting before the semicolon the following: ``or 
     has served in the armed forces, but was released from such 
     service before completing the basic training requirements of 
     the armed force of which the person was a member and the 
     service was characterized as either honorable or 
     uncharacterized''.

     SEC. 621. AVAILABILITY OF NUCLEAR OFFICER CONTINUATION PAY 
                   FOR OFFICERS WITH MORE THAN 26 YEARS OF 
                   COMMISSIONED SERVICE.

       (a) Increase.--Section 312 of title 37, United States Code, 
     is amended--
       (1) in subsection (a)(3), by striking ``26 years'' and 
     inserting ``30 years''; and
       (2) in subsection (e)(1), by striking ``the end of 26 years 
     of commissioned service'' and inserting ``the maximum number 
     of years of commissioned service authorized by subsection 
     (a)(3)''.
       (b) Effect on Existing Agreements.--The Secretary of the 
     Navy and an officer of the naval service who is a party to an 
     agreement under section 312 of title 37, United States Code, 
     that was entered into before the date of the enactment of 
     this Act may revise the agreement to reflect the new 
     limitation on the number of years of commissioned service 
     that the officer may serve while remaining eligible for 
     special pay under such section.

     SEC. 622. WAIVER OF YEARS-OF-SERVICE LIMITATION ON RECEIPT OF 
                   CRITICAL SKILLS RETENTION BONUS.

       Section 323(e) of title 37, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(4) The Secretary of Defense, or the Secretary of 
     Homeland Security with respect to the Coast Guard when it is 
     not operating as a service in the Navy, may waive the 
     limitations in paragraph (1) with respect to a member who, 
     during the period of active duty or service in an active 
     status in a reserve component for which the bonus is being 
     offered, is assigned duties in a skill designated as critical 
     under subsection (b)(1). The authority to grant a waiver 
     under this paragraph may not be delegated below the Under 
     Secretary of Defense for Personnel and Readiness or the 
     Deputy Secretary of the Department of Homeland Security.''.

     SEC. 623. ACCESSION BONUS FOR PARTICIPANTS IN THE ARMED 
                   FORCES HEALTH PROFESSIONS SCHOLARSHIP AND 
                   FINANCIAL ASSISTANCE PROGRAM.

       (a) Accession Bonus Authorized.--Subchapter I of chapter 
     105 of title 10, United States Code, is amended by adding at 
     the end the following new section:

     ``Sec. 2128. Accession bonus for members of the program

       ``(a) Availability of Bonus.--The Secretary of Defense may 
     offer a person who enters into an agreement under section 
     2122(a)(2) of this title an accession bonus of not more than 
     $20,000 as part of the agreement.
       ``(b) Relation to Other Payments.--An accession bonus paid 
     a person under this section is in addition to any other 
     amounts payable to the person under this subchapter.
       ``(c) Repayment.--A person who receives an accession bonus 
     under this section, but fails to comply with the agreement 
     under section 2122(a)(2) of this title or to commence or 
     complete the active duty obligation imposed by section 2123 
     of this title, shall be subject to the repayment provisions 
     of section 303a(e) of title 37.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such subchapter is amended by adding at the end 
     the following new item:

``2128. Accession bonus for members of the program.''.

       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to agreements entered into under 
     section 2122(a)(2) of title 10, United States Code, on or 
     after the date of the enactment of this Act.

     SEC. 624. PAYMENT OF ASSIGNMENT INCENTIVE PAY FOR RESERVE 
                   MEMBERS SERVING IN COMBAT ZONE FOR MORE THAN 22 
                   MONTHS.

       (a) Payment.--The Secretary of a military department may 
     pay assignment incentive pay under section 307a of title 37, 
     United States Code, to a member of a reserve component under 
     the jurisdiction of the Secretary for each month during the 
     eligibility period of the member determined under subsection 
     (b) during which the member served for any portion of the 
     month in a combat zone associated with Operating Enduring 
     Freedom or Operation Iraqi Freedom in excess of 22 months of 
     qualifying service.
       (b) Eligibility Period.--The eligibility period for a 
     member extends from January 1, 2005, through the end of the 
     active duty service of the member in a combat zone associated 
     with Operating Enduring Freedom or Operation Iraqi Freedom if 
     the service on active duty during the member's most recent 
     period of mobilization to active duty began before January 
     19, 2007.
       (c) Amount of Payment.--The monthly rate of incentive pay 
     payable to a member under this section is $1,000.
       (d) Qualifying Service.--For purposes of this section, 
     qualifying service includes cumulative mobilized service on 
     active duty under sections 12301(d), 12302, and 12304 of 
     title 10, United States Code, during the period beginning on 
     January 1, 2003, through the end of the member's active duty 
     service during the member's most recent period of 
     mobilization to active duty beginning before January 19, 
     2007.
            Subtitle C--Travel and Transportation Allowances

     SEC. 631. PAYMENT OF INACTIVE DUTY TRAINING TRAVEL COSTS FOR 
                   CERTAIN SELECTED RESERVE MEMBERS.

       (a) Payment of Travel Costs Authorized.--
       (1) In general.--Chapter 7 of title 37, United States Code, 
     is amended by inserting after section 408 the following new 
     section:

     ``Sec. 408a. Travel and transportation allowances: inactive 
       duty training outside of normal commuting distances

       ``(a) Allowance Authorized.--The Secretary concerned may 
     reimburse an eligible member of the Selected Reserve of the 
     Ready Reserve for travel expenses for travel to an inactive 
     duty training location to perform inactive duty training when 
     the member is required to commute a distance from the 
     member's permanent residence to the inactive duty training 
     location that is outside the normal commuting distance (as 
     determined under the regulations prescribed under subsection 
     (d)) for that commute.
       ``(b) Eligible Members.--To be eligible for reimbursement 
     under subsection (a), a member of the Selected Reserve of the 
     Ready Reserve must be--
       ``(1) qualified in a skill designated as critically short 
     by the Secretary concerned;
       ``(2) assigned to a unit of the Selected Reserve with a 
     critical manpower shortage or in a pay grade in the member's 
     reserve component with a critical manpower shortage; or
       ``(3) assigned to a unit or position that is disestablished 
     or relocated as a result of defense base closure or 
     realignment or another force structure reallocation.
       ``(c) Maximum Reimbursement Amount.--The amount of 
     reimbursement provided a member under subsection (a) for each 
     round trip to a training location may not exceed $300.
       ``(d) Regulations.--The Secretary concerned shall prescribe 
     regulations to carry out this section. Regulations prescribed 
     by the Secretary of a military department shall be subject to 
     the approval of the Secretary of Defense.
       ``(e) Termination.--No reimbursement may be provided under 
     this section for travel that occurs after December 31, 
     2010.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 7 of such title is amended by inserting 
     after the item relating to section 408 the following new 
     item:

``408a. Travel and transportation allowances: inactive duty training 
              outside of normal commuting distances.''.
       (b) Application of Amendment.--No reimbursement may be 
     provided under section 408a of title 37, United States Code, 
     as added by subsection (a), for travel costs incurred before 
     the date of the enactment of this Act.

     SEC. 632. SURVIVORS OF DECEASED MEMBERS ELIGIBLE FOR 
                   TRANSPORTATION TO ATTEND BURIAL CEREMONIES.

       (a) Eligible Relatives.--Paragraph (1) of section 411f(c) 
     of title 37, United States Code, is amended--
       (1) by striking subparagraph (B) and inserting the 
     following new subparagraph:
       ``(B) The child or children of the deceased member 
     (including stepchildren, adopted children, and illegitimate 
     children).''; and
       (2) by adding at the end the following new subparagraphs:
       ``(D) The sibling or siblings of the deceased member.
       ``(E) The person who directs the disposition of the remains 
     of the deceased member under section 1482(c) of title 10 or, 
     in the case of a deceased member whose remains are commingled 
     and buried in a common grave in a national cemetery, the 
     person who would have been designated under such section to 
     direct the disposition of the remains if individual 
     identification had been made.''.
       (b) Other Persons.--Paragraph (2) of such section is 
     amended to read as follows:
       ``(2) If no person described in subparagraphs (A) through 
     (D) of paragraph (1) is provided travel and transportation 
     allowances under subsection (a)(1), the travel and 
     transportation allowances may be provided to one or two other 
     persons who are closely related to the deceased member and 
     are selected by the person referred to in paragraph (1)(E). A 
     person provided travel and transportation allowances under 
     this paragraph is in addition to the person referred to in 
     paragraph (1)(E).''.

     SEC. 633. ALLOWANCE FOR PARTICIPATION OF RESERVES IN 
                   ELECTRONIC SCREENING.

       (a) Allowance for Participation in Electronic Screening.--
       (1) In general.--Chapter 7 of title 37, United States Code, 
     is amended by inserting after section 433 the following new 
     section:

     ``Sec. 433a. Allowance for participation in Ready Reserve 
       screening

       ``(a) Allowance Authorized.--(1) Under regulations 
     prescribed by the Secretaries concerned,

[[Page 32561]]

     a member of the Individual Ready Reserve may be paid a 
     stipend for participation in the screening performed pursuant 
     to section 10149 of title 10, in lieu of muster duty 
     performed under section 12319 of title 10, if such 
     participation is conducted through electronic means.
       ``(2) The stipend paid a member under this section shall 
     constitute the sole monetary allowance authorized for 
     participation in the screening described in paragraph (1), 
     and shall constitute payment in full to the member for 
     participation in such screening, regardless of the grade or 
     rank in which the member is serving.
       ``(b) Maximum Payment.--The aggregate amount of the stipend 
     paid a member of the Individual Ready Reserve under this 
     section in any calendar year may not exceed $50.
       ``(c) Payment Requirements.--(1) The stipend authorized by 
     this section may not be disbursed in kind.
       ``(2) Payment of a stipend to a member of the Individual 
     Ready Reserve under this section for participation in 
     screening shall be made on or after the date of participation 
     in such screening, but not later than 30 days after such 
     date.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 7 of such title is amended by inserting 
     after the item relating to section 433 the following new 
     item:

``433a. Allowance for participation in Ready Reserve screening.''.
       (b) Bar to Dual Compensation.--Section 206 of such title is 
     amended by adding at the end the following new subsection:
       ``(f) A member of the Individual Ready Reserve is not 
     entitled to compensation under this section for participation 
     in screening for which the member is paid a stipend under 
     section 433a of this title.''.
       (c) Bar to Retirement Credit.--Section 12732(b) of title 
     10, United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(8) Service in the screening performed pursuant to 
     section 10149 of this title through electronic means, 
     regardless of whether or not a stipend is paid the member 
     concerned for such service under section 433a of title 37.''.

     SEC. 634. ALLOWANCE FOR CIVILIAN CLOTHING FOR MEMBERS OF THE 
                   ARMED FORCES TRAVELING IN CONNECTION WITH 
                   MEDICAL EVACUATION.

       Section 1047(a) of title 10, United States Code, is amended 
     by inserting ``and luggage'' after ``civilian clothing'' both 
     places it appears.

     SEC. 635. PAYMENT OF MOVING EXPENSES FOR JUNIOR RESERVE 
                   OFFICERS' TRAINING CORPS INSTRUCTORS IN HARD-
                   TO-FILL POSITIONS.

       Section 2031 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(f)(1) When determined by the Secretary of the military 
     department concerned to be in the national interest and 
     agreed upon by the institution concerned, the institution may 
     reimburse a Junior Reserve Officers' Training Corps 
     instructor for moving expenses incurred by the instructor to 
     accept employment at the institution in a position that the 
     Secretary concerned determines is hard-to-fill for geographic 
     or economic reasons.
       ``(2) As a condition on providing reimbursement under 
     paragraph (1), the institution shall require the instructor 
     to execute a written agreement to serve a minimum of two 
     years of employment at the institution in the hard-to-fill 
     position.
       ``(3) Any reimbursement provided to an instructor under 
     paragraph (1) is in addition to the minimum instructor pay 
     otherwise payable to the instructor.
       ``(4) The Secretary concerned shall reimburse an 
     institution providing reimbursement to an instructor under 
     paragraph (1) in an amount equal to the amount of the 
     reimbursement paid by the institution under that paragraph. 
     Any reimbursement provided by the Secretary concerned shall 
     be provided from funds appropriated for that purpose.
       ``(5) The provision of reimbursement under paragraph (1) or 
     (4) shall be subject to regulations prescribed by the 
     Secretary of Defense for purposes of this subsection.''.
             Subtitle D--Retired Pay and Survivor Benefits

     SEC. 641. EXPANSION OF COMBAT-RELATED SPECIAL COMPENSATION 
                   ELIGIBILITY.

       (a) Expanded Eligibility for Chapter 61 Military 
     Retirees.--Subsection (c) of section 1413a of title 10, 
     United States Code, is amended by striking ``entitled to 
     retired pay who--'' and all that follows and inserting 
     ``who--
       ``(1) is entitled to retired pay (other than by reason of 
     section 12731b of this title); and
       ``(2) has a combat-related disability.''.
       (b) Computation.--Paragraph (3) of subsection (b) of such 
     section is amended--
       (1) by striking ``In the case of'' and inserting the 
     following:
       ``(A) General rule.--In the case of''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) Special rule for retirees with fewer than 20 years of 
     service.--In the case of an eligible combat-related disabled 
     uniformed services retiree who is retired under chapter 61 of 
     this title with fewer than 20 years of creditable service, 
     the amount of the payment under paragraph (1) for any month 
     shall be reduced by the amount (if any) by which the amount 
     of the member's retired pay under chapter 61 of this title 
     exceeds the amount equal to 2\1/2\ percent of the member's 
     years of creditable service multiplied by the member's 
     retired pay base under section 1406(b)(1) or 1407 of this 
     title, whichever is applicable to the member.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2008, and shall apply to 
     payments for months beginning on or after that date.

     SEC. 642. INCLUSION OF VETERANS WITH SERVICE-CONNECTED 
                   DISABILITIES RATED AS TOTAL BY REASON OF 
                   UNEMPLOYABILITY UNDER TERMINATION OF PHASE-IN 
                   OF CONCURRENT RECEIPT OF RETIRED PAY AND 
                   VETERANS' DISABILITY COMPENSATION.

       (a) Inclusion of Veterans.--Section 1414(a)(1) of title 10, 
     United States Code, is amended by striking ``except that'' 
     and all that follows and inserting ``except that payment of 
     retired pay is subject to subsection (c) only during the 
     period beginning on January 1, 2004, and ending on December 
     31, 2004, in the case of the following:
       ``(A) A qualified retiree receiving veterans' disability 
     compensation for a disability rated as 100 percent.
       ``(B) A qualified retiree receiving veterans' disability 
     compensation at the rate payable for a 100 percent disability 
     by reason of a determination of individual 
     unemployability.''.
       (b) Effective Date.--
       (1) In general.--Subject to paragraph (2), the amendment 
     made by subsection (a) shall take effect as of December 31, 
     2004.
       (2) Timing of payment of retroactive benefits.--Any amount 
     payable for a period before October 1, 2008, by reason of the 
     amendment made by subsection (a) shall not be paid until 
     after that date.

     SEC. 643. RECOUPMENT OF ANNUITY AMOUNTS PREVIOUSLY PAID, BUT 
                   SUBJECT TO OFFSET FOR DEPENDENCY AND INDEMNITY 
                   COMPENSATION.

       (a) Limitation on Recoupment; Notification Requirements.--
     Section 1450(c) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(3) Limitation on recoupment of offset amount.--Any 
     amount subject to offset under this subsection that was 
     previously paid to the surviving spouse or former spouse 
     shall be recouped only to the extent that the amount paid 
     exceeds any amount to be refunded under subsection (e). In 
     notifying a surviving spouse or former spouse of the 
     recoupment requirement, the Secretary shall provide the 
     spouse or former spouse--
       ``(A) a single notice of the net amount to be recouped or 
     the net amount to be refunded, as applicable, under this 
     subsection or subsection (e);
       ``(B) a written explanation of the statutory requirements 
     for recoupment of the offset amount and for refund of any 
     applicable amount deducted from retired pay;
       ``(C) a detailed accounting of how the offset amount being 
     recouped and retired pay deduction amount being refunded were 
     calculated; and
       ``(D) contact information for a person who can provide 
     information about the offset recoupment and retired pay 
     deduction refund processes and answer questions the surviving 
     spouse or former spouse may have about the requirements, 
     processes, or amounts.''.
       (b) Application.--Paragraph (3) of subsection (c) of 
     section 1450 of title 10, United States Code, as added by 
     subsection (a), shall apply with respect to the recoupment on 
     or after April 1, 2008, of amounts subject to offset under 
     such subsection.

     SEC. 644. SPECIAL SURVIVOR INDEMNITY ALLOWANCE FOR PERSONS 
                   AFFECTED BY REQUIRED SURVIVOR BENEFIT PLAN 
                   ANNUITY OFFSET FOR DEPENDENCY AND INDEMNITY 
                   COMPENSATION.

       Section 1450 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(m) Special Survivor Indemnity Allowance.--
       ``(1) Provision of allowance.--The Secretary concerned 
     shall pay a monthly special survivor indemnity allowance 
     under this subsection to the surviving spouse or former 
     spouse of a member of the uniformed services to whom section 
     1448 of this title applies if--
       ``(A) the surviving spouse or former spouse is entitled to 
     dependency and indemnity compensation under section 1311(a) 
     of title 38;
       ``(B) except for subsection (c) of this section, the 
     surviving spouse or former spouse is eligible for an annuity 
     by reason of a participant in the Plan under section 
     1448(a)(1) of this title; and
       ``(C) the eligibility of the surviving spouse or former 
     spouse for an annuity as described in subparagraph (B) is 
     affected by subsection (c) of this section.
       ``(2) Amount of payment.--Subject to paragraph (3), the 
     amount of the allowance paid to an eligible survivor under 
     paragraph (1) for a month shall be equal to--
       ``(A) for months during fiscal year 2009, $50;
       ``(B) for months during fiscal year 2010, $60;
       ``(C) for months during fiscal year 2011, $70;
       ``(D) for months during fiscal year 2012, $80;
       ``(E) for months during fiscal year 2013, $90; and
       ``(F) for months after fiscal year 2013, $100.
       ``(3) Limitation.--The amount of the allowance paid to an 
     eligible survivor under paragraph (1) for any month may not 
     exceed the amount of the annuity for that month that is 
     subject to offset under subsection (c).
       ``(4) Status of payments.--An allowance paid under this 
     subsection does not constitute an annuity, and amounts so 
     paid are not subject to adjustment under any other provision 
     of law.
       ``(5) Source of funds.--The special survivor indemnity 
     allowance shall be paid from amounts in the Department of 
     Defense Military Retirement Fund established under section 
     1461 of this title.

[[Page 32562]]

       ``(6) Effective date and duration.--This subsection shall 
     only apply with respect to the month beginning on October 1, 
     2008, and subsequent months through the month ending on 
     February 28, 2016. Effective on March 1, 2016, the authority 
     provided by this subsection shall terminate. No special 
     survivor indemnity allowance may be paid to any person by 
     reason of this subsection for any period before October 1, 
     2008, or beginning on or after March 1, 2016.''.

     SEC. 645. MODIFICATION OF AUTHORITY OF MEMBERS OF THE ARMED 
                   FORCES TO DESIGNATE RECIPIENTS FOR PAYMENT OF 
                   DEATH GRATUITY.

       (a) Authority to Designate Recipients.--Section 1477 of 
     title 10, United States Code, is amended--
       (1) by striking subsections (c) and (d);
       (2) by redesignating subsection (b) as subsection (d) and, 
     in such subsection, by striking ``Subsection (a)(2)'' and 
     inserting ``Treatment of Children.--Subsection (b)(2)''; and
       (3) by striking subsection (a) and inserting the following 
     new subsections:
       ``(a) Designation of Recipients.--(1) On and after July 1, 
     2008, or such earlier date as the Secretary of Defense may 
     prescribe, a person covered by section 1475 or 1476 of this 
     title may designate one or more persons to receive all or a 
     portion of the amount payable under section 1478 of this 
     title. The designation of a person to receive a portion of 
     the amount shall indicate the percentage of the amount, to be 
     specified only in 10 percent increments, that the designated 
     person may receive. The balance of the amount of the death 
     gratuity, if any, shall be paid in accordance with subsection 
     (b).
       ``(2) If a person covered by section 1475 or 1476 of this 
     title has a spouse, but designates a person other than the 
     spouse to receive all or a portion of the amount payable 
     under section 1478 of this title, the Secretary concerned 
     shall provide notice of the designation to the spouse.
       ``(b) Distribution of Remainder; Distribution in Absence of 
     Designated Recipient.--If a person covered by section 1475 or 
     1476 of this title does not make a designation under 
     subsection (a) or designates only a portion of the amount 
     payable under section 1478 of this title, the amount of the 
     death gratuity not covered by a designation shall be paid as 
     follows:
       ``(1) To the surviving spouse of the person, if any.
       ``(2) If there is no surviving spouse, to any surviving 
     children (as prescribed by subsection (d)) of the person and 
     the descendants of any deceased children by representation.
       ``(3) If there is none of the above, to the surviving 
     parents (as prescribed by subsection (c)) of the person or 
     the survivor of them.
       ``(4) If there is none of the above, to the duly appointed 
     executor or administrator of the estate of the person.
       ``(5) If there is none of the above, to other next of kin 
     of the person entitled under the laws of domicile of the 
     person at the time of the person's death.
       ``(c) Treatment of Parents.--For purposes of subsection 
     (b)(3), parents include fathers and mothers through adoption. 
     However, only one father and one mother may be recognized in 
     any case, and preference shall be given to those who 
     exercised a parental relationship on the date, or most nearly 
     before the date, on which the decedent entered a status 
     described in section 1475 or 1476 of this title.''.
       (b) Clerical and Conforming Amendments.--Subsection (e) of 
     such section is amended--
       (1) by inserting ``Effect of Death Before Receipt of 
     Gratuity.--'' after ``(e)'';
       (2) by striking ``subsection (a) or (d)'' and inserting 
     ``subsection (a) or (b)''; and
       (3) by striking ``subsection (a).'' and inserting 
     ``subsection (b)''.
       (c) Existing Designation Authority.--The authority provided 
     by subsection (d) of section 1477 of title 10, United States 
     Code, as in effect on the day before the date of the 
     enactment of this Act, shall remain available to persons 
     covered by section 1475 or 1476 of such title until July 1, 
     2008, or such earlier date as the Secretary of Defense may 
     prescribe, and any designation under such subsection made 
     before July 1, 2008, or the earlier date prescribed by the 
     Secretary, shall continue in effect until such time as the 
     person who made the designation makes a new designation under 
     such section 1477, as amended by subsection (a) of this 
     section.
       (d) Regulations.--
       (1) In general.--Not later than April 1, 2008, the 
     Secretary of Defense shall prescribe regulations to implement 
     the amendments to section 1477 of title 10, United States 
     Code, made by subsection (a).
       (2) Elements.--The regulations required by paragraph (1) 
     shall include forms for the making of the designation 
     contemplated by subsection (a) of section 1477 of title 10, 
     United States Code, as amended by subsection (a) of this 
     section, and instructions for members of the Armed Forces in 
     the filling out of such forms.

     SEC. 646. CLARIFICATION OF APPLICATION OF RETIRED PAY 
                   MULTIPLIER PERCENTAGE TO MEMBERS OF THE 
                   UNIFORMED SERVICES WITH OVER 30 YEARS OF 
                   SERVICE.

       (a) Computation of Retired and Retainer Pay for Members of 
     Naval Service.--The table in section 6333(a) of title 10, 
     United States Code, is amended in Column 2 of Formula A by 
     striking ``75 percent.'' and inserting ``Retired pay 
     multiplier prescribed under section 1409 for the years of 
     service that may be credited to the member under section 
     1405.''.
       (b) Retired Pay for Certain Members Recalled to Active 
     Duty.--The table in section 1402(a) of such title is amended 
     by striking Column 3.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect as of January 1, 2007, and shall 
     apply with respect to retired pay and retainer pay payable on 
     or after that date.

     SEC. 647. 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.

       (a) Reduced Eligibility Age.--Section 12731 of title 10, 
     United States Code, is amended--
       (1) in subsection (a), by striking paragraph (1) and 
     inserting the following:
       ``(1) has attained the eligibility age applicable under 
     subsection (f) to that person;''; and
       (2) by adding at the end the following new subsection:
       ``(f)(1) Subject to paragraph (2), the eligibility age for 
     purposes of subsection (a)(1) is 60 years of age.
       ``(2)(A) In the case of a person who as a member of the 
     Ready Reserve serves on active duty or performs active 
     service described in subparagraph (B) after the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2008, the eligibility age for purposes of 
     subsection (a)(1) shall be reduced below 60 years of age by 
     three months for each aggregate of 90 days on which such 
     person so performs in any fiscal year after such date, 
     subject to subparagraph (C). A day of duty may be included in 
     only one aggregate of 90 days for purposes of this 
     subparagraph.
       ``(B)(i) Service on active duty described in this 
     subparagraph is 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) or under section 12301(d) of this 
     title. Such service does not include service on active duty 
     pursuant to a call or order to active duty under section 
     12310 of this title.
       ``(ii) Active service described in this subparagraph is 
     also service under a call to active service authorized by the 
     President or the 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.
       ``(C) The eligibility age for purposes of subsection (a)(1) 
     may not be reduced below 50 years of age for any person under 
     subparagraph (A).''.
       (b) Continuation of Age 60 as Minimum Age for Eligibility 
     of Non-Regular Service Retirees for Health Care.--Section 
     1074(b) of such title is amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Paragraph (1) does not apply to a member or former 
     member entitled to retired pay for non-regular service under 
     chapter 1223 of this title who is under 60 years of age.''.
       (c) Administration of Related Provisions of Law or 
     Policy.--With respect to any provision of law, or of any 
     policy, regulation, or directive of the executive branch that 
     refers to a member or former member of the uniformed services 
     as being eligible for, or entitled to, retired pay under 
     chapter 1223 of title 10, United States Code, but for the 
     fact that the member or former member is under 60 years of 
     age, such provision shall be carried out with respect to that 
     member or former member by substituting for the reference to 
     being 60 years of age a reference to having attained the 
     eligibility age applicable under subsection (f) of section 
     12731 of title 10, United States Code (as added by subsection 
     (a)), to such member or former member for qualification for 
     such retired pay under subsection (a) of such section.

     SEC. 648. COMPUTATION OF YEARS OF SERVICE FOR PURPOSES OF 
                   RETIRED PAY FOR NON-REGULAR SERVICE.

       Section 12733(3) of title 10, United States Code, is 
     amended--
       (1) in subparagraph (B), by striking ``and'' at the end;
       (2) in subparagraph (C), by striking the period and 
     inserting ``before the year of service that includes October 
     30, 2007; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(D) 130 days in the year of service that includes October 
     30, 2007, and in any subsequent year of service.''.
    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

     SEC. 651. AUTHORITY TO CONTINUE COMMISSARY AND EXCHANGE 
                   BENEFITS FOR CERTAIN INVOLUNTARILY SEPARATED 
                   MEMBERS OF THE ARMED FORCES.

       (a) Resumption for Members Involuntarily Separated From 
     Active Duty.--Section 1146 of title 10, United States Code, 
     is amended--
       (1) by inserting ``(a) Members Involuntarily Separated From 
     Active Duty.--'' before ``The Secretary of Defense'';
       (2) in the first sentence, by striking ``October 1, 1990, 
     and ending on December 31, 2001'' and inserting ``October 1, 
     2007, and ending on December 31, 2012''; and
       (3) in the second sentence, by striking ``the period 
     beginning on October 1, 1994, and ending on December 31, 
     2001'' and inserting ``the same period''.
       (b) Extension to Members Involuntarily Separated From 
     Selected Reserve.--Such section is further amended by adding 
     at the end the following new subsection:
       ``(b) Members Involuntarily Separated From Selected 
     Reserve.--The Secretary of

[[Page 32563]]

     Defense shall prescribe regulations to allow a member of the 
     Selected Reserve of the Ready Reserve who is involuntarily 
     separated from the Selected Reserve as a result of the 
     exercise of the force shaping authority of the Secretary 
     concerned under section 647 of this title or other force 
     shaping authority during the period beginning on October 1, 
     2007, and ending on December 31, 2012, to continue to use 
     commissary and exchange stores during the two-year period 
     beginning on the date of the involuntary separation of the 
     member in the same manner as a member on active duty. The 
     Secretary of Homeland Security shall implement this provision 
     for Coast Guard members involuntarily separated during the 
     same period.''.

     SEC. 652. AUTHORIZATION OF INSTALLMENT DEDUCTIONS FROM PAY OF 
                   EMPLOYEES OF NONAPPROPRIATED FUND 
                   INSTRUMENTALITIES TO COLLECT INDEBTEDNESS TO 
                   THE UNITED STATES.

       Section 5514 of title 5, United States Code, is amended--
       (1) in subsection (a)(5), by inserting ``any 
     nonappropriated fund instrumentality described in section 
     2105(c) of this title,'' after ``Commission,''; and
       (2) by adding at the end the following new subsection:
       ``(e) An employee of a nonappropriated fund instrumentality 
     described in section 2105(c) of this title is deemed an 
     employee covered by this section.''.
  Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus 
                              Authorities

     SEC. 661. CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND 
                   BONUS AUTHORITIES OF THE UNIFORMED SERVICES.

       (a) Consolidation.--Chapter 5 of title 37, United States 
     Code, is amended--
       (1) by inserting before section 301 the following 
     subchapter heading:

    ``SUBCHAPTER I--EXISTING SPECIAL PAY, INCENTIVE PAY, AND BONUS 
                             AUTHORITIES'';

     and
       (2) by adding at the end the following new subchapters:

``SUBCHAPTER II--CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND BONUS 
                              AUTHORITIES

     ``Sec. 331. General bonus authority for enlisted members

       ``(a) Authority To Provide Bonus.--The Secretary concerned 
     may pay a bonus under this section to a person, including a 
     member of the armed forces, who--
       ``(1) enlists in an armed force;
       ``(2) enlists in or affiliates with a reserve component of 
     an armed force;
       ``(3) reenlists, voluntarily extends an enlistment, or 
     otherwise agrees to serve--
       ``(A) for a specified period in a designated career field, 
     skill, or unit of an armed force; or
       ``(B) under other conditions of service in an armed force;
       ``(4) transfers from a regular component of an armed force 
     to a reserve component of that same armed force or from a 
     reserve component of an armed force to the regular component 
     of that same armed force; or
       ``(5) transfers from a regular component or reserve 
     component of an armed force to a regular component or reserve 
     component of another armed force, subject to the approval of 
     the Secretary with jurisdiction over the armed force to which 
     the member is transferring.
       ``(b) Service Eligibility.--A bonus authorized by 
     subsection (a) may be paid to a person or member only if the 
     person or member agrees under subsection (d)--
       ``(1) to serve for a specified period in a designated 
     career field, skill, unit, or grade; or
       ``(2) to meet some other condition or conditions of service 
     imposed by the Secretary concerned.
       ``(c) Maximum Amount and Method of Payment.--
       ``(1) Maximum amount.--The Secretary concerned shall 
     determine the amount of a bonus to be paid under this 
     section, except that--
       ``(A) a bonus paid under paragraph (1) or (2) of subsection 
     (a) may not exceed $50,000 for a minimum two-year period of 
     obligated service agreed to under subsection (d);
       ``(B) a bonus paid under paragraph (3) of subsection (a) 
     may not exceed $30,000 for each year of obligated service in 
     a regular component agreed to under subsection (d);
       ``(C) a bonus paid under paragraph (3) of subsection (a) 
     may not exceed $15,000 for each year of obligated service in 
     a reserve component agreed to under subsection (d); and
       ``(D) a bonus paid under paragraph (4) or (5) of subsection 
     (a) may not exceed $10,000.
       ``(2) Lump sum or installments.--A bonus under this section 
     may be paid in a lump sum or in periodic installments, as 
     determined by the Secretary concerned.
       ``(3) Fixing bonus amount.--Upon acceptance by the 
     Secretary concerned of the written agreement required by 
     subsection (d), the total amount of the bonus to be paid 
     under the agreement shall be fixed.
       ``(d) Written Agreement.--To receive a bonus under this 
     section, a person or member determined to be eligible for the 
     bonus shall enter into a written agreement with the Secretary 
     concerned that specifies--
       ``(1) the amount of the bonus;
       ``(2) the method of payment of the bonus under subsection 
     (c)(2);
       ``(3) the period of obligated service; and
       ``(4) the type or conditions of the service.
       ``(e) Relationship to Other Pay and Allowances.--A bonus 
     paid to a person or member under this section is in addition 
     to any other pay and allowance to which the person or member 
     is entitled.
       ``(f) Relationship to Prohibition on Bounties.--A bonus 
     authorized under this section is not a bounty for purposes of 
     section 514(a) of title 10.
       ``(g) Repayment.--A person or member who receives a bonus 
     under this section and who fails to complete the period of 
     service, or meet the conditions of service, for which the 
     bonus is paid, as specified in the written agreement under 
     subsection (d), shall be subject to the repayment provisions 
     of section 373 of this title.
       ``(h) Termination of Authority.--No agreement may be 
     entered into under this section after December 31, 2009.

     ``Sec. 332. General bonus authority for officers

       ``(a) Authority to Provide Bonus.--The Secretary concerned 
     may pay a bonus under this section to a person, including an 
     officer in the uniformed services, who--
       ``(1) accepts a commission or appointment as an officer in 
     a uniformed service;
       ``(2) affiliates with a reserve component of a uniformed 
     service;
       ``(3) agrees to remain on active duty or to serve in an 
     active status for a specific period as an officer in a 
     uniformed service;
       ``(4) transfers from a regular component of a uniformed 
     service to a reserve component of that same uniformed service 
     or from a reserve component of a uniformed service to the 
     regular component of that same uniformed service; or
       ``(5) transfers from a regular component or reserve 
     component of a uniformed service to a regular component or 
     reserve component of another uniformed service, subject to 
     the approval of the Secretary with jurisdiction over the 
     uniformed service to which the member is transferring.
       ``(b) Service Eligibility.--A bonus authorized by 
     subsection (a) may be paid to a person or officer only if the 
     person or officer agrees under subsection (d)--
       ``(1) to serve for a specified period in a designated 
     career field, skill, unit, or grade; or
       ``(2) to meet some other condition or conditions of service 
     imposed by the Secretary concerned.
       ``(c) Maximum Amount and Method of Payment.--
       ``(1) Maximum amount.--The Secretary concerned shall 
     determine the amount of a bonus to be paid under this 
     section, except that--
       ``(A) a bonus paid under paragraph (1) of subsection (a) 
     may not exceed $60,000 for a minimum three-year period of 
     obligated service agreed to under subsection (d);
       ``(B) a bonus paid under paragraph (2) of subsection (a) 
     may not exceed $12,000 for a minimum three-year period of 
     obligated service agreed to under subsection (d);
       ``(C) a bonus paid under paragraph (3) of subsection (a) 
     may not exceed $50,000 for each year of obligated service in 
     a regular component agreed to under subsection (d);
       ``(D) a bonus paid under paragraph (3) of subsection (a) 
     may not exceed $12,000 for each year of obligated service in 
     a reserve component agreed to under subsection (d); and
       ``(E) a bonus paid under paragraph (4) or (5) of subsection 
     (a) may not exceed $10,000.
       ``(2) Lump sum or installments.--A bonus under this section 
     may be paid in a lump sum or in periodic installments, as 
     determined by the Secretary concerned.
       ``(3) Fixing bonus amount.--Upon acceptance by the 
     Secretary concerned of the written agreement required by 
     subsection (d), the total amount of the bonus to be paid 
     under the agreement shall be fixed.
       ``(d) Written Agreement.--To receive a bonus under this 
     section, a person or officer determined to be eligible for 
     the bonus shall enter into a written agreement with the 
     Secretary concerned that specifies--
       ``(1) the amount of the bonus;
       ``(2) the method of payment of the bonus under subsection 
     (c)(2);
       ``(3) the period of obligated service; and
       ``(4) the type or conditions of the service.
       ``(e) Relationship to Other Pay and Allowances.--The bonus 
     paid to a person or officer under this section is in addition 
     to any other pay and allowance to which the person or officer 
     is entitled.
       ``(f) Repayment.--A person or officer who receives a bonus 
     under this section and who fails to complete the period of 
     service, or meet the conditions of service, for which the 
     bonus is paid, as specified in the written agreement under 
     subsection (d), shall be subject to the repayment provisions 
     of section 373 of this title.
       ``(g) Termination of Authority.--No agreement may be 
     entered into under this section after December 31, 2009.

     ``Sec. 333. Special bonus and incentive pay authorities for 
       nuclear officers

       ``(a) Nuclear Officer Bonus.--The Secretary of the Navy may 
     pay a nuclear officer bonus under this section to a person, 
     including an officer in the Navy, who--
       ``(1) is selected for the officer naval nuclear power 
     training program in connection with the supervision, 
     operation, and maintenance of naval nuclear propulsion plants 
     and agrees to serve, upon completion of such training, on 
     active duty in connection with the supervision, operation, 
     and maintenance of naval nuclear propulsion plants; or
       ``(2) has the current technical and operational 
     qualification for duty in connection with the supervision, 
     operation, and maintenance of naval nuclear propulsion plants 
     and agrees to remain on active duty in connection with the 
     supervision, operation, and maintenance of naval nuclear 
     propulsion plants.

[[Page 32564]]

       ``(b) Nuclear Officer Incentive Pay.--The Secretary of the 
     Navy may pay nuclear officer incentive pay under this section 
     to an officer in the Navy who--
       ``(1) is entitled to basic pay under section 204 of this 
     title; and
       ``(2) remains on active duty for a specified period while 
     maintaining current technical and operational qualifications, 
     as approved by the Secretary, for duty in connection with the 
     supervision, operation, and maintenance of naval nuclear 
     propulsion plants.
       ``(c) Additional Eligibility Criteria.--The Secretary of 
     the Navy may impose such additional criteria for the receipt 
     of a nuclear officer bonus or nuclear officer incentive pay 
     under this section as the Secretary determines to be 
     appropriate.
       ``(d) Maximum Amount and Method of Payment.--
       ``(1) Maximum amount.--The Secretary of the Navy shall 
     determine the amounts of a nuclear officer bonus or nuclear 
     officer incentive pay to be paid under this section, except 
     that--
       ``(A) a nuclear officer bonus paid under subsection (a) may 
     not exceed $35,000 for each 12-month period of the agreement 
     under subsection (e); and
       ``(B) the amount of nuclear officer incentive paid under 
     subsection (b) may not exceed $25,000 for each 12-month 
     period of qualifying service.
       ``(2) Lump sum or installments.--A nuclear officer bonus or 
     nuclear officer incentive pay under this section may be paid 
     in a lump sum or in periodic installments.
       ``(3) Fixing bonus amount.--Upon acceptance by the 
     Secretary concerned of the written agreement required by 
     subsection (e), the total amount of the nuclear officer bonus 
     to be paid under the agreement shall be fixed.
       ``(e) Written Agreement for Bonus.--
       ``(1) Agreement required.--To receive a nuclear officer 
     bonus under subsection (a), a person or officer determined to 
     be eligible for the bonus shall enter into a written 
     agreement with the Secretary of the Navy that specifies--
       ``(A) the amount of the bonus;
       ``(B) the method of payment of the bonus under subsection 
     (d)(2);
       ``(C) the period of obligated service; and
       ``(D) the type or conditions of the service.
       ``(2) Replacement agreement.--An officer who is performing 
     obligated service under an agreement for a nuclear officer 
     bonus may execute a new agreement to replace the existing 
     agreement if the amount to be paid under the new agreement 
     will be higher than the amount to be paid under the existing 
     agreement. The period of the new agreement shall be equal to 
     or exceed the remaining term of the period of the officer's 
     existing agreement. If a new agreement is executed under this 
     paragraph, the existing agreement shall be cancelled, 
     effective on the day before an anniversary date of the 
     existing agreement occurring after the date on which the 
     amount to be paid under this paragraph is increased.
       ``(f) Relationship to Other Pay and Allowances.--A nuclear 
     officer bonus or nuclear officer incentive pay paid to a 
     person or officer under this section is in addition to any 
     other pay and allowance to which the person or officer is 
     entitled, except that a person or officer may not receive a 
     payment under this section and section 332 or 353 of this 
     title for the same skill and period of service.
       ``(g) Repayment.--A person or officer who receives a 
     nuclear officer bonus or nuclear officer incentive pay under 
     this section and who fails to complete the officer naval 
     nuclear power training program, maintain required technical 
     and operational qualifications, complete the period of 
     service, or meet the types or conditions of service for which 
     the bonus or incentive pay is paid, as specified in the 
     written agreement under subsection (e) in the case of a 
     nuclear officer bonus, shall be subject to the repayment 
     provisions of section 373 of this title.
       ``(h) Regulations.--This section shall be administered 
     under regulations prescribed by the Secretary of the Navy.
       ``(i) Termination of Authority.--No agreement may be 
     entered into under this section after December 31, 2009.

     ``Sec. 334. Special aviation incentive pay and bonus 
       authorities for officers

       ``(a) Aviation Incentive Pay.--The Secretary concerned may 
     pay aviation incentive pay under this section to an officer 
     in a regular or reserve component of a uniformed service 
     who--
       ``(1) is entitled to basic pay under section 204 of this 
     title or compensation under section 206 of this title;
       ``(2) maintains, or is in training leading to, an 
     aeronautical rating or designation that qualifies the officer 
     to engage in operational flying duty or proficiency flying 
     duty;
       ``(3) engages in, or is in training leading to, frequent 
     and regular performance of operational flying duty or 
     proficiency flying duty;
       ``(4) engages in or remains in aviation service for a 
     specified period; and
       ``(5) meets such other criteria as the Secretary concerned 
     determines appropriate.
       ``(b) Aviation Bonus.--The Secretary concerned may pay an 
     aviation bonus under this section to an officer in a regular 
     or reserve component of a uniformed service who--
       ``(1) is entitled to aviation incentive pay under 
     subsection (a);
       ``(2) has completed any active duty service commitment 
     incurred for undergraduate aviator training or is within one 
     year of completing such commitment;
       ``(3) executes a written agreement to remain on active duty 
     in a regular component or to serve in an active status in a 
     reserve component in aviation service for at least one year; 
     and
       ``(4) meets such other criteria as the Secretary concerned 
     determines appropriate.
       ``(c) Maximum Amount and Method of Payment.--
       ``(1) Maximum amount.--The Secretary concerned shall 
     determine the amount of a bonus or incentive pay to be paid 
     under this section, except that--
       ``(A) aviation incentive pay under subsection (a) shall be 
     paid at a monthly rate, not to exceed $850 per month; and
       ``(B) an aviation bonus under subsection (b) may not exceed 
     $25,000 for each 12-month period of obligated service agreed 
     to under subsection (d).
       ``(2) Lump sum or installments.--A bonus under this section 
     may be paid in a lump sum or in periodic installments, as 
     determined by the Secretary concerned.
       ``(3) Fixing bonus amount.--Upon acceptance by the 
     Secretary concerned of the written agreement required by 
     subsection (d), the total amount of the bonus to be paid 
     under the agreement shall be fixed.
       ``(d) Written Agreement for Bonus.--To receive an aviation 
     officer bonus under this section, an officer determined to be 
     eligible for the bonus shall enter into a written agreement 
     with the Secretary concerned that specifies--
       ``(1) the amount of the bonus;
       ``(2) the method of payment of the bonus under subsection 
     (c)(2);
       ``(3) the period of obligated service; and
       ``(4) the type or conditions of the service.
       ``(e) Reserve Component Officers Performing Inactive Duty 
     Training.--A reserve component officer who is entitled to 
     compensation under section 206 of this title and who is 
     authorized aviation incentive pay under this section may be 
     paid an amount of incentive pay that is proportionate to the 
     compensation received under section 206 for inactive-duty 
     training.
       ``(f) Relationship to Other Pay and Allowances.--
       ``(1) Aviation incentive pay.--Aviation incentive pay paid 
     to an officer under subsection (a) shall be in addition to 
     any other pay and allowance to which the officer is entitled, 
     except that an officer may not receive a payment under such 
     subsection and section 351 or 353 of this title for the same 
     skill and period of service.
       ``(2) Aviation bonus.--An aviation bonus paid to an officer 
     under subsection (b) shall be in addition to any other pay 
     and allowance to which the officer is entitled, except that 
     an officer may not receive a payment under such subsection 
     and section 332 or 353 of this title for the same skill and 
     period of service.
       ``(g) Repayment.--An officer who receives aviation 
     incentive pay or an aviation bonus under this section and who 
     fails to fulfill the eligibility requirements for the receipt 
     of the incentive pay or bonus or complete the period of 
     service for which the incentive pay or bonus is paid, as 
     specified in the written agreement under subsection (d) in 
     the case of a bonus, shall be subject to the repayment 
     provisions of section 373 of this title.
       ``(h) Definitions.--In this section:
       ``(1) The term `aviation service' means service performed 
     by an officer in a regular or reserve component (except a 
     flight surgeon or other medical officer) while holding an 
     aeronautical rating or designation or while in training to 
     receive an aeronautical rating or designation.
       ``(2) The term `operational flying duty' means flying 
     performed under competent orders by rated or designated 
     regular or reserve component officers while serving in 
     assignments in which basic flying skills normally are 
     maintained in the performance of assigned duties as 
     determined by the Secretary concerned, and flying performed 
     by members in training that leads to the award of an 
     aeronautical rating or designation.
       ``(3) The term `proficiency flying duty' means flying 
     performed under competent orders by rated or designated 
     regular or reserve component officers while serving in 
     assignments in which such skills would normally not be 
     maintained in the performance of assigned duties.
       ``(4) The term `officer' includes an individual enlisted 
     and designated as an aviation cadet under section 6911 of 
     title 10.
       ``(i) Termination of Authority.--No agreement may be 
     entered into under this section after December 31, 2009.

     ``Sec. 335. Special bonus and incentive pay authorities for 
       officers in health professions

       ``(a) Health Professions Bonus.--The Secretary concerned 
     may pay a health professions bonus under this section to a 
     person, including an officer in the uniformed services, who 
     is a graduate of an accredited school in a health profession 
     and who--
       ``(1) accepts a commission or appointment as an officer in 
     a regular or reserve component of a uniformed service, or 
     affiliates with a reserve component of a uniformed service, 
     and agrees to serve on active duty in a regular component or 
     in an active status in a reserve component in a health 
     profession;
       ``(2) accepts a commission or appointment as an officer and 
     whose health profession specialty is designated by the 
     Secretary of Defense as a critically short wartime specialty; 
     or
       ``(3) agrees to remain on active duty or continue serving 
     in an active status in a reserve component in a health 
     profession.
       ``(b) Health Professions Incentive Pay.--The Secretary 
     concerned may pay incentive pay under this section to an 
     officer in a regular or reserve component of a uniformed 
     service who--

[[Page 32565]]

       ``(1) is entitled to basic pay under section 204 of this 
     title or compensation under section 206 of this title; and
       ``(2) is serving on active duty or in an active status in a 
     designated health profession specialty or skill.
       ``(c) Board Certification Incentive Pay.--The Secretary 
     concerned may pay board certification incentive pay under 
     this section to an officer in a regular or reserve component 
     of a uniformed service who--
       ``(1) is entitled to basic pay under section 204 of this 
     title or compensation under section 206 of this title;
       ``(2) is board certified in a designated health profession 
     specialty or skill; and
       ``(3) is serving on active duty or in an active status in 
     such designated health profession specialty or skill.
       ``(d) Additional Eligibility Criteria.--The Secretary 
     concerned may impose such additional criteria for the receipt 
     of a bonus or incentive pay under this section as the 
     Secretary determines to be appropriate.
       ``(e) Maximum Amount and Method of Payment.--
       ``(1) Maximum amount.--The Secretary concerned shall 
     determine the amounts of a bonus or incentive pay to be paid 
     under this section, except that--
       ``(A) a health professions bonus paid under paragraph (1) 
     of subsection (a) may not exceed $30,000 for each 12-month 
     period of obligated service agreed to under subsection (f);
       ``(B) a health professions bonus paid under paragraph (2) 
     of subsection (a) may not exceed $100,000 for each 12-month 
     period of obligated service agreed to under subsection (f);
       ``(C) a health professions bonus paid under paragraph (3) 
     of subsection (a) may not exceed $75,000 for each 12-month 
     period of obligated service agreed to under subsection (f);
       ``(D) health professions incentive pay under subsection (b) 
     may be paid monthly and may not exceed, in any 12-month 
     period--
       ``(i) $100,000 for medical officers and dental surgeons; 
     and
       ``(ii) $15,000 for officers in other health professions; 
     and
       ``(E) board certification incentive pay under subsection 
     (c) may not exceed $6,000 for each 12-month period an officer 
     remains certified in the designated health profession 
     specialty or skill.
       ``(2) Lump sum or installments.--A health professions bonus 
     under subsection (a) may be paid in a lump sum or in periodic 
     installments, as determined by the Secretary concerned. Board 
     certification incentive pay under subsection (c) may be paid 
     monthly, in a lump sum at the beginning of the certification 
     period, or in periodic installments during the certification 
     period, as determined by the Secretary concerned.
       ``(3) Fixing bonus amount.--Upon acceptance by the 
     Secretary concerned of the written agreement required by 
     subsection (f), the total amount of the health professions 
     bonus to be paid under the agreement shall be fixed.
       ``(f) Written Agreement for Bonus.--To receive a bonus 
     under this section, an officer determined to be eligible for 
     the bonus shall enter into a written agreement with the 
     Secretary concerned that specifies--
       ``(1) the amount of the bonus;
       ``(2) the method of payment of the bonus under subsection 
     (e)(2);
       ``(3) the period of obligated service;
       ``(4) whether the service will be performed on active duty 
     or in an active status in a reserve component; and
       ``(5) the type or conditions of the service.
       ``(g) Reserve Component Officers.--An officer in a reserve 
     component authorized incentive pay under subsection (b) or 
     (c) who is not serving on continuous active duty and is 
     entitled to compensation under section 204 of this title or 
     compensation under section 206 of this title may be paid a 
     monthly amount of incentive pay that is proportionate to the 
     basic pay or compensation received under this title.
       ``(h) Relationship to Other Pay and Allowances.--
       ``(1) Health professions bonus.--A bonus paid to a person 
     or officer under subsection (a) shall be in addition to any 
     other pay and allowance to which the person or officer is 
     entitled, except that a person or officer may not receive a 
     payment under such subsection and section 332 of this title 
     for the same period of obligated service.
       ``(2) Health professions incentive pay.--Incentive pay paid 
     to an officer under subsection (b) shall be in addition to 
     any other pay and allowance to which an officer is entitled, 
     except that an officer may not receive a payment under such 
     subsection and section 353 of this title for the same skill 
     and period of service.
       ``(3) Board certification incentive pay.--Incentive pay 
     paid to an officer under subsection (c) shall be in addition 
     to any other pay and allowance to which an officer is 
     entitled, except that an officer may not receive a payment 
     under such subsection and section 353(b) of this title for 
     the same skill and period of service covered by the 
     certification.
       ``(i) Repayment.--An officer who receives a bonus or 
     incentive pay under this section and who fails to fulfill the 
     eligibility requirements for the receipt of the bonus or 
     incentive pay or complete the period of service for which the 
     bonus or incentive pay is paid, as specified in the written 
     agreement under subsection (f) in the case of a bonus, shall 
     be subject to the repayment provisions of section 373 of this 
     title.
       ``(j) Health Profession Defined.--In this section, the term 
     `health profession' means the following:
       ``(1) Any health profession performed by officers in the 
     Medical Corps of a uniformed service or by officers 
     designated as a medical officer.
       ``(2) Any health profession performed by officers in the 
     Dental Corps of a uniformed service or by officers designated 
     as a dental officer.
       ``(3) Any health profession performed by officers in the 
     Medical Service Corps of a uniformed service or by officers 
     designated as a medical service officer or biomedical 
     sciences officer.
       ``(4) Any health profession performed by officers in the 
     Medical Specialist Corps of a uniformed service or by 
     officers designated as a medical specialist.
       ``(5) Any health profession performed by officers of the 
     Nurse Corps of a uniformed service or by officers designated 
     as a nurse.
       ``(6) Any health profession performed by officers in the 
     Veterinary Corps of a uniformed service or by officers 
     designated as a veterinary officer.
       ``(7) Any health profession performed by officers 
     designated as a physician assistant.
       ``(8) Any health profession performed by officers in the 
     regular or reserve corps of the Public Health Service.
       ``(k) Termination of Authority.--No agreement may be 
     entered into under this section after December 31, 2009.

     ``Sec. 351. Hazardous duty pay

       ``(a) Hazardous Duty Pay.--The Secretary concerned may pay 
     hazardous duty pay under this section to a member of a 
     regular or reserve component of the uniformed services 
     entitled to basic pay under section 204 of this title or 
     compensation under section 206 of this title who--
       ``(1) performs duty in a hostile fire area designated by 
     the Secretary concerned, is exposed to a hostile fire event, 
     explosion of a hostile explosive device, or any other hostile 
     action, or is on duty during a month in an area in which a 
     hostile event occurred which placed the member in grave 
     danger of physical injury;
       ``(2) performs duty designated by the Secretary concerned 
     as hazardous duty based upon the inherent dangers of that 
     duty and risks of physical injury; or
       ``(3) performs duty in a foreign area designated by the 
     Secretary concerned as an area in which the member is subject 
     to imminent danger of physical injury due to threat 
     conditions.
       ``(b) Maximum Amount.--The amount of hazardous duty pay 
     paid to a member under subsection (a) shall be based on the 
     type of duty and the area in which the duty is performed, as 
     follows:
       ``(1) In the case of a member who performs duty in a 
     designated hostile fire area, as described in subsection 
     (a)(1), hazardous duty pay may not exceed $450 per month.
       ``(2) In the case of a member who performs a designated 
     hazardous duty, as described in subsection (a)(2), hazardous 
     duty pay may not exceed $250 per month.
       ``(3) In the case of a member who performs duty in a 
     foreign area designated as an imminent danger area, as 
     described in subsection (a)(3), hazardous duty pay may not 
     exceed $250 per month.
       ``(c) Method of Payment.--Hazardous duty pay shall be paid 
     on a monthly basis. A member who is eligible for hazardous 
     duty pay by reason of subsection (a) shall receive the full 
     monthly rate of hazardous duty pay authorized by the 
     Secretary concerned under such paragraph, notwithstanding 
     subsection (d).
       ``(d) Reserve Component Members Performing Inactive Duty 
     Training.--A member of a reserve component entitled to 
     compensation under section 206 of this title who is 
     authorized hazardous duty pay under this section may be paid 
     an amount of hazardous duty pay that is proportionate to the 
     compensation received by the member under section 206 of this 
     title for inactive-duty training.
       ``(e) Administration and Retroactive Payments.--The 
     effective date for the designation of a hostile fire area, as 
     described in paragraph (1) of subsection (a), and for the 
     designation of a foreign area as an imminent danger area, as 
     described in paragraph (3) of such subsection, may be a date 
     that occurs before, on, or after the actual date of the 
     designation by the Secretary concerned.
       ``(f) Determination of Fact.--Any determination of fact 
     that is made in administering subsection (a) is conclusive. 
     The determination may not be reviewed by any other officer or 
     agency of the United States unless there has been fraud or 
     gross negligence. However, the Secretary concerned may change 
     the determination on the basis of new evidence or for other 
     good cause. The regulations prescribed to administer this 
     section shall define the activities that are considered 
     hazardous for purposes of subsection (a)(2).
       ``(g) Relationship to Other Pay and Allowances.--
       ``(1) In addition to other pay and allowances.--A member 
     may be paid hazardous duty pay under this section in addition 
     to any other pay and allowances to which the member is 
     entitled. The regulations prescribed to administer this 
     section shall address dual compensation under this section 
     for multiple circumstances involving performance of a 
     designated hazardous duty, as described in paragraph (2) of 
     subsection (a), or for duty in certain designated areas, as 
     described in paragraph (1) or (3) of such subsection, that is 
     performed by a member during a single month of service.
       ``(2) Limitation.--A member may not receive hazardous duty 
     pay under this section for a month for more than three 
     qualifying instances described in subsection (a)(2).
       ``(h) Prohibition on Variable Rates.--The regulations 
     prescribed to administer this section

[[Page 32566]]

     may not include varied criteria or rates for payment of 
     hazardous duty for officers and enlisted members.
       ``(i) Termination of Authority.--No hazardous duty pay 
     under this section may be paid after December 31, 2009.

     ``Sec. 352. Assignment pay or special duty pay

       ``(a) Assignment or Special Duty Pay Authorized.--The 
     Secretary concerned may pay assignment or special duty pay 
     under this section to a member of a regular or reserve 
     component of the uniformed services who--
       ``(1) is entitled to basic pay under section 204 of this 
     title or compensation under section 206 of this title; and
       ``(2) performs duties in an assignment, location, or unit 
     designated by, and under the conditions of service specified 
     by, the Secretary concerned.
       ``(b) Maximum Amount and Method of Payment.--
       ``(1) Lump sum or installments.--Assignment or special duty 
     pay under subsection (a) may be paid monthly, in a lump sum, 
     or in periodic installments other than monthly, as determined 
     by the Secretary concerned.
       ``(2) Maximum monthly amount.--The maximum monthly amount 
     of assignment or special duty pay may not exceed $5,000.
       ``(3) Maximum lump sum amount.--The amount of a lump sum 
     payment of assignment or special duty pay payable to a member 
     may not exceed the amount equal to the product of--
       ``(A) the maximum monthly rate authorized under paragraph 
     (2) at the time the member enters into a written agreement 
     under subsection (c); and
       ``(B) the number of continuous months in the period for 
     which assignment or special duty pay will be paid pursuant to 
     the agreement.
       ``(4) Maximum installment amount.--The amount of each 
     installment payment of assignment or special duty pay payable 
     to a member on an installment basis may not exceed the amount 
     equal to--
       ``(A) the product of--
       ``(i) a monthly rate specified in the written agreement 
     entered into under subsection (c), which monthly rate may not 
     exceed the maximum monthly rate authorized under paragraph 
     (2) at the time the member enters into the agreement; and
       ``(ii) the number of continuous months in the period for 
     which the assignment or special duty pay will be paid; 
     divided by
       ``(B) the number of installments over such period.
       ``(5) Effect of extension.--If a member extends an 
     assignment or performance of duty specified in an agreement 
     with the Secretary concerned under subsection (c), assignment 
     or special duty pay for the period of the extension may be 
     paid on a monthly basis, in a lump sum, or in installments, 
     consistent with this subsection.
       ``(c) Written Agreement.--
       ``(1) Discretionary for monthly payments.--The Secretary 
     concerned may require a member to enter into a written 
     agreement with the Secretary in order to qualify for the 
     payment of assignment or special duty pay on a monthly basis. 
     The written agreement shall specify the period for which the 
     assignment or special duty pay will be paid to the member and 
     the monthly rate of the assignment or special duty pay.
       ``(2) Required for lump sum or installment payments.--The 
     Secretary concerned shall require a member to enter into a 
     written agreement with the Secretary in order to qualify for 
     payment of assignment or special duty pay on a lump sum or 
     installment basis. The written agreement shall specify the 
     period for which the assignment or special duty pay will be 
     paid to the member and the amount of the lump sum or each 
     periodic installment.
       ``(d) Reserve Component Members Performing Inactive Duty 
     Training.--A member of a reserve component entitled to 
     compensation under section 206 of this title who is 
     authorized assignment or special duty pay under this section 
     may be paid an amount of assignment or special duty pay that 
     is proportionate to the compensation received by the member 
     under section 206 of this title for inactive-duty training.
       ``(e) Relationship to Other Pay and Allowances.--Assignment 
     or special duty pay paid to a member under this section is in 
     addition to any other pay and allowances to which the member 
     is entitled.
       ``(f) Repayment.--A member who receives assignment or 
     special duty pay under this section and who fails to fulfill 
     the eligibility requirements under subsection (a) for receipt 
     of such pay shall be subject to the repayment provisions of 
     section 373 of this title.
       ``(g) Termination of Authority.--No agreement may be 
     entered into under this section after December 31, 2009.

     ``Sec. 353. Skill incentive pay or proficiency bonus

       ``(a) Skill Incentive Pay.--The Secretary concerned may pay 
     a monthly skill incentive pay to a member of a regular or 
     reserve component of the uniformed services who--
       ``(1) is entitled to basic pay under section 204 of this 
     title or compensation under section 206 of this title; and
       ``(2) serves in a career field or skill designated as 
     critical by the Secretary concerned.
       ``(b) Skill Proficiency Bonus.--The Secretary concerned may 
     pay a proficiency bonus to a member of a regular or reserve 
     component of the uniformed services who--
       ``(1) is entitled to basic pay under section 204 of this 
     title or compensation under section 206 of this title; and
       ``(2) is determined to have, and maintains, certified 
     proficiency under subsection (d) in a skill designated as 
     critical by the Secretary concerned.
       ``(c) Maximum Amounts and Methods of Payment.--
       ``(1) Skill incentive pay.--Skill incentive pay under 
     subsection (a) shall be in paid monthly in an amount not 
     exceed $1,000 per month.
       ``(2) Proficiency bonus.--A proficiency bonus under 
     subsection (b) may be paid in a lump sum at the beginning of 
     the proficiency certification period or in periodic 
     installments during the proficiency certification period. The 
     amount of the bonus may not exceed $12,000 for each 12-month 
     period of certification. The Secretary concerned may not vary 
     the criteria or rates for the proficiency bonus paid for 
     officers and enlisted members.
       ``(d) Certified Proficiency for Proficiency Bonus.--
       ``(1) Certification required.--Proficiency in a designated 
     critical skill for purposes of subsection (b) shall be 
     subject to annual certification by the Secretary concerned.
       ``(2) Duration of certification.--A certification period 
     for purposes of subsection (c)(2) shall expire at the end of 
     the one-year period beginning on the first day of the first 
     month beginning on or after the certification date.
       ``(3) Waiver.--Notwithstanding paragraphs (1) and (2), the 
     regulations prescribed to administer this section shall 
     address the circumstances under which the Secretary concerned 
     may waive the certification requirement under paragraph (1) 
     or extend a certification period under paragraph (2).
       ``(e) Written Agreement.--
       ``(1) Discretionary for skill incentive pay.--The Secretary 
     concerned may require a member to enter into a written 
     agreement with the Secretary in order to qualify for the 
     payment of skill incentive pay under subsection (a). The 
     written agreement shall specify the period for which the 
     skill incentive pay will be paid to the member and the 
     monthly rate of the pay.
       ``(2) Required for proficiency bonus.--The Secretary 
     concerned shall require a member to enter into a written 
     agreement with the Secretary in order to qualify for payment 
     of a proficiency bonus under subsection (b). The written 
     agreement shall specify the amount of the proficiency bonus, 
     the period for which the bonus will be paid, and the initial 
     certification or recertification necessary for payment of the 
     proficiency bonus.
       ``(f) Reserve Component Members Performing Inactive Duty 
     Training.--
       ``(1) Proration.--A member of a reserve component entitled 
     to compensation under section 206 of this title who is 
     authorized skill incentive pay under subsection (a) or a 
     skill proficiency bonus under subsection (b) may be paid an 
     amount of the pay or bonus, as the case may be, that is 
     proportionate to the compensation received by the member 
     under section 206 of this title for inactive-duty training.
       ``(2) Exception for foreign language proficiency.--No 
     reduction in the amount of a skill proficiency bonus may be 
     made under paragraph (1) in the case of a member of a reserve 
     component who is authorized the bonus because of the member's 
     proficiency in a foreign language.
       ``(g) Repayment.--A member who receives skill incentive pay 
     or a proficiency bonus under this section and who fails to 
     fulfill the eligibility requirement for receipt of the pay or 
     bonus shall be subject to the repayment provisions of section 
     373 of this title.
       ``(h) Relationship to Other Pays and Allowances.--A member 
     may not be paid more than one pay under this section in any 
     month for the same period of service and skill. A member may 
     be paid skill incentive pay or the proficiency bonus under 
     this section in addition to any other pay and allowances to 
     which the member is entitled, except that a member may not be 
     paid skill incentive pay or a proficiency bonus under this 
     section and hazardous duty pay under section 351 of this 
     title for the same period of service in the same career field 
     or skill.
       ``(i) Termination of Authority.--No agreement may be 
     entered into under this section after December 31, 2009.

                  ``SUBCHAPTER III--GENERAL PROVISIONS

     ``Sec. 371. Relationship to other incentives and pays

       ``(a) Treatment.--A bonus or incentive pay paid to a member 
     of the uniformed services under subchapter II is in addition 
     to any other pay and allowance to which a member is entitled, 
     unless otherwise provided under this chapter.
       ``(b) Exception.--A member may not receive a bonus or 
     incentive pay under both subchapter I and subchapter II for 
     the same activity, skill, or period of service.
       ``(c) Relationship to Other Computations.--The amount of a 
     bonus or incentive pay to which a member is entitled under 
     subchapter II may not be included in computing the amount 
     of--
       ``(1) any increase in pay authorized by any other provision 
     of this title; or
       ``(2) any retired pay, retainer pay, separation pay, or 
     disability severance pay.

     ``Sec. 372. Continuation of pays during hospitalization and 
       rehabilitation resulting from wounds, injury, or illness 
       incurred while on duty in a hostile fire area or exposed to 
       an event of hostile fire or other hostile action

       ``(a) Continuation of Pays.--If a member of a regular or 
     reserve component of a uniformed

[[Page 32567]]

     service incurs a wound, injury, or illness in the line of 
     duty while serving in a combat operation or a combat zone, 
     while serving in a hostile fire area, or while exposed to a 
     hostile fire event, as described under section 351 of this 
     title, and is hospitalized for treatment of the wound, 
     injury, or illness, the Secretary concerned may continue to 
     pay to the member, notwithstanding any provision of this 
     chapter to the contrary, all pay and allowances (including 
     any bonus, incentive pay, or similar benefit) that were being 
     paid to the member at the time the member incurred the wound, 
     injury, or illness.
       ``(b) Duration.--The payment of pay and allowances to a 
     member under subsection (a) may continue until the end of the 
     first month beginning after the earliest of the following 
     dates:
       ``(1) The date on which the member is returned for 
     assignment to other than a medical or patient unit for duty.
       ``(2) One year after the date on which the member is first 
     hospitalized for the treatment of the wound, injury, or 
     illness, except that the Secretary concerned may extend the 
     termination date in six-month increments.
       ``(3) The date on which the member is discharged, 
     separated, or retired (including temporary disability 
     retirement) from the uniformed services.
       ``(c) Bonus, Incentive Pay, or Similar Benefit Defined.--In 
     this section, the term `bonus, incentive pay, or similar 
     benefit' means a bonus, incentive pay, special pay, or 
     similar payment paid to a member of the uniformed services 
     under this title or title 10.

     ``Sec. 373. Repayment of unearned portion of bonus, incentive 
       pay, or similar benefit when conditions of payment not met

       ``(a) Repayment.--Except as provided in subsection (b), a 
     member of the uniformed services who is paid a bonus, 
     incentive pay, or similar benefit, the receipt of which is 
     contingent upon the member's satisfaction of certain service 
     or eligibility requirements, shall repay to the United States 
     any unearned portion of the bonus, incentive pay, or similar 
     benefit if the member fails to satisfy any such service or 
     eligibility requirement.
       ``(b) Exceptions.--The regulations prescribed to administer 
     this section may specify procedures for determining the 
     circumstances under which an exception to the required 
     repayment may be granted.
       ``(c) Effect of Bankruptcy.--An obligation to repay the 
     United States under this section is, for all purposes, a debt 
     owed the United States. A discharge in bankruptcy under title 
     11 does not discharge a person from such debt if the 
     discharge order is entered less than five years after--
       ``(1) the date of the termination of the agreement or 
     contract on which the debt is based; or
       ``(2) in the absence of such an agreement or contract, the 
     date of the termination of the service on which the debt is 
     based.
       ``(d) Definitions.--In this section:
       ``(1) The term `bonus, incentive pay, or similar benefit' 
     means a bonus, incentive pay, special pay, or similar 
     payment, or an educational benefit or stipend, paid to a 
     member of the uniformed services under a provision of law 
     that refers to the repayment requirements of this section or 
     section 303a(e) of this title.
       ``(2) The term `service', as used in subsection (c)(2), 
     refers to an obligation willingly undertaken by a member of 
     the uniformed services, in exchange for a bonus, incentive 
     pay, or similar benefit offered by the Secretary concerned--
       ``(A) to a member in a regular or reserve component who 
     remains on active duty or in an active status;
       ``(B) to perform duty in a specified skill, with or without 
     a specified qualification or credential;
       ``(C) to perform duty in a specified assignment, location 
     or unit; or
       ``(D) to perform duty for a specified period of time.

     ``Sec. 374. Regulations

       ``This subchapter and subchapter II shall be administered 
     under regulations prescribed by--
       ``(1) the Secretary of Defense, with respect to the armed 
     forces under the jurisdiction of the Secretary of Defense;
       ``(2) the Secretary of Homeland Security, with respect to 
     the Coast Guard when it is not operating as a service in the 
     Navy;
       ``(3) the Secretary of Health and Human Services, with 
     respect to the commissioned corps of the Public Health 
     Service; and
       ``(4) the Secretary of Commerce, with respect to the 
     National Oceanic and Atmospheric Administration.''.
       (b) Transfer of 15-Year Career Status Bonus to Subchapter 
     II.--
       (1) Transfer.--Section 322 of title 37, United States Code, 
     is transferred to appear after section 353 of subchapter II 
     of chapter 5 of such title, as added by subsection (a), and 
     is redesignated as section 354.
       (2) Conforming amendment.--Subsection (f) of such section, 
     as so transferred and redesignated, is amended by striking 
     ``section 303a(e)'' and inserting ``section 373''.
       (3) Cross references.--Sections 1401a, 1409(b)(2), and 1410 
     of title 10, United States Code, are amended by striking 
     ``section 322'' each place it appears and inserting ``section 
     322 (as in effect before the enactment of the National 
     Defense Authorization Act for Fiscal Year 2008) or section 
     354''.
       (c) Transfer of Retention Incentives for Members Qualified 
     in Critical Military Skills or Assigned to High Priority 
     Units.--
       (1) Transfer.--Section 323 of title 37, United States Code, 
     as amended by sections 614 and 622, is transferred to appear 
     after section 354 of subchapter II of chapter 5 of such 
     title, as transferred and redesignated by subsection (b)(1), 
     and is redesignated as section 355.
       (2) Conforming amendment.--Subsection (g) of such section, 
     as so transferred and redesignated, is amended by striking 
     ``section 303a(e)'' and inserting ``section 373''.
       (d) Clerical Amendment.--The table of sections at the 
     beginning of chapter 5 of title 37, United States Code, is 
     amended to read as follows:

     ``subchapter i--existing special pay, incentive pay, and bonus 
                              authorities

``Sec.
``301. Incentive pay: hazardous duty.
``301a. Incentive pay: aviation career.
``301b. Special pay: aviation career officers extending period of 
              active duty.
``301c. Incentive pay: submarine duty.
``301d. Multiyear retention bonus: medical officers of the armed 
              forces.
``301e. Multiyear retention bonus: dental officers of the armed forces.
``302. Special pay: medical officers of the armed forces.
``302a. Special pay: optometrists.
``302b. Special pay: dental officers of the armed forces.
``302c. Special pay: psychologists and nonphysician health care 
              providers.
``302d. Special pay: accession bonus for registered nurses.
``302e. Special pay: nurse anesthetists.
``302f. Special pay: reserve, recalled, or retained health care 
              officers.
``302g. Special pay: Selected Reserve health care professionals in 
              critically short wartime specialties.
``302h. Special pay: accession bonus for dental officers.
``302i. Special pay: pharmacy officers.
``302j. Special pay: accession bonus for pharmacy officers.
``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.
``303. Special pay: veterinarians.
``303a. Special pay: general provisions.
``303b. Waiver of board certification requirements.
``304. Special pay: diving duty.
``305. Special pay: hardship duty pay.
``305a. Special pay: career sea pay.
``305b. Special pay: service as member of Weapons of Mass Destruction 
              Civil Support Team.
``306. Special pay: officers holding positions of unusual 
              responsibility and of critical nature.
``306a. Special pay: members assigned to international military 
              headquarters.
``307. Special pay: special duty assignment pay for enlisted members.
``307a. Special pay: assignment incentive pay.
``308. Special pay: reenlistment bonus.
``308b. Special pay: reenlistment bonus for members of the Selected 
              Reserve.
``308c. Special pay: bonus for affiliation or enlistment in the 
              Selected Reserve.
``308d. Special pay: members of the Selected Reserve assigned to 
              certain high priority units.
``308g. Special pay: bonus for enlistment in elements of the Ready 
              Reserve other than the Selected Reserve.
``308h. Special pay: bonus for reenlistment, enlistment, or voluntary 
              extension of enlistment in elements of the Ready Reserve 
              other than the Selected Reserve.
``308i. Special pay: prior service enlistment bonus.
``308j. Special pay: affiliation bonus for officers in the Selected 
              Reserve.
``309. Special pay: enlistment bonus.
``310. Special pay: duty subject to hostile fire or imminent danger.
``312. Special pay: nuclear-qualified officers extending period of 
              active duty.
``312b. Special pay: nuclear career accession bonus.
``312c. Special pay: nuclear career annual incentive bonus.
``314. Special pay or bonus: qualified members extending duty at 
              designated locations overseas.
``315. Special pay: engineering and scientific career continuation pay.
``316. Special pay: bonus for members with foreign language 
              proficiency.
``317. Special pay: officers in critical acquisition positions 
              extending period of active duty.
``318. Special pay: special warfare officers extending period of active 
              duty.
``319. Special pay: surface warfare officer continuation pay.
``320. Incentive pay: career enlisted flyers.
``321. Special pay: judge advocate continuation pay.
``324. Special pay: accession bonus for new officers in critical 
              skills.
``325. Incentive bonus: savings plan for education expenses and other 
              contingencies.
``326. Incentive bonus: conversion to military occupational specialty 
              to ease personnel shortage.
``327. Incentive bonus: transfer between armed forces.
``328. Combat-related injury rehabilitation pay.

[[Page 32568]]

``329. Incentive bonus: retired members and reserve component members 
              volunteering for high-demand, low-density assignments.
``330. Special pay: accession bonus for officer candidates.

   ``subchapter ii--consolidation of special pay, incentive pay, and 
                           bonus authorities

``331. General bonus authority for enlisted members.
``332. General bonus authority for officers.
``333. Special bonus and incentive pay authorities for nuclear 
              officers.
``334. Special aviation incentive pay and bonus authorities for 
              officers.
``335. Special bonus and incentive pay authorities for officers in 
              health professions.
``351. Hazardous duty pay.
``352. Assignment pay or special duty pay.
``353. Skill incentive pay or proficiency bonus.
``354. Special pay: 15-year career status bonus for members entering 
              service on or after August 1, 1986.
``355. Special pay: retention incentives for members qualified in 
              critical military skills or assigned to high priority 
              units.

                  ``subchapter iii--general provisions

``371. Relationship to other incentives and pays.
``372. Continuation of pays during hospitalization and rehabilitation 
              resulting from wounds, injury, or illness incurred while 
              on duty in a hostile fire area or exposed to an event of 
              hostile fire or other hostile action.
``373. Repayment of unearned portion of bonus, incentive pay, or 
              similar benefit when conditions of payment not met.
``374. Regulations.''.

     SEC. 662. TRANSITIONAL PROVISIONS.

       (a) Implementation Plan.--
       (1) Development.--The Secretary of Defense shall develop a 
     plan to implement subchapters II and III of chapter 5 of 
     title 37, United States Code, as added by section 661(a), and 
     to correspondingly transition all of the special and 
     incentive pay programs for members of the uniformed services 
     solely to provisions of such subchapters.
       (2) Submission.--Not later than one year after the date of 
     the enactment of this Act, the Secretary shall submit the 
     implementation plan to the congressional defense committees.
       (b) Transition Period.--During a transition period of not 
     more than 10 years beginning on the date of the enactment of 
     this Act, the Secretary of Defense, the Secretary of a 
     military department, and the Secretaries referred to in 
     subsection (d) may continue to use the authorities in 
     provisions in subchapter I of chapter 5 of title 37, United 
     States Code, as designated by section 661(a), but subject to 
     the terms of such provisions and such modifications as the 
     Secretary of Defense may include in the implementation plan, 
     to provide bonuses and special and incentive pays for members 
     of the uniformed services.
       (c) Notice of Implementation of New Authorities.--Not less 
     than 30 days before the date on which a special pay or bonus 
     authority provided under subchapter II of chapter 5 of title 
     37, United States Code, as added by section 661(a), is first 
     utilized, the Secretary of Defense shall submit to the 
     congressional defense committees a notice of the 
     implementation of the authority, including whether, as a 
     result of implementation of the authority, a corresponding 
     authority in subchapter I of such chapter, as designated by 
     section 661(a), will no longer be used.
       (d) Coordination.--The Secretary of Defense shall prepare 
     the implementation plan in coordination with--
       (1) the Secretary of Homeland Security, with respect to the 
     Coast Guard;
       (2) the Secretary of Health and Human Services, with 
     respect to the commissioned corps of the Public Health 
     Service; and
       (3) the Secretary of Commerce, with respect to the National 
     Oceanic and Atmospheric Administration.
       (e) No Effect on Fiscal Year 2008 Obligations.--During 
     fiscal year 2008, obligations incurred under subchapters I, 
     II, and III of chapter 5 of title 37, United States Code, as 
     amended by section 661, to provide bonuses, incentive pays, 
     special pays, and similar payments to members of the 
     uniformed services under such subchapters may not exceed the 
     obligations that would be incurred in the absence of the 
     amendments made by such section.
                       Subtitle G--Other Matters

     SEC. 671. REFERRAL BONUS AUTHORITIES.

       (a) Codification and Modification of Army Referral Bonus 
     Authority.--
       (1) Army referral bonus.--Chapter 333 of title 10, United 
     States Code, is amended by inserting after section 3251 the 
     following new section:

     ``Sec. 3252. Bonus to encourage Army personnel to refer 
       persons for enlistment in the Army

       ``(a) Authority To Pay Bonus.--
       ``(1) Authority.--The Secretary of the Army may pay a bonus 
     under this section to an individual referred to in paragraph 
     (2) who refers to an Army recruiter a person who has not 
     previously served in an armed force and who, after such 
     referral, enlists in the regular component of the Army or in 
     the Army National Guard or Army Reserve.
       ``(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) Referral.--For purposes of this section, a referral 
     for which a bonus may be paid under subsection (a) occurs--
       ``(1) when the individual concerned contacts an Army 
     recruiter on behalf of a person interested in enlisting in 
     the Army; or
       ``(2) when a person interested in enlisting in the Army 
     contacts the Army recruiter and informs the recruiter of the 
     role of the individual concerned in initially recruiting the 
     person.
       ``(c) Certain Referrals Ineligible.--
       ``(1) Referral of immediate family.--A member of the Army 
     or civilian employee of the Department of the Army may not be 
     paid a bonus under subsection (a) for the referral of an 
     immediate family member.
       ``(2) Members in recruiting roles.--A member of the Army or 
     civilian employee of the Department of the Army serving in a 
     recruiting or retention assignment, or assigned to other 
     duties regarding which eligibility for a bonus under 
     subsection (a) could (as determined by the Secretary) be 
     perceived as creating a conflict of interest, may not be paid 
     a bonus under subsection (a).
       ``(3) Junior reserve officers' training corps 
     instructors.--A member of the Army detailed under subsection 
     (c)(1) of section 2031 of this title 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).
       ``(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 as provided in subsection (e).
       ``(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.
       ``(2) Not more than $1,000 shall be paid upon the 
     completion of basic training and individual advanced training 
     by the person.
       ``(f) Relation to Prohibition on Bounties.--The referral 
     bonus authorized by this section is not a bounty for purposes 
     of section 514(a) of this title.
       ``(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 this title, title 37 or 38, or any other 
     provision of law.
       ``(h) Duration of Authority.--A bonus may not be paid under 
     subsection (a) with respect to any referral that occurs after 
     December 31, 2008.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 3251 the following new item:

``3252. Bonus to encourage Army personnel to refer persons for 
              enlistment in the Army.''.

       (b) Bonus for Referral of Persons for Appointment as 
     Officers to Serve in Health Professions.--
       (1) Health professions referral bonus .--Chapter 53 of such 
     title is amended by inserting before section 1031 the 
     following new section:

     ``Sec. 1030. Bonus to encourage Department of Defense 
       personnel to refer persons for appointment as officers to 
       serve in health professions

       ``(a) Authority To Pay Bonus.--
       ``(1) Authority.--The Secretary of Defense may authorize 
     the appropriate Secretary to pay a bonus under this section 
     to an individual referred to in paragraph (2) who refers to a 
     military recruiter a person who has not previously served in 
     an armed force and, after such referral, takes an oath of 
     enlistment that leads to appointment as a commissioned 
     officer, or accepts an appointment as a commissioned officer, 
     in an armed force in a health profession designated by the 
     appropriate Secretary for purposes of this section.
       ``(2) Individuals eligible for bonus.--Subject to 
     subsection (c), the following individuals are eligible for a 
     referral bonus under this section:
       ``(A) A member of the armed forces in a regular component 
     of the armed forces.
       ``(B) A member of the armed forces in a reserve component 
     of the armed forces.
       ``(C) A member of the armed forces in a retired status, 
     including a member under 60 years of age who, but for age, 
     would be eligible for retired or retainer pay.
       ``(D) A civilian employee of a military department or the 
     Department of Defense.
       ``(b) Referral.--For purposes of this section, a referral 
     for which a bonus may be paid under subsection (a) occurs--
       ``(1) when the individual concerned contacts a military 
     recruiter on behalf of a person interested in taking an oath 
     of enlistment that leads to appointment as a commissioned 
     officer, or accepting an appointment as a commissioned 
     officer, as applicable, in an armed force in a health 
     profession; or

[[Page 32569]]

       ``(2) when a person interested in taking an oath of 
     enlistment that leads to appointment as a commissioned 
     officer, or accepting an appointment as a commissioned 
     officer, as applicable, in an armed force in a health 
     profession contacts a military recruiter and informs the 
     recruiter of the role of the individual concerned in 
     initially recruiting the person.
       ``(c) Certain Referrals Ineligible.--
       ``(1) Referral of immediate family.--A member of the armed 
     forces or civilian employee of a military department or the 
     Department of Defense may not be paid a bonus under 
     subsection (a) for the referral of an immediate family 
     member.
       ``(2) Members in recruiting roles.--A member of the armed 
     forces or civilian employee of a military department or the 
     Department of Defense serving in a recruiting or retention 
     assignment, or assigned to other duties regarding which 
     eligibility for a bonus under subsection (a) could (as 
     determined by the appropriate Secretary) be perceived as 
     creating a conflict of interest, may not be paid a bonus 
     under subsection (a).
       ``(3) Junior reserve officers' training corps 
     instructors.--A member of the armed forces detailed under 
     subsection (c)(1) of section 2031 of this title to serve as 
     an administrator or instructor in the Junior Reserve 
     Officers' Training Corps program or a retired member of the 
     armed forces employed as an administrator or instructor in 
     the program under subsection (d) of such section may not be 
     paid a bonus under subsection (a).
       ``(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 as provided in subsection (e).
       ``(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 execution 
     by the person of an agreement to serve as an officer in a 
     health profession in an armed force for not less than 3 
     years,
       ``(2) Not more than $1,000 shall be paid upon the 
     completion by the person of the initial period of military 
     training as an officer.
       ``(f) Relation to Prohibition on Bounties.--The referral 
     bonus authorized by this section is not a bounty for purposes 
     of section 514(a) of this title.
       ``(g) Coordination With Receipt of Retired Pay.--A bonus 
     paid under this section to a member of the armed forces in a 
     retired status is in addition to any compensation to which 
     the member is entitled under this title, title 37 or 38, or 
     any other provision of law.
       ``(h) Appropriate Secretary Defined.--In this section, the 
     term `appropriate Secretary' means--
       ``(1) the Secretary of the Army, with respect to matters 
     concerning the Army;
       ``(2) the Secretary of the Navy, with respect to matters 
     concerning the Navy, the Marine Corps, and the Coast Guard 
     when it is operating as a service in the Navy;
       ``(3) the Secretary of the Air Force, with respect to 
     matters concerning the Air Force; and
       ``(4) the Secretary of Defense, with respect to personnel 
     of the Department of Defense.
       ``(i) Duration of Authority.--A bonus may not be paid under 
     subsection (a) with respect to any referral that occurs after 
     December 31, 2008.''.
       (2) Clerical amendments.--The table of sections at the 
     beginning of such chapter is amended by inserting before the 
     item relating to section 1031 the following new item:

``1030. Bonus to encourage Department of Defense personnel to refer 
              persons for appointment as officers to serve in health 
              professions.''.

       (c) Repeal of Superseded army Referral Bonus Authority.--
       (1) Repeal.--Section 645 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163) 
     is repealed.
       (2) Payment of bonuses under superseded authority.--Any 
     bonus payable under section 645 of the National Defense 
     Authorization Act for Fiscal Year 2006, as in effect before 
     its repeal by paragraph (1), shall remain payable after that 
     date and shall be paid in accordance with the provisions of 
     such section, as in effect on the day before the date of the 
     enactment of this Act.

     SEC. 672. EXPANSION OF EDUCATION LOAN REPAYMENT PROGRAM FOR 
                   MEMBERS OF THE SELECTED RESERVE.

       (a) Additional Educational Loans Eligible for Repayment.--
     Paragraph (1) of subsection (a) of section 16301 of title 10, 
     United States Code, is amended--
       (1) by striking ``or'' at the end of subparagraph (B);
       (2) by striking the period at the end of subparagraph (C) 
     and inserting ``; or''; and
       (3) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) any loan incurred for educational purposes made by a 
     lender that is--
       ``(i) an agency or instrumentality of a State;
       ``(ii) a financial or credit institution (including an 
     insurance company) that is subject to examination and 
     supervision by an agency of the United States or any State;
       ``(iii) a pension fund approved by the Secretary for 
     purposes of this section; or
       ``(iv) a nonprofit private entity designated by a State, 
     regulated by that State, and approved by the Secretary for 
     purposes of this section.''.
       (b) Participation of Officers in Program.--Such subsection 
     is further amended--
       (1) in paragraph (2)--
       (A) by striking ``Except as provided in paragraph (3), the 
     Secretary'' and inserting ``The Secretary''; and
       (B) by striking ``an enlisted member of the Selected 
     Reserve of the Ready Reserve of an armed force in a reserve 
     component and military specialty'' and inserting ``a member 
     of the Selected Reserve of the Ready Reserve of an armed 
     force in a reserve component and in an officer program or 
     military specialty''; and
       (2) by striking paragraph (3).
       (c) Clerical Amendments.--
       (1) Section heading.--The heading of such section is 
     amended to read as follows:

     ``Sec. 16301. Education loan repayment program: members of 
       Selected Reserve''.

       (2) Table of sections.--The table of sections at the 
     beginning of chapter 1609 of such title is amended by 
     striking the item relating to section 16301 and inserting the 
     following new item:

``16301. Education loan repayment program: members of Selected 
              Reserve.''.

     SEC. 673. ENSURING ENTRY INTO UNITED STATES AFTER TIME ABROAD 
                   FOR PERMANENT RESIDENT ALIEN MILITARY SPOUSES 
                   AND CHILDREN.

       Section 284 of the Immigration and Nationality Act (8 
     U.S.C. 1354) is amended--
       (1) by striking ``Nothing'' and inserting ``(a) Nothing''; 
     and
       (2) by adding at the end the following new subsection:
       ``(b) If a person lawfully admitted for permanent residence 
     is the spouse or child of a member of the Armed Forces of the 
     United States, is authorized to accompany the member and 
     reside abroad with the member pursuant to the member's 
     official orders, and is so accompanying and residing with the 
     member (in marital union if a spouse), then the residence and 
     physical presence of the person abroad shall not be treated 
     as--
       ``(1) an abandonment or relinquishment of lawful permanent 
     resident status for purposes of clause (i) of section 
     101(a)(13)(C); or
       ``(2) an absence from the United States for purposes of 
     clause (ii) of such section.''.

     SEC. 674. OVERSEAS NATURALIZATION FOR MILITARY SPOUSES AND 
                   CHILDREN.

       (a) Spouses.--Section 319 of the Immigration and 
     Nationality Act (8 U.S.C. 1430) is amended by adding at the 
     end the following new subsection:
       ``(e)(1) In the case of a person lawfully admitted for 
     permanent residence in the United States who is the spouse of 
     a member of the Armed Forces of the United States, is 
     authorized to accompany such member and reside abroad with 
     the member pursuant to the member's official orders, and is 
     so accompanying and residing with the member in marital 
     union, such residence and physical presence abroad shall be 
     treated, for purposes of subsection (a) and section 316(a), 
     as residence and physical presence in--
       ``(A) the United States; and
       ``(B) any State or district of the Department of Homeland 
     Security in the United States.
       ``(2) Notwithstanding any other provision of law, a spouse 
     described in paragraph (1) shall be eligible for 
     naturalization proceedings overseas pursuant to section 
     1701(d) of the National Defense Authorization Act for Fiscal 
     Year 2004 (Public Law 108-136; 8 U.S.C. 1443a).''.
       (b) Children.--Section 322 of the Immigration and 
     Nationality Act (8 U.S.C. 1433) is amended by adding at the 
     end the following new subsection:
       ``(d) In the case of a child of a member of the Armed 
     Forces of the United States who is authorized to accompany 
     such member and reside abroad with the member pursuant to the 
     member's official orders, and is so accompanying and residing 
     with the member--
       ``(1) any period of time during which the member of the 
     Armed Forces is residing abroad pursuant to official orders 
     shall be treated, for purposes of subsection (a)(2)(A), as 
     physical presence in the United States;
       ``(2) subsection (a)(5) shall not apply; and
       ``(3) the oath of allegiance described in subsection (b) 
     may be subscribed to abroad pursuant to section 1701(d) of 
     the National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136; 8 U.S.C. 1443a).''.
       (c) Overseas Naturalization Authority.--Section 1701(d) of 
     the National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136; 8 U.S.C. 1443a) is amended--
       (1) in the subsection heading, by inserting ``and Their 
     Spouses and Children'' after ``Forces''; and
       (2) by inserting ``, and persons made eligible for 
     naturalization by section 319(e) or 322(d) of such Act,'' 
     after ``Armed Forces''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of enactment of this Act and 
     apply to any application for naturalization or issuance of a 
     certificate of citizenship pending on or after such date.

     SEC. 675. MODIFICATION OF AMOUNT OF BACK PAY FOR MEMBERS OF 
                   NAVY AND MARINE CORPS SELECTED FOR PROMOTION 
                   WHILE INTERNED AS PRISONERS OF WAR DURING WORLD 
                   WAR II TO TAKE INTO ACCOUNT CHANGES IN CONSUMER 
                   PRICE INDEX.

       (a) Modification.--Section 667(c) of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398; 114 Stat. 1654A-170) 
     is amended by adding at the end the following new paragraph:
       ``(3) The amount determined for a person under paragraph 
     (1) shall be increased to reflect increases in cost of living 
     since the basic pay referred to in paragraph (1)(B) was paid 
     to or for

[[Page 32570]]

     that person, calculated on the basis of the Consumer Price 
     Index (all items--United States city average) published 
     monthly by the Bureau of Labor Statistics.''.
       (b) Recalculation of Previous Payments.--In the case of any 
     payment of back pay made to or for a person under section 667 
     of the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001 before the date of the enactment of this 
     Act, the Secretary of the Navy shall--
       (1) recalculate the amount of back pay to which the person 
     is entitled by reason of the amendment made by subsection 
     (a); and
       (2) if the amount of back pay, as so recalculated, exceeds 
     the amount of back pay so paid, pay the person, or the 
     surviving spouse of the person, an amount equal to the 
     excess.
                   TITLE VII--HEALTH CARE PROVISIONS

          Subtitle A--Improvements to Military Health Benefits

Sec. 701. One-year extension of prohibition on increases in certain 
              health care costs for members of the uniformed services.
Sec. 702. Temporary prohibition on increase in copayments under retail 
              pharmacy system of pharmacy benefits program.
Sec. 703. Inclusion of TRICARE retail pharmacy program in Federal 
              procurement of pharmaceuticals.
Sec. 704. Stipend for members of reserve components for health care for 
              certain dependents.
Sec. 705. Authority for expansion of persons eligible for continued 
              health benefits coverage.
Sec. 706. Continuation of eligibility for TRICARE Standard coverage for 
              certain members of the Selected Reserve.
       Sec. 707. Extension of pilot program for health care 
           delivery.
       Sec. 708. Inclusion of mental health care in definition of 
           health care and report on mental health care services.

                    Subtitle B--Studies and Reports

       Sec. 711. Surveys on continued viability of TRICARE 
           Standard and TRICARE Extra.
       Sec. 712. Report on training in preservation of remains 
           under combat or combat-related conditions.
       Sec. 713. Report on patient satisfaction surveys.
       Sec. 714. Report on medical physical examinations of 
           members of the Armed Forces before their deployment.
       Sec. 715. Report and study on multiple vaccinations of 
           members of the Armed Forces.
       Sec. 716. Review of gender- and ethnic group-specific 
           mental health services and treatment for members of the 
           Armed Forces.
       Sec. 717. Licensed mental health counselors and the TRICARE 
           program.
       Sec. 718. Report on funding of the Department of Defense 
           for health care.

                       Subtitle C--Other Matters

       Sec. 721. Prohibition on conversion of military medical and 
           dental positions to civilian medical and dental 
           positions.
       Sec. 722. Establishment of Joint Pathology Center.
          Subtitle A--Improvements to Military Health Benefits

     SEC. 701. ONE-YEAR EXTENSION OF PROHIBITION ON INCREASES IN 
                   CERTAIN HEALTH CARE COSTS FOR MEMBERS OF THE 
                   UNIFORMED SERVICES.

       (a) Charges Under Contracts for Medical Care.--Section 
     1097(e) of title 10, United States Code, is amended by 
     striking ``September 30, 2007'' and inserting ``September 30, 
     2008''.
       (b) Charges for Inpatient Care.--Section 1086(b)(3) of such 
     title is amended by striking ``September 30, 2007.'' and 
     inserting ``September 30, 2008''.
       (c) Premiums Under TRICARE Coverage for Certain Members in 
     the Selected Reserve.--Section 1076d(d)(3) of such title is 
     amended by striking ``September 30, 2007'' and inserting 
     ``September 30, 2008''.

     SEC. 702. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS 
                   UNDER RETAIL PHARMACY SYSTEM OF PHARMACY 
                   BENEFITS PROGRAM.

       During the period beginning on October 1, 2007, and ending 
     on September 30, 2008, the cost sharing requirements 
     established under paragraph (6) of section 1074g(a) 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.

     SEC. 703. INCLUSION OF TRICARE RETAIL PHARMACY PROGRAM IN 
                   FEDERAL PROCUREMENT OF PHARMACEUTICALS.

       (a) In General.--Section 1074g of title 10, United States 
     Code, is amended--
       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively; and
       (2) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f) Procurement of Pharmaceuticals by TRICARE Retail 
     Pharmacy Program.--With respect to any prescription filled on 
     or after the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2008, the TRICARE retail 
     pharmacy program shall be treated as an element of the 
     Department of Defense for purposes of the procurement of 
     drugs by Federal agencies under section 8126 of title 38 to 
     the extent necessary to ensure that pharmaceuticals paid for 
     by the Department of Defense that are provided by pharmacies 
     under the program to eligible covered beneficiaries under 
     this section are subject to the pricing standards in such 
     section 8126.''.
       (b) Regulations.--The Secretary of Defense shall, after 
     consultation with the other administering Secretaries under 
     chapter 55 of title 10, United States Code, modify the 
     regulations under subsection (h) of section 1074g of title 
     10, United States Code (as redesignated by subsection (a)(1) 
     of this section), to implement the requirements of subsection 
     (f) of section 1074g of title 10, United States Code (as 
     amended by subsection (a)(2) of this section). The Secretary 
     shall so modify such regulations not later than December 31, 
     2007.

     SEC. 704. STIPEND FOR MEMBERS OF RESERVE COMPONENTS FOR 
                   HEALTH CARE FOR CERTAIN DEPENDENTS.

       The Secretary of Defense may, pursuant to regulations 
     prescribed by the Secretary, pay a stipend to a member of a 
     reserve component of the Armed Forces who is called or 
     ordered to active duty for a period of more than 30 days for 
     purposes of maintaining civilian health care coverage for a 
     dependant whom the Secretary determines to possess a special 
     health care need that would be best met by remaining in the 
     member's civilian health plan. In making such determination, 
     the Secretary shall consider whether--
       (1) the dependent of the member was receiving treatment for 
     the special health care need before the call or order to 
     active duty of the member; and
       (2) the call or order to active duty would result in an 
     interruption in treatment or a change in health care provider 
     for such treatment.

     SEC. 705. AUTHORITY FOR EXPANSION OF PERSONS ELIGIBLE FOR 
                   CONTINUED HEALTH BENEFITS COVERAGE.

       (a) Authority To Specify Additional Eligible Persons.--
     Subsection (b) of section 1078a of title 10, United States 
     Code, is amended by adding at the end the following new 
     paragraph:
       ``(4) Any other person specified in regulations prescribed 
     by the Secretary of Defense for purposes of this paragraph 
     who loses entitlement to health care services under this 
     chapter or section 1145 of this title, subject to such terms 
     and conditions as the Secretary shall prescribe in the 
     regulations.''.
       (b) Election of Coverage.--Subsection (d) of such section 
     is amended by adding at the end the following new paragraph:
       ``(4) In the case of a person described in subsection 
     (b)(4), by such date as the Secretary shall prescribe in the 
     regulations required for purposes of that subsection.''.
       (c) Period of Coverage.--Subsection (g)(1) of such section 
     is amended--
       (1) in subparagraph (B), by striking ``and'' at the end;
       (2) in subparagraph (C), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(D) in the case of a person described in subsection 
     (b)(4), the date that is 36 months after the date on which 
     the person loses entitlement to health care services as 
     described in that subsection.''.

     SEC. 706. CONTINUATION OF ELIGIBILITY FOR TRICARE STANDARD 
                   COVERAGE FOR CERTAIN MEMBERS OF THE SELECTED 
                   RESERVE.

       (a) In General.--Section 706(f) of the John Warner National 
     Defense Authorization Act for Fiscal Year 2007 (Public Law 
     109-364; 120 Stat. 2282; 10 U.S.C. 1076d note) is amended--
       (1) by striking ``Enrollments'' and inserting ``(1) Except 
     as provided in paragraph (2), enrollments''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The enrollment of a member in TRICARE Standard that 
     is in effect on the day before health care under TRICARE 
     Standard is provided pursuant to the effective date in 
     subsection (g) shall not be terminated by operation of the 
     exclusion of eligibility under subsection (a)(2) of such 
     section 1076d, as so amended, for the duration of the 
     eligibility of the member under TRICARE Standard as in effect 
     on October 16, 2006.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 2007.

     SEC. 707. EXTENSION OF PILOT PROGRAM FOR HEALTH CARE 
                   DELIVERY.

       (a) Extension of Duration of Pilot Program.--Section 721(e) 
     of the Ronald W. Reagan National Defense Authorization Act 
     for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1988; 10 
     U.S.C. 1092 note) is amended by striking ``and 2007'' and 
     inserting ``, 2007, 2008, 2009, and 2010''.
       (b) Extension of Report Deadline.--Section 721(f) of such 
     Act is amended by striking ``July 1, 2007'' and inserting 
     ``July 1, 2010''.
       (c) Revision in Selection Criteria.--Section 721(d)(2) of 
     such Act is amended by striking ``expected to increase over 
     the next five years'' and inserting ``has increased over the 
     five years preceding 2008''.
       (d) Addition to Requirements of Pilot Program.--Section 
     721(b) of such Act is amended--
       (1) by striking ``and'' at the end of paragraph (3);
       (2) by striking the period and inserting ``; and'' at the 
     end of paragraph (4); and
       (3) by adding at the end the following:

[[Page 32571]]

       ``(5) collaborate with State and local authorities to 
     create an arrangement to share and exchange, between the 
     Department of Defense and non-military health care systems, 
     personal health information and data of military personnel 
     and their families.''.

     SEC. 708. INCLUSION OF MENTAL HEALTH CARE IN DEFINITION OF 
                   HEALTH CARE AND REPORT ON MENTAL HEALTH CARE 
                   SERVICES.

       (a) Inclusion of Mental Health Care in Definition of Health 
     Care.--Section 1072 of title 10, United States Code, is 
     amended by adding at the end the following new paragraph:
       ``(10) The term `health care' includes mental health 
     care.''.
       (b) Report on Access to Mental Health Care Services.--Not 
     later than one year 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 adequacy of access to mental 
     health services under the TRICARE program, including in the 
     geographic areas where surveys on the continued viability of 
     TRICARE Standard and TRICARE Extra are conducted under 
     section 711 of this Act.
                    Subtitle B--Studies and Reports

     SEC. 711. SURVEYS ON CONTINUED VIABILITY OF TRICARE STANDARD 
                   AND TRICARE EXTRA.

       (a) Requirement for Surveys.--
       (1) In general.--The Secretary of Defense shall conduct 
     surveys of health care providers and beneficiaries who use 
     TRICARE in the United States to determine, utilizing a 
     reconciliation of the responses of providers and 
     beneficiaries to such surveys, each of the following:
       (A) How many health care providers in TRICARE Prime service 
     areas selected under paragraph (3)(A) are accepting new 
     patients under each of TRICARE Standard and TRICARE Extra.
       (B) How many health care providers in geographic areas in 
     which TRICARE Prime is not offered are accepting patients 
     under each of TRICARE Standard and TRICARE Extra.
       (C) The availability of mental health care providers in 
     TRICARE Prime service areas selected under paragraph (3)(C) 
     and in geographic areas in which TRICARE Prime is not 
     offered.
       (2) Benchmarks.--The Secretary shall establish for purposes 
     of the surveys required by paragraph (1) benchmarks for 
     primary care and specialty care providers, including mental 
     health care providers, to be utilized to determine the 
     adequacy of the availability of health care providers to 
     beneficiaries eligible for TRICARE.
       (3) Scope of surveys.--The Secretary shall carry out the 
     surveys required by paragraph (1) as follows:
       (A) In the case of the surveys required by subparagraph (A) 
     of that paragraph, in at least 20 TRICARE Prime service areas 
     in the United States in each of fiscal years 2008 through 
     2011.
       (B) In the case of the surveys required by subparagraph (B) 
     of that paragraph, in 20 geographic areas in which TRICARE 
     Prime is not offered and in which significant numbers of 
     beneficiaries who are members of the Selected Reserve reside.
       (C) In the case of the surveys required by subparagraph (C) 
     of that paragraph, in at least 40 geographic areas.
       (4) Priority for surveys.--In prioritizing the areas which 
     are to be surveyed under paragraph (1), the Secretary shall--
       (A) consult with representatives of TRICARE beneficiaries 
     and health care and mental health care providers to identify 
     locations where TRICARE Standard beneficiaries are 
     experiencing significant levels of access-to-care problems 
     under TRICARE Standard or TRICARE Extra;
       (B) give a high priority to surveying health care and 
     mental health care providers in such areas; and
       (C) give a high priority to surveying beneficiaries and 
     providers located in geographic areas with high 
     concentrations of members of the Selected Reserve.
       (5) Information from providers.--The surveys required by 
     paragraph (1) shall include questions seeking to determine 
     from health care and mental health care providers the 
     following:
       (A) Whether the provider is aware of the TRICARE program.
       (B) What percentage of the provider's current patient 
     population uses any form of TRICARE.
       (C) Whether the provider accepts patients for whom payment 
     is made under the medicare program for health care and mental 
     health care services.
       (D) If the provider accepts patients referred to in 
     subparagraph (C), whether the provider would accept 
     additional such patients who are not in the provider's 
     current patient population.
       (6) Information from beneficiaries.--The surveys required 
     by paragraph (1) shall include questions seeking information 
     to determine from TRICARE beneficiaries whether they have 
     difficulties in finding health care and mental health care 
     providers willing to provide services under TRICARE Standard 
     or TRICARE Extra.
       (b) GAO Review.--
       (1) Ongoing review.--The Comptroller General shall, on an 
     ongoing basis, review--
       (A) the processes, procedures, and analysis used by the 
     Department of Defense to determine the adequacy of the number 
     of health care and mental health care providers--
       (i) that currently accept TRICARE Standard or TRICARE Extra 
     beneficiaries as patients under TRICARE Standard in each 
     TRICARE area as of the date of completion of the review; and
       (ii) that would accept TRICARE Standard or TRICARE Extra 
     beneficiaries as new patients under TRICARE Standard or 
     TRICARE Extra, as applicable, within a reasonable time after 
     the date of completion of the review; and
       (B) the actions taken by the Department of Defense to 
     ensure ready access of TRICARE Standard beneficiaries to 
     health care and mental health care under TRICARE Standard in 
     each TRICARE area, including any pending or resolved requests 
     for waiver of payment limits in order to improve access to 
     health care or mental health care in a specific geographic 
     area.
       (2) Reports.--The Comptroller General shall submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives on a bi-annual basis a report on the results 
     of the review under paragraph (1). Each report shall include 
     the following:
       (A) An analysis of the adequacy of the surveys under 
     subsection (a).
       (B) An identification of any impediments to achieving 
     adequacy of availability of health care and mental health 
     care under TRICARE Standard or TRICARE Extra.
       (C) An assessment of the adequacy of Department of Defense 
     education programs to inform health care and mental health 
     care providers about TRICARE Standard and TRICARE Extra.
       (D) An assessment of the adequacy of Department of Defense 
     initiatives to encourage health care and mental health care 
     providers to accept patients under TRICARE Standard and 
     TRICARE Extra.
       (E) An assessment of the adequacy of information available 
     to TRICARE Standard beneficiaries to facilitate access by 
     such beneficiaries to health care and mental health care 
     under TRICARE Standard and TRICARE Extra.
       (F) An assessment of any need for adjustment of health care 
     and mental health care provider payment rates to attract 
     participation in TRICARE Standard by appropriate numbers of 
     health care and mental health care providers.
       (G) An assessment of the adequacy of Department of Defense 
     programs to inform members of the Selected Reserve about the 
     TRICARE Reserve Select program.
       (H) An assessment of the ability of TRICARE Reserve Select 
     beneficiaries to receive care in their geographic area.
       (c) Effective Date.--This section shall take effect on 
     October 1, 2007.
       (d) Repeal of Superseded Requirements and Authority.--
     Section 723 of the National Defense Authorization Act for 
     Fiscal Year 2004 (10 U.S.C. 1073 note) is repealed, effective 
     as of October 1, 2007.
       (e) Definitions.--In this section:
       (1) The term ``TRICARE Extra'' means the option of the 
     TRICARE program under which TRICARE Standard beneficiaries 
     may obtain discounts on cost-sharing as a result of using 
     TRICARE network providers.
       (2) The term ``TRICARE Prime'' means the managed care 
     option of the TRICARE program.
       (3) The term ``TRICARE Prime service area'' means a 
     geographic area designated by the Department of Defense in 
     which managed care support contractors develop a managed care 
     network under TRICARE Prime.
       (4) The term ``TRICARE Standard'' means the option of the 
     TRICARE program that is also known as the Civilian Health and 
     Medical Program of the Uniformed Services, as defined in 
     section 1072(4) of title 10, United States Code.
       (5) The term ``TRICARE Reserve Select'' means the option of 
     the TRICARE program that allows members of the Selected 
     Reserve to enroll in TRICARE Standard, pursuant to section 
     1076d of title 10, United States Code.
       (6) The term ``member of the Selected Reserve'' means a 
     member of the Selected Reserve of the Ready Reserve of a 
     reserve component of the Armed Forces.
       (7) The term ``United States'' means the United States (as 
     defined in section 101(a) of title 10, United States Code), 
     its possessions (as defined in such section), and the 
     Commonwealth of Puerto Rico.

     SEC. 712. REPORT ON TRAINING IN PRESERVATION OF REMAINS UNDER 
                   COMBAT OR COMBAT-RELATED CONDITIONS.

       (a) 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 requirements of 
     section 567 of the John Warner National Defense Authorization 
     Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2224; 
     10 U.S.C. 1481 note).
       (b) Matters Covered.--The report shall include a detailed 
     description of the implementation of such section, 
     including--
       (1) where the training program is taking place;
       (2) who is providing the training;
       (3) the number of each type of military health care 
     professional trained to date; and
       (4) what the training covers.
       (c) Deadline.--The report required by this section shall be 
     submitted not later than 180 days after the date of the 
     enactment of this Act.

     SEC. 713. REPORT ON PATIENT SATISFACTION SURVEYS.

       (a) Report Required.--Not later than March 1, 2008, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the ongoing patient 
     satisfaction surveys taking place in Department of Defense 
     inpatient and outpatient settings at military treatment 
     facilities.
       (b) Content.--The report required under subsection (a) 
     shall include the following:
       (1) The types of survey questions asked.
       (2) How frequently the surveying is conducted.

[[Page 32572]]

       (3) How often the results are analyzed and reported back to 
     the treatment facilities.
       (4) To whom survey feedback is made available.
       (5) How best practices are incorporated for quality 
     improvement.
       (6) An analysis of the effect of inpatient and outpatient 
     surveys on quality improvement and a comparison of patient 
     satisfaction survey programs with patient satisfaction survey 
     programs used by other public and private health care systems 
     and organizations.
       (c) Use of Report Information.--The Secretary shall use 
     information in the report as the basis for a plan for 
     improvements in patient satisfaction surveys used to assess 
     health care at military treatment facilities in order to 
     ensure the provision of high quality health care and hospital 
     services in such facilities.

     SEC. 714. REPORT ON MEDICAL PHYSICAL EXAMINATIONS OF MEMBERS 
                   OF THE ARMED FORCES BEFORE THEIR DEPLOYMENT.

       Not later than April 1, 2008, the Secretary of Defense 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report setting 
     forth the following:
       (1) A comparison of the policies of the military 
     departments concerning medical physical examinations of 
     members of the Armed Forces before their deployment, 
     including an identification of instances in which a member 
     (including a member of a reserve component) may be required 
     to undergo multiple physical examinations, from the time of 
     notification of an upcoming deployment through the period of 
     preparation for deployment.
       (2) An assessment of the current policies related to, as 
     well as the feasibility of, each of the following:
       (A) A single predeployment physical examination for members 
     of the Armed Forces before their deployment.
       (B) A single system for tracking electronically the results 
     of examinations under subparagraph (A) that can be shared 
     among the military departments and thereby eliminate 
     redundancy of medical physical examinations for members of 
     the Armed Forces before their deployment.

     SEC. 715. REPORT AND STUDY ON MULTIPLE VACCINATIONS OF 
                   MEMBERS OF THE ARMED FORCES.

       (a) Report Required.--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 the policies of the 
     Department of Defense for administering and evaluating the 
     vaccination of members of the Armed Forces.
       (b) Elements.--The report required by subsection (a) shall 
     include the following:
       (1) An assessment of the Department's policies governing 
     the administration of multiple vaccinations in a 24-hour 
     period, including the procedures providing for a full review 
     of an individual's medical history prior to the 
     administration of multiple vaccinations, and whether such 
     policies and procedures differ for members of the Armed 
     Forces on active duty and members of reserve components.
       (2) An assessment of how the Department's policies on 
     multiple vaccinations in a 24-hour period conform to current 
     regulations of the Food and Drug Administration and research 
     performed or being performed by the Centers for Disease 
     Control, other non-military Federal agencies, and non-federal 
     institutions on multiple vaccinations in a 24-hour period.
       (3) An assessment of the Department's procedures for 
     initiating investigations of deaths of members of the Armed 
     Forces in which vaccinations may have played a role, 
     including whether such investigations can be requested by 
     family members of the deceased individuals.
       (4) The number of deaths of members of the Armed Forces 
     since May 18, 1998, that the Department has investigated for 
     the potential role of vaccine administration, including both 
     the number of deaths investigated that was alleged to have 
     involved more than one vaccine administered in a given 24-
     hour period and the number of deaths investigated that was 
     determined to have involved more than one vaccine 
     administered in a given 24-hour period.
       (5) An assessment of the procedures for providing the 
     Adjutants General of the various States and territories with 
     up-to-date information on the effectiveness and potential 
     allergic reactions and side effects of vaccines required to 
     be taken by National Guard members.
       (6) An assessment of whether procedures are in place to 
     provide that the Adjutants General of the various States and 
     territories retain updated medical records of each National 
     Guard member called up for active duty.

     SEC. 716. REVIEW OF GENDER- AND ETHNIC GROUP-SPECIFIC MENTAL 
                   HEALTH SERVICES AND TREATMENT FOR MEMBERS OF 
                   THE ARMED FORCES.

       (a) Comprehensive Review.--The Secretary of Defense shall 
     conduct a comprehensive review of--
       (1) the need for gender- and ethnic group-specific mental 
     health treatment and services for members of the Armed 
     Forces; and
       (2) the efficacy and adequacy of existing gender- and 
     ethnic group-specific mental health treatment programs and 
     services for members of the Armed Forces, to include 
     availability of and access to such programs.
       (b) Elements.--The review required by subsection (a) shall 
     include, but not be limited to, an assessment of the 
     following:
       (1) The need for gender- and ethnic group-specific mental 
     health outreach, prevention, and treatment services for 
     members of the Armed Forces.
       (2) The access to and efficacy of existing gender- and 
     ethnic group-specific mental health outreach, prevention, and 
     treatment services and programs (including substance abuse 
     programs).
       (3) The availability of gender- and ethnic group-specific 
     services and treatment for members of the Armed Forces who 
     experienced sexual assault or abuse.
       (4) The access to and need for treatment facilities 
     focusing on the gender- and ethnic group-specific mental 
     health care needs of members of the Armed Forces.
       (5) The need for further clinical research on the gender- 
     and ethnic group-specific needs of members of the Armed 
     Forces who served in a combat zone.
       (c) Report.--Not later than 90 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 
     review required by subsection (a).

     SEC. 717. LICENSED MENTAL HEALTH COUNSELORS AND THE TRICARE 
                   PROGRAM.

       (a) Regulations.--The Secretary of Defense shall prescribe 
     regulations to establish criteria that licensed or certified 
     mental health counselors shall meet in order to be able to 
     independently provide care to TRICARE beneficiaries and 
     receive payment under the TRICARE program for such services. 
     The criteria shall include requirements for education level, 
     licensure, certification, and clinical experience as 
     considered appropriate by the Secretary.
       (b) Study Required.--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--
       (1) conducting an independent study of the credentials, 
     preparation, and training of individuals practicing as 
     licensed mental health counselors; and
       (2) making recommendations for permitting licensed mental 
     health counselors to practice independently under the TRICARE 
     program.
       (c) Elements of Study.--
       (1) Educational requirements.--The study required by 
     subsection (b) shall provide for an assessment of the 
     educational requirements and curricula relevant to mental 
     health practice for licensed mental health counselors, 
     including types of degrees recognized, certification 
     standards for graduate programs for such profession, and 
     recognition of undergraduate coursework for completion of 
     graduate degree requirements.
       (2) Licensing requirements.--The study required by 
     subsection (b) shall provide for an assessment of State 
     licensing requirements for licensed mental health counselors, 
     including for each level of licensure if a State issues more 
     than one type of license for the profession. The assessment 
     shall examine requirements in the areas of education, 
     training, examination, continuing education, and ethical 
     standards, and shall include an evaluation of the extent to 
     which States authorize members of the licensed mental health 
     counselor profession to diagnose and treat mental illnesses.
       (3) Clinical experience requirements.--The study required 
     by subsection (b) shall provide for an analysis of the 
     requirements for clinical experience for a licensed mental 
     health counselor to be recognized under regulations for the 
     TRICARE program, and recommendations, if any, for 
     standardization or adjustment of such requirements.
       (4) Independent practice under other federal programs.--The 
     study required by subsection (b) shall provide for an 
     assessment of the extent to which licensed mental health 
     counselors are authorized to practice independently under 
     other Federal programs (such as the Medicare program, the 
     Department of Veterans Affairs, the Indian Health Service, 
     and Head Start), and a review of the relationship, if any, 
     between recognition of mental health professions under the 
     Medicare program and independent practice authority for such 
     profession under the TRICARE program.
       (5) Independent practice under fehbp.--The study required 
     by subsection (b) shall provide for an assessment of the 
     extent to which licensed mental health counselors are 
     authorized to practice independently under the Federal 
     Employee Health Benefits Program and private insurance plans. 
     The assessment shall identify the States having laws 
     requiring private insurers to cover, or offer coverage of, 
     the services of members of licensed mental health counselors 
     and shall identify the conditions, if any, that are placed on 
     coverage of practitioners under the profession by insurance 
     plans and how frequently these types of conditions are used 
     by insurers.
       (6) Historical review of regulations.--The study required 
     by subsection (b) shall provide for a review of the history 
     of regulations prescribed by the Department of Defense 
     regarding which members of the mental health profession are 
     recognized as providers under the TRICARE program as 
     independent practitioners, and an examination of the 
     recognition by the Department of third-party certification 
     for members of such profession.
       (7) Clinical capabilities studies.--The study required by 
     subsection (b) shall include a review of outcome studies and 
     of the literature regarding the comparative quality and 
     effectiveness of care provided by licensed mental health 
     counselors and provide an independent review of the findings.
       (d) Recommendations for TRICARE Independent Practice 
     Authority.--The recommendations provided under subsection 
     (b)(2)

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     shall include recommendations regarding modifications of 
     current policy for the TRICARE program with respect to 
     allowing licensed mental health counselors to practice 
     independently under the TRICARE program.
       (e) Report.--Not later than March 1, 2009, the Secretary of 
     Defense shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a report on the 
     review required by subsection (b).

     SEC. 718. REPORT ON FUNDING OF THE DEPARTMENT OF DEFENSE FOR 
                   HEALTH CARE.

       (a) Report.--If the President submits to Congress the 
     budget for a fiscal year under section 1105 of title 31, 
     United States Code, and the aggregate amount included in that 
     budget for the Department of Defense for health care for such 
     fiscal year is less than the aggregate amount provided by 
     Congress for the Department for health care for the preceding 
     fiscal year, and, in the case of the Department, the total 
     allocation from the Defense Health Program to any military 
     department is less than the total such allocation in the 
     preceding fiscal year, the President shall submit to Congress 
     a report on--
       (1) the reasons for the determination that inclusion of a 
     lesser aggregate amount or allocation to any military 
     department is in the national interest; and
       (2) the anticipated effects of the inclusion of such lesser 
     aggregate amount or allocation to any military department on 
     the access to and delivery of medical and support services to 
     members of the Armed Forces and their family members.
       (b) Termination.--The section shall not be in effect after 
     December 31, 2017.
                       Subtitle C--Other Matters

     SEC. 721. PROHIBITION ON CONVERSION OF MILITARY MEDICAL AND 
                   DENTAL POSITIONS TO CIVILIAN MEDICAL AND DENTAL 
                   POSITIONS.

       (a) Prohibition.--The Secretary of a military department 
     may not convert any military medical or dental position to a 
     civilian medical or dental position during the period 
     beginning on October 1, 2007, and ending on September 30, 
     2012.
       (b) Restoration of Certain Positions to Military 
     Positions.--In the case of any military medical or dental 
     position that is converted to a civilian medical or dental 
     position during the period beginning on October 1, 2004, and 
     ending on September 30, 2008, if the position is not filled 
     by a civilian by September 30, 2008, the Secretary of the 
     military department concerned shall restore the position to a 
     military medical or dental position that can be filled only 
     by a member of the Armed Forces who is a health professional.
       (c) Report.--
       (1) Requirement.--The Secretary of Defense shall submit to 
     the congressional defense committees a report on conversions 
     made during fiscal year 2007 not later than 180 days after 
     the enactment of this Act.
       (2) Matters covered.--The report shall include the 
     following:
       (A) The number of military medical or dental positions, by 
     grade or band and specialty, converted to civilian medical or 
     dental positions.
       (B) 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 there 
     were civilian medical and dental care providers available in 
     such area adequate to fill the civilian positions created by 
     the conversion of military medical and dental positions to 
     civilian positions in such area.
       (C) An analysis, by affected area, showing the extent to 
     which access to health care and cost of health care was 
     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 conversions.
       (D) The extent to which military medical and dental 
     positions converted to civilian medical or dental positions 
     affected recruiting and retention of uniformed medical and 
     dental personnel.
       (E) A comparison of the full costs for the military medical 
     and dental positions converted with the full costs for 
     civilian medical and dental positions, including expenses 
     such as recruiting, salary, benefits, training, and any other 
     costs the Department identifies.
       (F) An assessment showing that the military medical or 
     dental positions converted were 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.
       (d) 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 ``uniformed services'' has the meaning given 
     that term in section 1072(1) of title 10, United States Code.
       (4) The term ``conversion'', with respect to a military 
     medical or dental position, means a change of the position to 
     a civilian medical or dental position, effective as of the 
     date of the manning authorization document of the military 
     department making the change (through a change in designation 
     from military to civilian in the document, the elimination of 
     the listing of the position as a military position in the 
     document, or through any other means indicating the change in 
     the document or otherwise).
       (e) Repeal.--Section 742 of the John Warner National 
     Defense Authorization Act for Fiscal Year 2007 (Public Law 
     109-364; 120 Stat. 2306) is repealed.

     SEC. 722. ESTABLISHMENT OF JOINT PATHOLOGY CENTER.

       (a) Findings.--Congress makes the following findings:
       (1) The Secretary of Defense proposed to disestablish all 
     elements of the Armed Forces Institute of Pathology, except 
     the National Medical Museum and the Tissue Repository, as 
     part of the recommendations of the Secretary for the closure 
     of Walter Reed Army Medical Center in the 2005 round of 
     defense base closure and realignment.
       (2) The Defense Base Closure and Realignment Commission 
     altered, but did not reject, the proposal of the Secretary of 
     Defense to disestablish the Armed Forces Institute of 
     Pathology.
       (3) The Commission's recommendation that the Armed Forces 
     Institute of Pathology's ``capabilities not specified in this 
     recommendation will be absorbed into other DOD, Federal, or 
     civilian facilities'' provides the flexibility to retain a 
     Joint Pathology Center as a Department of Defense or Federal 
     entity.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Armed Forces Institute of Pathology has provided 
     important medical benefits to the Armed Forces and to the 
     United States and that the Federal Government should retain a 
     Joint Pathology Center.
       (c) Establishment.--
       (1) Establishment required.--The President shall establish 
     and maintain a Joint Pathology Center that shall function as 
     the reference center in pathology for the Federal Government.
       (2) Establishment within dod.--Except as provided in 
     paragraph (3), the Joint Pathology Center shall be 
     established in the Department of Defense, consistent with the 
     final recommendations of the 2005 Defense Base Closure and 
     Realignment Commission, as approved by the President.
       (3) Establishment in another department.--If the President 
     makes a determination, within 180 days after the date of the 
     enactment of this Act, that the Joint Pathology Center cannot 
     be established in the Department of Defense, the Joint 
     Pathology Center shall be established as an element of a 
     Federal agency other than the Department of Defense. The 
     President shall incorporate the selection of such agency into 
     the determination made under this paragraph.
       (d) Services.--The Joint Pathology Center shall provide, at 
     a minimum, the following:
       (1) Diagnostic pathology consultation services in medicine, 
     dentistry, and veterinary sciences.
       (2) Pathology education, to include graduate medical 
     education, including residency and fellowship programs, and 
     continuing medical education.
       (3) Diagnostic pathology research.
       (4) Maintenance and continued modernization of the Tissue 
     Repository and, as appropriate, utilization of the Repository 
     in conducting the activities described in paragraphs (1) 
     through (3).
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS
Sec. 800. Short title.

             Subtitle A--Acquisition Policy and Management

Sec. 801. Internal controls for procurements on behalf of the 
              Department of Defense by certain non-Defense agencies.
Sec. 802. Lead systems integrators.
Sec. 803.  Reinvestment in domestic sources of strategic materials.
Sec. 804. Clarification of the protection of strategic materials 
              critical to national security.
Sec. 805. Procurement of commercial services.
Sec. 806. Specification of amounts requested for procurement of 
              contract services.
Sec. 807. Inventories and reviews of contracts for services.
Sec. 808. Independent management reviews of contracts for services.
Sec. 809.  Implementation and enforcement of requirements applicable to 
              undefinitized contractual actions.
Sec. 810. Clarification of limited acquisition authority for Special 
              Operations Command.

 Subtitle B--Provisions Relating to Major Defense Acquisition Programs

Sec. 811. Requirements applicable to multiyear contracts for the 
              procurement of major systems of the Department of 
              Defense.
Sec. 812. Changes to Milestone B certifications.
Sec. 813. Comptroller General report on Department of Defense 
              organization and structure for major defense acquisition 
              programs.
Sec. 814.  Clarification of submission of cost or pricing data on 
              noncommercial modifications of commercial items.
Sec. 815. Clarification of rules regarding the procurement of 
              commercial items.
Sec. 816.  Review of systemic deficiencies on major defense acquisition 
              programs.
Sec. 817.  Investment strategy for major defense acquisition programs.
Sec. 818. Report on implementation of recommendations on total 
              ownership cost for major weapon systems.

[[Page 32574]]

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

Sec. 821. Plan for restricting Government-unique contract clauses on 
              commercial contracts.
Sec. 822. Extension of authority for use of simplified acquisition 
              procedures for certain commercial items.
Sec. 823. Five-year extension of authority to carry out certain 
              prototype projects.
Sec. 824. Exemption of Special Operations Command from certain 
              requirements for certain contracts relating to vessels, 
              aircraft, and combat vehicles.
Sec. 825. Provision of authority to maintain equipment to unified 
              combatant command for joint warfighting.
Sec. 826. Market research.
Sec. 827. Modification of competition requirements for purchases from 
              Federal Prison Industries.
Sec. 828. Multiyear contract authority for electricity from renewable 
              energy sources.
Sec. 829. Procurement of fire resistant rayon fiber for the production 
              of uniforms from foreign sources.
Sec. 830. Comptroller General review of noncompetitive awards of 
              congressional and executive branch interest items.

               Subtitle D--Accountability in Contracting

Sec. 841. Commission on Wartime Contracting in Iraq and Afghanistan.
Sec. 842. Investigation of waste, fraud, and abuse in wartime contracts 
              and contracting processes in Iraq and Afghanistan.
Sec. 843. Enhanced competition requirements for task and delivery order 
              contracts.
Sec. 844. Public disclosure of justification and approval documents for 
              noncompetitive contracts.
Sec. 845. Disclosure of government contractor audit findings.
Sec. 846. Protection for contractor employees from reprisal for 
              disclosure of certain information.
Sec. 847.  Requirements for senior Department of Defense officials 
              seeking employment with defense contractors.
Sec. 848. Report on contractor ethics programs of Major Defense 
              contractors.
Sec. 849. Contingency contracting training for personnel outside the 
              acquisition workforce and evaluations of Army Commission 
              recommendations.

              Subtitle E--Acquisition Workforce Provisions

Sec. 851. Requirement for section on defense acquisition workforce in 
              strategic human capital plan.
Sec. 852. Department of Defense Acquisition Workforce Development Fund.
Sec. 853. Extension of authority to fill shortage category positions 
              for certain Federal acquisition positions.
Sec. 854. Repeal of sunset of acquisition workforce training fund.
Sec. 855. Federal acquisition workforce improvements.

             Subtitle F--Contracts in Iraq and Afghanistan

Sec. 861. Memorandum of understanding on matters relating to 
              contracting.
Sec. 862. Contractors performing private security functions in areas of 
              combat operations.
Sec. 863. Comptroller General reviews and reports on contracting in 
              Iraq and Afghanistan.
Sec. 864. Definitions and other general provisions.

              Subtitle G--Defense Materiel Readiness Board

Sec. 871. Establishment of Defense Materiel Readiness Board.
Sec. 872. Critical materiel readiness shortfalls.

                       Subtitle H--Other Matters

Sec. 881. Clearinghouse for rapid identification and dissemination of 
              commercial information technologies.
Sec. 882. Authority to license certain military designations and 
              likenesses of weapons systems to toy and hobby 
              manufacturers.
Sec. 883. Modifications to limitation on contracts to acquire military 
              flight simulator.
Sec. 884. Requirements relating to waivers of certain domestic source 
              limitations relating to specialty metals.
Sec. 885. Telephone services for military personnel serving in combat 
              zones.
Sec. 886. Enhanced authority to acquire products and services produced 
              in Iraq and Afghanistan.
Sec. 887. Defense Science Board review of Department of Defense 
              policies and procedures for the acquisition of 
              information technology.
Sec. 888. Green procurement policy.
Sec. 889. Comptroller General review of use of authority under the 
              Defense Production Act of 1950.
Sec. 890. Prevention of export control violations.
Sec. 891. Procurement goal for Native Hawaiian-serving institutions and 
              Alaska Native-serving institutions.
Sec. 892. Competition for procurement of small arms supplied to Iraq 
              and Afghanistan.

     SEC. 800. SHORT TITLE.

       This title may be cited as the ``Acquisition Improvement 
     and Accountability Act of 2007''.
             Subtitle A--Acquisition Policy and Management

     SEC. 801. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF THE 
                   DEPARTMENT OF DEFENSE BY CERTAIN NON-DEFENSE 
                   AGENCIES.

       (a) Inspectors 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 covered non-defense agency shall, 
     not later than the date specified in paragraph (2), jointly--
       (A) review--
       (i) the procurement policies, procedures, and internal 
     controls of such covered non-defense agency that are 
     applicable to the procurement of property and services on 
     behalf of the Department by such covered non-defense agency; 
     and
       (ii) the administration of such policies, procedures, and 
     internal controls; and
       (B) determine in writing whether such covered non-defense 
     agency is or is not compliant with defense procurement 
     requirements.
       (2) Deadline for reviews and determinations.--The reviews 
     and determinations required by paragraph (1) shall take place 
     as follows:
       (A) In the case of the General Services Administration, by 
     not later than March 15, 2010.
       (B) In the case of each of the Department of the Treasury, 
     the Department of the Interior, and the National Aeronautics 
     and Space Administration, by not later than March 15, 2011.
       (C) In the case of each of the Department of Veterans 
     Affairs and the National Institutes of Health, by not later 
     than March 15, 2012.
       (3) Separate reviews and determinations.--The Inspector 
     General of the Department of Defense and the Inspector 
     General of a covered non-defense agency may by joint 
     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 government-wide acquisition contracts, of the 
     covered non-defense agency. If such separate reviews are 
     conducted, the Inspectors General shall make a separate 
     determination under paragraph (1)(B) with respect to each 
     such separate review.
       (4) Memoranda of understanding for reviews and 
     determinations.--Not later than one year before a review and 
     determination is required under this subsection with respect 
     to a covered non-defense agency, the Inspector General of the 
     Department of Defense and the Inspector General of the 
     covered non-defense agency shall enter into a memorandum of 
     understanding with each other to carry out such review and 
     determination.
       (5) Termination of non-compliance determination.--If the 
     Inspector General of the Department of Defense and the 
     Inspector General of a covered non-defense agency determine, 
     pursuant to paragraph (1)(B), that a covered non-defense 
     agency is not compliant with defense procurement 
     requirements, the Inspectors General shall terminate such a 
     determination effective on the date on which the Inspectors 
     General jointly--
       (A) determine that the non-defense agency is compliant with 
     defense procurement requirements; and
       (B) notify the Secretary of Defense of that determination.
       (6) 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 this subsection, a determination by the 
     Inspector General of the Department of Defense under this 
     subsection shall be conclusive for the purposes of this 
     section.
       (b) Limitation on Procurements on Behalf of Department of 
     Defense.--
       (1) Except as provided in paragraph (2), an acquisition 
     official of the Department of Defense may place an order, 
     make a purchase, or otherwise procure property or services 
     for the Department of Defense in excess of the simplified 
     acquisition threshold through a non-defense agency only if--
       (A) in the case of a procurement by any non-defense agency 
     in any fiscal year, the head of the non-defense agency has 
     certified that the non-defense agency will comply with 
     defense procurement requirements for the fiscal year;
       (B) in the case of--
       (i) a procurement by a covered non-defense agency in a 
     fiscal year for which a memorandum of understanding is 
     required by subsection (a)(4), the Inspector General of the 
     Department of Defense and the Inspector General of the 
     covered non-defense agency have entered into such a 
     memorandum of understanding; or
       (ii) a procurement by a covered non-defense agency in a 
     fiscal year following the Inspectors General review and 
     determination required by subsection (a), the Inspectors 
     General have determined that a covered non-defense agency is 
     compliant with defense procurement requirements or have 
     terminated a prior determination of non-compliance in 
     accordance with subsection (a)(5); and
       (C) the procurement is not otherwise prohibited by section 
     817 of the John Warner National Defense Authorization Act for 
     Fiscal Year 2007 (Public Law 109-364) or section 811 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163).
       (2) Exception for procurements of necessary property and 
     services.--

[[Page 32575]]

       (A) In general.--The limitation in paragraph (1) shall not 
     apply to the procurement of property and services on behalf 
     of the Department of Defense by a non-defense agency during 
     any fiscal year for which there is in effect a written 
     determination of the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics that it is necessary 
     in the interest of the Department of Defense to procure 
     property and services through the non-defense agency during 
     such fiscal year.
       (B) Scope of particular exception.--A written determination 
     with respect to a non-defense agency under subparagraph (A) 
     shall apply to any category of procurements through the non-
     defense agency that is specified in the determination.
       (c) Guidance on Interagency Contracting.--
       (1) Requirement.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Defense shall issue 
     guidance on the use of interagency contracting by the 
     Department of Defense.
       (2) Matters covered.--The guidance required by paragraph 
     (1) shall address the circumstances in which it is 
     appropriate for Department of Defense acquisition officials 
     to procure goods or services through a contract entered into 
     by an agency outside the Department of Defense. At a minimum, 
     the guidance shall address--
       (A) the circumstances in which it is appropriate for such 
     acquisition officials to use direct acquisitions;
       (B) the circumstances in which it is appropriate for such 
     acquisition officials to use assisted acquisitions;
       (C) the circumstances in which it is appropriate for such 
     acquisition officials to use interagency contracting to 
     acquire items unique to the Department of Defense and the 
     procedures for approving such interagency contracting;
       (D) the circumstances in which it is appropriate for such 
     acquisition officials to use interagency contracting to 
     acquire items that are already being provided under a 
     contract awarded by the Department of Defense;
       (E) tools that should be used by such acquisition officials 
     to determine whether items are already being provided under a 
     contract awarded by the Department of Defense; and
       (F) procedures for ensuring that defense procurement 
     requirements are identified and communicated to outside 
     agencies involved in interagency contracting.
       (d) Compliance With Defense Procurement Requirements.--For 
     the purposes of this section, a non-defense agency is 
     compliant with defense procurement requirements if the 
     procurement policies, procedures, and internal controls of 
     the non-defense agency 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 the compliance of the non-defense agency with the 
     requirements of laws and regulations (including applicable 
     Department of Defense financial management regulations) that 
     apply to procurements of property and services made directly 
     by the Department of Defense.
       (e) Treatment of Procurements for Fiscal Year Purposes.--
     For the purposes of this section, 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 the procurement in that fiscal year.
       (f) Definitions.--In this section:
       (1) Non-defense agency.--The term ``non-defense agency'' 
     means any department or agency of the Federal Government 
     other than the Department of Defense. Such term includes a 
     covered non-defense agency.
       (2) Covered non-defense agency.--The term ``covered non-
     defense agency'' means each of the following:
       (A) The General Services Administration.
       (B) The Department of the Treasury.
       (C) The Department of the Interior.
       (D) The National Aeronautics and Space Administration.
       (E) The Department of Veterans Affairs.
       (F) The National Institutes of Health.
       (3) Government-wide acquisition contract.--The term 
     ``government-wide acquisition contract'' means a task or 
     delivery order contract that--
       (A) is entered into by a 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.
       (4) Simplified acquisition threshold.--The term 
     ``simplified acquisition threshold'' has the meaning provided 
     by section 2302(7) of title 10, United States Code.
       (5) Interagency contracting.--The term ``interagency 
     contracting'' means the exercise of the authority under 
     section 1535 of title 31, United States Code, or other 
     statutory authority, for Federal agencies to purchase goods 
     and services under contracts entered into or administered by 
     other agencies.
       (6) Acquisition official.--The term ``acquisition 
     official'', with respect to the Department of Defense, 
     means--
       (A) a contracting officer of the Department of Defense; or
       (B) any other Department of Defense official authorized to 
     approve a direct acquisition or an assisted acquisition on 
     behalf of the Department of Defense.
       (7) Direct acquisition.--The term ``direct acquisition'', 
     with respect to the Department of Defense, means the type of 
     interagency contracting through which the Department of 
     Defense orders an item or service from a government-wide 
     acquisition contract maintained by a non-defense agency.
       (8) Assisted acquisition.--The term ``assisted 
     acquisition'', with respect to the Department of Defense, 
     means the type of interagency contracting through which 
     acquisition officials of a non-defense agency award a 
     contract or task or delivery order for the procurement of 
     goods or services on behalf of the Department of Defense.

     SEC. 802. LEAD SYSTEMS INTEGRATORS.

       (a) Prohibitions on the Use of Lead Systems Integrators.--
       (1) Prohibition on new lead systems integrators.--Effective 
     October 1, 2010, the Department of Defense may not award a 
     new contract for lead systems integrator functions in the 
     acquisition of a major system to any entity that was not 
     performing lead systems integrator functions in the 
     acquisition of the major system prior to the date of the 
     enactment of this Act.
       (2) Prohibition on lead systems integrators beyond low-rate 
     initial production.--Effective on the date of the enactment 
     of this Act, the Department of Defense may award a new 
     contract for lead systems integrator functions in the 
     acquisition of a major system only if--
       (A) the major system has not yet proceeded beyond low-rate 
     initial production; or
       (B) the Secretary of Defense determines in writing that it 
     would not be practicable to carry out the acquisition without 
     continuing to use a contractor to perform lead systems 
     integrator functions and that doing so is in the best 
     interest of the Department.
       (3) Requirements relating to determinations.--A 
     determination under paragraph (2)(B)--
       (A) shall specify the reasons why it would not be 
     practicable to carry out the acquisition without continuing 
     to use a contractor to perform lead systems integrator 
     functions (including a discussion of alternatives, such as 
     the use of the Department of Defense workforce, or a system 
     engineering and technical assistance contractor);
       (B) shall include a plan for phasing out the use of 
     contracted lead systems integrator functions over the 
     shortest period of time consistent with the interest of the 
     national defense;
       (C) may not be delegated below the level of the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics; and
       (D) shall be provided to the Committees on Armed Services 
     of the Senate and the House of Representatives at least 45 
     days before the award of a contract pursuant to the 
     determination.
       (b) Acquisition Workforce.--
       (1) Requirement.--The Secretary of Defense shall ensure 
     that the acquisition workforce is of the appropriate size and 
     skill level necessary--
       (A) to accomplish inherently governmental functions related 
     to acquisition of major systems; and
       (B) to effectuate the purpose of subsection (a) to minimize 
     and eventually eliminate the use of contractors to perform 
     lead systems integrator functions.
       (2) Report.--The Secretary shall include an update on the 
     progress made in complying with paragraph (1) in the annual 
     report required by section 820 of the John Warner National 
     Defense Authorization Act for Fiscal Year 2007 (Public Law 
     109-364; 120 Stat. 2330).
       (c) Exception for Contracts for Other Management 
     Services.--The Department of Defense may continue to award 
     contracts for the procurement of services the primary purpose 
     of which is to perform acquisition support functions with 
     respect to the development or production of a major system, 
     if the following conditions are met with respect to each such 
     contract:
       (1) The contract prohibits the contractor from performing 
     inherently governmental functions.
       (2) The Department of Defense organization responsible for 
     the development or production of the major system ensures 
     that Federal employees are responsible for--
       (A) determining courses of action to be taken in the best 
     interest of the government; and
       (B) determining best technical performance for the 
     warfighter.
       (3) The contract requires that the prime contractor for the 
     contract may not advise or recommend the award of a contract 
     or subcontract for the development or production of the major 
     system to an entity owned in whole or in part by the prime 
     contractor.
       (d) Definitions.--In this section:
       (1) Lead systems integrator.--The term ``lead systems 
     integrator'' means--
       (A) a prime contractor for the development or production of 
     a major system, if the prime contractor is not expected at 
     the time of award to perform a substantial portion of the 
     work on the system and the major subsystems; or
       (B) a prime contractor under a contract for the procurement 
     of services the primary purpose of which is to perform 
     acquisition functions closely associated with inherently 
     governmental functions with respect to the development or 
     production of a major system.
       (2) Major system.--The term ``major system'' has the 
     meaning given such term in section 2302d of title 10, United 
     States Code.
       (3) Low-rate initial production.--The term ``low-rate 
     initial production'' has the meaning given such term in 
     section 2400 of title 10, United States Code.

     SEC. 803. REINVESTMENT IN DOMESTIC SOURCES OF STRATEGIC 
                   MATERIALS.

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

[[Page 32576]]

     Act, the Strategic Materials Protection Board established 
     pursuant to section 187 of title 10, United States Code, 
     shall perform an assessment of the extent to which domestic 
     producers of strategic materials are investing and planning 
     to invest on a sustained basis in the processes, 
     infrastructure, workforce training, and facilities required 
     for the continued domestic production of such materials to 
     meet national defense requirements.
       (b) Cooperation of Domestic Producers.--The Department of 
     Defense may take into consideration the degree of cooperation 
     of any domestic producer of strategic materials with the 
     assessment conducted under subsection (a) when determining 
     how much weight to accord any comments provided by such 
     domestic producer regarding a proposed waiver of domestic 
     source limitations pursuant to section 2533b of title 10, 
     United States Code.
       (c) Report to Congressional Defense Committees.--The Board 
     shall include the findings and recommendations of the 
     assessment required by subsection (a) in the first report 
     submitted to Congress pursuant to section 187(d) of title 10, 
     United States Code, after the completion of such assessment.
       (d) Definition.--The term ``strategic material'' means--
       (1) a material designated as critical to national security 
     by the Strategic Materials Protection Board in accordance 
     with section 187 of title 10, United States Code; or
       (2) a specialty metal as defined by section 2533b of title 
     10, United States Code.

     SEC. 804. CLARIFICATION OF THE PROTECTION OF STRATEGIC 
                   MATERIALS CRITICAL TO NATIONAL SECURITY.

       (a) Prohibition.--Subsection (a) of section 2533b of title 
     10, United States Code, is amended--
       (1) by striking ``Except as provided in subsections (b) 
     through (j), funds appropriated or otherwise available to the 
     Department of Defense may not be used for the procurement 
     of--'' and inserting ``Except as provided in subsections (b) 
     through (m), the acquisition by the Department of Defense of 
     the following items is prohibited:'';
       (2) in paragraph (1)--
       (A) by striking ``the following'' and inserting ``The 
     following''; and
       (B) by striking ``; or'' and inserting a period; and
       (3) in paragraph (2), by striking ``a speciality'' and 
     inserting ``A specialty''.
       (b) Applicability to Acquisition of Commercial Items.--
     Subsection (h) of such section is amended to read as follows:
       ``(h) Applicability to Acquisitions of Commercial Items.--
     (1) Except as provided in paragraphs (2) and (3), this 
     section applies to acquisitions of commercial items, 
     notwithstanding sections 34 and 35 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 430 and 431).
       ``(2) This section does not apply to contracts or 
     subcontracts for the acquisition of commercially available 
     off-the-shelf items, as defined in section 35(c) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 431(c)), 
     other than--
       ``(A) contracts or subcontracts for the acquisition of 
     specialty metals, including mill products, such as bar, 
     billet, slab, wire, plate and sheet, that have not been 
     incorporated into end items, subsystems, assemblies, or 
     components;
       ``(B) contracts or subcontracts for the acquisition of 
     forgings or castings of specialty metals, unless such 
     forgings or castings are incorporated into commercially 
     available off-the-shelf end items, subsystems, or assemblies;
       ``(C) contracts or subcontracts for commercially available 
     high performance magnets unless such high performance magnets 
     are incorporated into commercially available off the shelf 
     end items or subsystems; and
       ``(D) contracts or subcontracts for commercially available 
     off-the-shelf fasteners, unless such fasteners are--
       ``(i) incorporated into commercially available off-the-
     shelf end items, subsystems, assemblies, or components; or
       ``(ii) purchased as provided in paragraph (3).
       ``(3) This section does not apply to fasteners that are 
     commercial items that are purchased under a contract or 
     subcontract with a manufacturer of such fasteners, if the 
     manufacturer has certified that it will purchase, during the 
     relevant calendar year, an amount of domestically melted 
     specialty metal, in the required form, for use in the 
     production of such fasteners for sale to the Department of 
     Defense and other customers, that is not less than 50 percent 
     of the total amount of the specialty metal that it will 
     purchase to carry out the production of such fasteners.''.
       (c) Electronic Components.--Subsection (g) of such section 
     is amended by striking ``commercially available'' and all 
     that follows through the end of the subsection and inserting 
     ``electronic components, unless the Secretary of Defense, 
     upon the recommendation of the Strategic Materials Protection 
     Board pursuant to section 187 of this title, determines that 
     the domestic availability of a particular electronic 
     component is critical to national security.''.
       (d) Additional Exceptions.--Section 2533b of title 10, 
     United States Code, as amended by subsections (a), (b), and 
     (c), is further amended--
       (1) by redesignating subsections (i) and (j) as subsections 
     (l) and (m), respectively; and
       (2) by inserting after subsection (h) the following new 
     subsections:
       ``(i) Exceptions for Purchases of Specialty Metals Below 
     Minimum Threshold.--(1) Notwithstanding subsection (a), the 
     Secretary of Defense or the Secretary of a military 
     department may accept delivery of an item containing 
     specialty metals that were not melted in the United States if 
     the total amount of noncompliant specialty metals in the item 
     does not exceed 2 percent of the total weight of specialty 
     metals in the item.
       ``(2) This subsection does not apply to high performance 
     magnets.
       ``(j) Streamlined Compliance for Commercial Derivative 
     Military Articles.--(1) Subsection (a) shall not apply to an 
     item acquired under a prime contract if the Secretary of 
     Defense or the Secretary of a military department determines 
     that--
       ``(A) the item is a commercial derivative military article; 
     and
       ``(B) the contractor certifies that the contractor and its 
     subcontractors have entered into a contractual agreement, or 
     agreements, to purchase an amount of domestically melted 
     specialty metal in the required form, for use during the 
     period of contract performance in the production of the 
     commercial derivative military article and the related 
     commercial article, that is not less than the greater of--
       ``(i) an amount equivalent to 120 percent of the amount of 
     specialty metal that is required to carry out the production 
     of the commercial derivative military article (including the 
     work performed under each subcontract); or
       ``(ii) an amount equivalent to 50 percent of the amount of 
     specialty metal that is purchased by the contractor and its 
     subcontractors for use during such period in the production 
     of the commercial derivative military article and the related 
     commercial article.
       ``(2) For the purposes of this subsection, the amount of 
     specialty metal that is required to carry out the production 
     of the commercial derivative military article includes 
     specialty metal contained in any item, including commercially 
     available off-the-shelf items, incorporated into such 
     commercial derivative military article.
       ``(k) National Security Waiver.--(1) Notwithstanding 
     subsection (a), the Secretary of Defense may accept the 
     delivery of an end item containing noncompliant materials if 
     the Secretary determines in writing that acceptance of such 
     end item is necessary to the national security interests of 
     the United States.
       ``(2) A written determination under paragraph (1)--
       ``(A) may not be delegated below the level of the Deputy 
     Secretary of Defense or the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics;
       ``(B) shall specify the quantity of end items to which the 
     waiver applies and the time period over which the waiver 
     applies; and
       ``(C) shall be provided to the congressional defense 
     committees prior to making such a determination (except that 
     in the case of an urgent national security requirement, such 
     certification may be provided to the defense committees up to 
     7 days after it is made).
       ``(3)(A) In any case in which the Secretary makes a 
     determination under paragraph (1), the Secretary shall 
     determine whether or not the noncompliance was knowing and 
     willful.
       ``(B) If the Secretary determines that the noncompliance 
     was not knowing or willful, the Secretary shall ensure that 
     the contractor or subcontractor responsible for the 
     noncompliance develops and implements an effective plan to 
     ensure future compliance.
       ``(C) If the Secretary determines that the noncompliance 
     was knowing or willful, the Secretary shall--
       ``(i) require the development and implementation of a plan 
     to ensure future compliance; and
       ``(ii) consider suspending or debarring the contractor or 
     subcontractor until such time as the contractor or 
     subcontractor has effectively addressed the issues that lead 
     to such noncompliance.''.
       (e) Additional Definitions.--Subsection (m) of section 
     2533b of title 10, United States Code, as redesignated by 
     subsection (c), is further amended by adding at the end the 
     following:
       ``(3) The term `acquisition' has the meaning provided in 
     section 4 of the Office of Federal Procurement Policy Act (41 
     U.S.C. 403).
       ``(4) The term `required form' shall not apply to end items 
     or to their components at any tier. The term `required form' 
     means in the form of mill product, such as bar, billet, wire, 
     slab, plate or sheet, and in the grade appropriate for the 
     production of--
       ``(A) a finished end item delivered to the Department of 
     Defense; or
       ``(B) a finished component assembled into an end item 
     delivered to the Department of Defense.
       ``(5) The term `commercially available off-the-shelf', has 
     the meaning provided in section 35(c) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 431(c)).
       ``(6) The term `assemblies' means items forming a portion 
     of a system or subsystem that can be provisioned and replaced 
     as an entity and which incorporates multiple, replaceable 
     parts.
       ``(7) The term `commercial derivative military article' 
     means an item procured by the Department of Defense that is 
     or will be produced using the same production facilities, a 
     common supply chain, and the same or similar production 
     processes that are used for the production of articles 
     predominantly used by the general public or by 
     nongovernmental entities for purposes other than governmental 
     purposes.
       ``(8) The term `subsystem' means a functional grouping of 
     items that combine to perform a major function within an end 
     item, such as electrical power, attitude control, and 
     propulsion.
       ``(9) The term `end item' means the final production 
     product when assembled or completed, and ready for issue, 
     delivery, or deployment.
       ``(10) The term `subcontract' includes a subcontract at any 
     tier.''.

[[Page 32577]]

       (f) Conforming Amendments.--Section 2533b of title 10, 
     United States Code, is further amended--
       (1) in subsection (c)--
       (A) in the heading, by striking ``Procurements'' and 
     inserting ``Acquisitions''; and
       (B) in paragraphs (1) and (2), by striking ``Procurements'' 
     and inserting ``Acquisitions'';
       (2) in subsection (d), by striking ``procurement'' each 
     place it appears and inserting ``acquisition''; and
       (3) in subsections (f) and (g), by striking 
     ``procurements'' each place it appears and inserting 
     ``acquisitions''.
       (g) Implementation.--Not later than 120 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     prescribe regulations on the implementation of this section 
     and the amendments made by this section, including specific 
     guidance on how thresholds established in subsections (h)(3), 
     (i) and (j) of section 2533b of title 10, United States Code, 
     as amended by this section, should be implemented.
       (h) Revision of Domestic Nonavailability Determinations and 
     Rules.--No later than 180 days after the date of the 
     enactment of this Act, any domestic nonavailability 
     determination under section 2533b of title 10, United States 
     Code, including a class deviation, or rules made by the 
     Department of Defense between December 6, 2006, and the date 
     of the enactment of this Act, shall be reviewed and amended, 
     as necessary, to comply with the amendments made by this 
     section. This requirement shall not apply to a domestic 
     nonavailability determination that applies to--
       (1) an individual contract that was entered into before the 
     date of the enactment of this Act; or
       (2) an individual Department of Defense program, except to 
     the extent that such domestic nonavailability determination 
     applies to contracts entered into after the date of the 
     enactment of this Act.
       (i) Transparency Requirement for Commercially Available 
     Off-the-Shelf Item Exception.--The Secretary of Defense shall 
     submit to the Committees on Armed Services of the Senate and 
     House of Representatives, not later than December 30, 2008, a 
     report on the use of authority provided under subsection (h) 
     of section 2533b of title 10, United States Code, as amended 
     by this section. Such report shall include, at a minimum, a 
     description of types of items being procured as commercially 
     available off-the-shelf items under such subsection and 
     incorporated into noncommercial items. The Secretary shall 
     submit an update of such report to such committees not later 
     than December 30, 2009.

     SEC. 805. PROCUREMENT OF COMMERCIAL SERVICES.

       (a) Regulations Required.--Not later than 180 days after 
     the date of the enactment of this Act , the Secretary of 
     Defense shall modify the regulations of the Department of 
     Defense for the procurement of commercial services for or on 
     behalf of the Department of Defense.
       (b) Applicability of Commercial Procedures.--
       (1) Services of a type sold in marketplace.--The 
     regulations modified pursuant to subsection (a) shall ensure 
     that services that are not offered and sold competitively in 
     substantial quantities in the commercial marketplace, but are 
     of a type offered and sold competitively in substantial 
     quantities in the commercial marketplace, may be treated as 
     commercial items for purposes of section 2306a of title 10, 
     United States Code (relating to truth in negotiations), only 
     if the contracting officer determines in writing that the 
     offeror has submitted sufficient information to evaluate, 
     through price analysis, the reasonableness of the price for 
     such services.
       (2) Information submitted.--To the extent necessary to make 
     a determination under paragraph (1), the contracting officer 
     may request the offeror to submit--
       (A) prices paid for the same or similar commercial items 
     under comparable terms and conditions by both government and 
     commercial customers; and
       (B) if the contracting officer determines that the 
     information described in subparagraph (A) is not sufficient 
     to determine the reasonableness of price, other relevant 
     information regarding the basis for price or cost, including 
     information on labor costs, material costs, and overhead 
     rates.
       (c) Time-and-Materials Contracts.--
       (1) Commercial item acquisitions.--The regulations modified 
     pursuant to subsection (a) shall ensure that procedures 
     applicable to time-and-materials contracts and labor-hour 
     contracts for commercial item acquisitions may be used only 
     for the following:
       (A) Services procured for support of a commercial item, as 
     described in section 4(12)(E) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403(12)(E)).
       (B) Emergency repair services.
       (C) Any other commercial services only to the extent that 
     the head of the agency concerned approves a determination in 
     writing by the contracting officer that--
       (i) the services to be acquired are commercial services as 
     defined in section 4(12)(F) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403(12)(F));
       (ii) if the services to be acquired are subject to 
     subsection (b), the offeror of the services has submitted 
     sufficient information in accordance with that subsection;
       (iii) such services are commonly sold to the general public 
     through use of time-and-materials or labor-hour contracts; 
     and
       (iv) the use of a time-and-materials or labor-hour contract 
     type is in the best interest of the Government.
       (2) Non-commercial item acquisitions.--Nothing in this 
     subsection shall be construed to preclude the use of 
     procedures applicable to time-and-materials contracts and 
     labor-hour contracts for non-commercial item acquisitions for 
     the acquisition of any category of services.

     SEC. 806. SPECIFICATION OF AMOUNTS REQUESTED FOR PROCUREMENT 
                   OF CONTRACT SERVICES.

       (a) Specification of Amounts Requested.--The budget 
     justification materials submitted to Congress in support of 
     the budget of the Department of Defense for any fiscal year 
     after fiscal year 2009 shall identify clearly and separately 
     the amounts requested in each budget account for the 
     procurement of contract services.
       (b) Information Provided.--For each budget account, the 
     materials submitted shall clearly identify--
       (1) the amount requested for each Department of Defense 
     component, installation, or activity; and
       (2) the amount requested for each type of service to be 
     provided.
       (c) Contract Services Defined.--In this section, the term 
     ``contract services''--
       (1) means services from contractors; but
       (2) excludes services relating to research and development 
     and services relating to military construction.

     SEC. 807. INVENTORIES AND REVIEWS OF CONTRACTS FOR SERVICES.

       (a) Inventory Requirement.--Section 2330a of title 10, 
     United States Code, is amended--
       (1) by redesignating subsection (d) as subsection (g);
       (2) by striking subsection (c) and inserting the following:
       ``(c) Inventory.--(1) Not later than the end of the third 
     quarter of each fiscal year, the Secretary of Defense shall 
     submit to Congress an annual inventory of the activities 
     performed during the preceding fiscal year pursuant to 
     contracts for services for or on behalf of the Department of 
     Defense. The entry for an activity on an inventory under this 
     subsection shall include, for the fiscal year covered by such 
     entry, the following:
       ``(A) The functions and missions performed by the 
     contractor.
       ``(B) The contracting organization, the component of the 
     Department of Defense administering the contract, and the 
     organization whose requirements are being met through 
     contractor performance of the function.
       ``(C) The funding source for the contract under which the 
     function is performed by appropriation and operating agency.
       ``(D) The fiscal year for which the activity first appeared 
     on an inventory under this section.
       ``(E) The number of full-time contractor employees (or its 
     equivalent) paid for the performance of the activity.
       ``(F) A determination whether the contract pursuant to 
     which the activity is performed is a personal services 
     contract.
       ``(G) A summary of the data required to be collected for 
     the activity under subsection (a).
       ``(2) The inventory required under this subsection shall be 
     submitted in unclassified form, but may include a classified 
     annex.
       ``(d) Public Availability of Inventories.--Not later than 
     30 days after the date on which an inventory under subsection 
     (c) is required to be submitted to Congress, the Secretary 
     shall--
       ``(1) make the inventory available to the public; and
       ``(2) publish in the Federal Register a notice that the 
     inventory is available to the public.
       ``(e) Review and Planning Requirements.--Within 90 days 
     after the date on which an inventory is submitted under 
     subsection (c), the Secretary of the military department or 
     head of the Defense Agency responsible for activities in the 
     inventory shall--
       ``(1) review the contracts and activities in the inventory 
     for which such Secretary or agency head is responsible;
       ``(2) ensure that--
       ``(A) each contract on the list that is a personal services 
     contract has been entered into, and is being performed, in 
     accordance with applicable statutory and regulatory 
     requirements;
       ``(B) the activities on the list do not include any 
     inherently governmental functions; and
       ``(C) to the maximum extent practicable, the activities on 
     the list do not include any functions closely associated with 
     inherently governmental functions;
       ``(3) identify activities that should be considered for 
     conversion--
       ``(A) to performance by civilian employees of the 
     Department of Defense pursuant to section 2463 of this title; 
     or
       ``(B) to an acquisition approach that would be more 
     advantageous to the Department of Defense; and
       ``(4) develop a plan to provide for appropriate 
     consideration of the conversion of activities identified 
     under paragraph (3) within a reasonable period of time.
       ``(f) Rule of Construction.--Nothing in this section shall 
     be construed to authorize the performance of personal 
     services by a contractor except where expressly authorized by 
     a provision of law other than this section.''; and
       (3) by adding at the end of subsection (g) (as so 
     redesignated) the following new paragraphs:
       ``(3) Function closely associated with inherently 
     governmental functions.--The term `function closely 
     associated with inherently governmental functions' has the 
     meaning given that term in section 2383(b)(3) of this title.
       ``(4) Inherently governmental functions.--The term 
     `inherently governmental functions'

[[Page 32578]]

     has the meaning given that term in section 2383(b)(2) of this 
     title.
       ``(5) Personal services contract.--The term `personal 
     services contract' means a contract under which, as a result 
     of its terms or conditions or the manner of its 
     administration during performance, contractor personnel are 
     subject to the relatively continuous supervision and control 
     of one or more Government officers or employees, except that 
     the giving of an order for a specific article or service, 
     with the right to reject the finished product or result, is 
     not the type of supervision or control that makes a contract 
     a personal services contract.''.
       (b) Effective Date.--
       (1) The amendments made by subsection (a) shall be 
     effective upon the date of the enactment of this Act.
       (2) The first inventory required by section 2330a(c) of 
     title 10, United States Code, as added by subsection (a), 
     shall be submitted not later than the end of the third 
     quarter of fiscal year 2008.

     SEC. 808. INDEPENDENT MANAGEMENT REVIEWS OF CONTRACTS FOR 
                   SERVICES.

       (a) Guidance and Instructions.--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, for the Department of Defense to provide for 
     periodic independent management reviews of contracts for 
     services. The independent management review guidance and 
     instructions issued pursuant to this subsection shall be 
     designed to evaluate, at a minimum--
       (1) contract performance in terms of cost, schedule, and 
     requirements;
       (2) the use of contracting mechanisms, including the use of 
     competition, the contract structure and type, the definition 
     of contract requirements, cost or pricing methods, the award 
     and negotiation of task orders, and management and oversight 
     mechanisms;
       (3) the contractor's use, management, and oversight of 
     subcontractors;
       (4) the staffing of contract management and oversight 
     functions; and
       (5) the extent of any pass-throughs, and excessive pass-
     through charges (as defined in section 852 of the John Warner 
     National Defense Authorization Act for Fiscal Year 2007), by 
     the contractor.
       (b) Additional Subject of Review.--In addition to the 
     matters required by subsection (a), the guidance and 
     instructions issued pursuant to subsection (a) shall provide 
     for procedures for the periodic review of contracts under 
     which one contractor provides oversight for services 
     performed by other contractors. In particular, the procedures 
     shall be designed to evaluate, at a minimum--
       (1) the extent of the agency's reliance on the contractor 
     to perform acquisition functions closely associated with 
     inherently governmental functions as defined in section 
     2383(b)(3) of title 10, United States Code; and
       (2) the financial interest of any prime contractor 
     performing acquisition functions described in paragraph (1) 
     in any contract or subcontract with regard to which the 
     contractor provided advice or recommendations to the agency.
       (c) Elements.--The guidance and instructions issued 
     pursuant to subsection (a) shall address, at a minimum--
       (1) the contracts subject to independent management 
     reviews, including any applicable thresholds and exceptions;
       (2) the frequency with which independent management reviews 
     shall be conducted;
       (3) the composition of teams designated to perform 
     independent management reviews;
       (4) any phase-in requirements needed to ensure that 
     qualified staff are available to perform independent 
     management reviews;
       (5) procedures for tracking the implementation of 
     recommendations made by independent management review teams; 
     and
       (6) procedures for developing and disseminating lessons 
     learned from independent management reviews.
       (c) Reports.--
       (1) Report on guidance and instruction.--Not later than 270 
     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 the guidance and 
     instructions issued pursuant to subsection (a).
       (2) GAO report on implementation.--Not later than two years 
     after the date of the enactment of this Act, the Comptroller 
     General of the United States shall submit to the 
     congressional defense committees a report on the 
     implementation of the guidance and instructions issued 
     pursuant to subsection (a).

     SEC. 809. IMPLEMENTATION AND ENFORCEMENT OF REQUIREMENTS 
                   APPLICABLE TO UNDEFINITIZED CONTRACTUAL 
                   ACTIONS.

       (a) Guidance and Instructions.--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, for the Department of Defense to ensure the 
     implementation and enforcement of requirements applicable to 
     undefinitized contractual actions.
       (b) Elements.--The guidance and instructions issued 
     pursuant to subsection (a) shall address, at a minimum--
       (1) the circumstances in which it is, and is not, 
     appropriate for Department of Defense officials to use 
     undefinitized contractual actions;
       (2) approval requirements (including thresholds) for the 
     use of undefinitized contractual actions;
       (3) procedures for ensuring that timelines for the 
     definitization of undefinitized contractual actions are met;
       (4) procedures for ensuring compliance with regulatory 
     limitations on the obligation of funds pursuant to 
     undefinitized contractual actions;
       (5) procedures for ensuring compliance with regulatory 
     limitations on profit or fee with respect to costs incurred 
     before the definitization of an undefinitized contractual 
     action; and
       (6) reporting requirements for undefinitized contractual 
     actions that fail to meet required timelines for 
     definitization or fail to comply with regulatory limitations 
     on the obligation of funds or on profit or fee.
       (c) Reports.--
       (1) Report on guidance and instructions.--Not later than 
     210 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 the guidance and 
     instructions issued pursuant to subsection (a).
       (2) GAO report.--Not later than two years after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall submit to the congressional defense 
     committees a report on the extent to which the guidance and 
     instructions issued pursuant to subsection (a) have resulted 
     in improvements to--
       (A) the level of insight that senior Department of Defense 
     officials have into the use of undefinitized contractual 
     actions;
       (B) the appropriate use of undefinitized contractual 
     actions;
       (C) the timely definitization of undefinitized contractual 
     actions; and
       (D) the negotiation of appropriate profits and fees for 
     undefinitized contractual actions.

     SEC. 810. CLARIFICATION OF LIMITED ACQUISITION AUTHORITY FOR 
                   SPECIAL OPERATIONS COMMAND.

       Section 167(e)(4) of title 10, United States Code, is 
     amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C)(i) The staff of the commander shall include a command 
     acquisition executive, who shall be responsible for the 
     overall supervision of acquisition matters for the special 
     operations command. The command acquisition executive shall 
     have the authority to--
       ``(I) negotiate memoranda of agreement with the military 
     departments to carry out the acquisition of equipment, 
     material, supplies, and services described in subparagraph 
     (A) on behalf of the command;
       ``(II) supervise the acquisition of equipment, material, 
     supplies, and services described in subparagraph (A), 
     regardless of whether such acquisition is carried out by the 
     command, or by a military department pursuant to a delegation 
     of authority by the command;
       ``(III) represent the command in discussions with the 
     military departments regarding acquisition programs for which 
     the command is a customer; and
       ``(IV) work with the military departments to ensure that 
     the command is appropriately represented in any joint working 
     group or integrated product team regarding acquisition 
     programs for which the command is a customer.
       ``(ii) The command acquisition executive of the special 
     operations command shall be included on the distribution list 
     for acquisition directives and instructions of the Department 
     of Defense.''.
 Subtitle B--Provisions Relating to Major Defense Acquisition Programs

     SEC. 811. REQUIREMENTS APPLICABLE TO MULTIYEAR CONTRACTS FOR 
                   THE PROCUREMENT OF MAJOR SYSTEMS OF THE 
                   DEPARTMENT OF DEFENSE.

       (a) Additional Requirements Applicable to Multiyear 
     Contracts.--Section 2306b of title 10, United States Code, is 
     amended as follows:
       (1) Subsection (a) of such section is amended by adding at 
     the end the following new paragraph:
       ``(7) In the case of a contract in an amount equal to or 
     greater than $500,000,000, that the conditions required by 
     subparagraphs (C) through (F) of paragraph (1) of subsection 
     (i) will be met, in accordance with the Secretary's 
     certification and determination under such subsection, by 
     such contract.''.
       (2) Subsection (i)(1) of such section is amended by 
     inserting after ``unless'' the following: ``the Secretary of 
     Defense certifies in writing by no later than March 1 of the 
     year in which the Secretary requests legislative authority to 
     enter into such contract that''.
       (3) Subsection (i)(1) of such section is further amended--
       (A) by redesignating subparagraph (B) as subparagraph (G); 
     and
       (B) by striking subparagraph (A) and inserting the 
     following:
       ``(A) The Secretary has determined that each of the 
     requirements in paragraphs (1) through (6) of subsection (a) 
     will be met by such contract and has provided the basis for 
     such determination to the congressional defense committees.
       ``(B) The Secretary's determination under subparagraph (A) 
     was made after the completion of a cost analysis performed by 
     the Cost Analysis Improvement Group of the Department of 
     Defense and such analysis supports the findings.
       ``(C) The system being acquired pursuant to such contract 
     has not been determined to have experienced cost growth in 
     excess of the critical cost growth threshold pursuant to 
     section 2433(d) of this title within 5 years prior to the 
     date the Secretary anticipates such contract (or a contract 
     for advance procurement entered into consistent with the 
     authorization for such contract) will be awarded.

[[Page 32579]]

       ``(D) A sufficient number of end items of the system being 
     acquired under such contract have been delivered at or within 
     the most current estimates of the program acquisition unit 
     cost or procurement unit cost for such system to determine 
     that current estimates of such unit costs are realistic.
       ``(E) During the fiscal year in which such contract is to 
     be awarded, sufficient funds will be available to perform the 
     contract in such fiscal year, and the future-years defense 
     program for such fiscal year will include the funding 
     required to execute the program without cancellation.
       ``(F) The contract is a fixed price type contract.''.
       (4) Subsection (i) of such section is further amended by 
     adding at the end the following new paragraphs:
       ``(5) The Secretary may make the certification under 
     paragraph (1) notwithstanding the fact that one or more of 
     the conditions of such certification are not met if the 
     Secretary determines that, due to exceptional circumstances, 
     proceeding with a multiyear contract under this section is in 
     the best interest of the Department of Defense and the 
     Secretary provides the basis for such determination with the 
     certification.
       ``(6) The Secretary of Defense may not delegate the 
     authority to make the certification under paragraph (1) or 
     the determination under paragraph (5) to an official below 
     the level of Under Secretary of Defense for Acquisition, 
     Technology, and Logistics.
       ``(7) The Secretary of Defense shall send a notification 
     containing the findings of the agency head under subsection 
     (a), and the basis for such findings, 30 days prior to the 
     award of a multiyear contract for a defense acquisition 
     program that has been specifically authorized by law.''.
       (5) Such section is further amended by adding at the end 
     the following new subsection:
       ``(m) Increased Funding and Reprogramming Requests.--Any 
     request for increased funding for the procurement of a major 
     system under a multiyear contract authorized under this 
     section shall be accompanied by an explanation of how the 
     request for increased funding affects the determinations made 
     by the Secretary under subsection (i).''.
       (b) Applicability.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act 
     and shall apply with respect to multiyear contracts for the 
     purchase of major systems for which legislative authority is 
     requested on or after that date.

     SEC. 812. CHANGES TO MILESTONE B CERTIFICATIONS.

       Section 2366a of title 10, United States Code, is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) Certification.--A major defense acquisition program 
     may not receive Milestone B approval, or Key Decision Point B 
     approval in the case of a space program, until the milestone 
     decision authority--
       ``(1) has received a business case analysis and certifies 
     on the basis of the analysis that--
       ``(A) the program is affordable when considering the 
     ability of the Department of Defense to accomplish the 
     program's mission using alternative systems;
       ``(B) the program is affordable when considering the per 
     unit cost and the total acquisition cost in the context of 
     the total resources available during the period covered by 
     the future-years defense program submitted during the fiscal 
     year in which the certification is made;
       ``(C) reasonable cost and schedule estimates have been 
     developed to execute the product development and production 
     plan under the program; and
       ``(D) 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 
     subparagraph (C) for the program; and
       ``(2) further certifies that--
       ``(A) appropriate market research has been conducted prior 
     to technology development to reduce duplication of existing 
     technology and products;
       ``(B) the Department of Defense has completed an analysis 
     of alternatives with respect to the program;
       ``(C) the Joint Requirements Oversight Council has 
     accomplished its duties with respect to the program pursuant 
     to section 181(b) of this title, including an analysis of the 
     operational requirements for the program;
       ``(D) the technology in the program has been demonstrated 
     in a relevant environment;
       ``(E) the program demonstrates a high likelihood of 
     accomplishing its intended mission; and
       ``(F) the program complies with all relevant policies, 
     regulations, and directives of the Department of Defense.'';
       (2) by redesignating subsections (b), (c), (d), and (e) as 
     subsections (c), (d), (e), and (f), respectively;
       (3) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Changes to Certification.--(1) The program manager 
     for a major defense acquisition program that has received 
     certification under subsection (a) shall immediately notify 
     the milestone decision authority of any changes to the 
     program that--
       ``(A) alter the substantive basis for the certification of 
     the milestone decision authority relating to any component of 
     such certification specified in paragraph (1) or (2) of 
     subsection (a); or
       ``(B) otherwise cause the program to deviate significantly 
     from the material provided to the milestone decision 
     authority in support of such certification.
       ``(2) Upon receipt of information under paragraph (1), the 
     milestone decision authority may withdraw the certification 
     concerned or rescind Milestone B approval (or Key Decision 
     Point B approval in the case of a space program) if the 
     milestone decision authority determines that such 
     certification or approval is no longer valid.'';
       (4) in subsection (c), as redesignated by paragraph (1)--
       (A) by inserting ``(1)'' before ``The certification''; and
       (B) by adding at the end the following new paragraph (2):
       ``(2) A summary of any information provided to the 
     milestone decision authority pursuant to subsection (b) and a 
     description of the actions taken as a result of such 
     information shall be submitted with the first Selected 
     Acquisition Report submitted under section 2432 of this title 
     after receipt of such information by the milestone decision 
     authority.'';
       (5) in subsection (d), as so redesignated--
       (A) by striking ``authority may waive'' and inserting the 
     following: ``authority may, at the time of Milestone B 
     approval (or Key Decision Point B approval in the case of a 
     space program) or at the time that such milestone decision 
     authority withdraws a certification or rescinds Milestone B 
     approval (or Key Decision Point B approval in the case of a 
     space program) pursuant to subsection (b)(2), waive''; and
       (B) by striking ``paragraph (1), (2), (3), (4), (5), (6), 
     (7), (8), or (9)'' and inserting ``paragraph (1) or (2)''; 
     and
       (6) in subsection (e), as so redesignated, by striking 
     ``subsection (c)'' and inserting ``subsection (d)''.

     SEC. 813. COMPTROLLER GENERAL REPORT ON DEPARTMENT OF DEFENSE 
                   ORGANIZATION AND STRUCTURE FOR MAJOR DEFENSE 
                   ACQUISITION PROGRAMS.

       (a) Report Required.--Not later than one year after the 
     date of the enactment of this Act, the Comptroller General of 
     the United States shall submit to the congressional defense 
     committees a report on potential modifications of the 
     organization and structure of the Department of Defense for 
     major defense acquisition programs.
       (b) Elements.--The report required by subsection (a) shall 
     include the results of a review, conducted by the Comptroller 
     General for purposes of the report, regarding the feasibility 
     and advisability of, at a minimum, the following:
       (1) Revising the acquisition process for major defense 
     acquisition programs by establishing shorter, more frequent 
     acquisition program milestones.
       (2) Requiring certifications of program status to the 
     defense acquisition executive and Congress prior to milestone 
     approval for major defense acquisition programs.
       (3) Establishing a new office (to be known as the ``Office 
     of Independent Assessment'') to provide independent cost 
     estimates and performance estimates for major defense 
     acquisition programs.
       (4) Requiring the milestone decision authority for a major 
     defense acquisition program to specify, at the time of 
     Milestone B approval, or Key Decision Point B approval, as 
     applicable, the period of time that will be required to 
     deliver an initial operational capability to the relevant 
     combatant commanders.
       (5) Establishing a materiel solutions process for 
     addressing identified gaps in critical warfighting 
     capabilities, under which process the Under Secretary of 
     Defense for Acquisition, Technology, and Logistics circulates 
     among the military departments and appropriate Defense 
     Agencies a request for proposals for technologies and systems 
     to address such gaps.
       (6) Modifying the role played by chiefs of staff of the 
     Armed Forces in the requirements, resource allocation, and 
     acquisition processes.
       (7) Establishing a process in which the commanders of 
     combatant commands assess, and provide input on, the 
     capabilities needed to successfully accomplish the missions 
     in the operational and contingency plans of their commands 
     over a long-term planning horizon of 15 years or more, taking 
     into account expected changes in threats, the geo-political 
     environment, and doctrine, training, and operational 
     concepts.
       (c) Consultation.--In conducting the review required under 
     subsection (b) for the report required by subsection (a), the 
     Comptroller General shall obtain the views of the following:
       (1) Senior acquisition officials currently serving in the 
     Department of Defense.
       (2) Senior military officers involved in setting 
     requirements for the joint staff, the Armed Forces, and the 
     combatant commands currently serving in the Department of 
     Defense.
       (3) Individuals who formerly served as senior acquisition 
     officials in the Department of Defense.
       (4) Participants in previous reviews of the organization 
     and structure of the Department of Defense for the 
     acquisition of major weapon systems, including the 
     President's Blue Ribbon Commission on Defense Management in 
     1986.
       (5) Other experts on the acquisition of major weapon 
     systems.
       (6) Appropriate experts in the Government Accountability 
     Office.

     SEC. 814. CLARIFICATION OF SUBMISSION OF COST OR PRICING DATA 
                   ON NONCOMMERCIAL MODIFICATIONS OF COMMERCIAL 
                   ITEMS.

       (a) Measurement of Percentage at Contract Award.--Section 
     2306a(b)(3)(A) of title

[[Page 32580]]

     10, United States Code, is amended by inserting after ``total 
     price of the contract'' the following: ``(at the time of 
     contract award)''.
       (b) Harmonization of Thresholds for Cost or Pricing Data.--
     Section 2306a(b)(3)(A) of title 10, United States Code, is 
     amended by striking ``$500,000'' and inserting ``the amount 
     specified in subsection (a)(1)(A)(i), as adjusted from time 
     to time under subsection (a)(7),''.

     SEC. 815. CLARIFICATION OF RULES REGARDING THE PROCUREMENT OF 
                   COMMERCIAL ITEMS.

       (a) Treatment of Subsystems, Components, and Spare Parts as 
     Commercial Items.--
       (1) In general.--Section 2379 of title 10, United States 
     Code, is amended--
       (A) in subsection (a)--
       (i) by redesignating paragraph (2) as paragraph (3);
       (ii) in paragraph (1)(B), by striking ``and'' at the end; 
     and
       (iii) by inserting after paragraph (1), the following:
       ``(2) the offeror has submitted sufficient information to 
     evaluate, through price analysis, the reasonableness of the 
     price for such system; and'';
       (B) by striking subsection (b) and inserting the following 
     new subsection (b):
       ``(b) Treatment of Subsystems as Commercial Items.--A 
     subsystem of a major weapon system (other than a commercially 
     available off-the-shelf item as defined in section 35(c) of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 
     431(c))) shall be treated as a commercial item and purchased 
     under procedures established for the procurement of 
     commercial items only if--
       ``(1) the subsystem is intended for a major weapon system 
     that is being purchased, or has been purchased, under 
     procedures established for the procurement of commercial 
     items in accordance with the requirements of subsection (a); 
     or
       ``(2) the contracting officer determines in writing that--
       ``(A) the subsystem is 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) the offeror has submitted sufficient information to 
     evaluate, through price analysis, the reasonableness of the 
     price for such subsystem.'';
       (C) by redesignating subsections (c) and (d) as subsections 
     (e) and (f), respectively; and
       (D) by inserting after subsection (b) the following new 
     subsections (c) and (d):
       ``(c) Treatment of Components and Spare Parts as Commercial 
     Items.--(1) A component or spare part for a major weapon 
     system (other than a commercially available off-the-shelf 
     item as defined in section 35(c) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 431(c))) may be treated as 
     a commercial item for the purposes of section 2306a of this 
     title only if--
       ``(A) the component or spare part is intended for--
       ``(i) a major weapon system that is being purchased, or has 
     been purchased, under procedures established for the 
     procurement of commercial items in accordance with the 
     requirements of subsection (a); or
       ``(ii) a subsystem of a major weapon system that is being 
     purchased, or has been purchased, under procedures 
     established for the procurement of commercial items in 
     accordance with the requirements of subsection (b); or
       ``(B) the contracting officer determines in writing that--
       ``(i) the component or spare part is a commercial item, as 
     defined in section 4(12) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 403(12)); and
       ``(ii) the offeror has submitted sufficient information to 
     evaluate, through price analysis, the reasonableness of the 
     price for such component or spare part.
       ``(2) This subsection shall apply only to components and 
     spare parts that are acquired by the Department of Defense 
     through a prime contract or a modification to a prime 
     contract (or through a subcontract under a prime contract or 
     modification to a prime contract on which the prime 
     contractor adds no, or negligible, value).
       ``(d) Information Submitted.--To the extent necessary to 
     make a determination under subsection (a)(2), (b)(2), or 
     (c)(1)(B), the contracting officer may request the offeror to 
     submit--
       ``(1) prices paid for the same or similar commercial items 
     under comparable terms and conditions by both government and 
     commercial customers; and
       ``(2) if the contracting officer determines that the 
     information described in paragraph (1) is not sufficient to 
     determine the reasonableness of price, other relevant 
     information regarding the basis for price or cost, including 
     information on labor costs, material costs, and overhead 
     rates.''.
       (2) Conforming amendment to technical data provision.--
     Section 2321(f)(2) of such title is amended by striking 
     ``(whether or not under a contract for commercial items)'' 
     and inserting ``(other than technical data for a commercially 
     available off-the-shelf item as defined in section 35(c) of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 
     431(c)))''.
       (b) Sales of Commercial Items to Nongovernmental 
     Entities.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of Defense shall modify 
     the regulations of the Department of Defense on the 
     procurement of commercial items in order to clarify that the 
     terms ``general public'' and ``nongovernmental entities'' in 
     such regulations do not include the Federal Government or a 
     State, local, or foreign government.

     SEC. 816. REVIEW OF SYSTEMIC DEFICIENCIES ON MAJOR DEFENSE 
                   ACQUISITION PROGRAMS.

       (a) Annual Review.--The Under Secretary of Defense for 
     Acquisition, Technology, and Logistics shall conduct an 
     annual review of systemic deficiencies in the major defense 
     acquisition programs of the Department of Defense for each 
     fiscal year in which three or more major defense acquisition 
     programs--
       (1) experience a critical cost growth threshold breach;
       (2) have a section 2366a certification withdrawn; or
       (3) have a Milestone A approval or Key Decision Point A 
     approval rescinded, by the milestone decision authority under 
     subsection (b) of section 2366b of title 10, United States 
     Code, as added by section 943 of this Act.
       (b) Content of Review.--The review conducted under 
     subsection (a) shall--
       (1) identify common factors, including any systemic 
     deficiencies in the budget, requirements, and acquisition 
     policies and practices, that may have contributed to problems 
     with major defense acquisition programs covered by the 
     criteria in subsection (a);
       (2) assess the adequacy of corrective actions taken or to 
     be taken to address cost growth or other performance 
     deficiencies in programs covered by the criteria in 
     subsection (a); and
       (3) make recommendations for any changes in budget, 
     requirements, and acquisition policies and practices that may 
     be appropriate to avoid similar problems with major defense 
     acquisition programs in the future.
       (c) Definitions.--In this section:
       (1) Critical cost growth threshold breach.--The term 
     ``critical cost growth threshold breach'' means a 
     determination under section 2433(d) of title 10, United 
     States Code, by the Secretary of a military department with 
     respect to a major defense acquisition program that the 
     program acquisition unit cost has increased by a percentage 
     equal to or greater than the critical cost growth threshold 
     or that the procurement unit cost has increased by a 
     percentage equal to or greater than the critical cost growth 
     threshold.
       (2) Section 2366a certification.--The term ``section 2366a 
     certification'' means a certification with respect to a major 
     defense acquisition program under section 2366a(a) of title 
     10, United States Code, by the milestone decision authority.
       (d) Report.--Not later than July 15, 2008, and not later 
     than August 15 of each year from 2009 through 2012, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the results of the annual 
     review conducted (if any) for the preceding fiscal year under 
     subsection (a).
       (e) Sunset.--The requirement to conduct an annual review 
     under subsection (a) shall terminate on September 30, 2012.

     SEC. 817. INVESTMENT STRATEGY FOR MAJOR DEFENSE ACQUISITION 
                   PROGRAMS.

       (a) Report Required.--Not later than May 1, 2008, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the strategies of the 
     Department of Defense for balancing the allocation of funds 
     and other resources among major defense acquisition programs.
       (b) Elements.--The report required by subsection (a) shall 
     address, at a minimum, the ability of the organizations, 
     policies, and procedures of the Department of Defense to 
     provide for--
       (1) establishing priorities among needed capabilities under 
     major defense acquisition programs, and assessing the 
     resources (including funds, technologies, time, and 
     personnel) needed to achieve such capabilities;
       (2) balancing the cost, schedule, and requirements of major 
     defense acquisition programs, including those within the same 
     functional or mission area, to ensure the most efficient use 
     of resources; and
       (3) ensuring that the budget, requirements, and acquisition 
     processes of the Department of Defense work in a 
     complementary manner to achieve desired results.
       (c) Role of Tri-Chair Committee in Resource Allocation.--
       (1) In general.--The report required by subsection (a) 
     shall also address the role of the committee described in 
     paragraph (2) in the resource allocation process for major 
     defense acquisition programs.
       (2) Committee.--The committee described in this paragraph 
     is a committee (to be known as the ``Tri-Chair Committee'') 
     composed of the following:
       (A) The Under Secretary of Defense for Acquisition, 
     Technology, and Logistics, who is one of the chairs of the 
     committee.
       (B) The Vice Chairman of the Joint Chiefs of Staff, who is 
     one of the chairs of the committee.
       (C) The Director of Program Analysis and Evaluation, who is 
     one of the chairs of the committee.
       (D) Any other appropriate officials of the Department of 
     Defense, as jointly agreed upon by the Under Secretary and 
     the Vice Chairman.
       (d) Changes in Law.--The report required by subsection (a) 
     shall, to the maximum extent practicable, include a 
     discussion of any changes in the budget, acquisition, and 
     requirements processes of the Department of Defense 
     undertaken as a result of changes in law pursuant to any 
     section in this Act.
       (e) Recommendations.--The report required by subsection (a) 
     shall include any recommendations, including recommendations 
     for

[[Page 32581]]

     legislative action, that the Secretary considers appropriate 
     to improve the organizations, policies, and procedures 
     described in the report.

     SEC. 818. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS ON 
                   TOTAL OWNERSHIP COST FOR MAJOR WEAPON SYSTEMS.

       (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 the extent of the implementation of the recommendations 
     set forth in the February 2003 report of the Government 
     Accountability Office entitled ``Setting Requirements 
     Differently Could Reduce Weapon Systems' Total Ownership 
     Costs''.
       (b) Elements.--The report required by subsection (a) shall 
     include the following:
       (1) For each recommendation described in subsection (a) 
     that has been implemented, or that the Secretary plans to 
     implement--
       (A) a summary of all actions that have been taken to 
     implement such recommendation; and
       (B) a schedule, with specific milestones, for completing 
     the implementation of such recommendation.
       (2) For each recommendation that the Secretary has not 
     implemented and does not plan to implement--
       (A) the reasons for the decision not to implement such 
     recommendation; and
       (B) a summary of any alternative actions the Secretary 
     plans to take to address the purposes underlying such 
     recommendation.
       (3) A summary of any additional actions the Secretary has 
     taken or plans to take to ensure that total ownership cost is 
     appropriately considered in the requirements process for 
     major weapon systems.
Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

     SEC. 821. PLAN FOR RESTRICTING GOVERNMENT-UNIQUE CONTRACT 
                   CLAUSES ON COMMERCIAL CONTRACTS.

       (a) Plan.--The Under Secretary of Defense for Acquisition, 
     Technology, and Logistics shall develop and implement a plan 
     to minimize the number of government-unique contract clauses 
     used in commercial contracts by restricting the clauses to 
     the following:
       (1) Government-unique clauses authorized by law or 
     regulation.
       (2) Any additional clauses that are relevant and necessary 
     to a specific contract.
       (b) Commercial Contract.--In this section:
       (1) The term ``commercial contract'' means a contract 
     awarded by the Federal Government for the procurement of a 
     commercial item.
       (2) The term ``commercial item'' has the meaning provided 
     by section 4(12) of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 403(12)).

     SEC. 822. EXTENSION OF AUTHORITY FOR USE OF SIMPLIFIED 
                   ACQUISITION PROCEDURES FOR CERTAIN COMMERCIAL 
                   ITEMS.

       (a) Extension.--Section 4202(e) of the Clinger-Cohen Act of 
     1996 (division D of Public Law 104-106; 110 Stat. 652; 10 
     U.S.C. 2304 note) is amended by striking ``January 1, 2008'' 
     and inserting ``January 1, 2010''.
       (b) Report.--Not later than March 1, 2008, the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a report on the 
     use by the Department of Defense of the authority provided by 
     section 4202(e) of the Clinger-Cohen Act of 1996 (10 U.S.C. 
     2304 note). The report shall include, at a minimum, the 
     following:
       (1) Summary data on the use of the authority.
       (2) Specific examples of the use of the authority.
       (3) An evaluation of potential benefits and costs of 
     extending the authority after January 1, 2010.

     SEC. 823. FIVE-YEAR EXTENSION OF AUTHORITY TO CARRY OUT 
                   CERTAIN PROTOTYPE PROJECTS.

       Section 845(i) of the National Defense Authorization Act 
     for Fiscal Year 1994 (10 U.S.C. 2371 note) is amended by 
     striking ``September 30, 2008'' and inserting ``September 30, 
     2013''.

     SEC. 824. EXEMPTION OF SPECIAL OPERATIONS COMMAND FROM 
                   CERTAIN REQUIREMENTS FOR CERTAIN CONTRACTS 
                   RELATING TO VESSELS, AIRCRAFT, AND COMBAT 
                   VEHICLES.

       Section 2401(b) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(5) In the case of a contract described in subsection 
     (a)(1)(B), the commander of the special operations command 
     may make a contract without regard to this subsection if--
       ``(A) funds are available and obligated for the full cost 
     of the contract (including termination costs) on or before 
     the date the contract is awarded;
       ``(B) the Secretary of Defense submits to the congressional 
     defense committees a certification that there is no 
     alternative for meeting urgent operational requirements other 
     than making the contract; and
       ``(C) a period of 30 days of continuous session of Congress 
     has expired following the date on which the certification was 
     received by such committees.''.

     SEC. 825. PROVISION OF AUTHORITY TO MAINTAIN EQUIPMENT TO 
                   UNIFIED COMBATANT COMMAND FOR JOINT 
                   WARFIGHTING.

       (a) Authority.--Section 167a of title 10, United States 
     Code, is amended--
       (1) in subsection (a), by striking ``and acquire'' and 
     inserting ``, acquire, and maintain'';
       (2) by redesignating subsection (f) as subsection (g); and
       (3) by inserting after subsection (e) the following new 
     subsection:
       ``(f) Limitation on Authority To Maintain Equipment.--The 
     authority delegated under subsection (a) to maintain 
     equipment is subject to the availability of funds authorized 
     and appropriated specifically for that purpose.''.
       (b) Two-Year Extension.--Subsection (g) of such section, as 
     so redesignated, is amended--
       (1) by striking ``through 2008'' and inserting ``through 
     2010''; and
       (2) by striking ``September 30, 2008'' and inserting 
     ``September 30, 2010''.

     SEC. 826. MARKET RESEARCH.

       (a) Additional Requirements.--Subsection (c) of section 
     2377 of title 10, United States Code, is amended--
       (1) in paragraph (1)--
       (A) by striking ``and'' at the end of subparagraph (A);
       (B) by striking the period at the end of subparagraph (B) 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(C) before awarding a task order or delivery order in 
     excess of the simplified acquisition threshold.''; and
       (2) by adding at the end the following:
       ``(4) The head of an agency shall take appropriate steps to 
     ensure that any prime contractor of a contract (or task order 
     or delivery order) in an amount in excess of $5,000,000 for 
     the procurement of items other than commercial items engages 
     in such market research as may be necessary to carry out the 
     requirements of subsection (b)(2) before making purchases for 
     or on behalf of the Department of Defense.''.
       (b) Requirement To Develop Training and Tools.--The 
     Secretary of Defense shall develop training to assist 
     contracting officers, and market research tools to assist 
     such officers and prime contractors, in performing 
     appropriate market research as required by subsection (c) of 
     section 2377 of title 10, United States Code, as amended by 
     this section.

     SEC. 827. MODIFICATION OF COMPETITION REQUIREMENTS FOR 
                   PURCHASES FROM FEDERAL PRISON INDUSTRIES.

       (a) Modification of Competition Requirements.--
       (1) In general.--Section 2410n of title 10, United States 
     Code, is amended by striking subsections (a) and (b) and 
     inserting the following new subsections (a) and (b):
       ``(a) Products for Which Federal Prison Industries Does Not 
     Have Significant Market Share.--(1) Before purchasing a 
     product listed in the latest edition of the Federal Prison 
     Industries catalog under section 4124(d) of title 18 for 
     which Federal Prison Industries does not have a significant 
     market share, the Secretary of Defense shall conduct market 
     research to determine whether the product is comparable to 
     products available from the private sector that best meet the 
     needs of the Department in terms of price, quality, and time 
     of delivery.
       ``(2) If the Secretary determines that a Federal Prison 
     Industries product described in paragraph (1) is not 
     comparable in price, quality, or time of delivery to products 
     of the private sector that best meets the needs of the 
     Department in terms of price, quality, and time of delivery, 
     the Secretary shall use competitive procedures for the 
     procurement of the product, or shall make an individual 
     purchase under a multiple award contract in accordance with 
     the competition requirements applicable to such contract. In 
     conducting such a competition, the Secretary shall consider a 
     timely offer from Federal Prison Industries.
       ``(b) Products for Which Federal Prison Industries Has 
     Significant Market Share.--(1) The Secretary of Defense may 
     purchase a product listed in the latest edition of the 
     Federal Prison Industries catalog for which Federal Prison 
     Industries has a significant market share only if the 
     Secretary uses competitive procedures for the procurement of 
     the product or makes an individual purchase under a multiple 
     award contract in accordance with the competition 
     requirements applicable to such contract. In conducting such 
     a competition, the Secretary shall consider a timely offer 
     from Federal Prison Industries.
       ``(2) For purposes of this subsection, Federal Prison 
     Industries shall be treated as having a significant share of 
     the market for a product if the Secretary, in consultation 
     with the Administrator of Federal Procurement Policy, 
     determines that the Federal Prison Industries share of the 
     Department of Defense market for the category of products 
     including such product is greater than 5 percent.''.
       (2) Effective date.--The amendment made by subsection (a) 
     shall take effect 60 days after the date of the enactment of 
     this Act.
       (b) List of Products for Which Federal Prison Industries 
     Has Significant Market Share.--
       (1) Initial list.--Not later than 60 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     publish a list of product categories for which Federal Prison 
     Industries' share of the Department of Defense market is 
     greater than 5 percent, based on the most recent fiscal year 
     for which data is available.
       (2) Modification.--The Secretary may modify the list 
     published under paragraph (1) at any time if the Secretary 
     determines that new data require adding a product category to 
     the list or omitting a product category from the list.
       (3) Consultation.--The Secretary shall carry out this 
     subsection in consultation with the Administrator for Federal 
     Procurement Policy.

[[Page 32582]]



     SEC. 828. MULTIYEAR CONTRACT AUTHORITY FOR ELECTRICITY FROM 
                   RENEWABLE ENERGY SOURCES.

       (a) Multiyear Contract Authority.--Chapter 141 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2410q. Multiyear contracts: purchase of electricity 
       from renewable energy sources

       ``(a) Multiyear Contracts Authorized.--Subject to 
     subsection (b), the Secretary of Defense may enter into a 
     contract for a period not to exceed 10 years for the purchase 
     of electricity from sources of renewable energy, as that term 
     is defined in section 203(b)(2) of the Energy Policy Act of 
     2005 (42 U.S.C. 15852(b)(2)).
       ``(b) Limitations on Contracts for Periods in Excess of 
     Five Years.--The Secretary may exercise the authority in 
     subsection (a) to enter into a contract for a period in 
     excess of five years only if the Secretary determines, on the 
     basis of a business case analysis prepared by the Department 
     of Defense, that--
       ``(1) the proposed purchase of electricity under such 
     contract is cost effective for the Department of Defense; and
       ``(2) it would not be possible to purchase electricity from 
     the source in an economical manner without the use of a 
     contract for a period in excess of five years.
       ``(c) Relationship to Other Multiyear Contracting 
     Authority.--Nothing in this section shall be construed to 
     preclude the Department of Defense from using other multiyear 
     contracting authority of the Department to purchase renewable 
     energy.''.
       (b) 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:

``2410q. Multiyear contracts: purchase of electricity from renewable 
              energy sources.''.

     SEC. 829. PROCUREMENT OF FIRE RESISTANT RAYON FIBER FOR THE 
                   PRODUCTION OF UNIFORMS FROM FOREIGN SOURCES.

       (a) Authority To Procure.--The Secretary of Defense may 
     procure fire resistant rayon fiber for the production of 
     uniforms that is manufactured in a foreign country referred 
     to in subsection (d) if the Secretary determines either of 
     the following:
       (1) That fire resistant rayon fiber for the production of 
     uniforms is not available from sources within the national 
     technology and industrial base.
       (2) That--
       (A) procuring fire resistant rayon fiber manufactured from 
     suppliers within the national technology and industrial base 
     would result in sole-source contracts or subcontracts for the 
     supply of fire resistant rayon fiber; and
       (B) such sole-source contracts or subcontracts would not be 
     in the best interests of the Government or consistent with 
     the objectives of section 2304 of title 10, United States 
     Code.
       (b) Submission to Congress.--Not later than 30 days after 
     making a determination under subsection (a), the Secretary 
     shall submit to Congress a copy of the determination.
       (c) Applicability to Subcontracts.--The authority under 
     subsection (a) applies with respect to subcontracts under 
     Department of Defense contracts as well as to such contracts.
       (d) Foreign Countries Covered.--The authority under 
     subsection (a) applies with respect to a foreign country 
     that--
       (1) is a party to a defense memorandum of understanding 
     entered into under section 2531 of title 10, United States 
     Code; and
       (2) does not discriminate against defense items produced in 
     the United States to a greater degree than the United States 
     discriminates against defense items produced in that country.
       (e) National Technology and Industrial Base Defined.--In 
     this section, the term ``national technology and industrial 
     base'' has the meaning given that term in section 2500 of 
     title 10, United States Code.
       (f) Sunset.--The authority under subsection (a) shall 
     expire on the date that is five years after the date of the 
     enactment of this Act.

     SEC. 830. COMPTROLLER GENERAL REVIEW OF NONCOMPETITIVE AWARDS 
                   OF CONGRESSIONAL AND EXECUTIVE BRANCH INTEREST 
                   ITEMS.

        Not later than one year after the date of the enactment of 
     this Act, the Comptroller General of the United States shall 
     submit to the congressional defense committees a report on 
     the use of procedures other than competitive procedures in 
     the award of contracts by the Department of Defense. The 
     report shall compare the procedures used by the Department of 
     Defense for the award of funds for new projects pursuant to 
     congressionally directed spending items, as defined in rule 
     XLIV of the Standing Rules of the Senate, or congressional 
     earmarks, as defined in rule XXI of the Rules of the House of 
     Representatives, with the procedures used by the Department 
     of Defense for the award of funds for new projects of special 
     interest to senior executive branch officials.
               Subtitle D--Accountability in Contracting

     SEC. 841. COMMISSION ON WARTIME CONTRACTING IN IRAQ AND 
                   AFGHANISTAN.

       (a) Establishment.--There is hereby established a 
     commission to be known as the ``Commission on Wartime 
     Contracting'' (in this section referred to as the 
     ``Commission'').
       (b) Membership Matters.--
       (1) Membership.--The Commission shall be composed of 8 
     members, as follows:
       (A) 2 members shall be appointed by the majority leader of 
     the Senate, in consultation with the Chairmen of the 
     Committee on Armed Services, the Committee on Homeland 
     Security and Governmental Affairs, and the Committee on 
     Foreign Relations of the Senate.
       (B) 2 members shall be appointed by the Speaker of the 
     House of Representatives, in consultation with the Chairmen 
     of the Committee on Armed Services, the Committee on 
     Oversight and Government Reform, and the Committee on Foreign 
     Affairs of the House of Representatives.
       (C) 1 member shall be appointed by the minority leader of 
     the Senate, in consultation with the Ranking Minority Members 
     of the Committee on Armed Services, the Committee on Homeland 
     Security and Governmental Affairs, and the Committee on 
     Foreign Relations of the Senate.
       (D) 1 member shall be appointed by the minority leader of 
     the House of Representatives, in consultation with the 
     Ranking Minority Member of the Committee on Armed Services, 
     the Committee on Oversight and Government Reform, and the 
     Committee on Foreign Affairs of the House of Representatives.
       (E) 2 members shall be appointed by the President, in 
     consultation with the Secretary of Defense and the Secretary 
     of State.
       (2) Deadline for appointments.--All appointments to the 
     Commission shall be made not later than 120 days after the 
     date of the enactment of this Act.
       (3) Co-chairmen.--The Commission shall have two co-
     chairmen, including--
       (A) a co-chairman who shall be a member of the Commission 
     jointly designated by the Speaker of the House of 
     Representatives and the majority leader of the Senate; and
       (B) a co-chairman who shall be a member of the Commission 
     jointly designated by the minority leader of the House of 
     Representatives and the minority leader of the Senate.
       (4) Vacancy.--In the event of a vacancy in a seat on the 
     Commission, the individual appointed to fill the vacant seat 
     shall be--
       (A) appointed by the same officer (or the officer's 
     successor) who made the appointment to the seat when the 
     Commission was first established; and
       (B) if the officer in subparagraph (A) is of a party other 
     than the party of the officer who made the appointment to the 
     seat when the Commission was first established, chosen in 
     consultation with the senior officers in the Senate and the 
     House of Representatives of the party which is the party of 
     the officer who made the appointment to the seat when the 
     Commission was first established.
       (c) Duties.--
       (1) General duties.--The Commission shall study the 
     following matters:
       (A) Federal agency contracting for the reconstruction of 
     Iraq and Afghanistan.
       (B) Federal agency contracting for the logistical support 
     of coalition forces operating in Iraq and Afghanistan.
       (C) Federal agency contracting for the performance of 
     security functions in Iraq and Afghanistan.
       (2) Scope of contracting covered.--The Federal agency 
     contracting covered by this subsection includes contracts 
     entered into both in the United States and abroad for the 
     performance of activities described in paragraph (1).
       (3) Particular duties.--In carrying out the study under 
     this subsection, the Commission shall assess--
       (A) the extent of the reliance of the Federal Government on 
     contractors to perform functions (including security 
     functions) in Iraq and Afghanistan and the impact of this 
     reliance on the achievement of the objectives of the United 
     States;
       (B) the performance exhibited by Federal contractors for 
     the contracts under review pursuant to paragraph (1), and the 
     mechanisms used to evaluate contractor performance;
       (C) the extent of waste, fraud, and abuse under such 
     contracts;
       (D) the extent to which those responsible for such waste, 
     fraud, and abuse have been held financially or legally 
     accountable;
       (E) the appropriateness of the organizational structure, 
     policies, practices, and resources of the Department of 
     Defense and the Department of State for handling program 
     management and contracting for the programs and contracts 
     under review pursuant to paragraph (1);
       (F) the extent to which contractors under such contracts 
     have engaged in the misuse of force or have used force in a 
     manner inconsistent with the objectives of the operational 
     field commander; and
       (G) the extent of potential violations of the laws of war, 
     Federal law, or other applicable legal standards by 
     contractors under such contracts.
       (d) Reports.--
       (1) Interim report.--On March 1, 2009, the Commission shall 
     submit to Congress an interim report on the study carried out 
     under subsection (c), including the results and findings of 
     the study as of that date.
       (2) Other reports.--The Commission may from time to time 
     submit to Congress such other reports on the study carried 
     out under subsection (c) as the Commission considers 
     appropriate.
       (3) Final report.--Not later than two years after the date 
     of the appointment of all of the members of the Commission 
     under subsection (b), the Commission shall submit to Congress 
     a final report on the study carried out under subsection (c). 
     The report shall--
       (A) include the findings of the Commission;
       (B) identify lessons learned relating to contingency 
     program management and contingency contracting covered by the 
     study; and
       (C) include specific recommendations for improvements to be 
     made in--

[[Page 32583]]

       (i) the process for defining requirements and developing 
     statements of work for contracts in contingency contracting;
       (ii) the process for awarding contracts and task or 
     delivery orders in contingency contracting;
       (iii) the process for contingency program management;
       (iv) the process for identifying, addressing, and providing 
     accountability for waste, fraud, and abuse in contingency 
     contracting;
       (v) the process for determining which functions are 
     inherently governmental and which functions are appropriate 
     for performance by contractors in a contingency operation 
     (including during combat operations), especially whether 
     providing security in an area of combat operations is 
     inherently governmental;
       (vi) the organizational structure, resources, policies, and 
     practices of the Department of Defense and the Department of 
     State for performing contingency program management; and
       (vii) the process by which roles and responsibilities with 
     respect to management and oversight of contracts in 
     contingency contracting are distributed among the various 
     departments and agencies of the Federal Government, and 
     interagency coordination and communication mechanisms 
     associated with contingency contracting.
       (e) Other Powers and Authorities.--
       (1) Hearings and evidence.--The Commission or, on the 
     authority of the Commission, any portion thereof, may, for 
     the purpose of carrying out this section--
       (A) hold such hearings and sit and act at such times and 
     places, take such testimony, receive such evidence, 
     administer such oaths (provided that the quorum for a hearing 
     shall be three members of the Commission); and
       (B) provide for the attendance and testimony of such 
     witnesses and the production of such books, records, 
     correspondence, memoranda, papers, and documents;
     as the Commission, or such portion thereof, may determine 
     advisable.
       (2) Inability to obtain documents or testimony.--In the 
     event the Commission is unable to obtain testimony or 
     documents needed to conduct its work, the Commission shall 
     notify the committees of Congress of jurisdiction and 
     appropriate investigative authorities.
       (3) Access to information.--The Commission may secure 
     directly from the Department of Defense and any other 
     department or agency of the Federal Government any 
     information or assistance that the Commission considers 
     necessary to enable the Commission to carry out the 
     requirements of this section. Upon request of the Commission, 
     the head of such department or agency shall furnish such 
     information expeditiously to the Commission. Whenever 
     information or assistance requested by the Commission is 
     unreasonably refused or not provided, the Commission shall 
     report the circumstances to Congress without delay.
       (4) Personnel.--The Commission shall have the authorities 
     provided in section 3161 of title 5, United States Code, and 
     shall be subject to the conditions set forth in such section, 
     except to the extent that such conditions would be 
     inconsistent with the requirements of this section.
       (5) Detailees.--Any employee of the Federal Government may 
     be detailed to the Commission without reimbursement from the 
     Commission, and such detailee shall retain the rights, 
     status, and privileges of his or her regular employment 
     without interruption.
       (6) Security clearances.--The appropriate departments or 
     agencies of the Federal Government shall cooperate with the 
     Commission in expeditiously providing to the Commission 
     members and staff appropriate security clearances to the 
     extent possible pursuant to existing procedures and 
     requirements, except that no person shall be provided with 
     access to classified information under this section without 
     the appropriate security clearances.
       (7) Violations of law.--
       (A) Referral to attorney general.--The Commission may refer 
     to the Attorney General any violation or potential violation 
     of law identified by the Commission in carrying out its 
     duties under this section.
       (B) Reports on results of referral.--The Attorney General 
     shall submit to Congress a report on each prosecution, 
     conviction, resolution, or other disposition that results 
     from a referral made under this subparagraph.
       (f) Termination.--The Commission shall terminate on the 
     date that is 60 days after the date of the submittal of its 
     final report under subsection (d)(3).
       (g) Definitions.--In this section:
       (1) Contingency contracting.--The term ``contingency 
     contracting'' means all stages of the process of acquiring 
     property or services during a contingency operation.
       (2) Contingency operation.--The term ``contingency 
     operation'' has the meaning given that term in section 101 of 
     title 10, United States Code.
       (3) Contingency program management.--The term ``contingency 
     program management'' means the process of planning, 
     organizing, staffing, controlling, and leading the combined 
     efforts of participating personnel for the management of a 
     specific acquisition program or programs during contingency 
     operations.

     SEC. 842. INVESTIGATION OF WASTE, FRAUD, AND ABUSE IN WARTIME 
                   CONTRACTS AND CONTRACTING PROCESSES IN IRAQ AND 
                   AFGHANISTAN.

       (a) Audits Required.--Thorough audits shall be performed in 
     accordance with this section to identify potential waste, 
     fraud, and abuse in the performance of--
       (1) Department of Defense contracts, subcontracts, and task 
     and delivery orders for the logistical support of coalition 
     forces in Iraq and Afghanistan; and
       (2) Federal agency contracts, subcontracts, and task and 
     delivery orders for the performance of security and 
     reconstruction functions in Iraq and Afghanistan.
       (b) Audit Plans.--
       (1) The Department of Defense Inspector General shall 
     develop a comprehensive plan for a series of audits of 
     contracts, subcontracts, and task and delivery orders covered 
     by subsection (a)(1), consistent with the requirements of 
     subsection (g), in consultation with other Inspectors General 
     specified in subsection (c) with regard to any contracts, 
     subcontracts, or task or delivery orders over which such 
     Inspectors General have jurisdiction.
       (2) The Special Inspector General for Iraq Reconstruction 
     shall develop a comprehensive plan for a series of audits of 
     contracts, subcontracts, and task and delivery orders covered 
     by subsection (a)(2) relating to Iraq, consistent with the 
     requirements of subsection (h), in consultation with other 
     Inspectors General specified in subsection (c) with regard to 
     any contracts, subcontracts, or task or delivery orders over 
     which such Inspectors General have jurisdiction.
       (3) The Special Inspector General for Afghanistan 
     Reconstruction shall develop a comprehensive plan for a 
     series of audits of contracts, subcontracts, and task and 
     delivery orders covered by subsection (a)(2) relating to 
     Afghanistan, consistent with the requirements of subsection 
     (h), in consultation with other Inspectors General specified 
     in subsection (c) with regard to any contracts, subcontracts, 
     or task or delivery orders over which such Inspectors General 
     have jurisdiction.
       (c) Performance of Audits by Certain Inspectors General.--
     The Special Inspector General for Iraq Reconstruction, during 
     such period as such office exists, the Special Inspector 
     General for Afghanistan Reconstruction, during such period as 
     such office exists, the Inspector General of the Department 
     of Defense, the Inspector General of the Department of State, 
     and the Inspector General of the United States Agency for 
     International Development shall perform such audits as 
     required by subsection (a) and identified in the audit plans 
     developed pursuant to subsection (b) as fall within the 
     respective scope of their duties as specified in law.
       (d) Coordination of Audits.--The Inspectors General 
     specified in subsection (c) shall work to coordinate the 
     performance of the audits required by subsection (a) and 
     identified in the audit plans developed under to subsection 
     (b) including through councils and working groups composed of 
     such Inspectors General.
       (e) Joint Audits.--If one or more audits required by 
     subsection (a) and identified in an audit plan developed 
     under subsection (b) falls within the scope of the duties of 
     more than one of the Inspectors General specified in 
     subsection (c), and such Inspectors General agree that such 
     audit or audits are best pursued jointly, such Inspectors 
     General shall enter into a memorandum of understanding 
     relating to the performance of such audit or audits.
       (f) Separate Audits.--If one or more audits required by 
     subsection (a) and identified in an audit plan developed 
     under subsection (b) falls within the scope of the duties of 
     more than one of the Inspectors General specified in 
     subsection (c), and such Inspectors General do not agree that 
     such audit or audits are best pursued jointly, such audit or 
     audits shall be separately performed by one or more of the 
     Inspectors General concerned.
       (g) Scope of Audits of Contracts.--Audits conducted 
     pursuant to subsection (a)(1) shall examine, at a minimum, 
     one or more of the following issues:
       (1) The manner in which contract requirements were 
     developed.
       (2) The procedures under which contracts or task or 
     delivery orders were awarded.
       (3) The terms and conditions of contracts or task or 
     delivery orders.
       (4) The staffing and method of performance of contractors, 
     including cost controls.
       (5) The efficacy of Department of Defense management and 
     oversight, including the adequacy of staffing and training of 
     officials responsible for such management and oversight.
       (6) The flow of information from contractors to officials 
     responsible for contract management and oversight.
       (h) Scope of Audits of Other Contracts.--Audits conducted 
     pursuant to subsection (a)(2) shall examine, at a minimum, 
     one or more of the following issues:
       (1) The manner in which contract requirements were 
     developed and contracts or task and delivery orders were 
     awarded.
       (2) The manner in which the Federal agency exercised 
     control over the performance of contractors.
       (3) The extent to which operational field commanders were 
     able to coordinate or direct the performance of contractors 
     in an area of combat operations.
       (4) The degree to which contractor employees were properly 
     screened, selected, trained, and equipped for the functions 
     to be performed.
       (5) The nature and extent of any incidents of misconduct or 
     unlawful activity by contractor employees.
       (6) The nature and extent of any activity by contractor 
     employees that was inconsistent with the objectives of 
     operational field commanders.
       (7) The extent to which any incidents of misconduct or 
     unlawful activity were reported, documented, investigated, 
     and (where appropriate) prosecuted.

[[Page 32584]]

       (i) Independent Conduct of Audit Functions.--All audit 
     functions under this section, including audit planning and 
     coordination, shall be performed by the relevant Inspectors 
     General in an independent manner, without consultation with 
     the Commission established pursuant to section 841 of this 
     Act. All audit reports resulting from such audits shall be 
     available to the Commission.

     SEC. 843. ENHANCED COMPETITION REQUIREMENTS FOR TASK AND 
                   DELIVERY ORDER CONTRACTS.

       (a) Defense Contracts.--
       (1) Limitation on single award contracts.--Section 2304a(d) 
     of title 10, United States Code, is amended--
       (A) by redesignating paragraph (3) as paragraph (4); and
       (B) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3)(A) No task or delivery order contract in an amount 
     estimated to exceed $100,000,000 (including all options) may 
     be awarded to a single source unless the head of the agency 
     determines in writing that--
       ``(i) the task or delivery orders expected under the 
     contract are so integrally related that only a single source 
     can reasonably perform the work;
       ``(ii) the contract provides only for firm, fixed price 
     task orders or delivery orders for--
       ``(I) products for which unit prices are established in the 
     contract; or
       ``(II) services for which prices are established in the 
     contract for the specific tasks to be performed;
       ``(iii) only one source is qualified and capable of 
     performing the work at a reasonable price to the government; 
     or
       ``(iv) because of exceptional circumstances, it is 
     necessary in the public interest to award the contract to a 
     single source.
       ``(B) The head of the agency shall notify Congress within 
     30 days after any determination under subparagraph 
     (A)(iv).''.
       (2) Enhanced competition for orders in excess of 
     $5,000,000.--Section 2304c of such title is amended--
       (A) by redesignating subsections (d), (e), and (f) as 
     subsections (e), (f), and (g), respectively;
       (B) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Enhanced Competition for Orders in Excess of 
     $5,000,000.--In the case of a task or delivery order in 
     excess of $5,000,000, the requirement to provide all 
     contractors a fair opportunity to be considered under 
     subsection (b) is not met unless all such contractors are 
     provided, at a minimum--
       ``(1) a notice of the task or delivery order that includes 
     a clear statement of the agency's requirements;
       ``(2) a reasonable period of time to provide a proposal in 
     response to the notice;
       ``(3) disclosure of the significant factors and subfactors, 
     including cost or price, that the agency expects to consider 
     in evaluating such proposals, and their relative importance;
       ``(4) in the case of an award that is to be made on a best 
     value basis, a written statement documenting the basis for 
     the award and the relative importance of quality and price or 
     cost factors; and
       ``(5) an opportunity for a post-award debriefing consistent 
     with the requirements of section 2305(b)(5) of this title.''; 
     and
       (C) by striking subsection (e), as redesignated by 
     paragraph (1), and inserting the following new subsection 
     (e):
       ``(e) Protests.--(1) A protest is not authorized in 
     connection with the issuance or proposed issuance of a task 
     or delivery order except for--
       ``(A) a protest on the ground that the order increases the 
     scope, period, or maximum value of the contract under which 
     the order is issued; or
       ``(B) a protest of an order valued in excess of 
     $10,000,000.
       ``(2) Notwithstanding section 3556 of title 31, the 
     Comptroller General of the United States shall have exclusive 
     jurisdiction of a protest authorized under paragraph (1)(B).
       ``(3) This subsection shall be in effect for three years, 
     beginning on the date that is 120 days after the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2008.''.
       (3) Effective dates.--
       (A) Single award contracts.--The amendments made by 
     paragraph (1) shall take effect on the date that is 120 days 
     after the date of the enactment of this Act, and shall apply 
     with respect to any contract awarded on or after such date.
       (B) Orders in excess of $5,000,000.--The amendments made by 
     paragraph (2) shall take effect on the date that is 120 days 
     after the date of the enactment of this Act, and shall apply 
     with respect to any task or delivery order awarded on or 
     after such date.
       (b) Civilian Agency Contracts.--
       (1) Limitation on single award contracts.--Section 303H(d) 
     of the Federal Property and Administrative Services Act of 
     1949 (41 U.S.C. 253h(d)) is amended--
       (A) by redesignating paragraph (3) as paragraph (4); and
       (B) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3)(A) No task or delivery order contract in an amount 
     estimated to exceed $100,000,000 (including all options) may 
     be awarded to a single source unless the head of the 
     executive agency determines in writing that--
       ``(i) the task or delivery orders expected under the 
     contract are so integrally related that only a single source 
     can reasonably perform the work;
       ``(ii) the contract provides only for firm, fixed price 
     task orders or delivery orders for--
       ``(I) products for which unit prices are established in the 
     contract; or
       ``(II) services for which prices are established in the 
     contract for the specific tasks to be performed;
       ``(iii) only one source is qualified and capable of 
     performing the work at a reasonable price to the government; 
     or
       ``(iv) because of exceptional circumstances, it is 
     necessary in the public interest to award the contract to a 
     single source.
       ``(B) The head of the executive agency shall notify 
     Congress within 30 days after any determination under 
     subparagraph (A)(iv).''.
       (2) Enhanced competition for orders in excess of 
     $5,000,000.--Section 303J of such Act (41 U.S.C. 253j) is 
     amended--
       (A) by redesignating subsections (d), (e), and (f) as 
     subsections (e), (f), and (g), respectively;
       (B) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Enhanced Competition for Orders in Excess of 
     $5,000,000.--In the case of a task or delivery order in 
     excess of $5,000,000, the requirement to provide all 
     contractors a fair opportunity to be considered under 
     subsection (b) is not met unless all such contractors are 
     provided, at a minimum--
       ``(1) a notice of the task or delivery order that includes 
     a clear statement of the executive agency's requirements;
       ``(2) a reasonable period of time to provide a proposal in 
     response to the notice;
       ``(3) disclosure of the significant factors and subfactors, 
     including cost or price, that the executive agency expects to 
     consider in evaluating such proposals, and their relative 
     importance;
       ``(4) in the case of an award that is to be made on a best 
     value basis, a written statement documenting the basis for 
     the award and the relative importance of quality and price or 
     cost factors; and
       ``(5) an opportunity for a post-award debriefing consistent 
     with the requirements of section 303B(e).''; and
       (C) by striking subsection (e), as redesignated by 
     paragraph (1), and inserting the following new subsection 
     (e):
       ``(e) Protests.--(1) A protest is not authorized in 
     connection with the issuance or proposed issuance of a task 
     or delivery order except for--
       ``(A) a protest on the ground that the order increases the 
     scope, period, or maximum value of the contract under which 
     the order is issued; or
       ``(B) a protest of an order valued in excess of 
     $10,000,000.
       ``(2) Notwithstanding section 3556 of title 31, United 
     States Code, the Comptroller General of the United States 
     shall have exclusive jurisdiction of a protest authorized 
     under paragraph (1)(B).
       ``(3) This subsection shall be in effect for three years, 
     beginning on the date that is 120 days after the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2008.''.
       (3) Effective dates.--
       (A) Single award contracts.--The amendments made by 
     paragraph (1) shall take effect on the date that is 120 days 
     after the date of the enactment of this Act, and shall apply 
     with respect to any contract awarded on or after such date.
       (B) Orders in excess of $5,000,000.--The amendments made by 
     paragraph (2) shall take effect on the date that is 120 days 
     after the date of the enactment of this Act, and shall apply 
     with respect to any task or delivery order awarded on or 
     after such date.

     SEC. 844. PUBLIC DISCLOSURE OF JUSTIFICATION AND APPROVAL 
                   DOCUMENTS FOR NONCOMPETITIVE CONTRACTS.

       (a) Civilian Agency Contracts.--
       (1) In general.--Section 303 of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253) is 
     amended by adding at the end the following new subsection:
       ``(j)(1)(A) Except as provided in subparagraph (B), in the 
     case of a procurement permitted by subsection (c), the head 
     of an executive agency shall make publicly available, within 
     14 days after the award of the contract, the documents 
     containing the justification and approval required by 
     subsection (f)(1) with respect to the procurement.
       ``(B) In the case of a procurement permitted by subsection 
     (c)(2), subparagraph (A) shall be applied by substituting `30 
     days' for `14 days'.
       ``(2) The documents shall be made available on the website 
     of the agency and through a government-wide website selected 
     by the Administrator for Federal Procurement Policy.
       ``(3) This subsection does not require the public 
     availability of information that is exempt from public 
     disclosure under section 552(b) of title 5, United States 
     Code.''.
       (2) Conforming amendment.--Section 303(f) of such Act is 
     amended--
       (A) by striking paragraph (4); and
       (B) by redesignating paragraph (5) as paragraph (4).
       (b) Defense Agency Contracts.--
       (1) In general.--Section 2304 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(l)(1)(A) Except as provided in subparagraph (B), in the 
     case of a procurement permitted by subsection (c), the head 
     of an agency shall make publicly available, within 14 days 
     after the award of the contract, the documents containing the 
     justification and approval required by subsection (f)(1) with 
     respect to the procurement.
       ``(B) In the case of a procurement permitted by subsection 
     (c)(2), subparagraph (A) shall be applied by substituting `30 
     days' for `14 days'.

[[Page 32585]]

       ``(2) The documents shall be made available on the website 
     of the agency and through a government-wide website selected 
     by the Administrator for Federal Procurement Policy.
       ``(3) This subsection does not require the public 
     availability of information that is exempt from public 
     disclosure under section 552(b) of title 5.''.
       (2) Conforming amendment.--Section 2304(f) of such title is 
     amended--
       (A) by striking paragraph (4); and
       (B) by redesignating paragraphs (5) and (6) as paragraphs 
     (4) and (5), respectively.

     SEC. 845. DISCLOSURE OF GOVERNMENT CONTRACTOR AUDIT FINDINGS.

        (a) Required Annex on Significant Audit Findings.--
       (1) In general.--Each Inspector General appointed under the 
     Inspector General Act of 1978 shall submit, as part of the 
     semiannual report submitted to Congress pursuant to section 5 
     of such Act, an annex on final, completed contract audit 
     reports issued to the contracting activity containing 
     significant audit findings issued during the period covered 
     by the semiannual report concerned.
       (2) Elements.--Such annex shall include--
       (A) a list of such contract audit reports;
       (B) for each audit report, a brief description of the 
     nature of the significant audit findings in the report; and
       (C) for each audit report, the specific amounts of costs 
     identified as unsupported, questioned, or disallowed.
       (3) Information exempt from public disclosure.--(A) Nothing 
     in this subsection shall be construed to require the release 
     of information to the public that is exempt from public 
     disclosure under section 552(b) of title 5, United States 
     Code.
       (B) For each element required by paragraph (2), the 
     Inspector General concerned shall note each instance where 
     information has been redacted in accordance with the 
     requirements of section 552(b) of title 5, United States 
     Code, and submit an unredacted annex to the committees listed 
     in subsection (d)(2) within 7 days after the issuance of the 
     semiannual report.
       (b) Defense Contract Audit Agency Included.--For purposes 
     of subsection (a), audits of the Defense Contract Audit 
     Agency shall be included in the annex provided by the 
     Inspector General of the Department of Defense if they 
     include significant audit findings.
       (c) Exception.--Subsection (a) shall not apply to an 
     Inspector General if no audits described in such subsection 
     were issued during the covered period.
       (d) Submission of Individual Audits.--
       (1) Requirement.--The head of each Federal department or 
     agency shall provide, within 14 days after a request in 
     writing by the chairman or ranking member of any committee 
     listed in paragraph (2), a full and unredacted copy of any 
     audit described in subsection (a). Such copy shall include an 
     identification of information in the audit exempt from public 
     disclosure under section 552(b) of title 5, United States 
     Code.
       (2) Committees.--The committees listed in this paragraph 
     are the following:
       (A) The Committee on Oversight and Government Reform of the 
     House of Representatives.
       (B) The Committee on Homeland Security and Governmental 
     Affairs of the Senate.
       (C) The Committees on Appropriations of the House of 
     Representatives and the Senate.
       (D) With respect to the Department of Defense and the 
     Department of Energy, the Committees on Armed Services of the 
     Senate and House of Representatives.
       (E) The Committees of primary jurisdiction over the agency 
     or department to which the request is made.
       (e) Classified Information.--Nothing in this section shall 
     be interpreted to require the handling of classified 
     information or information relating to intelligence sources 
     and methods in a manner inconsistent with any law, 
     regulation, executive order, or rule of the House of 
     Representatives or of the Senate relating to the handling or 
     protection of such information.
       (f) Definitions.--In this section:
       (1) Significant audit findings.--The term ``significant 
     audit findings'' includes--
       (A) unsupported, questioned, or disallowed costs in an 
     amount in excess of $10,000,000; or
       (B) other findings that the Inspector General of the agency 
     or department concerned determines to be significant.
       (2) Contract.--The term ``contract'' includes a contract, 
     an order placed under a task or delivery order contract, or a 
     subcontract.

     SEC. 846. PROTECTION FOR CONTRACTOR EMPLOYEES FROM REPRISAL 
                   FOR DISCLOSURE OF CERTAIN INFORMATION.

       (a) Increased Protection From Reprisal.--Subsection (a) of 
     section 2409 of title 10, United States Code, is amended--
       (1) by striking ``disclosing to a Member of Congress'' and 
     inserting ``disclosing to a Member of Congress, a 
     representative of a committee of Congress, an Inspector 
     General, the Government Accountability Office, a Department 
     of Defense employee responsible for contract oversight or 
     management,''; and
       (2) by striking ``information relating to a substantial 
     violation of law related to a contract (including the 
     competition for or negotiation of a contract)'' and inserting 
     ``information that the employee reasonably believes is 
     evidence of gross mismanagement of a Department of Defense 
     contract or grant, a gross waste of Department of Defense 
     funds, a substantial and specific danger to public health or 
     safety, or a violation of law related to a Department of 
     Defense contract (including the competition for or 
     negotiation of a contract) or grant''.
       (b) Clarification of Inspector General Determination.--
     Subsection (b) of such section is amended--
       (1) by inserting ``(1)'' after ``Investigation of 
     Complaints.--'';
       (2) by striking ``an agency'' and inserting ``the 
     Department of Defense, or the Inspector General of the 
     National Aeronautics and Space Administration in the case of 
     a complaint regarding the National Aeronautics and Space 
     Administration''; and
       (3) by adding at the end the following new paragraph:
       ``(2)(A) Except as provided under subparagraph (B), the 
     Inspector General shall make a determination that a complaint 
     is frivolous or submit a report under paragraph (1) within 
     180 days after receiving the complaint.
       ``(B) If the Inspector General is unable to complete an 
     investigation in time to submit a report within the 180-day 
     period specified in subparagraph (A) and the person 
     submitting the complaint agrees to an extension of time, the 
     Inspector General shall submit a report under paragraph (1) 
     within such additional period of time as shall be agreed upon 
     between the Inspector General and the person submitting the 
     complaint.''.
       (c) Acceleration of Schedule for Denying Relief or 
     Providing Remedy.--Subsection (c) of such section is 
     amended--
       (1) in paragraph (1), by striking ``If the head of the 
     agency determines that a contractor has subjected a person to 
     a reprisal prohibited by subsection (a), the head of the 
     agency may'' and inserting after ``(1)'' the following: ``Not 
     later than 30 days after receiving an Inspector General 
     report pursuant to subsection (b), the head of the agency 
     concerned shall determine whether there is sufficient basis 
     to conclude that the contractor concerned has subjected the 
     complainant to a reprisal prohibited by subsection (a) and 
     shall either issue an order denying relief or shall'';
       (2) by redesignating paragraphs (2) and (3) as paragraphs 
     (4) and (5), respectively; and
       (3) by inserting after paragraph (1) the following new 
     paragraphs:
       ``(2) If the head of an executive agency issues an order 
     denying relief under paragraph (1) or has not issued an order 
     within 210 days after the submission of a complaint under 
     subsection (b), or in the case of an extension of time under 
     paragraph (b)(2)(B), not later than 30 days after the 
     expiration of the extension of time, and there is no showing 
     that such delay is due to the bad faith of the complainant, 
     the complainant shall be deemed to have exhausted all 
     administrative remedies with respect to the complaint, and 
     the complainant may bring a de novo action at law or equity 
     against the contractor to seek compensatory damages and other 
     relief available under this section in the appropriate 
     district court of the United States, which shall have 
     jurisdiction over such an action without regard to the amount 
     in controversy. Such an action shall, at the request of 
     either party to the action, be tried by the court with a 
     jury.
       ``(3) An Inspector General determination and an agency head 
     order denying relief under paragraph (2) shall be admissible 
     in evidence in any de novo action at law or equity brought 
     pursuant to this subsection.''.
       (d) Definitions.--Subsection (e) of such section is 
     amended--
       (1) in paragraph (4), by inserting ``or a grant'' after ``a 
     contract''; and
       (2) by inserting before the period at the end the 
     following: ``and any Inspector General that receives funding 
     from, or has oversight over contracts awarded for or on 
     behalf of, the Secretary of Defense''.

     SEC. 847. REQUIREMENTS FOR SENIOR DEPARTMENT OF DEFENSE 
                   OFFICIALS SEEKING EMPLOYMENT WITH DEFENSE 
                   CONTRACTORS.

       (a) Requirement to Seek and Obtain Written Opinion.--
       (1) Request.--An official or former official of the 
     Department of Defense described in subsection (c) who, within 
     two years after leaving service in the Department of Defense, 
     expects to receive compensation from a Department of Defense 
     contractor, shall, prior to accepting such compensation, 
     request a written opinion regarding the applicability of 
     post-employment restrictions to activities that the official 
     or former official may undertake on behalf of a contractor.
       (2) Submission of request.--A request for a written opinion 
     under paragraph (1) shall be submitted in writing to an 
     ethics official of the Department of Defense having 
     responsibility for the organization in which the official or 
     former official serves or served and shall set forth all 
     information relevant to the request, including information 
     relating to government positions held and major duties in 
     those positions, actions taken concerning future employment, 
     positions sought, and future job descriptions, if applicable.
       (3) Written opinion.--Not later than 30 days after 
     receiving a request by an official or former official of the 
     Department of Defense described in subsection (c), the 
     appropriate ethics counselor shall provide such official or 
     former official a written opinion regarding the applicability 
     or inapplicability of post-employment restrictions to 
     activities that the official or former official may undertake 
     on behalf of a contractor.
       (4) Contractor requirement.--A Department of Defense 
     contractor may not knowingly provide compensation to a former 
     Department of Defense official described in subsection (c) 
     within two years after such former official leaves service in 
     the Department of Defense, without first determining that the 
     former official has

[[Page 32586]]

     sought and received (or has not received after 30 days of 
     seeking) a written opinion from the appropriate ethics 
     counselor regarding the applicability of post-employment 
     restrictions to the activities that the former official is 
     expected to undertake on behalf of the contractor.
       (5) Administrative actions.--In the event that an official 
     or former official of the Department of Defense described in 
     subsection (c), or a Department of Defense contractor, 
     knowingly fails to comply with the requirements of this 
     subsection, the Secretary of Defense may take any of the 
     administrative actions set forth in section 27(e) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 423(e)) 
     that the Secretary of Defense determines to be appropriate.
       (b) Recordkeeping Requirement.--
       (1) Database.--Each request for a written opinion made 
     pursuant to this section, and each written opinion provided 
     pursuant to such a request, shall be retained by the 
     Department of Defense in a central database or repository for 
     not less than five years beginning on the date on which the 
     written opinion was provided.
       (2) Inspector general review.--The Inspector General of the 
     Department of Defense shall conduct periodic reviews to 
     ensure that written opinions are being provided and retained 
     in accordance with the requirements of this section. The 
     first such review shall be conducted no later than two years 
     after the date of the enactment of this Act.
       (c) Covered Department of Defense Officials.--An official 
     or former official of the Department of Defense is covered by 
     the requirements of this section if such official or former 
     official--
       (1) participated personally and substantially in an 
     acquisition as defined in section 4(16) of the Office of 
     Federal Procurement Policy Act with a value in excess of 
     $10,000,000 and serves or served--
       (A) in an Executive Schedule position under subchapter II 
     of chapter 53 of title 5, United States Code;
       (B) in a position in the Senior Executive Service under 
     subchapter VIII of chapter 53 of title 5, United States Code; 
     or
       (C) in a general or flag officer position compensated at a 
     rate of pay for grade O-7 or above under section 201 of title 
     37, United States Code; or
       (2) serves or served as a program manager, deputy program 
     manager, procuring contracting officer, administrative 
     contracting officer, source selection authority, member of 
     the source selection evaluation board, or chief of a 
     financial or technical evaluation team for a contract in an 
     amount in excess of $10,000,000.
       (d) Definition.--In this section, the term ``post-
     employment restrictions'' includes--
       (1) section 27 of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 423);
       (2) section 207 of title 18, United States Code; and
       (3) any other statute or regulation restricting the 
     employment or activities of individuals who leave government 
     service in the Department of Defense.

     SEC. 848. REPORT ON CONTRACTOR ETHICS PROGRAMS OF MAJOR 
                   DEFENSE CONTRACTORS.

       (a) Report Required.--Not later than one year after the 
     date of the enactment of this Act, the Comptroller General of 
     the United States shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives a 
     report on the internal ethics programs of major defense 
     contractors.
       (b) Elements.--The report required by subsection (a) shall 
     address, at a minimum--
       (1) the extent to which major defense contractors have 
     internal ethics programs in place;
       (2) the extent to which the ethics programs described in 
     paragraph (1) include--
       (A) the availability of internal mechanisms, such as 
     hotlines, for contractor employees to report conduct that may 
     violate applicable requirements of law or regulation;
       (B) notification to contractor employees of the 
     availability of external mechanisms, such as the hotline of 
     the Inspector General of the Department of Defense, for the 
     reporting of conduct that may violate applicable requirements 
     of law or regulation;
       (C) notification to contractor employees of their right to 
     be free from reprisal for disclosing a substantial violation 
     of law related to a contract, in accordance with section 2409 
     of title 10, United States Code;
       (D) ethics training programs for contractor officers and 
     employees;
       (E) internal audit or review programs to identify and 
     address conduct that may violate applicable requirements of 
     law or regulation;
       (F) self-reporting requirements, under which contractors 
     report conduct that may violate applicable requirements of 
     law or regulation to appropriate government officials;
       (G) disciplinary action for contractor employees whose 
     conduct is determined to have violated applicable 
     requirements of law or regulation; and
       (H) appropriate management oversight to ensure the 
     successful implementation of such ethics programs;
       (3) the extent to which the Department of Defense monitors 
     or approves the ethics programs of major defense contractors; 
     and
       (4) the advantages and disadvantages of legislation 
     requiring that defense contractors develop internal ethics 
     programs and requiring that specific elements be included in 
     such ethics programs.
       (c) Access to Information.--In accordance with the contract 
     clause required pursuant to section 2313(c) of title 10, 
     United States Code, each major defense contractor shall 
     provide the Comptroller General access to information 
     requested by the Comptroller General that is within the scope 
     of the report required by this section.
       (d) Major Defense Contractor Defined.--In this section, the 
     term ``major defense contractor'' means any company that was 
     awarded contracts by the Department of Defense during fiscal 
     year 2006 in amounts totaling more than $500,000,000.

     SEC. 849. CONTINGENCY CONTRACTING TRAINING FOR PERSONNEL 
                   OUTSIDE THE ACQUISITION WORKFORCE AND 
                   EVALUATIONS OF ARMY COMMISSION RECOMMENDATIONS.

       (a) Training Requirement.--Section 2333 of title 10, United 
     States Code is amended--
       (1) by redesignating subsection (e) as subsection (f); and
       (2) by inserting after subsection (d) the following new 
     subsection (e):
       ``(e) Training for Personnel Outside Acquisition 
     Workforce.--(1) The joint policy for requirements definition, 
     contingency program management, and contingency contracting 
     required by subsection (a) shall provide for training of 
     military personnel outside the acquisition workforce 
     (including operational field commanders and officers 
     performing key staff functions for operational field 
     commanders) who are expected to have acquisition 
     responsibility, including oversight duties associated with 
     contracts or contractors, during combat operations, post-
     conflict operations, and contingency operations.
       ``(2) Training under paragraph (1) shall be sufficient to 
     ensure that the military personnel referred to in that 
     paragraph understand the scope and scale of contractor 
     support they will experience in contingency operations and 
     are prepared for their roles and responsibilities with regard 
     to requirements definition, program management (including 
     contractor oversight), and contingency contracting.
       ``(3) The joint policy shall also provide for the 
     incorporation of contractors and contract operations in 
     mission readiness exercises for operations that will include 
     contracting and contractor support.''.
       (b) Organizational Requirements.--
       (1) Evaluation by the secretary of defense.--The Secretary 
     of Defense, in consultation with the Chairman of the Joint 
     Chiefs of Staff, shall evaluate the recommendations included 
     in the report of the Commission on Army Acquisition and 
     Program Management in Expeditionary Operations and shall 
     determine the extent to which such recommendations are 
     applicable to the other Armed Forces. Not later than 120 days 
     after the date of the enactment of this Act, the Secretary of 
     Defense shall submit a report to the congressional defense 
     committees with the conclusions of this evaluation and a 
     description of the Secretary's plans for implementing the 
     Commission's recommendations for Armed Forces other than the 
     Army.
       (2) Evaluation by the secretary of the army.--The Secretary 
     of the Army, in consultation with the Chief of Staff of the 
     Army, shall evaluate the recommendations included in the 
     report of the Commission on Army Acquisition and Program 
     Management in Expeditionary Operations. Not later than 120 
     days after the date of the enactment of this Act, the 
     Secretary of the Army shall submit to the congressional 
     defense committees a report detailing the Secretary's plans 
     for implementation of the recommendations of the Commission. 
     The report shall include the following:
       (A) For each recommendation that has been implemented, or 
     that the Secretary plans to implement--
       (i) a summary of all actions that have been taken to 
     implement such recommendation; and
       (ii) a schedule, with specific milestones, for completing 
     the implementation of such recommendation.
       (B) For each recommendation that the Secretary has not 
     implemented and does not plan to implement--
       (i) the reasons for the decision not to implement such 
     recommendation; and
       (ii) a summary of any alternative actions the Secretary 
     plans to take to address the purposes underlying such 
     recommendation.
       (C) For each recommendation that would require legislation 
     to implement, the Secretary's recommendations regarding such 
     legislation.
       (c) Comptroller General Report.--Section 854(c) of the John 
     Warner National Defense Authorization Act for Fiscal Year 
     2007 (Public Law 109-364; 120 Stat. 2346) is amended by 
     adding at the end the following new paragraph:
       ``(3) Comptroller general report.--Not later than 180 days 
     after the date on which the Secretary of Defense submits the 
     final report required by paragraph (2), the Comptroller 
     General of the United States shall--
       ``(A) review the joint policies developed by the Secretary, 
     including the implementation of such policies; and
       ``(B) submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report on the 
     extent to which such policies, and the implementation of such 
     policies, comply with the requirements of section 2333 of 
     title 10, United States Code (as so amended).''.
              Subtitle E--Acquisition Workforce Provisions

     SEC. 851. REQUIREMENT FOR SECTION ON DEFENSE ACQUISITION 
                   WORKFORCE IN STRATEGIC HUMAN CAPITAL PLAN.

       (a) In General.--In the update of the strategic human 
     capital plan for 2008, and in each subsequent update, the 
     Secretary of Defense shall include a separate section focused 
     on the defense acquisition workforce, including both military 
     and civilian personnel.

[[Page 32587]]

       (b) Funding.--The section shall contain--
       (1) an identification of the funding programmed for defense 
     acquisition workforce improvements, including a specific 
     identification of funding provided in the Department of 
     Defense Acquisition Workforce Fund established under section 
     1705 of title 10, United States Code (as added by section 852 
     of this Act);
       (2) an identification of the funding programmed for defense 
     acquisition workforce training in the future-years defense 
     program, including a specific identification of funding 
     provided by the acquisition workforce training fund 
     established under section 37(h)(3) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 433(h)(3));
       (3) a description of how the funding identified pursuant to 
     paragraphs (1) and (2) will be implemented during the fiscal 
     year concerned to address the areas of need identified in 
     accordance with subsection (c);
       (4) a statement of whether the funding identified under 
     paragraphs (1) and (2) is being fully used; and
       (5) a description of any continuing shortfall in funding 
     available for the defense acquisition workforce.
       (c) Areas of Need.--The section also shall identify any 
     areas of need in the defense acquisition workforce, 
     including--
       (1) gaps in the skills and competencies of the current or 
     projected defense acquisition workforce;
       (2) changes to the types of skills needed in the current or 
     projected defense acquisition workforce;
       (3) incentives to retain in the defense acquisition 
     workforce qualified, experienced defense acquisition 
     workforce personnel; and
       (4) incentives for attracting new, high-quality personnel 
     to the defense acquisition workforce.
       (d) Strategic Human Capital Plan Defined.--In this section, 
     the term ``strategic human capital plan'' means the strategic 
     human capital plan required under section 1122 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3452; 10 U.S.C. prec. 1580 
     note).

     SEC. 852. DEPARTMENT OF DEFENSE ACQUISITION WORKFORCE 
                   DEVELOPMENT FUND.

       (a) In General.--
       (1) Establishment of fund.--Chapter 87 of title 10, United 
     States Code, is amended by inserting after section 1704 the 
     following new section:

     ``Sec. 1705. Department of Defense Acquisition Workforce 
       Development Fund

       ``(a) Establishment.--The Secretary of Defense shall 
     establish a fund to be known as the `Department of Defense 
     Acquisition Workforce Fund' (in this section referred to as 
     the `Fund') to provide funds, in addition to other funds that 
     may be available, for the recruitment, training, and 
     retention of acquisition personnel of the Department of 
     Defense.
       ``(b) Purpose.--The purpose of the Fund is to ensure that 
     the Department of Defense acquisition workforce has the 
     capacity, in both personnel and skills, needed to properly 
     perform its mission, provide appropriate oversight of 
     contractor performance, and ensure that the Department 
     receives the best value for the expenditure of public 
     resources.
       ``(c) Management.--The Fund shall be managed by a senior 
     official of the Department of Defense designated by the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics for that purpose, from among persons with an 
     extensive background in management relating to acquisition 
     and personnel.
       ``(d) Elements.--
       ``(1) In general.--The Fund shall consist of amounts as 
     follows:
       ``(A) Amounts credited to the Fund under paragraph (2).
       ``(B) Any other amounts appropriated to, credited to, or 
     deposited into the Fund by law.
       ``(2) Credits to the fund.--(A) There shall be credited to 
     the Fund an amount equal to the applicable percentage for a 
     fiscal year of all amounts expended by the Department of 
     Defense in such fiscal year for contract services, other than 
     services relating to research and development and services 
     relating to military construction.
       ``(B) Not later than 30 days after the end of the third 
     fiscal year quarter of fiscal year 2008, and 30 days after 
     the end of each fiscal year quarter thereafter, the head of 
     each military department and Defense Agency shall remit to 
     the Secretary of Defense an amount equal to the applicable 
     percentage for such fiscal year of the amount expended by 
     such military department or Defense Agency, as the case may 
     be, during such fiscal year quarter for services covered by 
     subparagraph (A). Any amount so remitted shall be credited to 
     the Fund under subparagraph (A).
       ``(C) For purposes of this paragraph, the applicable 
     percentage for a fiscal year is a percentage as follows:
       ``(i) For fiscal year 2008, 0.5 percent.
       ``(ii) For fiscal year 2009, 1 percent.
       ``(iii) For fiscal year 2010, 1.5 percent.
       ``(iv) For any fiscal year after fiscal year 2010, 2 
     percent.
       ``(D) The Secretary of Defense may reduce a percentage 
     established in subparagraph (C) for any fiscal year, if he 
     determines that the application of such percentage would 
     result in the crediting of an amount greater than is 
     reasonably needed for the purpose of the Fund. In no event 
     may the Secretary reduce a percentage for any fiscal year 
     below a percentage that results in the deposit in a fiscal 
     year of an amount equal to the following:
       ``(i) For fiscal year 2008, $300,000,000.
       ``(ii) For fiscal year 2009, $400,000,000.
       ``(iii) For fiscal year 2010, $500,000,000.
       ``(iv) For any fiscal year after fiscal year 2010, 
     $600,000,000.
       ``(e) Availability of Funds.--
       ``(1) In general.--Subject to the provisions of this 
     subsection, amounts in the Fund shall be available to the 
     Secretary of Defense for expenditure, or for transfer to a 
     military department or Defense Agency, for the recruitment, 
     training, and retention of acquisition personnel of the 
     Department of Defense for the purpose of the Fund, including 
     for the provision of training and retention incentives to the 
     acquisition workforce of the Department.
       ``(2) Prohibition.--Amounts in the Fund may not be 
     obligated for any purpose other than purposes described in 
     paragraph (1) or otherwise in accordance with this 
     subsection.
       ``(3) Guidance.--The Under Secretary of Defense for 
     Acquisition, Technology, and Logistics, acting through the 
     senior official designated to manage the Fund, shall issue 
     guidance for the administration of the Fund. Such guidance 
     shall include provisions--
       ``(A) identifying areas of need in the acquisition 
     workforce for which amounts in the Fund may be used, 
     including--
       ``(i) changes to the types of skills needed in the 
     acquisition workforce;
       ``(ii) incentives to retain in the acquisition workforce 
     qualified, experienced acquisition workforce personnel; and
       ``(iii) incentives for attracting new, high-quality 
     personnel to the acquisition workforce;
       ``(B) describing the manner and timing for applications for 
     amounts in the Fund to be submitted;
       ``(C) describing the evaluation criteria to be used for 
     approving or prioritizing applications for amounts in the 
     Fund in any fiscal year; and
       ``(D) describing measurable objectives of performance for 
     determining whether amounts in the Fund are being used in 
     compliance with this section.
       ``(4) Limitation on payments to or for contractors.--
     Amounts in the Fund shall not be available for payments to 
     contractors or contractor employees, other than for the 
     purpose of providing advanced training to Department of 
     Defense employees.
       ``(5) Prohibition on payment of base salary of current 
     employees.--Amounts in the Fund may not be used to pay the 
     base salary of any person who was an employee of the 
     Department as of the date of the enactment of the National 
     Defense Authorization Act for Fiscal Year 2008.
       ``(6) Duration of availability.--Amounts credited to the 
     Fund under subsection (d)(2) shall remain available for 
     expenditure in the fiscal year for which credited and the two 
     succeeding fiscal years.
       ``(f) Annual Report.--Not later than 60 days after the end 
     of each fiscal year beginning with fiscal year 2008, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the operation of the Fund 
     during such fiscal year. Each report shall include, for the 
     fiscal year covered by such report, the following:
       ``(1) A statement of the amounts remitted to the Secretary 
     for crediting to the Fund for such fiscal year by each 
     military department and Defense Agency, and a statement of 
     the amounts credited to the Fund for such fiscal year.
       ``(2) A description of the expenditures made from the Fund 
     (including expenditures following a transfer of amounts in 
     the Fund to a military department or Defense Agency) in such 
     fiscal year, including the purpose of such expenditures.
       ``(3) A description and assessment of improvements in the 
     Department of Defense acquisition workforce resulting from 
     such expenditures.
       ``(4) Recommendations for additional authorities to fulfill 
     the purpose of the Fund.
       ``(5) A statement of the balance remaining in the Fund at 
     the end of such fiscal year.
       ``(g) Acquisition Workforce Defined.--In this section, the 
     term `acquisition workforce' means personnel in positions 
     designated under section 1721 of this title as acquisition 
     positions for purposes of this chapter.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of subchapter I of such chapter is amended by 
     inserting after the item relating to section 1704 the 
     following new item:

``1705. Department of Defense Acquisition Workforce Development 
              Fund.''.

       (b) Effective Date.--Section 1705 of title 10, United 
     States Code, as added by subsection (a), shall take effect on 
     the date of the enactment of this Act.

     SEC. 853. EXTENSION OF AUTHORITY TO FILL SHORTAGE CATEGORY 
                   POSITIONS FOR CERTAIN FEDERAL ACQUISITION 
                   POSITIONS.

       Section 1413(b) of the National Defense Authorization Act 
     for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1665) is 
     amended by striking ``September 30, 2007'' and inserting 
     ``September 30, 2012''.

     SEC. 854. REPEAL OF SUNSET OF ACQUISITION WORKFORCE TRAINING 
                   FUND.

       Section 37(h)(3) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 433(h)(3)) is amended by striking 
     subparagraph (H).

     SEC. 855. FEDERAL ACQUISITION WORKFORCE IMPROVEMENTS.

       (a) Associate Administrator for Acquisition Workforce 
     Programs.--The Administrator for Federal Procurement Policy 
     shall designate a member of the Senior Executive Service

[[Page 32588]]

     as the Associate Administrator for Acquisition Workforce 
     Programs. The Associate Administrator for Acquisition 
     Workforce Programs shall be located in the Federal 
     Acquisition Institute (or its successor). The Associate 
     Administrator shall be responsible for--
       (1) supervising the acquisition workforce training fund 
     established under section 37(h)(3) of the Office of Federal 
     Procurement Policy Act (41 U. S. C. 433(h)(3));
       (2) developing, in coordination with Chief Acquisition 
     Officers and Chief Human Capital Officers, a strategic human 
     capital plan for the acquisition workforce of the Federal 
     Government;
       (3) reviewing and providing input to individual agency 
     acquisition workforce succession plans;
       (4) recommending to the Administrator and other senior 
     government officials appropriate programs, policies, and 
     practices to increase the quantity and quality of the Federal 
     acquisition workforce; and
       (5) carrying out such other functions as the Administrator 
     may assign.
       (b) Acquisition and Contracting Training Programs Within 
     Executive Agencies.--
       (1) Requirement.--The head of each executive agency, after 
     consultation with the Associate Administrator for Acquisition 
     Workforce Programs, shall establish and operate acquisition 
     and contracting training programs. Such programs shall--
       (A) have curricula covering a broad range of acquisition 
     and contracting disciplines corresponding to the specific 
     acquisition and contracting needs of the agency involved;
       (B) be developed and applied according to rigorous 
     standards; and
       (C) be designed to maximize efficiency, through the use of 
     self-paced courses, online courses, on-the-job training, and 
     the use of remote instructors, wherever such features can be 
     applied without reducing the effectiveness of the training or 
     negatively affecting academic standards.
       (2) Chief acquisition officer authorities and 
     responsibilities.--Subject to the authority, direction, and 
     control of the head of an executive agency, the Chief 
     Acquisition Officer for such agency shall carry out all 
     powers, functions, and duties of the head of the agency with 
     respect to implementation of this subsection. The Chief 
     Acquisition Officer shall ensure that the policies 
     established by the head of the agency in accordance with this 
     subsection are implemented throughout the agency.
       (c) Government-Wide Policies and Evaluation.--The 
     Administrator for Federal Procurement Policy shall issue 
     policies to promote the development of performance standards 
     for training and uniform implementation of this section by 
     executive agencies, with due regard for differences in 
     program requirements among agencies that may be appropriate 
     and warranted in view of the agency mission. The 
     Administrator shall evaluate the implementation of the 
     provisions of subsection (b) by executive agencies.
       (d) Acquisition and Contracting Training Reporting.--The 
     Administrator for Federal Procurement Policy shall ensure 
     that the heads of executive agencies collect and maintain 
     standardized information on the acquisition and contracting 
     workforce related to the implementation of subsection (b).
       (e) Acquisition Workforce Human Capital Succession Plan.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, each Chief Acquisition Officer for 
     an executive agency shall develop, in consultation with the 
     Chief Human Capital Officer for the agency and the Associate 
     Administrator for Acquisition Workforce Programs, a 
     succession plan consistent with the agency's strategic human 
     capital plan for the recruitment, development, and retention 
     of the agency's acquisition workforce, with a particular 
     focus on warranted contracting officers and program managers 
     of the agency.
       (2) Content of plan.--The acquisition workforce succession 
     plan shall address--
       (A) recruitment goals for personnel from procurement intern 
     programs;
       (B) the agency's acquisition workforce training needs;
       (C) actions to retain high performing acquisition 
     professionals who possess critical relevant skills;
       (D) recruitment goals for personnel from the Federal Career 
     Intern Program; and
       (E) recruitment goals for personnel from the Presidential 
     Management Fellows Program.
       (f) Training in the Acquisition of Architect and 
     Engineering Services.--The Administrator for Federal 
     Procurement Policy shall ensure that a sufficient number of 
     Federal employees are trained in the acquisition of architect 
     and engineering services.
       (g) Utilization of Recruitment and Retention Authorities.--
     The Administrator for Federal Procurement Policy, in 
     coordination with the Director of the Office of Personnel 
     Management, shall encourage executive agencies to utilize 
     existing authorities, including direct hire authority and 
     tuition assistance programs, to recruit and retain 
     acquisition personnel and consider recruiting acquisition 
     personnel who may be retiring from the private sector, 
     consistent with existing laws and regulations.
       (h) Definitions.--In this section:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning provided in section 4(1) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403(1)).
       (2) Chief acquisition officer.--The term ``Chief 
     Acquisition Officer'' means a Chief Acquisition Officer for 
     an executive agency appointed pursuant to section 16 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 414).
             Subtitle F--Contracts in Iraq and Afghanistan

     SEC. 861. MEMORANDUM OF UNDERSTANDING ON MATTERS RELATING TO 
                   CONTRACTING.

       (a) Memorandum of Understanding Required.--The Secretary of 
     Defense, the Secretary of State, and the Administrator of the 
     United States Agency for International Development shall, not 
     later than July 1, 2008, enter into a memorandum of 
     understanding regarding matters relating to contracting for 
     contracts in Iraq or Afghanistan.
       (b) Matters Covered.--The memorandum of understanding 
     required by subsection (a) shall address, at a minimum, the 
     following:
       (1) Identification of the major categories of contracts in 
     Iraq or Afghanistan being awarded by the Department of 
     Defense, the Department of State, or the United States Agency 
     for International Development.
       (2) Identification of the roles and responsibilities of 
     each department or agency for matters relating to contracting 
     for contracts in Iraq or Afghanistan.
       (3) Responsibility for establishing procedures for, and the 
     coordination of, movement of contractor personnel in Iraq or 
     Afghanistan.
       (4) Identification of common databases that will serve as 
     repositories of information on contracts in Iraq or 
     Afghanistan and contractor personnel in Iraq or Afghanistan, 
     including agreement on the elements to be included in the 
     databases, including, at a minimum--
       (A) with respect to each contract--
       (i) a brief description of the contract (to the extent 
     consistent with security considerations);
       (ii) the total value of the contract; and
       (iii) whether the contract was awarded competitively; and
       (B) with respect to contractor personnel--
       (i) the total number of personnel employed on contracts in 
     Iraq or Afghanistan;
       (ii) the total number of personnel performing security 
     functions under contracts in Iraq or Afghanistan; and
       (iii) the total number of personnel working under contracts 
     in Iraq or Afghanistan who have been killed or wounded.
       (5) Responsibility for maintaining and updating information 
     in the common databases identified under paragraph (4).
       (6) Responsibility for the collection and referral to the 
     appropriate Government agency of any information relating to 
     offenses under chapter 47 of title 10, United States Code 
     (the Uniform Code of Military Justice) or chapter 212 of 
     title 18, United States Code (commonly referred to as the 
     Military Extraterritorial Jurisdiction Act), including a 
     clarification of responsibilities under section 802(a)(10) of 
     title 10, United States Code (article 2(a) of the Uniform 
     Code of Military Justice), as amended by section 552 of the 
     John Warner National Defense Authorization Act for Fiscal 
     Year 2007 (Public Law 109-364).
       (c) Implementation of Memorandum of Understanding.--Not 
     later than 120 days after the memorandum of understanding 
     required by subsection (a) is signed, the Secretary of 
     Defense, the Secretary of State, and the Administrator of the 
     United States Agency for International Development shall 
     issue such policies or guidance and prescribe such 
     regulations as are necessary to implement the memorandum of 
     understanding for the relevant matters pertaining to their 
     respective agencies.
       (d) Copies Provided to Congress.--
       (1) Memorandum of understanding.--Copies of the memorandum 
     of understanding required by subsection (a) shall be provided 
     to the relevant committees of Congress within 30 days after 
     the memorandum is signed.
       (2) Report on implementation.--Not later than 180 days 
     after the memorandum of understanding required by subsection 
     (a) is signed, the Secretary of Defense, the Secretary of 
     State, and the Administrator of the United States Agency for 
     International Development shall each provide a report to the 
     relevant committees of Congress on the implementation of the 
     memorandum of understanding.
       (3) Databases.--The Secretary of Defense, the Secretary of 
     State, or the Administrator of the United States Agency for 
     International Development shall provide access to the common 
     databases identified under subsection (b)(4) to the relevant 
     committees of Congress.
       (4) Contracts.--Effective on the date of the enactment of 
     this Act, copies of any contracts in Iraq or Afghanistan 
     awarded after December 1, 2007, shall be provided to any of 
     the relevant committees of Congress within 15 days after the 
     submission of a request for such contract or contracts from 
     such committee to the department or agency managing the 
     contract.

     SEC. 862. CONTRACTORS PERFORMING PRIVATE SECURITY FUNCTIONS 
                   IN AREAS OF COMBAT OPERATIONS.

       (a) Regulations on Contractors Performing Private Security 
     Functions.--
       (1) In general.--Not later than 120 days after the date of 
     the enactment of this Act, the Secretary of Defense, in 
     coordination with the Secretary of State, shall prescribe 
     regulations on the selection, training, equipping, and 
     conduct of personnel performing private security functions 
     under a covered contract in an area of combat operations.
       (2) Elements.--The regulations prescribed under subsection 
     (a) shall, at a minimum, establish--
       (A) a process for registering, processing, accounting for, 
     and keeping appropriate records of

[[Page 32589]]

     personnel performing private security functions in an area of 
     combat operations;
       (B) a process for authorizing and accounting for weapons to 
     be carried by, or available to be used by, personnel 
     performing private security functions in an area of combat 
     operations;
       (C) a process for the registration and identification of 
     armored vehicles, helicopters, and other military vehicles 
     operated by contractors performing private security functions 
     in an area of combat operations;
       (D) a process under which contractors are required to 
     report all incidents, and persons other than contractors are 
     permitted to report incidents, in which--
       (i) a weapon is discharged by personnel performing private 
     security functions in an area of combat operations;
       (ii) personnel performing private security functions in an 
     area of combat operations are killed or injured; or
       (iii) persons are killed or injured, or property is 
     destroyed, as a result of conduct by contractor personnel;
       (E) a process for the independent review and, if 
     practicable, investigation of--
       (i) incidents reported pursuant to subparagraph (D); and
       (ii) incidents of alleged misconduct by personnel 
     performing private security functions in an area of combat 
     operations;
       (F) requirements for qualification, training, screening 
     (including, if practicable, through background checks), and 
     security for personnel performing private security functions 
     in an area of combat operations;
       (G) guidance to the commanders of the combatant commands on 
     the issuance of--
       (i) orders, directives, and instructions to contractors 
     performing private security functions relating to equipment, 
     force protection, security, health, safety, or relations and 
     interaction with locals;
       (ii) predeployment training requirements for personnel 
     performing private security functions in an area of combat 
     operations, addressing the requirements of this section, 
     resources and assistance available to contractor personnel, 
     country information and cultural training, and guidance on 
     working with host country nationals and military; and
       (iii) rules on the use of force for personnel performing 
     private security functions in an area of combat operations;
       (H) a process by which a commander of a combatant command 
     may request an action described in subsection (b)(3); and
       (I) a process by which the training requirements referred 
     to in subparagraph (G)(ii) shall be implemented.
       (3) Availability of orders, directives, and instructions.--
     The regulations prescribed under subsection (a) shall include 
     mechanisms to ensure the provision and availability of the 
     orders, directives, and instructions referred to in paragraph 
     (2)(G)(i) to contractors referred to in that paragraph, 
     including through the maintenance of a single location 
     (including an Internet website, to the extent consistent with 
     security considerations) at or through which such contractors 
     may access such orders, directives, and instructions.
       (b) Contract Clause on Contractors Performing Private 
     Security Functions.--
       (1) Requirement under far.--Not later than 180 days after 
     the date of the enactment of this Act, the Federal 
     Acquisition Regulation issued in accordance with section 25 
     of the Office of Federal Procurement Policy Act (41 U.S.C. 
     421) shall be revised to require the insertion into each 
     covered contract (or, in the case of a task order, the 
     contract under which the task order is issued) of a contract 
     clause addressing the selection, training, equipping, and 
     conduct of personnel performing private security functions 
     under such contract.
       (2) Clause requirement.--The contract clause required by 
     paragraph (1) shall require, at a minimum, that the 
     contractor concerned shall--
       (A) comply with regulations prescribed under subsection 
     (a), including any revisions or updates to such regulations, 
     and follow the procedures established in such regulations 
     for--
       (i) registering, processing, accounting for, and keeping 
     appropriate records of personnel performing private security 
     functions in an area of combat operations;
       (ii) authorizing and accounting of weapons to be carried 
     by, or available to be used by, personnel performing private 
     security functions in an area of combat operations;
       (iii) registration and identification of armored vehicles, 
     helicopters, and other military vehicles operated by 
     contractors and subcontractors performing private security 
     functions in an area of combat operations; and
       (iv) the reporting of incidents in which--

       (I) a weapon is discharged by personnel performing private 
     security functions in an area of combat operations;
       (II) personnel performing private security functions in an 
     area of combat operations are killed or injured; or
       (III) persons are killed or injured, or property is 
     destroyed, as a result of conduct by contractor personnel;

       (B) ensure that all personnel performing private security 
     functions under such contract are briefed on and understand 
     their obligation to comply with--
       (i) qualification, training, screening (including, if 
     practicable, through background checks), and security 
     requirements established by the Secretary of Defense for 
     personnel performing private security functions in an area of 
     combat operations;
       (ii) applicable laws and regulations of the United States 
     and the host country, and applicable treaties and 
     international agreements, regarding the performance of the 
     functions of the contractor;
       (iii) orders, directives, and instructions issued by the 
     applicable commander of a combatant command relating to 
     equipment, force protection, security, health, safety, or 
     relations and interaction with locals; and
       (iv) rules on the use of force issued by the applicable 
     commander of a combatant command for personnel performing 
     private security functions in an area of combat operations; 
     and
       (C) cooperate with any investigation conducted by the 
     Department of Defense pursuant to subsection (a)(2)(E) by 
     providing access to employees of the contractor and relevant 
     information in the possession of the contractor regarding the 
     incident concerned.
       (3) Noncompliance of personnel with clause.--The 
     contracting officer for a covered contract may direct the 
     contractor, at its own expense, to remove or replace any 
     personnel performing private security functions in an area of 
     combat operations who violate or fail to comply with 
     applicable requirements of the clause required by this 
     subsection. If the violation or failure to comply is a gross 
     violation or failure or is repeated, the contract may be 
     terminated for default.
       (4) Applicability.--The contract clause required by this 
     subsection shall be included in all covered contracts awarded 
     on or after the date that is 180 days after the date of the 
     enactment of this Act. Federal agencies shall make best 
     efforts to provide for the inclusion of the contract clause 
     required by this subsection in covered contracts awarded 
     before such date.
       (5) Inspector general report on pilot program on imposition 
     of fines for noncompliance of personnel with clause.--Not 
     later than March 30, 2008, the Inspector General of the 
     Department of Defense shall submit to Congress a report 
     assessing the feasibility and advisability of carrying out a 
     pilot program for the imposition of fines on contractors for 
     personnel who violate or fail to comply with applicable 
     requirements of the clause required by this section as a 
     mechanism for enhancing the compliance of such personnel with 
     the clause. The report shall include--
       (A) an assessment of the feasibility and advisability of 
     carrying out the pilot program; and
       (B) if the Inspector General determines that carrying out 
     the pilot program is feasible and advisable--
       (i) recommendations on the range of contracts and 
     subcontracts to which the pilot program should apply; and
       (ii) a schedule of fines to be imposed under the pilot 
     program for various types of personnel actions or failures.
       (c) Areas of Combat Operations.--
       (1) Designation.--The Secretary of Defense shall designate 
     the areas constituting an area of combat operations for 
     purposes of this section by not later than 120 days after the 
     date of the enactment of this Act.
       (2) Particular areas.--Iraq and Afghanistan shall be 
     included in the areas designated as an area of combat 
     operations under paragraph (1).
       (3) Additional areas.--The Secretary may designate any 
     additional area as an area constituting an area of combat 
     operations for purposes of this section if the Secretary 
     determines that the presence or potential of combat 
     operations in such area warrants designation of such area as 
     an area of combat operations for purposes of this section.
       (4) Modification or elimination of designation.--The 
     Secretary may modify or cease the designation of an area 
     under this subsection as an area of combat operations if the 
     Secretary determines that combat operations are no longer 
     ongoing in such area.
       (d) Exception.--The requirements of this section shall not 
     apply to contracts entered into by elements of the 
     intelligence community in support of intelligence activities.

     SEC. 863. COMPTROLLER GENERAL REVIEWS AND REPORTS ON 
                   CONTRACTING IN IRAQ AND AFGHANISTAN.

       (a) Reviews and Reports Required.--
       (1) In general.--Every 12 months, the Comptroller General 
     shall review contracts in Iraq or Afghanistan and submit to 
     the relevant committees of Congress a report on such review.
       (2) Matters covered.--A report under this subsection shall 
     cover the following with respect to the contracts in Iraq or 
     Afghanistan reviewed for the report:
       (A) Total number of contracts and task orders awarded 
     during the period covered by the report.
       (B) Total number of active contracts and task orders.
       (C) Total value of all contracts and task orders awarded 
     during the reporting period.
       (D) Total value of active contracts and task orders.
       (E) The extent to which such contracts have used 
     competitive procedures.
       (F) Total number of contractor personnel working on 
     contracts during the reporting period.
       (G) Total number of contractor personnel, on average, who 
     are performing security functions during the reporting 
     period.
       (H) The number of contractor personnel killed or wounded 
     during the reporting period.
       (I) Information on any specific contract or class of 
     contracts that the Comptroller General determines raises 
     issues of significant concern.
       (3) Submission of reports.--The Comptroller General shall 
     submit an initial report under this

[[Page 32590]]

     subsection not later than October 1, 2008, and shall submit 
     an updated report every year thereafter until October 1, 
     2010.
       (b) Access to Databases on Contracts.--The Secretary of 
     Defense and the Secretary of State shall provide full access 
     to the databases described in section 861(b)(4) to the 
     Comptroller General for purposes of the reviews carried out 
     under this section.

     SEC. 864. DEFINITIONS AND OTHER GENERAL PROVISIONS.

       (a) Definitions.--In this subtitle:
       (1) Matters relating to contracting.--The term ``matters 
     relating to contracting'', with respect to contracts in Iraq 
     and Afghanistan, means all matters relating to awarding, 
     funding, managing, tracking, monitoring, and providing 
     oversight to contracts and contractor personnel.
       (2) Contract in iraq or afghanistan.--The term ``contract 
     in Iraq or Afghanistan'' means a contract with the Department 
     of Defense, the Department of State, or the United States 
     Agency for International Development, a subcontract at any 
     tier issued under such a contract, or a task order or 
     delivery order at any tier issued under such a contract 
     (including a contract, subcontract, or task order or delivery 
     order issued by another Government agency for the Department 
     of Defense, the Department of State, or the United States 
     Agency for International Development), if the contract, 
     subcontract, or task order or delivery order involves worked 
     performed in Iraq or Afghanistan for a period longer than 14 
     days.
       (3) Covered contract.--The term ``covered contract'' 
     means--
       (A) a contract of a Federal agency for the performance of 
     services in an area of combat operations, as designated by 
     the Secretary of Defense under subsection (c) of section 862;
       (B) a subcontract at any tier under such a contract; or
       (C) a task order or delivery order issued under such a 
     contract or subcontract.
       (4) Contractor.--The term ``contractor'', with respect to a 
     covered contract, means the contractor or subcontractor 
     carrying out the covered contract.
       (5) Private security functions.--The term ``private 
     security functions'' means activities engaged in by a 
     contractor under a covered contract as follows:
       (A) Guarding of personnel, facilities, or property of a 
     Federal agency, the contractor or subcontractor, or a third 
     party.
       (B) Any other activity for which personnel are required to 
     carry weapons in the performance of their duties.
       (6) Relevant committees of congress.--The term ``relevant 
     committees of Congress'' means each of the following 
     committees:
       (A) The Committees on Armed Services of the Senate and the 
     House of Representatives.
       (B) The Committee on Homeland Security and Governmental 
     Affairs of the Senate and the Committee on Oversight and 
     Government Reform of the House of Representatives.
       (C) The Committee on Foreign Relations of the Senate and 
     the Committee on Foreign Affairs of the House of 
     Representatives.
       (D) For purposes of contracts relating to the National 
     Foreign Intelligence Program, the Select Committee on 
     Intelligence of the Senate and the Permanent Select Committee 
     on Intelligence of the House of Representatives.
       (b) Classified Information.--Nothing in this subtitle shall 
     be interpreted to require the handling of classified 
     information or information relating to intelligence sources 
     and methods in a manner inconsistent with any law, 
     regulation, executive order, or rule of the House of 
     Representatives or of the Senate relating to the handling or 
     protection of such information.
              Subtitle G--Defense Materiel Readiness Board

     SEC. 871. ESTABLISHMENT OF DEFENSE MATERIEL READINESS BOARD.

       (a) Establishment.--Not later than six months after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall establish a Defense Materiel Readiness Board (in this 
     subtitle referred to as the ``Board'') within the Office of 
     the Secretary of Defense.
       (b) Membership.--The Secretary shall appoint the chairman 
     and the members of the Board from among officers of the Armed 
     Forces with expertise in matters relevant to the function of 
     the Board to assess materiel readiness and evaluate plans and 
     policies relating to materiel readiness. At a minimum, the 
     Board shall include representatives of the Joint Chiefs of 
     Staff, each of the Armed Forces, and each of the reserve 
     components of the Armed Forces.
       (c) Staff.--The Secretary of Defense shall assign staff, 
     and request the Secretaries of the military departments to 
     assign staff, as necessary to assist the Board in carrying 
     out its duties.
       (d) Functions.--The Board shall provide independent 
     assessments of materiel readiness, material readiness 
     shortfalls, and material readiness plans to the Secretary of 
     Defense and the Congress. To carry out such functions, the 
     Board shall--
       (1) monitor and assess the materiel readiness of the Armed 
     Forces;
       (2) assist the Secretary of Defense in the identification 
     of deficiencies in the material readiness of the Armed Forces 
     caused by shortfalls in weapons systems, equipment, and 
     supplies;
       (3) identify shortfalls in materiel readiness, including 
     critical materiel readiness shortfalls, for purposes of the 
     Secretary's designations under section 872 and the funding 
     needed to address such shortfalls;
       (4) assess the adequacy of current Department of Defense 
     plans, policies, and programs to address shortfalls in 
     materiel readiness, including critical materiel readiness 
     shortfalls (as designated by the Secretary under section 
     872), and to sustain and improve materiel readiness;
       (5) assist the Secretary of Defense in determining whether 
     the industrial capacity of the Department of Defense and of 
     the defense industrial base is being best utilized to support 
     the materiel readiness needs of the Armed Forces;
       (6) review and assess Department of Defense systems for 
     measuring the status of current materiel readiness of the 
     Armed Forces; and
       (7) make recommendations with respect to materiel readiness 
     funding, measurement techniques, plans, policies, and 
     programs.
       (e) Reports.--The Board shall submit to the Secretary of 
     Defense a report summarizing its findings and recommendations 
     not less than once every six months. Within 30 days after 
     receiving a report from the Board, the Secretary shall 
     forward the report in its entirety, together with his 
     comments, to the congressional defense committees. The report 
     shall be submitted in unclassified form. To the extent 
     necessary, the report may be accompanied by a classified 
     annex.

     SEC. 872. CRITICAL MATERIEL READINESS SHORTFALLS.

        (a) Designation of Critical Materiel Readiness 
     Shortfalls.--
       (1) Designation.--The Secretary of Defense may designate 
     any requirement of the Armed Forces for equipment or supplies 
     as a critical materiel readiness shortfall if there is a 
     shortfall in the required equipment or supplies that 
     materially reduces readiness of the Armed Forces and that--
       (A) cannot be adequately addressed by identifying 
     acceptable substitute capabilities or cross leveling of 
     equipment that does not unacceptably reduce the readiness of 
     other Armed Forces; and
       (B) that is likely to persist for more than two years based 
     on currently projected budgets and schedules for deliveries 
     of equipment and supplies.
       (2) Consideration of board findings and recommendations.--
     In making any such designation, the Secretary shall take into 
     consideration the findings and recommendations of the Defense 
     Materiel Readiness Board.
       (b) Measures To Address Critical Materiel Readiness 
     Shortfalls.--The Secretary of Defense shall ensure that 
     critical materiel readiness shortfalls designated pursuant to 
     subsection (a)(1) are transmitted to the relevant officials 
     of the Department of Defense responsible for requirements, 
     budgets, and acquisition, and that such officials prioritize 
     and address such shortfalls in the shortest time frame 
     practicable.
       (c) Transfer Authority.--
       (1) In general.--The amounts of authorizations that the 
     Secretary may transfer under the authority of section 1001 of 
     this Act is hereby increased by $2,000,000,000.
       (2) Limitations.--The additional transfer authority 
     provided by this section--
       (A) may be made only from authorizations to the Department 
     of Defense for fiscal year 2008;
       (B) may be exercised solely for the purpose of addressing 
     critical materiel readiness shortfalls as designated by the 
     Secretary of Defense under subsection (a); and
       (C) is subject to the same terms, conditions, and 
     procedures as other transfer authority under section 1001 of 
     this Act.
       (d) Strategic Readiness Fund.--
       (1) Establishment.--There is established on the books of 
     the Treasury a fund to be known as the Department of Defense 
     Strategic Readiness Fund (in this subsection referred to as 
     the ``Fund''), which shall be administered by the Secretary 
     of the Treasury.
       (2) Purposes.--The Fund shall be used to address critical 
     materiel readiness shortfalls as designated by the Secretary 
     of Defense under subsection (a).
       (3) Assets of fund.--There shall be deposited into the Fund 
     any amount appropriated to the Fund, which shall constitute 
     the assets of the Fund.
       (4) Limitation.--The procurement unit cost (as defined in 
     section 2432(a) of title 10, United States Code) of any item 
     purchased using assets of the Fund, whether such assets are 
     in the Fund or after such assets have been transferred from 
     the Fund using the authority provided in subsection (c), 
     shall not exceed $30,000,000.
       (e) Multiyear Contract Notification.--
       (1) Notification.--If the Secretary of a military 
     department makes the determination described in paragraph (2) 
     with respect to the use of a multiyear contract, the 
     Secretary shall notify the congressional defense committees 
     within 30 days of the determination and provide a detailed 
     description of the proposed multiyear contract.
       (2) Determination.--The determination referred to in 
     paragraph (1) is a determination by the Secretary of a 
     military department that the use of a multiyear contract to 
     procure an item to address a critical materiel readiness 
     shortfall--
       (A) will significantly accelerate efforts to address a 
     critical materiel readiness shortfall;
       (B) will provide savings compared to the total anticipated 
     costs of carrying out the contract through annual contracts; 
     and
       (C) will serve the interest of national security.
       (f) Definition.--In this section, the term ``critical 
     materiel readiness shortfall'' means a critical materiel 
     readiness shortfall designated by the Secretary of Defense 
     under this section.

[[Page 32591]]


                       Subtitle H--Other Matters

     SEC. 881. CLEARINGHOUSE FOR RAPID IDENTIFICATION AND 
                   DISSEMINATION OF COMMERCIAL INFORMATION 
                   TECHNOLOGIES.

       (a) Requirement To Establish Clearinghouse.--Not later than 
     180 days after the date of the enactment of this Act, the 
     Secretary of Defense, acting through the Assistant Secretary 
     of Defense for Networks and Information Integration, shall 
     establish a clearinghouse for identifying, assessing, and 
     disseminating knowledge about readily available information 
     technologies (with an emphasis on commercial off-the-shelf 
     information technologies) that could support the warfighting 
     mission of the Department of Defense.
       (b) Responsibilities.--The clearinghouse established 
     pursuant to subsection (a) shall be responsible for the 
     following:
       (1) Developing a process to rapidly assess and set 
     priorities and needs for significant information technology 
     needs of the Department of Defense that could be met by 
     commercial technologies, including a process for--
       (A) aligning priorities and needs with the requirements of 
     the commanders of the combatant command; and
       (B) proposing recommendations to the commanders of the 
     combatant command of feasible technical solutions for further 
     evaluation.
       (2) Identifying and assessing emerging commercial 
     technologies (including commercial off-the-shelf 
     technologies) that could support the warfighting mission of 
     the Department of Defense, including the priorities and needs 
     identified pursuant to paragraph (1).
       (3) Disseminating information about commercial technologies 
     identified pursuant to paragraph (2) to commanders of 
     combatant commands and other potential users of such 
     technologies.
       (4) Identifying gaps in commercial technologies and working 
     to stimulate investment in research and development in the 
     public and private sectors to address those gaps.
       (5) Enhancing internal data and communications systems of 
     the Department of Defense for sharing and retaining 
     information regarding commercial technology priorities and 
     needs, technologies available to meet such priorities and 
     needs, and ongoing research and development directed toward 
     gaps in such technologies.
       (6) Developing mechanisms, including web-based mechanisms, 
     to facilitate communications with industry regarding the 
     priorities and needs of the Department of Defense identified 
     pursuant to paragraph (1) and commercial technologies 
     available to address such priorities and needs.
       (7) Assisting in the development of guides to help small 
     information technology companies with promising technologies 
     to understand and navigate the funding and acquisition 
     processes of the Department of Defense.
       (8) Developing methods to measure how well processes 
     developed by the clearinghouse are being utilized and to 
     collect data on an ongoing basis to assess the benefits of 
     commercial technologies that are procured on the 
     recommendation of the clearinghouse.
       (c) Personnel.--The Secretary of Defense, acting through 
     the Assistant Secretary of Defense for Networks and 
     Information Integration, shall provide for the hiring and 
     support of employees (including detailees from other 
     components of the Department of Defense and from other 
     Federal departments or agencies) to assist in identifying, 
     assessing, and disseminating information regarding commercial 
     technologies under this section.
       (d) Report to Congress.--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 implementation of this section.

     SEC. 882. AUTHORITY TO LICENSE CERTAIN MILITARY DESIGNATIONS 
                   AND LIKENESSES OF WEAPONS SYSTEMS TO TOY AND 
                   HOBBY MANUFACTURERS.

       (a) Authority To License Certain Items.--Section 2260 of 
     title 10, United States Code, is amended--
       (1) by redesignating subsections (c), (d), and (e) as 
     subsections (d), (e), and (f), respectively; and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Licenses for Qualifying Companies.--(1) The Secretary 
     concerned may license trademarks, service marks, 
     certification marks, and collective marks owned or controlled 
     by the Secretary relating to military designations and 
     likenesses of military weapons systems to any qualifying 
     company upon receipt of a request from the company.
       ``(2) For purposes of paragraph (1), a qualifying company 
     is any United States company that--
       ``(A) is a toy or hobby manufacturer; and
       ``(B) is determined by the Secretary concerned to be 
     qualified in accordance with such criteria as determined 
     appropriate by the Secretary of Defense.
       ``(3) The fee for a license under this subsection shall not 
     exceed by more than a nominal amount the amount needed to 
     recover all costs of the Department of Defense in processing 
     the request for the license and supplying the license.
       ``(4) A license to a qualifying company under this 
     subsection shall provide that the license may not be 
     transferred, sold, or relicensed by the qualifying company.
       ``(5) A license under this subsection shall not be an 
     exclusive license.''.
       (b) Effective Date.--The Secretary of Defense shall 
     prescribe regulations to implement the amendment made by this 
     section not later than 180 days after the date of the 
     enactment of this Act.

     SEC. 883. MODIFICATIONS TO LIMITATION ON CONTRACTS TO ACQUIRE 
                   MILITARY FLIGHT SIMULATOR.

       (a) Effect on Existing Contracts.--Section 832 of the John 
     Warner National Defense Authorization Act for Fiscal Year 
     2007 (Public Law 109-364; 120 Stat. 2331) is amended by 
     adding at the end the following new subsection:
       ``(e) Effect on Existing Contracts.--The limitation in 
     subsection (a) does not apply to any service contract of a 
     military department to acquire a military flight simulator, 
     or to any renewal or extension of, or follow-on contract to, 
     such a contract, if--
       ``(1) the contract was in effect as of October 17, 2006;
       ``(2) the number of flight simulators to be acquired under 
     the contract (or renewal, extension, or follow-on) will not 
     result in the total number of flight simulators acquired by 
     the military department concerned through service contracts 
     to exceed the total number of flight simulators to be 
     acquired under all service contracts of such department for 
     such simulators in effect as of October 17, 2006; and
       ``(3) in the case of a renewal or extension of, or follow-
     on contract to, the contract, the Secretary of the military 
     department concerned provides to the congressional defense 
     committees a written notice of the decision to exercise an 
     option to renew or extend the contract, or to issue a 
     solicitation for bids or proposals using competitive 
     procedures for a follow-on contract, and an economic analysis 
     as described in subsection (c) supporting the decision, at 
     least 30 days before carrying out such decision.''.
       (b) Change in Grounds for Waiver.--Section 832(c)(1) of 
     such Act, as redesignated by subsection (a), is amend by 
     striking ``necessary for national security purposes'' and 
     inserting ``in the national interest''.

     SEC. 884. REQUIREMENTS RELATING TO WAIVERS OF CERTAIN 
                   DOMESTIC SOURCE LIMITATIONS RELATING TO 
                   SPECIALTY METALS.

       (a) Notice Requirement.--At least 30 days prior to making a 
     domestic nonavailability determination pursuant to section 
     2533b(b) of title 10, United States Code, that would apply to 
     more than one contract of the Department of Defense, the 
     Secretary of Defense shall, to the maximum extent practicable 
     and in a manner consistent with the protection of national 
     security information and confidential business information--
       (1) publish a notice on the website maintained by the 
     General Services Administration known as FedBizOpps.gov (or 
     any successor site) of the Secretary's intent to make the 
     domestic nonavailability determination; and
       (2) solicit information relevant to such notice from 
     interested parties, including producers of specialty metal 
     mill products.
       (b) Determination.--(1) The Secretary shall take into 
     consideration all information submitted pursuant to 
     subsection (a) in making a domestic nonavailability 
     determination pursuant to section 2533b(b) of title 10, 
     United States Code, that would apply to more than one 
     contract of the Department of Defense, and may also consider 
     other relevant information that cannot be made part of the 
     public record consistent with the protection of national 
     security information and confidential business information.
       (2) The Secretary shall ensure that any such determination 
     and the rationale for such determination is made publicly 
     available to the maximum extent consistent with the 
     protection of national security information and confidential 
     business information.

     SEC. 885. TELEPHONE SERVICES FOR MILITARY PERSONNEL SERVING 
                   IN COMBAT ZONES.

       (a) Competitive Procedures Required.--
       (1) Requirement.--When the Secretary of Defense considers 
     it necessary to provide morale, welfare, and recreation 
     telephone services for military personnel serving in combat 
     zones, the Secretary shall use competitive procedures when 
     entering into a contract to provide those services.
       (2) Review and determination.--Before soliciting bids or 
     proposals for new contracts, or considering extensions to 
     existing contracts, to provide morale, welfare, and 
     recreation telephone services for military personnel serving 
     in combat zones, the Secretary shall review and determine 
     whether it is in the best interest of the Department to 
     require bids or proposals, or adjustments for the purpose of 
     extending a contract, to include options that minimize the 
     cost of the telephone services to individual users while 
     providing individual users the flexibility of using phone 
     cards from other than the prospective contractor. The 
     Secretary shall submit the results of this review and 
     determination to the Committees on Armed Services of the 
     Senate and the House of Representatives.
       (b) Effective Date.--
       (1) Requirement.--Subsection (a)(1) shall apply to any new 
     contract to provide morale, welfare, and recreation telephone 
     services for military personnel serving in combat zones that 
     is entered into after the date of the enactment of this Act.
       (2) Review and determination.--Subsection (a)(2) shall 
     apply to any new contract or extension to an existing 
     contract to provide morale, welfare, and recreation telephone 
     services for military personnel serving in combat zones that 
     is entered into or agreed upon after the date of the 
     enactment of this Act.

[[Page 32592]]



     SEC. 886. ENHANCED AUTHORITY TO ACQUIRE PRODUCTS AND SERVICES 
                   PRODUCED IN IRAQ AND AFGHANISTAN.

       (a) In General.--In the case of a product or service to be 
     acquired in support of military operations or stability 
     operations in Iraq or Afghanistan (including security, 
     transition, reconstruction, and humanitarian relief 
     activities) for which the Secretary of Defense makes a 
     determination described in subsection (b), the Secretary may 
     conduct a procurement in which--
       (1) competition is limited to products or services that are 
     from Iraq or Afghanistan;
       (2) procedures other than competitive procedures are used 
     to award a contract to a particular source or sources from 
     Iraq or Afghanistan; or
       (3) a preference is provided for products or services that 
     are from Iraq or Afghanistan.
       (b) Determination.--A determination described in this 
     subsection is a determination by the Secretary that--
       (1) the product or service concerned is to be used only by 
     the military forces, police, or other security personnel of 
     Iraq or Afghanistan; or
       (2) it is in the national security interest of the United 
     States to limit competition, use procedures other than 
     competitive procedures, or provide a preference as described 
     in subsection (a) because--
       (A) such limitation, procedure, or preference is necessary 
     to provide a stable source of jobs in Iraq or Afghanistan; 
     and
       (B) such limitation, procedure, or preference will not 
     adversely affect--
       (i) military operations or stability operations in Iraq or 
     Afghanistan; or
       (ii) the United States industrial base.
       (c) Products, Services, and Sources From Iraq or 
     Afghanistan.--For the purposes of this section:
       (1) A product is from Iraq or Afghanistan if it is mined, 
     produced, or manufactured in Iraq or Afghanistan.
       (2) A service is from Iraq or Afghanistan if it is 
     performed in Iraq or Afghanistan by citizens or permanent 
     resident aliens of Iraq or Afghanistan.
       (3) A source is from Iraq or Afghanistan if it--
       (A) is located in Iraq or Afghanistan; and
       (B) offers products or services that are from Iraq or 
     Afghanistan.

     SEC. 887. DEFENSE SCIENCE BOARD REVIEW OF DEPARTMENT OF 
                   DEFENSE POLICIES AND PROCEDURES FOR THE 
                   ACQUISITION OF INFORMATION TECHNOLOGY.

       (a) Review Required.--Not later than 90 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     direct the Defense Science Board to carry out a review of 
     Department of Defense policies and procedures for the 
     acquisition of information technology.
       (b) Matters To Be Addressed.--The matters addressed by the 
     review required by subsection (a) shall include the 
     following:
       (1) Department of Defense policies and procedures for 
     acquiring national security systems, business information 
     systems, and other information technology.
       (2) The roles and responsibilities in implementing such 
     policies and procedures of--
       (A) the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics;
       (B) the Chief Information Officer of the Department of 
     Defense;
       (C) the Director of the Business Transformation Agency;
       (D) the service acquisition executives;
       (E) the chief information officers of the military 
     departments;
       (F) Defense Agency acquisition officials;
       (G) the information officers of the Defense Agencies; and
       (H) the Director of Operational Test and Evaluation and the 
     heads of the operational test organizations of the military 
     departments and the Defense Agencies.
       (3) The application of such policies and procedures to 
     information technologies that are an integral part of weapons 
     or weapon systems.
       (4) The requirements of subtitle III of title 40, United 
     States Code, and chapter 35 of title 44, United States Code, 
     regarding performance-based and results-based management, 
     capital planning, and investment control in the acquisition 
     of information technology.
       (5) Department of Defense policies and procedures for 
     maximizing the usage of commercial information technology 
     while ensuring the security of the microelectronics, 
     software, and networks of the Department.
       (6) The suitability of Department of Defense acquisition 
     regulations, including Department of Defense Directive 5000.1 
     and the accompanying milestones, to the acquisition of 
     information technology systems.
       (7) The adequacy and transparency of metrics used by the 
     Department of Defense for the acquisition of information 
     technology systems.
       (8) The effectiveness of existing statutory and regulatory 
     reporting requirements for the acquisition of information 
     technology systems.
       (9) The adequacy of operational and development test 
     resources (including infrastructure and personnel), policies, 
     and procedures to ensure appropriate testing of information 
     technology systems both during development and before 
     operational use.
       (10) The appropriate policies and procedures for technology 
     assessment, development, and operational testing for purposes 
     of the adoption of commercial technologies into information 
     technology systems.
       (c) Report Required.--Not later than one year after the 
     date of enactment of this Act, the Secretary shall submit to 
     the congressional defense committees a report on the results 
     of the review required by subsection (a). The report shall 
     include the findings and recommendations of the Defense 
     Science Board pursuant to the review, including such 
     recommendations for legislative or administrative action as 
     the Board considers appropriate, together with any comments 
     the Secretary considers appropriate.

     SEC. 888. GREEN PROCUREMENT POLICY.

       (a) Sense of Congress.--It is the sense of Congress that 
     the Department of Defense should establish a system to 
     document and track the use of environmentally preferable 
     products and services.
       (b) 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 on a plan to increase the usage of 
     environmentally friendly products that minimize potential 
     impacts to human health and the environment at all Department 
     of Defense facilities inside and outside the United States, 
     including through the direct purchase of products and the 
     purchase of products by facility maintenance contractors. The 
     report shall also cover consideration of the budgetary impact 
     of implementation of the plan.

     SEC. 889. COMPTROLLER GENERAL REVIEW OF USE OF AUTHORITY 
                   UNDER THE DEFENSE PRODUCTION ACT OF 1950.

       (a) Thorough Review Required.--The Comptroller General of 
     the United States (in this section referred to as the 
     ``Comptroller'') shall conduct a thorough review of the 
     application of the Defense Production Act of 1950, covering 
     the period beginning on the date of the enactment of the 
     Defense Production Act Reauthorization of 2003 (Public Law 
     108-195) and ending on the date of the enactment of this Act.
       (b) Considerations.--In conducting the review required by 
     this section, the Comptroller shall examine--
       (1) the relevance and utility of the authorities provided 
     under the Defense Production Act of 1950 to meet the security 
     challenges of the 21st Century;
       (2) the manner in which the authorities provided under such 
     Act have been used by the Federal Government--
       (A) to meet security challenges;
       (B) to meet current and future defense requirements;
       (C) to meet current and future energy requirements;
       (D) to meet current and future domestic emergency and 
     disaster response and recovery requirements;
       (E) to reduce the interruption of critical infrastructure 
     operations during a terrorist attack, natural catastrophe, or 
     other similar national emergency; and
       (F) to safeguard critical components of the United States 
     industrial base, including American aerospace and 
     shipbuilding industries;
       (3) the economic impact of foreign offset contracts;
       (4) the relative merit of developing rapid and standardized 
     systems for use of the authorities provided under the Defense 
     Production Act of 1950, by any Federal agency; and
       (5) such other issues as the Comptroller determines 
     relevant.
       (c) Report to Congress.--Not later than 150 days after the 
     date of the enactment of this Act, the Comptroller shall 
     submit to the Committees on Armed Services and on Banking, 
     Housing, and Urban Affairs of the Senate and the Committees 
     on Armed Services and on Financial Services of the House of 
     Representatives a report on the review conducted under this 
     section.
       (d) Rules of Construction on Protection of Information.--
     Notwithstanding any other provision of law--
       (1) the provisions of section 705(d) of the Defense 
     Production Act of 1950 (50 U.S.C. App. 2155(d)) shall not 
     apply to information sought or obtained by the Comptroller 
     for purposes of the review required by this section; and
       (2) provisions of law pertaining to the protection of 
     classified information or proprietary information otherwise 
     applicable to information sought or obtained by the 
     Comptroller in carrying out this section shall not be 
     affected by any provision of this section.

     SEC. 890. PREVENTION OF EXPORT CONTROL VIOLATIONS.

       (a) Prevention of Export Control Violations.--Not later 
     than 180 days after the date of the enactment of this Act, 
     the Secretary of Defense shall prescribe regulations 
     requiring any contractor under a contract with the Department 
     of Defense to provide goods or technology that is subject to 
     export controls under the Arms Export Control Act or the 
     Export Administration of 1979 (as continued in effect under 
     the International Emergency Economic Powers Act) to comply 
     with those Acts and applicable regulations with respect to 
     such goods and technology, including the International 
     Traffic in Arms Regulations and the Export Administration 
     Regulations. Regulations prescribed under this subsection 
     shall include a contract clause enforcing such requirement.
       (b) Training on Export Controls.--The Secretary of Defense 
     shall ensure that any contractor under a contract with the 
     Department of Defense to provide goods or technology that is 
     subject to export controls under the Arms Export Control Act 
     or the Export Administration of 1979 (as continued in effect 
     under the International Emergency Economic Powers Act) is 
     made aware of any relevant resources made available by the 
     Department of State and the Department of Commerce to assist 
     in compliance with the requirement established by subsection 
     (a) and the need for a corporate compliance plan and periodic 
     internal audits of corporate performance under such plan.

[[Page 32593]]

       (c) Report.--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 assessing the utility of--
       (1) requiring defense contractors (or subcontractors at any 
     tier) to periodically report on measures taken to ensure 
     compliance with the International Traffic in Arms Regulations 
     and the Export Administration Regulations;
       (2) requiring periodic audits of defense contractors (or 
     subcontractors at any tier) to ensure compliance with all 
     provisions of the International Traffic in Arms Regulations 
     and the Export Administration Regulations;
       (3) requiring defense contractors to maintain a corporate 
     training plan to disseminate information to appropriate 
     contractor personnel regarding the applicability of the Arms 
     Export Control Act and the Export Administration Act of 1979; 
     and
       (4) requiring a designated corporate liaison, available for 
     training provided by the United States Government, whose 
     primary responsibility would be contractor compliance with 
     the Arms Export Control Act and the Export Administration Act 
     of 1979.
       (d) Definitions.--In this section:
       (1) Export administration regulations.--The term ``Export 
     Administration Regulations'' means those regulations 
     contained in sections 730 through 774 of title 15, Code of 
     Federal Regulations (or successor regulations).
       (2) International traffic in arms regulations.--The term 
     ``International Traffic in Arms Regulations'' means those 
     regulations contained in sections 120 through 130 of title 
     22, Code of Federal Regulations (or successor regulations).

     SEC. 891. PROCUREMENT GOAL FOR NATIVE HAWAIIAN-SERVING 
                   INSTITUTIONS AND ALASKA NATIVE-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 (C);
       (B) by striking the period at the end of subparagraph (D) 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(E) Native Hawaiian-serving institutions and Alaska 
     Native-serving institutions (as defined in section 317 of the 
     Higher Education Act of 1965).'';
       (2) in subsection (a)(2), by inserting after ``Hispanic-
     serving institutions,'' the following: ``Native Hawaiian-
     serving institutions and Alaska Native-serving 
     institutions,'';
       (3) in subsection (c)(1), by inserting after ``Hispanic-
     serving institutions,'' the following: ``Native Hawaiian-
     serving institutions and Alaska Native-serving 
     institutions,''; and
       (4) in subsection (c)(3), by inserting after ``Hispanic-
     serving institutions,'' the following: ``to Native Hawaiian-
     serving institutions and Alaska Native-serving 
     institutions,''.

     SEC. 892. COMPETITION FOR PROCUREMENT OF SMALL ARMS SUPPLIED 
                   TO IRAQ AND AFGHANISTAN.

       (a) Competition Requirement.--For the procurement of 
     pistols and other weapons described in subsection (b), the 
     Secretary of Defense shall ensure, consistent with the 
     provisions of section 2304 of title 10, United States Code, 
     that--
       (1) full and open competition is obtained to the maximum 
     extent practicable;
       (2) no responsible United States manufacturer is excluded 
     from competing for such procurements; and
       (3) products manufactured in the United States are not 
     excluded from the competition.
       (b) Procurements Covered.--This section applies to the 
     procurement of the following:
       (1) Pistols and other weapons less than 0.50 caliber for 
     assistance to the Army of Iraq, the Iraqi Police Forces, and 
     other Iraqi security organizations.
       (2) Pistols and other weapons less than 0.50 caliber for 
     assistance to the Army of Afghanistan, the Afghani Police 
     Forces, and other Afghani security organizations.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Repeal of limitation on major Department of Defense 
              headquarters activities personnel and related report.
Sec. 902. Flexibility to adjust the number of deputy chiefs and 
              assistant chiefs.
Sec. 903. Change in eligibility requirements for appointment to 
              Department of Defense leadership positions.
Sec. 904. Management of the Department of Defense.
Sec. 905. Revision in guidance relating to combatant command 
              acquisition authority.
Sec. 906. Department of Defense Board of Actuaries.
Sec. 907. Modification of background requirement of individuals 
              appointed as Under Secretary of Defense for Acquisition, 
              Technology, and Logistics.
Sec. 908. Assistant Secretaries of the military departments for 
              acquisition matters; principal military deputies.
Sec. 909. Sense of Congress on term of Office of the Director of 
              Operational Test and Evaluation.

                      Subtitle B--Space Activities

Sec. 911. Space protection strategy.
Sec. 912. Biennial report on management of space cadre within the 
              Department of Defense.
Sec. 913. Additional report on oversight of acquisition for defense 
              space programs.

             Subtitle C--Chemical Demilitarization Program

Sec. 921. Chemical demilitarization citizens advisory commissions.
Sec. 922. Sense of Congress on completion of destruction of United 
              States chemical weapons stockpile.
Sec. 923. Repeal of certain qualifications requirement for director of 
              chemical demilitarization management organization.
Sec. 924. Modification of termination of assistance to State and local 
              governments after completion of the destruction of the 
              United States chemical weapons stockpile.

                Subtitle D--Intelligence-Related Matters

Sec. 931. Technical amendments to title 10, United States Code, arising 
              from enactment of the Intelligence Reform and Terrorism 
              Prevention Act of 2004.

                Subtitle E--Roles and Missions Analysis

Sec. 941. Requirement for quadrennial roles and missions review.
Sec. 942. Joint Requirements Oversight Council additional duties 
              relating to core mission areas.
Sec. 943. Requirement for certification of major systems prior to 
              technology development.
Sec. 944. Presentation of future-years mission budget by core mission 
              area.

                       Subtitle F--Other Matters

Sec. 951. Department of Defense consideration of effect of climate 
              change on Department facilities, capabilities, and 
              missions.
Sec. 952. Interagency policy coordination.
Sec. 953. Expansion of employment creditable under service agreements 
              under National Security Education Program.
Sec. 954. Board of Regents for the Uniformed Services University of the 
              Health Sciences.
Sec. 955. Establishment of Department of Defense School of Nursing.
Sec. 956. Inclusion of commanders of Western Hemisphere combatant 
              commands in Board of Visitors of Western Hemisphere 
              Institute for Security Cooperation.
Sec. 957. Comptroller General assessment of reorganization of the 
              Office of the Under Secretary of Defense for Policy.
Sec. 958. Report on foreign language proficiency.
              Subtitle A--Department of Defense Management

     SEC. 901. REPEAL OF LIMITATION ON MAJOR DEPARTMENT OF DEFENSE 
                   HEADQUARTERS ACTIVITIES PERSONNEL AND RELATED 
                   REPORT.

       (a) Repeal of Limitation.--
       (1) Repeal.--Section 130a of title 10, United States Code, 
     is repealed.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 3 of such title is amended by striking 
     the item relating to section 130a.
       (b) Report Required.--The Secretary of Defense shall 
     include a report with the defense budget materials for each 
     fiscal year that includes the following information:
       (1) The average number of military personnel and civilian 
     employees of the Department of Defense assigned to major 
     Department of Defense headquarters activities for each 
     component of the Department of Defense during the preceding 
     fiscal year.
       (2) The total increase in personnel assigned to major 
     headquarters activities, if any, during the preceding fiscal 
     year--
       (A) attributable to the replacement of contract personnel 
     with military personnel or civilian employees of the 
     Department of Defense, including the number of positions 
     associated with the replacement of contract personnel 
     performing inherently governmental functions; and
       (B) attributable to reasons other than the replacement of 
     contract personnel with military personnel or civilian 
     employees of the Department, such as workload or operational 
     demand increases.
       (3) An estimate of the cost savings, if any, associated 
     with the elimination of contracts for the performance of 
     major headquarters activities.
       (4) The number of military personnel and civilian employees 
     of the Department of Defense assigned to major headquarters 
     activities for each component of the Department of Defense as 
     of October 1 of the preceding fiscal year.
       (c) Definitions.--In this section:
       (1) Defense budget materials.--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 that is 
     submitted to Congress by the President under section 1105 of 
     title 31, United States Code.
       (2) Contract personnel.--The term ``contract personnel'' 
     means persons hired under a contract with the Department of 
     Defense for the performance of major Department of Defense 
     headquarters activities.

     SEC. 902. FLEXIBILITY TO ADJUST THE NUMBER OF DEPUTY CHIEFS 
                   AND ASSISTANT CHIEFS.

       (a) Army.--Section 3035(b) of title 10, United States Code, 
     is amended to read as follows:

[[Page 32594]]

       ``(b) The Secretary of the Army shall prescribe the number 
     of Deputy Chiefs of Staff and Assistant Chiefs of Staff, for 
     a total of not more than eight positions.''.
       (b) Navy.--
       (1) Deputy chiefs of naval operations.--Section 5036(a) of 
     title 10, United States Code, is amended--
       (A) by striking ``There are in the Office of the Chief of 
     Naval Operations not more than five Deputy Chiefs of Naval 
     Operations,'' and inserting ``There are Deputy Chiefs of 
     Naval Operations in the Office of the Chief of Naval 
     Operations,''; and
       (B) by adding at the end the following: ``The Secretary of 
     the Navy shall prescribe the number of Deputy Chiefs of Naval 
     Operations under this section and Assistant Chiefs of Naval 
     Operations under section 5037 of this title, for a total of 
     not more than eight positions.''.
       (2) Assistant chiefs of naval operations.--Section 5037(a) 
     of such title is amended--
       (A) by striking ``There are in the Office of the Chief of 
     Naval Operations not more than three Assistant Chiefs of 
     Naval Operations,'' and inserting ``There are Assistant 
     Chiefs of Naval Operations in the Office of the Chief of 
     Naval Operations,''; and
       (B) by adding at the end the following: ``The Secretary of 
     the Navy shall prescribe the number of Assistant Chiefs of 
     Naval Operations in accordance with section 5036(a) of this 
     title.''.
       (c) Air Force.--Section 8035(b) of title 10, United States 
     Code, is amended to read as follows:
       ``(b) The Secretary of the Air Force shall prescribe the 
     number of Deputy Chiefs of Staff and Assistant Chiefs of 
     Staff, for a total of not more than eight positions.''.

     SEC. 903. CHANGE IN ELIGIBILITY REQUIREMENTS FOR APPOINTMENT 
                   TO DEPARTMENT OF DEFENSE LEADERSHIP POSITIONS.

       (a) Secretary of Defense.--Section 113(a) of title 10, 
     United States Code, is amended by striking ``10'' and 
     inserting ``seven''.
       (b) Deputy Secretary of Defense.--Section 132(a) of such 
     title is amended by striking ``ten'' and inserting ``seven''.
       (c) Under Secretary of Defense for Policy.--Section 134(a) 
     of such title is amended by striking ``10'' and inserting 
     ``seven''.

     SEC. 904. MANAGEMENT OF THE DEPARTMENT OF DEFENSE.

       (a) Assignment of Management Duties and Designation of a 
     Chief Management Officer and Deputy Chief Management Officer 
     of the Department of Defense.--
       (1) Establishment of position.--Section 132 of title 10, 
     United States Code is amended--
       (A) by redesignating subsection (c) as subsection (d); and
       (B) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) The Deputy Secretary serves as the Chief Management 
     Officer of the Department of Defense. The Deputy Secretary 
     shall be assisted in this capacity by a Deputy Chief 
     Management Officer, who shall be appointed from civilian life 
     by the President, by and with the advice and consent of the 
     Senate.''.
       (2) Assignment of duties.--
       (A) The Secretary of Defense shall assign duties and 
     authorities relating to the management of the business 
     operations of the Department of Defense.
       (B) The Secretary shall assign such duties and authorities 
     to the Chief Management Officer as are necessary for that 
     official to effectively and efficiently organize the business 
     operations of the Department of Defense.
       (C) The Secretary shall assign such duties and authorities 
     to the Deputy Chief Management Officer as are necessary for 
     that official to assist the Chief Management Officer to 
     effectively and efficiently organize the business operations 
     of the Department of Defense.
       (D) The Deputy Chief Management Officer shall perform the 
     duties and have the authorities assigned by the Secretary 
     under subparagraph (C) and perform such duties and have such 
     authorities as are delegated by the Chief Management Officer.
       (3) Executive schedule level iii.--Section 5314 of title 5, 
     United States Code, is amended by inserting after the item 
     relating to the Under Secretary of Defense for Intelligence 
     the following new item:
       ``Deputy Chief Management Officer of the Department of 
     Defense.''.
       (4) Placement in osd.--Section 131(b)(2) of title 10, 
     United States Code, is amended--
       (A) by redesignating paragraphs (3) through (8) as 
     paragraphs (4) through (9), respectively; and
       (B) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) The Deputy Chief Management Officer of the Department 
     of Defense.''.
       (b) Assignment of Management Duties and Designation of the 
     Chief Management Officers of the Military Departments.--
       (1) The Secretary of a military department shall assign 
     duties and authorities relating to the management of the 
     business operations of such military department.
       (2) The Secretary of a military department, in assigning 
     duties and authorities under paragraph (1) shall designate 
     the Under Secretary of such military department to have the 
     primary management responsibility for business operations, to 
     be known in the performance of such duties as the Chief 
     Management Officer
       (3) The Secretary shall assign such duties and authorities 
     to the Chief Management Officer as are necessary for that 
     official to effectively and efficiently organize the business 
     operations of the military department concerned.
       (4) The Chief Management Officer of each military 
     department shall promptly provide such information relating 
     to the business operations of such department to the Chief 
     Management Officer and Deputy Chief Management Officer of the 
     Department of Defense as is necessary to assist those 
     officials in the performance of their duties.
       (c) Management of Defense Business Transformation Agency.--
     Section 192(e)(2) of title 10, United States Code, is amended 
     by striking ``that the Agency'' and all that follows and 
     inserting ``that the Director of the Agency shall report 
     directly to the Deputy Chief Management Officer of the 
     Department of Defense.''.
       (d) Strategic Management Plan Required.--
       (1) Requirement.--The Secretary of Defense, acting through 
     the Chief Management Officer of the Department of Defense, 
     shall develop a strategic management plan for the Department 
     of Defense.
       (2) Matters covered.--Such plan shall include, at a 
     minimum, detailed descriptions of--
       (A) performance goals and measures for improving and 
     evaluating the overall efficiency and effectiveness of the 
     business operations of the Department of Defense and 
     achieving an integrated management system for business 
     support areas within the Department of Defense;
       (B) key initiatives to be undertaken by the Department of 
     Defense to achieve the performance goals under subparagraph 
     (A), together with related resource needs;
       (C) procedures to monitor the progress of the Department of 
     Defense in meeting performance goals and measures under 
     subparagraph (A);
       (D) procedures to review and approve plans and budgets for 
     changes in business operations, including any proposed 
     changes to policies, procedures, processes, and systems, to 
     ensure the compatibility of such plans and budgets with the 
     strategic management plan of the Department of Defense; and
       (E) procedures to oversee the development of, and review 
     and approve, all budget requests for defense business 
     systems.
       (3) Updates.--The Secretary of Defense, acting through the 
     Chief Management Officer, shall update the strategic 
     management plan no later than July 1, 2009, and every two 
     years thereafter and provide a copy to the Committees on 
     Armed Services of the Senate and the House of 
     Representatives.
       (e) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of Defense shall provide 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives a report on the implementation of 
     this section and a copy of the strategic management plan 
     required by subsection (d).

     SEC. 905. REVISION IN GUIDANCE RELATING TO COMBATANT COMMAND 
                   ACQUISITION AUTHORITY.

       Subparagraph (B) of section 905(b)(1) of the John Warner 
     National Defense Authorization Act for Fiscal Year 2007 
     (Public Law 109-364; 120 Stat. 2353) is amended by striking 
     ``and mutually supportive of''.

     SEC. 906. DEPARTMENT OF DEFENSE BOARD OF ACTUARIES.

       (a) Establishment.--
       (1) In general.--Chapter 7 of title 10, United States Code, 
     is amended by inserting after section 182 the following new 
     section:

     ``Sec. 183. Department of Defense Board of Actuaries

       ``(a) In General.--There shall be in the Department of 
     Defense a Department of Defense Board of Actuaries 
     (hereinafter in this section referred to as the `Board').
       ``(b) Members.--(1) The Board shall consist of three 
     members who shall be appointed by the Secretary of Defense 
     from among qualified professional actuaries who are members 
     of the Society of Actuaries.
       ``(2) The members of the Board shall serve for a term of 15 
     years, except that a member of the Board appointed to fill a 
     vacancy occurring before the end of the term for which the 
     member's predecessor was appointed shall only serve until the 
     end of such term. A member may serve after the end of the 
     member's term until the member's successor takes office.
       ``(3) A member of the Board may be removed by the Secretary 
     of Defense only for misconduct or failure to perform 
     functions vested in the Board.
       ``(4) A member of the Board who is not an employee of the 
     United States is entitled to receive pay at the daily 
     equivalent of the annual rate of basic pay of the highest 
     rate of basic pay then currently being paid under the General 
     Schedule of subchapter III of chapter 53 of title 5 for each 
     day the member is engaged in the performance of the duties of 
     the Board and is entitled to travel expenses, including a per 
     diem allowance, in accordance with section 5703 of that title 
     in connection with such duties.
       ``(c) Duties.--The Board shall have the following duties:
       ``(1) To review valuations of the Department of Defense 
     Military Retirement Fund in accordance with section 1465(c) 
     of this title and submit to the President and Congress, not 
     less often than once every four years, a report on the status 
     of that Fund, including such recommendations for 
     modifications to the funding or amortization of that Fund as 
     the Board considers appropriate and necessary to maintain 
     that Fund on a sound actuarial basis.
       ``(2) To review valuations of the Department of Defense 
     Education Benefits Fund in accordance with section 2006(e) of 
     this title and make

[[Page 32595]]

     recommendations to the President and Congress on such 
     modifications to the funding or amortization of that Fund as 
     the Board considers appropriate to maintain that Fund on a 
     sound actuarial basis.
       ``(3) To review valuations of such other funds as the 
     Secretary of Defense shall specify for purposes of this 
     section and make recommendations to the President and 
     Congress on such modifications to the funding or amortization 
     of such funds as the Board considers appropriate to maintain 
     such funds on a sound actuarial basis.
       ``(d) Records.--The Secretary of Defense shall ensure that 
     the Board has access to such records regarding the funds 
     referred to in subsection (c) as the Board shall require to 
     determine the actuarial status of such funds.
       ``(e) Reports.--(1) The Board shall submit to the Secretary 
     of Defense on an annual basis a report on the actuarial 
     status of each of the following:
       ``(A) The Department of Defense Military Retirement Fund.
       ``(B) The Department of Defense Education Benefits Fund.
       ``(C) Each other fund specified by Secretary under 
     subsection (c)(3).
       ``(2) The Board shall also furnish its advice and opinion 
     on matters referred to it by the Secretary.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 7 of such title is amended by inserting 
     after the item relating to section 182 the following new 
     item:

``183. Department of Defense Board of Actuaries''.

       (3) Initial service as board members.--Each member of the 
     Department of Defense Retirement Board of Actuaries or the 
     Department of Defense Education Benefits Board of Actuaries 
     as of the date of the enactment of this Act shall serve as an 
     initial member of the Department of Defense Board of 
     Actuaries under section 183 of title 10, United States Code 
     (as added by paragraph (1)), from that date until the date 
     otherwise provided for the completion of such individual's 
     term as a member of the Department of Defense Retirement 
     Board of Actuaries or the Department of Defense Education 
     Benefits Board of Actuaries, as the case may be, unless 
     earlier removed by the Secretary of Defense.
       (b) Termination of Existing Boards of Actuaries.--
       (1) Department of defense retirement board of actuaries.--
     (A) Section 1464 of title 10, United States Code, is 
     repealed.
       (B) The table of sections at the beginning of chapter 74 of 
     such title is amended by striking the item relating to 
     section 1464.
       (2) Department of defense education benefits board of 
     actuaries.--Section 2006 of such title is amended--
       (A) in subsection (c)(1), by striking ``subsection (g)'' 
     and inserting ``subsection (f)'';
       (B) by striking subsection (e);
       (C) by redesignating subsections (f), (g), and (h) as 
     subsections (e), (f), and (g), respectively;
       (D) in subsection (e), as redesignated by subparagraph (C), 
     by striking ``subsection (g)'' in paragraph (5) and inserting 
     ``subsection (f)''; and
       (E) in subsection (f), as so redesignated--
       (i) in paragraph (2)(A), by striking ``subsection (f)(3)'' 
     and inserting ``subsection (e)(3)''; and
       (ii) in paragraph (2)(B), by striking ``subsection (f)(4)'' 
     and inserting ``subsection (e)(4)''.
       (c) Conforming Amendments.--
       (1) Section 1175(h)(4) of title 10, United States Code, is 
     amended by striking ``Retirement'' the first place it 
     appears.
       (2) Section 1460(b) of such title is amended by striking 
     ``Retirement''.
       (3) Section 1466(c)(3) of such title is amended by striking 
     ``Retirement''.
       (4) Section 12521(6) of such title is amended by striking 
     ``Department of Defense Education Benefits Board of Actuaries 
     referred to in section 2006(e)(1) of this title'' and 
     inserting ``Department of Defense Board of Actuaries under 
     section 183 of this title''.

     SEC. 907. MODIFICATION OF BACKGROUND REQUIREMENT OF 
                   INDIVIDUALS APPOINTED AS UNDER SECRETARY OF 
                   DEFENSE FOR ACQUISITION, TECHNOLOGY, AND 
                   LOGISTICS.

       Section 133(a) of title 10, United States Code, is amended 
     by striking ``in the private sector''.

     SEC. 908. ASSISTANT SECRETARIES OF THE MILITARY DEPARTMENTS 
                   FOR ACQUISITION MATTERS; PRINCIPAL MILITARY 
                   DEPUTIES.

       (a) Department of the Army.--Section 3016(b) of title 10, 
     United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(5)(A) One of the Assistant Secretaries shall be the 
     Assistant Secretary of the Army for Acquisition, Technology, 
     and Logistics. The principal duty of the Assistant Secretary 
     shall be the overall supervision of acquisition, technology, 
     and logistics matters of the Department of the Army.
       ``(B) The Assistant Secretary shall have a Principal 
     Military Deputy, who shall be a lieutenant general of the 
     Army on active duty. The Principal Military Deputy shall be 
     appointed from among officers who have significant experience 
     in the areas of acquisition and program management. The 
     position of Principal Military Deputy shall be designated as 
     a critical acquisition position under section 1733 of this 
     title.''.
       (b) Department of the Navy.--Section 5016(b) of such title 
     is amended by adding at the end the following new paragraph:
       ``(4)(A) One of the Assistant Secretaries shall be the 
     Assistant Secretary of the Navy for Research, Development, 
     and Acquisition. The principal duty of the Assistant 
     Secretary shall be the overall supervision of research, 
     development, and acquisition matters of the Department of the 
     Navy.
       ``(B) The Assistant Secretary shall have a Principal 
     Military Deputy, who shall be a vice admiral of the Navy or a 
     lieutenant general of the Marine Corps on active duty. The 
     Principal Military Deputy shall be appointed from among 
     officers who have significant experience in the areas of 
     acquisition and program management. The position of Principal 
     Military Deputy shall be designated as a critical acquisition 
     position under section 1733 of this title.''.
       (c) Department of the Air Force.--Section 8016(b) of such 
     title is amended by adding at the end the following new 
     paragraph:
       ``(4)(A) One of the Assistant Secretaries shall be the 
     Assistant Secretary of the Air Force for Acquisition. The 
     principal duty of the Assistant Secretary shall be the 
     overall supervision of acquisition matters of the Department 
     of the Air Force.
       ``(B) The Assistant Secretary shall have a Principal 
     Military Deputy, who shall be a lieutenant general of the Air 
     Force on active duty. The Principal Military Deputy shall be 
     appointed from among officers who have significant experience 
     in the areas of acquisition and program management. The 
     position of Principal Military Deputy shall be designated as 
     a critical acquisition position under section 1733 of this 
     title.''.
       (d) Duty of Principal Military Deputies To Inform Service 
     Chiefs on Major Defense Acquisition Programs.--Each Principal 
     Military Deputy to a service acquisition executive shall be 
     responsible for keeping the Chief of Staff of the Armed Force 
     concerned informed of the progress of major defense 
     acquisition programs.

     SEC. 909. SENSE OF CONGRESS ON TERM OF OFFICE OF THE DIRECTOR 
                   OF OPERATIONAL TEST AND EVALUATION.

       It is the sense of Congress that the term of office of the 
     Director of Operational Test and Evaluation of the Department 
     of Defense should be not less than five years.
                      Subtitle B--Space Activities

     SEC. 911. SPACE PROTECTION STRATEGY.

       (a) Sense of Congress.--It is the Sense of Congress that 
     the United States should place greater priority on the 
     protection of national security space systems.
       (b) Strategy.--The Secretary of Defense, in conjunction 
     with the Director of National Intelligence, shall develop a 
     strategy, to be known as the Space Protection Strategy, for 
     the development and fielding by the United States of the 
     capabilities that are necessary to ensure freedom of action 
     in space for the United States.
       (c) Matters Included.--The strategy required by subsection 
     (b) shall include each of the following:
       (1) An identification of the threats to, and the 
     vulnerabilities of, the national security space systems of 
     the United States.
       (2) A description of the capabilities currently contained 
     in the program of record of the Department of Defense and the 
     intelligence community that ensure freedom of action in 
     space.
       (3) For each period covered by the strategy, a description 
     of the capabilities that are needed for the period, 
     including--
       (A) the hardware, software, and other materials or services 
     to be developed or procured;
       (B) the management and organizational changes to be 
     achieved; and
       (C) concepts of operations, tactics, techniques, and 
     procedures to be employed.
       (4) For each period covered by the strategy, an assessment 
     of the gaps and shortfalls between the capabilities that are 
     needed for the period and the capabilities currently 
     contained in the program of record.
       (5) For each period covered by the strategy, a 
     comprehensive plan for investment in capabilities that 
     identifies specific program and technology investments to be 
     made in that period.
       (6) A description of the current processes by which the 
     systems protection requirements of the Department of Defense 
     and the intelligence community are addressed in space 
     acquisition programs and during key milestone decisions, an 
     assessment of the adequacy of those processes, and an 
     identification of the actions of the Department and the 
     intelligence community for addressing any inadequacies in 
     those processes.
       (7) A description of the current processes by which the 
     Department of Defense and the intelligence community program 
     and budget for capabilities (including capabilities that are 
     incorporated into single programs and capabilities that span 
     multiple programs), an assessment of the adequacy of those 
     processes, and an identification of the actions of the 
     Department and the intelligence community for addressing any 
     inadequacies in those processes.
       (8) A description of the organizational and management 
     structure of the Department of Defense and the intelligence 
     community for addressing policy, planning, acquisition, and 
     operations with respect to capabilities, a description of the 
     roles and responsibilities of each organization, and an 
     identification of the actions of the Department and the 
     intelligence community for addressing any inadequacies in 
     that structure.
       (d) Periods Covered.--The strategy required by subsection 
     (b) shall cover the following periods:
       (1) Fiscal years 2008 through 2013.
       (2) Fiscal years 2014 through 2019.
       (3) Fiscal years 2020 through 2025.
       (e) Definitions.--In this section--

[[Page 32596]]

       (1) the term ``capabilities'' means space, airborne, and 
     ground systems and capabilities for space situational 
     awareness and for space systems protection; and
       (2) the term ``intelligence community'' has the meaning 
     given such term in section 3(4) of the National Security Act 
     of 1947 (50 U.S.C. 401a(4)).
       (f) Report; Biennial Update.--
       (1) Report.--Not later than six months after the date of 
     the enactment of this Act, the Secretary of Defense, in 
     conjunction with the Director of National Intelligence, shall 
     submit to Congress a report on the strategy required by 
     subsection (b), including each of the matters required by 
     subsection (c).
       (2) Biennial update.--Not later than March 15 of each even-
     numbered year after 2008, the Secretary of Defense, in 
     conjunction with the Director of National Intelligence, shall 
     submit to Congress an update to the report required by 
     paragraph (1).
       (3) Classification.--The report required by paragraph (1), 
     and each update required by paragraph (2), shall be in 
     unclassified form, but may include a classified annex.
       (g) Conforming Repeal.--Section 911 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163; 
     119 Stat. 3405; 10 U.S.C. 2271 note) is repealed.

     SEC. 912. BIENNIAL REPORT ON MANAGEMENT OF SPACE CADRE WITHIN 
                   THE DEPARTMENT OF DEFENSE.

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

     ``Sec. 490. Space cadre management: biennial report

       ``(a) Requirement.--The Secretary of Defense and each 
     Secretary of a military department shall develop metrics and 
     use these metrics to identify, track, and manage space cadre 
     personnel within the Department of Defense to ensure the 
     Department has sufficient numbers of personnel with the 
     expertise, training, and experience to meet current and 
     future national security space needs.
       ``(b) Biennial Report Required.--
       ``(1) In general.--Not later than 180 days after the date 
     of the enactment of this section, and every even-numbered 
     year thereafter, the Secretary of Defense shall submit to the 
     congressional defense committees a report on the management 
     of the space cadre.
       ``(2) Matters included.--The report required by paragraph 
     (1) shall include--
       ``(A) the number of active duty, reserve duty, and 
     government civilian space-coded billets that--
       ``(i) are authorized or permitted to be maintained for each 
     military department and defense agency;
       ``(ii) are needed or required for each military department 
     and defense agency for the year in which the submission of 
     the report is required; and
       ``(iii) are needed or required for each military department 
     and defense agency for each of the five years following the 
     date of the submission of the report;
       ``(B) the actual number of active duty, reserve duty, and 
     government civilian personnel that are coded or classified as 
     space cadre personnel within the Department of Defense, 
     including the military departments and defense agencies;
       ``(C) the number of personnel recruited or hired as 
     accessions to serve in billets coded or classified as space 
     cadre personnel for each military department and defense 
     agency;
       ``(D) the number of personnel serving in billets coded or 
     classified as space cadre personnel that discontinued serving 
     each military department and defense agency during the 
     preceding calendar year;
       ``(E) for each of the reporting requirements in 
     subparagraphs (A) through (D), further classification of the 
     number of personnel by--
       ``(i) space operators, acquisition personnel, engineers, 
     scientists, program managers, and other space-related areas 
     identified by the Department;
       ``(ii) expertise or technical specialization area--

       ``(I) such as communications, missile warning, spacelift, 
     and any other space-related specialties identified by the 
     Department or classifications used by the Department; and
       ``(II) consistent with section 1721 of this title for 
     acquisition personnel;

       ``(iii) rank for active duty and reserve duty personnel and 
     grade for government civilian personnel;
       ``(iv) qualification, expertise, or proficiency level 
     consistent with service and agency-defined qualification, 
     expertise, or proficiency levels; and
       ``(v) any other such space-related classification 
     categories used by the Department or military departments; 
     and
       ``(F) any other metrics identified by the Department to 
     improve the identification, tracking, training, and 
     management of space cadre personnel.
       ``(3) Assessments.--The report required by paragraph (1) 
     shall also include the Secretary's assessment of the state of 
     the Department's space cadre, the Secretary's assessment of 
     the space cadres of the military departments, and a 
     description of efforts to ensure the Department has a space 
     cadre sufficient to meet current and future national security 
     space needs.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``490. Space cadre management: biennial report.''.

     SEC. 913. ADDITIONAL REPORT ON OVERSIGHT OF ACQUISITION FOR 
                   DEFENSE SPACE PROGRAMS.

       Section 911(b)(1) of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314; 
     116 Stat. 2621) is amended by inserting ``, and March 15, 
     2008,'' after ``March 15, 2003,''.
             Subtitle C--Chemical Demilitarization Program

     SEC. 921. CHEMICAL DEMILITARIZATION CITIZENS ADVISORY 
                   COMMISSIONS.

       (a) Functions.--Section 172 of the National Defense 
     Authorization Act for Fiscal Year 1993 (50 U.S.C. 1521 note) 
     is amended--
       (1) in each of subsections (b) and (f), by striking 
     ``Assistant Secretary of the Army (Research, Development and 
     Acquisition)'' and inserting ``Assistant Secretary of the 
     Army (Acquisition, Logistics, and Technology)''; and
       (2) in subsection (g), by striking ``Assistant Secretary of 
     the Army (Research, Development, and Acquisition)'' and 
     inserting ``Assistant Secretary of the Army (Acquisition, 
     Logistics, and Technology)''.
       (b) Termination.--Such section is further amended in 
     subsection (h) by striking ``after the stockpile located in 
     that commission's State has been destroyed'' and inserting 
     ``after the closure activities required pursuant to 
     regulations promulgated by the Administrator of the 
     Environmental Protection Agency pursuant to the Solid Waste 
     Disposal Act (42 U.S.C. 6901 et seq.) have been completed for 
     the chemical agent destruction facility in the commission's 
     State, or upon the request of the Governor of the 
     commission's State, whichever occurs first''.

     SEC. 922. 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 not later 
     than April 29, 2007.
       (2) In 2006, under the terms of the Chemical Weapons 
     Convention, the United States requested and received a one-
     time, 5-year extension of its chemical weapons destruction 
     deadline to April 29, 2012.
       (3) On April 10, 2006, the Secretary 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, 
     but would ``continue working diligently to minimize the time 
     to complete destruction without sacrificing safety and 
     security'' and would also ``continue requesting resources 
     needed to complete destruction as close to April 2012 as 
     practicable''.
       (4) The United States chemical demilitarization program has 
     met its one percent, 20 percent, and extended 45 percent 
     destruction deadlines under the Chemical Weapons Convention.
       (5) Destroying the remaining stockpile of United States 
     chemical weapons is imperative for public safety and homeland 
     security, and doing so by April 2012, in accordance with the 
     current destruction deadline provided under the Chemical 
     Weapons Convention, is required by United States law.
       (6) The elimination of chemical weapons anywhere they exist 
     in the world, and the prevention of their proliferation, is 
     of utmost importance to the national security of the United 
     States.
       (7) Section 921(b)(3) of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364; 
     120 Stat. 2359) contained a sense of Congress urging the 
     Secretary of Defense to ensure 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.
       (8) Section 921(b)(4) of that Act contained a sense of 
     Congress urging the Secretary of Defense to propose a 
     credible treatment and disposal process with the support of 
     affected communities. In this regard, any such process should 
     provide for sufficient communication and consultation between 
     representatives of the Department of Defense and 
     representatives of affected States and communities.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the United States is, and must remain, committed to 
     making every effort to safely dispose of its entire chemical 
     weapons stockpile by April 2012, the current destruction 
     deadline provided under the Chemical Weapons Convention, or 
     as soon thereafter as possible, and must carry out all of its 
     other obligations under the Convention; and
       (2) the Secretary of Defense should make every effort to 
     plan for, and to request in the annual budget of the 
     President submitted to Congress adequate funding to complete, 
     the elimination of the United States chemical weapons 
     stockpile in accordance with United States obligations under 
     the Chemical Weapons Convention and in a manner that will 
     protect public health, safety, and the environment, as 
     required by law.
       (c) Reports Required.--
       (1) In general.--Not later than March 15, 2008, and every 
     180 days thereafter until the year in which the United States 
     completes the destruction of its entire stockpile of chemical 
     weapons under the terms of the Chemical Weapons Convention, 
     the Secretary of Defense shall

[[Page 32597]]

     submit to the members and committees of Congress referred to 
     in paragraph (3) a report on the implementation by the United 
     States of its chemical weapons destruction obligations under 
     the Chemical Weapons Convention.
       (2) Elements.--Each report under paragraph (1) shall 
     include the following:
       (A) The anticipated schedule at the time of such report for 
     the completion of destruction of chemical agents, munitions, 
     and materiel at each chemical weapons demilitarization 
     facility in the United States.
       (B) A description of the options and alternatives for 
     accelerating the completion of chemical weapons destruction 
     at each such facility, particularly in time to meet the 
     destruction deadline of April 29, 2012, currently provided by 
     the Chemical Weapons Convention, and by December 31, 2017.
       (C) A description of the funding required to achieve each 
     of the options for destruction described under subparagraph 
     (B), and a detailed life-cycle cost estimate for each of the 
     affected facilities included in each such funding profile.
       (D) A description of all actions being taken by the United 
     States to accelerate the destruction of its entire stockpile 
     of chemical weapons, agents, and materiel in order to meet 
     the current destruction deadline under the Chemical Weapons 
     Convention of April 29, 2012, or as soon thereafter as 
     possible.
       (3) Members and committees of congress.--The members and 
     committees of Congress referred to in this paragraph are--
       (A) the majority leader of the Senate, the minority leader 
     of the Senate, and the Committees on Armed Services and 
     Appropriations of the Senate; and
       (B) the Speaker of the House of Representatives, the 
     majority leader of the House of Representatives, the minority 
     leader of the House of Representatives, and the Committees on 
     Armed Services and Appropriations of the House of 
     Representatives.

     SEC. 923. REPEAL OF CERTAIN QUALIFICATIONS REQUIREMENT FOR 
                   DIRECTOR OF CHEMICAL DEMILITARIZATION 
                   MANAGEMENT ORGANIZATION.

       Section 1412(e)(3) of the Department of Defense 
     Authorization Act, 1986 (50 U.S.C. 1521(e)(3)) is amended--
       (1) in subparagraph (A), by adding ``and'' at the end;
       (2) by striking subparagraph (B); and
       (3) by redesignating subparagraph (C) as subparagraph (B).

     SEC. 924. MODIFICATION OF TERMINATION OF ASSISTANCE TO STATE 
                   AND LOCAL GOVERNMENTS AFTER COMPLETION OF THE 
                   DESTRUCTION OF THE UNITED STATES CHEMICAL 
                   WEAPONS STOCKPILE.

       Subparagraph (B) of section 1412(c)(5) of the Department of 
     Defense Authorization Act, 1986 (50 U.S.C. 1521(c)(5)) is 
     amended to read as follows:
       ``(B) Assistance may be provided under this paragraph for 
     capabilities to respond to emergencies involving an 
     installation or facility as described in subparagraph (A) 
     until the earlier of the following:
       ``(i) The date of the completion of all grants and 
     cooperative agreements with respect to the installation or 
     facility for purposes of this paragraph between the Federal 
     Emergency Management Agency and the State and local 
     governments concerned.
       ``(ii) The date that is 180 days after the date of the 
     completion of the destruction of lethal chemical agents and 
     munitions at the installation or facility.''.
                Subtitle D--Intelligence-Related Matters

     SEC. 931. TECHNICAL AMENDMENTS TO TITLE 10, UNITED STATES 
                   CODE, ARISING FROM ENACTMENT OF THE 
                   INTELLIGENCE REFORM AND TERRORISM PREVENTION 
                   ACT OF 2004.

       (a) References to Head of Intelligence Community.--Title 
     10, United States Code, is amended by striking ``Director of 
     Central Intelligence'' each place it appears in the following 
     provisions and inserting ``Director of National 
     Intelligence'':
       (1) Section 192(c)(2).
       (2) Section 193(d)(2).
       (3) Section 193(e).
       (4) Section 201(a).
       (5) Section 201(c)(1).
       (6) Section 425(a).
       (7) Section 426(a)(3).
       (8) Section 426(b)(2).
       (9) Section 441(c).
       (10) Section 441(d).
       (11) Section 443(d).
       (12) Section 2273(b)(1).
       (13) Section 2723(a).
       (b) References to Head of Central Intelligence Agency.--
     Such title is further amended by striking ``Director of 
     Central Intelligence'' each place it appears in the following 
     provisions and inserting ``Director of the Central 
     Intelligence Agency'':
       (1) Section 431(b)(1).
       (2) Section 444.
       (3) Section 1089(g).
       (c) Other Amendments.--
       (1) Subsection headings.--
       (A) Section 441(c).--The heading of subsection (c) of 
     section 441 of such title is amended by striking ``Director 
     of Central Intelligence'' and inserting ``Director of 
     National Intelligence''.
       (B) Section 443(d).--The heading of subsection (d) of 
     section 443 of such title is amended by striking ``Director 
     of Central Intelligence'' and inserting ``Director of 
     National Intelligence''.
       (2) Section 201.--Section 201 of such title is further 
     amended--
       (A) in subsection (b)(1), to read as follows:
       ``(1) In the event of a vacancy in a position referred to 
     in paragraph (2), before appointing an individual to fill the 
     vacancy or recommending to the President an individual to be 
     nominated to fill the vacancy, the Secretary of Defense shall 
     obtain the concurrence of the Director of National 
     Intelligence as provided in section 106(b) of the National 
     Security Act of 1947 (50 U.S.C. 403-6(b)).''; and
       (B) in subsection (c)(1), by striking ``National Foreign 
     Intelligence Program'' and inserting ``National Intelligence 
     Program''.
                Subtitle E--Roles and Missions Analysis

     SEC. 941. REQUIREMENT FOR QUADRENNIAL ROLES AND MISSIONS 
                   REVIEW.

       (a) Requirement for Review.--
       (1) In general.--Chapter 2 of title 10, United States Code, 
     is amended by inserting after section 118a the following new 
     section:

     ``Sec. 118b. Quadrennial roles and missions review

       ``(a) Review Required.--The Secretary of Defense shall 
     every four years conduct a comprehensive assessment (to be 
     known as the `quadrennial roles and missions review') of the 
     roles and missions of the armed forces and the core 
     competencies and capabilities of the Department of Defense to 
     perform and support such roles and missions.
       ``(b) Independent Military Assessment of Roles and 
     Missions.--(1) In each year in which the Secretary of Defense 
     is required to conduct a comprehensive assessment pursuant to 
     subsection (a), the Chairman of the Joint Chiefs of Staff 
     shall prepare and submit to the Secretary the Chairman's 
     assessment of the roles and missions of the armed forces and 
     the assignment of functions to the armed forces, together 
     with any recommendations for changes in assignment that the 
     Chairman considers necessary to achieve maximum efficiency 
     and effectiveness of the armed forces.
       ``(2) The Chairman's assessment shall be conducted so as 
     to--
       ``(A) organize the significant missions of the armed forces 
     into core mission areas that cover broad areas of military 
     activity;
       ``(B) ensure that core mission areas are defined and 
     functions are assigned so as to avoid unnecessary duplication 
     of effort among the armed forces; and
       ``(C) provide the Chairman's recommendations with regard to 
     issues to be addressed by the Secretary of Defense under 
     subsection (c).
       ``(c) Identification of Core Mission Areas and Core 
     Competencies and Capabilities.--Upon receipt of the 
     Chairman's assessment, and after giving appropriate 
     consideration to the Chairman's recommendations, the 
     Secretary of Defense shall identify--
       ``(1) the core mission areas of the armed forces;
       ``(2) the core competencies and capabilities that are 
     associated with the performance or support of a core mission 
     area identified pursuant to paragraph (1);
       ``(3) the elements of the Department of Defense (including 
     any other office, agency, activity, or command described in 
     section 111(b) of this title) that are responsible for 
     providing the core competencies and capabilities required to 
     effectively perform the core missions identified pursuant to 
     paragraph (1);
       ``(4) any gaps in the ability of the elements (or other 
     office, agency activity, or command) of the Department of 
     Defense to provide core competencies and capabilities 
     required to effectively perform the core missions identified 
     pursuant to paragraph (1);
       ``(5) any unnecessary duplication of core competencies and 
     capabilities between defense components; and
       ``(6) a plan for addressing any gaps or unnecessary 
     duplication identified pursuant to paragraph (4) or paragraph 
     (5).
       ``(d) Report.--The Secretary shall submit a report on the 
     quadrennial roles and missions review to the Committees on 
     Armed Services of the Senate and the House of 
     Representatives. The report shall be submitted in the year 
     following the year in which the review is conducted, but not 
     later than the date on which the President submits the budget 
     for the next fiscal year to Congress under section 1105(a) of 
     title 31.''.
       (b) Repeal of Superseded Provision.--Section 118(e) of 
     title 10, United States Code, is amended--
       (1) by striking paragraph (2); and
       (2) by redesignating paragraph (3) as paragraph (2).
       (c) Timing of Quadrennial Roles and Missions Review.--
       (1) First review.--The first quadrennial roles and missions 
     review under section 118b of title 10, United States Code, as 
     added by subsection (a), shall be conducted during 2008.
       (2) Subsequent reviews.--Subsequent reviews shall be 
     conducted every four years, beginning in 2011.

     SEC. 942. JOINT REQUIREMENTS OVERSIGHT COUNCIL ADDITIONAL 
                   DUTIES RELATING TO CORE MISSION AREAS.

       (a) Revisions in Mission.--Subsection (b) of section 181 of 
     title 10, United States Code, is amended to read as follows:
       ``(b) Mission.--In addition to other matters assigned to it 
     by the President or Secretary of Defense, the Joint 
     Requirements Oversight Council shall--

[[Page 32598]]

       ``(1) assist the Chairman of the Joint Chiefs of Staff--
       ``(A) in identifying, assessing, and approving joint 
     military requirements (including existing systems and 
     equipment) to meet the national military strategy; and
       ``(B) in identifying the core mission area associated with 
     each such requirement;
       ``(2) assist the Chairman in establishing and assigning 
     priority levels for joint military requirements;
       ``(3) assist the Chairman in reviewing the estimated level 
     of resources required in the fulfillment of each joint 
     military requirement and in ensuring that such resource level 
     is consistent with the level of priority assigned to such 
     requirement; and
       ``(4) assist acquisition officials in identifying 
     alternatives to any acquisition program that meet joint 
     military requirements for the purposes of section 
     2366a(a)(4), section 2366b(b), and section 2433(e)(2) of this 
     title.''.
       (b) Advisors.--Section 181 of such title is amended--
       (1) by redesignating subsection (d) as subsection (f); and
       (2) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Advisors.--The Under Secretary of Defense for 
     Acquisition, Technology, and Logistics, the Under Secretary 
     of Defense (Comptroller), and the Director of the Office of 
     Program Analysis and Evaluation shall serve as advisors to 
     the Council on matters within their authority and 
     expertise.''.
       (c) Organization.--Section 181 of such title is further 
     amended by inserting after subsection (d) (as inserted by 
     subsection (b)) the following new subsection (e):
       ``(e) Organization.--The Joint Requirements Oversight 
     Council shall conduct periodic reviews of joint military 
     requirements within a core mission area of the Department of 
     Defense. In any such review of a core mission area, the 
     officer or official assigned to lead the review shall have a 
     deputy from a different military department.''.
       (d) Definitions.--Section 181 of such title is further 
     amended by adding at the end the following new subsection:
       ``(g) Definitions.--In this section:
       ``(1) The term `joint military requirement' means a 
     capability necessary to fulfill a gap in a core mission area 
     of the Department of Defense.
       ``(2) The term `core mission area' means a core mission 
     area of the Department of Defense identified under the most 
     recent quadrennial roles and missions review pursuant to 
     section 118b of this title.''.
       (e) Consultation.--Section 2433(e)(2) of such title is 
     amended by inserting ``, after consultation with the Joint 
     Requirements Oversight Council regarding program 
     requirements,'' after ``Secretary of Defense'' in the matter 
     preceding subparagraph (A).
       (f) Deadlines.--Effective June 1, 2009, all joint military 
     requirements documents of the Joint Requirements Oversight 
     Council produced to carry out its mission under section 
     181(b)(1) of title 10, United States Code, shall reference 
     the core mission areas organized and defined under section 
     118b of such title. Not later than October 1, 2009, all such 
     documents produced before June 1, 2009, shall reference such 
     structure.

     SEC. 943. REQUIREMENT FOR CERTIFICATION OF MAJOR SYSTEMS 
                   PRIOR TO TECHNOLOGY DEVELOPMENT.

       (a) Requirement for Certification.--
       (1) In general.--Chapter 139 of title 10, United States 
     Code, is amended by inserting after section 2366a the 
     following new section:

     ``Sec. 2366b. Major defense acquisition programs: 
       certification required before Milestone A or Key Decision 
       Point A approval

       ``(a) Certification.--A major defense acquisition program 
     may not receive Milestone A approval, or Key Decision Point A 
     approval in the case of a space program, until the Milestone 
     Decision Authority certifies, after consultation with the 
     Joint Requirements Oversight Council on matters related to 
     program requirements and military needs--
       ``(1) that the system fulfills an approved initial 
     capabilities document;
       ``(2) that the system is being executed by an entity with a 
     relevant core competency as identified by the Secretary of 
     Defense under section 118b of this title;
       ``(3) if the system duplicates a capability already 
     provided by an existing system, the duplication provided by 
     such system is necessary and appropriate; and
       ``(4) that a cost estimate for the system has been 
     submitted and that the level of resources required to develop 
     and procure the system is consistent with the priority level 
     assigned by the Joint Requirements Oversight Council.
       ``(b) Notification.--With respect to a major system 
     certified by the Milestone Decision Authority under 
     subsection (a), if the projected cost of the system, at any 
     time prior to Milestone B approval, exceeds the cost estimate 
     for the system submitted at the time of the certification by 
     at least 25 percent, the program manager for the system 
     concerned shall notify the Milestone Decision Authority. The 
     Milestone Decision Authority, in consultation with the Joint 
     Requirements Oversight Council on matters related to program 
     requirements and military needs, shall determine whether the 
     level of resources required to develop and procure the system 
     remains consistent with the priority level assigned by the 
     Joint Requirements Oversight Council. The Milestone Decision 
     Authority may withdraw the certification concerned or rescind 
     Milestone A approval (or Key Decision Point A approval in the 
     case of a space program) if the milestone decision authority 
     determines that such action is in the interest of national 
     defense.
       `` (c) Definitions.--In this section:
       ``(1) The term `major system' has the meaning provided in 
     section 2302(5) of this title.
       ``(2) The term `initial capabilities document' means any 
     capabilities requirement document approved by the Joint 
     Requirements Oversight Council that establishes the need for 
     a materiel approach to resolve a capability gap.
       ``(3) The term `technology development program' means a 
     coordinated effort to assess technologies and refine user 
     performance parameters to fulfill a capability gap identified 
     in an initial capabilities document.
       ``(4) The term `entity' means an entity listed in section 
     125a(a) of this title.
       ``(5) The term `Milestone B approval' has the meaning 
     provided that term in section 2366(e)(7) of this title.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2366b. Major defense acquisition programs: certification required 
              before Milestone A or Key Decision Point A approval.''.

       (b) Review of Department of Defense Acquisition 
     Directives.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of Defense shall review 
     Department of Defense Directive 5000.1 and associated 
     guidance, and the manner in which such directive and guidance 
     have been implemented, and take appropriate steps to ensure 
     that the Department does not commence a technology 
     development program for a major weapon system without 
     Milestone A approval (or Key Decision Point A approval in the 
     case of a space program).
       (c) Effective Date.--Section 2366b of title 10, United 
     States Code, as added by subsection (a), shall apply to major 
     systems on and after March 1, 2008.

     SEC. 944. PRESENTATION OF FUTURE-YEARS MISSION BUDGET BY CORE 
                   MISSION AREA.

       (a) Time of Submission of Future-Years Mission Budget.--The 
     second sentence of section 222(a) of title 10, United States 
     Code, is amended to read as follows: ``That budget shall be 
     submitted for any fiscal year with the future-years defense 
     program submitted under section 221 of this title.''.
       (b) Organization of Future-Years Mission Budget.--The 
     second sentence of section 222(b) of such title is amended by 
     striking ``on the basis'' and all that follows through the 
     end of the sentence and inserting the following: ``on the 
     basis of both major force programs and the core mission areas 
     identified under the most recent quadrennial roles and 
     missions review pursuant to section 118b of this title.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to the future-years mission budget 
     for fiscal year 2010 and each fiscal year thereafter.
                       Subtitle F--Other Matters

     SEC. 951. DEPARTMENT OF DEFENSE CONSIDERATION OF EFFECT OF 
                   CLIMATE CHANGE ON DEPARTMENT FACILITIES, 
                   CAPABILITIES, AND MISSIONS.

       (a) Consideration of Climate Change Effect.--Section 118 of 
     title 10, United States Code, is amended by adding at the end 
     the following new subsection:
       ``(g) Consideration of Effect of Climate Change on 
     Department Facilities, Capabilities, and Missions.--(1) The 
     first national security strategy and national defense 
     strategy prepared after the date of the enactment of the 
     National Defense Authorization Act for Fiscal Year 2008 shall 
     include guidance for military planners--
       ``(A) to assess the risks of projected climate change to 
     current and future missions of the armed forces;
       ``(B) to update defense plans based on these assessments, 
     including working with allies and partners to incorporate 
     climate mitigation strategies, capacity building, and 
     relevant research and development; and
       ``(C) to develop the capabilities needed to reduce future 
     impacts.
       ``(2) The first quadrennial defense review prepared after 
     the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2008 shall also examine the 
     capabilities of the armed forces to respond to the 
     consequences of climate change, in particular, preparedness 
     for natural disasters from extreme weather events and other 
     missions the armed forces may be asked to support inside the 
     United States and overseas.
       ``(3) For planning purposes to comply with the requirements 
     of this subsection, the Secretary of Defense shall use--
       ``(A) the mid-range projections of the fourth assessment 
     report of the Intergovernmental Panel on Climate Change;
       ``(B) subsequent mid-range consensus climate projections if 
     more recent information is available when the next national 
     security strategy, national defense strategy, or quadrennial 
     defense review, as the case may be, is conducted; and
       ``(C) findings of appropriate and available estimations or 
     studies of the anticipated strategic, social, political, and 
     economic effects of global climate change and the 
     implications of such effects on the national security of the 
     United States.

[[Page 32599]]

       ``(4) In this subsection, the term `national security 
     strategy' means the annual national security strategy report 
     of the President under section 108 of the National Security 
     Act of 1947 (50 U.S.C. 404a).''.
       (b) Implementation.--The Secretary of Defense shall ensure 
     that subsection (g) of section 118 of title 10, United States 
     Code, as added by subsection (a), is implemented in a manner 
     that does not have a negative impact on the national security 
     of the United States.

     SEC. 952. INTERAGENCY POLICY COORDINATION.

       (a) Plan Required.--Not later than 180 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     develop and submit to Congress a plan to improve and reform 
     the Department of Defense's participation in and contribution 
     to the interagency coordination process on national security 
     issues.
       (b) Elements.--The elements of the plan shall include the 
     following:
       (1) Assigning either the Under Secretary of Defense for 
     Policy or another official to be the lead policy official for 
     improving and reforming the interagency coordination process 
     on national security issues for the Department of Defense, 
     with an explanation of any decision to name an official other 
     than the Under Secretary and the relative advantages and 
     disadvantages of such decision.
       (2) Giving the official assigned under paragraph (1) the 
     following responsibilities:
       (A) To be the lead person at the Department of Defense for 
     the development of policy affecting the national security 
     interagency process.
       (B) To serve, or designate a person to serve, as the 
     representative of the Department of Defense in Federal 
     Government forums established to address interagency policy, 
     planning, or reforms.
       (C) To advocate, on behalf of the Secretary, for greater 
     interagency coordination and contributions in the execution 
     of the National Security Strategy and particularly specific 
     operational objectives undertaken pursuant to that strategy.
       (D) To make recommendations to the Secretary of Defense on 
     changes to existing Department of Defense regulations or laws 
     to improve the interagency process.
       (E) To serve as the coordinator for all planning and 
     training assistance that is--
       (i) designed to improve the interagency process or the 
     capabilities of other agencies to work with the Department of 
     Defense; and
       (ii) provided by the Department of Defense at the request 
     of other agencies.
       (F) To serve as the lead official in Department of Defense 
     for the development of deployable joint interagency task 
     forces.
       (c) Factors to Be Considered.--In drafting the plan, the 
     Secretary of Defense shall also consider the following 
     factors:
       (1) How the official assigned under subsection (b)(1) shall 
     provide input to the Secretary of Defense on an ongoing basis 
     on how to incorporate the need to coordinate with other 
     agencies into the establishment and reform of combatant 
     commands.
       (2) How such official shall develop and make 
     recommendations to the Secretary of Defense on a regular or 
     an ongoing basis on changes to military and civilian 
     personnel to improve interagency coordination.
       (3) How such official shall work with the combatant command 
     that has the mission for joint warfighting experimentation 
     and other interested agencies to develop exercises to test 
     and validate interagency planning and capabilities.
       (4) How such official shall lead, coordinate, or 
     participate in after-action reviews of operations, tests, and 
     exercises to capture lessons learned regarding the 
     functioning of the interagency process and how those lessons 
     learned will be disseminated.
       (5) The role of such official in ensuring that future 
     defense planning guidance takes into account the capabilities 
     and needs of other agencies.
       (d) Recommendation on Changes in Law.--The Secretary of 
     Defense may submit with the plan or with any future budget 
     submissions recommendations for any changes to law that are 
     required to enhance the ability of the official assigned 
     under subsection (b)(1) in the Department of Defense to 
     coordinate defense interagency efforts or to improve the 
     ability of the Department of Defense to work with other 
     agencies.
       (e) Annual Report.--If an official is named by the 
     Secretary of Defense under subsection (b)(1), the official 
     shall annually submit to Congress a report, beginning in the 
     fiscal year following the naming of the official, on those 
     actions taken by the Department of Defense to enhance 
     national security interagency coordination, the views of the 
     Department of Defense on efforts and challenges in improving 
     the ability of agencies to work together, and suggestions on 
     changes needed to laws or regulations that would enhance the 
     coordination of efforts of agencies.
       (f) Definition.--In this section, the term ``interagency 
     coordination'', within the context of Department of Defense 
     involvement, means the coordination that occurs between 
     elements of the Department of Defense and engaged Federal 
     Government agencies for the purpose of achieving an 
     objective.
       (g) Construction.--Nothing in this provision shall be 
     construed as preventing the Secretary of Defense from naming 
     an official with the responsibilities listed in subsection 
     (b) before the submission of the report required under this 
     section.

     SEC. 953. EXPANSION OF EMPLOYMENT CREDITABLE UNDER SERVICE 
                   AGREEMENTS UNDER NATIONAL SECURITY EDUCATION 
                   PROGRAM.

       Paragraph (2) of subsection (b) of section 802 of the David 
     L. Boren National Security Education Act of 1991 (50 U.S.C. 
     1902), as most recently amended by section 945 of the John 
     Warner National Defense Authorization Act for Fiscal Year 
     2007 (Public Law 109-364; 120 Stat. 2367), is amended--
       (1) in subparagraph (A)--
       (A) in clause (i) by striking ``or'' at the end; and
       (B) by adding at the end the following:
       ``(iii) for not less than one academic year in a position 
     in the field of education in a discipline related to the 
     study supported by the program if the recipient demonstrates 
     to the Secretary of Defense that no position is available in 
     the departments, agencies, and offices covered by clauses (i) 
     and (ii); or''; and
       (2) in subparagraph (B)--
       (A) in clause (i) by striking ``or'' at the end;
       (B) in clause (ii) by striking ``and'' at the end and 
     inserting ``or''; and
       (C) by adding at the end the following:
       ``(iii) for not less than one academic year in a position 
     in the field of education in a discipline related to the 
     study supported by the program if the recipient demonstrates 
     to the Secretary of Defense that no position is available in 
     the departments, agencies, and offices covered by clauses (i) 
     and (ii); and''.

     SEC. 954. BOARD OF REGENTS FOR THE UNIFORMED SERVICES 
                   UNIVERSITY OF THE HEALTH SCIENCES.

       (a) Reorganization and Amendment of Board of Regents 
     Provisions.--
       (1) In general.--Chapter 104 of title 10, United States 
     Code, is amended by inserting after section 2113 the 
     following new section:

     ``Sec. 2113a. Board of Regents

       ``(a) In General.--To assist the Secretary of Defense in an 
     advisory capacity, there is a Board of Regents of the 
     University.
       ``(b) Membership.--The Board shall consist of--
       ``(1) nine persons outstanding in the fields of health and 
     health education who shall be appointed from civilian life by 
     the Secretary of Defense;
       ``(2) the Secretary of Defense, or his designee, who shall 
     be an ex officio member;
       ``(3) the surgeons general of the uniformed services, who 
     shall be ex officio members; and
       ``(4) the President of the University, who shall be a 
     nonvoting ex officio member.
       ``(c) Term of Office.--The term of office of each member of 
     the Board (other than ex officio members) shall be six years 
     except that--
       ``(1) any member appointed to fill a vacancy occurring 
     before the expiration of the term for which his predecessor 
     was appointed shall be appointed for the remainder of such 
     term; and
       ``(2) any member whose term of office has expired shall 
     continue to serve until his successor is appointed.
       ``(d) Chairman.--One of the members of the Board (other 
     than an ex officio member) shall be designated by the 
     Secretary as Chairman. He shall be the presiding officer of 
     the Board.
       ``(e) Compensation.--Members of the Board (other than ex 
     officio members) while attending conferences or meetings or 
     while otherwise performing their duties as members shall be 
     entitled to receive compensation at a rate to be fixed by the 
     Secretary and shall also be entitled to receive an allowance 
     for necessary travel expenses while so serving away from 
     their place of residence.
       ``(f) Meetings.--The Board shall meet at least once a 
     quarter.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:
``2113a. Board of Regents.''.

       (3) Conforming amendments.--
       (A) Section 2113 of title 10, United States Code, is 
     amended--
       (i) in subsection (a), by striking ``To assist'' and all 
     that follows through the end of paragraph (4);
       (ii) by striking subsections (b), (c), and (e);
       (iii) by redesignating subsections (d), (f), (g), (h), (i), 
     and (j) as subsections (b), (c), (d), (e), (f), and (g), 
     respectively; and
       (iv) in subsection (b), as so redesignated, by striking 
     ``who shall also serve as a nonvoting ex officio member of 
     the Board''.
       (B) Section 2114(h) of such title is amended by striking 
     ``2113(h)'' and inserting ``2113(e)''.
       (b) Statutory Redesignation of Dean as President.--
       (1) Subsection 2113 of such title is further amended by 
     striking ``Dean'' each place it appears in subsections (b) 
     and (c)(1), as redesignated by subsection (a)(3), and 
     inserting ``President''.
       (2) Section 2114(e) of such title is amended by striking 
     ``Dean'' each place it appears in paragraphs (3) and (5).

     SEC. 955. ESTABLISHMENT OF DEPARTMENT OF DEFENSE SCHOOL OF 
                   NURSING.

       (a) Establishment Plan Required.--Not later than February 
     1, 2008, the Secretary of Defense shall submit to the 
     congressional defense committees a plan to establish a School 
     of Nursing within the Uniformed Services University of the 
     Health Sciences. The Secretary shall develop the plan in 
     consultation with the Board of Regents of the Uniformed 
     Services University of the Health Sciences and submit the 
     plan to the Board of Regents for review and to solicit the 
     Board's recommendations.
       (b) Programs of Instruction.--In consultation with the 
     Secretaries of the military departments, the Secretary of 
     Defense shall include in the plan required by subsection (a) 
     programs of instruction for the School of Nursing that would

[[Page 32600]]

     lead to the award of a bachelor of science in nursing and 
     such other baccalaureate or graduate degrees in nursing as 
     the Secretary considers appropriate. The plan shall also 
     address the enrollment as students of enlisted members and 
     officers of the Armed Forces and civilians for the purpose of 
     commissioning them as military nursing officers upon 
     graduation. The graduates of such a program of instruction 
     shall be fully eligible to meet credentialing and licensing 
     requirements of the military departments and at least one 
     State in their program of study.
       (c) Consideration of Certain Programs.--In developing the 
     plan under subsection (a), the Secretary shall consider the 
     inclusion of the following types of programs:
       (1) A program to enroll students who already possess an 
     associate degree in nursing so that they can earn a bachelor 
     of science in nursing.
       (2) A program to enroll students who already possess other 
     associate degrees so that they can earn a bachelor of science 
     in nursing.
       (3) A program to enroll students who already possess an 
     associate degree in nursing so that they can earn a master of 
     science in nursing.
       (4) A program to enroll students who already possess a 
     bachelor of science in nursing so that they can earn a master 
     of science in nursing.
       (d) Other Considerations.--The plan required by subsection 
     (a) shall also include the following:
       (1) The results of a study of the nursing shortage in the 
     Department of Defense and the reasons for such shortages.
       (2) Details of the curriculum and degree requirements for 
     each category of students at the School of Nursing, if 
     established.
       (3) An analysis of the contributions to overall medical 
     readiness that will be made by the School of Nursing.
       (4) Proposals for the development of the School of Nursing 
     to be phased in over a period of time.
       (5) Faculty requirements based on degree requirements and 
     numbers of projected students, to include the source and 
     number of faculty required.
       (6) Projected number of graduates per year for each of the 
     first 15 years of operation.
       (7) Predicted accession sources, military career paths, and 
     service commitments and retention rates of School of Nursing 
     graduates, to include the retention of enlisted personnel 
     accessed into the school.
       (8) Administrative and instructional facilities required, 
     and the likely initial and final location of clinical 
     training institutions.
       (9) Plan for accreditation by nationally recognized nursing 
     school accrediting body.
       (10) Projected faculty, administration, instruction, and 
     facilities costs for the School of Nursing beginning in 
     fiscal year 2009 and continuing through fiscal year 2024, 
     including the cost analysis of developing a the School of 
     Nursing and the cost of additional administrative support for 
     the Uniformed Services University of the Health Sciences on 
     account of the establishment of the school.
       (e) Effect on Current Programs.--Notwithstanding the 
     development of the plan under subsection (a), the Secretary 
     shall ensure that graduate degree programs in nursing, 
     including advanced practice nursing, continue.
       (f) Effect on Other Recruitment Efforts.--Nothing in this 
     section shall be construed as limiting or terminating any 
     current or future program related to the recruitment, 
     accession, training, or retention of military nurses.
       (g) Establishment Authority.--
       (1) Establishment.--Chapter 104 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2117. School of Nursing

       ``(a) Establishment Authorized.--The Secretary of Defense 
     may establish a School of Nursing within the University. The 
     School of Nursing may include a program that awards a 
     bachelor of science in nursing.
       ``(b) Phased Development.--The School of Nursing may be 
     developed in phases as determined appropriate by the 
     Secretary.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2117. School of Nursing.''.

     SEC. 956. INCLUSION OF COMMANDERS OF WESTERN HEMISPHERE 
                   COMBATANT COMMANDS IN BOARD OF VISITORS OF 
                   WESTERN HEMISPHERE INSTITUTE FOR SECURITY 
                   COOPERATION.

       Subparagraph (F) of section 2166(e)(1) of title 10, United 
     States Code, is amended to read as follows:
       ``(F) The commanders of the combatant commands having 
     geographic responsibility for the Western Hemisphere, or the 
     designees of those officers.''.

     SEC. 957. COMPTROLLER GENERAL ASSESSMENT OF REORGANIZATION OF 
                   THE OFFICE OF THE UNDER SECRETARY OF DEFENSE 
                   FOR POLICY.

       (a) Assessment Required.--Not later than June 1, 2008, the 
     Comptroller General of the United States shall submit to the 
     congressional defense committees a report containing an 
     assessment of the most recent reorganization of the office of 
     the Under Secretary of Defense for Policy, including an 
     assessment with respect to the matters set forth in 
     subsection (b).
       (b) Matters To Be Assessed.--The matters to be included in 
     the assessment required by subsection (a) are as follows:
       (1) The manner in which the reorganization of the office 
     furthers, or will further, its stated purposes in the short-
     term and long-term, including the manner in which the 
     reorganization enhances, or will enhance, the ability of the 
     Department of Defense--
       (A) to address current security priorities, including on-
     going military operations in Iraq, Afghanistan, and 
     elsewhere;
       (B) to manage geopolitical defense relationships; and
       (C) to anticipate future strategic shifts in those 
     relationships.
       (2) The manner in which and the extent to which the 
     reorganization adheres to generally accepted principles of 
     effective organization, such as establishing clear goals, 
     identifying clear lines of authority and accountability, and 
     developing an effective human capital strategy.
       (3) The extent to which the Department has developed 
     detailed implementation plans for the reorganization, and the 
     current status of the implementation of all aspects of the 
     reorganization.
       (4) The extent to which the Department has worked to 
     mitigate congressional concerns and address other challenges 
     that have arisen since the reorganization was announced.
       (5) The manner in which the Department plans to evaluate 
     progress in achieving the stated goals of the reorganization 
     and what measurements, if any, the Department has established 
     to assess the results of the reorganization.
       (6) The impact of the large increase in responsibilities 
     for the Assistant Secretary of Defense for Special Operations 
     and Low Intensity Conflict and Interdependent Capabilities 
     under the reorganization on the ability of the Assistant 
     Secretary to carry out the principal duties of the Assistant 
     Secretary under law.
       (7) The possible decrease in attention given to special 
     operations issues resulting from the increase in 
     responsibilities for the Assistant Secretary of Defense for 
     Special Operations and Low Intensity Conflict and 
     Interdependent Capabilities, including responsibility under 
     the reorganization for each of the following:
       (A) Strategic capabilities.
       (B) Forces transformation.
       (C) Major budget programs.
       (8) The possible diffusion of attention from 
     counternarcotics, counterproliferation, and global threat 
     issues resulting from the merging of those responsibilities 
     under a single Deputy Assistant Secretary of Defense for 
     Counternarcotics, Counterproliferation, and Global Threats.
       (9) The impact of the reorganization on counternarcotics 
     program execution.
       (10) The unique placement under the reorganization of both 
     functional and regional issue responsibilities under the 
     Assistant Secretary of Defense for Homeland Defense and 
     Americas' Security Affairs.
       (11) The differentiation between the responsibilities of 
     the Deputy Assistant Secretary of Defense for Partnership 
     Strategy and the Deputy Assistant Secretary of Defense for 
     Coalition Affairs and the relationship between such 
     officials.

     SEC. 958. REPORT ON FOREIGN LANGUAGE PROFICIENCY.

       (a) In General.--Not later than 240 days after the date of 
     the enactment of this Act, and annually thereafter until the 
     date referred to in subsection (d), the Secretary of Defense, 
     in conjunction with the Secretary of each military 
     department, shall submit to the congressional defense 
     committees a report on the foreign language proficiency of 
     the personnel of the Department of Defense.
       (b) Contents.--Each report submitted under subsection (a) 
     shall include--
       (1) the number of positions, identified by each foreign 
     language and dialect, for each military department and 
     Defense Agency concerned that--
       (A) require proficiency in that foreign language or dialect 
     for the year in which the submission of the report is 
     required;
       (B) are anticipated to require proficiency in that foreign 
     language or dialect for each of the five years following the 
     date of the submission of the report; and
       (C) are authorized in the future-years defense plan to be 
     maintained for proficiency in a foreign language or dialect;
       (2) the number of personnel for each military department 
     and Defense Agency, identified by each foreign language and 
     dialect, that are serving in a position that requires 
     proficiency in the foreign language or dialect--
       (A) to perform the primary duty of the position; and
       (B) that meet the required level of proficiency of the 
     Interagency Language Roundtable;
       (3) the number of personnel for each military department 
     and Defense Agency, identified by each foreign language and 
     dialect, that are recruited or hired as accessions to serve 
     in a position that requires proficiency in the foreign 
     language or dialect;
       (4) the number of personnel for each military department 
     and Defense Agency, identified by each foreign language and 
     dialect, that served in a position that requires proficiency 
     in the foreign language or dialect and discontinued service 
     during the preceding calendar year;
       (5) the number of positions that require proficiency in a 
     foreign language or dialect that are fulfilled by 
     contractors;
       (6) the percentage of work requiring linguistic skills that 
     is fulfilled by personnel of the intelligence community (as 
     defined in section 3(4) of the National Security Act of 1947 
     (50 U.S.C. 401a(4))); and
       (7) an assessment of the foreign language capacity and 
     capabilities of each military department and Defense Agency 
     and of the Department of Defense as a whole.
       (c) Non-Military Personnel.--Except as provided in 
     paragraphs (6) and (7) of subsection

[[Page 32601]]

     (b), a report submitted under subsection (a) shall cover only 
     members of the Armed Forces on active duty and reserve duty 
     assigned to the military departments concerned or to the 
     Department of Defense.
       (d) Termination of Requirement.--The duty to submit a 
     report under subsection (a) shall terminate on December 31, 
     2013.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
              fiscal year 2008.
Sec. 1003. Authorization of additional emergency supplemental 
              appropriations for fiscal year 2007.
Sec. 1004. Modification of fiscal year 2007 general transfer authority.
Sec. 1005. Financial management transformation initiative for the 
              Defense Agencies.
Sec. 1006. Repeal of requirement for two-year budget cycle for the 
              Department of Defense.

          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Limitation on leasing of vessels.
Sec. 1012. Policy relating to major combatant vessels of the strike 
              forces of the United States Navy.

                  Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority for joint task forces to provide 
              support to law enforcement agencies conducting counter-
              terrorism activities.
Sec. 1022. Expansion of authority to provide additional support for 
              counter-drug activities in certain foreign countries.
Sec. 1023. Report on counternarcotics assistance for the Government of 
              Haiti.

         Subtitle D--Miscellaneous Authorities and Limitations

Sec. 1031. Provision of Air Force support and services to foreign 
              military and state aircraft.
Sec. 1032. Department of Defense participation in Strategic Airlift 
              Capability Partnership.
Sec. 1033. Improved authority to provide rewards for assistance in 
              combating terrorism.
Sec. 1034. Support for non-Federal development and testing of material 
              for chemical agent defense.
Sec. 1035. Prohibition on sale of F-14 fighter aircraft and related 
              parts.

                          Subtitle E--Reports

Sec. 1041. Extension and modification of report relating to hardened 
              and deeply buried targets.
Sec. 1042. Report on joint modeling and simulation activities.
Sec. 1043. Renewal of submittal of plans for prompt global strike 
              capability.
Sec. 1044. Report on workforce required to support the nuclear missions 
              of the Navy and the Department of Energy.
Sec. 1045. Comptroller General report on Defense Finance and Accounting 
              Service response to Butterbaugh v. Department of Justice.
Sec. 1046. Study on size and mix of airlift force.
Sec. 1047. Report on feasibility of establishing a domestic military 
              aviation national training center.
Sec. 1048. Limited field user evaluations for combat helmet pad 
              suspension systems.
Sec. 1049. Study on national security interagency system.
Sec. 1050. Report on solid rocket motor industrial base.
Sec. 1051. Reports on establishment of a memorial for members of the 
              Armed Forces who died in the air crash in Bakers Creek, 
              Australia, and establishment of other memorials in 
              Arlington National Cemetery.

                       Subtitle F--Other Matters

Sec. 1061. Reimbursement for National Guard support provided to Federal 
              agencies.
Sec. 1062. Congressional Commission on the Strategic Posture of the 
              United States.
Sec. 1063. Technical and clerical amendments.
Sec. 1064. Repeal of certification requirement.
Sec. 1065. Maintenance of capability for space-based nuclear detection.
Sec. 1066. Sense of Congress regarding detainees at Naval Station, 
              Guantanamo Bay, Cuba.
Sec. 1067. A report on transferring individuals detained at Naval 
              Station, Guantanamo Bay, Cuba.
Sec. 1068. Repeal of provisions in section 1076 of Public Law 109-364 
              relating to use of Armed Forces in major public 
              emergencies.
Sec. 1069. Standards required for entry to military installations in 
              United States.
Sec. 1070. Revised nuclear posture review.
Sec. 1071. Termination of Commission on the Implementation of the New 
              Strategic Posture of the United States.
Sec. 1072. Security clearances; limitations.
Sec. 1073. Improvements in the process for the issuance of security 
              clearances.
Sec. 1074. Protection of certain individuals.
Sec. 1075. Modification of authorities on Commission to Assess the 
              Threat to the United States from Electromagnetic Pulse 
              Attack.
Sec. 1076. Sense of Congress on Small Business Innovation Research 
              Program.
Sec. 1077. Revision of proficiency flying definition.
Sec. 1078. Qualifications for public aircraft status of aircraft under 
              contract with the Armed Forces.
Sec. 1079. Communications with the Committees on Armed Services of the 
              Senate and the House of Representatives.
Sec. 1080. Retention of reimbursement for provision of reciprocal fire 
              protection services.
Sec. 1081. Pilot program on commercial fee-for-service air refueling 
              support for the Air Force.
Sec. 1082. Advisory panel on Department of Defense capabilities for 
              support of civil authorities after certain incidents.
Sec. 1083. Terrorism exception to immunity.
                     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 2008 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.--Except as provided in paragraph (3), the 
     total amount of authorizations that the Secretary may 
     transfer under the authority of this section may not exceed 
     $5,000,000,000.
       (3) Exception for transfers between military personnel 
     authorizations.--A transfer of funds between military 
     personnel authorizations under title IV shall not be counted 
     toward the dollar limitation in paragraph (2).
       (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. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED 
                   BUDGETS IN FISCAL YEAR 2008.

       (a) Fiscal Year 2008 Limitation.--The total amount 
     contributed by the Secretary of Defense in fiscal year 2008 
     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 2007, of funds appropriated for fiscal years 
     before fiscal year 2008 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), $1,031,000 
     for the Civil Budget.
       (2) Of the amount provided in section 301(1), $362,159,000 
     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. 1003. AUTHORIZATION OF ADDITIONAL EMERGENCY SUPPLEMENTAL 
                   APPROPRIATIONS FOR FISCAL YEAR 2007.

       Amounts authorized to be appropriated to the Department of 
     Defense for fiscal year 2007 in the John Warner National 
     Defense Authorization Act for Fiscal Year 2007 (Public Law 
     109-364) are hereby adjusted, with respect to any such

[[Page 32602]]

     authorized amount, by the amount by which appropriations 
     pursuant to such authorization are increased by a 
     supplemental appropriation or by a transfer of funds, or 
     decreased by a rescission, or any thereof, pursuant to the 
     U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and 
     Iraq Accountability Appropriations Act, 2007 (Public Law 110-
     28).

     SEC. 1004. MODIFICATION OF FISCAL YEAR 2007 GENERAL TRANSFER 
                   AUTHORITY.

       Section 1001(a) of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364; 
     120 Stat. 2371) is amended by adding at the end the following 
     new paragraph:
       ``(3) Exception for certain transfers.--The following 
     transfers of funds shall be not be counted toward the 
     limitation in paragraph (2) on the amount that may be 
     transferred under this section:
       ``(A) The transfer of funds to the Iraq Security Forces 
     Fund under reprogramming FY07-07-R PA.
       ``(B) The transfer of funds to the Joint Improvised 
     Explosive Device Defeat Fund under reprogramming FY07-11 PA.
       ``(C) The transfer of funds back from the accounts referred 
     to in subparagraphs (A) and (B) to restore the sources used 
     in the reprogrammings referred to in such subparagraphs.''.

     SEC. 1005. FINANCIAL MANAGEMENT TRANSFORMATION INITIATIVE FOR 
                   THE DEFENSE AGENCIES.

       (a) Financial Management Transformation Initiative.--
       (1) In general.--The Director of the Business 
     Transformation Agency of the Department of Defense shall 
     carry out an initiative for financial management 
     transformation in the Defense Agencies. The initiative shall 
     be known as the ``Defense Agencies Initiative'' (in this 
     section referred to as the ``Initiative'').
       (2) Scope of authority.--In carrying out the Initiative, 
     the Director of the Business Transformation Agency may 
     require the heads of the Defense Agencies to carry out 
     actions that are within the purpose and scope of the 
     Initiative.
       (b) Purposes.--The purposes of Initiative shall be as 
     follows:
       (1) To eliminate or replace financial management systems of 
     the Defense Agencies that are duplicative, redundant, or fail 
     to comply with the standards set forth in subsection (d).
       (2) To transform the budget, finance, and accounting 
     operations of the Defense Agencies to enable the Defense 
     Agencies to achieve accurate and reliable financial 
     information needed to support financial accountability and 
     effective and efficient management decisions.
       (c) Required Elements.--The Initiative shall include, to 
     the maximum extent practicable--
       (1) the utilization of commercial, off-the-shelf 
     technologies and web-based solutions;
       (2) a standardized technical environment and an open and 
     accessible architecture; and
       (3) the implementation of common business processes, shared 
     services, and common data structures.
       (d) Standards.--In carrying out the Initiative, the 
     Director of the Business Transformation Agency shall ensure 
     that the Initiative is consistent with--
       (1) the requirements of the Business Enterprise 
     Architecture and Transition Plan developed pursuant to 
     section 2222 of title 10, United States Code;
       (2) the Standard Financial Information Structure of the 
     Department of Defense;
       (3) the Federal Financial Management Improvement Act of 
     1996 (and the amendments made by that Act); and
       (4) other applicable requirements of law and regulation.
       (e) Scope.--The Initiative shall be designed to provide, at 
     a minimum, capabilities in the major process areas for both 
     general fund and working capital fund operations of the 
     Defense Agencies as follows:
       (1) Budget formulation.
       (2) Budget to report, including general ledger and trial 
     balance.
       (3) Procure to pay, including commitments, obligations, and 
     accounts payable.
       (4) Order to fulfill, including billing and accounts 
     receivable.
       (5) Cost accounting.
       (6) Acquire to retire (account management).
       (7) Time and attendance and employee entitlement.
       (8) Grants financial management.
       (f) Consultation.--In carrying out subsections (d) and (e), 
     the Director of the Business Transformation Agency shall 
     consult with the Comptroller of the Department of Defense to 
     ensure that any financial management systems developed for 
     the Defense Agencies, and any changes to the budget, finance, 
     and accounting operations of the Defense Agencies, are 
     consistent with the financial standards and requirements of 
     the Department of Defense.
       (g) Program Control.--In carrying out the Initiative, the 
     Director of the Business Transformation Agency shall 
     establish--
       (1) a board (to be known as the ``Configuration Control 
     Board'') to manage scope and cost changes to the Initiative; 
     and
       (2) a program management office (to be known as the 
     ``Program Management Office'') to control and enforce 
     assumptions made in the acquisition plan, the cost estimate, 
     and the system integration contract for the Initiative, as 
     directed by the Configuration Control Board.
       (h) Plan on Development and Implementation of Initiative.--
     Not later than six months after the date of the enactment of 
     this Act, the Director of the Business Transformation Agency 
     shall submit to the congressional defense committees a plan 
     for the development and implementation of the Initiative. The 
     plan shall provide for the implementation of an initial 
     capability under the Initiative as follows:
       (1) In at least one Defense Agency by not later than eight 
     months after the date of the enactment of this Act.
       (2) In not less than five Defense Agencies by not later 
     than 18 months after the date of the enactment of this Act.

     SEC. 1006. REPEAL OF REQUIREMENT FOR TWO-YEAR BUDGET CYCLE 
                   FOR THE DEPARTMENT OF DEFENSE.

       Section 1405 of the Department of Defense Authorization 
     Act, 1986 (Public Law 99-145; 99 Stat. 744; 31 U.S.C. 1105 
     note) is repealed.
          Subtitle B--Policy Relating to Vessels and Shipyards

     SEC. 1011. LIMITATION ON LEASING OF VESSELS.

       Section 2401 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(h) The Secretary of a military department may make a 
     contract for the lease of a vessel or for the provision of a 
     service through use by a contractor of a vessel, the term of 
     which is for a period of greater than two years, but less 
     than five years, only if--
       ``(1) the Secretary has notified the Committee on Armed 
     Services and the Committee on Appropriations of the Senate 
     and the Committee on Armed Services and the Committee on 
     Appropriations of the House of Representatives of the 
     proposed contract and included in such notification--
       ``(A) a detailed description of the terms of the proposed 
     contract and a justification for entering into the proposed 
     contract rather than obtaining the capability provided for by 
     the lease, charter, or services involved through purchase of 
     the vessel;
       ``(B) a determination that entering into the proposed 
     contract as a means of obtaining the vessel is the most cost-
     effective means of obtaining such vessel; and
       ``(C) a plan for meeting the requirement provided by the 
     proposed contract upon completion of the term of the lease 
     contract; and
       ``(2) a period of 30 days of continuous session of Congress 
     has expired following the date on which notice was received 
     by such committees.''.

     SEC. 1012. POLICY RELATING TO MAJOR COMBATANT VESSELS OF THE 
                   STRIKE FORCES OF THE UNITED STATES NAVY.

       (a) Integrated Nuclear Power Systems.--It is the policy of 
     the United States to construct the major combatant vessels of 
     the strike forces of the United States Navy, including all 
     new classes of such vessels, with integrated nuclear power 
     systems.
       (b) Requirement to Request Nuclear Vessels.--If a request 
     is submitted to Congress in the budget for a fiscal year for 
     construction of a new class of major combatant vessel for the 
     strike forces of the United States, the request shall be for 
     such a vessel with an integrated nuclear power system, unless 
     the Secretary of Defense submits with the request a 
     notification to Congress that the inclusion of an integrated 
     nuclear power system in such vessel is not in the national 
     interest.
       (c) Definitions.--In this section:
       (1) Major combatant vessels of the strike forces of the 
     united states navy.--The term ``major combatant vessels of 
     the strike forces of the United States Navy'' means the 
     following:
       (A) Submarines.
       (B) Aircraft carriers.
       (C) Cruisers, battleships, or other large surface 
     combatants whose primary mission includes protection of 
     carrier strike groups, expeditionary strike groups, and 
     vessels comprising a sea base.
       (2) Integrated nuclear power system.--The term ``integrated 
     nuclear power system'' means a ship engineering system that 
     uses a naval nuclear reactor as its energy source and 
     generates sufficient electric energy to provide power to the 
     ship's electrical loads, including its combat systems and 
     propulsion motors.
       (3) Budget.--The term ``budget'' means the budget that is 
     submitted to Congress by the President under section 1105(a) 
     of title 31, United States Code.
                  Subtitle C--Counter-Drug Activities

     SEC. 1021. EXTENSION OF AUTHORITY FOR JOINT TASK FORCES TO 
                   PROVIDE SUPPORT TO LAW ENFORCEMENT AGENCIES 
                   CONDUCTING COUNTER-TERRORISM ACTIVITIES.

       Section 1022(b) of the National Defense Authorization Act 
     for Fiscal Year 2004 (Public Law 108-136; 10 U.S.C. 371 note) 
     is amended by striking ``and 2007'' and inserting ``through 
     2008''.

     SEC. 1022. EXPANSION OF AUTHORITY TO PROVIDE ADDITIONAL 
                   SUPPORT FOR COUNTER-DRUG ACTIVITIES IN CERTAIN 
                   FOREIGN COUNTRIES.

       Subsection (b) 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(b) of the 
     National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136, 117 Stat. 1593) and section 1022(b) of 
     the John Warner National Defense Authorization Act for Fiscal 
     Year 2007 (Public Law 109-364; 120 Stat. 2382), is further 
     amended by adding at the end the following new paragraphs:
       ``(17) The Government of Mexico.
       ``(18) The Government of the Dominican Republic.''.

     SEC. 1023. REPORT ON COUNTERNARCOTICS ASSISTANCE FOR THE 
                   GOVERNMENT OF HAITI.

       (a) Report Required.--Not later than 120 days after the 
     date of the enactment of this Act,

[[Page 32603]]

     the President shall submit to Congress a report on 
     counternarcotics assistance for the Government of Haiti.
       (b) Matters to Be Included.--The report required by 
     subsection (a) shall include the following:
       (1) A description and assessment of the counternarcotics 
     assistance provided to the Government of Haiti by the 
     Department of Defense, the Department of State, the 
     Department of Homeland Security, and the Department of 
     Justice.
       (2) A description and assessment of any impediments to 
     increasing counternarcotics assistance to the Government of 
     Haiti.
       (3) An assessment of the potential for the provision of 
     counternarcotics assistance for the Government of Haiti 
     through the United Nations Stabilization Mission in Haiti.
       (c) Form.--The report required by subsection (a) shall be 
     submitted in unclassified form, but may include a classified 
     annex.
         Subtitle D--Miscellaneous Authorities and Limitations

     SEC. 1031. PROVISION OF AIR FORCE SUPPORT AND SERVICES TO 
                   FOREIGN MILITARY AND STATE AIRCRAFT.

       (a) Provision of Support and Services.--
       (1) In general.--Section 9626 of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 9626. Aircraft supplies and services: foreign military 
       or other state aircraft

       ``(a) Provision of Supplies and Services on Reimbursable 
     Basis.--(1) The Secretary of the Air Force may, under such 
     regulations as the Secretary may prescribe and when in the 
     best interests of the United States, provide any of the 
     supplies or services described in paragraph (2) to military 
     and other state aircraft of a foreign country, on a 
     reimbursable basis without an advance of funds, if similar 
     supplies and services are furnished on a like basis to 
     military aircraft and other state aircraft of the United 
     States by the foreign country concerned.
       ``(2) The supplies and services described in this paragraph 
     are supplies and services as follows:
       ``(A) Routine airport services, including landing and 
     takeoff assistance, servicing aircraft with fuel, use of 
     runways, parking and servicing, and loading and unloading of 
     baggage and cargo.
       ``(B) Miscellaneous supplies, including Air Force-owned 
     fuel, provisions, spare parts, and general stores, but not 
     including ammunition.
       ``(b) Provision of Routine Airport Services on Non-
     Reimbursable Basis.--(1) Routine airport services may be 
     provided under this section at no cost to a foreign country--
       ``(A) if such services are provided by Air Force personnel 
     and equipment without direct cost to the Air Force; or
       ``(B) if such services are provided under an agreement with 
     the foreign country that provides for the reciprocal 
     furnishing by the foreign country of routine airport 
     services, as defined in that agreement, to military and other 
     state aircraft of the United States without reimbursement.
       ``(2) If routine airport services are provided under this 
     section by a working-capital fund activity of the Air Force 
     under section 2208 of this title and such activity is not 
     reimbursed directly for the costs incurred by the activity in 
     providing such services by reason of paragraph (1)(B), the 
     working-capital fund activity shall be reimbursed for such 
     costs out of funds currently available to the Air Force for 
     operation and maintenance.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 939 of such title is amended by striking 
     the item relating to section 9626 and inserting the following 
     new item:

``9626. Aircraft supplies and services: foreign military or other state 
              aircraft.''.

       (b) Conforming Amendment.--Section 9629(3) of such title is 
     amended by striking ``for aircraft of a foreign military or 
     air attache''.

     SEC. 1032. DEPARTMENT OF DEFENSE PARTICIPATION IN STRATEGIC 
                   AIRLIFT CAPABILITY PARTNERSHIP.

       (a) Authority To Participate in Partnership.--
       (1) Memorandum of understanding .--The Secretary of Defense 
     may enter into a multilateral memorandum of understanding 
     authorizing the Strategic Airlift Capability Partnership to 
     conduct activities necessary to accomplish its purpose, 
     including--
       (A) the acquisition, equipping, ownership, and operation of 
     strategic airlift aircraft; and
       (B) the acquisition or transfer of airlift and airlift-
     related services and supplies among members of the Strategic 
     Airlift Capability Partnership, or between the Partnership 
     and non-member countries or international organizations, on a 
     reimbursable basis or by replacement-in-kind or exchange of 
     airlift or airlift-related services of an equal value.
       (2) Payments.--From funds available to the Department of 
     Defense for such purpose, the Secretary of Defense may pay 
     the United States equitable share of the recurring and non-
     recurring costs of the activities and operations of the 
     Strategic Airlift Capability Partnership, including costs 
     associated with procurement of aircraft components and spare 
     parts, maintenance, facilities, and training, and the costs 
     of claims.
       (b) Authorities Under Partnership.--In carrying out the 
     memorandum of understanding entered into under subsection 
     (a), the Secretary of Defense may do the following:
       (1) Waive reimbursement of the United States for the cost 
     of the following functions performed by Department of Defense 
     personnel with respect to the Strategic Airlift Capability 
     Partnership:
       (A) Auditing.
       (B) Quality assurance.
       (C) Inspection.
       (D) Contract administration.
       (E) Acceptance testing.
       (F) Certification services.
       (G) Planning, programming, and management services.
       (2) Waive the imposition of any surcharge for 
     administrative services provided by the United States that 
     would otherwise be chargeable against the Strategic Airlift 
     Capability Partnership.
       (3) Pay the salaries, travel, lodging, and subsistence 
     expenses of Department of Defense personnel assigned for duty 
     to the Strategic Airlift Capability Partnership without 
     seeking reimbursement or cost-sharing for such expenses.
       (c) Crediting of Receipts.--Any amount received by the 
     United States in carrying out the memorandum of understanding 
     entered into under subsection (a) shall be credited, as 
     elected by the Secretary of Defense, to the following:
       (1) The appropriation, fund, or account used in incurring 
     the obligation for which such amount is received.
       (2) An appropriation, fund, or account currently providing 
     funds for the purposes for which such obligation was made.
       (d) Authority To Transfer Aircraft.--
       (1) Transfer authority.--The Secretary of Defense may 
     transfer one strategic airlift aircraft to the Strategic 
     Airlift Capability Partnership in accordance with the terms 
     and conditions of the memorandum of understanding entered 
     into under subsection (a).
       (2) Report.--Not later than 30 days before the date on 
     which the Secretary transfers a strategic airlift aircraft 
     under paragraph (1), the Secretary shall submit to the 
     congressional defense committees a report on the strategic 
     airlift aircraft to be transferred, including the type of 
     strategic airlift aircraft to be transferred and the tail 
     registration or serial number of such aircraft.
       (e) Strategic Airlift Capability Partnership Defined.--In 
     this section the term ``Strategic Airlift Capability 
     Partnership'' means the strategic airlift capability 
     consortium established by the United States and other 
     participating countries.

     SEC. 1033. IMPROVED AUTHORITY TO PROVIDE REWARDS FOR 
                   ASSISTANCE IN COMBATING TERRORISM.

       (a) Increased Amounts.--Section 127b of title 10, United 
     States Code, is amended--
       (1) in subsection (b), by striking ``$200,000'' and 
     inserting ``$5,000,000'';
       (2) in subsection (c)(1)(B), by striking ``$50,000'' and 
     inserting ``$1,000,000''; and
       (3) in subsection (d)(2), by striking ``$100,000'' and 
     inserting ``$2,000,000''.
       (b) Involvement of Allied Forces.--Such section is further 
     amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by inserting 
     after ``United States Government personnel'' the following: 
     ``, or government personnel of allied forces participating in 
     a combined operation with the armed forces,'';
       (B) in paragraph (1), by inserting after ``armed forces'' 
     the following: ``, or of allied forces participating in a 
     combined operation with the armed forces,''; and
       (C) in paragraph (2), by inserting after ``armed forces'' 
     the following: ``, or of allied forces participating in a 
     combined operation with the armed forces''; and
       (2) in subsection (c), by adding at the end the following:
       ``(3)(A) Subject to subparagraphs (B) and (C), an official 
     who has authority delegated under paragraph (1) or (2) may 
     use that authority, acting through government personnel of 
     allied forces, to offer and make rewards.
       ``(B) The Secretary of Defense shall prescribe policies and 
     procedures for making rewards in the manner described in 
     subparagraph (A), which shall include guidance for the 
     accountability of funds used for making rewards in that 
     manner. The policies and procedures shall not take effect 
     until 30 days after the date on which the Secretary submits 
     the policies and procedures to the congressional defense 
     committees. Rewards may not be made in the manner described 
     in subparagraph (A) except under policies and procedures that 
     have taken effect.
       ``(C) Rewards may not be made in the manner described in 
     subparagraph (A) after September 30, 2009.
       ``(D) Not later than April 1, 2008, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report on the implementation of this paragraph. The report 
     shall identify each reward made in the manner described in 
     subparagraph (A) and, for each such reward--
       ``(i) identify the type, amount, and recipient of the 
     reward;
       ``(ii) explain the reason for making the reward; and
       ``(iii) assess the success of the reward in advancing the 
     effort to combat terrorism.''.
       (c) Annual Report to Include Specific Information on 
     Additional Authority.--Section 127b of title 10, United 
     States Code, is further amended in subsection (f)(2) by 
     adding at the end the following new subparagraph:
       ``(D) Information on the implementation of paragraph (3) of 
     subsection (c).''.

     SEC. 1034. SUPPORT FOR NON-FEDERAL DEVELOPMENT AND TESTING OF 
                   MATERIAL FOR CHEMICAL AGENT DEFENSE.

       (a) Authority to Provide Toxic Chemicals or Precursors.--

[[Page 32604]]

       (1) In general.--The Secretary of Defense, in coordination 
     with the heads of other elements of the Federal Government, 
     may make available, to a State, a unit of local government, 
     or a private entity incorporated in the United States, small 
     quantities of a toxic chemical or precursor for the 
     development or testing, in the United States, of material 
     that is designed to be used for protective purposes.
       (2) Terms and conditions.--Any use of the authority under 
     paragraph (1) shall be subject to such terms and conditions 
     as the Secretary considers appropriate.
       (b) Payment of Costs and Disposition of Funds.--
       (1) In general.--The Secretary shall ensure, through the 
     advance payment required by paragraph (2) and through any 
     other payments that may be required, that a recipient of 
     toxic chemicals or precursors under subsection (a) pays for 
     all actual costs, including direct and indirect costs, 
     associated with providing the toxic chemicals or precursors.
       (2) Advance payment.--In carrying out paragraph (1), the 
     Secretary shall require each recipient to make an advance 
     payment in an amount that the Secretary determines will equal 
     all such actual costs.
       (3) Credits.--A payment received under this subsection 
     shall be credited to the account that was used to cover the 
     costs for which the payment 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.
       (c) Chemical Weapons Convention.--The Secretary shall 
     ensure that toxic chemicals and precursors are made available 
     under this section for uses and in quantities that comply 
     with the Convention on the Prohibition of the Development, 
     Production, Stockpiling and Use of Chemical Weapons and on 
     Their Destruction, signed at Paris on January 13, 1993, and 
     entered into force with respect to the United States on April 
     29, 1997.
       (d) Report.--
       (1) Not later than March 15, 2008, and each year 
     thereafter, the Secretary shall submit to Congress a report 
     on the use of the authority under subsection (a) during the 
     previous calendar year. The report shall include a 
     description of each use of the authority and specify what 
     material was made available and to whom it was made 
     available.
       (2) Each report under paragraph (1) shall be submitted in 
     unclassified form, but may include a classified annex.
       (e) Definitions.--In this section, the terms ``precursor'', 
     ``protective purposes'', and ``toxic chemical'' have the 
     meanings given those terms in the convention referred to in 
     subsection (c), in paragraph 2, paragraph 9(b), and paragraph 
     1, respectively, of article II of that convention.

     SEC. 1035. PROHIBITION ON SALE OF F-14 FIGHTER AIRCRAFT AND 
                   RELATED PARTS.

       (a) Prohibition on Sale by Department of Defense.--
       (1) In general.--Except as provided in paragraph (2), the 
     Department of Defense may not sell (whether directly or 
     indirectly) any F-14 fighter aircraft, any parts unique to 
     the F-14 fighter aircraft, or any tooling or dies used in the 
     manufacture of such aircraft or parts, whether such sales 
     occur through the Defense Reutilization and Marketing Service 
     or through another agency or element of the Department.
       (2) Exception.--Paragraph (1) shall not apply with respect 
     to the sale of F-14 fighter aircraft or parts for F-14 
     fighter aircraft to a museum or similar organization located 
     in the United States that is involved in the preservation of 
     F-14 fighter aircraft for historical purposes.
       (b) Prohibition on Export License.--No license for the 
     export of any F-14 fighter aircraft, any parts unique to the 
     F-14 fighter aircraft, or any tooling or dies used in the 
     manufacture of such aircraft or parts may be issued by the 
     United States Government to a non-United States person or 
     entity.
                          Subtitle E--Reports

     SEC. 1041. EXTENSION AND MODIFICATION OF REPORT RELATING TO 
                   HARDENED AND DEEPLY BURIED TARGETS.

       Section 1032 of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314; 
     116 Stat. 2643; 10 U.S.C. 2358 note) is amended--
       (1) in the heading, by striking ``ANNUAL REPORT ON 
     WEAPONS'' and inserting ``REPORT ON WEAPONS AND 
     CAPABILITIES'';
       (2) in subsection (a)--
       (A) in the heading, by striking ``Annual'';
       (B) by striking ``April 1 of each year'' and inserting 
     ``March 1, 2009, and every two years thereafter,'';
       (C) by striking ``Director of Central Intelligence'' and 
     inserting ``Director of National Intelligence'';
       (D) by striking ``the preceding fiscal year'' and inserting 
     ``the preceding two fiscal years and planned for the current 
     fiscal year and the next fiscal year''; and
       (E) by striking ``to develop weapons'' and inserting ``to 
     develop weapons and capabilities'';
       (3) in subsection (b)--
       (A) in the matter preceding paragraph (1), by striking 
     ``The report for a fiscal year'' and inserting ``A report 
     submitted'';
       (B) in paragraph (1), by striking ``were undertaken during 
     that fiscal year'' and inserting ``were or will be undertaken 
     during the four-fiscal-year period covered by the report''; 
     and
       (C) in paragraph (2) in the matter preceding subparagraph 
     (A), by striking ``were undertaken during such fiscal year'' 
     and inserting ``were or will be undertaken during the four-
     fiscal-year period covered by the report''; and
       (4) in subsection (d), by striking ``April 1, 2007'' and 
     inserting ``March 1, 2013''.

     SEC. 1042. REPORT ON JOINT MODELING AND SIMULATION 
                   ACTIVITIES.

       (a) Report Required.--Not later than December 31, 2008, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report that describes current and 
     planned joint modeling and simulation activities within the 
     Department of Defense.
       (b) Matters to Be Included.--The report under subsection 
     (a) shall include the following:
       (1) An identification and description of how joint modeling 
     and simulation activities support the development of 
     capabilities to meet joint and service-unique military 
     requirements and needs, in areas including but not limited to 
     joint training, experimentation, systems acquisition, test 
     and evaluation, assessment, and planning.
       (2) A description of how joint modeling and simulation 
     activities are supportive of Department-level strategies and 
     goals.
       (3) For each appropriate element of the Department of 
     Defense and each appropriate combatant command--
       (A) An identification of modeling and simulation 
     capabilities; and
       (B) A description of plans and programs to continuously 
     introduce new modeling and simulation technologies so as to 
     enhance defense capabilities.
       (4) A description of incentives and plans to reduce or 
     divest duplicative or outdated capabilities as necessary.
       (5) Plans or activities to allow non-defense users to 
     access defense joint modeling and simulation activities, as 
     appropriate.
       (6) Budget and resource estimates, including government and 
     contractor personnel requirements, for planned joint modeling 
     and simulation activities.
       (7) A description of the relationship and coordination 
     between and among joint modeling and simulation activities 
     and the modeling and simulation activities of elements of the 
     Department of Defense, Federal agencies, State and local 
     governments, academia, private industry, United States and 
     international standards organizations, and international 
     partners.
       (8) Any other matters the Secretary considers appropriate.
       (c) Consultation.--The report under (a) shall be developed 
     in consultation with appropriate military departments, 
     Defense Agencies, combatant commands, and other defense 
     activities.

     SEC. 1043. RENEWAL OF SUBMITTAL OF PLANS FOR PROMPT GLOBAL 
                   STRIKE CAPABILITY.

       Section 1032(b)(1) of the National Defense Authorization 
     Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1605; 
     10 U.S.C. 113 note) is amended by inserting ``and each of 
     2007, 2008, and 2009,'' after ``2004, 2005, and 2006,''.

     SEC. 1044. REPORT ON WORKFORCE REQUIRED TO SUPPORT THE 
                   NUCLEAR MISSIONS OF THE NAVY AND THE DEPARTMENT 
                   OF ENERGY.

       (a) In General.--Not later than one year after the date of 
     the enactment of this Act, the Secretary of Defense and the 
     Secretary of Energy shall each submit to Congress a report on 
     the requirements for a workforce to support the nuclear 
     missions of the Navy and the Department of Energy during the 
     10-year period beginning on the date of the report.
       (b) Elements.--Each report shall include--
       (1) a description of the projected nuclear missions of the 
     Navy and the Department of Energy during the 10-year period 
     beginning on the date of the report;
       (2) an assessment of existing knowledge retention programs 
     within the Department of Defense, the Department of Energy, 
     the national laboratories, and federally funded research 
     facilities that support the nuclear missions of the Navy and 
     the Department of Energy, and any planned changes in those 
     programs; and
       (3) a plan to address anticipated workforce attrition, 
     retirement, and recruiting trends during that period and 
     ensure an adequate workforce in support of the nuclear 
     missions of the Navy and the Department of Energy.

     SEC. 1045. COMPTROLLER GENERAL REPORT ON DEFENSE FINANCE AND 
                   ACCOUNTING SERVICE RESPONSE TO BUTTERBAUGH V. 
                   DEPARTMENT OF JUSTICE.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall submit to the congressional defense 
     committees a report setting forth an assessment by the 
     Comptroller General of the response of the Defense Finance 
     and Accounting Service to the decision in Butterbaugh v. 
     Department of Justice (336 F.3d 1332 (2003)).
       (b) Elements.--The report required by subsection (a) shall 
     include the following:
       (1) An estimate of the number of members of the reserve 
     components of the Armed Forces, both past and present, who 
     are entitled to compensation under the decision in 
     Butterbaugh v. Department of Justice.
       (2) An assessment of the current policies, procedures, and 
     timeliness of the Defense Finance and Accounting Service in 
     implementing and resolving claims under the decision in 
     Butterbaugh v. Department of Justice.
       (3) An assessment whether or not the decisions made by the 
     Defense Finance and Accounting Service in implementing the 
     decision in Butterbaugh v. Department of Justice follow a 
     consistent pattern of resolution.

[[Page 32605]]

       (4) An assessment of whether or not the decisions made by 
     the Defense Finance and Accounting Service in implementing 
     the decision in Butterbaugh v. Department of Justice are 
     resolving claims by providing more compensation than an 
     individual has been able to prove, under the rule of 
     construction that laws providing benefits to veterans are 
     liberally construed in favor of the veteran.
       (5) An estimate of the total amount of compensation payable 
     to members of the reserve components of the Armed Forces, 
     both past and present, as a result of the recent decision in 
     Hernandez v. Department of the Air Force (No. 2006-3375, slip 
     op.) that leave can be reimbursed for Reserve service before 
     1994, when Congress enacted chapter 43 of title 38, United 
     States Code (commonly referred to as the ``Uniformed Services 
     Employment and Reemployment Rights Act'').
       (6) A comparative assessment of the handling of claims by 
     the Defense Finance and Accounting Service under the decision 
     in Butterbaugh v. Department of Justice with the handling of 
     claims by other Federal agencies (selected by the Comptroller 
     General for purposes of the comparative assessment) under 
     that decision.
       (7) A statement of the number of claims by members of the 
     reserve components of the Armed Forces under the decision in 
     Butterbaugh v. Department of Justice that have been 
     adjudicated by the Defense Finance and Accounting Service.
       (8) A statement of the number of claims by members of the 
     reserve components of the Armed Forces under the decision in 
     Butterbaugh v. Department of Justice that have been denied by 
     the Defense Finance and Accounting Service.
       (9) A comparative assessment of the average amount of time 
     required for the Defense Finance and Accounting Service to 
     resolve a claim under the decision in Butterbaugh v. 
     Department of Justice with the average amount of time 
     required by other Federal agencies (as so selected) to 
     resolve a claim under that decision.
       (10) A comparative statement of the backlog of claims with 
     the Defense Finance and Accounting Service under the decision 
     in Butterbaugh v. Department of Justice with the backlog of 
     claims of other Federal agencies (as so selected) under that 
     decision.
       (11) An estimate of the amount of time required for the 
     Defense Finance and Accounting Service to resolve all 
     outstanding claims under the decision in Butterbaugh v. 
     Department of Justice.
       (12) An assessment of the reasonableness of the requirement 
     of the Defense Finance and Accounting Service for the 
     submittal by members of the reserve components of the Armed 
     Forces of supporting documentation for claims under the 
     decision in Butterbaugh v. Department of Justice.
       (13) A comparative assessment of the requirement of the 
     Defense Finance and Accounting Service for the submittal by 
     members of the reserve components of the Armed Forces of 
     supporting documentation for claims under the decision in 
     Butterbaugh v. Department of Justice with the requirement of 
     other Federal agencies (as so selected) for the submittal by 
     such members of supporting documentation for such claims.
       (14) Such recommendations for legislative action as the 
     Comptroller General considers appropriate in light of the 
     decision in Butterbaugh v. Department of Justice and the 
     decision in Hernandez v. Department of the Air Force.

     SEC. 1046. STUDY ON SIZE AND MIX OF AIRLIFT FORCE.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a requirements-based study on alternatives for the proper 
     size and mix of fixed-wing intratheater and intertheater 
     airlift assets to meet the National Military Strategy for 
     each of the following timeframes: fiscal year 2012, 2018, and 
     2024. The study shall--
       (1) focus on organic and commercially programmed airlift 
     capabilities;
       (2) analyze the full-spectrum lifecycle costs of the 
     various alternatives for organic models of each of the 
     following aircraft: C-5A/B/C/M, C-17A, KC-X, KC-10, KC-135R, 
     C-130E/H/J, Joint Cargo Aircraft; and
       (3) incorporate the augmentation capability, viability, and 
     feasibility of the Civil Reserve Air Fleet during activation 
     stages I, II, and III.
       (b) Use of FFRDC.--The Secretary shall select, to carry out 
     the study required by subsection (a), a federally funded 
     research and development center that has experience and 
     expertise in conducting similar studies.
       (c) Study Plan.--The study required by subsection (a) shall 
     be carried out under a study plan. The study plan shall be 
     developed as follows:
       (1) The center selected under subsection (b) shall develop 
     the study plan and shall, not later than 60 days after the 
     date of enactment of this Act, submit the study plan to the 
     congressional defense committees, the Secretary, and the 
     Comptroller General of the United States.
       (2) The Comptroller General shall review the study plan to 
     determine whether it is complete and objective, and whether 
     it has any flaws or weaknesses in scope or methodology, and 
     shall, not later than 30 days after receiving the study plan, 
     submit to the Secretary and the center a report that contains 
     the results of that review and provides any recommendations 
     that the Comptroller General considers appropriate for 
     improvements to the study plan.
       (3) The center shall modify the study plan to incorporate 
     the recommendations under paragraph (2) and shall, not later 
     than 45 days after receiving that report, submit to the 
     Secretary and the congressional defense committees a report 
     on those modifications. The report shall describe each 
     modification and, if the modifications do not incorporate one 
     or more of the recommendations, shall explain the reasons for 
     not doing so.
       (d) Elements of Study Plan.--The study plan required by 
     subsection (c) shall address, at minimum, the following:
       (1) A description of lift requirements and operating 
     profiles for airlift aircraft required to meet the National 
     Military Strategy, including assumptions regarding the 
     following:
       (A) Current and future military combat and support 
     missions.
       (B) The planned force structure growth of the military 
     services.
       (C) Potential changes in lift requirements, including the 
     deployment of the Future Combat Systems by the Army.
       (D) New capability in airlift to be provided by the KC(X) 
     aircraft and the expected utilization of such capability, 
     including its use in intratheater lift.
       (E) The utilization of intertheater lift aircraft in 
     intratheater combat mission support roles.
       (F) The availability and application of Civil Reserve Air 
     Fleet assets in future military scenarios.
       (G) Air mobility requirements associated with the Global 
     Rebasing Initiative of the Department of Defense.
       (H) Air mobility requirements in support of worldwide 
     peacekeeping and humanitarian missions.
       (I) Air mobility requirements in support of homeland 
     defense and national emergencies.
       (J) The viability and capability of the Civil Reserve Air 
     Fleet to augment organic forces in both friendly and hostile 
     environments.
       (K) An assessment of the Civil Reserve Air Fleet to 
     adequately augment the organic fleet as it relates to 
     commercial inventory management restructuring in response to 
     future commercial markets, streamlining of operations, 
     efficiency measures, or downsizing of the participant.
       (2) An evaluation of the state of the current airlift fleet 
     of the Air Force, including assessments of the following:
       (A) The extent to which the increased use of airlift 
     aircraft in on-going operations is affecting the programmed 
     service life of the aircraft of that fleet.
       (B) The adequacy of the current airlift force, including 
     whether or not a minimum of 299 strategic airlift aircraft 
     for the Air Force is sufficient to support future 
     expeditionary combat and non-combat missions, as well as 
     domestic and training mission demands consistent with the 
     requirements of meeting the National Military Strategy.
       (C) The optimal mix of C-5 and C-17 aircraft for the 
     strategic airlift fleet of the Air Force, to include the 
     following:
       (i) The cost-effectiveness of modernizing various 
     iterations of the C-5A and C-5B/C aircraft fleet versus 
     procuring additional C-17 aircraft.
       (ii) The military capability, operational availability, 
     usefulness, and service life of the C-5A/B/C/M aircraft and 
     the C-17 aircraft. Such an assessment shall examine 
     appropriate metrics, such as aircraft availability rates, 
     departure rates, and mission capable rates, in each of the 
     following cases:

       (I) Completion of the Avionics Modernization Program and 
     the Reliability Enhancement and Re-engining Program.
       (II) Partial completion of the Avionics Modernization 
     Program and the Reliability Enhancement and Re-engining 
     Program, with partial completion of either such program being 
     considered the point at which the continued execution of each 
     program is no longer supported by the cost-effectiveness 
     analysis.

       (iii) At what specific fleet inventory for each organic 
     aircraft, to include air refueling aircraft used in the 
     airlift role, would it impede the ability of Civil Reserve 
     Air Fleet participants to remain a viable augmentation 
     option.
       (D) An analysis and assessment of the lessons that may be 
     learned from the experience of the Air Force in restarting 
     the production line for the C-5 aircraft after having closed 
     the line for several years, and recommendations for the 
     actions that the Department of Defense should take to ensure 
     that the production line for the C-17 aircraft could be 
     restarted if necessary, including--
       (i) an analysis of the methods that were used and costs 
     that were incurred in closing and re-opening the production 
     line for the C-5 aircraft;
       (ii) an assessment of the methods and actions that should 
     be employed and the expected costs and risks of closing and 
     re-opening the production line for the C-17 aircraft in view 
     of that experience.
     Such analysis and assessment should deal with issues such as 
     production work force, production facilities, tooling, 
     industrial base suppliers, contractor logistics support 
     versus organic maintenance, and diminished manufacturing 
     sources.
       (E) Assessing the military capability, operational 
     availability, usefulness, service life and optimal mix of 
     intra-theater airlift aircraft, to include--
       (i) the cost-effectiveness of procuring the Joint Cargo 
     Aircraft versus procuring additional C-130J or refurbishing 
     C-130E/H platforms to meet intra-theater airlift requirements 
     of the combatant commander and component commands; and
       (ii) the cost-effectiveness of procuring additional C-17 
     aircraft versus procuring additional C-130J platforms or 
     refurbishing C-130E/H platforms to meet intra-theater airlift 
     requirements of the combatant commander and component 
     commands.

[[Page 32606]]

       (3) Each analysis required by paragraph (2) shall include--
       (A) a description of the assumptions and sensitivity 
     analysis utilized in the study regarding aircraft 
     performances and cargo loading factors; and
       (B) a comprehensive statement of the data and assumptions 
     utilized in making the program life cycle cost estimates and 
     a comparison of cost and risk associated with the optimally 
     mixed fleet of airlift aircraft versus the program of record 
     airlift aircraft fleet.
       (e) Utilization of Other Studies.--The study required by 
     subsection (a) shall build upon the results of the 2005 
     Mobility Capabilities Studies, the on-going Intratheater 
     Airlift Fleet Mix Analysis, the Intratheater Lift 
     Capabilities Study, the Joint Future Theater Airlift 
     Capabilities Analysis, and other appropriate studies and 
     analyses, such as Fleet Viability Board Reports or special 
     aircraft assessments. The study shall also include any 
     testing data collected on modernization, recapitalization, 
     and upgrade efforts of current organic aircraft.
       (f) Collaboration With United States Transportation 
     Command.--In conducting the study required by subsection (a) 
     and preparing the report required by subsection (c)(3), the 
     center shall collaborate with the commander of the United 
     States Transportation Command.
       (g) Collaboration With Cost Analysis Improvement Group.--In 
     conducting the study required by subsection (a) and 
     constructing the analysis required by subsection (a)(2), the 
     center shall collaborate with the Cost Analysis Improvement 
     Group of the Department of Defense.
       (h) Report.--Not later than January 10, 2009, the center 
     selected under subsection (b) shall submit to the Secretary 
     and the congressional defense committees a report on the 
     study required by subsection (a). The report shall be 
     submitted in unclassified form, but shall include a 
     classified annex.

     SEC. 1047. REPORT ON FEASIBILITY OF ESTABLISHING A DOMESTIC 
                   MILITARY AVIATION NATIONAL TRAINING CENTER.

       (a) In General.--Not later than June 1, 2008, the Secretary 
     of Defense shall submit to the congressional defense 
     committees a report to determine the feasibility of 
     establishing a Border State Aviation Training Center (BSATC) 
     to support the current and future requirements of the 
     existing RC-26 training site for counterdrug activities, 
     located at the Fixed Wing Army National Guard Aviation 
     Training Site (FWAATS), including the domestic reconnaissance 
     and surveillance missions of the National Guard in support of 
     local, State, and Federal law enforcement agencies, provided 
     that the activities to be conducted at the BSATC shall not 
     duplicate or displace any activity or program at the RC-26 
     training site or the FWAATS.
       (b) Content.--The report required under subsection (a) 
     shall--
       (1) examine the current and past requirements of RC-26 
     aircraft in support of local, State, and Federal law 
     enforcement and determine the number of additional aircraft 
     required to provide such support for each State that borders 
     Canada, Mexico, or the Gulf of Mexico;
       (2) determine the number of military and civilian personnel 
     required to run a RC-26 domestic training center meeting the 
     requirements identified under paragraph (1);
       (3) determine the requirements and cost of locating such a 
     training center at a military installation for the purpose of 
     preempting and responding to security threats and responding 
     to crises; and
       (4) include a comprehensive review of the number and type 
     of intelligence, reconnaissance, and surveillance platforms 
     needed for the National Guard to effectively provide domestic 
     operations and civil support (including homeland defense and 
     counterdrug) to local, State, and Federal law enforcement and 
     first responder entities and how those platforms would 
     provide additional capabilities not currently available from 
     the assets of other local, State, and Federal agencies.
       (c) Consultation.--In preparing the report required under 
     subsection (a), the Secretary of Defense shall consult with 
     the Adjutant General of each State that borders Canada, 
     Mexico, or the Gulf of Mexico, the Adjutant General of the 
     State of West Virginia, and the National Guard Bureau.

     SEC. 1048. LIMITED FIELD USER EVALUATIONS FOR COMBAT HELMET 
                   PAD SUSPENSION SYSTEMS.

       (a) In General.--The Secretary of Defense shall carry out a 
     limited field user evaluation and operational assessment of 
     qualified combat helmet pad suspension systems. The 
     evaluation and assessment shall be carried out using verified 
     product representative samples from combat helmet pad 
     suspension systems that are qualified as of the date of the 
     enactment of this Act.
       (b) Report.--Not later than September 30, 2008, the 
     Secretary shall submit to the congressional defense 
     committees a report on the results of the limited field user 
     evaluation and operational assessment.
       (c) Funding.--The limited field user evaluation and 
     operational assessment required by subsection (a) shall be 
     conducted using funds appropriated pursuant to an 
     authorization of appropriations or otherwise made available 
     for fiscal year 2008 for operation and maintenance, Army, for 
     soldier protection and safety.

     SEC. 1049. STUDY ON NATIONAL SECURITY INTERAGENCY SYSTEM.

       (a) Study Required.--Not later than 30 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     enter into an agreement with an independent, non-profit, non-
     partisan organization to conduct a study on the national 
     security interagency system.
       (b) Report.--The agreement entered into under subsection 
     (a) shall require the organization to submit to Congress and 
     the President a report containing the results of the study 
     conducted pursuant to such agreement and any recommendations 
     for changes to the national security interagency system 
     (including legislative or regulatory changes) identified by 
     the organization as a result of the study.
       (c) Submittal Date.--The agreement entered into under 
     subsection (a) shall require the organization to submit the 
     report required under subsection (a) not later than September 
     1, 2008.
       (d) National Security Interagency System Defined.--In this 
     section, the term ``national security interagency system'' 
     means the structures, mechanisms, and processes by which the 
     departments, agencies, and elements of the Federal Government 
     that have national security missions coordinate and integrate 
     their policies, capabilities, expertise, and activities to 
     accomplish such missions.
       (e) Funding.--Of the amount authorized to be appropriated 
     by section 301(5) for operation and maintenance for Defense-
     wide activities, not more than $3,000,000 may be available to 
     carry out this section.

     SEC. 1050. REPORT ON SOLID ROCKET MOTOR INDUSTRIAL BASE.

       (a) Report.--Not later than 190 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 
     status, capability, viability, and capacity of the solid 
     rocket motor industrial base in the United States.
       (b) Content.--The report required under subsection (a) 
     shall include the following:
       (1) An assessment of the ability to maintain the Minuteman 
     III intercontinental ballistic missile through its planned 
     operational life.
       (2) An assessment of the ability to maintain the Trident II 
     D-5 submarine launched ballistic missile through its planned 
     operational life.
       (3) An assessment of the ability to maintain all other 
     space launch, missile defense, and other vehicles with solid 
     rocket motors, through their planned operational lifetimes.
       (4) An assessment of the ability to support projected 
     future requirements for vehicles with solid rocket motors to 
     support space launch, missile defense, or any range of 
     ballistic missiles determined to be necessary to meet defense 
     needs or other requirements of the United States Government.
       (5) An assessment of the required materials, the supplier 
     base, the production facilities, and the production workforce 
     needed to ensure that current and future requirements could 
     be met.
       (6) An assessment of the adequacy of the current and 
     projected industrial base support programs to support the 
     full range of projected future requirements identified in 
     paragraph (4).

     SEC. 1051. REPORTS ON ESTABLISHMENT OF A MEMORIAL FOR MEMBERS 
                   OF THE ARMED FORCES WHO DIED IN THE AIR CRASH 
                   IN BAKERS CREEK, AUSTRALIA, AND ESTABLISHMENT 
                   OF OTHER MEMORIALS IN ARLINGTON NATIONAL 
                   CEMETERY.

       (a) Bakers Creek Memorial.--Not later than April 1, 2008, 
     the Secretary of the Army shall submit to the Committee on 
     Armed Services and the Committee on Veterans' Affairs of the 
     House of Representatives and the Committee on Armed Services 
     and the Committee on Veterans' Affairs of the Senate a report 
     containing a discussion of locations outside of Arlington 
     National Cemetery that would serve as a suitable location for 
     the establishment of a memorial to honor the memory of the 40 
     members of the Armed Forces of the United States who lost 
     their lives in the air crash at Bakers Creek, Australia, on 
     June 14, 1943.
       (b) Memorials in Arlington National Cemetery.--Not later 
     than April 1, 2008, the Secretary of the Army shall submit to 
     the congressional committees specified in subsection (a) a 
     report containing--
       (1) recommendations to implement the results of the study 
     regarding proposals for the construction of new memorials in 
     Arlington National Cemetery that was conducted pursuant to 
     section 2897 of the Ronald W. Reagan National Defense 
     Authorization Act for Fiscal Year 2005 (Public Law 108-375; 
     118 Stat. 2157); and
       (2) proposed legislation, if necessary, to implement the 
     results of the study.
                       Subtitle F--Other Matters

     SEC. 1061. REIMBURSEMENT FOR NATIONAL GUARD SUPPORT PROVIDED 
                   TO FEDERAL AGENCIES.

       Section 377 of title 10, United States Code, is amended--
       (1) in subsection (a), by striking ``To the extent'' and 
     inserting ``Subject to subsection (c), to the extent''; and
       (2) by striking subsection (b) and inserting the following 
     new subsections:
       ``(b)(1) Subject to subsection (c), the Secretary of 
     Defense shall require a Federal agency to which law 
     enforcement support or support to a national special security 
     event is provided by National Guard personnel performing duty 
     under section 502(f) of title 32 to reimburse the Department 
     of Defense for the costs of that support, notwithstanding any 
     other provision of law. No other provision of this chapter 
     shall apply to such support.
       ``(2) Any funds received by the Department of Defense under 
     this subsection as reimbursement for support provided by 
     personnel of the National Guard shall be credited, at the 
     election of the Secretary of Defense, to the following:
       ``(A) The appropriation, fund, or account used to fund the 
     support.

[[Page 32607]]

       ``(B) The appropriation, fund, or account currently 
     available for reimbursement purposes.
       ``(c) An agency to which support is provided under this 
     chapter or section 502(f) of title 32 is not required to 
     reimburse the Department of Defense for such support if the 
     Secretary of Defense waives reimbursement. The Secretary may 
     waive the reimbursement requirement under this subsection if 
     such support--
       ``(1) is provided in the normal course of military training 
     or operations; or
       ``(2) results in a benefit to the element of the Department 
     of Defense or personnel of the National Guard providing the 
     support that is substantially equivalent to that which would 
     otherwise be obtained from military operations or 
     training.''.

     SEC. 1062. CONGRESSIONAL COMMISSION ON THE STRATEGIC POSTURE 
                   OF THE UNITED STATES.

       (a) Establishment.--There is hereby established a 
     commission to be known as the ``Congressional Commission on 
     the Strategic Posture of the United States''. The purpose of 
     the commission is to examine and make recommendations with 
     respect to the long-term strategic posture of the United 
     States.
       (b) Composition.--
       (1) Membership.--The commission shall be composed of 12 
     members appointed as follows:
       (A) Three by the chairman of the Committee on Armed 
     Services of the House of Representatives.
       (B) Three by the ranking minority member of the Committee 
     on Armed Services of the House of Representatives.
       (C) Three by the chairman of the Committee on Armed 
     Services of the Senate.
       (D) Three by the ranking minority member of the Committee 
     on Armed Services of the Senate.
       (2) Chairman; vice chairman.--
       (A) Chairman.--The chairman of the Committee on Armed 
     Services of the House of Representatives and the chairman of 
     the Committee on Armed Services of the Senate shall jointly 
     designate one member of the commission to serve as chairman 
     of the commission.
       (B) Vice chairman.--The ranking minority member of the 
     Committee on Armed Services of the House of Representatives 
     and the ranking minority member of the Committee on Armed 
     Services of the Senate shall jointly designate one member of 
     the commission to serve as vice chairman of the commission.
       (3) Period of appointment; vacancies.--Members shall be 
     appointed for the life of the commission. Any vacancy in the 
     commission shall be filled in the same manner as the original 
     appointment.
       (c) Duties.--
       (1) Review.--The commission shall conduct a review of the 
     strategic posture of the United States, including a strategic 
     threat assessment and a detailed review of nuclear weapons 
     policy, strategy, and force structure.
       (2) Assessment and recommendations.--
       (A) Assessment.--The commission shall assess the benefits 
     and risks associated with the current strategic posture and 
     nuclear weapons policies of the United States.
       (B) Recommendations.--The commission shall make 
     recommendations as to the most appropriate strategic posture 
     and most effective nuclear weapons strategy.
       (d) Cooperation From Government.--
       (1) Cooperation.--In carrying out its duties, the 
     commission shall receive the full and timely cooperation of 
     the Secretary of Defense, the Secretary of Energy, the 
     Secretary of State, the Director of National Intelligence, 
     and any other United States Government official in providing 
     the commission with analyses, briefings, and other 
     information necessary for the fulfillment of its 
     responsibilities.
       (2) Liaison.--The Secretary of Defense, the Secretary of 
     Energy, the Secretary of State, and the Director of National 
     Intelligence shall each designate at least one officer or 
     employee of the Department of Defense, the Department of 
     Energy, the Department of State, and the intelligence 
     community, respectively, to serve as a liaison officer 
     between the department (or the intelligence community, as the 
     case may be) and the commission.
       (e) Report.--Not later than December 1, 2008, the 
     commission shall submit to the President, the Secretary of 
     Defense, the Secretary of Energy, the Secretary of State, the 
     Committee on Armed Services of the Senate, and the Committee 
     on Armed Services of the House of Representatives a report on 
     the commission's findings, conclusions, and recommendations. 
     The report shall identify the strategic posture and nuclear 
     weapons strategy recommended under subsection (c)(2)(B) and 
     shall include--
       (1) the military capabilities and force structure necessary 
     to support the strategy, including both nuclear and non-
     nuclear capabilities that might support the strategy;
       (2) the number of nuclear weapons required to support the 
     strategy, including the number of replacement warheads 
     required, if any;
       (3) the appropriate qualitative analysis, including force-
     on-force exchange modeling, to calculate the effectiveness of 
     the strategy under various scenarios;
       (4) the nuclear infrastructure (that is, the size of the 
     nuclear complex) required to support the strategy;
       (5) an assessment of the role of missile defenses in the 
     strategy;
       (6) an assessment of the role of nonproliferation programs 
     in the strategy;
       (7) the political and military implications of the strategy 
     for the United States and its allies; and
       (8) any other information or recommendations relating to 
     the strategy (or to the strategic posture) that the 
     commission considers appropriate.
       (f) Funding.--Of the amounts appropriated or otherwise made 
     available pursuant to this Act to the Department of Defense, 
     $5,000,000 is available to fund the activities of the 
     commission.
       (g) Termination.--The commission shall terminate on June 1, 
     2009.

     SEC. 1063. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) Title 10, United States Code.--Title 10, United States 
     Code, is amended as follows:
       (1) Chapter 3 is amended--
       (A) by redesignating the section 127c added by section 
     1201(a) of the John Warner National Defense Authorization Act 
     for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2410) as 
     section 127d and transferring that section so as to appear 
     immediately after the section 127c added by section 1231(a) 
     of the National Defense Authorization Act for Fiscal Year 
     2006 (Public Law 109-163; 119 Stat. 3467); and
       (B) by revising the table of sections at the beginning of 
     such chapter to reflect the redesignation and transfer made 
     by paragraph (1).
       (2) Section 629(d)(1) is amended by inserting a comma after 
     ``(a)''.
       (3) Section 662(b) is amended by striking ``paragraphs (1), 
     (2), and (3) of subsection (a)'' and inserting ``paragraphs 
     (1) and (2) of subsection (a)''.
       (4) Subsections (c) and (d) of section 948r are each 
     amended by striking ``Defense Treatment Act of 2005'' each 
     place it appears and inserting ``Detainee Treatment Act of 
     2005''.
       (5) The table of sections at the beginning of subchapter VI 
     of chapter 47A is amended by striking the item relating to 
     section 950j and inserting the following:

``950j. Finality of proceedings, findings, and sentences.''.

       (6) Section 950f(b) is amended by striking ``No person may 
     be serve'' and inserting ``No person may serve''.
       (7) The heading for section 950j is amended by striking 
     ``Finality or'' and inserting ``Finality of''.
       (8) Section 1034(b)(2) is amended by inserting 
     ``unfavorable'' before ``action'' the second place it 
     appears.
       (9) Section 1588(d)(1)(B) is amended by striking ``the Act 
     of March 9, 1920, commonly known as the `Suits in Admiralty 
     Act' (41 Stat. 525; 46 U.S.C. App. 741 et seq.) and the Act 
     of March 3, 1925, commonly known as the `Public Vessels Act' 
     (43 Stat. 1112; 46 U.S.C. App. 781 et seq.)'' and inserting 
     ``chapters 309 and 311 of title 46''.
       (10) The table of sections at the beginning of chapter 137 
     is amended by striking the item relating to section 2333 and 
     inserting the following new item:

``2333. Joint policies on requirements definition, contingency program 
              management, and contingency contracting.''.

       (11) The table of sections at the beginning of chapter 141 
     is amended by inserting a period at the end of the item 
     relating to section 2410p.
       (12) The table of sections at the beginning of chapter 152 
     is amended by inserting a period at the end of the item 
     relating to section 2567.
       (13) Section 2583(e) is amended by striking ``Dogs'' and 
     inserting ``Animals''.
       (14) Section 2668(e) is amended by striking ``and (d)'' and 
     inserting ``and (e)''.
       (15) Section 12304(a) is amended by striking the second 
     period at the end.
       (16) Section 14310(d)(1) is amended by inserting a comma 
     after ``(a)''.
       (b) Title 37, United States Code.--Section 302c(d)(1) of 
     title 37, United States Code, is amended by striking 
     ``Services Corps'' and inserting ``Service Corps''.
       (c) John Warner National Defense Authorization Act for 
     Fiscal Year 2007.--Effective as of October 17, 2006, and as 
     if included therein as enacted, the John Warner National 
     Defense Authorization Act for Fiscal Year 2007 (Public Law 
     109-364) is amended as follows:
       (1) Section 333(a) (120 Stat. 2151) is amended--
       (A) by striking ``Section 332(c)'' and inserting ``Section 
     332''; and
       (B) in paragraph (1), by inserting ``in subsection (c),'' 
     after ``(1)''.
       (2) Section 348(2) (120 Stat. 2159) is amended by striking 
     ``60 days of'' and inserting ``60 days after''.
       (3) Section 511(a)(2)(D)(i) (120 Stat. 2182) is amended by 
     inserting a comma after ``title''.
       (4) Section 591(b)(1) (120 Stat. 2233) is amended by 
     inserting a period after ``this title''.
       (5) Section 606(b)(1)(A) (120 Stat. 2246) is amended by 
     striking ``in'' and inserting ``In''.
       (6) Section 670(b) (120 Stat. 2269) is amended by striking 
     ``such title'' and inserting ``such chapter''.
       (7) Section 673 (120 Stat. 2271) is amended--
       (A) in subsection (a)(1), by inserting ``the second place 
     it appears'' before ``and inserting'';
       (B) in subsection (b)(1)--
       (i) by striking ``Section'' and inserting ``Subsection (a) 
     of section''; and
       (ii) by inserting ``the second place it appears'' before 
     ``and inserting''; and
       (C) in subsection (c)(1), by inserting ``the second place 
     it appears'' before ``and inserting''.
       (8) Section 842(a)(2) (120 Stat. 2337) is amended by 
     striking ``adding at the end'' and inserting ``inserting 
     after the item relating to section 2533a''.
       (9) Section 1017(b)(2) (120 Stat. 2379; 10 U.S.C. 2631 
     note) is amended by striking ``section 27'' and all that 
     follows through the period at the end and inserting 
     ``sections 12112 and 50501 and chapter 551 of title 46, 
     United States Code.''.

[[Page 32608]]

       (10) Section 1071(f) (120 Stat. 2402) is amended by 
     striking ``identical'' both places it appears.
       (11) Section 1231(d) (120 Stat. 2430; 22 U.S.C. 2776a(d)) 
     is amended by striking ``note''.
       (12) Section 2404(b)(2)(A)(ii) (120 Stat. 2459) is amended 
     by striking ``2906 of such Act'' and inserting ``2906A of 
     such Act''.
       (13) Section 2831 (120 Stat. 2480) is amended--
       (A) by striking ``Section 2667(d)'' and inserting ``Section 
     2667(e)''; and
       (B) by inserting ``as redesignated by section 662(b)(1) of 
     this Act,'' after ``Code,''.
       (d) Public Law 109-366.--Effective as of October 17, 2006, 
     and as if included therein as enacted, Public Law 109-366 is 
     amended as follows:
       (1) Section 8(a)(3) (120 Stat. 2636) is amended by 
     inserting a semicolon after ``subsection''.
       (2) Section 9(1) (120 Stat. 2636) is amended by striking 
     ``No. 1.'' and inserting ``No. 1,''.
       (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 571 (119 Stat. 3270) is amended by striking 
     ``931 et seq.)'' and inserting ``921 et seq.)''.
       (2) Section 1052(j) (119 Stat. 3435) is amended by striking 
     ``Section 1049'' and inserting ``Section 1409''.
       (f) Military Commissions Act of 2006.--Section 7 of the 
     Military Commissions Act of 2006 (Public Law 109-366) is 
     amended by striking ``added by added by'' and inserting 
     ``added by''.
       (g) National Defense Authorization Act for Fiscal Year 
     2004.--The National Defense Authorization Act for Fiscal Year 
     2004 (Public Law 108-136) is amended as follows:
       (1) Section 706(a) (117 Stat. 1529; 10 U.S.C. 1076b note) 
     is amended by striking ``those program'' and inserting 
     ``those programs''.
       (2) Section 1413(a) (117 Stat. 1665; 41 U.S.C. 433 note) is 
     amended by striking ``(A))'' and inserting ``(A)))''.
       (3) Section 1602(e)(3) (117 Stat. 1683; 10 U.S.C. 2302 
     note) is amended by inserting ``Security'' after ``Health''.
       (h) National Defense Authorization Act for Fiscal Year 
     1994.--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 ``Research'' after 
     ``Defense Advanced''; and
       (2) in paragraph (3), by inserting ``Research'' after 
     ``Defense Advanced''.
       (i) National Defense Authorization Act for Fiscal Year 
     1993.--Section 722(a)(1) of the National Defense 
     Authorization Act for Fiscal Year 1993 (Public Law 102-484; 
     10 U.S.C. 1073 note) is amended by striking ``155 Stat.'' and 
     inserting ``115 Stat.''.

     SEC. 1064. REPEAL OF CERTIFICATION REQUIREMENT.

       Section 1063 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3445) is 
     repealed.

     SEC. 1065. MAINTENANCE OF CAPABILITY FOR SPACE-BASED NUCLEAR 
                   DETECTION.

       The Secretary of Defense shall maintain the capability for 
     space-based nuclear detection at a level that meets or 
     exceeds the level of capability as of the date of the 
     enactment of this Act.

     SEC. 1066. SENSE OF CONGRESS REGARDING DETAINEES AT NAVAL 
                   STATION, GUANTANAMO BAY, CUBA.

       It is the sense of Congress that--
       (1) the Nation extends its gratitude to the military 
     personnel who guard and interrogate some of the world's most 
     dangerous men every day at Naval Station, Guantanamo Bay, 
     Cuba;
       (2) the United States Government should urge the 
     international community, in general, and in particular, the 
     home countries of the detainees who remain in detention 
     despite having been ordered released by a Department of 
     Defense administrative review board, to work with the 
     Department of Defense to facilitate and expedite the 
     repatriation of such detainees;
       (3) detainees at Guantanamo Bay, to the maximum extent 
     possible, should be charged and expeditiously prosecuted for 
     crimes committed against the United States; and
       (4) operations at Guantanamo Bay should be carried out in a 
     way that upholds the national interest and core values of the 
     American people.

     SEC. 1067. A REPORT ON TRANSFERRING INDIVIDUALS DETAINED AT 
                   NAVAL STATION, GUANTANAMO BAY, CUBA.

       (a) Report Required.--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 that 
     contains the Secretary's plan for each individual presently 
     detained at Naval Station, Guantanamo Bay, Cuba, under the 
     control of the Joint Task Force Guantanamo, who is or has 
     ever been classified as an ``enemy combatant'' (referred to 
     in this section as a ``detainee'').
       (b) Contents of Report.--The report required under 
     subsection (a) shall include each of the following:
       (1) An identification of the number of detainees who, as of 
     December 31, 2007, the Department estimates--
       (A) will have been or will be charged with one or more 
     crimes and may, therefore, be tried before a military 
     commission;
       (B) will be subject of an order calling for the release or 
     transfer of the detainee from the Guantanamo Bay facility; or
       (C) will not have been charged with any crimes and will not 
     be subject to an order calling for the release or transfer of 
     the detainee from the Guantanamo Bay facility, but whom the 
     Department wishes to continue to detain.
       (2) A description of the actions required to be undertaken, 
     by the Secretary of Defense, possibly the heads of other 
     Federal agencies, and Congress, to ensure that detainees who 
     are subject to an order calling for their release or transfer 
     from the Guantanamo Bay facility have, in fact, been 
     released.
       (c) Form.--The report required by subsection (a) shall be 
     submitted in unclassified form but may contain a classified 
     annex.

     SEC. 1068. REPEAL OF PROVISIONS IN SECTION 1076 OF PUBLIC LAW 
                   109-364 RELATING TO USE OF ARMED FORCES IN 
                   MAJOR PUBLIC EMERGENCIES.

       (a) Interference With State and Federal Laws.--
       (1) In general.--Section 333 of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 333. Interference with State and Federal law

       ``The President, by using the militia or the armed forces, 
     or both, or by any other means, shall take such measures as 
     he considers necessary to suppress, in a State, any 
     insurrection, domestic violence, unlawful combination, or 
     conspiracy, if it--
       ``(1) so hinders the execution of the laws of that State, 
     and of the United States within the State, 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 are 
     unable, fail, or refuse to protect that right, privilege, or 
     immunity, or to give that protection; or
       ``(2) opposes or obstructs the execution of the laws of the 
     United States or impedes the course of justice under those 
     laws.

     In any situation covered by clause (1), the State shall be 
     considered to have denied the equal protection of the laws 
     secured by the Constitution.''.
       (2) Proclamation to disperse.--Section 334 of such title is 
     amended by striking ``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--INSURRECTION''.

       (4) Clerical amendments.--
       (A) The table of sections at the beginning of chapter 15 of 
     such title is amended by striking the item relating to 
     section 333 and inserting the following new item:

``333. Interference with State and Federal law.''.

       (B) 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. Insurrection...........................................331''.....

       (b) Repeal of Section Relating to Provision of Supplies, 
     Services, and Equipment.--
       (1) In general.--Section 2567 of title 10, United States 
     Code, is repealed.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 152 of such title is amended by striking 
     the item relating to section 2567.
       (c) Conforming Amendment.--Section 12304(c) of such title 
     is amended by striking ``Except to perform'' and all that 
     follows through ``this section'' and inserting ``No unit or 
     member of a reserve component may be ordered to active duty 
     under this section to perform any of the functions authorized 
     by chapter 15 or section 12406 of this title or, except as 
     provided in subsection (b),''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 1069. STANDARDS REQUIRED FOR ENTRY TO MILITARY 
                   INSTALLATIONS IN UNITED STATES.

       (a) Development of Standards.--
       (1) Access standards for visitors.--The Secretary of 
     Defense shall develop access standards applicable to all 
     military installations in the United States. The standards 
     shall require screening standards appropriate to the type of 
     installation involved, the security level, category of 
     individuals authorized to visit the installation, and level 
     of access to be granted, including--
       (A) protocols to determine the fitness of the individual to 
     enter an installation; and
       (B) standards and methods for verifying the identity of the 
     individual.
       (2) Additional criteria.--The standards required under 
     paragraph (1) may--
       (A) provide for expedited access to a military installation 
     for Department of Defense personnel and employees and family 
     members of personnel who reside on the installation;
       (B) provide for closer scrutiny of categories of 
     individuals determined by the Secretary of Defense to pose a 
     higher potential security risk; and
       (C) in the case of an installation that the Secretary 
     determines contains particularly sensitive facilities, 
     provide additional screening requirements, as well as 
     physical and other security measures for the installation.
       (b) Use of Technology.--The Secretary of Defense is 
     encouraged to procure and field existing identification 
     screening technology and to develop additional technology 
     only to the extent necessary to assist commanders of military 
     installations in implementing the standards developed under 
     this section at points of entry for such installations.
       (c) Deadlines.--
       (1) Development and implementation.--The Secretary of 
     Defense shall develop the standards

[[Page 32609]]

     required under this section by not later than July 1, 2008, 
     and implement such standards by not later than January 1, 
     2009.
       (2) Submission to congress.--Not later than August 1, 2009, 
     the Secretary shall submit to the Committees on Armed 
     Services of the Senate and House of Representatives the 
     standards implemented pursuant to paragraph (1).

     SEC. 1070. REVISED NUCLEAR POSTURE REVIEW.

       (a) Requirement for Comprehensive Review.--In order to 
     clarify United States nuclear deterrence policy and strategy 
     for the near term, the Secretary of Defense shall conduct a 
     comprehensive review of the nuclear posture of the United 
     States for the next 5 to 10 years. The Secretary shall 
     conduct the review in consultation with the Secretary of 
     Energy and the Secretary of State.
       (b) Elements of Review.--The nuclear posture review shall 
     include the following elements:
       (1) The role of nuclear forces in United States military 
     strategy, planning, and programming.
       (2) The policy requirements and objectives for the United 
     States to maintain a safe, reliable, and credible nuclear 
     deterrence posture.
       (3) The relationship among United States nuclear deterrence 
     policy, targeting strategy, and arms control objectives.
       (4) The role that missile defense capabilities and 
     conventional strike forces play in determining the role and 
     size of nuclear forces.
       (5) The levels and composition of the nuclear delivery 
     systems that will be required for implementing the United 
     States national and military strategy, including any plans 
     for replacing or modifying existing systems.
       (6) The nuclear weapons complex that will be required for 
     implementing the United States national and military 
     strategy, including any plans to modernize or modify the 
     complex.
       (7) The active and inactive nuclear weapons stockpile that 
     will be required for implementing the United States national 
     and military strategy, including any plans for replacing or 
     modifying warheads.
       (c) Report to Congress.--The Secretary of Defense shall 
     submit to Congress, in unclassified and classified forms as 
     necessary, a report on the results of the nuclear posture 
     review conducted under this section. The report shall be 
     submitted concurrently with the quadrennial defense review 
     required to be submitted under section 118 of title 10, 
     United States Code, in 2009.
       (d) Sense of Congress.--It is the sense of Congress that 
     the nuclear posture review conducted under this section 
     should be used as a basis for establishing future United 
     States arms control objectives and negotiating positions.

     SEC. 1071. TERMINATION OF 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 
     repealed.

     SEC. 1072. SECURITY CLEARANCES; LIMITATIONS.

       (a) In General.--Title III of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (50 U.S.C. 435b) is amended 
     by adding at the end the following new section:

     ``SEC. 3002. SECURITY CLEARANCES; LIMITATIONS.

       ``(a) Definitions.--In this section:
       ``(1) Controlled substance.--The term `controlled 
     substance' has the meaning given that term in section 102 of 
     the Controlled Substances Act (21 U.S.C. 802).
       ``(2) Covered person.--The term `covered person' means--
       ``(A) an officer or employee of a Federal agency;
       ``(B) a member of the Army, Navy, Air Force, or Marine 
     Corps who is on active duty or is in an active status; and
       ``(C) an officer or employee of a contractor of a Federal 
     agency.
       ``(3) Restricted data.--The term `Restricted Data' has the 
     meaning given that term in section 11 of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2014).
       ``(4) Special access program.--The term `special access 
     program' has the meaning given that term in section 4.1 of 
     Executive Order 12958 (60 Fed. Reg. 19825).
       ``(b) Prohibition.--After January 1, 2008, the head of a 
     Federal agency may not grant or renew a security clearance 
     for a covered person who is an unlawful user of a controlled 
     substance or an addict (as defined in section 102(1) of the 
     Controlled Substances Act (21 U.S.C. 802)).
       ``(c) Disqualification.--
       ``(1) In general.--After January 1, 2008, absent an express 
     written waiver granted in accordance with paragraph (2), the 
     head of a Federal agency may not grant or renew a security 
     clearance described in paragraph (3) for a covered person 
     who--
       ``(A) has been convicted in any court of the United States 
     of a crime, was sentenced to imprisonment for a term 
     exceeding 1 year, and was incarcerated as a result of that 
     sentence for not less than 1 year;
       ``(B) has been discharged or dismissed from the Armed 
     Forces under dishonorable conditions; or
       ``(C) is mentally incompetent, as determined by an 
     adjudicating authority, based on an evaluation by a duly 
     qualified mental health professional employed by, or 
     acceptable to and approved by, the United States Government 
     and in accordance with the adjudicative guidelines required 
     by subsection (d).
       ``(2) Waiver authority.--In a meritorious case, an 
     exception to the disqualification in this subsection may be 
     authorized if there are mitigating factors. Any such waiver 
     may be authorized only in accordance with--
       ``(A) standards and procedures prescribed by, or under the 
     authority of, an Executive Order or other guidance issued by 
     the President; or
       ``(B) the adjudicative guidelines required by subsection 
     (d).
       ``(3) Covered security clearances.--This subsection applies 
     to security clearances that provide for access to--
       ``(A) special access programs;
       ``(B) Restricted Data; or
       ``(C) any other information commonly referred to as 
     `sensitive compartmented information'.
       ``(4) Annual report.--
       ``(A) Requirement for report.--Not later than February 1 of 
     each year, the head of a Federal agency shall submit a report 
     to the appropriate committees of Congress if such agency 
     employs or employed a person for whom a waiver was granted in 
     accordance with paragraph (2) during the preceding year. Such 
     annual report shall not reveal the identity of such person, 
     but shall include for each waiver issued the disqualifying 
     factor under paragraph (1) and the reasons for the waiver of 
     the disqualifying factor.
       ``(B) Definitions.--In this paragraph:
       ``(i) Appropriate committees of congress.--The term 
     `appropriate committees of Congress' means, with respect to a 
     report submitted under subparagraph (A) by the head of a 
     Federal agency--

       ``(I) the congressional defense committees;
       ``(II) the congressional intelligence committees;
       ``(III) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       ``(IV) the Committee on Oversight and Government Reform of 
     the House of Representatives; and
       ``(V) each Committee of the Senate or the House of 
     Representatives with oversight authority over such Federal 
     agency.

       ``(ii) Congressional defense committees.--The term 
     `congressional defense committees' has the meaning given that 
     term in section 101(a)(16) of title 10, United States Code.
       ``(iii) Congressional intelligence committees.--The term 
     `congressional intelligence committees' has the meaning given 
     that term in section 3 of the National Security Act of 1947 
     (50 U.S.C. 401a).
       ``(d) Adjudicative Guidelines.--
       ``(1) Requirement to establish.--The President shall 
     establish adjudicative guidelines for determining eligibility 
     for access to classified information.
       ``(2) Requirements related to mental health.--The 
     guidelines required by paragraph (1) shall--
       ``(A) include procedures and standards under which a 
     covered person is determined to be mentally incompetent and 
     provide a means to appeal such a determination; and
       ``(B) require that no negative inference concerning the 
     standards in the guidelines may be raised solely on the basis 
     of seeking mental health counseling.''.
       (b) Conforming Amendments.--
       (1) Repeal.--Section 986 of title 10, United States Code, 
     is repealed.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 49 of such title is amended by striking 
     the item relating to section 986.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on January 1, 2008.

     SEC. 1073. IMPROVEMENTS IN THE PROCESS FOR THE ISSUANCE OF 
                   SECURITY CLEARANCES.

       (a) Demonstration Project.--Not later than 6 months after 
     the date of the enactment of this Act, the Secretary of 
     Defense and the Director of National Intelligence shall 
     implement a demonstration project that applies new and 
     innovative approaches to improve the processing of requests 
     for security clearances.
       (b) Evaluation.--Not later than 1 year after the date of 
     the enactment of this Act, the Secretary of Defense and the 
     Director of National Intelligence shall carry out an 
     evaluation of the process for issuing security clearances and 
     develop a specific plan and schedule for replacing such 
     process with an improved process.
       (c) Report.--Not later than 30 days after the date of the 
     completion of the evaluation required by subsection (b), the 
     Secretary of Defense and the Director of National 
     Intelligence shall submit to Congress a report on--
       (1) the results of the demonstration project carried out 
     pursuant to subsection (a);
       (2) the results of the evaluation carried out under 
     subsection (b); and
       (3) the recommended specific plan and schedule for 
     replacing the existing process for issuing security 
     clearances with an improved process.

     SEC. 1074. PROTECTION OF CERTAIN INDIVIDUALS.

       (a) Protection for Department Leadership.--The Secretary of 
     Defense, under regulations prescribed by the Secretary and in 
     accordance with guidelines approved by the Secretary and the 
     Attorney General, may authorize qualified members of the 
     Armed Forces and qualified civilian employees of the 
     Department of Defense to provide physical protection and 
     personal security within the United States to the following 
     persons who, by nature of their positions, require continuous 
     security and protection:
       (1) Secretary of Defense.
       (2) Deputy Secretary of Defense.
       (3) Chairman of the Joint Chiefs of Staff.
       (4) Vice Chairman of the Joint Chiefs of Staff.
       (5) Secretaries of the military departments.
       (6) Chiefs of the Services.
       (7) Commanders of combatant commands.

[[Page 32610]]

       (b) Protection for Additional Personnel.--
       (1) Authority to provide.--The Secretary of Defense, under 
     regulations prescribed by the Secretary and in accordance 
     with guidelines approved by the Secretary and the Attorney 
     General, may authorize qualified members of the Armed Forces 
     and qualified civilian employees of the Department of Defense 
     to provide physical protection and personal security within 
     the United States to individuals other than individuals 
     described in paragraphs (1) through (7) of subsection (a) if 
     the Secretary determines that such protection and security 
     are necessary because--
       (A) there is an imminent and credible threat to the safety 
     of the individual for whom protection is to be provided; or
       (B) compelling operational considerations make such 
     protection essential to the conduct of official Department of 
     Defense business.
       (2) Personnel.--Individuals authorized to receive physical 
     protection and personal security under this subsection 
     include the following:
       (A) Any official, military member, or employee of the 
     Department of Defense.
       (B) A former or retired official who faces serious and 
     credible threats arising from duties performed while employed 
     by the Department for a period of up to two years beginning 
     on the date on which the official separates from the 
     Department.
       (C) A head of a foreign state, an official representative 
     of a foreign government, or any other distinguished foreign 
     visitor to the United States who is primarily conducting 
     official business with the Department of Defense.
       (D) Any member of the immediate family of a person 
     authorized to receive physical protection and personal 
     security under this section.
       (E) An individual who has been designated by the President, 
     and who has received the advice and consent of the Senate, to 
     serve as Secretary of Defense, but who has not yet been 
     appointed as Secretary of Defense.
       (3) Limitation on delegation.--The authority of the 
     Secretary of Defense to authorize the provision of physical 
     protection and personal security under this subsection may be 
     delegated only to the Deputy Secretary of Defense.
       (4) Requirement for written determination.--A determination 
     of the Secretary of Defense to provide physical protection 
     and personal security under this subsection shall be in 
     writing, shall be based on a threat assessment by an 
     appropriate law enforcement, security, or intelligence 
     organization, and shall include the name and title of the 
     officer, employee, or other individual affected, the reason 
     for such determination, the duration of the authorized 
     protection and security for such officer, employee, or 
     individual, and the nature of the arrangements for the 
     protection and security.
       (5) Duration of protection.--
       (A) Initial period of protection.--After making a written 
     determination under paragraph (4), the Secretary of Defense 
     may provide protection and security to an individual under 
     this subsection for an initial period of not more than 90 
     calendar days.
       (B) Subsequent period.--If, at the end of the period that 
     protection and security is provided to an individual under 
     subsection (A), the Secretary determines that a condition 
     described in subparagraph (A) or (B) of paragraph (1) 
     continues to exist with respect to the individual, the 
     Secretary may extend the period that such protection and 
     security is provided for additional 60-day periods. The 
     Secretary shall review such a determination at the end of 
     each 60-day period to determine whether to continue to 
     provide such protection and security.
       (C) Requirement for compliance with regulations.--
     Protection and personal security provided under subparagraph 
     (B) shall be provided in accordance with the regulations and 
     guidelines referred to in paragraph (1).
       (6) Submission to congress.--
       (A) In general.--The Secretary of Defense shall submit to 
     the congressional defense committees each determination made 
     under paragraph (4) to provide protection and security to an 
     individual and of each determination under paragraph (5)(B) 
     to extend such protection and security, together with the 
     justification for such determination, not later than 15 days 
     after the date on which the determination is made.
       (B) Form of report.--A report submitted under subparagraph 
     (A) may be made in classified form.
       (C) Regulations and guidelines.--The Secretary of Defense 
     shall submit to the congressional defense committees the 
     regulations and guidelines prescribed pursuant to paragraph 
     (1) not less than 20 days before the date on which such 
     regulations take effect.
       (c) Definitions.--In this section:
       (1) Congressional defense committees.--The term 
     ``congressional defense committees'' means the Committee on 
     Appropriations and the Committee on Armed Services of the 
     Senate and the Committee on Appropriations and the Committee 
     on Armed Services of the House of Representatives.
       (2) Qualified members of the armed forces and qualified 
     civilian employees of the department of defense.--The terms 
     ``qualified members of the Armed Forces'' and ``qualified 
     civilian employees of the Department of Defense'' refer 
     collectively to members or employees who are assigned to 
     investigative, law enforcement, or security duties of any of 
     the following:
       (A) The Army Criminal Investigation Command.
       (B) The Naval Criminal Investigative Service.
       (C) The Air Force Office of Special Investigations.
       (D) The Defense Criminal Investigative Service.
       (E) The Pentagon Force Protection Agency.
       (d) Construction.--
       (1) No additional law enforcement or arrest authority.--
     Other than the authority to provide protection and security 
     under this section, nothing in this section may be construed 
     to bestow any additional law enforcement or arrest authority 
     upon the qualified members of the Armed Forces and qualified 
     civilian employees of the Department of Defense.
       (2) Posse comitatus.--Nothing in this section shall be 
     construed to abridge section 1385 of title 18, United States 
     Code.
       (3) Authorities of other departments.--Nothing in this 
     section may be construed to preclude or limit, in any way, 
     the express or implied powers of the Secretary of Defense or 
     other Department of Defense officials, or the duties and 
     authorities of the Secretary of State, the Director of the 
     United States Secret Service, the Director of the United 
     States Marshals Service, or any other Federal law enforcement 
     agency.

     SEC. 1075. MODIFICATION OF AUTHORITIES ON COMMISSION TO 
                   ASSESS THE THREAT TO THE UNITED STATES FROM 
                   ELECTROMAGNETIC PULSE ATTACK.

       (a) Extension of Date of Submittal of Final Report.--
     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; 50 U.S.C. 2301 note) is amended by 
     striking ``June 30, 2007'' and inserting ``November 30, 
     2008''.
       (b) Coordination of Work With Department of Homeland 
     Security.--Section 1404 of such Act is amended by adding at 
     the end the following new subsection:
       ``(c) Coordination With Department of Homeland Security.--
     The Commission and the Secretary of Homeland Security shall 
     jointly ensure that the work of the Commission with respect 
     to electromagnetic pulse attack on electricity 
     infrastructure, and protection against such attack, is 
     coordinated with Department of Homeland Security efforts on 
     such matters.''.
       (c) Limitation on Department of Defense Funding.--The 
     aggregate amount of funds provided by the Department of 
     Defense to the Commission to Assess the Threat to the United 
     States from Electromagnetic Pulse Attack for purposes of the 
     preparation and submittal of the final report required by 
     section 1403(a) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as amended by 
     subsection (a)), whether by transfer or otherwise and 
     including funds provided the Commission before the date of 
     the enactment of this Act, shall not exceed $5,600,000.

     SEC. 1076. SENSE OF CONGRESS ON SMALL BUSINESS INNOVATION 
                   RESEARCH PROGRAM.

       It is the sense of Congress that--
       (1) the Department of Defense's Small Business Innovation 
     Research program has been effective in supporting the 
     performance of the missions of the Department of Defense, by 
     stimulating technological innovation through investments in 
     small business research activities;
       (2) the Department of Defense's Small Business Innovation 
     Research program has transitioned a number of technologies 
     and systems into operational use by warfighters; and
       (3) the Department of Defense's Small Business Innovation 
     Research program should be reauthorized so as to ensure that 
     the program's activities can continue seamlessly, 
     efficiently, and effectively.

     SEC. 1077. REVISION OF PROFICIENCY FLYING DEFINITION.

       Subsection (c) of section 2245 of title 10, United States 
     Code, is amended to read as follows:
       ``(c) In this section, the term `proficiency flying' means 
     flying performed under competent orders by a rated or 
     designated member of the armed forces while serving in a non-
     aviation assignment or in an assignment in which skills would 
     normally not be maintained in the performance of assigned 
     duties.''.

     SEC. 1078. QUALIFICATIONS FOR PUBLIC AIRCRAFT STATUS OF 
                   AIRCRAFT UNDER CONTRACT WITH THE ARMED FORCES.

       (a) Definition of Public Aircraft.--Section 40102(a)(41)(E) 
     of title 49, United States Code, is amended--
       (1) by inserting ``or other commercial air service'' after 
     ``transportation''; and
       (2) by adding at the end the following: ``In the preceding 
     sentence, the term `other commercial air service' means an 
     aircraft operation that (i) is within the United States 
     territorial airspace; (ii) the Administrator of the Federal 
     Aviation Administration determines is available for 
     compensation or hire to the public, and (iii) must comply 
     with all applicable civil aircraft rules under title 14, Code 
     of Federal Regulations.''.
       (b) Aircraft Operated by the Armed Forces.--Section 
     40125(c)(1)(C) of such title is amended by inserting ``or 
     other commercial air service'' after ``transportation''.
       (c) Conforming Amendments.--
       (1) Section 40125(b) of such title is amended by striking 
     ``40102(a)(37)'' and inserting ``40102(a)(41)''.
       (2) Section 40125(c)(1) of such title is amended by 
     striking ``40102(a)(37)(E)'' and inserting 
     ``40102(a)(41)(E)''.

[[Page 32611]]



     SEC. 1079. COMMUNICATIONS WITH THE COMMITTEES ON ARMED 
                   SERVICES OF THE SENATE AND THE HOUSE OF 
                   REPRESENTATIVES.

       (a) Requests of Committees.--The Director of the National 
     Counterterrorism Center, the Director of a national 
     intelligence center, or the head of any element of the 
     intelligence community shall, not later than 45 days after 
     receiving a written request from the Chair or ranking 
     minority member of the Committee on Armed Services of the 
     Senate or the Committee on Armed Services of the House of 
     Representatives for any existing intelligence assessment, 
     report, estimate, or legal opinion relating to matters within 
     the jurisdiction of such Committee, make available to such 
     committee such assessment, report, estimate, or legal 
     opinion, as the case may be.
       (b) Assertion of Privilege.--
       (1) In general.--In response to a request covered by 
     subsection (a), the Director of the National Counterterrorism 
     Center, the Director of a national intelligence center, or 
     the head of any element of the intelligence community shall 
     provide to the Committee making such request the document or 
     information covered by such request unless the President 
     determines that such document or information shall not be 
     provided because the President is asserting a privilege 
     pursuant to the Constitution of the United States.
       (2) Submission to congress.--The White House Counsel shall 
     submit to Congress in writing any assertion by the President 
     under paragraph (1) of a privilege pursuant to the 
     Constitution.
       (c) Definitions.--In this section:
       (1) Intelligence community.--The term ``intelligence 
     community'' has the meaning given the term in section 3(4) of 
     the National Security Act of 1947 (50 U.S.C. 401a(4)).
       (2) Intelligence assessment.--The term ``intelligence 
     assessment'' means an intelligence-related analytical study 
     of a subject of policy significance and does not include 
     building-block papers, research projects, and reference aids.
       (3) Intelligence estimate.--The term ``intelligence 
     estimate'' means an appraisal of available intelligence 
     relating to a specific situation or condition with a view to 
     determining the courses of action open to an enemy or 
     potential enemy and the probable order of adoption of such 
     courses of action.

     SEC. 1080. RETENTION OF REIMBURSEMENT FOR PROVISION OF 
                   RECIPROCAL FIRE PROTECTION SERVICES.

       Section 5 of the Act of May 27, 1955 (chapter 105; 69 Stat. 
     67; 42 U.S.C. 1856d) is amended--
       (1) by striking ``Funds'' and inserting ``(a) Funds''; and
       (2) by adding at the end the following new subsection:
       ``(b) Notwithstanding the provisions of subsection (a), all 
     sums received for any Department of Defense activity for fire 
     protection rendered pursuant to this Act shall be credited to 
     the appropriation fund or account from which the expenses 
     were paid. Amounts so credited shall be merged with funds in 
     such appropriation fund or account and shall be available for 
     the same purposes and subject to the same limitations as the 
     funds with which the funds are merged.''.

     SEC. 1081. PILOT PROGRAM ON COMMERCIAL FEE-FOR-SERVICE AIR 
                   REFUELING SUPPORT FOR THE AIR FORCE.

       (a) Pilot Program Required.--The Secretary of Air Force 
     shall conduct, as soon as practicable after the date of 
     enactment of this Act, a pilot program to assess the 
     feasibility and advisability of utilizing commercial fee-for-
     service air refueling tanker aircraft for Air Force 
     operations. The duration of the pilot program shall be at 
     least five years after commencement of the program.
       (b) Purpose.--
       (1) In general.--The pilot program required by subsection 
     (a) shall evaluate the feasibility of fee-for-service air 
     refueling to support, augment, or enhance the air refueling 
     mission of the Air Force by utilizing commercial air 
     refueling providers on a fee-for-service basis.
       (2) Elements.--In order to achieve the purpose of the pilot 
     program, the Secretary of the Air Force shall--
       (A) demonstrate and validate a comprehensive strategy for 
     air refueling on a fee-for-service basis by evaluating all 
     mission areas, including testing support, training support to 
     receiving aircraft, homeland defense support, deployment 
     support, air bridge support, aeromedical evacuation, and 
     emergency air refueling; and
       (B) integrate fee-for-service air refueling described in 
     paragraph (1) into Air Mobility Command operations during the 
     evaluation and execution phases of the pilot program.
       (c) Annual Report.--The Secretary of the Air Force shall 
     provide to the congressional defense committees an annual 
     report on the fee-for-service air refueling program, which 
     includes--
       (1) information with respect to--
       (A) missions flown;
       (B) mission areas supported;
       (C) aircraft number, type, model series supported;
       (D) fuel dispensed;
       (E) departure reliability rates;
       (F) the annual and cumulative cost to the Government for 
     the program, including a comparison of costs of the same 
     service provided by the Air Force;
       (2) an assessment of the impact of outsourcing air 
     refueling on the Air Force's flying hour program and aircrew 
     training; and
       (3) any other data that the Secretary determines is 
     appropriate for evaluating the performance of the commercial 
     air refueling providers participating in the pilot program.
       (d) Comptroller General Review.--The Comptroller General 
     shall submit to the congressional defense committees--
       (1) an annual review of the conduct of the pilot program 
     under this section and any recommendations of the Comptroller 
     General for improving the program; and
       (2) not later than 90 days after the completion of the 
     pilot program, a final assessment of the results of the pilot 
     program and the recommendations of the Comptroller General 
     for whether the Secretary of the Air Force should continue to 
     utilize fee-for-service air refueling.

     SEC. 1082. ADVISORY PANEL ON DEPARTMENT OF DEFENSE 
                   CAPABILITIES FOR SUPPORT OF CIVIL AUTHORITIES 
                   AFTER CERTAIN INCIDENTS.

       (a) In General.--The Secretary of Defense shall establish 
     an advisory panel to carry out an assessment of the 
     capabilities of the Department of Defense to provide support 
     to United States civil authorities in the event of a 
     chemical, biological, radiological, nuclear, or high-yield 
     explosive (CBRNE) incident.
       (b) Panel Matters.--
       (1) In general.--The advisory panel required by subsection 
     (a) shall consist of individuals appointed by the Secretary 
     of Defense (in consultation with the chairmen and ranking 
     members of the Committees on Armed Services of the Senate and 
     the House of Representatives) from among private citizens of 
     the United States with expertise in the legal, operational, 
     and organizational aspects of the management of the 
     consequences of a chemical, biological, radiological, 
     nuclear, or high-yield explosive incident.
       (2) Deadline for appointment.--All members of the advisory 
     panel shall be appointed under this subsection not later than 
     30 days after the date on which the Secretary enters into the 
     contract required by subsection (c).
       (3) Initial meeting.--The advisory panel shall conduct its 
     first meeting not later than 30 days after the date that all 
     appointments to the panel have been made under this 
     subsection.
       (4) Procedures.--The advisory panel shall carry out its 
     duties under this section under procedures established under 
     subsection (c) by the federally funded research and 
     development center with which the Secretary contracts under 
     that subsection. Such procedures shall include procedures for 
     the selection of a chairman of the advisory panel from among 
     its members.
       (c) Support of Federally Funded Research and Development 
     Center.--
       (1) In general.--The Secretary of Defense shall enter into 
     a contract with a federally funded research and development 
     center for the provision of support and assistance to the 
     advisory panel required by subsection (a) in carrying out its 
     duties under this section. Such support and assistance shall 
     include the establishment of the procedures of the advisory 
     panel under subsection (b)(4).
       (2) Deadline for contract.--The Secretary shall enter into 
     the contract required by this subsection not later than 60 
     days after the date of the enactment of this Act.
       (d) Duties of Panel.--The advisory panel required by 
     subsection (a) shall--
       (1) evaluate the authorities and capabilities of the 
     Department of Defense to conduct operations in support to 
     United States civil authorities in the event of a chemical, 
     biological, radiological, nuclear, or high-yield explosive 
     incident, including the authorities and capabilities of the 
     military departments, the Defense Agencies, the combatant 
     commands, any supporting commands, and the reserve components 
     of the Armed Forces (including the National Guard in a 
     Federal and non-Federal status);
       (2) assess the adequacy of existing plans and programs of 
     the Department of Defense for training and equipping 
     dedicated, special, and general purposes forces for 
     conducting operations described in paragraph (1) across a 
     broad spectrum of scenarios, including current National 
     Planning Scenarios as applicable;
       (3) assess policies, directives, and plans of the 
     Department of Defense in support of civilian authorities in 
     managing the consequences of a chemical, biological, 
     radiological, nuclear, or high-yield explosive incident;
       (4) assess the adequacy of policies and structures of the 
     Department of Defense for coordination with other department 
     and agencies of the Federal Government, especially the 
     Department of Homeland Security, the Department of Energy, 
     the Department of Justice, and the Department of Health and 
     Human Services, in the provision of support described in 
     paragraph (1);
       (5) assess the adequacy and currency of information 
     available to the Department of Defense, whether directly or 
     through other departments and agencies of the Federal 
     Government, from State and local governments in circumstances 
     where the Department provides support described in paragraph 
     (1) because State and local response capabilities are not 
     fully adequate for a comprehensive response;
       (6) assess the equipment capabilities and needs of the 
     Department of Defense to provide support described in 
     paragraph (1);
       (7) develop recommendations for modifying the capabilities, 
     plans, policies, equipment, and structures evaluated or 
     assessed under this subsection in order to improve the 
     provision by the Department of Defense of the support 
     described in paragraph (1); and
       (8) assess and make recommendations on--
       (A) whether there should be any additional Weapons of Mass 
     Destruction Civil Support Teams, beyond the 55 already 
     authorized and, if so, how many additional Civil Support 
     Teams, and where they should be located; and
       (B) what criteria and considerations are appropriate to 
     determine whether additional Civil

[[Page 32612]]

     Support Teams are needed and, if so, where they should be 
     located.
       (e) Cooperation of Other Agencies.--
       (1) In general.--The advisory panel required by subsection 
     (a) may secure directly from the Department of Defense, the 
     Department of Homeland Security, the Department of Energy, 
     the Department of Justice, the Department of Health and Human 
     Services, and any other department or agency of the Federal 
     Government information that the panel considers necessary for 
     the panel to carry out its duties.
       (2) Cooperation.--The Secretary of Defense, the Secretary 
     of Homeland Secretary, the Secretary of Energy, the Attorney 
     General, the Secretary of Health and Human Services, and any 
     other official of the United States shall provide the 
     advisory panel with full and timely cooperation in carrying 
     out its duties under this section.
       (f) Report.--Not later than 12 months after the date of the 
     initial meeting of the advisory panel required by subsection 
     (a), the advisory panel shall submit to the Secretary of 
     Defense, and to the Committees on Armed Services of the 
     Senate and the House of Representatives, a report on 
     activities under this section. The report shall set forth--
       (1) the findings, conclusions, and recommendations of the 
     advisory panel for improving the capabilities of the 
     Department of Defense to provide support to United States 
     civil authorities in the event of a chemical, biological, 
     radiological, nuclear, or high-yield explosive incident; and
       (2) such other findings, conclusions, and recommendations 
     for improving the capabilities of the Department for homeland 
     defense as the advisory panel considers appropriate.

     SEC. 1083. TERRORISM EXCEPTION TO IMMUNITY.

       (a) Terrorism Exception to Immunity.--
       (1) In general.--Chapter 97 of title 28, United States 
     Code, is amended by inserting after section 1605 the 
     following:

     ``Sec. 1605A. Terrorism exception to the jurisdictional 
       immunity of a foreign state

       ``(a) In General.--
       ``(1) No immunity.--A foreign state shall not be immune 
     from the jurisdiction of courts of the United States or of 
     the States in any case not otherwise covered by this chapter 
     in which money damages are sought against a foreign state for 
     personal injury or death that was caused by an act of 
     torture, extrajudicial killing, aircraft sabotage, hostage 
     taking, or the provision of material support or resources for 
     such an act if such act or provision of material support or 
     resources is engaged in by an official, employee, or agent of 
     such foreign state while acting within the scope of his or 
     her office, employment, or agency.
       ``(2) Claim heard.--The court shall hear a claim under this 
     section if--
       ``(A)(i)(I) the foreign state was designated as a state 
     sponsor of terrorism at the time the act described in 
     paragraph (1) occurred, or was so designated as a result of 
     such act, and, subject to subclause (II), either remains so 
     designated when the claim is filed under this section or was 
     so designated within the 6-month period before the claim is 
     filed under this section; or
       ``(II) in the case of an action that is refiled under this 
     section by reason of section 1083(c)(2)(A) of the National 
     Defense Authorization Act for Fiscal Year 2008 or is filed 
     under this section by reason of section 1083(c)(3) of that 
     Act, the foreign state was designated as a state sponsor of 
     terrorism when the original action or the related action 
     under section 1605(a)(7) (as in effect before the enactment 
     of this section) or section 589 of the Foreign Operations, 
     Export Financing, and Related Programs Appropriations Act, 
     1997 (as contained in 101(c) of Division A of Public Law 104-
     208) was filed;
       ``(ii) the claimant or the victim was, at the time the act 
     described in paragraph (1) occurred--
       ``(I) a national of the United States;
       ``(II) a member of the armed forces; or
       ``(III) otherwise an employee of the Government of the 
     United States, or of an individual performing a contract 
     awarded by the United States Government, acting within the 
     scope of the employee's employment; and
       ``(iii) in a case in which the act occurred in the foreign 
     state against which the claim has been brought, the claimant 
     has afforded the foreign state a reasonable opportunity to 
     arbitrate the claim in accordance with the accepted 
     international rules of arbitration; or
       ``(B) the act described in paragraph (1) is related to Case 
     Number 1:00CV03110 (EGS) in the United States District Court 
     for the District of Columbia.
       ``(b) Limitations.--An action may be brought or maintained 
     under this section if the action is commenced, or a related 
     action was commenced under section 1605(a)(7) (before the 
     date of the enactment of this section) or section 589 of the 
     Foreign Operations, Export Financing, and Related Programs 
     Appropriations Act, 1997 (as contained in 101(c) of Division 
     A of Public Law 104-208) not later than the latter of--
       ``(1) 10 years after April 24, 1996; or
       ``(2) 10 years after the date on which the cause of action 
     arose.
       ``(c) Private Right of Action.--A foreign state that is or 
     was a state sponsor of terrorism as described in subsection 
     (a)(2)(A)(i), and any official, employee, or agent of that 
     foreign state while acting within the scope of his or her 
     office, employment, or agency, shall be liable to--
       ``(1) a national of the United States,
       ``(2) a member of the armed forces,
       ``(3) an employee of the Government of the United States, 
     or of an individual performing a contract awarded by the 
     United States Government, acting within the scope of the 
     employee's employment, or
       ``(4) the legal representative of a person described in 
     paragraph (1), (2), or (3),
     for personal injury or death caused by acts described in 
     subsection (a)(1) of that foreign state, or of an official, 
     employee, or agent of that foreign state, for which the 
     courts of the United States may maintain jurisdiction under 
     this section for money damages. In any such action, damages 
     may include economic damages, solatium, pain, and suffering, 
     and punitive damages. In any such action, a foreign state 
     shall be vicariously liable for the acts of its officials, 
     employees, or agents.
       ``(d) Additional Damages.--After an action has been brought 
     under subsection (c), actions may also be brought for 
     reasonably foreseeable property loss, whether insured or 
     uninsured, third party liability, and loss claims under life 
     and property insurance policies, by reason of the same acts 
     on which the action under subsection (c) is based.
       ``(e) Special Masters.--
       ``(1) In general.--The courts of the United States may 
     appoint special masters to hear damage claims brought under 
     this section.
       ``(2) Transfer of funds.--The Attorney General shall 
     transfer, from funds available for the program under section 
     1404C of the Victims of Crime Act of 1984 (42 U.S.C. 10603c), 
     to the Administrator of the United States district court in 
     which any case is pending which has been brought or 
     maintained under this section such funds as may be required 
     to cover the costs of special masters appointed under 
     paragraph (1). Any amount paid in compensation to any such 
     special master shall constitute an item of court costs.
       ``(f) Appeal.--In an action brought under this section, 
     appeals from orders not conclusively ending the litigation 
     may only be taken pursuant to section 1292(b) of this title.
       ``(g) Property Disposition.--
       ``(1) In general.--In every action filed in a United States 
     district court in which jurisdiction is alleged under this 
     section, the filing of a notice of pending action pursuant to 
     this section, to which is attached a copy of the complaint 
     filed in the action, shall have the effect of establishing a 
     lien of lis pendens upon any real property or tangible 
     personal property that is--
       ``(A) subject to attachment in aid of execution, or 
     execution, under section 1610;
       ``(B) located within that judicial district; and
       ``(C) titled in the name of any defendant, or titled in the 
     name of any entity controlled by any defendant if such notice 
     contains a statement listing such controlled entity.
       ``(2) Notice.--A notice of pending action pursuant to this 
     section shall be filed by the clerk of the district court in 
     the same manner as any pending action and shall be indexed by 
     listing as defendants all named defendants and all entities 
     listed as controlled by any defendant.
       ``(3) Enforceability.--Liens established by reason of this 
     subsection shall be enforceable as provided in chapter 111 of 
     this title.
       ``(h) Definitions.--For purposes of this section--
       ``(1) the term `aircraft sabotage' has the meaning given 
     that term in Article 1 of the Convention for the Suppression 
     of Unlawful Acts Against the Safety of Civil Aviation;
       ``(2) the term `hostage taking' has the meaning given that 
     term in Article 1 of the International Convention Against the 
     Taking of Hostages;
       ``(3) the term `material support or resources' has the 
     meaning given that term in section 2339A of title 18;
       ``(4) the term `armed forces' has the meaning given that 
     term in section 101 of title 10;
       ``(5) the term `national of the United States' has the 
     meaning given that term in section 101(a)(22) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(22));
       ``(6) the term `state sponsor of terrorism' means a country 
     the government of which the Secretary of State has 
     determined, for purposes of section 6(j) of the Export 
     Administration Act of 1979 (50 U.S.C. App. 2405(j)), section 
     620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371), 
     section 40 of the Arms Export Control Act (22 U.S.C. 2780), 
     or any other provision of law, is a government that has 
     repeatedly provided support for acts of international 
     terrorism; and
       ``(7) the terms `torture' and `extrajudicial killing' have 
     the meaning given those terms in section 3 of the Torture 
     Victim Protection Act of 1991 (28 U.S.C. 1350 note).''.
       (2) Amendment to chapter analysis.--The table of sections 
     at the beginning of chapter 97 of title 28, United States 
     Code, is amended by inserting after the item relating to 
     section 1605 the following:

``1605A. Terrorism exception to the jurisdictional immunity of a 
              foreign state.''.
       (b) Conforming Amendments.--
       (1) General exception.--Section 1605 of title 28, United 
     States Code, is amended--
       (A) in subsection (a)--
       (i) in paragraph (5)(B), by inserting ``or'' after the 
     semicolon;
       (ii) in paragraph (6)(D), by striking ``; or'' and 
     inserting a period; and
       (iii) by striking paragraph (7);
       (B) by repealing subsections (e) and (f); and
       (C) in subsection (g)(1)(A), by striking ``but for 
     subsection (a)(7)'' and inserting ``but for section 1605A''.
       (2) Counterclaims.--Section 1607(a) of title 28, United 
     States Code, is amended by inserting ``or 1605A'' after 
     ``1605''.
       (3) Property.--Section 1610 of title 28, United States 
     Code, is amended--

[[Page 32613]]

       (A) in subsection (a)(7), by striking ``1605(a)(7)'' and 
     inserting ``1605A'';
       (B) in subsection (b)(2), by striking ``(5), or (7), or 
     1605(b)'' and inserting ``or (5), 1605(b), or 1605A'';
       (C) in subsection (f), in paragraphs (1)(A) and (2)(A), by 
     inserting ``(as in effect before the enactment of section 
     1605A) or section 1605A'' after ``1605(a)(7)''; and
       (D) by adding at the end the following:
       ``(g) Property in Certain Actions.--
       ``(1) In general.--Subject to paragraph (3), the property 
     of a foreign state against which a judgment is entered under 
     section 1605A, and the property of an agency or 
     instrumentality of such a state, including property that is a 
     separate juridical entity or is an interest held directly or 
     indirectly in a separate juridical entity, is subject to 
     attachment in aid of execution, and execution, upon that 
     judgment as provided in this section, regardless of--
       ``(A) the level of economic control over the property by 
     the government of the foreign state;
       ``(B) whether the profits of the property go to that 
     government;
       ``(C) the degree to which officials of that government 
     manage the property or otherwise control its daily affairs;
       ``(D) whether that government is the sole beneficiary in 
     interest of the property; or
       ``(E) whether establishing the property as a separate 
     entity would entitle the foreign state to benefits in United 
     States courts while avoiding its obligations.
       ``(2) United states sovereign immunity inapplicable.--Any 
     property of a foreign state, or agency or instrumentality of 
     a foreign state, to which paragraph (1) applies shall not be 
     immune from attachment in aid of execution, or execution, 
     upon a judgment entered under section 1605A because the 
     property is regulated by the United States Government by 
     reason of action taken against that foreign state under the 
     Trading With the Enemy Act or the International Emergency 
     Economic Powers Act.
       ``(3) Third-party joint property holders.--Nothing in this 
     subsection shall be construed to supersede the authority of a 
     court to prevent appropriately the impairment of an interest 
     held by a person who is not liable in the action giving rise 
     to a judgment in property subject to attachment in aid of 
     execution, or execution, upon such judgment.''.
       (4) Victims of crime act.--Section 1404C(a)(3) of the 
     Victims of Crime Act of 1984 (42 U.S.C. 10603c(a)(3)) is 
     amended by striking ``December 21, 1988 with respect to which 
     an investigation or'' and inserting ``October 23, 1983, with 
     respect to which an investigation or civil or criminal''.
       (c) Application to Pending Cases.--
       (1) In general.--The amendments made by this section shall 
     apply to any claim arising under section 1605A of title 28, 
     United States Code.
       (2) Prior actions.--
       (A) In general.--With respect to any action that--
       (i) was brought under section 1605(a)(7) of title 28, 
     United States Code, or section 589 of the Foreign Operations, 
     Export Financing, and Related Programs Appropriations Act, 
     1997 (as contained in 101(c) of Division A of Public Law 104-
     208), before the date of the enactment of this Act,
       (ii) relied upon either such provision as creating a cause 
     of action,
       (iii) has been adversely affected on the grounds that 
     either or both of these provisions fail to create a cause of 
     action against the state, and
       (iv) as of such date of enactment, is before the courts in 
     any form, including on appeal or motion under rule 60(b) of 
     the Federal Rules of Civil Procedure,
     that action, and any judgment in the action shall, on motion 
     made by plaintiffs to the United States district court where 
     the action was initially brought, or judgment in the action 
     was initially entered, be given effect as if the action had 
     originally been filed under section 1605A(c) of title 28, 
     United States Code.
       (B) Defenses waived.--The defenses of res judicata, 
     collateral estoppel, and limitation period are waived--
       (i) in any action with respect to which a motion is made 
     under subparagraph (A), or
       (ii) in any action that was originally brought, before the 
     date of the enactment of this Act, under section 1605(a)(7) 
     of title 28, United States Code, or section 589 of the 
     Foreign Operations, Export Financing, and Related Programs 
     Appropriations Act, 1997 (as contained in 101(c) of Division 
     A of Public Law 104-208), and is refiled under 1605A(c) of 
     title 28, United States Code,
     to the extent such defenses are based on the claim in the 
     action.
       (C) Time limitations.--A motion may be made or an action 
     may be refiled under subparagraph (A) only--
       (i) if the original action was commenced not later than the 
     latter of--

       (I)  10 years after April 24, 1996; or
       (II) 10 years after the cause of action arose; and

       (ii) within the 60-day period beginning on the date of the 
     enactment of this Act.
       (3) Related actions.--If an action arising out of an act or 
     incident has been timely commenced under section 1605(a)(7) 
     of title 28, United States Code, or section 589 of the 
     Foreign Operations, Export Financing, and Related Programs 
     Appropriations Act, 1997 (as contained in 101(c) of Division 
     A of Public Law 104-208), any other action arising out of the 
     same act or incident may be brought under section 1605A of 
     title 28, United States Code, if the action is commenced not 
     later than the latter of 60 days after--
       (A) the date of the entry of judgment in the original 
     action; or
       (B) the date of the enactment of this Act.
       (4) Preserving the jurisdiction of the courts.--Nothing in 
     section 1503 of the Emergency Wartime Supplemental 
     Appropriations Act, 2003 (Public Law 108-11, 117 Stat. 579) 
     has ever authorized, directly or indirectly, the making 
     inapplicable of any provision of chapter 97 of title 28, 
     United States Code, or the removal of the jurisdiction of any 
     court of the United States.
       (d) Severability.--If any provision of this section or the 
     amendments made by this section, or the application of such 
     provision to any person or circumstance, is held invalid, the 
     remainder of this section and such amendments, and the 
     application of such provision to other persons not similarly 
     situated or to other circumstances, shall not be affected by 
     such invalidation.
                  TITLE XI--CIVILIAN PERSONNEL MATTERS
Sec. 1101. Extension of authority to waive annual limitation on total 
              compensation paid to Federal civilian employees working 
              overseas under areas of United States Central Command.
Sec. 1102. Continuation of life insurance coverage for Federal 
              employees called to active duty.
Sec. 1103. Transportation of dependents, household effects, and 
              personal property to former home following death of 
              Federal employee where death resulted from disease or 
              injury incurred in the Central Command area of 
              responsibility.
Sec. 1104. Special benefits for civilian employees assigned on 
              deployment temporary change of station.
Sec. 1105. Death gratuity authorized for Federal employees.
Sec. 1106. Modifications to the National Security Personnel System.
Sec. 1107. Requirement for full implementation of personnel 
              demonstration project.
Sec. 1108. Authority for inclusion of certain Office of Defense 
              Research and Engineering positions in experimental 
              personnel program for scientific and technical personnel.
Sec. 1109. Pilot program for the temporary assignment of information 
              technology personnel to private sector organizations.
Sec. 1110. Compensation for Federal wage system employees for certain 
              travel hours.
Sec. 1111. Travel compensation for wage grade personnel.
Sec. 1112. Accumulation of annual leave by senior level employees.
Sec. 1113. Uniform allowances for civilian employees.
Sec. 1114. Flexibility in setting pay for employees who move from a 
              Department of Defense or Coast Guard nonappropriated fund 
              instrumentality position to a position in the General 
              Schedule pay system.
Sec. 1115. Retirement service credit for service as cadet or midshipman 
              at a military service academy.
Sec. 1116. Authorization for increased compensation for faculty and 
              staff of the Uniformed Services University of the Health 
              Sciences.
Sec. 1117. Report on establishment of a scholarship program for 
              civilian mental health professionals.

     SEC. 1101. EXTENSION OF AUTHORITY TO WAIVE ANNUAL LIMITATION 
                   ON TOTAL COMPENSATION PAID TO FEDERAL CIVILIAN 
                   EMPLOYEES WORKING OVERSEAS UNDER AREAS OF 
                   UNITED STATES CENTRAL COMMAND.

       Section 1105 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3450), as 
     amended by section 1105 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364; 
     120 Stat. 2409), is amended--
       (1) in subsection (a)--
       (A) by striking ``and 2007'' and inserting ``2007, and 
     2008''; and
       (B) by striking ``Code).'' and inserting ``Code) or, during 
     2008, a military operation (including a contingency 
     operation, as so defined) or an operation in response to an 
     emergency declared by the President.''; and
       (2) in subsection (b), by striking ``2007.'' and inserting 
     ``2007 or 2008.''.

     SEC. 1102. CONTINUATION OF LIFE INSURANCE COVERAGE FOR 
                   FEDERAL EMPLOYEES CALLED TO ACTIVE DUTY.

       Section 8706 of title 5, United States Code, is amended--
       (1) by redesignating subsections (d) through (g) as 
     subsections (e) through (h), respectively; and
       (2) by inserting after subsection (c) the following:
       ``(d)(1) An employee who enters on approved leave without 
     pay in the circumstances described in paragraph (2) may elect 
     to have such employee's life insurance continue (beyond the 
     end of the 12 months of coverage provided for under 
     subsection (a)) for an additional 12 months and arrange to 
     pay currently into the Employees' Life Insurance Fund, 
     through such employee's employing agency, both employee and 
     agency contributions, from the beginning of that additional 
     12 months of coverage. The employing agency shall forward the 
     premium payments to the Fund. If the employee does not so

[[Page 32614]]

     elect, such employee's insurance will continue during nonpay 
     status and stop as provided by subsection (a). An individual 
     making an election under this subsection may cancel that 
     election at any time, in which case such employee's insurance 
     will stop as provided by subsection (a) or upon receipt of 
     notice of cancellation, whichever is later.
       ``(2) This subsection applies in the case of any employee 
     who--
       ``(A) is a member of a reserve component of the armed 
     forces called or ordered to active duty under a call or order 
     that does not specify a period of 30 days or less; and
       ``(B) enters on approved leave without pay to perform 
     active duty pursuant to such call or order.''.

     SEC. 1103. TRANSPORTATION OF DEPENDENTS, HOUSEHOLD EFFECTS, 
                   AND PERSONAL PROPERTY TO FORMER HOME FOLLOWING 
                   DEATH OF FEDERAL EMPLOYEE WHERE DEATH RESULTED 
                   FROM DISEASE OR INJURY INCURRED IN THE CENTRAL 
                   COMMAND AREA OF RESPONSIBILITY.

       (a) In General.--Paragraph (2) of section 5742(b) of title 
     5, United States Code, is amended to read as follows:
       ``(2) the expense of transporting his dependents, including 
     expenses of packing, crating, draying, and transporting 
     household effects and other personal property to his former 
     home or such other place as is determined by the head of the 
     agency concerned, if--
       ``(A) the employee died while performing official duties 
     outside the continental United States or in transit thereto 
     or therefrom; or
       ``(B) in the case of an employee who was a party to a 
     mandatory mobility agreement that was in effect when the 
     employee died--
       ``(i) the employee died in the circumstances described in 
     subparagraph (A); or
       ``(ii)(I) the employee died as a result of disease or 
     injury incurred while performing official duties--

       ``(aa) in an overseas location that, at the time such 
     employee was performing such official duties, was within the 
     area of responsibility of the Commander of the United States 
     Central Command; and
       ``(bb) in direct support of or directly related to a 
     military operation, including a contingency operation (as 
     defined in section 101(13) of title 10) or an operation in 
     response to an emergency declared by the President; and

       ``(II) the employee's dependents were residing either 
     outside the continental United States or within the 
     continental United States when the employee died; and''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to deaths occurring on or after the 
     date of the enactment of this Act.

     SEC. 1104. SPECIAL BENEFITS FOR CIVILIAN EMPLOYEES ASSIGNED 
                   ON DEPLOYMENT TEMPORARY CHANGE OF STATION.

       (a) Authority.--Subchapter II of chapter 57 of title 5, 
     United States Code, is amended by inserting after section 
     5737 the following:

     ``Sec. 5737a. Employees temporarily deployed in contingency 
       operations

       ``(a) Definitions.--For purposes of this section--
       ``(1) the term `covered employee' means an individual who--
       ``(A) is an employee of an Executive agency or a military 
     department, excluding a Government controlled corporation; 
     and
       ``(B) is assigned on a temporary change of station in 
     support of a contingency operation;
       ``(2) the term `temporary change of station', as used with 
     respect to an employee, means an assignment--
       ``(A) from the employee's official duty station to a 
     temporary duty station; and
       ``(B) for which such employee is eligible for expenses 
     under section 5737; and
       ``(3) the term `contingency operation' has the meaning 
     given such term by section 1482a(c) of title 10.
       ``(b) Quarters and Rations.--The head of an agency may 
     provide quarters and rations, without charge, to any covered 
     employee of such agency during the period of such employee's 
     temporary assignment (as described in subsection (a)(1)(B)).
       ``(c) Storage of Motor Vehicle.--The head of an agency may 
     provide for the storage, without charge, or for the 
     reimbursement of the cost of storage, of a motor vehicle that 
     is owned or leased by a covered employee of such agency (or 
     by a dependent of such an employee) and that is for the 
     personal use of the covered employee. This subsection shall 
     apply--
       ``(1) with respect to storage during the period of the 
     employee's temporary assignment (as described in subsection 
     (a)(1)(B)); and
       ``(2) in the case of a covered employee, with respect to 
     not more than one motor vehicle as of any given time.
       ``(d) Relationship to Other Benefits.--Any benefits under 
     this section shall be in addition to (and not in lieu of) any 
     other benefits for which the covered employee is otherwise 
     eligible.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     57 of such title is amended by inserting after the item 
     relating to section 5737 the following:

``5737a. Employees temporarily deployed in contingency operations.''.

     SEC. 1105. DEATH GRATUITY AUTHORIZED FOR FEDERAL EMPLOYEES.

       (a) Death Gratuity Authorized.--Chapter 81 of title 5, 
     United States Code, is amended by inserting after section 
     8102 the following:

     ``Sec. 8102a. Death gratuity for injuries incurred in 
       connection with employee's service with an Armed Force

       ``(a) Death Gratuity Authorized.--The United States shall 
     pay a death gratuity of up to $100,000 to or for the survivor 
     prescribed by subsection (d) immediately upon receiving 
     official notification of the death of an employee who dies of 
     injuries incurred in connection with the employee's service 
     with an Armed Force in a contingency operation.
       ``(b) Retroactive Payment in Certain Cases.--At the 
     discretion of the Secretary concerned, subsection (a) may 
     apply in the case of an employee who died, on or after 
     October 7, 2001, and before the date of enactment of this 
     section, as a result of injuries incurred in connection with 
     the employee's service with an Armed Force in the theater of 
     operations of Operation Enduring Freedom or Operation Iraqi 
     Freedom.
       ``(c) Relationship to Other Benefits.--The death gratuity 
     payable under this section shall be reduced by the amount of 
     any death gratuity provided under section 413 of the Foreign 
     Service Act of 1980, section 1603 of the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006, or any other law of 
     the United States based on the same death.
       ``(d) Eligible Survivors.--
       ``(1) Subject to paragraph (5), a death gratuity payable 
     upon the death of a person covered by subsection (a) shall be 
     paid to or for the living survivor highest on the following 
     list:
       ``(A) The employee's surviving spouse.
       ``(B) The employee's children, as prescribed by paragraph 
     (2), in equal shares.
       ``(C) If designated by the employee, any one or more of the 
     following persons:
       ``(i) The employee's parents or persons in loco parentis, 
     as prescribed by paragraph (3).
       ``(ii) The employee's brothers.
       ``(iii) The employee's sisters.
       ``(D) The employee's parents or persons in loco parentis, 
     as prescribed by paragraph (3), in equal shares.
       ``(E) The employee's brothers and sisters in equal shares.
     Subparagraphs (C) and (E) of this paragraph include brothers 
     and sisters of the half blood and those through adoption.
       ``(2) Paragraph (1)(B) applies, without regard to age or 
     marital status, to--
       ``(A) legitimate children;
       ``(B) adopted children;
       ``(C) stepchildren who were a part of the decedent's 
     household at the time of death;
       ``(D) illegitimate children of a female decedent; and
       ``(E) illegitimate children of a male decedent--
       ``(i) who have been acknowledged in writing signed by the 
     decedent;
       ``(ii) who have been judicially determined, before the 
     decedent's death, to be his children;
       ``(iii) who have been otherwise proved, by evidence 
     satisfactory to the employing agency, to be children of the 
     decedent; or
       ``(iv) to whose support the decedent had been judicially 
     ordered to contribute.
       ``(3) Subparagraphs (C) and (D) of paragraph (1), so far as 
     they apply to parents and persons in loco parentis, include 
     fathers and mothers through adoption, and persons who stood 
     in loco parentis to the decedent for a period of not less 
     than one year at any time before the decedent became an 
     employee. However, only one father and one mother, or their 
     counterparts in loco parentis, may be recognized in any case, 
     and preference shall be given to those who exercised a 
     parental relationship on the date, or most nearly before the 
     date, on which the decedent became an employee.
       ``(4) Beginning on the date of the enactment of this 
     paragraph, a person covered by this section may designate 
     another person to receive not more than 50 percent of the 
     amount payable under this section. The designation shall 
     indicate the percentage of the amount, to be specified only 
     in 10 percent increments up to the maximum of 50 percent, 
     that the designated person may receive. The balance of the 
     amount of the death gratuity shall be paid to or for the 
     living survivors of the person concerned in accordance with 
     subparagraphs (A) through (E) of paragraph (1).
       ``(5) If a person entitled to all or a portion of a death 
     gratuity under paragraph (1) or (4) dies before the person 
     receives the death gratuity, it shall be paid to the living 
     survivor next in the order prescribed by paragraph (1).
       ``(e) Definitions.--(1) The term `contingency operation' 
     has the meaning given to that term in section 1482a(c) of 
     title 10, United States Code.
       ``(2) The term `employee' has the meaning provided in 
     section 8101 of this title, but also includes a 
     nonappropriated fund instrumentality employee, as defined in 
     section 1587(a)(1) of title 10.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 81 of such title is amended by inserting 
     after the item relating to section 8102 the following:

``8102a. Death gratuity for injuries incurred in connection with 
              employee's service with an Armed Force.''.

     SEC. 1106. MODIFICATIONS TO THE NATIONAL SECURITY PERSONNEL 
                   SYSTEM.

       (a) In General.--Section 9902 of title 5, United States 
     Code, is amended to read as follows:

     ``Sec. 9902. Establishment of human resources management 
       system

       ``(a) In General.--The Secretary may, in regulations 
     prescribed jointly with the Director, establish, and from 
     time to time adjust, a human

[[Page 32615]]

     resources management system for some or all of the 
     organizational or functional units of the Department of 
     Defense. The human resources management system established 
     under authority of this section shall be referred to as the 
     `National Security Personnel System'.
       ``(b) System Requirements.--Any system established under 
     subsection (a) shall--
       ``(1) be flexible;
       ``(2) be contemporary;
       ``(3) not waive, modify, or otherwise affect--
       ``(A) the public employment principles of merit and fitness 
     set forth in section 2301, including the principles of hiring 
     based on merit, fair treatment without regard to political 
     affiliation or other nonmerit considerations, equal pay for 
     equal work, and protection of employees against reprisal for 
     whistleblowing;
       ``(B) any provision of section 2302, relating to prohibited 
     personnel practices;
       ``(C)(i) any provision of law referred to in section 
     2302(b)(1), (8), and (9); or
       ``(ii) any provision of law implementing any provision of 
     law referred to in section 2302(b)(1), (8), and (9) by--
       ``(I) providing for equal employment opportunity through 
     affirmative action; or
       ``(II) providing any right or remedy available to any 
     employee or applicant for employment in the public service;
       ``(D) any other provision of this part (as described in 
     subsection (d)); or
       ``(E) any rule or regulation prescribed under any provision 
     of law referred to in this paragraph;
       ``(4) not apply to any prevailing rate employees, as 
     defined in section 5342(a)(2);
       ``(5) ensure that employees may organize, bargain 
     collectively, and participate through labor organizations of 
     their own choosing in decisions which affect them, subject to 
     any exclusion from coverage or limitation on negotiability 
     established pursuant to law;
       ``(6) not be limited by any specific law or authority under 
     this title, or by any rule or regulation prescribed under 
     this title, that is waived in regulations prescribed under 
     this chapter, subject to paragraph (3); and
       ``(7) include a performance management system that 
     incorporates the following elements:
       ``(A) Adherence to merit principles set forth in section 
     2301.
       ``(B) A fair, credible, and transparent employee 
     performance appraisal system.
       ``(C) A link between the performance management system and 
     the agency's strategic plan.
       ``(D) A means for ensuring employee involvement in the 
     design and implementation of the system.
       ``(E) Adequate training and retraining for supervisors, 
     managers, and employees in the implementation and operation 
     of the performance management system.
       ``(F) A process for ensuring ongoing performance feedback 
     and dialogue between supervisors, managers, and employees 
     throughout the appraisal period, and setting timetables for 
     review.
       ``(G) Effective safeguards to ensure that the management of 
     the system is fair and equitable and based on employee 
     performance.
       ``(H) A means for ensuring that adequate agency resources 
     are allocated for the design, implementation, and 
     administration of the performance management system.
       ``(I) A pay-for-performance evaluation system to better 
     link individual pay to performance, and provide an equitable 
     method for appraising and compensating employees.
       ``(c) Personnel Management at Defense Laboratories.--
       ``(1) The National Security Personnel System shall not 
     apply with respect to a laboratory under paragraph (2) before 
     October 1, 2011, and shall apply on or after October 1, 2011, 
     only to the extent that the Secretary determines that the 
     flexibilities provided by the National Security Personnel 
     System are greater than the flexibilities provided to those 
     laboratories pursuant to section 342 of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337; 
     108 Stat. 2721) and section 1101 of the Strom Thurmond 
     National Defense Authorization Act for Fiscal Year 1999 (5 
     U.S.C. 3104 note), respectively.
       ``(2) The laboratories to which this subsection applies 
     are--
       ``(A) the Aviation and Missile Research Development and 
     Engineering Center;
       ``(B) the Army Research Laboratory;
       ``(C) the Medical Research and Materiel Command;
       ``(D) the Engineer Research and Development Command;
       ``(E) the Communications-Electronics Command;
       ``(F) the Soldier and Biological Chemical Command;
       ``(G) the Naval Sea Systems Command Centers;
       ``(H) the Naval Research Laboratory;
       ``(I) the Office of Naval Research; and
       ``(J) the Air Force Research Laboratory.
       ``(d) Other Nonwaivable Provisions.--The other provisions 
     of this part referred to in subsection (b)(3)(D) are--
       ``(1) subparts A, B, E, G, and H of this part; and
       ``(2) chapters 41, 45, 47, 55 (except subchapter V thereof, 
     apart from section 5545b), 57, 59, 71, 72, 73, 75, 77, and 
     79, and this chapter.
       ``(e) Limitations Relating to Pay.--
       ``(1) Nothing in this section shall constitute authority to 
     modify the pay of any employee who serves in an Executive 
     Schedule position under subchapter II of chapter 53.
       ``(2) Except as provided for in paragraph (1), the total 
     amount in a calendar year of allowances, differentials, 
     bonuses, awards, or other similar cash payments paid under 
     this title to any employee who is paid under section 5376 or 
     5383 or under title 10 or under other comparable pay 
     authority established for payment of Department of Defense 
     senior executive or equivalent employees may not exceed the 
     total annual compensation payable to the Vice President under 
     section 104 of title 3.
       ``(3) To the maximum extent practicable, the rates of 
     compensation for civilian employees at the Department of 
     Defense shall be adjusted at the same rate, and in the same 
     proportion, as are rates of compensation for members of the 
     uniformed services.
       ``(4) To the maximum extent practicable, for fiscal years 
     2004 through 2012, the overall amount allocated for 
     compensation of the civilian employees of an organizational 
     or functional unit of the Department of Defense that is 
     included in the National Security Personnel System shall not 
     be less than the amount that would have been allocated for 
     compensation of such employees for such fiscal year if they 
     had not been converted to the National Security Personnel 
     System, based on, at a minimum--
       ``(A) the number and mix of employees in such 
     organizational or functional unit prior to the conversion of 
     such employees to the National Security Personnel System; and
       ``(B) adjusted for normal step increases and rates of 
     promotion that would have been expected, had such employees 
     remained in their previous pay schedule.
       ``(5) To the maximum extent practicable, the regulations 
     implementing the National Security Personnel System shall 
     provide a formula for calculating the overall amount to be 
     allocated for fiscal years after fiscal year 2012 for 
     compensation of the civilian employees of an organization or 
     functional unit of the Department of Defense that is included 
     in the National Security Personnel System. The formula shall 
     ensure that in the aggregate, employees are not disadvantaged 
     in terms of the overall amount of pay available as a result 
     of conversion to the National Security Personnel System, 
     while providing flexibility to accommodate changes in the 
     function of the organization, changes in the mix of employees 
     performing those functions, and other changed circumstances 
     that might impact pay levels.
       ``(6) Amounts allocated for compensation of civilian 
     employees of the Department of Defense pursuant to paragraphs 
     (4) and (5) shall be available only for the purpose of 
     providing such compensation.
       ``(7) At the time of any annual adjustment to pay schedules 
     pursuant to section 5303, the rate of basic pay for each 
     employee of an organizational or functional unit of the 
     Department of Defense that is included in the National 
     Security Personnel System who receives a performance rating 
     above unacceptable or who does not have a current rating of 
     record for the most recently completed appraisal period shall 
     be adjusted by no less than 60 percent of the amount of such 
     adjustment. The balance of the amount that would have been 
     available for an annual adjustment under section 5303 shall 
     be allocated to pay pool funding, for the purpose of 
     increasing rates of pay on the basis of employee performance.
       ``(8) Each employee of an organizational or functional unit 
     of the Department of Defense that is included in the National 
     Security Personnel System who receives a performance rating 
     above unacceptable or who does not have a current rating of 
     record for the most recently completed appraisal period shall 
     receive--
       ``(A) locality-based comparability payments under section 
     5304 and section 5304a in the same manner and to the same 
     extent as employees under the General Schedule; or
       ``(B) the full measure of any other local market supplement 
     applicable to the employee if locality-based comparability 
     payments referred to in subparagraph (A) are not generally 
     applicable to the employee.
     Nothing in this paragraph shall be construed to make 
     locality-based comparability payments or other local market 
     supplements payable to any category of employees or positions 
     which were ineligible for such payments or supplements (as 
     the case may be) as of the day before the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2004.
       ``(9) Any rate of pay established or adjusted in accordance 
     with the requirements of this section shall be non-
     negotiable, but shall be subject to procedures and 
     appropriate arrangements of paragraphs (2) and (3) of section 
     7106(b), except that nothing in this paragraph shall be 
     construed to eliminate the bargaining rights of any category 
     of employees who were authorized to negotiate rates of pay as 
     of the day before the date of the enactment of the National 
     Defense Authorization Act for Fiscal Year 2004.
       ``(f) Provisions Regarding National Level Bargaining.--
       ``(1) The Secretary may bargain with a labor organization 
     which has been accorded exclusive recognition under chapter 
     71 at an organizational level above the level of exclusive 
     recognition. The decision to bargain above the level of 
     exclusive recognition shall not be subject to review. The 
     Secretary shall consult with the labor organization before 
     determining the appropriate organizational level of 
     bargaining.
       ``(2) Any such bargaining shall--
       ``(A) address issues that are--
       ``(i) subject to bargaining under chapter 71 and this 
     chapter;
       ``(ii) applicable to multiple bargaining units; and

[[Page 32616]]

       ``(iii) raised by either party to the bargaining;
       ``(B) except as agreed by the parties or directed through 
     an independent dispute resolution process agreed upon by the 
     parties, be binding on all affected subordinate bargaining 
     units of the labor organization at the level of recognition 
     and their exclusive representatives, and the Department of 
     Defense and its subcomponents, without regard to levels of 
     recognition;
       ``(C) to the extent agreed by the parties or directed 
     through an independent dispute resolution process agreed upon 
     by the parties, supersede conflicting provisions of all other 
     collective bargaining agreements of the labor organization, 
     including collective bargaining agreements negotiated with an 
     exclusive representative at the level of recognition; and
       ``(D) except as agreed by the parties or directed through 
     an independent dispute resolution process agreed upon by the 
     parties, not be subject to further negotiations for any 
     purpose, including bargaining at the level of recognition.
       ``(3) Any independent dispute resolution process agreed to 
     by the parties for the purposes of paragraph (2) shall have 
     the authority to address all issues on which the parties are 
     unable to reach agreement.
       ``(4) The National Guard Bureau and the Army and Air Force 
     National Guard may be included in coverage under this 
     subsection.
       ``(5) Any bargaining completed pursuant to this subsection 
     with a labor organization not otherwise having national 
     consultation rights with the Department of Defense or its 
     subcomponents shall not create any obligation on the 
     Department of Defense or its subcomponents to confer national 
     consultation rights on such a labor organization.
       ``(g) Provisions Related to Separation and Retirement 
     Incentives.--
       ``(1) The Secretary may establish a program within the 
     Department of Defense under which employees may be eligible 
     for early retirement, offered separation incentive pay to 
     separate from service voluntarily, or both. This authority 
     may be used to reduce the number of personnel employed by the 
     Department of Defense or to restructure the workforce to meet 
     mission objectives without reducing the overall number of 
     personnel. This authority is in addition to, and 
     notwithstanding, any other authorities established by law or 
     regulation for such programs.
       ``(2)(A) The Secretary may not authorize the payment of 
     voluntary separation incentive pay under paragraph (1) to 
     more than 25,000 employees in any fiscal year, except that 
     employees who receive voluntary separation incentive pay as a 
     result of a closure or realignment of a military installation 
     under the Defense Base Closure and Realignment Act of 1990 
     (title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) shall 
     not be included in that number.
       ``(B) The Secretary shall prepare a report each fiscal year 
     setting forth the number of employees who received such pay 
     as a result of a closure or realignment of a military base as 
     described under subparagraph (A).
       ``(C) The Secretary shall submit the report under 
     subparagraph (B) to the Committee on Armed Services and the 
     Committee on Governmental Affairs of the Senate, and the 
     Committee on Armed Services and the Committee on Government 
     Reform of the House of Representatives.
       ``(3) For purposes of this section, the term `employee' 
     means an employee of the Department of Defense, serving under 
     an appointment without time limitation, except that such term 
     does not include--
       ``(A) a reemployed annuitant under subchapter III of 
     chapter 83 or chapter 84, or another retirement system for 
     employees of the Federal Government;
       ``(B) an employee having a disability on the basis of which 
     such employee is or would be eligible for disability 
     retirement under any of the retirement systems referred to in 
     subparagraph (A); or
       ``(C) for purposes of eligibility for separation incentives 
     under this section, an employee who is in receipt of a 
     decision notice of involuntary separation for misconduct or 
     unacceptable performance.
       ``(4) An employee who is at least 50 years of age and has 
     completed 20 years of service, or has at least 25 years of 
     service, may, pursuant to regulations promulgated under this 
     section, apply and be retired from the Department of Defense 
     and receive benefits in accordance with chapter 83 or 84 if 
     the employee has been employed continuously within the 
     Department of Defense for more than 30 days before the date 
     on which the determination to conduct a reduction or 
     restructuring within 1 or more Department of Defense 
     components is approved.
       ``(5)(A) Separation pay shall be paid in a lump sum or in 
     installments and shall be equal to the lesser of --
       ``(i) an amount equal to the amount the employee would be 
     entitled to receive under section 5595(c), if the employee 
     were entitled to payment under such section; or
       ``(ii) $25,000.
       ``(B) Separation pay shall not be a basis for payment, and 
     shall not be included in the computation, of any other type 
     of Government benefit. Separation pay shall not be taken into 
     account for the purpose of determining the amount of any 
     severance pay to which an individual may be entitled under 
     section 5595, based on any other separation.
       ``(C) Separation pay, if paid in installments, shall cease 
     to be paid upon the recipient's acceptance of employment by 
     the Federal Government, or commencement of work under a 
     personal services contract as described in paragraph (6).
       ``(6)(A) An employee who receives separation pay under such 
     program may not be reemployed by the Department of Defense 
     for a 12-month period beginning on the effective date of the 
     employee's separation, unless this prohibition is waived by 
     the Secretary on a case-by-case basis.
       ``(B) An employee who receives separation pay under this 
     section on the basis of a separation occurring on or after 
     the date of the enactment of the Federal Workforce 
     Restructuring Act of 1994 (Public Law 103-226; 108 Stat. 111) 
     and accepts employment with the Government of the United 
     States, or who commences work through a personal services 
     contract with the United States within 5 years after the date 
     of the separation on which payment of the separation pay is 
     based, shall be required to repay the entire amount of the 
     separation pay to the Department of Defense. If the 
     employment is with an Executive agency (as defined by section 
     105) other than the Department of Defense, the Director may, 
     at the request of the head of that agency, waive the 
     repayment if the individual involved possesses unique 
     abilities and is the only qualified applicant available for 
     the position. If the employment is within the Department of 
     Defense, the Secretary may waive the repayment if the 
     individual involved is the only qualified applicant available 
     for the position. If the employment is with an entity in the 
     legislative branch, the head of the entity or the appointing 
     official may waive the repayment if the individual involved 
     possesses unique abilities and is the only qualified 
     applicant available for the position. If the employment is 
     with the judicial branch, the Director of the Administrative 
     Office of the United States Courts may waive the repayment if 
     the individual involved possesses unique abilities and is the 
     only qualified applicant available for the position.
       ``(7) Under this program, early retirement and separation 
     pay may be offered only pursuant to regulations established 
     by the Secretary, subject to such limitations or conditions 
     as the Secretary may require.
       ``(h) Provisions Relating to Reemployment.--
       ``(1) Except as provided under paragraph (2), if an 
     annuitant receiving an annuity from the Civil Service 
     Retirement and Disability Fund becomes employed in a position 
     within the Department of Defense, his annuity shall continue. 
     An annuitant so reemployed shall not be considered an 
     employee for purposes of subchapter III of chapter 83 or 
     chapter 84.
       ``(2)(A) An annuitant retired under section 8336(d)(1) or 
     8414(b)(1)(A) receiving an annuity from the Civil Service 
     Retirement and Disability Fund, who becomes employed in a 
     position within the Department of Defense after the date of 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2004 (Public Law 108-136), may elect to be 
     subject to section 8344 or 8468 (as the case may be).
       ``(B) An election for coverage under this paragraph shall 
     be filed not later than the later of 90 days after the date 
     the Department of Defense--
       ``(i) prescribes regulations to carry out this subsection; 
     or
       ``(ii) takes reasonable actions to notify employees who may 
     file an election.
       ``(C) If an employee files an election under this 
     paragraph, coverage shall be effective beginning on the first 
     day of the first applicable pay period beginning on or after 
     the date of the filing of the election.
       ``(D) Paragraph (1) shall apply to an individual who is 
     eligible to file an election under subparagraph (A) and does 
     not file a timely election under subparagraph (B).
       ``(3) The Secretary shall prescribe regulations to carry 
     out this subsection.
       ``(i) Additional Provisions Relating to Personnel 
     Management.--
       ``(1) Subject to the requirements of chapter 71 and the 
     limitations in subsection (b)(3), the Secretary of Defense, 
     in establishing and implementing the National Security 
     Personnel System under subsection (a), shall not be limited 
     by any provision of this title or any rule or regulation 
     prescribed under this title in establishing and implementing 
     regulations relating to--
       ``(A) the methods of establishing qualification 
     requirements for, recruitment for, and appointments to 
     positions; and
       ``(B) the methods of assigning, reassigning, detailing, 
     transferring, or promoting employees.
       ``(2) In implementing this subsection, the Secretary shall 
     comply with the provisions of section 2302(b)(11), regarding 
     veterans' preference requirements, as provided for in 
     subsection (b)(3).
       ``(j) Phase-in.--The Secretary may not, in any calendar 
     year, add any organizational or functional unit to the 
     National Security Personnel System which would cause the 
     total number of employees added to such System in such year 
     to exceed 100,000.''.
       (b) Implementation.--
       (1) The requirements of section 9902 of title 5, United 
     States Code, as amended by this section, may be implemented 
     through rules promulgated jointly by the Secretary of Defense 
     and the Director of the Office of Personnel Management after 
     notice and opportunity for public comment or through 
     Department of Defense rules or internal agency implementing 
     issuances. Rules promulgated jointly by the Secretary and the 
     Director under this paragraph shall be treated as major rules 
     for the purposes of section 801 of title 5, United States 
     Code.
       (2) Both rules and implementing issuances shall be subject 
     to collective bargaining consistent with the requirements of 
     chapter 71 of title 5, United States Code. Rules promulgated

[[Page 32617]]

     jointly by the Secretary of Defense and the Director of the 
     Office of Personnel Management after notice and opportunity 
     for public comment and in accordance with the requirements of 
     section 801 of such title 5 for a major rule shall be treated 
     in the same manner as government-wide rules for the purpose 
     of such collective bargaining, if such rules are uniformly 
     applicable to all organizational or functional units included 
     in the National Security Personnel System.
       (3) Any rules and implementing issuances that were adopted 
     prior to the date of the enactment of this Act--
       (A) shall be invalid to the extent that they are 
     inconsistent with the requirements of section 9902 of title 
     5, United States Code, as amended by this section;
       (B) shall not supersede a collective bargaining agreement 
     that was in place prior to the date on which the rule or 
     implementing issuance was promulgated; and
       (C) shall be subject to collective bargaining--
       (i) in the case of rules which are uniformly applicable to 
     all organizational or functional units included in the 
     National Security Personnel System and issued jointly by the 
     Secretary of Defense and the Director of the Office of 
     Personnel Management pursuant to subsection 9902(f)(1) of 
     title 5, United States Code (as in effect prior to the 
     enactment of this section), only as to impact and 
     implementation, when applied to employees of the Department 
     of Defense from any bargaining unit;
       (ii) in the case of any other rules or implementing 
     issuances, to the extent provided in chapter 71 of title 5, 
     United States Code.
       (4) The availability of judicial review of any rules or 
     implementing issuances that were adopted prior to the date of 
     the enactment of this Act shall not be affected by the 
     enactment of this section.
       (c) Comptroller General Reviews.--
       (1) The Comptroller General shall conduct annual reviews in 
     calendar years 2008, 2009 and 2010 of--
       (A) employee satisfaction with the National Security 
     Personnel System established pursuant to section 9902 of 
     title 5, United States Code, as amended by this section; and
       (B) the extent to which the Department of Defense has 
     effectively implemented accountability mechanisms, including 
     those established in section 9902(b)(7) of title 5, United 
     States Code, and internal safeguards for the National 
     Security Personnel System.
       (2) To the extent that the Department of Defense undertakes 
     internal assessments or employee surveys to assess employee 
     satisfaction with the National Security Personnel System in 
     any such calendar year, the Comptroller General shall--
       (A) determine whether such assessments or surveys are 
     appropriately designed and statistically valid; and
       (B) provide an independent evaluation of the results of 
     such assessments or surveys.
       (3) To the extent that the Department of Defense does not 
     undertake appropriately designed and statistically valid 
     employee surveys, the Comptroller General shall conduct such 
     a survey and provide an independent evaluation of the 
     results.
       (4) The Comptroller General shall report the results of 
     each annual review conducted under this subsection to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives, the Committee on Homeland Security and 
     Governmental Affairs of the Senate, and the Committee on 
     Oversight and Government Reform of the House of 
     Representatives.

     SEC. 1107. REQUIREMENT FOR FULL IMPLEMENTATION OF PERSONNEL 
                   DEMONSTRATION PROJECT.

       (a) Requirement.--The Secretary of Defense shall take all 
     necessary actions to fully implement and use the authorities 
     provided to the Secretary under 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 law by Public Law 
     106-398; 114 Stat. 1654A-315), to carry out personnel 
     management demonstration projects at Department of Defense 
     laboratories that are exempted by section 9902(c) of title 5, 
     United States Code, from inclusion in the Department of 
     Defense National Security Personnel System.
       (b) Process for Full Implementation.--The Secretary of 
     Defense shall also implement a process and implementation 
     plan to fully utilize the authorities described in subsection 
     (a) to enhance the performance of the missions of the 
     laboratories.
       (c) Other Laboratories.--Any flexibility available to any 
     demonstration laboratory shall be available for use at any 
     other laboratory as enumerated in section 9902(c)(2) of title 
     5, United States Code.
       (d) Submission of List and Description.--Not later than 
     March 1 of each year, beginning with March 1, 2008, the 
     Secretary of Defense shall submit to Congress a list and 
     description of the demonstration project notices, amendments, 
     and changes requested by the laboratories during the 
     preceding calendar year. The list shall include all approved 
     and disapproved notices, amendments, and changes, and the 
     reasons for disapproval or delay in approval.

     SEC. 1108. AUTHORITY FOR INCLUSION OF CERTAIN OFFICE OF 
                   DEFENSE RESEARCH AND ENGINEERING POSITIONS IN 
                   EXPERIMENTAL PERSONNEL PROGRAM FOR SCIENTIFIC 
                   AND TECHNICAL PERSONNEL.

       Section 1101(b)(1) of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note) 
     is amended--
       (1) in subparagraph (B), by striking ``and'' at the end;
       (2) in subparagraph (C), by adding ``and'' at the end; and
       (3) by adding after subparagraph (C) the following:
       ``(D) not more than a total of 10 scientific and 
     engineering positions in the Office of the Director of 
     Defense Research and Engineering;''.

     SEC. 1109. PILOT PROGRAM FOR THE TEMPORARY ASSIGNMENT OF 
                   INFORMATION TECHNOLOGY PERSONNEL TO PRIVATE 
                   SECTOR ORGANIZATIONS.

       (a) Assignment Authority.--The Secretary of Defense may, 
     with the agreement of the private sector organization and the 
     Department of Defense employee concerned, arrange for the 
     temporary assignment of such employee to such private sector 
     organization under this section. An employee shall be 
     eligible for such an assignment only if--
       (1) the employee--
       (A) works in the field of information technology 
     management;
       (B) is considered to be an exceptional employee;
       (C) is expected to assume increased information technology 
     management responsibilities in the future;
       (D) is compensated at not less than the GS-11 level (or the 
     equivalent); and
       (E) is serving under a career or career-conditional 
     appointment or an appointment of equivalent tenure in the 
     excepted service; and
       (2) the proposed assignment meets applicable requirements 
     of section 209(b) of the E-Government Act of 2002 (44 U.S.C. 
     3501 note).
       (b) Agreements.--The Secretary of Defense shall provide for 
     a written agreement between the Department of Defense and the 
     employee concerned regarding the terms and conditions of the 
     employee's assignment under this section. The agreement--
       (1) shall require that, upon completion of the assignment, 
     the employee will serve in the civil service for a period 
     equal to the length of the assignment; and
       (2) shall provide that if the employee fails to carry out 
     the agreement, such employee shall be liable to the United 
     States for payment of all expenses of the assignment, unless 
     that failure was for good and sufficient reason (as 
     determined by the Secretary of Defense).
     An amount for which an employee is liable under paragraph (2) 
     shall be treated as a debt due the United States.
       (c) Termination.--An assignment under this section may, at 
     any time and for any reason, be terminated by the Department 
     of Defense or the private sector organization concerned.
       (d) Duration.--An assignment under this section shall be 
     for a period of not less than 3 months and not more than 1 
     year, and may be extended in 3-month increments for a total 
     of not more than 1 additional year; however, no assignment 
     under this section may commence after September 30, 2010.
       (e) Considerations.--In carrying out this section, the 
     Secretary of Defense--
       (1) shall ensure that, of the assignments made under this 
     section each year, at least 20 percent are to small business 
     concerns (as defined by section 3703(e)(2)(A) of title 5, 
     United States Code); and
       (2) shall take into consideration the question of how 
     assignments under this section might best be used to help 
     meet the needs of the Department of Defense with respect to 
     the training of employees in information technology 
     management.
       (f) Numerical Limitation.--In no event may more than 10 
     employees be participating in assignments under this section 
     as of any given time.
       (g) Reporting Requirement.--
       (1) In general.--Not later than 6 months 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 the potential benefits 
     of a program under which employees specializing in 
     information technology may be temporarily assigned from 
     private sector organizations to the Department of Defense.
       (2) Contents.--The report shall include--
       (A) a statement of findings and an explanation of the bases 
     for those findings;
       (B) an assessment of the laws, rules, and processes 
     relating to the prevention of conflicts of interest and abuse 
     which would apply to private sector employees during the 
     period of their assignment to the Department of Defense, and 
     whether they need to be strengthened or otherwise changed;
       (C) mechanisms proposed for the governance and oversight of 
     the program; and
       (D) recommendations for any legislation which may be 
     necessary.

     SEC. 1110. COMPENSATION FOR FEDERAL WAGE SYSTEM EMPLOYEES FOR 
                   CERTAIN TRAVEL HOURS.

       Section 5544(a) of title 5, United States Code, is amended 
     in clause (iv) (in the third sentence following paragraph 
     (3)), by striking ``administratively.'' and inserting 
     ``administratively (including travel by the employee to such 
     event and the return of the employee from such event to the 
     employee's official duty station).''.

     SEC. 1111. TRAVEL COMPENSATION FOR WAGE GRADE PERSONNEL.

       (a) Eligibility for Compensatory Time Off for Travel.--
     Section 5550b(a) of title 5, United States Code, is amended 
     by striking ``section 5542(b)(2),'' and inserting ``any 
     provision of section 5542(b)(2) or 5544(a),''.
       (b) Conforming Amendment.--Section 5541(2)(xi) of such 
     title is amended by striking

[[Page 32618]]

     ``section 5544'' and inserting ``section 5544 or 5550b''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the earlier of--
       (1) the effective date of any regulations prescribed to 
     carry out such amendments; or
       (2) the 90th day after the date of the enactment of this 
     Act.

     SEC. 1112. ACCUMULATION OF ANNUAL LEAVE BY SENIOR LEVEL 
                   EMPLOYEES.

       Section 6304(f)(1) of title 5, United States Code, is 
     amended--
       (1) in the matter before subparagraph (A), by striking ``in 
     a position in--'' and inserting ``in--'';
       (2) in subparagraphs (A) through (E), by inserting ``a 
     position in'' before ``the'';
       (3) in subparagraph (D), by striking ``or'' at the end;
       (4) in subparagraph (E), by striking the period and 
     inserting a semicolon; and
       (5) by adding after subparagraph (E) the following:
       ``(F) a position to which section 5376 applies; or
       ``(G) a position designated under section 1607(a) of title 
     10 as an Intelligence Senior Level position.''.

     SEC. 1113. UNIFORM ALLOWANCES FOR CIVILIAN EMPLOYEES.

       Section 1593(b) of title 10, United States Code, is amended 
     by striking ``$400 per year.'' and inserting ``$400 per year 
     (or such higher maximum amount as the Secretary of Defense 
     may by regulation prescribe).''.

     SEC. 1114. FLEXIBILITY IN SETTING PAY FOR EMPLOYEES WHO MOVE 
                   FROM A DEPARTMENT OF DEFENSE OR COAST GUARD 
                   NONAPPROPRIATED FUND INSTRUMENTALITY POSITION 
                   TO A POSITION IN THE GENERAL SCHEDULE PAY 
                   SYSTEM.

       Section 5334(f) of title 5, United States Code, is 
     amended--
       (1) by striking ``(f)'' and inserting ``(f)(1)'';
       (2) in the first sentence, by striking ``does not exceed'' 
     and all that follows through ``2105(c).'' and inserting the 
     following: ``does not exceed--
       ``(A) if the highest previous rate of basic pay received by 
     that employee during the employee's service described in 
     section 2105(c) is equal to a rate of the appropriate grade, 
     such rate of the appropriate grade;
       ``(B) if the employee's highest previous rate of basic pay 
     (as described in subparagraph (A)) is between two rates of 
     the appropriate grade, the higher of those two rates; or
       ``(C) if the employee's highest previous rate of basic pay 
     (as described in subparagraph (A)) exceeds the maximum rate 
     of the appropriate grade, the maximum rate of the appropriate 
     grade.''; and
       (3) in the second sentence, by striking ``In the case of'' 
     and inserting the following:
       ``(2) In the case of''.

     SEC. 1115. RETIREMENT SERVICE CREDIT FOR SERVICE AS CADET OR 
                   MIDSHIPMAN AT A MILITARY SERVICE ACADEMY.

       (a) Civil Service Retirement System.--Section 8331(13) of 
     title 5, United States Code, is amended by striking ``but'' 
     and inserting ``and includes service as a cadet at the United 
     States Military Academy, the United States Air Force Academy, 
     or the United States Coast Guard Academy, or as a midshipman 
     at the United States Naval Academy, but''.
       (b) Federal Employees' Retirement System.--Section 8401(31) 
     of such title is amended by striking ``but'' and inserting 
     ``and includes service as a cadet at the United States 
     Military Academy, the United States Air Force Academy, or the 
     United States Coast Guard Academy, or as a midshipman at the 
     United States Naval Academy, but''.
       (c) Applicability.--The amendments made by this section 
     shall apply to--
       (1) any annuity, eligibility for which is based upon a 
     separation occurring before, on, or after the date of 
     enactment of this Act; and
       (2) any period of service as a cadet at the United States 
     Military Academy, the United States Air Force Academy, or the 
     United States Coast Guard Academy, or as a midshipman at the 
     United States Naval Academy, occurring before, on, or after 
     the date of enactment of this Act.

     SEC. 1116. AUTHORIZATION FOR INCREASED COMPENSATION FOR 
                   FACULTY AND STAFF OF THE UNIFORMED SERVICES 
                   UNIVERSITY OF THE HEALTH SCIENCES.

       Section 2113(c) of title 10, United States Code, as 
     redesignated by section 954(a)(3) of this Act, is amended--
       (1) in paragraph (1)--
       (A) by inserting ``(after due consideration by the 
     Secretary)'' before ``so as''; and
       (B) by striking ``within the vicinity of the District of 
     Columbia'' and inserting ``identified by the Secretary for 
     purposes of this paragraph''; and
       (2) in paragraph (4)--
       (A) by striking ``section 5373'' and inserting ``sections 
     5307 and 5373''; and
       (B) by adding at the end the following new sentence: ``In 
     no event may the total amount of compensation paid to an 
     employee under paragraph (1) in any year (including salary, 
     allowances, differentials, bonuses, awards, and other similar 
     cash payments) exceed the total amount of annual compensation 
     (excluding expenses) specified in section 102 of title 3.''.

     SEC. 1117. REPORT ON ESTABLISHMENT OF A SCHOLARSHIP PROGRAM 
                   FOR CIVILIAN MENTAL HEALTH PROFESSIONALS.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall, in consultation with the Assistant Secretary of 
     Defense for Health Affairs and each of the Surgeons General 
     of the Armed Forces, submit to Congress a report on the 
     feasibility and advisability of establishing a scholarship 
     program for civilian mental health professionals.
       (b) Elements.--The report shall include the following:
       (1) An assessment of a potential scholarship program that 
     provides certain educational funding to students seeking a 
     career in mental health services in exchange for service in 
     the Department of Defense.
       (2) An assessment of current scholarship programs which may 
     be expanded to include mental health professionals.
       (3) Recommendations regarding the establishment or 
     expansion of scholarship programs for mental health 
     professionals.
       (4) A plan to implement, or reasons for not implementing, 
     recommendations that will increase mental health staffing 
     across the Department of Defense.
             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                  Subtitle A--Assistance and Training

Sec. 1201. Military-to-military contacts and comparable activities.
Sec. 1202. Authority for support of military operations to combat 
              terrorism.
Sec. 1203. Medical care and temporary duty travel expenses for liaison 
              officers of certain foreign nations.
Sec. 1204. Extension and expansion of Department of Defense authority 
              to participate in multinational military centers of 
              excellence.
Sec. 1205. Reauthorization of Commanders' Emergency Response Program.
Sec. 1206. Authority to build the capacity of the Pakistan Frontier 
              Corps.
Sec. 1207. Authority to equip and train foreign personnel to assist in 
              accounting for missing United States Government 
              personnel.
Sec. 1208. Authority to provide automatic identification system data on 
              maritime shipping to foreign countries and international 
              organizations.
Sec. 1209. Report on foreign-assistance related programs carried out by 
              the Department of Defense.
Sec. 1210. Extension and enhancement of authority for security and 
              stabilization assistance.
Sec. 1211. Government Accountability Office report on Global Peace 
              Operations Initiative.
Sec. 1212. Repeal of limitations on military assistance under the 
              American Servicemembers' Protection Act of 2002.

          Subtitle B--Matters Relating to Iraq and Afghanistan

Sec. 1221. Modification of authorities relating to the Office of the 
              Special Inspector General for Iraq Reconstruction.
Sec. 1222. Limitation on availability of funds for certain purposes 
              relating to Iraq.
Sec. 1223. Report on United States policy and military operations in 
              Iraq.
Sec. 1224. Report on a comprehensive set of performance indicators and 
              measures for progress toward military and political 
              stability in Iraq.
Sec. 1225. Report on support from Iran for attacks against coalition 
              forces in Iraq.
Sec. 1226. Sense of Congress on the consequences of a failed state in 
              Iraq.
Sec. 1227. Sense of Congress on federalism in Iraq.
Sec. 1228. Tracking and monitoring of defense articles provided to the 
              Government of Iraq and other individuals and groups in 
              Iraq.
Sec. 1229. Special Inspector General for Afghanistan Reconstruction.
Sec. 1230. Report on progress toward security and stability in 
              Afghanistan.
Sec. 1231. United States plan for sustaining the Afghanistan National 
              Security Forces.
Sec. 1232. Report on enhancing security and stability in the region 
              along the border of Afghanistan and Pakistan.
Sec. 1233. Reimbursement of certain coalition nations for support 
              provided to United States military operations.
Sec. 1234. Logistical support for coalition forces supporting 
              operations in Iraq and Afghanistan.

                    Subtitle C--Iraq Refugee Crisis

Sec. 1241. Short title.
Sec. 1242. Processing mechanisms.
Sec. 1243. United States refugee program processing priorities.
Sec. 1244. Special immigrant status for certain Iraqis.
Sec. 1245. Senior Coordinator for Iraqi Refugees and Internally 
              Displaced Persons.
Sec. 1246. Countries with significant populations of Iraqi refugees.
Sec. 1247. Motion to reopen denial or termination of asylum.
Sec. 1248. Reports.
Sec. 1249. Authorization of appropriations.

[[Page 32619]]

             Subtitle D--Other Authorities and Limitations

Sec. 1251. Cooperative opportunities documents under cooperative 
              research and development agreements with NATO 
              organizations and other allied and friendly foreign 
              countries.
Sec. 1252. Extension and expansion of temporary authority to use 
              acquisition and cross-servicing agreements to lend 
              military equipment for personnel protection and 
              survivability.
Sec. 1253. Acceptance of funds from the Government of Palau for costs 
              of United States military Civic Action Team in Palau.
Sec. 1254. Repeal of requirement relating to North Korea.
Sec. 1255. Justice for Osama bin Laden and other leaders of al Qaeda.
Sec. 1256. Extension of Counterproliferation Program Review Committee.
Sec. 1257. Sense of Congress on the Western Hemisphere Institute for 
              Security Cooperation.
Sec. 1258. Sense of Congress on Iran.

                          Subtitle E--Reports

Sec. 1261. One-year extension of update on report on claims relating to 
              the bombing of the Labelle Discotheque.
Sec. 1262. Report on United States policy toward Darfur, Sudan.
Sec. 1263. Inclusion of information on asymmetric capabilities in 
              annual report on military power of the People's Republic 
              of China.
Sec. 1264. Report on application of the Uniform Code of Military 
              Justice to civilians accompanying the Armed Forces during 
              a time of declared war or contingency operation.
Sec. 1265. Report on family reunions between United States citizens and 
              their relatives in North Korea.
Sec. 1266. Reports on prevention of mass atrocities.
Sec. 1267. Report on threats to the United States from ungoverned 
              areas.
                  Subtitle A--Assistance and Training

     SEC. 1201. MILITARY-TO-MILITARY CONTACTS AND COMPARABLE 
                   ACTIVITIES.

       Section 168(c) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(9) The assignment of personnel described in paragraph 
     (3) or (4) on a non-reciprocal basis if the Secretary of 
     Defense determines that such an assignment, rather than an 
     exchange of personnel, is in the interests of the United 
     States.''.

     SEC. 1202. AUTHORITY FOR SUPPORT OF MILITARY OPERATIONS TO 
                   COMBAT TERRORISM.

       (a) Modification of Reporting Requirement.--Subsection (f) 
     of section 1208 of the Ronald W. Reagan National Defense 
     Authorization Act for Fiscal Year 2005 (Public Law 108-375; 
     118 Stat. 2086-2087) is amended to read as follows:
       ``(f) Annual Report.--
       ``(1) Report required.--Not later than 120 days after the 
     close of each fiscal year during which subsection (a) is in 
     effect, the Secretary of Defense shall submit to the 
     congressional defense committees a report on support provided 
     under that subsection during that fiscal year.
       ``(2) Matters to be included.--Each report required by 
     paragraph (1) shall describe the support provided, 
     including--
       ``(A) the country involved in the activity, the individual 
     or force receiving the support, and, to the maximum extent 
     practicable, the specific region of each country involved in 
     the activity;
       ``(B) the respective dates and a summary of congressional 
     notifications for each activity;
       ``(C) the unified commander for each activity, as well as 
     the related objectives, as established by that commander;
       ``(D) the total amount obligated to provide the support;
       ``(E) for each activity that amounts to more than $500,000, 
     specific budget details that explain the overall funding 
     level for that activity; and
       ``(F) a statement providing a brief assessment of the 
     outcome of the support, including specific indications of how 
     the support furthered the mission objective of special 
     operations forces and the types of follow-on support, if any, 
     that may be necessary.''.
       (b) Annual Limitation.--Subsection (g) of such section is 
     amended--
       (1) in the heading, by striking ``Fiscal Year 2005'' and 
     inserting ``Annual''; and
       (2) by striking ``fiscal year 2005'' and inserting ``each 
     fiscal year during which subsection (a) is in effect''.
       (c) Extension of Period of Authority.--Subsection (h) of 
     such section is amended by striking ``2007'' and inserting 
     ``2010''.

     SEC. 1203. MEDICAL CARE AND TEMPORARY DUTY TRAVEL EXPENSES 
                   FOR LIAISON OFFICERS OF CERTAIN FOREIGN 
                   NATIONS.

       (a) Authority.--Subsection (a) of section 1051a of title 
     10, United States Code, is amended--
       (1) by striking ``involved in a coalition'' and inserting 
     ``involved in a military operation''; and
       (2) by striking ``coalition operation'' and inserting 
     ``military operation''.
       (b) Medical Care and Temporary Duty Travel Expenses.--
     Subsection (b) of such section is amended--
       (1) in the heading, by striking ``and Subsistence'' 
     inserting ``, Subsistence, and Medical Care'';
       (2) in paragraph (2), by adding at the end the following:
       ``(C) Expenses for medical care at a civilian medical 
     facility if--
       ``(i) adequate medical care is not available to the liaison 
     officer at a local military medical treatment facility;
       ``(ii) the Secretary determines that payment of such 
     medical expenses is necessary and in the best interests of 
     the United States; and
       ``(iii) medical care is not otherwise available to the 
     liaison officer pursuant to any treaty or other international 
     agreement.''; and
       (3) by adding at the end the following:
       ``(3) The Secretary may pay the mission-related travel 
     expenses of a liaison officer described in subsection (a) if 
     such travel is in support of the national interests of the 
     United States and the commander of the headquarters to which 
     the liaison officer is temporarily assigned directs round-
     trip travel from the assigned headquarters to one or more 
     locations.''.
       (c) Definition.--Subsection (d) of such section is 
     amended--
       (1) by striking ``(d) Definitions.--'' and all that follows 
     through ``(1) The term'' and inserting ``(d) Definition.--In 
     this section, the term''; and
       (2) by striking paragraph (2).
       (d) Expiration of Authority.--Such section is further 
     amended by striking subsection (e).
       (e) Conforming and Clerical Amendments.--(1) The heading 
     for such section is amended to read as follows:

     ``Sec. 1051a. Liaison officers of certain foreign nations; 
       administrative services and support; travel, subsistence, 
       medical care, and other personal expenses''.

       (2) The table of sections at the beginning of chapter 53 of 
     title 10, United States Code, is amended by striking the item 
     relating to section 1051a and inserting the following:

``1051a. Liaison officers of certain foreign nations; administrative 
              services and support; travel, subsistence, medical care, 
              and other personal expenses.''.

     SEC. 1204. EXTENSION AND EXPANSION OF DEPARTMENT OF DEFENSE 
                   AUTHORITY TO PARTICIPATE IN MULTINATIONAL 
                   MILITARY CENTERS OF EXCELLENCE.

       (a) Extension of Authority.--Subsection (a) of section 1205 
     of the John Warner National Defense Authorization Act for 
     Fiscal Year 2007 (Public Law 109-364; 1202 Stat. 2416) is 
     amended by striking ``fiscal year 2007'' and inserting 
     ``fiscal years 2007 and 2008''.
       (b) Limitation on Amounts Available for Participation.--
     Subsection (e) of such section is amended by striking 
     paragraph (2) and inserting the following new paragraph:
       ``(2) Limitation on amount.--The amount available under 
     paragraph (1)(A) for the expenses referred to in that 
     paragraph may not exceed--
       ``(A) in fiscal year 2007, $3,000,000; and
       ``(B) in fiscal year 2008, $5,000,000.''.
       (c) Reports.--Subsection (g) of such section is amended--
       (1) in paragraph (1)--
       (A) by inserting ``and October 31, 2008,'' after ``October 
     31, 2007,''; and
       (B) by striking ``fiscal year 2007'' and inserting ``fiscal 
     years 2007 and 2008''; and
       (2) in paragraph (2)(A), by striking ``during fiscal year 
     2007'' and inserting ``during the preceding fiscal year''.

     SEC. 1205. REAUTHORIZATION OF COMMANDERS' EMERGENCY RESPONSE 
                   PROGRAM.

       (a) Authority.--Subsection (a) of section 1202 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3455-3456) is amended--
       (1) in the heading, by striking ``Fiscal Years 2006 and 
     2007'' and inserting ``Fiscal Years 2008 and 2009''; and
       (2) in the matter preceding paragraph (1)--
       (A) by striking ``fiscal years 2006 and 2007'' and 
     inserting ``fiscal years 2008 and 2009''; and
       (B) by striking ``$500,000,000'' and inserting 
     ``$977,441,000''.
       (b) Quarterly Reports.--Subsection (b) of such section is 
     amended by striking ``fiscal years 2006 and 2007'' and 
     inserting ``fiscal years 2008 and 2009''.

     SEC. 1206. AUTHORITY TO BUILD THE CAPACITY OF THE PAKISTAN 
                   FRONTIER CORPS.

       (a) Authority.--The Secretary of Defense, with the 
     concurrence of the Secretary of State, is authorized during 
     fiscal year 2008 to provide assistance to enhance the ability 
     of the Pakistan Frontier Corps to conduct counterterrorism 
     operations along the border between Pakistan and Afghanistan.
       (b) Types of Assistance.--
       (1) Authorized elements.--Assistance under subsection (a) 
     may include the provision of equipment, supplies, and 
     training.
       (2) Required elements.--Assistance under subsection (a) 
     shall be provided in a manner that promotes--
       (A) observance of and respect for human rights and 
     fundamental freedoms; and
       (B) respect for legitimate civilian authority within 
     Pakistan.
       (c) Limitations.--
       (1) Funding limitation.--The Secretary of Defense may use 
     up to $75,000,000 of funds available to the Department of 
     Defense for operation and maintenance for fiscal year 2008 to 
     provide the assistance under subsection (a).
       (2) Assistance otherwise prohibited by law.--The Secretary 
     of Defense may not use the

[[Page 32620]]

     authority in subsection (a) to provide any type of assistance 
     described in subsection (b) that is otherwise prohibited by 
     any provision of law.
       (d) Congressional Notification.--
       (1) In general.--Not less than 15 days before providing 
     assistance under subsection (a), the Secretary of Defense 
     shall submit to the congressional committees specified in 
     paragraph (2) a notice of the following:
       (A) The budget, types of assistance, and completion date 
     for providing the assistance under subsection (a).
       (B) The source and planned expenditure of funds for the 
     assistance under subsection (a).
       (2) Specified congressional committees.--The congressional 
     committees specified in this paragraph are the following:
       (A) The Committee on Armed Services, the Committee on 
     Foreign Relations, and the Committee on Appropriations of the 
     Senate.
       (B) The Committee on Armed Services, the Committee on 
     Foreign Affairs, and the Committee on Appropriations of the 
     House of Representatives.

     SEC. 1207. AUTHORITY TO EQUIP AND TRAIN FOREIGN PERSONNEL TO 
                   ASSIST IN ACCOUNTING FOR MISSING UNITED STATES 
                   GOVERNMENT PERSONNEL.

       (a) In General.--Chapter 20 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 408. Equipment and training of foreign personnel to 
       assist in Department of Defense accounting for missing 
       United States Government personnel

       ``(a) In General.--The Secretary of Defense may provide 
     assistance to any foreign nation to assist the Department of 
     Defense with recovery of and accounting for missing United 
     States Government personnel.
       ``(b) Types of Assistance.--The assistance provided under 
     subsection (a) may include the following:
       ``(1) Equipment.
       ``(2) Supplies.
       ``(3) Services.
       ``(4) Training of personnel.
       ``(c) Approval by Secretary of State.--Assistance may not 
     be provided under this section to any foreign nation unless 
     the Secretary of State specifically approves the provision of 
     such assistance.
       ``(d) Limitation.--The amount of assistance provided under 
     this section in any fiscal year may not exceed $1,000,000.
       ``(e) Construction With Other Assistance.--The authority to 
     provide assistance under this section is in addition to any 
     other authority to provide assistance to foreign nations 
     under law.
       ``(f) Annual Reports.--(1) Not later than December 31 each 
     year, the Secretary of Defense shall submit to the 
     congressional defense committees a report on the assistance 
     provided under this section during the fiscal year ending in 
     such year.
       ``(2) Each report under paragraph (1) shall include, for 
     the fiscal year covered by such report, the following:
       ``(A) A listing of each foreign nation provided assistance 
     under this section.
       ``(B) For each nation so provided assistance, a description 
     of the type and amount of such assistance.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 20 of such title is amended by adding at 
     the end the following new item:

``408. Equipment and training of foreign personnel to assist in 
              Department of Defense accounting for missing United 
              States Government personnel''.

     SEC. 1208. AUTHORITY TO PROVIDE AUTOMATIC IDENTIFICATION 
                   SYSTEM DATA ON MARITIME SHIPPING TO FOREIGN 
                   COUNTRIES AND INTERNATIONAL ORGANIZATIONS.

       (a) Authority to Provide Data.--The Secretary of Defense, 
     with the concurrence of the Secretary of State, may authorize 
     the Secretary of a military department or a commander of a 
     combatant command to exchange or furnish automatic 
     identification system data broadcast by merchant or private 
     ships and collected by the United States to a foreign country 
     or international organization pursuant to an agreement for 
     the exchange or production of such data. Such data may be 
     transferred pursuant to this section without cost to the 
     recipient country or international organization.
       (b) Definitions.--In this section:
       (1) Automatic identification system.--The term ``automatic 
     identification system'' means a system that is used to 
     satisfy the requirements of the Automatic Identification 
     System under the International Convention for the Safety of 
     Life at Sea, signed at London on November 1, 1974 (TIAS 
     9700).
       (2) Geographic combatant commander.--The term ``commander 
     of a combatant command'' means a commander of a combatant 
     command (as such term is defined in section 161(c) of title 
     10, United States Code) with a geographic area of 
     responsibility.

     SEC. 1209. REPORT ON FOREIGN-ASSISTANCE RELATED PROGRAMS 
                   CARRIED OUT BY THE DEPARTMENT OF DEFENSE.

       (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 appropriate congressional committees a 
     report that specifies, on a country-by-country basis, each 
     foreign-assistance related program carried out by the 
     Department of Defense during the prior fiscal year under the 
     authorities described in subsection (b).
       (b) Matters to Be Included.--The report required under 
     subsection (a) shall include--
       (1) a description of the dollar amount, type of support, 
     and purpose of each foreign-assistance related program 
     carried out by the Department of Defense under--
       (A) section 1206 of the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3456), 
     relating to authority to build the capacity of foreign 
     military forces;
       (B) section 1207 of the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3458), 
     relating to authority to provide security and stabilization 
     assistance to foreign countries;
       (C) section 1208 of the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3459), 
     relating to authority to reimburse certain coalition nations 
     for support provided to United States military operations;
       (D) section 1033 of the National Defense Authorization Act 
     for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1881), 
     relating to authority to provide additional support for 
     counter-drug activities of Peru and Colombia;
       (E) section 1004 of the National Defense Authorization Act 
     for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 374 
     note), relating to additional support for counter-drug 
     activities;
       (F) section 127d of title 10, United States Code, relating 
     to authority to provide logistic support, supplies, and 
     services to allied forces participating in a combined 
     operation with the Armed Forces;
       (G) section 2249c of title 10, United States Code, relating 
     to authority to use appropriated funds for costs associated 
     with education and training of foreign officials under the 
     Regional Defense Combating Terrorism Fellowship Program; and
       (H) section 2561 of title 10, United States Code, relating 
     to authority to provide humanitarian assistance; and
       (2) a description of each foreign-assistance related 
     program that the Department of Defense undertakes or 
     implements on behalf of any other department or agency of the 
     United States Government, including programs under the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) and 
     the Arms Export Control Act (22 U.S.C. 2751 et seq.).
       (c) Form.--The report required under subsection (a) shall 
     be submitted in unclassified form, but may contain a 
     classified annex.
       (d) Appropriate Congressional Committees Defined.--In this 
     section, the term ``appropriate congressional committees'' 
     means--
       (1) the Committee on Appropriations, the Committee on Armed 
     Services, and the Committee on Foreign Affairs of the House 
     of Representatives; and
       (2) the Committee on Appropriations, the Committee on Armed 
     Services, and the Committee on Foreign Relations of the 
     Senate.

     SEC. 1210. EXTENSION AND ENHANCEMENT OF AUTHORITY FOR 
                   SECURITY AND STABILIZATION ASSISTANCE.

       (a) Program for Assistance.--Section 1207 of the National 
     Defense Authorization Act for Fiscal Year 2006 (Public Law 
     109-163; 119 Stat. 3458) is amended--
       (1) by redesignating subsections (d), (e), and (f) as 
     subsections (e), (f), and (g), respectively; and
       (2) by inserting after subsection (c) the following:
       ``(d) Formulation and Implementation of Program for 
     Assistance.--The Secretary of State shall coordinate with the 
     Secretary of Defense in the formulation and implementation of 
     a program of reconstruction, security, or stabilization 
     assistance to a foreign country that involves the provision 
     of services or transfer of defense articles or funds under 
     subsection (a).''.
       (b) One-Year Extension.--Subsection (g) of such section, as 
     redesignated by subsection (a) of this section, is amended by 
     striking ``September 30, 2007'' and inserting ``September 30, 
     2008''.

     SEC. 1211. GOVERNMENT ACCOUNTABILITY OFFICE REPORT ON GLOBAL 
                   PEACE OPERATIONS INITIATIVE.

       (a) Report Required.--Not later than June 1, 2008, the 
     Comptroller General of the United States shall submit to the 
     congressional defense committees, the Committee on Foreign 
     Relations of the Senate, and the Committee on Foreign Affairs 
     of the House of Representatives a report assessing the Global 
     Peace Operations Initiative.
       (b) Content.--The report required under subsection (a) 
     shall include the following:
       (1) An assessment of whether, and to what extent, the 
     Global Peace Operations Initiative has met the goals set by 
     the President at the inception of the program in 2004.
       (2) Which goals, if any, remain unfulfilled.
       (3) A description of activities conducted by each member 
     state of the Group of Eight (G-8), including the approximate 
     cost of the activities, and the approximate percentage of the 
     total monetary value of the activities conducted by each G-8 
     member, including the United States, as well as efforts by 
     the President to seek contributions or participation by other 
     G-8 members.
       (4) A description of any activities conducted by non-G-8 
     members, or other organizations and institutions, as well as 
     any efforts by the President to solicit contributions or 
     participation.
       (5) A description of the extent to which the Global Peace 
     Operations Initiative has had global participation.
       (6) A description of the administration of the program by 
     the Department of State and Department of Defense, 
     including--

[[Page 32621]]

       (A) whether each Department should concentrate 
     administration in one office or bureau, and if so, which one;
       (B) the extent to which the two Departments coordinate and 
     the quality of their coordination; and
       (C) the extent to which contractors are used and an 
     assessment of the quality and timeliness of the results 
     achieved by the contractors, and whether the United States 
     Government might have achieved similar or better results 
     without contracting out functions.
       (7) A description of the metrics, if any, that are used by 
     the President and the G-8 to measure progress in 
     implementation of the Global Peace Operations Initiative, 
     including--
       (A) assessments of the quality and sustainability of the 
     training of individual soldiers and units;
       (B) the extent to which the G-8 and participating countries 
     maintain records or databases of trained individuals and 
     units and conduct inspections to measure and monitor the 
     continued readiness of such individuals and units;
       (C) the extent to which the individuals and units are 
     equipped and remain equipped to deploy in peace operations; 
     and
       (D) the extent to which, the timeline by which, and how 
     individuals and units can be mobilized for peace operations.
       (8) The extent to which, the timeline by which, and how 
     individuals and units can be and are being deployed to peace 
     operations.
       (9) An assessment of whether individuals and units trained 
     under the Global Peace Operations Initiative have been 
     utilized in peace operations subsequent to receiving training 
     under the Initiative, whether they will be deployed to 
     upcoming operations in Africa and elsewhere, and the extent 
     to which such individuals and units would be prepared to 
     deploy and participate in such peace operations.
       (10) Recommendations as to whether participation in the 
     Global Peace Operations Initiative should require reciprocal 
     participation by countries in peace operations.
       (11) Any additional measures that could be taken to enhance 
     the effectiveness of the Global Peace Operations Initiative 
     in terms of--
       (A) achieving its stated goals; and
       (B) ensuring that individuals and units trained as part of 
     the Initiative are regularly participating in peace 
     operations.
       (c) Form.--To the maximum extent practicable, the report 
     required under subsection (a) shall be submitted in 
     unclassified form, but may include a classified annex, if 
     necessary.

     SEC. 1212. REPEAL OF LIMITATIONS ON MILITARY ASSISTANCE UNDER 
                   THE AMERICAN SERVICEMEMBERS' PROTECTION ACT OF 
                   2002.

       (a) Repeal of Limitations.--Section 2007 of the American 
     Servicemembers' Protection Act of 2002 (22 U.S.C. 7426) is 
     repealed.
       (b) Conforming Amendments.--Such Act is further amended--
       (1) in section 2003 (22 U.S.C. 7422)--
       (A) in subsection (a)--
       (i) in the heading, by striking ``SECTIONS 5 AND 7'' and 
     inserting ``SECTION 2005''; and
       (ii) by striking ``sections 2005 and 2007'' and inserting 
     ``section 2005'';
       (B) in subsection (b)--
       (i) in the heading, by striking ``SECTIONS 5 AND 7'' and 
     inserting ``SECTION 2005''; and
       (ii) by striking ``sections 2005 and 2007'' and inserting 
     ``section 2005'';
       (C) in subsection (c)(2)(A), by striking ``sections 2005 
     and 2007'' and inserting ``section 2005'';
       (D) in subsection (d), by striking ``sections 2005 and 
     2007'' and inserting ``section 2005''; and
       (E) in subsection (e), by striking ``2006, and 2007'' and 
     inserting ``and 2006''; and
       (2) in section 2013 (22 U.S.C. 7432), by striking paragraph 
     (13).
          Subtitle B--Matters Relating to Iraq and Afghanistan

     SEC. 1221. MODIFICATION OF AUTHORITIES RELATING TO THE OFFICE 
                   OF THE SPECIAL INSPECTOR GENERAL FOR IRAQ 
                   RECONSTRUCTION.

       (a) Purposes.--Subsection (a)(1) of section 3001 of the 
     Emergency Supplemental Appropriations Act for Defense and for 
     the Reconstruction of Iraq and Afghanistan, 2004 (Public Law 
     108-106; 117 Stat. 1234-1238; 5 U.S.C. App., note to section 
     8G of Public Law 95-452) is amended by striking ``to the Iraq 
     Relief and Reconstruction Fund'' and inserting ``for the 
     reconstruction of Iraq''.
       (b) Assistant Inspectors General.--Subsection (d)(1) of 
     such section is amended by striking ``the Iraq Relief and 
     Reconstruction Fund'' and inserting ``amounts appropriated or 
     otherwise made available for the reconstruction of Iraq''.
       (c) Supervision.--Subsection (e)(2) of such section is 
     amended by striking ``the Iraq Relief and Reconstruction 
     Fund'' and inserting ``amounts appropriated or otherwise made 
     available for the reconstruction of Iraq''.
       (d) Duties.--Subsection (f)(1) of such section is amended 
     by striking ``to the Iraq Relief and Reconstruction Fund'' 
     and inserting ``for the reconstruction of Iraq''.
       (e) Personnel, Facilities, and Other Resources.--Subsection 
     (h) of such section is amended--
       (1) in paragraph (1), by inserting after ``pay rates'' the 
     following: ``, and may exercise the authorities of 
     subsections (b) through (i) of section 3161 of title 5, 
     United States Code (without regard to subsection (a) of such 
     section)''; and
       (2) in paragraph (3), by striking ``my enter'' and 
     inserting ``may enter''.
       (f) Reports.--Subsection (i) of such section is amended by 
     striking ``to the Iraq Relief and Reconstruction Fund'' each 
     place it appears and inserting ``for the reconstruction of 
     Iraq''.
       (g) Definitions.--Subsection (m) of such section is 
     amended--
       (1) in the heading, by striking ``Appropriate Committees of 
     Congress Defined'' and inserting ``Definitions'';
       (2) by striking ``In this section, the term'' and inserting 
     the following: ``In this section--
       ``(1) the term'';
       (3) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (4) in paragraph (1)(B) (as redesignated by paragraph (3) 
     of this subsection), by striking ``and International 
     Relations'' and inserting ``Foreign Affairs, and Oversight 
     and Government Reform'';
       (5) by striking the period at the end and inserting ``; 
     and''; and
       (6) by adding at the end the following:
       ``(2) the term `amounts appropriated or otherwise made 
     available for the reconstruction of Iraq' means amounts 
     appropriated or otherwise made available for any fiscal 
     year--
       ``(A) to the Iraq Relief and Reconstruction Fund, the Iraq 
     Security Forces Fund, and the Commanders' Emergency Response 
     Program authorized under section 1202 of the National Defense 
     Authorization for Fiscal Year 2006 (Public Law 109-163; 119 
     Stat. 3455-3456); or
       ``(B) for assistance for the reconstruction of Iraq under--
       ``(i) the Economic Support Fund authorized under chapter 4 
     of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2346 et seq.);
       ``(ii) the International Narcotics Control and Law 
     Enforcement account authorized under section 481 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2291); or
       ``(iii) any other provision of law.''.
       (h) Termination Date.--Subsection (o) of such section is 
     amended--
       (1) in paragraph (1), to read as follows:
       ``(1) The Office of the Inspector General shall terminate 
     180 days after the date on which amounts appropriated or 
     otherwise made available for the reconstruction of Iraq that 
     are unexpended are less than $250,000,000.''; and
       (2) in paragraph (2)--
       (A) by striking ``funds deemed to be''; and
       (B) by striking ``to the Iraq Relief and Reconstruction 
     Fund'' and inserting ``for the reconstruction of Iraq''.

     SEC. 1222. 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 control of the oil resources 
     of Iraq.

     SEC. 1223. REPORT ON UNITED STATES POLICY AND MILITARY 
                   OPERATIONS IN IRAQ.

       (a) Report.--
       (1) In general.--Subsection (c) of section 1227 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3465; 50 U.S.C. 1541 note) is 
     amended--
       (A) in paragraph (2), by striking ``Iraq.'' and inserting 
     the following: ``Iraq, including--
       ``(A) enacting a broadly-accepted hydrocarbon law that 
     equitably shares revenue among all Iraqis;
       ``(B) adopting laws necessary for the conduct of provincial 
     and local elections, taking steps to implement such laws, and 
     setting a schedule to conduct provincial and local elections;
       ``(C) reforming current laws governing the de-
     Baathification process in a manner that encourages national 
     reconciliation;
       ``(D) amending the Constitution of Iraq in a manner that 
     encourages national reconciliation;
       ``(E) allocating and beginning expenditure of $10 billion 
     in Iraqi revenues for reconstruction projects, including 
     delivery of essential services, and implementing such 
     reconstruction projects on an equitable basis; and
       ``(F) making significant efforts to plan and implement 
     disarmament, demobilization, and reintegration programs 
     relating to Iraqi militias.'';
       (B) by striking paragraph (3) and inserting the following:
       ``(3) A detailed description of the Joint Campaign Plan, or 
     any subsequent revisions, updates, or documents that replace 
     or supersede the Joint Campaign Plan, including goals, 
     phases, or other milestones contained in the Joint Campaign 
     Plan. Specifically, the description shall include the 
     following:
       ``(A) An explanation of conditions required to move though 
     phases of the Joint Campaign Plan, in particular those 
     conditions that must be met in order to provide for the 
     transition of additional security responsibility to the Iraqi 
     Security Forces, and the measurements used to determine 
     progress.
       ``(B) An assessment of which conditions in the Joint 
     Campaign Plan have been achieved and which conditions have 
     not been achieved. The assessment of those conditions that 
     have not been achieved shall include a discussion of the 
     factors that have precluded progress.
       ``(C) A description of any companion or equivalent plan of 
     the Government of Iraq used to measure progress for Iraqi 
     Security Forces undertaking joint operations with Coalition 
     Forces.''; and
       (C) by adding at the end the following:
       ``(7) An assessment of the levels of United States Armed 
     Forces required in Iraq for the six-

[[Page 32622]]

     month period following the date of the report, the missions 
     to be undertaken by the Armed Forces in Iraq for such period, 
     and the incremental costs or savings of any proposed changes 
     to such levels or missions.
       ``(8) A description of the range of conditions that could 
     prompt changes to the levels of United States Armed Forces 
     required in Iraq for the six-month period following the date 
     of the report or the missions to be undertaken by the Armed 
     Forces in Iraq for such period, including the status of 
     planning for such changes to the levels or missions of the 
     Armed Forces in Iraq.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall apply with respect to each report required to be 
     submitted to Congress under section 1227(c) of the National 
     Defense Authorization Act for Fiscal Year 2006 on or after 
     the date of the enactment of this Act.
       (b) Congressional Briefings Required.--Such section is 
     further amended by adding at the end the following:
       ``(d) Congressional Briefings Required.--Not later than 30 
     days after the submission of the first report under 
     subsection (c) on or after the date of the enactment of the 
     National Defense Authorization Act for Fiscal Year 2008, the 
     Secretary of Defense and the Chairman of the Joint Chiefs of 
     Staff shall meet with the congressional defense committees to 
     brief such committees on the matters described in paragraphs 
     (7) and (8) of subsection (c) contained in the report. Not 
     later than 30 days after the submission of each subsequent 
     report under subsection (c), appropriate senior officials of 
     the Department of Defense shall meet with the congressional 
     defense committees to brief such committees on the matters 
     described in paragraphs (7) and (8) of subsection (c) 
     contained in the report.''.

     SEC. 1224. REPORT ON A COMPREHENSIVE SET OF PERFORMANCE 
                   INDICATORS AND MEASURES FOR PROGRESS TOWARD 
                   MILITARY AND POLITICAL STABILITY IN IRAQ.

       (a) Report.--Section 9010(c) of the Department of Defense 
     Appropriations Act, 2007 (division A of Public Law 109-289; 
     120 Stat. 1307) is amended--
       (1) in paragraph (1)(B)--
       (A) by striking ``and trends'' and inserting ``trends''; 
     and
       (B) by adding at the end before the period the following: 
     ``, and progress made in the transition of responsibility for 
     the security of Iraqi provinces to the Iraqi Security Forces 
     under the Provincial Iraqi Control (PIC) process''; and
       (2) in paragraph (2)--
       (A) in subparagraph (C)(i), by adding at the end before the 
     semicolon the following: ``, without any support from 
     Coalition Forces'';
       (B) by redesignating subparagraphs (D) through (J) as 
     subparagraphs (F) through (L), respectively;
       (C) by inserting after subparagraph (C) the following:
       ``(D) The amount and type of support provided by Coalition 
     Forces to the Iraqi Security Forces at each level of 
     operational readiness.
       ``(E) The number of Iraqi battalions in the Iraqi Army 
     currently conducting operations and the type of operations 
     being conducted.'';
       (D) by redesignating subparagraphs (H) through (L) (as 
     redesignated by subparagraph (B) of this paragraph) as 
     subparagraphs (I) through (M), respectively;
       (E) by inserting after subparagraph (G) (as redesignated by 
     subparagraph (B) of this paragraph) the following:
       ``(H) The level and effectiveness of the Iraqi Security 
     Forces under the Ministry of Defense in provinces where the 
     United States has formally transferred responsibility for the 
     security of the province to the Iraqi Security Forces under 
     the Provincial Iraqi Control (PIC) process.''; and
       (F) in subparagraph (I) (as redesignated by subparagraphs 
     (B) and (D) of this paragraph)--
       (i) in clause (iv), by striking ``and'' at the end;
       (ii) in clause (v), by striking the period at the end and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(vi) the level and effectiveness of the Iraqi Police and 
     other Ministry of Interior Forces in provinces where the 
     United States has formally transferred responsibility for the 
     security of the province to the Iraqi Security Forces under 
     the Provincial Iraqi Control (PIC) process.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply with respect to each report required to be 
     submitted to Congress under section 9010 of the Department of 
     Defense Appropriations Act, 2007 on or after the date of the 
     enactment of this Act.

     SEC. 1225. REPORT ON SUPPORT FROM IRAN FOR ATTACKS AGAINST 
                   COALITION FORCES IN IRAQ.

       (a) Report Required.--Not later than 60 days after the date 
     of the enactment of this Act, and every 180 days thereafter, 
     the Secretary of Defense, in coordination with the Director 
     of National Intelligence, shall submit to the congressional 
     defense committees a report describing and assessing in 
     detail--
       (1) any support or direction provided to anti-coalition 
     forces in Iraq by the Government of Iran or its agents;
       (2) the strategy and ambitions in Iraq of the Government of 
     Iran; and
       (3) any strategy or efforts by the United States Government 
     to counter the activities of agents of the Government of Iran 
     in Iraq.
       (b) Form.--Each report required under subsection (a) shall 
     be submitted in unclassified form, to the maximum extent 
     practicable, but may contain a classified annex, if 
     necessary.
       (c) Termination.--The requirement to submit reports under 
     subsection (a) shall terminate on the date on which the 
     Secretary of Defense, in coordination with the Director of 
     National Intelligence, submits to the congressional defense 
     committees a certification in writing that the Government of 
     Iran has ceased to provide military support to anti-coalition 
     forces that conduct attacks against coalition forces in Iraq.
       (d) Rule of Construction.--Nothing in this section shall be 
     construed to authorize or otherwise speak to the use of the 
     Armed Forces against Iran.

     SEC. 1226. SENSE OF CONGRESS ON THE CONSEQUENCES OF A FAILED 
                   STATE IN IRAQ.

        It is the sense of Congress that--
       (1) a failed state in Iraq will have a negative impact on 
     the Middle East and United States interests in the region; 
     and
       (2) the United States should pursue strategies to prevent a 
     failed state in Iraq or to contain the negative effects of a 
     failed state in Iraq.

     SEC. 1227. SENSE OF CONGRESS ON FEDERALISM IN IRAQ.

       It is the sense of Congress that--
       (1) policies supported by the United States in the pursuit 
     of a political settlement in Iraq should be consistent with 
     the wishes of the Iraqi people and should not violate the 
     sovereignty of the nation of Iraq;
       (2) if the Iraqi people support a political settlement in 
     Iraq based on the final provisions of the Constitution of 
     Iraq that create a federal system of government and allow for 
     the creation of federal regions, consistent with the wishes 
     of the Iraqi people and their elected leaders, the United 
     States should actively support such a political settlement in 
     Iraq;
       (3) the active support referred to in paragraph (2) should 
     include--
       (A) calling on the international community, including 
     countries with troops in Iraq, the permanent 5 members of the 
     United Nations Security Council, members of the Gulf 
     Cooperation Council, and Iraq's neighbors--
       (i) to support an Iraqi political settlement based on 
     federalism;
       (ii) to acknowledge the sovereignty and territorial 
     integrity of Iraq; and
       (iii) to fulfill commitments for the urgent delivery of 
     significant assistance and debt relief to Iraq, especially 
     those made by the member states of the Gulf Cooperation 
     Council; and
       (B) convening a conference for Iraqis to reach an agreement 
     on a comprehensive political settlement based on the 
     federalism law approved by the Iraqi Parliament on October 
     11, 2006;
       (4) the United States should urge the Government of Iraq to 
     quickly agree upon and implement a law providing for the 
     equitable distribution of oil revenues, which is a critical 
     component of a comprehensive political settlement in Iraq, 
     including a potential settlement based upon federalism;
       (5) the steps described in paragraphs (2), (3), and (4) 
     could lead to an Iraq that is stable, not a haven for 
     terrorists, and not a threat to its neighbors;
       (6) in pursuit of a political settlement in Iraq, whether 
     based on federalism or not, the United States should call on 
     Iraq's neighbors to pledge not to militarily intervene in or 
     destabilize Iraq; and
       (7) nothing in this Act should be construed in any way to 
     infringe on the sovereign rights of the nation of Iraq or to 
     imply that the United States wishes to impose a political 
     settlement in Iraq based on federalism if such a political 
     settlement is contrary to the wishes of the Iraqi people.

     SEC. 1228. TRACKING AND MONITORING OF DEFENSE ARTICLES 
                   PROVIDED TO THE GOVERNMENT OF IRAQ AND OTHER 
                   INDIVIDUALS AND GROUPS IN IRAQ.

       (a) Export and Transfer Control Policy.--The President 
     shall implement a policy to control the export and transfer 
     of defense articles into Iraq, including implementation of 
     the registration and monitoring system under subsection (c).
       (b) Requirement to Implement Control System.--No defense 
     articles may be provided to the Government of Iraq or any 
     other group, organization, citizen, or resident of Iraq until 
     the President certifies to the specified congressional 
     committees that a registration and monitoring system meeting 
     the requirements set forth in subsection (c) has been 
     established.
       (c) Registration and Monitoring System.--The registration 
     and monitoring system required under this subsection shall 
     include--
       (1) the registration of the serial numbers of all small 
     arms to be provided to the Government of Iraq or to other 
     groups, organizations, citizens, or residents of Iraq;
       (2) a program of end-use monitoring of all lethal defense 
     articles provided to such entities or individuals; and
       (3) a detailed record of the origin, shipping, and 
     distribution of all defense articles transferred under the 
     Iraq Security Forces Fund or any other security assistance 
     program to such entities or individuals.
       (d) Review; Exemption.--
       (1) Review.--The President shall periodically review the 
     items subject to the registration and monitoring requirements 
     under subsection (c) to determine what items, if any, should 
     no longer be subject to such registration and monitoring 
     requirements. The President shall transmit to the specified 
     congressional committees the results of each review conducted 
     under this paragraph.
       (2) Exemption.--The President may exempt an item from the 
     registration and monitoring requirements under subsection (c) 
     beginning on the date that is 30 days after the date on which

[[Page 32623]]

     the President provides notice of the proposed exemption to 
     the specified congressional committees in accordance with the 
     procedures applicable to reprogramming notifications under 
     section 634A(a) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2394-1(a)). Such notice shall describe any controls to 
     be imposed on such item under any other provision of law.
       (e) Definitions.--In this section:
       (1) Defense article.--The term ``defense article'' has the 
     meaning given the term in section 644(d) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2403(d)).
       (2) Small arms.--The term ``small arms'' means--
       (A) handguns;
       (B) shoulder-fired weapons;
       (C) light automatic weapons up to and including .50 caliber 
     machine guns;
       (D) recoilless rifles up to and including 106mm;
       (E) mortars up to and including 81mm;
       (F) rocket launchers, man-portable;
       (G) grenade launchers, rifle and shoulder fired; and
       (H) individually-operated weapons which are portable or can 
     be fired without special mounts or firing devices and which 
     have potential use in civil disturbances and are vulnerable 
     to theft.
       (3) Specified congressional committees.--The term 
     ``specified congressional committees'' means--
       (A) the Committee on Foreign Affairs and the Committee on 
     Armed Services of the House of Representatives; and
       (B) the Committee on Foreign Relations, the Committee on 
     Armed Services, and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate.
       (f) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), this 
     section shall take effect 180 days after the date of the 
     enactment of this Act.
       (2) Exception.--The President may delay the effective date 
     of this section by an additional period of up to 90 days if 
     the President certifies in writing to the specified 
     congressional committees for such additional period that it 
     is in the vital interest of the United States to do so and 
     includes in the certification a description of such vital 
     interest.

     SEC. 1229. SPECIAL INSPECTOR GENERAL FOR AFGHANISTAN 
                   RECONSTRUCTION.

       (a) Purposes.--The purposes of this section are as follows:
       (1) To provide for the independent and objective conduct 
     and supervision of audits and investigations relating to the 
     programs and operations funded with amounts appropriated or 
     otherwise made available for the reconstruction of 
     Afghanistan.
       (2) To provide for the independent and objective leadership 
     and coordination of, and recommendations on, policies 
     designed to--
       (A) promote economy efficiency, and effectiveness in the 
     administration of the programs and operations described in 
     paragraph (1); and
       (B) prevent and detect waste, fraud, and abuse in such 
     programs and operations.
       (3) To provide for an independent and objective means of 
     keeping the Secretary of State and the Secretary of Defense 
     fully and currently informed about problems and deficiencies 
     relating to the administration of such programs and 
     operations and the necessity for and progress on corrective 
     action.
       (b) Office of Inspector General.--There is hereby 
     established the Office of the Special Inspector General for 
     Afghanistan Reconstruction to carry out the purposes of 
     subsection (a).
       (c) Appointment of Inspector General; Removal.--
       (1) Appointment.--The head of the Office of the Special 
     Inspector General for Afghanistan Reconstruction is the 
     Special Inspector General for Afghanistan Reconstruction (in 
     this section referred to as the ``Inspector General''), who 
     shall be appointed by the President. The President may 
     appoint the Special Inspector General for Iraq Reconstruction 
     to serve as the Special Inspector General for Afghanistan 
     Reconstruction, in which case the Special Inspector General 
     for Iraq Reconstruction shall have all of the duties, 
     responsibilities, and authorities set forth under this 
     section with respect to such appointed position for the 
     purpose of carrying out this section.
       (2) Qualifications.--The appointment of the Inspector 
     General shall be made solely on the basis of integrity and 
     demonstrated ability in accounting, auditing, financial 
     analysis, law, management analysis, public administration, or 
     investigations.
       (3) Deadline for appointment.--The appointment of an 
     individual as Inspector General shall be made not later than 
     30 days after the date of the enactment of this Act.
       (4) Compensation.--The annual rate of basic pay of the 
     Inspector General shall be the annual rate of basic pay 
     provided for positions at level IV of the Executive Schedule 
     under section 5315 of title 5, United States Code.
       (5) Prohibition on political activities.--For purposes of 
     section 7324 of title 5, United States Code, the Inspector 
     General shall not be considered an employee who determines 
     policies to be pursued by the United States in the nationwide 
     administration of Federal law.
       (6) Removal.--The Inspector General shall be removable from 
     office in accordance with the provisions of section 3(b) of 
     the Inspector General Act of 1978 (5 U.S.C. App.).
       (d) Assistant Inspectors General.--The Inspector General 
     shall, in accordance with applicable laws and regulations 
     governing the civil service--
       (1) appoint an Assistant Inspector General for Auditing who 
     shall have the responsibility for supervising the performance 
     of auditing activities relating to programs and operations 
     supported by amounts appropriated or otherwise made available 
     for the reconstruction of Afghanistan; and
       (2) appoint an Assistant Inspector General for 
     Investigations who shall have the responsibility for 
     supervising the performance of investigative activities 
     relating to such programs and operations.
       (e) Supervision.--
       (1) In general.--Except as provided in paragraph (2), the 
     Inspector General shall report directly to, and be under the 
     general supervision of, the Secretary of State and the 
     Secretary of Defense.
       (2) Independence to conduct investigations and audits.--No 
     officer of the Department of Defense, the Department of 
     State, or the United States Agency for International 
     Development shall prevent or prohibit the Inspector General 
     from initiating, carrying out, or completing any audit or 
     investigation related to amounts appropriated or otherwise 
     made available for the reconstruction of Afghanistan or from 
     issuing any subpoena during the course of any such audit or 
     investigation.
       (f) Duties.--
       (1) Oversight of afghanistan reconstruction.--It shall be 
     the duty of the Inspector General to conduct, supervise, and 
     coordinate audits and investigations of the treatment, 
     handling, and expenditure of amounts appropriated or 
     otherwise made available for the reconstruction of 
     Afghanistan, and of the programs, operations, and contracts 
     carried out utilizing such funds, including--
       (A) the oversight and accounting of the obligation and 
     expenditure of such funds;
       (B) the monitoring and review of reconstruction activities 
     funded by such funds;
       (C) the monitoring and review of contracts funded by such 
     funds;
       (D) the monitoring and review of the transfer of such funds 
     and associated information between and among departments, 
     agencies, and entities of the United States and private and 
     nongovernmental entities;
       (E) the maintenance of records on the use of such funds to 
     facilitate future audits and investigations of the use of 
     such fund;
       (F) the monitoring and review of the effectiveness of 
     United States coordination with the Government of Afghanistan 
     and other donor countries in the implementation of the 
     Afghanistan Compact and the Afghanistan National Development 
     Strategy; and
       (G) the investigation of overpayments such as duplicate 
     payments or duplicate billing and any potential unethical or 
     illegal actions of Federal employees, contractors, or 
     affiliated entities and the referral of such reports, as 
     necessary, to the Department of Justice to ensure further 
     investigations, prosecutions, recovery of further funds, or 
     other remedies.
       (2) Other duties related to oversight.--The Inspector 
     General shall establish, maintain, and oversee such systems, 
     procedures, and controls as the Inspector General considers 
     appropriate to discharge the duties under paragraph (1).
       (3) Duties and responsibilities under inspector general act 
     of 1978.--In addition to the duties specified in paragraphs 
     (1) and (2), the Inspector General shall also have the duties 
     and responsibilities of inspectors general under the 
     Inspector General Act of 1978.
       (4) Coordination of efforts.--In carrying out the duties, 
     responsibilities, and authorities of the Inspector General 
     under this section, the Inspector General shall coordinate 
     with, and receive the cooperation of each of the following:
       (A) The Inspector General of the Department of Defense.
       (B) The Inspector General of the Department of State.
       (C) The Inspector General of the United States Agency for 
     International Development.
       (g) Powers and Authorities.--
       (1) Authorities under inspector general act of 1978.--In 
     carrying out the duties specified in subsection (f), the 
     Inspector General shall have the authorities provided in 
     section 6 of the Inspector General Act of 1978, including the 
     authorities under subsection (e) of such section.
       (2) Audit standards.--The Inspector General shall carry out 
     the duties specified in subsection (f)(1) in accordance with 
     section 4(b)(1) of the Inspector General Act of 1978.
       (h) Personnel, Facilities, and Other Resources.--
       (1) Personnel.--The Inspector General may select, appoint, 
     and employ such officers and employees as may be necessary 
     for carrying out the duties of the Inspector General, subject 
     to the provisions of title 5, United States Code, governing 
     appointments in the competitive service, and the provisions 
     of chapter 51 and subchapter III of chapter 53 of such title, 
     relating to classification and General Schedule pay rates.
       (2) Employment of experts and consultants.--The Inspector 
     General may obtain services as authorized by section 3109 of 
     title 5, United States Code, at daily rates not to exceed the 
     equivalent rate prescribed for grade GS-15 of the General 
     Schedule by section 5332 of such title.
       (3) Contracting authority.--To the extent and in such 
     amounts as may be provided in advance by appropriations Acts, 
     the Inspector General may enter into contracts and other 
     arrangements for audits, studies, analyses, and other 
     services with public agencies and with private persons, and 
     make such payments as may

[[Page 32624]]

     be necessary to carry out the duties of the Inspector 
     General.
       (4) Resources.--The Secretary of State or the Secretary of 
     Defense, as appropriate, shall provide the Inspector General 
     with appropriate and adequate office space at appropriate 
     locations of the Department of State or the Department of 
     Defense, as the case may be, in Afghanistan, together with 
     such equipment, office supplies, and communications 
     facilities and services as may be necessary for the operation 
     of such offices, and shall provide necessary maintenance 
     services for such offices and the equipment and facilities 
     located therein.
       (5) Assistance from federal agencies.--
       (A) In general.--Upon request of the Inspector General for 
     information or assistance from any department, agency, or 
     other entity of the Federal Government, the head of such 
     entity shall, insofar as is practicable and not in 
     contravention of any existing law, furnish such information 
     or assistance to the Inspector General, or an authorized 
     designee.
       (B) Reporting of refused assistance.--Whenever information 
     or assistance requested by the Inspector General is, in the 
     judgment of the Inspector General, unreasonably refused or 
     not provided, the Inspector General shall report the 
     circumstances to the Secretary of State or the Secretary of 
     Defense, as appropriate, and to the appropriate congressional 
     committees without delay.
       (6) Use of personnel, facilities, and other resources of 
     the office of the special inspector general for iraq 
     reconstruction.--Upon the request of the Inspector General, 
     the Special Inspector General for Iraq Reconstruction--
       (A) may detail, on a reimbursable basis, any of the 
     personnel of the Office of the Special Inspector General for 
     Iraq Reconstruction to the Office of the Inspector General 
     for Afghanistan Reconstruction for the purpose of carrying 
     out this section; and
       (B) may provide, on a reimbursable basis, any of the 
     facilities or other resources of the Office of the Special 
     Inspector General for Iraq Reconstruction to the Office of 
     the Inspector General for Afghanistan Reconstruction for the 
     purpose of carrying out this section.
       (i) Reports.--
       (1) Quarterly reports.--Not later than 30 days after the 
     end of each fiscal-year quarter, the Inspector General shall 
     submit to the appropriate congressional committees a report 
     summarizing, for the period of that quarter and, to the 
     extent possible, the period from the end of such quarter to 
     the time of the submission of the report, the activities 
     during such period of the Inspector General and the 
     activities under programs and operations funded with amounts 
     appropriated or otherwise made available for the 
     reconstruction of Afghanistan. Each report shall include, for 
     the period covered by such report, a detailed statement of 
     all obligations, expenditures, and revenues associated with 
     reconstruction and rehabilitation activities in Afghanistan, 
     including the following:
       (A) Obligations and expenditures of appropriated funds.
       (B) A project-by-project and program-by-program accounting 
     of the costs incurred to date for the reconstruction of 
     Afghanistan, together with the estimate of the Department of 
     Defense, the Department of State, and the United State Agency 
     for International Development, as applicable, of the costs to 
     complete each project and each program.
       (C) Revenues attributable to or consisting of funds 
     provided by foreign nations or international organizations to 
     programs and projects funded by any department or agency of 
     the United States Government, and any obligations or 
     expenditures of such revenues.
       (D) Revenues attributable to or consisting of foreign 
     assets seized or frozen that contribute to programs and 
     projects funded by any department or agency of the United 
     States Government, and any obligations or expenditures of 
     such revenues.
       (E) Operating expenses of agencies or entities receiving 
     amounts appropriated or otherwise made available for the 
     reconstruction of Afghanistan.
       (F) In the case of any contract, grant, agreement, or other 
     funding mechanism described in paragraph (2)--
       (i) the amount of the contract, grant, agreement, or other 
     funding mechanism;
       (ii) a brief discussion of the scope of the contract, 
     grant, agreement, or other funding mechanism;
       (iii) a discussion of how the department or agency of the 
     United States Government involved in the contract, grant, 
     agreement, or other funding mechanism identified, and 
     solicited offers from, potential individuals or entities to 
     perform the contract, grant, agreement, or other funding 
     mechanism, together with a list of the potential individuals 
     or entities that were issued solicitations for the offers; 
     and
       (iv) the justification and approval documents on which was 
     based the determination to use procedures other than 
     procedures that provide for full and open competition.
       (2) Covered contracts, grants, agreements, and funding 
     mechanisms.--A contract, grant, agreement, or other funding 
     mechanism described in this paragraph is any major contract, 
     grant, agreement, or other funding mechanism that is entered 
     into by any department or agency of the United States 
     Government that involves the use of amounts appropriated or 
     otherwise made available for the reconstruction of 
     Afghanistan with any public or private sector entity for any 
     of the following purposes:
       (A) To build or rebuild physical infrastructure of 
     Afghanistan.
       (B) To establish or reestablish a political or societal 
     institution of Afghanistan.
       (C) To provide products or services to the people of 
     Afghanistan.
       (3) Public availability.--The Inspector General shall 
     publish on a publically-available Internet website each 
     report under paragraph (1) of this subsection in English and 
     other languages that the Inspector General determines are 
     widely used and understood in Afghanistan.
       (4) Form.--Each report required under this subsection shall 
     be submitted in unclassified form, but may include a 
     classified annex if the Inspector General considers it 
     necessary.
       (5) Rule of construction.--Nothing in this subsection shall 
     be construed to authorize the public disclosure of 
     information that is--
       (A) specifically prohibited from disclosure by any other 
     provision of law;
       (B) specifically required by Executive order to be 
     protected from disclosure in the interest of national defense 
     or national security or in the conduct of foreign affairs; or
       (C) a part of an ongoing criminal investigation.
       (j) Report Coordination.--
       (1) Submission to secretaries of state and defense.--The 
     Inspector General shall also submit each report required 
     under subsection (i) to the Secretary of State and the 
     Secretary of Defense.
       (2) Submission to congress.--Not later than 30 days after 
     receipt of a report under paragraph (1), the Secretary of 
     State or the Secretary of Defense may submit to the 
     appropriate congressional committees any comments on the 
     matters covered by the report as the Secretary of State or 
     the Secretary of Defense, as the case may be, considers 
     appropriate. Any comments on the matters covered by the 
     report shall be submitted in unclassified form, but may 
     include a classified annex if the Secretary of State or the 
     Secretary of Defense, as the case may be, considers it 
     necessary.
       (k) Transparency.--
       (1) Report.--Not later than 60 days after submission to the 
     appropriate congressional committees of a report under 
     subsection (i), the Secretary of State and the Secretary of 
     Defense shall jointly make copies of the report available to 
     the public upon request, and at a reasonable cost.
       (2) Comments on matters covered by report.--Not later than 
     60 days after submission to the appropriate congressional 
     committees under subsection (j)(2) of comments on a report 
     under subsection (i), the Secretary of State and the 
     Secretary of Defense shall jointly make copies of the 
     comments available to the public upon request, and at a 
     reasonable cost.
       (l) Waiver.--
       (1) Authority.--The President may waive the requirement 
     under paragraph (1) or (2) of subsection (k) with respect to 
     availability to the public of any element in a report under 
     subsection (i), or any comment under subsection (j)(2), if 
     the President determines that the waiver is justified for 
     national security reasons.
       (2) Notice of waiver.--The President shall publish a notice 
     of each waiver made under this subsection in the Federal 
     Register no later than the date on which a report required 
     under subsection (i), or any comment under subsection (j)(2), 
     is submitted to the appropriate congressional committees. The 
     report and comments shall specify whether waivers under this 
     subsection were made and with respect to which elements in 
     the report or which comments, as appropriate.
       (m) Definitions.--In this section:
       (1) Amounts appropriated or otherwise made available for 
     the reconstruction of afghanistan.--The term ``amounts 
     appropriated or otherwise made available for the 
     reconstruction of Afghanistan'' means--
       (A) amounts appropriated or otherwise made available for 
     any fiscal year--
       (i) to the Afghanistan Security Forces Fund; or
       (ii) to the program to assist the people of Afghanistan 
     established under subsection (a)(2) of section 1202 of the 
     National Defense Authorization for Fiscal Year 2006 (Public 
     Law 109-163; 119 Stat. 3455-3456); and
       (B) amounts appropriated or otherwise made available for 
     any fiscal year for the reconstruction of Afghanistan under--
       (i) the Economic Support Fund;
       (ii) the International Narcotics Control and Law 
     Enforcement account; or
       (iii) any other provision of law.
       (2) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committees on Appropriations, Armed Services, and 
     Foreign Relations of the Senate; and
       (B) the Committees on Appropriations, Armed Services, and 
     Foreign Affairs of the House of Representatives.
       (n) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated 
     $20,000,000 for fiscal year 2008 to carry out this section.
       (2) Offset.--The amount authorized to be appropriated by 
     section 1513 for the Afghanistan Security Forces Fund is 
     hereby reduced by $20,000,000.
       (o) Termination.--
       (1) In general.--The Office of the Special Inspector 
     General for Afghanistan Reconstruction shall terminate 180 
     days after the date on which amounts appropriated or 
     otherwise made available for the reconstruction of 
     Afghanistan that are unexpended are less than $250,000,000.

[[Page 32625]]

       (2) Final report.--The Inspector General shall, prior to 
     the termination of the Office of the Special Inspector 
     General for Afghanistan Reconstruction under paragraph (1), 
     prepare and submit to the appropriate congressional 
     committees a final forensic audit report on programs and 
     operations funded with amounts appropriated or otherwise made 
     available for the reconstruction of Afghanistan.

     SEC. 1230. REPORT ON PROGRESS TOWARD SECURITY AND STABILITY 
                   IN AFGHANISTAN.

       (a) Report Required.--Not later than 90 days after the date 
     of the enactment of this Act, and every 180 days thereafter 
     through the end of fiscal year 2010, the President, acting 
     through the Secretary of Defense, shall submit to the 
     appropriate congressional committees a report on progress 
     toward security and stability in Afghanistan.
       (b) Coordination.--The report required under subsection (a) 
     shall be prepared in coordination with the Secretary of 
     State, the Director of National Intelligence, the Attorney 
     General, the Administrator of the Drug Enforcement 
     Administration, the Administrator of the United States Agency 
     for International Development, the Secretary of Agriculture, 
     and the head of any other department or agency of the 
     Government of the United States involved with activities 
     relating to security and stability in Afghanistan.
       (c) Matters to Be Included: Strategic Direction of United 
     States Activities Relating to Security and Stability in 
     Afghanistan.--The report required under subsection (a) shall 
     include a description of a comprehensive strategy of the 
     United States for security and stability in Afghanistan. The 
     description of such strategy shall consist of a general 
     overview and a separate detailed section for each of the 
     following:
       (1) North atlantic treaty organization international 
     security assistance force.--A description of the following:
       (A) Efforts of the United States to work with countries 
     participating in the North Atlantic Treaty Organization 
     (NATO) International Security Assistance Force (ISAF) in 
     Afghanistan (hereafter in this section referred to as ``NATO 
     ISAF countries'').
       (B) Any actions by the United States to achieve the 
     following goals relating to strengthening the NATO ISAF, and 
     the results of such actions:
       (i) Encourage NATO ISAF countries to fulfill commitments to 
     the NATO ISAF mission in Afghanistan, and ensure adequate 
     contributions to efforts to build the capacity of the 
     Afghanistan National Security Forces (ANSF), counter-
     narcotics efforts, and reconstruction and development 
     activities in Afghanistan.
       (ii) Remove national caveats on the use of forces deployed 
     as part of the NATO ISAF.
       (iii) Reduce the number of civilian casualties resulting 
     from military operations of NATO ISAF countries and mitigate 
     the impact of such casualties on the Afghan people.
       (2) Afghanistan national security forces.--A description of 
     the following:
       (A) A comprehensive and effective long-term strategy and 
     budget, with defined objectives, for activities relating to 
     strengthening the resources, capabilities, and effectiveness 
     of the Afghanistan National Army (ANA) and the Afghanistan 
     National Police (ANP) of the ANSF, with the goal of ensuring 
     that a strong and fully-capable ANSF is able to independently 
     and effectively conduct operations and maintain security and 
     stability in Afghanistan.
       (B) Any actions by the United States to achieve the 
     following goals relating to building the capacity of the 
     ANSF, and the results of such actions:
       (i) Improve coordination with all relevant departments and 
     agencies of the Government of the United States, as well as 
     NATO ISAF countries and other international partners.
       (ii) Improve ANSF recruitment and retention, including 
     through improved vetting and salaries for the ANSF.
       (iii) Increase and improve ANSF training and mentoring.
       (iv) Strengthen the partnership between the Government of 
     the United States and the Government of Afghanistan.
       (3) Provincial reconstruction teams and other 
     reconstruction and development activities.--A description of 
     the following:
       (A) A comprehensive and effective long-term strategy and 
     budget, with defined objectives, for reconstruction and 
     development in Afghanistan, including a long-term strategy 
     with a mission and objectives for each United States-led 
     Provincial Reconstruction Team (PRT) in Afghanistan.
       (B) Any actions by the United States to achieve the 
     following goals with respect to reconstruction and 
     development in Afghanistan, and the results of such actions:
       (i) Improve coordination with all relevant departments and 
     agencies of the Government of the United States, as well as 
     NATO ISAF countries and other international partners.
       (ii) Clarify the chain of command, and operations plans for 
     United States-led PRTs that are appropriate to meet the needs 
     of the relevant local communities.
       (iii) Promote coordination among PRTs.
       (iv) Ensure that each PRT is adequately staffed, 
     particularly with civilian specialists, and that such staff 
     receive appropriate training.
       (v) Expand the ability of the Afghan people to assume 
     greater responsibility for their own reconstruction and 
     development projects.
       (vi) Strengthen the partnership between the Government of 
     the United States and Government of Afghanistan.
       (vii) Ensure proper reconstruction and development 
     oversight activities, including implementation, where 
     appropriate, of recommendations of any United States 
     inspectors general, including the Special Inspector General 
     for Afghanistan Reconstruction appointed pursuant to section 
     1229.
       (4) Counter-narcotics activities.--A description of the 
     following:
       (A) A comprehensive and effective long-term strategy and 
     budget, with defined objectives, for the activities of the 
     Department of Defense relating to counter-narcotics efforts 
     in Afghanistan, including--
       (i) roles and missions of the Department of Defense within 
     the overall counter-narcotics strategy for Afghanistan of the 
     Government of the United States, including a statement of 
     priorities;
       (ii) a detailed, comprehensive, and effective strategy with 
     defined one-year, three-year, and five-year objectives and a 
     description of the accompanying allocation of resources of 
     the Department of Defense to accomplish such objectives;
       (iii) in furtherance of the strategy described in clause 
     (i), actions that the Department of Defense is taking and has 
     planned to take to--

       (I) improve coordination within the Department of Defense 
     and with all relevant departments and agencies of the 
     Government of the United States;
       (II) strengthen significantly the Afghanistan National 
     Counter-narcotics Police;
       (III) build the capacity of local and provincial 
     governments of Afghanistan and the national Government of 
     Afghanistan to assume greater responsibility for counter-
     narcotics-related activities, including interdiction; and
       (IV) improve counter-narcotics-related intelligence 
     capabilities and tactical use of such capabilities by the 
     Department of Defense and other appropriate departments and 
     agencies of the Government of the United States; and

       (iv) the impact, if any, including the disadvantages and 
     advantages, if any, on the primary counter-terrorism mission 
     of the United States military of providing enhanced 
     logistical support to departments and agencies of the 
     Government of the United States and counter-narcotics 
     partners of the United States in their interdiction efforts, 
     including apprehending or eliminating major drug traffickers 
     in Afghanistan.
       (B) The counter-narcotics roles and missions assumed by the 
     local and provincial governments of Afghanistan and the 
     national Government of Afghanistan, appropriate departments 
     and agencies of the Government of the United States (other 
     than the Department of Defense), the NATO ISAF, and the 
     governments of other countries.
       (C) The plan and efforts to coordinate the counter-
     narcotics strategy and activities of the Department of 
     Defense with the counter-narcotics strategy and activities of 
     the Government of Afghanistan, the NATO-led interdiction and 
     security forces, other appropriate countries, and other 
     counter-narcotics partners of the United States, and the 
     results of such efforts.
       (D) The progress made by the governments, organizations, 
     and entities specified in subparagraph (B) in executing 
     designated roles and missions, and in coordinating and 
     implementing counternarcotics plans and activities, and based 
     on the results of this progress whether, and to what extent, 
     roles and missions for the Department of Defense should be 
     altered in the future, or should remain unaltered.
       (5) Public corruption and rule of law.--A description of 
     any actions, and the results of such actions, to help the 
     Government of Afghanistan fight public corruption and 
     strengthen governance and the rule of law at the local, 
     provincial, and national levels.
       (6) Regional considerations.--A description of any actions 
     and the results of such actions to increase cooperation with 
     countries geographically located around Afghanistan's border, 
     with a particular focus on improving security and stability 
     in the Afghanistan-Pakistan border areas.
       (d) Matters to Be Included: Performance Indicators and 
     Measures of Progress Toward Sustainable Long-Term Security 
     and Stability in Afghanistan.--
       (1) In general.--The report required under subsection (a) 
     shall set forth a comprehensive set of performance indicators 
     and measures of progress toward sustainable long-term 
     security and stability in Afghanistan, as specified in 
     paragraph (2), and shall include performance standards and 
     progress goals, together with a notional timetable for 
     achieving such goals.
       (2) Performance indicators and measures of progress 
     specified.--The performance indicators and measures of 
     progress specified in this paragraph shall include, at a 
     minimum, the following:
       (A) With respect to the NATO ISAF, an assessment of 
     unfulfilled NATO ISAF mission requirements and contributions 
     from individual NATO ISAF countries, including levels of 
     troops and equipment, the effect of contributions on 
     operations, and unfulfilled commitments.
       (B) An assessment of military operations of the NATO ISAF, 
     including of NATO ISAF countries, and an assessment of 
     separate military operations by United States forces. Such 
     assessments shall include--
       (i) indicators of a stable security environment in 
     Afghanistan, such as number of engagements per day, and 
     trends relating to the numbers and types of hostile 
     encounters; and
       (ii) the effects of national caveats that limit operations, 
     geographic location of operations, and estimated number of 
     civilian casualties.

[[Page 32626]]

       (C) For the Afghanistan National Army (ANA), and separately 
     for the Afghanistan National Police (ANP), of the Afghanistan 
     National Security Forces (ANSF) an assessment of the 
     following:
       (i) Recruitment and retention numbers, rates of 
     absenteeism, vetting procedures, and salary scale.
       (ii) Numbers trained, numbers receiving mentoring, the type 
     of training and mentoring, and number of trainers, mentors, 
     and advisers needed to support the ANA and ANP and associated 
     ministries.
       (iii) Type of equipment used.
       (iv) Operational readiness status of ANSF units, including 
     the type, number, size and organizational structure of ANA 
     and ANP units that are--

       (I) capable of conducting operations independently;
       (II) capable of conducting operations with the support of 
     the United States, NATO ISAF forces, or other coalition 
     forces; or
       (III) not ready to conduct operations.

       (v) Effectiveness of ANA and ANP officers and the ANA and 
     ANP chain of command.
       (vi) Extent to which insurgents have infiltrated the ANA 
     and ANP.
       (vii) Estimated number and capability level of the ANA and 
     ANP needed to perform duties now undertaken by NATO ISAF 
     countries, separate United States forces and other coalition 
     forces, including defending the borders of Afghanistan and 
     providing adequate levels of law and order throughout 
     Afghanistan.
       (D) An assessment of the estimated strength of the 
     insurgency in Afghanistan and the extent to which it is 
     composed of non-Afghan fighters and utilizing weapons or 
     weapons-related materials from countries other than 
     Afghanistan.
       (E) A description of all terrorist and insurgent groups 
     operating in Afghanistan, including the number, size, 
     equipment strength, military effectiveness, sources of 
     support, legal status, and any efforts to disarm or 
     reintegrate each such group.
       (F) An assessment of security and stability, including 
     terrorist and insurgent activity, in Afghanistan-Pakistan 
     border areas and in Pakistan's Federally Administered Tribal 
     Areas.
       (G) An assessment of United States military requirements, 
     including planned force rotations, for the twelve-month 
     period following the date of the report required under 
     subsection (a).
       (H) For reconstruction and development, an assessment of 
     the following:
       (i) The location, funding (including the sources of 
     funding), staffing requirements, current staffing levels, and 
     activities of each United States-led Provincial 
     Reconstruction Team.
       (ii) Key indicators of economic activity that should be 
     considered the most important for determining the prospects 
     of stability in Afghanistan, including--

       (I) the indicators set forth in the Afghanistan Compact, 
     which consist of roads, education, health, agriculture and 
     electricity; and
       (II) unemployment and poverty levels.

       (I) For counter-narcotics efforts, an assessment of the 
     activities of the Department of Defense in Afghanistan, as 
     described in subsection (c)(4), and the effectiveness of such 
     activities.
       (J) Key measures of political stability relating to both 
     central and local Afghan governance.
       (K) For public corruption and rule of law, an assessment of 
     anti-corruption and law enforcement activities at the local, 
     provincial, and national levels and the effectiveness of such 
     activities.
       (e) Form.--The report required under subsection (a) shall 
     be submitted in unclassified form, but may include a 
     classified annex, if necessary.
       (f) Congressional Briefings.--The Secretary of Defense 
     shall supplement the report required under subsection (a) 
     with regular briefings to the appropriate congressional 
     committees on the subject matter of the report.
       (g) Appropriate Congressional Committees Defined.--In this 
     section, the term ``appropriate congressional committees'' 
     means--
       (1) the Committee on Armed Services, the Committee on 
     Appropriations, and the Committee on Foreign Affairs of the 
     House of Representatives; and
       (2) the Committee on Armed Services, the Committee on 
     Appropriations, and the Committee on Foreign Relations of the 
     Senate.

     SEC. 1231. UNITED STATES PLAN FOR SUSTAINING THE AFGHANISTAN 
                   NATIONAL SECURITY FORCES.

       (a) Plan Required.--Not later than 90 days after the date 
     of the enactment of this Act, and annually thereafter through 
     the end of fiscal year 2010, the Secretary of Defense shall 
     submit to the appropriate congressional committees a report 
     on a long-term detailed plan for sustaining the Afghanistan 
     National Army (ANA) and the Afghanistan National Police (ANP) 
     of the Afghanistan National Security Forces (ANSF), with the 
     objective of ensuring that a strong and fully-capable ANSF 
     will be able to independently and effectively conduct 
     operations and maintain long-term security and stability in 
     Afghanistan.
       (b) Coordination.--The report required under subsection (a) 
     shall be prepared in coordination with the Secretary of 
     State.
       (c) Matters to Be Included.--The report required under 
     subsection (a) shall include a description of the following 
     matters relating to the plan for sustaining the ANSF:
       (1) A comprehensive and effective long-term strategy and 
     budget, with defined objectives.
       (2) A mechanism for tracking funding, equipment, training, 
     and services provided for the ANSF by the United States, 
     countries participating in the North Atlantic Treaty 
     Organization (NATO) International Security Assistance Force 
     (ISAF) in Afghanistan (hereafter in this section referred to 
     as ``NATO ISAF countries''), and other coalition forces that 
     are not part of the NATO ISAF.
       (3) Any actions to assist the Government of Afghanistan 
     achieve the following goals, and the results of such actions:
       (A) Build and sustain effective Afghan security 
     institutions with fully-capable leadership and staff, 
     including a reformed Ministry of Interior, a fully-
     established Ministry of Defense, and logistics, intelligence, 
     medical, and recruiting units (hereafter in this section 
     referred to as ``ANSF-sustaining institutions'').
       (B) Train and equip fully-capable ANSF that are capable of 
     conducting operations independently and in sufficient 
     numbers.
       (C) Establish strong ANSF-readiness assessment tools and 
     metrics.
       (D) Build and sustain strong, professional ANSF officers at 
     the junior-, mid-, and senior-levels.
       (E) Develop strong ANSF communication and control between 
     central command and regions, provinces, and districts.
       (F) Establish a robust mentoring and advising program, and 
     a strong professional military training and education 
     program, for all ANSF officials.
       (G) Establish effective merit-based salary, rank, 
     promotion, and incentive structures for the ANSF.
       (H) Develop mechanisms for incorporating lessons learned 
     and best practices into ANSF operations.
       (I) Establish an ANSF personnel accountability system with 
     effective internal discipline procedures and mechanisms, and 
     a system for addressing ANSF personnel complaints.
       (J) Ensure effective ANSF oversight mechanisms, including a 
     strong record-keeping system to track ANSF equipment and 
     personnel.
       (4) Coordination with all relevant departments and agencies 
     of the Government of the United States, as well as NATO ISAF 
     countries and other international partners, including on--
       (A) funding;
       (B) reform and establishment of ANSF-sustaining 
     institutions; and
       (C) efforts to ensure that progress on sustaining the ANSF 
     is reinforced with progress in other pillars of the Afghan 
     security sector, particularly progress on building an 
     effective judiciary, curbing production and trafficking of 
     illicit narcotics, and demobilizing, disarming, and 
     reintegrating militia fighters.
       (d) Appropriate Congressional Committees Defined.--In this 
     section, the term ``appropriate congressional committees'' 
     means--
       (1) the Committee on Armed Services, the Committee on 
     Appropriations, and the Committee on Foreign Affairs of the 
     House of Representatives; and
       (2) the Committee on Armed Services, the Committee on 
     Appropriations, and the Committee on Foreign Relations of the 
     Senate.

     SEC. 1232. REPORT ON ENHANCING SECURITY AND STABILITY IN THE 
                   REGION ALONG THE BORDER OF AFGHANISTAN AND 
                   PAKISTAN.

       (a) Report Required.--
       (1) In general.--Not later than March 31, 2008, the 
     Secretary of Defense, in consultation with the Secretary of 
     State, shall submit to the appropriate congressional 
     committees a report on enhancing security and stability in 
     the region along the border of Afghanistan and Pakistan.
       (2) Matters to be included.--The report required under 
     paragraph (1) shall include the following:
       (A) A detailed description of the efforts by the Government 
     of Pakistan to achieve the following objectives:
       (i) Eliminate safe havens for Taliban, Al Qaeda, and other 
     violent extremist forces on the national territory of 
     Pakistan.
       (ii) Prevent the movement of such forces across the border 
     of Pakistan into Afghanistan to engage in insurgent or 
     terrorist activities.
       (B) An assessment of the Secretary of Defense as to whether 
     Pakistan is making substantial and sustained efforts to 
     achieve the objectives specified in subparagraph (A).
       (3) Form.--The report required under paragraph (1) shall be 
     submitted in unclassified form, but may include a classified 
     annex.
       (4) Limitation.--
       (A) In general.--If the Secretary of Defense does not 
     submit the report required under paragraph (1) by March 31, 
     2008, then after such date the Government of Pakistan may not 
     be reimbursed under the authority of any provision of law 
     described in subparagraph (B) for logistical, military, or 
     other support provided by Pakistan to the United States until 
     the Secretary submits to the appropriate congressional 
     committees the report required by such paragraph.
       (B) Provisions of law.--The provisions of law referred to 
     in subparagraph (A) are the following:
       (i) Section 1233.
       (ii) Any other provision of law under which payments are 
     authorized to reimburse key cooperating nations for 
     logistical, military, or other support provided by that 
     nation to or in connection with United States military 
     operations.
       (5) Appropriate congressional committees defined.--In this 
     subsection, the term ``appropriate congressional committees'' 
     means--
       (A) the Committee on Armed Services, the Committee on 
     Appropriations, and the Committee on Foreign Affairs of the 
     House of Representatives; and

[[Page 32627]]

       (B) the Committee on Armed Services, the Committee on 
     Appropriations, and the Committee on Foreign Relations of the 
     Senate.
       (b) Notification Relating to Department of Defense 
     Coalition Support Funds for Pakistan.--
       (1) Notification.--
       (A) In general.--Not less than 15 days before making any 
     reimbursement to the Government of Pakistan under the 
     authority of any provision of law described in subparagraph 
     (B) for logistical, military, or other support provided by 
     Pakistan to the United States, the Secretary of Defense shall 
     submit to the congressional defense committees a written 
     notification that contains a detailed description of such 
     logistical, military, or other support.
       (B) Provisions of law.--The provisions of law referred to 
     in subparagraph (A) are the following:
       (i) Section 1233.
       (ii) Any other provision of law under which payments are 
     authorized to reimburse key cooperating nations for 
     logistical, military, or other support provided by that 
     nation to or in connection with United States military 
     operations.
       (2) Matters to be included.--Each notification required 
     under paragraph (1) shall include an itemized description of 
     the following support provided by Pakistan to the United 
     States for which the United States will provide 
     reimbursement:
       (A) Logistic support, supplies, and services, as such term 
     is defined in section 2350(1) of title 10, United States 
     Code.
       (B) Military support.
       (C) Any other support or services.
       (3) Form.--Each notification required under paragraph (1) 
     shall be submitted in unclassified form, but may include a 
     classified annex.
       (4) Relationship to other notification requirements.--Each 
     notification required under paragraph (1) shall be in 
     addition to any notification requirements under any provision 
     of law described in subparagraph (B) of such paragraph.
       (5) Effective date.--The requirement to submit 
     notifications under paragraph (1) shall apply with respect to 
     reimbursements to the Government of Pakistan for logistical, 
     military, or other support provided by Pakistan to the United 
     States during the period beginning on February 1, 2008, and 
     ending on September 30, 2009.

     SEC. 1233. REIMBURSEMENT OF CERTAIN COALITION NATIONS FOR 
                   SUPPORT PROVIDED TO UNITED STATES MILITARY 
                   OPERATIONS.

       (a) Authority.--From funds made available for the 
     Department of Defense by section 1508 for operation and 
     maintenance, Defense-wide activities, the Secretary of 
     Defense may reimburse any key cooperating nation for 
     logistical and military support provided by that nation to or 
     in connection with United States military operations in 
     Operation Iraqi Freedom or Operation Enduring Freedom.
       (b) Amounts of Reimbursement.--
       (1) In general.--Reimbursement authorized by subsection (a) 
     may be made in such amounts as the Secretary of Defense, with 
     the concurrence of the Secretary of State and in consultation 
     with the Director of the Office of Management and Budget, may 
     determine, based on documentation determined by the Secretary 
     of Defense to adequately account for the support provided.
       (2) Standards.--Not later than 30 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     prescribe standards for determining the kinds of logistical 
     and military support to the United States that shall be 
     considered reimbursable under the authority in subsection 
     (a). Such standards may not take effect until 15 days after 
     the date on which the Secretary submits to the congressional 
     defense committees a report setting forth such standards.
       (c) Limitations.--
       (1) Limitation on amount.--The total amount of 
     reimbursements made under the authority in subsection (a) 
     during fiscal year 2008 may not exceed $1,200,000,000.
       (2) Prohibition on contractual obligations to make 
     payments.--The Secretary of Defense may not enter into any 
     contractual obligation to make a reimbursement under the 
     authority in subsection (a).
       (d) Notice to Congress.--The Secretary of Defense shall--
       (1) notify the congressional defense committees not less 
     than 15 days before making any reimbursement under the 
     authority in subsection (a); and
       (2) submit to the congressional defense committees on a 
     quarterly basis a report on any reimbursements made under the 
     authority in subsection (a) during such quarter.

     SEC. 1234. LOGISTICAL SUPPORT FOR COALITION FORCES SUPPORTING 
                   OPERATIONS IN IRAQ AND AFGHANISTAN.

       (a) Availability of Funds for Logistical Support.--Subject 
     to the provisions of this section, amounts available to the 
     Department of Defense for fiscal year 2008 for operation and 
     maintenance may be used to provide supplies, services, 
     transportation (including airlift and sealift), and other 
     logistical support to coalition forces supporting United 
     States military and stabilization operations in Iraq and 
     Afghanistan.
       (b) Required Determination.--The Secretary may provide 
     logistical support under the authority in subsection (a) only 
     if the Secretary determines that the coalition forces to be 
     provided the logistical support--
       (1) are essential to the success of a United States 
     military or stabilization operation; and
       (2) would not be able to participate in such operation 
     without the provision of the logistical support.
       (c) Coordination With Export Control Laws.--Logistical 
     support may be provided under the authority in subsection (a) 
     only in accordance with applicable provisions of the Arms 
     Export Control Act and other export control laws of the 
     United States.
       (d) Limitation on Value.--The total amount of logistical 
     support provided under the authority in subsection (a) in 
     fiscal year 2008 may not exceed $400,000,000.
       (e) Quarterly Reports.--
       (1) Reports required.--Not later than 15 days after the end 
     of each fiscal-year quarter of fiscal year 2008, the 
     Secretary shall submit to the congressional defense 
     committees a report on the provision of logistical support 
     under the authority in subsection (a) during such fiscal-year 
     quarter.
       (2) Elements.--Each report under paragraph (1) shall 
     include, for the fiscal-year quarter covered by such report, 
     the following:
       (A) Each nation provided logistical support under the 
     authority in subsection (a).
       (B) For each such nation, a description of the type and 
     value of logistical support so provided.
                    Subtitle C--Iraq Refugee Crisis

     SEC. 1241. SHORT TITLE.

       This subtitle may be cited as the ``Refugee Crisis in Iraq 
     Act of 2007''.

     SEC. 1242. PROCESSING MECHANISMS.

       (a) In General.--The Secretary of State, in consultation 
     with the Secretary of Homeland Security, shall establish or 
     use existing refugee processing mechanisms in Iraq and in 
     countries, where appropriate, in the region in which--
       (1) aliens described in section 1243 may apply and 
     interview for admission to the United States as refugees; and
       (2) aliens described in section 1244(b) may apply and 
     interview for admission to United States as special 
     immigrants.
       (b) Suspension.--If such is determined necessary, the 
     Secretary of State, in consultation with the Secretary of 
     Homeland Security, may suspend in-country processing under 
     subsection (a) for a period not to exceed 90 days. Such 
     suspension may be extended by the Secretary of State upon 
     notification to the Committee on the Judiciary of the House 
     of Representatives, the Committee on Foreign Affairs of the 
     House of Representatives, the Committee on the Judiciary of 
     the Senate, and the Committee on Foreign Relations of the 
     Senate. The Secretary of State shall submit to such 
     committees a report outlining the basis of any such 
     suspension and any extensions thereof.
       (c) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the Secretary of State, in 
     consultation with the Secretary of Homeland Security, shall 
     submit to the committees specified in subsection (b) a report 
     that--
       (1) describes the Secretary of State's plans to establish 
     the processing mechanisms required under subsection (a);
       (2) contains an assessment of in-country processing that 
     makes use of videoconferencing; and
       (3) describe the Secretary of State's diplomatic efforts to 
     improve issuance of exit permits to Iraqis who have been 
     provided special immigrant status under section 1244 and 
     Iraqi refugees under section 1243.

     SEC. 1243. UNITED STATES REFUGEE PROGRAM PROCESSING 
                   PRIORITIES.

       (a) In General.--Refugees of special humanitarian concern 
     eligible for Priority 2 processing under the refugee 
     resettlement priority system who may apply directly to the 
     United States Admission Program shall include--
       (1) Iraqis who were or are employed by the United States 
     Government, in Iraq;
       (2) Iraqis who establish to the satisfaction of the 
     Secretary of State that they are or were employed in Iraq 
     by--
       (A) a media or nongovernmental organization headquartered 
     in the United States; or
       (B) an organization or entity closely associated with the 
     United States mission in Iraq that has received United States 
     Government funding through an official and documented 
     contract, award, grant, or cooperative agreement; and
       (3) spouses, children, and parents whether or not 
     accompanying or following to join, and sons, daughters, and 
     siblings of aliens described in paragraph (1), paragraph (2), 
     or section 1244(b)(1); and
       (4) Iraqis who are members of a religious or minority 
     community, have been identified by the Secretary of State, or 
     the designee of the Secretary, as a persecuted group, and 
     have close family members (as described in section 
     201(b)(2)(A)(i) or 203(a) of the Immigration and Nationality 
     Act (8 U.S.C. 1151(b)(2)(A)(i) and 1153(a))) in the United 
     States.
       (b) Identification of Other Persecuted Groups.--The 
     Secretary of State, or the designee of the Secretary, is 
     authorized to identify other Priority 2 groups of Iraqis, 
     including vulnerable populations.
       (c) Ineligible Organizations and Entities.--Organizations 
     and entities described in subsection (a)(2) shall not include 
     any that appear on the Department of the Treasury's list of 
     Specially Designated Nationals or any entity specifically 
     excluded by the Secretary of Homeland Security, after 
     consultation with the Secretary of State and the heads of 
     relevant elements of the intelligence community (as defined 
     in section 3(4) of the National Security Act of 1947 (50 
     U.S.C. 401a(4)).
       (d) Applicability of Other Requirements.--Aliens under this 
     section who qualify

[[Page 32628]]

     for Priority 2 processing under the refugee resettlement 
     priority system shall satisfy the requirements of section 207 
     of the Immigration and Nationality Act (8 U.S.C. 1157) for 
     admission to the United States.
       (e) Numerical Limitations.--In determining the number of 
     Iraqi refugees who should be resettled in the United States 
     under paragraphs (2), (3), and (4) of subsection (a) and 
     subsection (b) of section 207 of the Immigration and 
     Nationality Act (8 U.S.C. 1157), the President shall consult 
     with the heads of nongovernmental organizations that have a 
     presence in Iraq or experience in assessing the problems 
     faced by Iraqi refugees.
       (f) Eligibility for Admission as Refugee.--No alien shall 
     be denied the opportunity to apply for admission under this 
     section solely because such alien qualifies as an immediate 
     relative or is eligible for any other immigrant 
     classification.

     SEC. 1244. SPECIAL IMMIGRANT STATUS FOR CERTAIN IRAQIS.

       (a) In General.--Subject to subsection (c), the Secretary 
     of Homeland Security, or, notwithstanding any other provision 
     of law, the Secretary of State in consultation with the 
     Secretary of Homeland Security, may provide an alien 
     described in subsection (b) with the status of a special 
     immigrant under section 101(a)(27) of the Immigration and 
     Nationality Act (8 U.S.C. 1101(a)(27)), if the alien--
       (1) or an agent acting on behalf of the alien, submits a 
     petition for classification under section 203(b)(4) of such 
     Act (8 U.S.C. 1153(b)(4));
       (2) is otherwise eligible to receive an immigrant visa;
       (3) is otherwise admissible to the United States for 
     permanent residence (excluding the grounds for 
     inadmissibility specified in section 212(a)(4) of such Act (8 
     U.S.C. 1182(a)(4)); and
       (4) cleared a background check and appropriate screening, 
     as determined by the Secretary of Homeland Security.
       (b) Aliens Described.--
       (1) Principal aliens.--An alien is described in this 
     subsection if the alien--
       (A) is a citizen or national of Iraq;
       (B) was or is employed by or on behalf of the United States 
     Government in Iraq, on or after March 20, 2003, for not less 
     than one year;
       (C) provided faithful and valuable service to the United 
     States Government, which is documented in a positive 
     recommendation or evaluation, subject to paragraph (4), from 
     the employee's senior supervisor or the person currently 
     occupying that position, or a more senior person, if the 
     employee's senior supervisor has left the employer or has 
     left Iraq; and
       (D) has experienced or is experiencing an ongoing serious 
     threat as a consequence of the alien's employment by the 
     United States Government.
       (2) Spouses and children.--An alien is described in this 
     subsection if the alien--
       (A) is the spouse or child of a principal alien described 
     in paragraph (1); and
       (B) is accompanying or following to join the principal 
     alien in the United States.
       (3) Treatment of surviving spouse or child.--An alien is 
     described in subsection (b) if the alien--
       (A) was the spouse or child of a principal alien described 
     in paragraph (1) who had a petition for classification 
     approved pursuant to this section or section 1059 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 8 U.S.C. 1101 note), which included the 
     alien as an accompanying spouse or child; and
       (B) due to the death of the principal alien--
       (i) such petition was revoked or terminated (or otherwise 
     rendered null); and
       (ii) such petition would have been approved if the 
     principal alien had survived.
       (4) Approval by chief of mission required.--A 
     recommendation or evaluation required under paragraph (1)(C) 
     shall be accompanied by approval from the Chief of Mission, 
     or the designee of the Chief of Mission, who shall conduct a 
     risk assessment of the alien and an independent review of 
     records maintained by the United States Government or hiring 
     organization or entity to confirm employment and faithful and 
     valuable service to the United States Government prior to 
     approval of a petition under this section
       (c) Numerical Limitations.--
       (1) In general.--The total number of principal aliens who 
     may be provided special immigrant status under this section 
     may not exceed 5,000 per year for each of the five fiscal 
     years beginning after the date of the enactment of this Act.
       (2) Exclusion from numerical limitations.--Aliens provided 
     special immigrant status under this section shall not be 
     counted against any numerical limitation under sections 
     201(d), 202(a), or 203(b)(4) of the Immigration and 
     Nationality Act (8 U.S.C. 1151(d), 1152(a), and 1153(b)(4)).
       (3) Carry forward.--
       (A) Fiscal years one through four.--If the numerical 
     limitation specified in paragraph (1) is not reached during a 
     given fiscal year referred to in such paragraph (with respect 
     to fiscal years one through four), the numerical limitation 
     specified in such paragraph for the following fiscal year 
     shall be increased by a number equal to the difference 
     between--
       (i) the numerical limitation specified in paragraph (1) for 
     the given fiscal year; and
       (ii) the number of principal aliens provided special 
     immigrant status under this section during the given fiscal 
     year.
       (B) Fiscal years five and six.--If the numerical limitation 
     specified in paragraph (1) is not reached in the fifth fiscal 
     year beginning after the date of the enactment of this Act, 
     the total number of principal aliens who may be provided 
     special immigrant status under this section for the sixth 
     fiscal year beginning after such date shall be equal to the 
     difference between--
       (i) the numerical limitation specified in paragraph (1) for 
     the fifth fiscal year; and
       (ii) the number of principal aliens provided such status 
     under this section during the fifth fiscal year.
       (d) Visa and Passport Issuance and Fees.--Neither the 
     Secretary of State nor the Secretary of Homeland Security may 
     charge an alien described in subsection (b) any fee in 
     connection with an application for, or issuance of, a special 
     immigrant visa. The Secretary of State shall make a 
     reasonable effort to ensure that aliens described in this 
     section who are issued special immigrant visas are provided 
     with the appropriate series Iraqi passport necessary to enter 
     the United States.
       (e) Protection of Aliens.--The Secretary of State, in 
     consultation with the heads of other relevant Federal 
     agencies, shall make a reasonable effort to provide an alien 
     described in this section who is applying for a special 
     immigrant visa with protection or the immediate removal from 
     Iraq, if possible, of such alien if the Secretary determines 
     after consultation that such alien is in imminent danger.
       (f) Eligibility for Admission Under Other Classification.--
     No alien shall be denied the opportunity to apply for 
     admission under this section solely because such alien 
     qualifies as an immediate relative or is eligible for any 
     other immigrant classification.
       (g) Resettlement Support.--Iraqi aliens granted special 
     immigrant status described in section 101(a)(27) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(27)) shall 
     be eligible for resettlement assistance, entitlement 
     programs, and other benefits available to refugees admitted 
     under section 207 of such Act (8 U.S.C. 1157) for a period 
     not to exceed eight months.
       (h) Rule of Construction.--Nothing in this section may be 
     construed to affect the authority of the Secretary of 
     Homeland Security under section 1059 of the National Defense 
     Authorization Act for Fiscal Year 2006.

     SEC. 1245. SENIOR COORDINATOR FOR IRAQI REFUGEES AND 
                   INTERNALLY DISPLACED PERSONS.

       (a) Designation in Iraq.--The Secretary of State shall 
     designate in the embassy of the United States in Baghdad, 
     Iraq, a Senior Coordinator for Iraqi Refugees and Internally 
     Displaced Persons (referred to in this section as the 
     ``Senior Coordinator'').
       (b) Responsibilities.--The Senior Coordinator shall be 
     responsible for the oversight of processing for the 
     resettlement in the United States of refugees of special 
     humanitarian concern, special immigrant visa programs in 
     Iraq, and the development and implementation of other 
     appropriate policies and programs concerning Iraqi refugees 
     and internally displaced persons. The Senior Coordinator 
     shall have the authority to refer persons to the United 
     States refugee resettlement program.
       (c) Designation of Additional Senior Coordinators.--The 
     Secretary of State shall designate in the embassies of the 
     United States in Cairo, Egypt, Amman, Jordan, Damascus, 
     Syria, and Beirut, Lebanon, a Senior Coordinator to oversee 
     resettlement in the United States of refugees of special 
     humanitarian concern in those countries to ensure their 
     applications to the United States refugee resettlement 
     program are processed in an orderly manner and without delay.

     SEC. 1246. COUNTRIES WITH SIGNIFICANT POPULATIONS OF IRAQI 
                   REFUGEES.

       With respect to each country with a significant population 
     of Iraqi refugees, including Iraq, Jordan, Egypt, Syria, 
     Turkey, and Lebanon, the Secretary of State shall--
       (1) as appropriate, consult with the appropriate government 
     officials of such countries and other countries and the 
     United Nations High Commissioner for Refugees regarding 
     resettlement of the most vulnerable members of such refugee 
     populations; and
       (2) as appropriate, except where otherwise prohibited by 
     the laws of the United States, develop mechanisms in and 
     provide assistance to countries with a significant population 
     of Iraqi refugees to ensure the well-being and safety of such 
     populations in their host environments.

     SEC. 1247. MOTION TO REOPEN DENIAL OR TERMINATION OF ASYLUM.

       An alien who applied for asylum or withholding of removal 
     and whose claim was denied on or after March 1, 2003, by an 
     asylum officer or an immigration judge solely, or in part, on 
     the basis of changed country conditions may, notwithstanding 
     any other provision of law, file a motion to reopen such 
     claim in accordance with subparagraphs (A) and (B) of section 
     240(c)(7) of the Immigration and Nationality Act (8 U.S.C. 
     1229a(c)(7)) not later than six months after the date of the 
     enactment of the Refugee Crisis in Iraq Act if the alien--
       (1) is a citizen or national of Iraq; and
       (2) has remained in the United States since the date of 
     such denial.

     SEC. 1248. REPORTS.

       (a) Secretary of Homeland Security.--Not later than 120 
     days after the date of the enactment of this Act, the 
     Secretary of Homeland Security shall submit to the Committee 
     on the Judiciary of the House of Representatives, the 
     Committee on Foreign Affairs of the House of Representatives, 
     the Committee on the Judiciary of the Senate, and the 
     Committee on Foreign

[[Page 32629]]

     Relations of the Senate a report containing plans to expedite 
     the processing of Iraqi refugees for resettlement, including 
     information relating to--
       (1) expediting the processing of Iraqi refugees for 
     resettlement, including through temporary expansion of the 
     Refugee Corps of United States Citizenship and Immigration 
     Services;
       (2) increasing the number of personnel of the Department of 
     Homeland Security devoted to refugee processing in Iraq, 
     Jordan, Egypt, Syria, Turkey, and Lebanon;
       (3) enhancing existing systems for conducting background 
     and security checks of persons applying for special immigrant 
     status and of persons considered Priority 2 refugees of 
     special humanitarian concern under the refugee resettlement 
     priority system, which enhancements shall support immigration 
     security and provide for the orderly processing of such 
     applications without delay; and
       (4) the projections of the Secretary, per country and per 
     month, for the number of refugee interviews that will be 
     conducted in fiscal year 2008 and fiscal year 2009.
       (b) President.--Not later than 120 days after the date of 
     the enactment of this Act, and annually thereafter through 
     2013, the President shall submit to Congress an unclassified 
     report, with a classified annex if necessary, which 
     includes--
       (1) an assessment of the financial, security, and personnel 
     considerations and resources necessary to carry out the 
     provisions of this subtitle;
       (2) the number of aliens described in section 1243(a)(1);
       (3) the number of such aliens who have applied for special 
     immigrant visas;
       (4) the date of such applications; and
       (5) in the case of applications pending for longer than six 
     months, the reasons that such visas have not been 
     expeditiously processed.
       (c) Report on Iraqi Citizens and Nationals Employed by the 
     United States Government or Federal Contractors in Iraq.--
       (1) In general.--Not later than 120 days after the date of 
     the enactment of this Act, the Secretary of Defense, the 
     Secretary of State, the Administrator of the United States 
     Agency for International Development, the Secretary of the 
     Treasury, and the Secretary of Homeland Security shall--
       (A) review internal records and databases of their 
     respective agencies for information that can be used to 
     verify employment of Iraqi nationals by the United States 
     Government; and
       (B) request from each prime contractor or grantee that has 
     performed work in Iraq since March 20, 2003, under a 
     contract, grant, or cooperative agreement with their 
     respective agencies that is valued in excess of $25,000 
     information that can be used to verify the employment of 
     Iraqi nationals by such contractor or grantee.
       (2) Information required.--To the extent data is available, 
     the information referred to in paragraph (1) shall include 
     the name and dates of employment of, biometric data for, and 
     other data that can be used to verify the employment of each 
     Iraqi citizen or national who has performed work in Iraq 
     since March 20, 2003, under a contract, grant, or cooperative 
     agreement with an executive agency.
       (3) Executive agency defined.--In this subsection, the term 
     ``executive agency'' has the meaning given the term in 
     section 4(1) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 403(1)).
       (d) Report on Establishment of Database.--Not later than 
     120 days after the date of the enactment of this Act, the 
     Secretary of Defense, in consultation with the Secretary of 
     State, the Administrator of the United States Agency for 
     International Development, the Secretary of the Treasury, and 
     the Secretary of Homeland Security, shall submit to Congress 
     a report examining the options for establishing a unified, 
     classified database of information related to contracts, 
     grants, or cooperative agreements entered into by executive 
     agencies for the performance of work in Iraq since March 20, 
     2003, including the information described and collected under 
     subsection (c), to be used by relevant Federal departments 
     and agencies to adjudicate refugee, asylum, special immigrant 
     visa, and other immigration claims and applications.
       (e) Noncompliance Report.--Not later than 180 days after 
     the date of the enactment of this Act, the President shall 
     submit a report to Congress that describes--
       (1) the inability or unwillingness of any contractor or 
     grantee to provide the information requested under subsection 
     (c)(1)(B); and
       (2) the reasons for failing to provide such information.

     SEC. 1249. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary to carry out this subtitle.
             Subtitle D--Other Authorities and Limitations

     SEC. 1251. COOPERATIVE OPPORTUNITIES DOCUMENTS UNDER 
                   COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS 
                   WITH NATO ORGANIZATIONS AND OTHER ALLIED AND 
                   FRIENDLY FOREIGN COUNTRIES.

       Section 2350a(e) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``(A)'';
       (B) by striking ``an arms cooperation opportunities 
     document'' and inserting ``a cooperative opportunities 
     document before the first milestone or decision point''; and
       (C) by striking subparagraph (B); and
       (2) in paragraph (2), by striking ``An arms cooperation 
     opportunities document'' and inserting ``A cooperative 
     opportunities document''.

     SEC. 1252. EXTENSION AND EXPANSION OF TEMPORARY AUTHORITY TO 
                   USE ACQUISITION AND CROSS-SERVICING AGREEMENTS 
                   TO LEND MILITARY EQUIPMENT FOR PERSONNEL 
                   PROTECTION AND SURVIVABILITY.

       (a) Expansion to Nations Engaged in Certain Peacekeeping 
     Operations.--Subsection (a) of section 1202 of the John 
     Warner National Defense Authorization Act for Fiscal Year 
     2007 (Public Law 109-364; 120 Stat. 2412) is amended--
       (1) in paragraph (1), by inserting ``or participating in 
     combined operations with the United States as part of a 
     peacekeeping operation under the Charter of the United 
     Nations or another international agreement'' after ``Iraq or 
     Afghanistan''; and
       (2) in paragraph (3) by inserting ``, or in a peacekeeping 
     operation described in paragraph (1), as applicable,'' after 
     ``Iraq or Afghanistan''.
       (b) One-Year Extension.--Subsection (e) of such section is 
     amended by striking ``September 30, 2008'' and inserting 
     ``September 30, 2009''.
       (c) Conforming Amendment.--The heading of such section is 
     amended by striking ``FOREIGN FORCES IN IRAQ AND 
     AFGHANISTAN'' and inserting ``CERTAIN FOREIGN FORCES''.

     SEC. 1253. ACCEPTANCE OF FUNDS FROM THE GOVERNMENT OF PALAU 
                   FOR COSTS OF UNITED STATES MILITARY CIVIC 
                   ACTION TEAM IN PALAU.

       Section 104(a) of Public Law 99-658 (48 U.S.C. 1933(a)) is 
     amended--
       (1) by striking ``In recognition'' and inserting ``(1) In 
     recognition''; and
       (2) by adding at the end the following:
       ``(2) For expenditures that the Department of Defense makes 
     pursuant to paragraph (1), the Secretary of Defense may 
     accept up to the amount of $250,000 in annual funds from the 
     Government of Palau as specified in paragraph (1). Funds 
     accepted by the Secretary from the Government of Palau under 
     this paragraph shall be credited to and merged with 
     appropriations available to the Department of Defense and 
     shall be used to defray expenditures attendant to the 
     operation of the United States military Civic Action Team in 
     Palau. Funds so credited and merged shall be available for 
     the same time period as the appropriations to which the funds 
     are credited and merged.''.

     SEC. 1254. REPEAL OF REQUIREMENT RELATING TO NORTH KOREA.

       Section 1211 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364; 
     120 Stat. 2420) is amended by striking subsection (a).

     SEC. 1255. JUSTICE FOR OSAMA BIN LADEN AND OTHER LEADERS OF 
                   AL QAEDA.

       (a) Enhanced Reward for Capture of Osama Bin Laden.--
     Section 36(e)(1) of the State Department Basic Authorities 
     Act of 1956 (22 U.S.C. 2708(e)(1)) is amended by adding at 
     the end the following new sentence: ``The Secretary shall 
     authorize a reward of $50,000,000 for the capture or death or 
     information leading to the capture or death of Osama bin 
     Laden.''.
       (b) Status of Efforts To Bring Osama Bin Laden and Other 
     Leaders of Al Qaeda to Justice.--
       (1) Report required.--Not later than 90 days after the date 
     of the enactment of this Act, the Secretary of State and the 
     Secretary of Defense shall, in coordination with the Director 
     of National Intelligence, jointly submit to Congress a report 
     on the progress made in bringing Osama bin Laden and other 
     leaders of al Qaeda to justice.
       (2) Elements.--The report required under paragraph (1) 
     shall include the following:
       (A) An assessment of the likely current location of 
     terrorist leaders, including Osama bin Laden, Ayman al-
     Zawahiri, and other key leaders of al Qaeda.
       (B) A description of ongoing efforts to bring to justice 
     such terrorist leaders, particularly those who have been 
     directly implicated in attacks in the United States and its 
     embassies.
       (C) An assessment of whether the government of each country 
     assessed as a likely location of top leaders of al Qaeda has 
     fully cooperated in efforts to bring those leaders to 
     justice.
       (D) A description of diplomatic efforts currently being 
     made to improve the cooperation of the governments described 
     in subparagraph (C).
       (E) A description of the current status of the top 
     leadership of al Qaeda and the strategy for locating them and 
     bringing them to justice.
       (F) An assessment of whether al Qaeda remains the terrorist 
     organization that poses the greatest threat to United States 
     interests, including the greatest threat to the territorial 
     United States.
       (3) Update of report.--Not later than one year after the 
     submission of the report required under paragraph (1), the 
     Secretary of State and the Secretary of Defense shall, in 
     coordination with the Director of National Intelligence, 
     jointly submit to Congress an update of the report required 
     under paragraph (1).
       (4) Form.--The report required under paragraph (1) and the 
     update of the report required under paragraph (3) shall be 
     submitted in unclassified form, but may contain a classified 
     annex, if necessary.

     SEC. 1256. EXTENSION OF COUNTERPROLIFERATION PROGRAM REVIEW 
                   COMMITTEE.

       (a) Members.--Section 1605 of the National Defense 
     Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note) 
     is amended in subsection (a)(1)--

[[Page 32630]]

       (1) in subparagraph (C) by striking ``Director of Central 
     Intelligence'' and inserting ``Director of National 
     Intelligence''; and
       (2) by adding at the end the following:
       ``(E) The Secretary of State.
       ``(F) The Secretary of Homeland Security.''.
       (b) Access to Information.--Subsection (d) of such section 
     is amended by inserting after ``Department of Energy,'' the 
     following: ``the Department of State, the Department of 
     Homeland Security,''.
       (c) Termination.--Subsection (f) of such section is amended 
     by striking ``2008'' and inserting ``2013''.
       (d) Submission of Report.--Section 1503 of the National 
     Defense Authorization Act for Fiscal Year 1995 (22 U.S.C. 
     2751 note) is amended--
       (1) in subsection (a)--
       (A) by striking ``Annual'' and inserting ``Biennial''; and
       (B) by striking ``each year'' and inserting ``each odd-
     numbered year''; and
       (2) in subsection (b)(5)--
       (A) by striking ``fiscal year preceding'' and inserting 
     ``two fiscal years preceding''; and
       (B) by striking ``preceding fiscal year'' and inserting 
     ``preceding fiscal years''.

     SEC. 1257. SENSE OF CONGRESS ON THE WESTERN HEMISPHERE 
                   INSTITUTE FOR SECURITY COOPERATION.

       It is the sense of Congress that--
       (1) the education and training facility of the Department 
     of Defense known as the Western Hemisphere Institute for 
     Security Cooperation has the mission of providing 
     professional education and training to eligible military 
     personnel, law enforcement officials, and civilians of 
     nations of the Western Hemisphere that support the democratic 
     principles set forth in the Inter-American Democratic Charter 
     of the Organization of American States, while fostering 
     mutual knowledge, transparency, confidence, and cooperation 
     among the participating nations and promoting democratic 
     values and respect for human rights; and
       (2) therefore, the Institute is an invaluable education and 
     training facility which the Department of Defense should 
     continue to utilize in order to help foster a spirit of 
     partnership and interoperability among the United States 
     military and the militaries of participating nations.

     SEC. 1258. SENSE OF CONGRESS ON IRAN.

       It is the sense of Congress that--
       (1) the manner in which the United States transitions and 
     structures its military presence in Iraq will have critical 
     long-term consequences for the future of the Persian Gulf and 
     the Middle East, in particular with regard to the ability of 
     the Government of Iran to pose a threat to the security of 
     the region, the prospects for democracy for the people of the 
     region, and the health of the global economy;
       (2) it is in the national interest of the United States 
     that the Government of Iran should not use extremists in Iraq 
     to subvert or co-opt the institutions of the legitimate 
     Government of Iraq;
       (3) the United States should designate Iran's Islamic 
     Revolutionary Guards Corps as a foreign terrorist 
     organization under section 219 of the Immigration and 
     Nationality Act (8 U.S.C. 1189) and place the Islamic 
     Revolutionary Guards Corps on the list of Specially 
     Designated Global Terrorists, as established under the 
     International Emergency Economic Powers Act (50 U.S.C. 1701 
     et seq.) and initiated under Executive Order 13224 (September 
     23, 2001); and
       (4) the United States should act with all possible 
     expediency to complete the listing of those entities targeted 
     under United Nations Security Council Resolutions 1737 and 
     1747, adopted unanimously on December 23, 2006, and March 24, 
     2007, respectively.
                          Subtitle E--Reports

     SEC. 1261. ONE-YEAR EXTENSION OF UPDATE ON REPORT ON CLAIMS 
                   RELATING TO THE BOMBING OF THE LABELLE 
                   DISCOTHEQUE.

       Section 1225 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3465) is 
     amended--
       (1) in subsection (b)(2)--
       (A) in the heading, by striking ``Update'' and inserting 
     ``Updates''; and
       (B) by inserting ``and not later than two years after 
     enactment of this Act,'' after ``Not later than one year 
     after enactment of this Act,''; and
       (2) in subsection (c), by striking ``Committee on 
     International Relations'' and inserting ``Committee on 
     Foreign Affairs''.

     SEC. 1262. REPORT ON UNITED STATES POLICY TOWARD DARFUR, 
                   SUDAN.

       (a) Requirement for Report.--
       (1) In general.--Not later than 120 days after the date of 
     the enactment of this Act, the Secretary of Defense and the 
     Secretary of State shall jointly submit to the appropriate 
     congressional committees a report on the policy of the United 
     States to address the crisis in the Darfur region of Sudan, 
     eastern Chad, and north-eastern Central African Republic, and 
     on the contributions of the Department of Defense and the 
     Department of State to the North Atlantic Treaty Organization 
     (NATO), the United Nations, and the African Union in support 
     of the current African Union Mission in Sudan (AMIS) or any 
     covered United Nations mission.
       (2) Update of report.--Not later than 180 days after the 
     submission of the report required under paragraph (1), the 
     Secretary of Defense and the Secretary of State shall jointly 
     submit to the appropriate congressional committees an update 
     of the report.
       (b) Elements.--The report required under subsection (a) 
     shall include the following:
       (1) An assessment of the extent to which the Government of 
     Sudan is in compliance with its obligations under 
     international law and as a member of the United Nations, 
     including under United Nations Security Council Resolutions 
     1591 (2005), 1706 (2006), 1769 (2007), and 1784 (2007) and a 
     description of any violations of such obligations, including 
     violations relating to the denial of or delay in facilitating 
     access by AMIS and United Nations peacekeeping forces to 
     conflict areas, failure to implement responsibilities to 
     demobilize and disarm the Janjaweed militias, obstruction of 
     the voluntary safe return of internally displaced persons and 
     refugees, and degradation of security of and access to 
     humanitarian supply routes.
       (2) An assessment of the role played by rebel forces in 
     contributing to violence being carried out against civilians 
     and humanitarian organizations and of the impact of such 
     activities on international efforts to create conditions of 
     peace and security on the ground.
       (3) A comprehensive explanation of the policy of the United 
     States to address the crisis in the Darfur region, including 
     the activities undertaken by the Department of Defense and 
     the Department of State in support of that policy.
       (4) A comprehensive assessment of the potential impact of a 
     no-fly zone for the Darfur region, including an assessment of 
     the impact of such a no-fly zone on humanitarian efforts in 
     Darfur and the region and a plan to minimize any negative 
     impact on such humanitarian efforts during the implementation 
     of such a no-fly zone.
       (5) A description of contributions made by the Department 
     of Defense and the Department of State in support of NATO 
     assistance to AMIS and any covered United Nations mission.
       (6) An assessment of the extent to which additional United 
     States Government resources are necessary to meet its 
     obligations to AMIS and any covered United Nations mission.
       (7) An assessment of the force size and composition of an 
     international effort estimated to be necessary to provide 
     protection to civilian populations currently displaced in the 
     Darfur region, as well as the force size and composition of 
     an international effort estimated to be necessary to provide 
     broader stability within that region.
       (8) An examination of the current capacity of the existing 
     airfield in Abeche, Chad, including the scope of its current 
     use by the international community in response to the crisis 
     in the Darfur region.
       (9) An analysis of the upgrades, and their associated 
     costs, necessary to enable the airfield in Abeche, Chad, to 
     be improved to be fully capable of accommodating a 
     humanitarian, peacekeeping, or other force deployment of the 
     size foreseen by United Nations Security Council Resolution 
     1769 calling for a United Nations deployment to Chad and a 
     hybrid force of the United Nations and African Union 
     operating under Chapter VII of the United Nations Charter for 
     Sudan.
       (c) Form and Availability of Reports.--
       (1) Form.--The report and update of the report required 
     under subsection (a) shall be submitted in an unclassified 
     form, but may include a classified annex.
       (2) Availability.--The unclassified portion of the report 
     and update of the report required under subsection (a) shall 
     be made available to the public.
       (d) Repeal of Superseded Report Requirement.--Section 1227 
     of the John Warner National Defense Authorization Act for 
     Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2426) is 
     repealed.
       (e) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate 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 
     Foreign Affairs of the House of Representatives.
       (2) Covered united nations mission.--The term ``covered 
     United Nations mission'' means any United Nations-African 
     Union hybrid peacekeeping operation in the Darfur region of 
     Sudan, and any United Nations peacekeeping operation in the 
     Darfur region, eastern Chad, or northern Central African 
     Republic, that is deployed on or after the date of the 
     enactment of this Act.

     SEC. 1263. INCLUSION OF INFORMATION ON ASYMMETRIC 
                   CAPABILITIES IN ANNUAL REPORT ON MILITARY POWER 
                   OF THE PEOPLE'S REPUBLIC OF CHINA.

       Section 1202(b) of the National Defense Authorization Act 
     for Fiscal Year 2000 (Public Law 106-65; 10 U.S.C. 113 note) 
     is amended by adding at the end the following new paragraph:
       ``(9) Developments in China's asymmetric capabilities, 
     including efforts to acquire, develop, and deploy 
     cyberwarfare capabilities.''.

     SEC. 1264. REPORT ON APPLICATION OF THE UNIFORM CODE OF 
                   MILITARY JUSTICE TO CIVILIANS ACCOMPANYING THE 
                   ARMED FORCES DURING A TIME OF DECLARED WAR OR 
                   CONTINGENCY OPERATION.

       (a) Report Required.--Not later than 60 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 status of 
     implementing paragraph (10) of section 802(a) of title 10, 
     United States Code (article 2(a) of the Uniform Code of 
     Military Justice), as

[[Page 32631]]

     amended by section 552 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364), 
     related to the application of chapter 47 of such title (the 
     Uniform Code of Military Justice) to persons serving with or 
     accompanying an armed force in the field during a time of 
     declared war or contingency operation.
       (b) Contents of Report.--The report required by subsection 
     (a) shall include each of the following:
       (1) A discussion of how the Secretary has resolved issues 
     related to establishing jurisdiction under such chapter over 
     persons referred to in paragraph (10) of section 802(a) of 
     title 10, United States Code (article 2(a) of the Uniform 
     Code of Military Justice), specifically with respect to 
     persons under contract with the Department of Defense or with 
     other Federal agencies.
       (2) An identification of any outstanding issues that remain 
     to be resolved with respect to implementing such paragraph 
     and a timetable for resolving such issues.
       (3) A description of key implementing steps that have been 
     taken or remain to be taken to assert jurisdiction under 
     chapter 47 of such title over such persons.
       (4) An explanation of the Secretary's approach to 
     identifying factors that commanders should consider in 
     determining whether to seek prosecution of such a person 
     under such chapter or under chapter 212 of title 18, United 
     States Code.

     SEC. 1265. REPORT ON FAMILY REUNIONS BETWEEN UNITED STATES 
                   CITIZENS AND THEIR RELATIVES IN NORTH KOREA.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, the President shall 
     transmit to Congress a report on family reunions between 
     United States citizens and their relatives in the Democratic 
     People's Republic of Korea.
       (b) Elements.--The report under subsection (a) shall 
     include the following:
       (1) A description of the efforts, if any, of the United 
     States Government to facilitate family reunions between 
     United States citizens and their relatives in North Korea, 
     including the following:
       (A) Discussing with North Korea family reunions between 
     United States citizens and their relatives in North Korea.
       (B) Planning, in the event of a normalization of relations 
     between the United States and North Korea, for the 
     appropriate role of the United States embassy in Pyongyang, 
     North Korea, in facilitating family reunions between United 
     States citizens and their relatives in North Korea.
       (2) A description of additional efforts, if any, of the 
     United States Government to facilitate family reunions 
     between United States citizens and their relatives in North 
     Korea that the President considers to be desirable and 
     feasible.

     SEC. 1266. REPORTS ON PREVENTION OF MASS ATROCITIES.

       (a) Department of State Report.--
       (1) Report required.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of State 
     shall submit to the congressional defense committees, the 
     Committee on Foreign Relations of the Senate, and the 
     Committee on Foreign Affairs of the House of Representatives 
     a report assessing the capability of the Department of State 
     to provide training and guidance to the command of an 
     international intervention force that seeks to prevent mass 
     atrocities.
       (2) Content.--The report required under paragraph (1) shall 
     include the following:
       (A) An evaluation of any doctrine currently used by the 
     Secretary of State to prepare for the training and guidance 
     of the command of an international intervention force.
       (B) An assessment of the role played by the United States 
     in developing the ``responsibility to protect'' doctrine 
     described in paragraphs 138 through 140 of the outcome 
     document of the High-level Plenary Meeting of the General 
     Assembly adopted by the United Nations in September 2005, and 
     an update on actions taken by the United States Mission to 
     the United Nations to discuss, promote, and implement such 
     doctrine.
       (C) An assessment of the potential capability of the 
     Department of State and other Federal departments and 
     agencies to support the development of new doctrines for the 
     training and guidance of an international intervention force 
     in keeping with the ``responsibility to protect'' doctrine.
       (D) Recommendations as to the steps necessary to allow the 
     Secretary of State to provide more effective training and 
     guidance to an international intervention force.
       (b) Department of Defense Report.--
       (1) 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, the 
     Committee on Foreign Relations of the Senate, and the 
     Committee on Foreign Affairs of the House of Representatives 
     a report assessing the capability of the Department of 
     Defense to provide training and guidance to the command of an 
     international intervention force that seeks to prevent mass 
     atrocities.
       (2) Content.--The report required under paragraph (1) shall 
     include the following:
       (A) An evaluation of any doctrine currently used by the 
     Secretary of Defense to prepare for the training and guidance 
     of the command of an international intervention force.
       (B) An assessment of the potential capability of the 
     Department of Defense and other Federal departments and 
     agencies to support the development of new doctrines for the 
     training and guidance of an international intervention force 
     in keeping with the ``responsibility to protect'' doctrine.
       (C) Recommendations as to the steps necessary to allow the 
     Secretary of Defense to provide more effective training and 
     guidance to an international intervention force.
       (D) A summary of any assessments or studies of the 
     Department of Defense or other Federal departments or 
     agencies relating to ``Operation Artemis'', the 2004 French 
     military deployment and intervention in the eastern region of 
     the Democratic Republic of Congo to protect civilians from 
     local warring factions.
       (c) International Intervention Force.--For the purposes of 
     this section, ``international intervention force'' means a 
     military force that--
       (1) is authorized by the United Nations; and
       (2) has a mission that is narrowly focused on the 
     protection of civilian life and the prevention of mass 
     atrocities such as genocide.

     SEC. 1267. REPORT ON THREATS TO THE UNITED STATES FROM 
                   UNGOVERNED AREAS.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of Defense 
     and the Secretary of State, in coordination with the Director 
     of National Intelligence, shall jointly submit to the 
     specified congressional committees a report on the threats 
     posed to the United States from ungoverned areas, including 
     the threats to the United States from terrorist groups and 
     individuals located in such areas who direct their activities 
     against the national security interests of the United States 
     and its allies.
       (b) Elements.--The report required under subsection (a) 
     shall include the following:
       (1) A description of those areas the United States 
     Government considers ungoverned, including--
       (A) a description of the geo-political and cultural 
     influences exerted within such areas and by whom;
       (B) a description of the economic conditions and prospects 
     and the major social dynamics of such areas; and
       (C) a description of the United States Government's 
     relationships with entities located in such areas, including 
     with relevant national or other governments and relevant 
     tribal or other groups.
       (2) A description of the capabilities required by the 
     United States Government to support United States policy 
     aimed at managing the threats described in subsection (a), 
     including, specifically, the technical, linguistic, and 
     analytical capabilities required by the Department of Defense 
     and the Department of State.
       (3) An assessment of the extent to which the Department of 
     Defense and the Department of State possess the capabilities 
     described in paragraph (2) as well as the necessary resources 
     and organization to support United States policy aimed at 
     managing the threats described in subsection (a).
       (4) A description of the extent to which the implementation 
     of Department of Defense Directive 3000.05, entitled 
     ``Military Support for Stability, Security, Transition, and 
     Reconstruction Operations'', will support United States 
     policy for managing such threats.
       (5) A description of the actions, if any, to be taken to 
     improve the capabilities of the Department of Defense and the 
     Department of State described in paragraph (2), and the 
     schedule for implementing any actions so described.
       (c) Form.--The report required under subsection (a) shall 
     be submitted in unclassified form, to the maximum extent 
     practicable, but may contain a classified annex, if 
     necessary.
       (d) Definition.--In this section, the term ``specified 
     congressional committees'' means--
       (1) the Committee on Armed Services, the Committee on 
     Foreign Relations, and the Committee on Appropriations of the 
     Senate; and
       (2) the Committee on Armed Services, the Committee on 
     Foreign Affairs, and the Committee on Appropriations of the 
     House of Representatives.
  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. Specification of Cooperative Threat Reduction programs in 
              states outside the former Soviet Union.
Sec. 1304. Repeal of restrictions on assistance to states of the former 
              Soviet Union for Cooperative Threat Reduction.
Sec. 1305. Modification of authority to use Cooperative Threat 
              Reduction funds outside the former Soviet Union.
Sec. 1306. New initiatives for the Cooperative Threat Reduction 
              Program.
Sec. 1307. Report relating to chemical weapons destruction at 
              Shchuch'ye, Russia.
Sec. 1308. 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 Cooperative Threat Reduction 
     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 (50 U.S.C. 2362 note), 
     as amended by section 1303 of this Act.
       (b) Fiscal Year 2008 Cooperative Threat Reduction Funds 
     Defined.--As used in this

[[Page 32632]]

     title, the term ``fiscal year 2008 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 $428,048,000 
     authorized to be appropriated to the Department of Defense 
     for fiscal year 2008 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, 
     $92,885,000.
       (2) For nuclear weapons storage security in Russia, 
     $47,640,000.
       (3) For nuclear weapons transportation security in Russia, 
     $37,700,000.
       (4) For weapons of mass destruction proliferation 
     prevention in the states of the former Soviet Union, 
     $47,986,000.
       (5) For biological weapons proliferation prevention in the 
     former Soviet Union, $158,489,000.
       (6) For chemical weapons destruction, $6,000,000.
       (7) For defense and military contacts, $8,000,000.
       (8) For new Cooperative Threat Reduction initiatives that 
     are outside the former Soviet Union, $10,000,000.
       (9) For activities designated as Other Assessments/
     Administrative Support, $19,348,000.
       (b) Report on Obligation or Expenditure of Funds for Other 
     Purposes.--No fiscal year 2008 Cooperative Threat Reduction 
     funds may be obligated or expended for a purpose other than a 
     purpose listed in paragraphs (1) through (9) 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 2008 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 paragraph (2), in any case in 
     which the Secretary of Defense determines that it is 
     necessary to do so in the national interest, the Secretary 
     may obligate amounts appropriated for fiscal year 2008 for a 
     purpose listed in paragraphs (1) through (9) of 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 paragraphs (1) through (9) of subsection 
     (a) in excess of the specific amount authorized for such 
     purpose may be made using the authority provided in paragraph 
     (1) only after--
       (A) the Secretary submits to Congress notification of the 
     intent to do so together with a complete discussion of the 
     justification for doing so; and
       (B) 15 days have elapsed following the date of the 
     notification.

     SEC. 1303. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 
                   PROGRAMS IN STATES OUTSIDE THE FORMER SOVIET 
                   UNION.

       Section 1501 of the National Defense Authorization Act for 
     Fiscal Year 1997 (50 U.S.C. 2362 note) is amended--
       (1) in subsection (a), by striking ``subsection (b)'' and 
     inserting ``subsections (b) and (c)''; and
       (2) by adding at the end the following new subsection:
       ``(c) Specified Programs With Respect to States Outside the 
     Former Soviet Union.--The programs referred to in subsection 
     (a) are the following programs with respect to states that 
     are not states of the former Soviet Union:
       ``(1) Programs to facilitate the elimination, and the safe 
     and secure transportation and storage, of chemical or 
     biological weapons, weapons components, weapons-related 
     materials, and their delivery vehicles.
       ``(2) Programs to facilitate safe and secure transportation 
     and storage of nuclear weapons, weapons components, and their 
     delivery vehicles.
       ``(3) Programs to prevent the proliferation of nuclear and 
     chemical weapons, weapons components, and weapons-related 
     military technology and expertise.
       ``(4) Programs to prevent the proliferation of biological 
     weapons, weapons components, and weapons-related military 
     technology and expertise, which may include activities that 
     facilitate detection and reporting of highly pathogenic 
     diseases or other diseases that are associated with or that 
     could be utilized as an early warning mechanism for disease 
     outbreaks that could impact the Armed Forces of the United 
     States or allies of the United States.
       ``(5) Programs to expand military-to-military and defense 
     contacts.''.

     SEC. 1304. REPEAL OF RESTRICTIONS ON ASSISTANCE TO STATES OF 
                   THE FORMER SOVIET UNION FOR COOPERATIVE THREAT 
                   REDUCTION.

       (a) In General.--
       (1) Soviet nuclear threat reduction act of 1991.--The 
     Soviet Nuclear Threat Reduction Act of 1991 (title II of 
     Public Law 102-228; 22 U.S.C. 2551 note) is amended--
       (A) by striking section 211; and
       (B) in section 212, by striking ``, consistent with the 
     findings stated in section 211,''.
       (2) Cooperative threat reduction act of 1993.--Section 1203 
     of the Cooperative Threat Reduction Act of 1993 (22 U.S.C. 
     5952) is amended by striking subsection (d).
       (3) Russian chemical weapons destruction facilities.--
     Section 1305 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65; 22 U.S.C. 5952 note) is 
     repealed.
       (4) Conforming repeal.--Section 1303 of the Ronald W. 
     Reagan National Defense Authorization Act for Fiscal Year 
     2005 (Public Law 108-375; 22 U.S.C. 5952 note) is repealed.
       (b) Inapplicability of Other Restrictions.--Section 502 of 
     the Freedom for Russia and Emerging Eurasian Democracies and 
     Open Markets Support Act of 1992 (22 U.S.C. 5852) shall not 
     apply to any Cooperative Threat Reduction program.

     SEC. 1305. MODIFICATION OF AUTHORITY TO USE COOPERATIVE 
                   THREAT REDUCTION FUNDS OUTSIDE THE FORMER 
                   SOVIET UNION.

       Section 1308 of the National Defense Authorization Act for 
     Fiscal Year 2004 (22 U.S.C. 5963) is amended--
       (1) in subsection (a), by striking ``Subject to'' and all 
     that follows through ``the following:'' and inserting 
     ``Subject to the provisions of this section, the Secretary of 
     Defense may obligate and expend Cooperative Threat Reduction 
     funds for a fiscal year, and any Cooperative Threat Reduction 
     funds for a fiscal year before such fiscal year that remain 
     available for obligation, for a proliferation threat 
     reduction project or activity outside the states of the 
     former Soviet Union if the Secretary of Defense, with the 
     concurrence of the Secretary of State, determines each of the 
     following:'';
       (2) by striking subsection (c) and redesignating 
     subsections (d) and (e) as (c) and (d), respectively; and
       (3) by amending subsection (c) (as so redesignated) to read 
     as follows:
       ``(c) Limitation on Availability of Funds.--
       ``(1) The Secretary of Defense may not obligate funds for a 
     project or activity under the authority in subsection (a) of 
     this section until the Secretary of Defense, with the 
     concurrence of the Secretary of State, makes each 
     determination specified in that subsection with respect to 
     such project or activity.
       ``(2) Not later than 10 days after obligating funds under 
     the authority in subsection (a) of this section for a project 
     or activity, the Secretary of Defense and the Secretary of 
     State shall notify Congress in writing of the determinations 
     made under paragraph (1) with respect to such project or 
     activity, together with--
       ``(A) a justification for such determinations; and
       ``(B) a description of the scope and duration of such 
     project or activity.''.

     SEC. 1306. NEW INITIATIVES FOR THE COOPERATIVE THREAT 
                   REDUCTION PROGRAM.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) the Department of Defense Cooperative Threat Reduction 
     (CTR) Program should be strengthened and expanded, in part by 
     developing new CTR initiatives;
       (2) such new initiatives should--
       (A) be well-coordinated with the Department of Energy, the 
     Department of State, and any other relevant United States 
     Government agency or department;
       (B) include appropriate transparency and accountability 
     mechanisms, and legal frameworks and agreements between the 
     United States and CTR partner countries;
       (C) reflect engagement with non-governmental experts on 
     possible new options for the CTR Program;
       (D) include work with the Russian Federation and other 
     countries to establish strong CTR partnerships that, among 
     other things--
       (i) increase the role of scientists and government 
     officials of CTR partner countries in designing CTR programs 
     and projects; and
       (ii) increase financial contributions and additional 
     commitments to CTR programs and projects from Russia and 
     other partner countries, as appropriate, as evidence that the 
     programs and projects reflect national priorities and will be 
     sustainable;
       (E) include broader international cooperation and 
     partnerships, and increased international contributions;
       (F) incorporate a strong focus on national programs and 
     sustainability, which includes actions to address concerns 
     raised and recommendations made by the Government 
     Accountability Office, in its report of February 2007 titled 
     ``Progress Made in Improving Security at Russian Nuclear 
     Sites, but the Long-Term Sustainability of U.S. Funded 
     Security Upgrades is Uncertain'', which pertain to the 
     Department of Defense;
       (G) continue to focus on the development of CTR programs 
     and projects that secure nuclear weapons; secure and 
     eliminate chemical and biological weapons and weapons-related 
     materials; and eliminate nuclear, chemical, and biological 
     weapons-related delivery vehicles and infrastructure at the 
     source; and
       (H) include efforts to develop new CTR programs and 
     projects in Russia and the former Soviet Union, and in 
     countries and regions outside the former Soviet Union, as 
     appropriate and in the interest of United States national 
     security; and
       (3) such new initiatives could include--
       (A) programs and projects in Asia and the Middle East; and
       (B) activities relating to the denuclearization of the 
     Democratic People's Republic of Korea.

[[Page 32633]]

       (b) National Academy of Sciences Study.--
       (1) Study.--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 analyze 
     options for strengthening and expanding the CTR Program.
       (2) Matters to be included in study.--The Secretary shall 
     provide for the study under paragraph (1) to include--
       (A) an assessment of new CTR initiatives described in 
     subsection (a); and
       (B) an identification of options and recommendations for 
     strengthening and expanding the CTR Program.
       (3) Submission of national academy of sciences report.--The 
     National Academy of Sciences shall submit to Congress a 
     report on the study under this subsection at the same time 
     that such report is submitted to the Secretary of Defense 
     pursuant to subsection (c).
       (c) Secretary of Defense Report.--
       (1) In general.--Not later than 90 days after receipt of 
     the report under subsection (b), the Secretary of Defense 
     shall submit to Congress a report on new CTR initiatives. The 
     report shall include--
       (A) a summary of the results of the study carried out under 
     subsection (b);
       (B) an assessment by the Secretary of the study; and
       (C) a statement of the actions, if any, to be undertaken by 
     the Secretary to implement any recommendations in the study.
       (2) Form.--The report shall be in unclassified form but may 
     include a classified annex if necessary.
       (d) Funding.--Of the amounts appropriated pursuant to the 
     authorization of appropriations in section 301(19) or 
     otherwise made available for Cooperative Threat Reduction 
     programs for fiscal year 2008, not more than $1,000,000 shall 
     be obligated or expended to carry out this section.

     SEC. 1307. REPORT RELATING TO CHEMICAL WEAPONS DESTRUCTION AT 
                   SHCHUCH'YE, RUSSIA.

       (a) Definition.--In this section, the terms ``Shchuch'ye 
     project'' and ``project'' mean the Cooperative Threat 
     Reduction Program chemical weapons destruction project 
     located in the area of Shchuch'ye in the Russian Federation.
       (b) Report Required.--Not later than 90 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 Shchuch'ye project. The report shall include--
       (1) a current and detailed cost estimate for completion of 
     the project, to include costs that will be borne by the 
     United States and Russia, respectively; and
       (2) a specific strategic and operating plan for completion 
     of the project, which includes--
       (A) the Department's plans to ensure robust project 
     management and oversight, including management and oversight 
     with respect to the performance of any contractors;
       (B) project quality assurance and sustainability measures;
       (C) metrics for measuring project progress with a timetable 
     for achieving goals, including initial systems integration 
     and start-up testing; and
       (D) a projected project completion date.

     SEC. 1308. 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 cooperation with states other than states 
     of the former Soviet Union under the Cooperative Threat 
     Reduction Program of the Department of Defense in the 
     prevention of proliferation of biological weapons.
       (b) Matters To Be Included in Study.--The Secretary shall 
     provide for the study under subsection (a) to include the 
     following:
       (1) An assessment of the capabilities and capacity of 
     governments of developing countries to control the 
     containment and use of dual-use technologies of potential 
     interest to terrorist organizations or individuals with 
     hostile intentions.
       (2) An assessment of the approaches to cooperative threat 
     reduction used by the states of the former Soviet Union that 
     are of special relevance in preventing the proliferation of 
     biological weapons in other areas of the world.
       (3) A brief review of programs of the United States 
     Government and other governments, international 
     organizations, foundations, and other private sector entities 
     that may contribute to the prevention of the proliferation of 
     biological weapons.
       (4) Recommendations on steps for integrating activities of 
     the Cooperative Threat Reduction Program relating to 
     biological weapons proliferation prevention with activities 
     of other departments and agencies of the United States, as 
     appropriate, in states outside of the former Soviet Union.
       (c) Submission of National Academy of Sciences Report.--The 
     National Academy of Sciences shall submit to Congress a 
     report on the study under subsection (a) at the same time 
     that such report is submitted to the Secretary of Defense 
     pursuant to subsection (d).
       (d) Secretary of Defense Report.--
       (1) In general.--Not later than 90 days after receipt of 
     the report required by subsection (a), the Secretary shall 
     submit to the Congress a report on the study carried out 
     under subsection (a).
       (2) Matters to be included.--The report under paragraph (1) 
     shall include the following:
       (A) A summary of the results of the study carried out under 
     subsection (a).
       (B) An assessment by the Secretary of the study.
       (C) A statement of the actions, if any, to be undertaken by 
     the Secretary to implement any recommendations in the study.
       (3) Form.--The report under paragraph (1) shall be 
     submitted in unclassified form, but may include a classified 
     annex.
       (e) Funding.--Of the amounts appropriated pursuant to the 
     authorization of appropriations in section 301(19) or 
     otherwise made available for Cooperative Threat Reduction 
     programs for fiscal year 2008, not more than $1,000,000 may 
     be obligated or expended to carry out this section.
                    TITLE XIV--OTHER AUTHORIZATIONS

                     Subtitle A--Military Programs

Sec. 1401. Working capital funds.
Sec. 1402. National Defense Sealift Fund.
Sec. 1403. Defense Health Program.
Sec. 1404. Chemical agents and munitions destruction, Defense.
Sec. 1405. Drug Interdiction and Counter-Drug Activities, Defense-wide.
Sec. 1406. Defense Inspector General.

                 Subtitle B--National Defense Stockpile

Sec. 1411. Authorized uses of National Defense Stockpile funds.
Sec. 1412. Revisions to required receipt objectives for previously 
              authorized disposals from the National Defense Stockpile.
Sec. 1413. Disposal of ferromanganese.
Sec. 1414. Disposal of chrome metal.

                Subtitle C--Armed Forces Retirement Home

Sec. 1421. Authorization of appropriations for Armed Forces Retirement 
              Home.
Sec. 1422. Administration and oversight of the Armed Forces Retirement 
              Home.
                     Subtitle A--Military Programs

     SEC. 1401. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2008 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, $102,446,000.
       (2) For the Defense Working Capital Fund, Defense 
     Commissary, $1,250,300,000.

     SEC. 1402. NATIONAL DEFENSE SEALIFT FUND.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2008 for the National Defense Sealift Fund in the amount 
     of $1,349,094,000.

     SEC. 1403. DEFENSE HEALTH PROGRAM.

       Funds are hereby authorized to be appropriated for the 
     Department of Defense for fiscal year 2008 for expenses, not 
     otherwise provided for, for the Defense Health Program, in 
     the amount of $23,080,384,000, of which--
       (1) $22,583,641,000 is for Operation and Maintenance;
       (2) $134,482,000 is for Research, Development, Test, and 
     Evaluation; and
       (3) $362,261,000 is for Procurement.

     SEC. 1404. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, 
                   DEFENSE.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for the Department of Defense 
     for fiscal year 2008 for expenses, not otherwise provided 
     for, for Chemical Agents and Munitions Destruction, Defense, 
     in the amount of $1,512,724,000, of which--
       (1) $1,181,500,000 is for Operation and Maintenance;
       (2) $312,800,000 is for Research, Development, Test, and 
     Evaluation; and
       (3) $18,424,000 is for Procurement.
       (b) Use.--Amounts authorized to be appropriated under 
     subsection (a) are authorized for--
       (1) the destruction of lethal chemical agents and munitions 
     in accordance with section 1412 of the Department of Defense 
     Authorization Act, 1986 (50 U.S.C. 1521); and
       (2) the destruction of chemical warfare materiel of the 
     United States that is not covered by section 1412 of such 
     Act.

     SEC. 1405. DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, 
                   DEFENSE-WIDE.

       Funds are hereby authorized to be appropriated for the 
     Department of Defense for fiscal year 2008 for expenses, not 
     otherwise provided for, for Drug Interdiction and Counter-
     Drug Activities, Defense-wide, in the amount of $938,022,000.

     SEC. 1406. DEFENSE INSPECTOR GENERAL.

       Funds are hereby authorized to be appropriated for the 
     Department of Defense for fiscal year 2008 for expenses, not 
     otherwise provided for, for the Office of the Inspector 
     General of the Department of Defense, in the amount of 
     $225,995,000, of which--
       (1) $224,995,000 is for Operation and Maintenance; and
       (2) $1,000,000 is for Procurement.
                 Subtitle B--National Defense Stockpile

     SEC. 1411. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE 
                   FUNDS.

       (a) Obligation of Stockpile Funds.--During fiscal year 
     2008, the National Defense Stockpile Manager may obligate up 
     to $44,825,000 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

[[Page 32634]]

     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. 1412. REVISIONS TO REQUIRED RECEIPT OBJECTIVES FOR 
                   PREVIOUSLY AUTHORIZED DISPOSALS FROM THE 
                   NATIONAL DEFENSE STOCKPILE.

       (a) Fiscal Year 2000 Disposal Authority.--Section 3402(b) 
     of the National Defense Authorization Act for Fiscal Year 
     2000 (50 U.S.C. 98d note), as amended by section 3302 of the 
     National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136; 117 Stat. 1788) and section 3302 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163; 119 Stat. 3545), is amended by striking 
     ``$600,000,000 before'' in paragraph (5) and inserting 
     ``$710,000,000 by''.
       (b) 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), section 3302 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163; 
     119 Stat. 3545), and section 3302(a) of the John Warner 
     National Defense Authorization Act for Fiscal Year 2007 
     (Public Law 109-364; 120 Stat. 2513), is amended by striking 
     ``$1,016,000,000 by the end of fiscal year 2014'' in 
     paragraph (7) and inserting ``$1,066,000,000 by the end of 
     fiscal year 2015''.

     SEC. 1413. DISPOSAL OF FERROMANGANESE.

       (a) Disposal Authorized.--The Secretary of Defense may 
     dispose of up to 50,000 tons of ferromanganese from the 
     National Defense Stockpile during fiscal year 2008.
       (b) Contingent Authority for Additional Disposal.--
       (1) In general.--If the Secretary of Defense enters into a 
     contract for the disposal of the total quantity of 
     ferromanganese authorized for disposal by subsection (a) 
     before September 30, 2008, the Secretary of Defense may 
     dispose of up to an additional 25,000 tons of ferromanganese 
     from the National Defense Stockpile before that date.
       (2) Additional amounts.--If the Secretary enters into a 
     contract for the disposal of the total quantity of additional 
     ferromanganese authorized for disposal by paragraph (1) 
     before September 30, 2008, the Secretary may dispose of up to 
     an additional 25,000 tons of ferromanganese from the National 
     Defense Stockpile before that date.
       (c) Certification.--The Secretary of Defense may dispose of 
     ferromanganese under the authority of paragraph (1) or (2) of 
     subsection (b) only if the Secretary submits to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives, written 
     certification that--
       (1) the disposal of the additional ferromanganese from the 
     National Defense Stockpile under such paragraph is in the 
     interest of national defense;
       (2) the disposal of the additional ferromanganese under 
     such paragraph will not cause disruption to the usual markets 
     of producers and processors of ferromanganese in the United 
     States; and
       (3) the disposal of the additional ferromanganese under 
     such paragraph is consistent with the requirements and 
     purpose of the National Defense Stockpile.
       (d) National Defense Stockpile Defined.--In this section, 
     the term ``National Defense Stockpile'' means the stockpile 
     provided for in section 4 of the Strategic and Critical 
     Materials Stock Piling Act (50 U.S.C. 98c).

     SEC. 1414. DISPOSAL OF CHROME METAL.

       (a) Disposal Authorized.--The Secretary of Defense may 
     dispose of up to 500 short tons of chrome metal from the 
     National Defense Stockpile during fiscal year 2008.
       (b) Contingent Authority for Additional Disposal.--
       (1) In general.--If the Secretary of Defense completes the 
     disposal of the total quantity of chrome metal authorized for 
     disposal by subsection (a) before September 30, 2008, the 
     Secretary of Defense may dispose of up to an additional 250 
     short tons of chrome metal from the National Defense 
     Stockpile before that date.
       (2) Additional amounts.--If the Secretary completes the 
     disposal of the total quantity of additional chrome metal 
     authorized for disposal by paragraph (1) before September 30, 
     2008, the Secretary may dispose of up to an additional 250 
     short tons of chrome metal from the National Defense 
     Stockpile before that date.
       (c) Certification.--The Secretary of Defense may dispose of 
     chrome metal under the authority of paragraph (1) or (2) of 
     subsection (b) only if the Secretary submits to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives, not later than 30 
     days before the commencement of disposal under the applicable 
     paragraph, written certification that--
       (1) the disposal of the additional chrome metal from the 
     National Defense Stockpile is in the interest of national 
     defense;
       (2) the disposal of the additional chrome metal will not 
     cause disruption to the usual markets of producers and 
     processors of chrome metal in the United States; and
       (3) the disposal of the additional chrome metal is 
     consistent with the requirements and purpose of the National 
     Defense Stockpile.
       (d) National Defense Stockpile Defined.--In this section, 
     the term ``National Defense Stockpile'' means the stockpile 
     provided for in section 4 of the Strategic and Critical 
     Materials Stock Piling Act (50 U.S.C. 98c).
                Subtitle C--Armed Forces Retirement Home

     SEC. 1421. AUTHORIZATION OF APPROPRIATIONS FOR ARMED FORCES 
                   RETIREMENT HOME.

       There is authorized to be appropriated for fiscal year 2008 
     from the Armed Forces Retirement Home Trust Fund the sum of 
     $61,624,000 for the operation of the Armed Forces Retirement 
     Home.

     SEC. 1422. ADMINISTRATION AND OVERSIGHT OF THE ARMED FORCES 
                   RETIREMENT HOME.

       (a) Role of Secretary of Defense.--Section 1511 of the 
     Armed Forces Retirement Home Act of 1991 (24 U.S.C. 411) is 
     amended--
       (1) in subsection (d), by adding at the end the following 
     new paragraph:
       ``(3) The administration of the Retirement Home (including 
     administration for the provision of health care and medical 
     care for residents) shall remain under the direct authority, 
     control, and administration of the Secretary of Defense.''; 
     and
       (2) in subsection (h), by adding at the end the following 
     new sentence: ``The annual report shall include an assessment 
     of all aspects of each facility of the Retirement Home, 
     including the quality of care at the facility.''.
       (b) Accreditation.--Subsection (g) of section 1511 of the 
     Armed Forces Retirement Home Act of 1991 (24 U.S.C. 411) is 
     amended to read as follows:
       ``(g) Accreditation.--The Chief Operating Officer shall 
     secure and maintain accreditation by a nationally recognized 
     civilian accrediting organization for each aspect of each 
     facility of the Retirement Home, including medical and dental 
     care, pharmacy, independent living, and assisted living and 
     nursing care.''.
       (c) Spectrum of Care.--Section 1513(b) of the Armed Forces 
     Retirement Home Act of 1991 (24 U.S.C. 413(b)) is amended by 
     inserting after the first sentence the following new 
     sentence: ``The services provided residents of the Retirement 
     Home shall include appropriate nonacute medical and dental 
     services, pharmaceutical services, and transportation of 
     residents, which shall be provided at no cost to 
     residents.''.
       (d) Senior Medical Advisor for Retirement Home.--
       (1) Designation and duties of senior medical advisor.--The 
     Armed Forces Retirement Home Act of 1991 is amended by 
     inserting after section 1513 (24 U.S.C. 413) the following 
     new section:

     ``SEC. 1513A. IMPROVED HEALTH CARE OVERSIGHT OF RETIREMENT 
                   HOME.

       ``(a) Designation of Senior Medical Advisor.--(1) The 
     Secretary of Defense shall designate the Deputy Director of 
     the TRICARE Management Activity to serve as the Senior 
     Medical Advisor for the Retirement Home.
       ``(2) The Deputy Director of the TRICARE Management 
     Activity shall serve as Senior Medical Advisor for the 
     Retirement Home in addition to performing all other duties 
     and responsibilities assigned to the Deputy Director of the 
     TRICARE Management Activity at the time of the designation 
     under paragraph (1) or afterward.
       ``(b) Responsibilities.--(1) The Senior Medical Advisor 
     shall provide advice to the Secretary of Defense, the Under 
     Secretary of Defense for Personnel and Readiness, and the 
     Chief Operating Officer regarding the direction and oversight 
     of the provision of medical, preventive mental health, and 
     dental care services at each facility of the Retirement Home.
       ``(2) The Senior Medical Advisor shall also provide advice 
     to the Local Board for a facility of the Retirement Home 
     regarding all medical and medical administrative matters of 
     the facility.
       ``(c) Duties.--In carrying out the responsibilities set 
     forth in subsection (b), the Senior Medical Advisor shall 
     perform the following duties:
       ``(1) Ensure the timely availability to residents of the 
     Retirement Home, at locations other than the Retirement Home, 
     of such acute medical, mental health, and dental care as such 
     resident may require that is not available at the applicable 
     facility of the Retirement Home.
       ``(2) Ensure compliance by the facilities of the Retirement 
     Home with accreditation standards, applicable health care 
     standards of the Department of Veterans Affairs, or any other 
     applicable health care standards and requirements (including 
     requirements identified in applicable reports of the 
     Inspector General of the Department of Defense).
       ``(3) Periodically visit and inspect the medical facilities 
     and medical operations of each facility of the Retirement 
     Home.
       ``(4) Periodically examine and audit the medical records 
     and administration of the Retirement Home.
       ``(5) Consult with the Local Board for each facility of the 
     Retirement Home not less frequently than once each year.
       ``(d) Advisory Bodies.--In carrying out the 
     responsibilities set forth in subsection (b) and the duties 
     set forth in subsection (c), the Senior

[[Page 32635]]

     Medical Advisor may establish and seek the advice of such 
     advisory bodies as the Senior Medical Advisor considers 
     appropriate.''.
       (2) Clerical amendment.--The table of contents in section 
     1501(b) of the Armed Forces Retirement Home Act of 1991 (24 
     U.S.C. 401 note) is amended by inserting after the item 
     relating to section 1513 the following new item:

``1513A. Improved health care oversight of Retirement Home.''.
       (e) Local Boards of Trustees.--
       (1) Duties.--Subsection (b) of section 1516 of the Armed 
     Forces Retirement Home Act of 1991 (24 U.S.C. 416) is amended 
     to read as follows:
       ``(b) Duties.--(1) The Local Board for a facility shall 
     serve in an advisory capacity to the Director of the facility 
     and to the Chief Operating Officer.
       ``(2) The Local Board for a facility shall provide to the 
     Chief Operating Officer and the Director of the facility such 
     guidance and recommendations on the administration of the 
     facility as the Local Board considers appropriate.
       ``(3) Not less often than annually, the Local Board for a 
     facility shall provide to the Under Secretary of Defense for 
     Personnel and Readiness an assessment of all aspects of the 
     facility, including the quality of care at the facility.''.
       (2) Composition.--Subparagraph (K) of subsection (c) of 
     such section is amended to read as follows:
       ``(K) One senior representative of one of the chief 
     personnel officers of the Armed Forces, who shall be a 
     commissioned officer of the Armed Forces serving on active 
     duty in the grade of brigadier general, or in the case of the 
     Navy or Coast Guard, rear admiral (lower half).''.
       (f) Inspection of Retirement Home.--Section 1518 of the 
     Armed Forces Retirement Home Act of 1991 (24 U.S.C. 418) is 
     amended to read as follows:

     ``SEC. 1518. INSPECTION OF RETIREMENT HOME.

       ``(a) Duty of Inspector General of the Department of 
     Defense.--The Inspector General of the Department of Defense 
     shall have the duty to inspect the Retirement Home.
       ``(b) Inspections by Inspector General.--(1) In any year in 
     which a facility of the Retirement Home is not inspected by a 
     nationally recognized civilian accrediting organization, the 
     Inspector General of the Department of Defense shall perform 
     a comprehensive inspection of all aspects of that facility, 
     including independent living, assisted living, medical and 
     dental care, pharmacy, financial and contracting records, and 
     any aspect of either facility on which the Local Board for 
     the facility or the resident advisory committee or council of 
     the facility recommends inspection.
       ``(2) The Inspector General shall be assisted in 
     inspections under this subsection by a medical inspector 
     general of a military department designated for purposes of 
     this subsection by the Secretary of Defense.
       ``(3) In conducting the inspection of a facility of the 
     Retirement Home under this subsection, the Inspector General 
     shall solicit concerns, observations, and recommendations 
     from the Local Board for the facility, the resident advisory 
     committee or council of the facility, and the residents of 
     the facility. Any concerns, observations, and recommendations 
     solicited from residents shall be solicited on a not-for-
     attribution basis.
       ``(4) The Chief Operating Officer and the Director of each 
     facility of the Retirement Home shall make all staff, other 
     personnel, and records of each facility available to the 
     Inspector General in a timely manner for purposes of 
     inspections under this subsection.
       ``(c) Reports on Inspections by Inspector General.--(1) The 
     Inspector General shall prepare a report describing the 
     results of each inspection conducted of a facility of the 
     Retirement Home under subsection (b), and include in the 
     report such recommendations as the Inspector General 
     considers appropriate in light of the inspection. Not later 
     than 45 days after completing the inspection of the facility, 
     the Inspector General shall submit the report to Congress and 
     the Secretary of Defense, the Under Secretary of Defense for 
     Personnel and Readiness, the Chief Operating Officer, the 
     Director of the facility, the Senior Medical Advisor, and the 
     Local Board for the facility.
       ``(2) Not later than 45 days after receiving a report of 
     the Inspector General under paragraph (1), the Director of 
     the facility concerned shall submit the Secretary of Defense, 
     the Under Secretary of Defense for Personnel and Readiness, 
     the Chief Operating Officer, and the Local Board for the 
     facility, and to Congress, a plan to address the 
     recommendations and other matters set forth in the report.
       ``(d) Additional Inspections.--(1) The Chief Operating 
     Officer shall request the inspection of each facility of the 
     Retirement Home by a nationally recognized civilian 
     accrediting organization in accordance with section 1511(g).
       ``(2) The Chief Operating Officer and the Director of a 
     facility being inspected under this subsection shall make all 
     staff, other personnel, and records of the facility available 
     to the civilian accrediting organization in a timely manner 
     for purposes of inspections under this subsection.
       ``(e) Reports on Additional Inspections.--(1) Not later 
     than 45 days after receiving a report of an inspection from 
     the civilian accrediting organization under subsection (d), 
     the Director of the facility concerned shall submit to the 
     Under Secretary of Defense for Personnel and Readiness, the 
     Chief Operating Officer, and the Local Board for the facility 
     a report containing--
       ``(A) the results of the inspection; and
       ``(B) a plan to address any recommendations and other 
     matters set forth in the report.
       ``(2) Not later than 45 days after receiving a report and 
     plan under paragraph (1), the Secretary of Defense shall 
     submit the report and plan to Congress.''.
       (g) Armed Forces Retirement Home Trust Fund.--Section 1519 
     of the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 
     419) is amended by adding at the end the following new 
     subsection:
       ``(d) Reporting Requirements.--The Chief Financial Officer 
     of the Armed Forces Retirement Home shall comply with the 
     reporting requirements of subchapter II of chapter 35 of 
     title 31, United States Code.''.
  TITLE XV--AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR 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. Joint Improvised Explosive Device Defeat Fund.
Sec. 1506. Defense-wide activities procurement.
Sec. 1507. Research, development, test, and evaluation.
Sec. 1508. Operation and maintenance.
Sec. 1509. Working capital funds.
Sec. 1510. Other Department of Defense programs.
Sec. 1511. Iraq Freedom Fund.
Sec. 1512. Iraq Security Forces Fund.
Sec. 1513. Afghanistan Security Forces Fund.
Sec. 1514. Military personnel.
Sec. 1515. Strategic Readiness Fund.
Sec. 1516. Treatment as additional authorizations.
Sec. 1517. Special transfer authority.

     SEC. 1501. PURPOSE.

       The purpose of this title is to authorize appropriations 
     for the Department of Defense for fiscal year 2008 to provide 
     additional funds for Operation Iraqi Freedom and Operation 
     Enduring Freedom.

     SEC. 1502. ARMY PROCUREMENT.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2008 for procurement accounts of the Army in amounts as 
     follows:
       (1) For aircraft procurement, $2,086,864,000.
       (2) For ammunition procurement, $513,600,000.
       (3) For weapons and tracked combat vehicles procurement, 
     $7,289,697,000.
       (4) For missile procurement, $641,764,000.
       (5) For other procurement, $32,478,568,000.

     SEC. 1503. NAVY AND MARINE CORPS PROCUREMENT.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 2008 for procurement accounts for the Navy in 
     amounts as follows:
       (1) For aircraft procurement, $3,908,458,000.
       (2) For weapons procurement, $318,281,000.
       (3) For other procurement, $1,870,597,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 2008 for the procurement account 
     for the Marine Corps in the amount of $5,519,740,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for fiscal year 2008 for the 
     procurement account for ammunition for the Navy and the 
     Marine Corps in the amount of $609,890,000.

     SEC. 1504. AIR FORCE PROCUREMENT.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2008 for procurement accounts for the Air Force in 
     amounts as follows:
       (1) For aircraft procurement, $5,828,239,000.
       (2) For ammunition procurement, $104,405,000.
       (3) For missile procurement, $1,800,000.
       (4) For other procurement, $4,528,126,000.

     SEC. 1505. JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized for fiscal year 2008 for the Joint Improvised 
     Explosive Device Defeat Fund in the amount of $4,541,000,000.
       (b) Use and Transfer of Funds.--Subsections (b) and (c) of 
     section 1514 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364; 
     120 Stat. 2439) shall apply to the funds appropriated 
     pursuant to the authorization of appropriations in subsection 
     (a).
       (c) Revision of Management Plan.--The Secretary of Defense 
     shall revise the management plan required by section 1514(d) 
     of the John Warner National Defense Authorization Act for 
     Fiscal Year 2007 to identify projected transfers and 
     obligations through September 30, 2008.
       (d) Duration of Authority.--Section 1514(f) of the John 
     Warner National Defense Authorization Act for Fiscal Year 
     2007 is amended by striking ``September 30, 2009'' and 
     inserting ``September 30, 2010''.

     SEC. 1506. DEFENSE-WIDE ACTIVITIES PROCUREMENT.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2008 for the procurement account for Defense-wide in the 
     amount of $768,157,000.

     SEC. 1507. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2008 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $183,299,000.
       (2) For the Navy, $695,996,000.
       (3) For the Air Force, $1,457,710,000.
       (4) For Defense-wide activities, $1,320,088,000.

[[Page 32636]]



     SEC. 1508. OPERATION AND MAINTENANCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2008 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, $54,929,551,000.
       (2) For the Navy, $6,249,793,000.
       (3) For the Marine Corps, $4,674,688,000.
       (4) For the Air Force, $10,798,473,000.
       (5) For Defense-wide activities, $6,424,085,000.
       (6) For the Army Reserve, $196,694,000.
       (7) For the Navy Reserve, $83,407,000.
       (8) For the Marine Corps Reserve, $68,193,000.
       (9) For the Army National Guard, $757,008,000.
       (10) For the Air Force Reserve, $24,266,000.
       (11) For the Air National Guard, $103,267,000.

     SEC. 1509. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2008 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, $1,957,675,000.
       (2) For the National Defense Sealift Fund, $5,110,000.

     SEC. 1510. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

       (a) Defense Health Program.--Funds are hereby authorized to 
     be appropriated for the Department of Defense for fiscal year 
     2008 for expenses, not otherwise provided for, for the 
     Defense Health Program in the amount of $1,137,442,000 for 
     operation and maintenance.
       (b) Drug Interdiction and Counter-Drug Activities, Defense-
     Wide.--Funds are hereby authorized to be appropriated for the 
     Department of Defense for fiscal year 2008 for expenses, not 
     otherwise provided for, for Drug Interdiction and Counter-
     Drug Activities, Defense-wide in the amount of $257,618,000.
       (c) Defense Inspector General.--Funds are hereby authorized 
     to be appropriated for the Department of Defense for fiscal 
     year 2008 for expenses, not otherwise provided for, for the 
     Office of the Inspector General of the Department of Defense 
     in the amount of $4,394,000 for operation and maintenance.

     SEC. 1511. IRAQ FREEDOM FUND.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal year 2008 for the Iraq Freedom Fund 
     in the amount of $207,500,000.
       (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. 1512. IRAQ SECURITY FORCES FUND.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal year 2008 for the 
     Iraq Security Forces Fund in the amount of $3,000,000,000.
       (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, 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 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) 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) Notice to Congress.--Funds may not be obligated from 
     the Iraq Security Forces Fund, or transferred under the 
     authority provided in subsection (d)(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.
       (f) Contributions.--
       (1) Authority to accept contributions.--Subject to 
     paragraph (2), the Secretary of Defense may accept 
     contributions of amounts to the Iraq Security Forces Fund for 
     the purposes provided in subsection (b) from any person, 
     foreign government, or international organization. Any 
     amounts so accepted shall be credited to the Iraq Security 
     Forces Fund.
       (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) Use.--Amounts accepted under this subsection shall be 
     available for assistance authorized by subsection (b), 
     including transfer under subsection (d) for that purpose.
       (4) Notification.--The Secretary shall notify the 
     congressional defense committees, the Committee on Foreign 
     Relations of the Senate, and the Committee on Foreign Affairs 
     of the House of Representatives, in writing, upon the 
     acceptance, and upon the transfer under subsection (d), of 
     any contribution under this subsection. Such notice shall 
     specify the source and amount of any amount so accepted and 
     the use of any amount so accepted.
       (g) Quarterly Reports.--Not later than 30 days after the 
     end of each fiscal-year quarter, the Secretary of Defense 
     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 such fiscal-
     year quarter.
       (h) Duration of Authority.--Amounts authorized to be 
     appropriated or contributed to the Iraq Security Forces Fund 
     during fiscal year 2008 are available for obligation or 
     transfer from the Iraq Security Forces Fund in accordance 
     with this section until September 30, 2009.

     SEC. 1513. AFGHANISTAN SECURITY FORCES FUND.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal year 2008 for the 
     Afghanistan Security Forces Fund in the amount of 
     $2,700,000,000.
       (b) Use of Funds.--
       (1) In general.--Funds authorized to be appropriated by 
     subsection (a) shall be available to the Secretary of Defense 
     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, construction, and funds.
       (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.
       (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 fund.--Upon a determination that all 
     or part of the funds transferred from the Afghanistan 
     Security Forces Fund under paragraph (1) are not necessary 
     for the purpose for which transferred, such funds may be 
     transferred back to the Afghanistan Security Forces Fund.
       (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.

[[Page 32637]]

       (e) Prior Notice to Congress of Obligation or Transfer.--
     Funds may not be obligated from the Afghanistan Security 
     Forces Fund, or transferred under subsection (d)(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.
       (f) Contributions.--
       (1) Authority to accept contributions.--Subject to 
     paragraph (2), the Secretary of Defense may accept 
     contributions of amounts to the Afghanistan Security Forces 
     Fund for the purposes provided in subsection (b) from any 
     person, foreign government, or international organization. 
     Any amounts so accepted shall be credited to the Afghanistan 
     Security Forces Fund.
       (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) Use.--Amounts accepted under this subsection shall be 
     available for assistance authorized by subsection (b), 
     including transfer under subsection (d) for that purpose.
       (4) Notification.--The Secretary shall notify the 
     congressional defense committees, the Committee on Foreign 
     Relations of the Senate, and the Committee on Foreign Affairs 
     of the House of Representatives, in writing, upon the 
     acceptance, and upon the transfer under subsection (d), of 
     any contribution under this subsection. Such notice shall 
     specify the source and amount of any amount so accepted and 
     the use of any amount so accepted.
       (g) Quarterly Reports.--Not later than 30 days after the 
     end of each fiscal-year quarter, the Secretary of Defense 
     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 such 
     fiscal-year quarter.
       (h) Duration of Authority.--Amounts authorized to be 
     appropriated or contributed to the Afghanistan Security 
     Forces Fund during fiscal year 2008 are available for 
     obligation or transfer from the Afghanistan Security Forces 
     Fund in accordance with this section until September 30, 
     2009.

     SEC. 1514. MILITARY PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel accounts for 
     fiscal year 2008 a total of $17,912,510,000.

     SEC. 1515. STRATEGIC READINESS FUND.

       There is authorized to be appropriated $1,000,000,000 to 
     the Strategic Readiness Fund.

     SEC. 1516. 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. 1517. SPECIAL 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 2008 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 $3,500,000,000.
       (b) Terms and Conditions.--Transfers under this section 
     shall be subject to the same terms and conditions as 
     transfers under section 1001.
       (c) Additional Authority.--The transfer authority provided 
     by this section is in addition to the transfer authority 
     provided under section 1001.
                   TITLE XVI--WOUNDED WARRIOR MATTERS
Sec. 1601. Short title.
Sec. 1602. General definitions.
Sec. 1603. Consideration of gender-specific needs of recovering service 
              members and veterans.

Subtitle A--Policy on Improvements to Care, Management, and Transition 
                     of Recovering Service Members

Sec. 1611. Comprehensive policy on improvements to care, management, 
              and transition of recovering service members.
Sec. 1612. Medical evaluations and physical disability evaluations of 
              recovering service members.
Sec. 1613. Return of recovering service members to active duty in the 
              Armed Forces.
Sec. 1614. Transition of recovering service members from care and 
              treatment through the Department of Defense to care, 
              treatment, and rehabilitation through the Department of 
              Veterans Affairs.
Sec. 1615. Reports.
Sec. 1616. Establishment of a wounded warrior resource center.
Sec. 1617. Notification to Congress of hospitalization of combat 
              wounded service members.
Sec. 1618. Comprehensive plan on prevention, diagnosis, mitigation, 
              treatment, and rehabilitation of, and research on, 
              traumatic brain injury, post-traumatic stress disorder, 
              and other mental health conditions in members of the 
              Armed Forces.

    Subtitle B--Centers of Excellence in the Prevention, Diagnosis, 
 Mitigation, Treatment, and Rehabilitation of Traumatic Brain Injury, 
            Post-Traumatic Stress Disorder, and Eye Injuries

Sec. 1621. Center of excellence in the prevention, diagnosis, 
              mitigation, treatment, and rehabilitation of traumatic 
              brain injury.
Sec. 1622. Center of excellence in prevention, diagnosis, mitigation, 
              treatment, and rehabilitation of post-traumatic stress 
              disorder and other mental health conditions.
Sec. 1623. Center of excellence in prevention, diagnosis, mitigation, 
              treatment, and rehabilitation of military eye injuries.
Sec. 1624. Report on establishment of centers of excellence.

                    Subtitle C--Health Care Matters

Sec. 1631. Medical care and other benefits for members and former 
              members of the Armed Forces with severe injuries or 
              illnesses.
Sec. 1632. Reimbursement of travel expenses of retired members with 
              combat-related disabilities for follow-on specialty care, 
              services, and supplies.
Sec. 1633. Respite care and other extended care benefits for members of 
              the uniformed services who incur a serious injury or 
              illness on active duty.
Sec. 1634. Reports.
Sec. 1635. Fully interoperable electronic personal health information 
              for the Department of Defense and Department of Veterans 
              Affairs.
Sec. 1636. Enhanced personnel authorities for the Department of Defense 
              for health care professionals for care and treatment of 
              wounded and injured members of the Armed Forces.
Sec. 1637. Continuation of transitional health benefits for members of 
              the Armed Forces pending resolution of service-related 
              medical conditions.

                     Subtitle D--Disability Matters

Sec. 1641. Utilization of veterans' presumption of sound condition in 
              establishing eligibility of members of the Armed Forces 
              for retirement for disability.
Sec. 1642. Requirements and limitations on Department of Defense 
              determinations of disability with respect to members of 
              the Armed Forces.
Sec. 1643. Review of separation of members of the Armed Forces 
              separated from service with a disability rating of 20 
              percent disabled or less.
Sec. 1644. Authorization of pilot programs to improve the disability 
              evaluation system for members of the Armed Forces.
Sec. 1645. Reports on Army action plan in response to deficiencies in 
              the Army physical disability evaluation system.
Sec. 1646. Enhancement of disability severance pay for members of the 
              Armed Forces.
Sec. 1647. Assessments of continuing utility and future role of 
              temporary disability retired list.
Sec. 1648. Standards for military medical treatment facilities, 
              specialty medical care facilities, and military quarters 
              housing patients and annual report on such facilities.
Sec. 1649. Reports on Army Medical Action Plan in response to 
              deficiencies identified at Walter Reed Army Medical 
              Center, District of Columbia.
Sec. 1650. Required certifications in connection with closure of Walter 
              Reed Army Medical Center, District of Columbia.
Sec. 1651. Handbook for members of the Armed Forces on compensation and 
              benefits available for serious injuries and illnesses.

                    Subtitle E--Studies and Reports

Sec. 1661. Study on physical and mental health and other readjustment 
              needs of members and former members of the Armed Forces 
              who deployed in Operation Iraqi Freedom and Operation 
              Enduring Freedom and their families.
Sec. 1662. Access of recovering service members to adequate outpatient 
              residential facilities.
Sec. 1663. Study and report on support services for families of 
              recovering service members.
Sec. 1664. Report on traumatic brain injury classifications.
Sec. 1665. Evaluation of the Polytrauma Liaison Officer/Non-
              Commissioned Officer program.

                       Subtitle F--Other Matters

Sec. 1671. Prohibition on transfer of resources from medical care.
Sec. 1672. Medical care for families of members of the Armed Forces 
              recovering from serious injuries or illnesses.
Sec. 1673. Improvement of medical tracking system for members of the 
              Armed Forces deployed overseas.

[[Page 32638]]

Sec. 1674. Guaranteed funding for Walter Reed Army Medical Center, 
              District of Columbia.
Sec. 1675. Use of leave transfer program by wounded veterans who are 
              Federal employees.
Sec. 1676. Moratorium on conversion to contractor performance of 
              Department of Defense functions at military medical 
              facilities.

     SEC. 1601. SHORT TITLE.

       This title may be cited as the ``Wounded Warrior Act''.

     SEC. 1602. GENERAL DEFINITIONS.

       In this title:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committees on Armed Services, Veterans' Affairs, 
     and Appropriations of the Senate; and
       (B) the Committees on Armed Services, Veterans' Affairs, 
     and Appropriations of the House of Representatives.
       (2) Benefits delivery at discharge program.--The term 
     ``Benefits Delivery at Discharge Program'' means a program 
     administered jointly by the Secretary of Defense and the 
     Secretary of Veterans Affairs to provide information and 
     assistance on available benefits and other transition 
     assistance to members of the Armed Forces who are separating 
     from the Armed Forces, including assistance to obtain any 
     disability benefits for which such members may be eligible.
       (3) Disability evaluation system.--The term ``Disability 
     Evaluation System'' means the following:
       (A) A system or process of the Department of Defense for 
     evaluating the nature and extent of disabilities affecting 
     members of the Armed Forces that is operated by the 
     Secretaries of the military departments and is comprised of 
     medical evaluation boards, physical evaluation boards, 
     counseling of members, and mechanisms for the final 
     disposition of disability evaluations by appropriate 
     personnel.
       (B) A system or process of the Coast Guard for evaluating 
     the nature and extent of disabilities affecting members of 
     the Coast Guard that is operated by the Secretary of Homeland 
     Security and is similar to the system or process of the 
     Department of Defense described in subparagraph (A).
       (4) Eligible family member.--The term ``eligible family 
     member'', with respect to a recovering service member, means 
     a family member (as defined in section 411 h(b) of title 37, 
     United States Code) who is on invitational travel orders or 
     serving as a non-medical attendee while caring for the 
     recovering service member for more than 45 days during a one-
     year period.
       (5) Medical care.--The term ``medical care'' includes 
     mental health care.
       (6) Outpatient status.--The term ``outpatient status'', 
     with respect to a recovering service member, means the status 
     of a recovering service member assigned to--
       (A) a military medical treatment facility as an outpatient; 
     or
       (B) a unit established for the purpose of providing command 
     and control of members of the Armed Forces receiving medical 
     care as outpatients.
       (7) Recovering service member.--The term ``recovering 
     service member'' means a member of the Armed Forces, 
     including a member of the National Guard or a Reserve, who is 
     undergoing medical treatment, recuperation, or therapy and is 
     in an outpatient status while recovering from a serious 
     injury or illness related to the member's military service.
       (8) Serious injury or illness.--The term ``serious injury 
     or illness'', in the case of a member of the Armed Forces, 
     means an injury or illness incurred by the member in line of 
     duty on active duty in the Armed Forces that may render the 
     member medically unfit to perform the duties of the member's 
     office, grade, rank, or rating.
       (9) TRICARE program.--The term ``TRICARE program'' has the 
     meaning given that term in section 1072(7) of title 10, 
     United States Code.

     SEC. 1603. CONSIDERATION OF GENDER-SPECIFIC NEEDS OF 
                   RECOVERING SERVICE MEMBERS AND VETERANS.

       (a) In General.--In developing and implementing the policy 
     required by section 1611(a), and in otherwise carrying out 
     any other provision of this title or any amendment made by 
     this title, the Secretary of Defense and the Secretary of 
     Veterans Affairs shall take into account and fully address 
     any unique gender-specific needs of recovering service 
     members and veterans under such policy or other provision.
       (b) Reports.--In submitting any report required by this 
     title or an amendment made by this title, the Secretary of 
     Defense and the Secretary of Veterans Affairs shall, to the 
     extent applicable, include a description of the manner in 
     which the matters covered by such report address the unique 
     gender-specific needs of recovering service members and 
     veterans.
Subtitle A--Policy on Improvements to Care, Management, and Transition 
                     of Recovering Service Members

     SEC. 1611. COMPREHENSIVE POLICY ON IMPROVEMENTS TO CARE, 
                   MANAGEMENT, AND TRANSITION OF RECOVERING 
                   SERVICE MEMBERS.

       (a) Comprehensive Policy Required.--
       (1) In general.--Not later than July 1, 2008, the Secretary 
     of Defense and the Secretary of Veterans Affairs shall, to 
     the extent feasible, jointly develop and implement a 
     comprehensive policy on improvements to the care, management, 
     and transition of recovering service members.
       (2) Scope of policy.--The policy shall cover each of the 
     following:
       (A) The care and management of recovering service members.
       (B) The medical evaluation and disability evaluation of 
     recovering service members.
       (C) The return of service members who have recovered to 
     active duty when appropriate.
       (D) The transition of recovering service members from 
     receipt of care and services through the Department of 
     Defense to receipt of care and services through the 
     Department of Veterans Affairs.
       (3) Consultation.--The Secretary of Defense and the 
     Secretary of Veterans Affairs shall develop the policy in 
     consultation with the heads of other appropriate departments 
     and agencies of the Federal Government and with appropriate 
     non-governmental organizations having an expertise in matters 
     relating to the policy.
       (4) Update.--The Secretary of Defense and the Secretary of 
     Veterans Affairs shall jointly update the policy on a 
     periodic basis, but not less often than annually, in order to 
     incorporate in the policy, as appropriate, the following:
       (A) The results of the reviews required under subsections 
     (b) and (c).
       (B) Best practices identified through pilot programs 
     carried out under this title.
       (C) Improvements to matters under the policy otherwise 
     identified and agreed upon by the Secretary of Defense and 
     the Secretary of Veterans Affairs.
       (b) Review of Current Policies and Procedures.--
       (1) Review required.--In developing the policy required by 
     subsection (a), the Secretary of Defense and the Secretary of 
     Veterans Affairs shall, to the extent necessary, jointly and 
     separately conduct a review of all policies and procedures of 
     the Department of Defense and the Department of Veterans 
     Affairs that apply to, or shall be covered by, the policy.
       (2) Purpose.--The purpose of the review shall be to 
     identify the most effective and patient-oriented approaches 
     to care and management of recovering service members for 
     purposes of--
       (A) incorporating such approaches into the policy; and
       (B) extending such approaches, where applicable, to the 
     care and management of other injured or ill members of the 
     Armed Forces and veterans.
       (3) Elements.--In conducting the review, the Secretary of 
     Defense and the Secretary of Veterans Affairs shall--
       (A) identify among the policies and procedures described in 
     paragraph (1) best practices in approaches to the care and 
     management of recovering service members;
       (B) identify among such policies and procedures existing 
     and potential shortfalls in the care and management of 
     recovering service members (including care and management of 
     recovering service members on the temporary disability 
     retired list), and determine means of addressing any 
     shortfalls so identified;
       (C) determine potential modifications of such policies and 
     procedures in order to ensure consistency and uniformity, 
     where appropriate, in the application of such policies and 
     procedures--
       (i) among the military departments;
       (ii) among the Veterans Integrated Services Networks 
     (VISNs) of the Department of Veterans Affairs; and
       (iii) between the military departments and the Veterans 
     Integrated Services Networks; and
       (D) develop recommendations for legislative and 
     administrative action necessary to implement the results of 
     the review.
       (4) Deadline for completion.--The review shall be completed 
     not later than 90 days after the date of the enactment of 
     this Act.
       (c) Consideration of Existing Findings, Recommendations, 
     and Practices.--In developing the policy required by 
     subsection (a), the Secretary of Defense and the Secretary of 
     Veterans Affairs shall take into account the following:
       (1) The findings and recommendations of applicable studies, 
     reviews, reports, and evaluations that address matters 
     relating to the policy, including, but not limited, to the 
     following:
       (A) The Independent Review Group on Rehabilitative Care and 
     Administrative Processes at Walter Reed Army Medical Center 
     and National Naval Medical Center, appointed by the Secretary 
     of Defense.
       (B) The Secretary of Veterans Affairs Task Force on 
     Returning Global War on Terror Heroes, appointed by the 
     President.
       (C) The President's Commission on Care for America's 
     Returning Wounded Warriors.
       (D) The Veterans' Disability Benefits Commission 
     established by title XV of the National Defense Authorization 
     Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1676; 
     38 U.S.C. 1101 note).
       (E) The President's Task Force to Improve Health Care 
     Delivery for Our Nation's Veterans, of March 2003.
       (F) The Report of the Congressional Commission on 
     Servicemembers and Veterans Transition Assistance, of 1999, 
     chaired by Anthony J. Principi.
       (G) The President's Commission on Veterans' Pensions, of 
     1956, chaired by General Omar N. Bradley.
       (2) The experience and best practices of the Department of 
     Defense and the military departments on matters relating to 
     the policy.
       (3) The experience and best practices of the Department of 
     Veterans Affairs on matters relating to the policy.

[[Page 32639]]

       (4) Such other matters as the Secretary of Defense and the 
     Secretary of Veterans Affairs consider appropriate.
       (d) Training and Skills of Health Care Professionals, 
     Recovery Care Coordinators, Medical Care Case Managers, and 
     Non-Medical Care Managers for Recovering Service Members.--
       (1) In general.--The policy required by subsection (a) 
     shall provide for uniform standards among the military 
     departments for the training and skills of health care 
     professionals, recovery care coordinators, medical care case 
     managers, and non-medical care managers for recovering 
     service members under subsection (e) in order to ensure that 
     such personnel are able to--
       (A) detect early warning signs of post-traumatic stress 
     disorder (PTSD), suicidal or homicidal thoughts or behaviors, 
     and other behavioral health concerns among recovering service 
     members; and
       (B) promptly notify appropriate health care professionals 
     following detection of such signs.
       (2) Tracking of notifications.--In providing for uniform 
     standards under paragraph (1), the policy shall include a 
     mechanism or system to track the number of notifications made 
     by recovery care coordinators, medical care case managers, 
     and non-medical care managers to health care professionals 
     under paragraph (1)(A) regarding early warning signs of post-
     traumatic stress disorder and suicide in recovering service 
     members.
       (e) Services for Recovering Service Members.--The policy 
     required by subsection (a) shall provide for improvements as 
     follows with respect to the care, management, and transition 
     of recovering service members:
       (1) Comprehensive recovery plan for recovering service 
     members.--The policy shall provide for uniform standards and 
     procedures for the development of a comprehensive recovery 
     plan for each recovering service member that covers the full 
     spectrum of care, management, transition, and rehabilitation 
     of the service member during recovery.
       (2) Recovery care coordinators for recovering service 
     members.--
       (A) In general.--The policy shall provide for a uniform 
     program for the assignment to recovering service members of 
     recovery care coordinators having the duties specified in 
     subparagraph (B).
       (B) Duties.--The duties under the program of a recovery 
     care coordinator for a recovering service member shall 
     include, but not be limited to, overseeing and assisting the 
     service member in the service member's course through the 
     entire spectrum of care, management, transition, and 
     rehabilitation services available from the Federal 
     Government, including services provided by the Department of 
     Defense, the Department of Veterans Affairs, the Department 
     of Labor, and the Social Security Administration.
       (C) Limitation on number of service members managed by 
     coordinators.--The maximum number of recovering service 
     members whose cases may be assigned to a recovery care 
     coordinator under the program at any one time shall be such 
     number as the policy shall specify, except that the Secretary 
     of the military department concerned may waive such 
     limitation with respect to a given coordinator for not more 
     than 120 days in the event of unforeseen circumstances (as 
     specified in the policy).
       (D) Training.--The policy shall specify standard training 
     requirements and curricula for recovery care coordinators 
     under the program, including a requirement for successful 
     completion of the training program before a person may assume 
     the duties of such a coordinator.
       (E) Resources.--The policy shall include mechanisms to 
     ensure that recovery care coordinators under the program have 
     the resources necessary to expeditiously carry out the duties 
     of such coordinators under the program.
       (F) Supervision.--The policy shall specify requirements for 
     the appropriate rank or grade, and appropriate occupation, 
     for persons appointed to head and supervise recovery care 
     coordinators.
       (3) Medical care case managers for recovering service 
     members.--
       (A) In general.--The policy shall provide for a uniform 
     program among the military departments for the assignment to 
     recovering service members of medical care case managers 
     having the duties specified in subparagraph (B).
       (B) Duties.--The duties under the program of a medical care 
     case manager for a recovering service member (or the service 
     member's immediate family or other designee if the service 
     member is incapable of making judgments about personal 
     medical care) shall include, at a minimum, the following:
       (i) Assisting in understanding the service member's medical 
     status during the care, recovery, and transition of the 
     service member.
       (ii) Assisting in the receipt by the service member of 
     prescribed medical care during the care, recovery, and 
     transition of the service member.
       (iii) Conducting a periodic review of the medical status of 
     the service member, which review shall be conducted, to the 
     extent practicable, in person with the service member, or, 
     whenever the conduct of the review in person is not 
     practicable, with the medical care case manager submitting to 
     the manager's supervisor a written explanation why the review 
     in person was not practicable (if the Secretary of the 
     military department concerned elects to require such written 
     explanations for purposes of the program).
       (C) Limitation on number of service members managed by 
     managers.--The maximum number of recovering service members 
     whose cases may be assigned to a medical care case manager 
     under the program at any one time shall be such number as the 
     policy shall specify, except that the Secretary of the 
     military department concerned may waive such limitation with 
     respect to a given manager for not more than 120 days in the 
     event of unforeseen circumstances (as specified in the 
     policy).
       (D) Training.--The policy shall specify standard training 
     requirements and curricula for medical care case managers 
     under the program, including a requirement for successful 
     completion of the training program before a person may assume 
     the duties of such a manager.
       (E) Resources.--The policy shall include mechanisms to 
     ensure that medical care case managers under the program have 
     the resources necessary to expeditiously carry out the duties 
     of such managers under the program.
       (F) Supervision at armed forces medical facilities.--The 
     policy shall specify requirements for the appropriate rank or 
     grade, and appropriate occupation, for persons appointed to 
     head and supervise the medical care case managers at each 
     medical facility of the Armed Forces. Persons so appointed 
     may be appointed from the Army Medical Corps, Army Medical 
     Service Corps, Army Nurse Corps, Navy Medical Corps, Navy 
     Medical Service Corps, Navy Nurse Corps, Air Force Medical 
     Service, or other corps or civilian health care professional, 
     as applicable, at the discretion of the Secretary of Defense.
       (4) Non-medical care managers for recovering service 
     members.--
       (A) In general.--The policy shall provide for a uniform 
     program among the military departments for the assignment to 
     recovering service members of non-medical care managers 
     having the duties specified in subparagraph (B).
       (B) Duties.--The duties under the program of a non-medical 
     care manager for a recovering service member shall include, 
     at a minimum, the following:
       (i) Communicating with the service member and with the 
     service member's family or other individuals designated by 
     the service member regarding non-medical matters that arise 
     during the care, recovery, and transition of the service 
     member.
       (ii) Assisting with oversight of the service member's 
     welfare and quality of life
       (iii) Assisting the service member in resolving problems 
     involving financial, administrative, personnel, transitional, 
     and other matters that arise during the care, recovery, and 
     transition of the service member.
       (C) Duration of duties.--The policy shall provide that a 
     non-medical care manager shall perform duties under the 
     program for a recovering service member until the service 
     member is returned to active duty or retired or separated 
     from the Armed Forces.
       (D) Limitation on number of service members managed by 
     managers.--The maximum number of recovering service members 
     whose cases may be assigned to a non-medical care manager 
     under the program at any one time shall be such number as the 
     policy shall specify, except that the Secretary of the 
     military department concerned may waive such limitation with 
     respect to a given manager for not more than 120 days in the 
     event of unforeseen circumstances (as specified in the 
     policy).
       (E) Training.--The policy shall specify standard training 
     requirements and curricula among the military departments for 
     non-medical care managers under the program, including a 
     requirement for successful completion of the training program 
     before a person may assume the duties of such a manager.
       (F) Resources.--The policy shall include mechanisms to 
     ensure that non-medical care managers under the program have 
     the resources necessary to expeditiously carry out the duties 
     of such managers under the program.
       (G) Supervision at armed forces medical facilities.--The 
     policy shall specify requirements for the appropriate rank 
     and occupational speciality for persons appointed to head and 
     supervise the non-medical care managers at each medical 
     facility of the Armed Forces.
       (5) Access of recovering service members to non-urgent 
     health care from the department of defense or other providers 
     under tricare.--
       (A) In general.--The policy shall provide for appropriate 
     minimum standards for access of recovering service members to 
     non-urgent medical care and other health care services as 
     follows:
       (i) In medical facilities of the Department of Defense.
       (ii) Through the TRICARE program.
       (B) Maximum waiting times for certain care.--The standards 
     for access under subparagraph (A) shall include such 
     standards on maximum waiting times of recovering service 
     members as the policy shall specify for care that includes, 
     but is not limited to, the following:
       (i) Follow-up care
       (ii) Specialty care.
       (iii) Diagnostic referrals and studies.
       (iv) Surgery based on a physician's determination of 
     medical necessity.
       (C) Waiver by recovering service members.--The policy shall 
     permit any recovering service member to waive a standard for 
     access under this paragraph under such circumstances and 
     conditions as the policy shall specify.
       (6) Assignment of recovering service members to locations 
     of care.--
       (A) In general.--The policy shall provide for uniform 
     guidelines among the military departments for the assignment 
     of recovering service members to a location of care, 
     including guidelines that provide for the assignment of 
     recovering service members, when medically appropriate, to 
     care and residential facilities closest to

[[Page 32640]]

     their duty station or home of record or the location of their 
     designated care giver at the earliest possible time.
       (B) Reassignment from deficient facilities.--The policy 
     shall provide for uniform guidelines and procedures among the 
     military departments for the reassignment of recovering 
     service members from a medical or medical-related support 
     facility determined by the Secretary of Defense to violate 
     the standards required by section 1648 to another appropriate 
     medical or medical-related support facility until the 
     correction of violations of such standards at the medical or 
     medical-related support facility from which such service 
     members are reassigned.
       (7) Transportation and subsistence for recovering service 
     members.--The policy shall provide for uniform standards 
     among the military departments on the availability of 
     appropriate transportation and subsistence for recovering 
     service members to facilitate their obtaining needed medical 
     care and services.
       (8) Work and duty assignments for recovering service 
     members.--The policy shall provide for uniform criteria among 
     the military departments for the assignment of recovering 
     service members to work and duty assignments that are 
     compatible with their medical conditions.
       (9) Access of recovering service members to educational and 
     vocational training and rehabilitation.--The policy shall 
     provide for uniform standards among the military departments 
     on the provision of educational and vocational training and 
     rehabilitation opportunities for recovering service members 
     at the earliest possible point in their recovery.
       (10) Tracking of recovering service members.--The policy 
     shall provide for uniform procedures among the military 
     departments on tracking recovering service members to 
     facilitate--
       (A) locating each recovering service member; and
       (B) tracking medical care appointments of recovering 
     service members to ensure timeliness and compliance of 
     recovering service members with appointments, and other 
     physical and evaluation timelines, and to provide any other 
     information needed to conduct oversight of the care, 
     management, and transition of recovering service members.
       (11) Referrals of recovering service members to other care 
     and services providers.--The policy shall provide for uniform 
     policies, procedures, and criteria among the military 
     departments on the referral of recovering service members to 
     the Department of Veterans Affairs and other private and 
     public entities (including universities and rehabilitation 
     hospitals, centers, and clinics) in order to secure the most 
     appropriate care for recovering service members, which 
     policies, procedures, and criteria shall take into account, 
     but not be limited to, the medical needs of recovering 
     service members and the geographic location of available 
     necessary recovery care services.
       (f) Services for Families of Recovering Service Members.--
     The policy required by subsection (a) shall provide for 
     improvements as follows with respect to services for families 
     of recovering service members:
       (1) Support for family members of recovering service 
     members.--The policy shall provide for uniform guidelines 
     among the military departments on the provision by the 
     military departments of support for family members of 
     recovering service members who are not otherwise eligible for 
     care under section 1672 in caring for such service members 
     during their recovery.
       (2) Advice and training for family members of recovering 
     service members.--The policy shall provide for uniform 
     requirements and standards among the military departments on 
     the provision by the military departments of advice and 
     training, as appropriate, to family members of recovering 
     service members with respect to care for such service members 
     during their recovery.
       (3) Measurement of satisfaction of family members of 
     recovering service members with quality of health care 
     services.--The policy shall provide for uniform procedures 
     among the military departments on the measurement of the 
     satisfaction of family members of recovering service members 
     with the quality of health care services provided to such 
     service members during their recovery.
       (4) Job placement services for family members of recovering 
     service members.--The policy shall provide for procedures for 
     application by eligible family members during a one-year 
     period for job placement services otherwise offered by the 
     Department of Defense.
       (g) Outreach to Recovering Service Members and Their 
     Families on Comprehensive Policy.--The policy required by 
     subsection (a) shall include procedures and mechanisms to 
     ensure that recovering service members and their families are 
     fully informed of the policies required by this section, 
     including policies on medical care for recovering service 
     members, on the management and transition of recovering 
     service members, and on the responsibilities of recovering 
     service members and their family members throughout the 
     continuum of care and services for recovering service members 
     under this section.
       (h) Applicability of Comprehensive Policy to Recovering 
     Service Members on Temporary Disability Retired List.--
     Appropriate elements of the policy required by this section 
     shall apply to recovering service members whose names are 
     placed on the temporary disability retired list in such 
     manner, and subject to such terms and conditions, as the 
     Secretary of Defense shall prescribe in regulations for 
     purposes of this subsection.

     SEC. 1612. MEDICAL EVALUATIONS AND PHYSICAL DISABILITY 
                   EVALUATIONS OF RECOVERING SERVICE MEMBERS.

       (a) Medical Evaluations of Recovering Service Members.--
       (1) In general.--Not later than July 1, 2008, the Secretary 
     of Defense shall develop a policy on improvements to the 
     processes, procedures, and standards for the conduct by the 
     military departments of medical evaluations of recovering 
     service members.
       (2) Elements.--The policy on improvements to processes, 
     procedures, and standards required under this subsection 
     shall include and address the following:
       (A) Processes for medical evaluations of recovering service 
     members that--
       (i) apply uniformly throughout the military departments; 
     and
       (ii) apply uniformly with respect to recovering service 
     members who are members of the regular components of the 
     Armed Forces and recovering service members who are members 
     of the National Guard and Reserve.
       (B) Standard criteria and definitions for determining the 
     achievement for recovering service members of the maximum 
     medical benefit from treatment and rehabilitation.
       (C) Standard timelines for each of the following:
       (i) Determinations of fitness for duty of recovering 
     service members.
       (ii) Specialty care consultations for recovering service 
     members.
       (iii) Preparation of medical documents for recovering 
     service members.
       (iv) Appeals by recovering service members of medical 
     evaluation determinations, including determinations of 
     fitness for duty.
       (D) Procedures for ensuring that--
       (i) upon request of a recovering service member being 
     considered by a medical evaluation board, a physician or 
     other appropriate health care professional who is independent 
     of the medical evaluation board is assigned to the service 
     member; and
       (ii) the physician or other health care professional 
     assigned to a recovering service member under clause (i)--

       (I) serves as an independent source for review of the 
     findings and recommendations of the medical evaluation board;
       (II) provides the service member with advice and counsel 
     regarding the findings and recommendations of the medical 
     evaluation board; and
       (III) advises the service member on whether the findings of 
     the medical evaluation board adequately reflect the complete 
     spectrum of injuries and illness of the service member.

       (E) Standards for qualifications and training of medical 
     evaluation board personnel, including physicians, case 
     workers, and physical disability evaluation board liaison 
     officers, in conducting medical evaluations of recovering 
     service members.
       (F) Standards for the maximum number of medical evaluation 
     cases of recovering service members that are pending before a 
     medical evaluation board at any one time, and requirements 
     for the establishment of additional medical evaluation boards 
     in the event such number is exceeded.
       (G) Standards for information for recovering service 
     members, and their families, on the medical evaluation board 
     process and the rights and responsibilities of recovering 
     service members under that process, including a standard 
     handbook on such information (which handbook shall also be 
     available electronically).
       (b) Physical Disability Evaluations of Recovering Service 
     Members.--
       (1) In general.--Not later than July 1, 2008, the Secretary 
     of Defense and the Secretary of Veterans Affairs shall 
     develop a policy on improvements to the processes, 
     procedures, and standards for the conduct of physical 
     disability evaluations of recovering service members by the 
     military departments and by the Department of Veterans 
     Affairs.
       (2) Elements.--The policy on improvements to processes, 
     procedures, and standards required under this subsection 
     shall include and address the following:
       (A) A clearly-defined process of the Department of Defense 
     and the Department of Veterans Affairs for disability 
     determinations of recovering service members.
       (B) To the extent feasible, procedures to eliminate 
     unacceptable discrepancies and improve consistency among 
     disability ratings assigned by the military departments and 
     the Department of Veterans Affairs, particularly in the 
     disability evaluation of recovering service members, which 
     procedures shall be subject to the following requirements and 
     limitations:
       (i) Such procedures shall apply uniformly with respect to 
     recovering service members who are members of the regular 
     components of the Armed Forces and recovering service members 
     who are members of the National Guard and Reserve.
       (ii) Under such procedures, each Secretary of a military 
     department shall, to the extent feasible, utilize the 
     standard schedule for rating disabilities in use by the 
     Department of Veterans Affairs, including any applicable 
     interpretation of such schedule by the United States Court of 
     Appeals for Veterans Claims, in making any determination of 
     disability of a recovering service member, except as 
     otherwise authorized by section 1216a of title 10, United 
     States Code (as added by section 1642 of this Act).
       (C) Uniform timelines among the military departments for 
     appeals of determinations of disability of recovering service 
     members, including

[[Page 32641]]

     timelines for presentation, consideration, and disposition of 
     appeals.
       (D) Uniform standards among the military departments for 
     qualifications and training of physical disability evaluation 
     board personnel, including physical evaluation board liaison 
     personnel, in conducting physical disability evaluations of 
     recovering service members.
       (E) Uniform standards among the military departments for 
     the maximum number of physical disability evaluation cases of 
     recovering service members that are pending before a physical 
     disability evaluation board at any one time, and requirements 
     for the establishment of additional physical disability 
     evaluation boards in the event such number is exceeded.
       (F) Uniform standards and procedures among the military 
     departments for the provision of legal counsel to recovering 
     service members while undergoing evaluation by a physical 
     disability evaluation board.
       (G) Uniform standards among the military departments on the 
     roles and responsibilities of non-medical care managers under 
     section 1611(e)(4) and judge advocates assigned to recovering 
     service members undergoing evaluation by a physical 
     disability board, and uniform standards on the maximum number 
     of cases involving such service members that are to be 
     assigned to judge advocates at any one time.
       (c) Assessment of Consolidation of Department of Defense 
     and Department of Veterans Affairs Disability Evaluation 
     Systems.--
       (1) In general.--The Secretary of Defense and the Secretary 
     of Veterans Affairs shall jointly submit to the appropriate 
     committees of Congress a report on the feasability and 
     advisability of consolidating the disability evaluation 
     systems of the military departments and the disability 
     evaluation system of the Department of Veterans Affairs into 
     a single disability evaluation system. The report shall be 
     submitted together with the report required by section 
     1611(a).
       (2) Elements.--The report required by paragraph (1) shall 
     include the following:
       (A) An assessment of the feasability and advisability of 
     consolidating the disability evaluation systems described in 
     paragraph (1) as specified in that paragraph.
       (B) If the consolidation of the systems is considered 
     feasible and advisable--
       (i) recommendations for various options for consolidating 
     the systems as specified in paragraph (1); and
       (ii) recommendations for mechanisms to evaluate and assess 
     any progress made in consolidating the systems as specified 
     in that paragraph.

     SEC. 1613. RETURN OF RECOVERING SERVICE MEMBERS TO ACTIVE 
                   DUTY IN THE ARMED FORCES.

       The Secretary of Defense shall establish standards for 
     determinations by the military departments on the return of 
     recovering service members to active duty in the Armed 
     Forces.

     SEC. 1614. TRANSITION OF RECOVERING SERVICE MEMBERS FROM CARE 
                   AND TREATMENT THROUGH THE DEPARTMENT OF DEFENSE 
                   TO CARE, TREATMENT, AND REHABILITATION THROUGH 
                   THE DEPARTMENT OF VETERANS AFFAIRS.

       (a) In General.--Not later than July 1, 2008, the Secretary 
     of Defense and the Secretary of Veterans Affairs shall 
     jointly develop and implement processes, procedures, and 
     standards for the transition of recovering service members 
     from care and treatment through the Department of Defense to 
     care, treatment, and rehabilitation through the Department of 
     Veterans Affairs.
       (b) Elements.--The processes, procedures, and standards 
     required under this section shall include the following:
       (1) Uniform, patient-focused procedures to ensure that the 
     transition described in subsection (a) occurs without gaps in 
     medical care and in the quality of medical care, benefits, 
     and services.
       (2) Procedures for the identification and tracking of 
     recovering service members during the transition, and for the 
     coordination of care and treatment of recovering service 
     members during the transition, including a system of 
     cooperative case management of recovering service members by 
     the Department of Defense and the Department of Veterans 
     Affairs during the transition.
       (3) Procedures for the notification of Department of 
     Veterans Affairs liaison personnel of the commencement by 
     recovering service members of the medical evaluation process 
     and the physical disability evaluation process.
       (4) Procedures and timelines for the enrollment of 
     recovering service members in applicable enrollment or 
     application systems of the Department of Veterans with 
     respect to health care, disability, education, vocational 
     rehabilitation, or other benefits.
       (5) Procedures to ensure the access of recovering service 
     members during the transition to vocational, educational, and 
     rehabilitation benefits available through the Department of 
     Veterans Affairs.
       (6) Standards for the optimal location of Department of 
     Defense and Department of Veterans Affairs liaison and case 
     management personnel at military medical treatment 
     facilities, medical centers, and other medical facilities of 
     the Department of Defense.
       (7) Standards and procedures for integrated medical care 
     and management of recovering service members during the 
     transition, including procedures for the assignment of 
     medical personnel of the Department of Veterans Affairs to 
     Department of Defense facilities to participate in the needs 
     assessments of recovering service members before, during, and 
     after their separation from military service.
       (8) Standards for the preparation of detailed plans for the 
     transition of recovering service members from care and 
     treatment by the Department of Defense to care, treatment, 
     and rehabilitation by the Department of Veterans Affairs, 
     which plans shall--
       (A) be based on standardized elements with respect to care 
     and treatment requirements and other applicable requirements; 
     and
       (B) take into account the comprehensive recovery plan for 
     the recovering service member concerned as developed under 
     section 1611(e)(1).
       (9) Procedures to ensure that each recovering service 
     member who is being retired or separated under chapter 61 of 
     title 10, United States Code, receives a written transition 
     plan, prior to the time of retirement or separation, that--
       (A) specifies the recommended schedule and milestones for 
     the transition of the service member from military service;
       (B) provides for a coordinated transition of the service 
     member from the Department of Defense disability evaluation 
     system to the Department of Veterans Affairs disability 
     system; and
       (C) includes information and guidance designed to assist 
     the service member in understanding and meeting the schedule 
     and milestones specified under subparagraph (A) for the 
     service member's transition.
       (10) Procedures for the transmittal from the Department of 
     Defense to the Department of Veterans Affairs of records and 
     any other required information on each recovering service 
     member described in paragraph (9), which procedures shall 
     provide for the transmission from the Department of Defense 
     to the Department of Veterans Affairs of records and 
     information on the service member as follows:
       (A) The address and contact information of the service 
     member.
       (B) The DD-214 discharge form of the service member, which 
     shall be transmitted under such procedures electronically.
       (C) A copy of the military service record of the service 
     member, including medical records and any results of a 
     physical evaluation board.
       (D) Information on whether the service member is entitled 
     to transitional health care, a conversion health policy, or 
     other health benefits through the Department of Defense under 
     section 1145 of title 10, United States Code.
       (E) A copy of any request of the service member for 
     assistance in enrolling in, or completed applications for 
     enrollment in, the health care system of the Department of 
     Veterans Affairs for health care benefits for which the 
     service member may be eligible under laws administered by the 
     Secretary of Veterans Affairs.
       (F) A copy of any request by the service member for 
     assistance in applying for, or completed applications for, 
     compensation and vocational rehabilitation benefits to which 
     the service member may be entitled under laws administered by 
     the Secretary of Veterans Affairs.
       (11) A process to ensure that, before transmittal of 
     medical records of a recovering service member to the 
     Department of Veterans Affairs, the Secretary of Defense 
     ensures that the service member (or an individual legally 
     recognized to make medical decisions on behalf of the service 
     member) authorizes the transfer of the medical records of the 
     service member from the Department of Defense to the 
     Department of Veterans Affairs pursuant to the Health 
     Insurance Portability and Accountability Act of 1996.
       (12) Procedures to ensure that, with the consent of the 
     recovering service member concerned, the address and contact 
     information of the service member is transmitted to the 
     department or agency for veterans affairs of the State in 
     which the service member intends to reside after the 
     retirement or separation of the service member from the Armed 
     Forces.
       (13) Procedures to ensure that, before the transmittal of 
     records and other information with respect to a recovering 
     service member under this section, a meeting regarding the 
     transmittal of such records and other information occurs 
     among the service member, appropriate family members of the 
     service member, representatives of the Secretary of the 
     military department concerned, and representatives of the 
     Secretary of Veterans Affairs, with at least 30 days advance 
     notice of the meeting being given to the service member 
     unless the service member waives the advance notice 
     requirement in order to accelerate transmission of the 
     service member's records and other information to the 
     Department of Veterans Affairs.
       (14) Procedures to ensure that the Secretary of Veterans 
     Affairs gives appropriate consideration to a written 
     statement submitted to the Secretary by a recovering service 
     member regarding the transition.
       (15) Procedures to provide access for the Department of 
     Veterans Affairs to the military health records of recovering 
     service members who are receiving care and treatment, or are 
     anticipating receipt of care and treatment, in Department of 
     Veterans Affairs health care facilities, which procedures 
     shall be consistent with the procedures and requirements in 
     paragraphs (11) and (13).
       (16) A process for the utilization of a joint separation 
     and evaluation physical examination that meets the 
     requirements of both the Department of Defense and the 
     Department of Veterans Affairs in connection with the medical 
     separation or retirement of a recovering service member from 
     military service and for use by the Department of Veterans 
     Affairs in disability evaluations.
       (17) Procedures for surveys and other mechanisms to measure 
     patient and family satisfaction

[[Page 32642]]

     with the provision by the Department of Defense and the 
     Department of Veterans Affairs of care and services for 
     recovering service members, and to facilitate appropriate 
     oversight by supervisory personnel of the provision of such 
     care and services.
       (18) Procedures to ensure the participation of recovering 
     service members who are members of the National Guard or 
     Reserve in the Benefits Delivery at Discharge Program, 
     including procedures to ensure that, to the maximum extent 
     feasible, services under the Benefits Delivery at Discharge 
     Program are provided to recovering service members at--
       (A) appropriate military installations;
       (B) appropriate armories and military family support 
     centers of the National Guard;
       (C) appropriate military medical care facilities at which 
     members of the Armed Forces are separated or discharged from 
     the Armed Forces; and
       (D) in the case of a member on the temporary disability 
     retired list under section 1202 or 1205 of title 10, United 
     States Code, who is being retired under another provision of 
     such title or is being discharged, at a location reasonably 
     convenient to the member.

     SEC. 1615. REPORTS.

       (a) Report on Policy.--Upon the development of the policy 
     required by subsection (a) of section 1611 but not later than 
     July 1, 2008, the Secretary of Defense and the Secretary of 
     Veterans Affairs shall jointly submit to the appropriate 
     committees of Congress a report on the policy, including a 
     comprehensive and detailed description of the policy and of 
     the manner in which the policy addresses the detailed 
     elements of the policy specified in subsections (d) through 
     (h) of section 1611, and the findings and recommendations of 
     the reviews under subsections (b) and (c) of section 1611.
       (b) Interim Report on Policy.--Not later than February 1, 
     2008, the Secretary of Defense and the Secretary of Veterans 
     Affairs shall jointly submit to the appropriate committees of 
     Congress an interim report on the policy, which shall include 
     a comprehensive and detailed description of the matters 
     specified in subsection (a) current as of the date of such 
     interim report.
       (c) Report on Update of Policy.--Upon updating the policy 
     under section 1611(a)(4), the Secretary of Defense and the 
     Secretary of Veterans Affairs shall jointly submit to the 
     appropriate committees of Congress a report on the update of 
     the policy, including a comprehensive and detailed 
     description of such update and of the reasons for such 
     update.
       (d) Comptroller General Assessment of Implementation of 
     Policy.--
       (1) In general.--Not later than six months after the date 
     of the enactment of this Act and every year thereafter 
     through 2010, the Comptroller General of the United States 
     shall submit to the appropriate committees of Congress a 
     report setting forth the assessment of the Comptroller 
     General of the progress of the Secretary of Defense and the 
     Secretary of Veterans Affairs in developing and implementing 
     the policy required by section 1611(a). Each report shall 
     include a certification by the Comptroller General as to 
     whether the Comptroller General has had timely access to 
     sufficient information to enable the Comptroller General to 
     make informed judgments on the matters covered by the report.
       (2) Access information.--The Secretary of Defense and the 
     Secretary of Veterans Affairs shall facilitate the ability of 
     the Comptroller General to conduct any review required for a 
     report under this subsection within the time period required 
     for such report, including prompt and complete access to such 
     information as the Comptroller General considers necessary to 
     perform such review.
       (e) Report on Reduction in Disability Ratings by the 
     Department of Defense.--Not later than February 1, 2009, the 
     Secretary of Defense shall submit to the Committees on Armed 
     Services of the Senate and House of Representatives a report 
     on the number of instances during the period beginning on 
     October 7, 2001, and ending on September 30, 2006, in which a 
     disability rating assigned to a member of the Armed Forces by 
     an informal physical evaluation board of the Department of 
     Defense was reduced upon appeal, and the reasons for such 
     reduction.

     SEC. 1616. ESTABLISHMENT OF A WOUNDED WARRIOR RESOURCE 
                   CENTER.

       (a) Establishment.--The Secretary of Defense shall 
     establish a wounded warrior resource center (in this section 
     referred to as the ``center'') to provide wounded warriors, 
     their families, and their primary caregivers with a single 
     point of contact for assistance with reporting deficiencies 
     in covered military facilities, obtaining health care 
     services, receiving benefits information, and any other 
     difficulties encountered while supporting wounded warriors. 
     The Secretary shall widely disseminate information regarding 
     the existence and availability of the center, including 
     contact information, to members of the Armed Forces and their 
     dependents. In carrying out this subsection, the Secretary 
     may use existing infrastructure and organizations but shall 
     ensure that the center has the ability to separately keep 
     track of calls from wounded warriors.
       (b) Access.--The center shall provide multiple methods of 
     access, including at a minimum an Internet website and a 
     toll-free telephone number (commonly referred to as a ``hot 
     line'') at which personnel are accessible at all times to 
     receive reports of deficiencies or provide information about 
     covered military facilities, health care services, or 
     military benefits.
       (c) Confidentiality.--
       (1) Notification.--Individuals who seek to provide 
     information through the center under subsection (a) shall be 
     notified, immediately before they provide such information, 
     of their option to elect, at their discretion, to have their 
     identity remain confidential.
       (2) Prohibition on further disclosure.--In the case of 
     information provided through use of the toll-free telephone 
     number by an individual who elects to maintain the 
     confidentiality of his or her identity, any individual who, 
     by necessity, has had access to such information for purposes 
     of investigating or responding to the call as required under 
     subsection (d) may not disclose the identity of the 
     individual who provided the information.
       (d) Functions.--The center shall perform the following 
     functions:
       (1) Call tracking.--The center shall be responsible for 
     documenting receipt of a call, referring the call to the 
     appropriate office within a military department for answer or 
     investigation, and tracking the formulation and notification 
     of the response to the call.
       (2) Investigation and response.--The center shall be 
     responsible for ensuring that, not later than 96 hours after 
     a call--
       (A) if a report of deficiencies is received in a call--
       (i) any deficiencies referred to in the call are 
     investigated;
       (ii) if substantiated, a plan of action for remediation of 
     the deficiencies is developed and implemented; and
       (iii) if requested, the individual who made the report is 
     notified of the current status of the report; or
       (B) if a request for information is received in a call--
       (i) the information requested by the caller is provided by 
     the center;
       (ii) all requests for information from the call are 
     referred to the appropriate office or offices of a military 
     department for response; and
       (iii) the individual who made the report is notified, at a 
     minimum, of the current status of the query.
       (3) Final notification.--The center shall be responsible 
     for ensuring that, if requested, the caller is notified when 
     the deficiency has been corrected or when the request for 
     information has been fulfilled to the maximum extent 
     practicable, as determined by the Secretary.
       (e) Definitions.--In this section:
       (1) Covered military facility.--The term ``covered military 
     facility'' has the meaning provided in section 1648(b) of 
     this Act.
       (2) Call.--The term ``call'' means any query or report that 
     is received by the center by means of the toll-free telephone 
     number or other source.
       (f) Effective Dates.--
       (1) Toll-free telephone number.--The toll-free telephone 
     number required to be established by subsection (a), shall be 
     fully operational not later than April 1, 2008.
       (2) Internet website.--The Internet website required to be 
     established by subsection (a), shall be fully operational not 
     later than July 1, 2008.

     SEC. 1617. NOTIFICATION TO CONGRESS OF HOSPITALIZATION OF 
                   COMBAT WOUNDED SERVICE MEMBERS.

       (a) Notification Required.--
       (1) In general.--Chapter 55 of title 10, United States 
     Code, is further amended by inserting after section 1074k the 
     following new section:

     ``Sec. 1074l. Notification to Congress of hospitalization of 
       combat wounded members

       ``(a) Notification Required.--The Secretary concerned shall 
     provide notification of the hospitalization of any member of 
     the armed forces evacuated from a theater of combat and 
     admitted to a military treatment facility within the United 
     States to the appropriate Members of Congress.
       ``(b) Appropriate Members.--In this section, the term 
     `appropriate Members of Congress', with respect to the member 
     of the armed forces about whom notification is being made, 
     means the Senators representing the State, and the Member, 
     Delegate, or Resident Commissioner of the House of 
     Representatives representing the district, that includes the 
     member's home of record or a different location as provided 
     by the member.
       ``(c) Consent of Member Required.--The notification under 
     subsection (a) may be provided only with the consent of the 
     member of the armed forces about whom notification is to be 
     made. In the case of a member who is unable to provide 
     consent, information and consent may be provided by next of 
     kin.''.
       (2) Effective date.--The notification requirement under 
     section 1074l(a) of title 10, United States Code, as added by 
     paragraph (1), shall apply beginning 60 days after the date 
     of the enactment of this 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:

``1074l. Notification to Congress of hospitalization of combat wounded 
              members.''.

     SEC. 1618. COMPREHENSIVE PLAN ON PREVENTION, DIAGNOSIS, 
                   MITIGATION, TREATMENT, AND REHABILITATION OF, 
                   AND RESEARCH ON, TRAUMATIC BRAIN INJURY, POST-
                   TRAUMATIC STRESS DISORDER, AND OTHER MENTAL 
                   HEALTH CONDITIONS IN MEMBERS OF THE ARMED 
                   FORCES.

       (a) Comprehensive Statement of Policy.--The Secretary of 
     Defense and the Secretary of Veterans Affairs shall direct 
     joint planning among the Department of Defense, the military 
     departments, and the Department of Veterans Affairs for the 
     prevention, diagnosis, mitigation,

[[Page 32643]]

     treatment, and rehabilitation of, and research on, traumatic 
     brain injury, post-traumatic stress disorder, and other 
     mental health conditions in members of the Armed Forces, 
     including planning for the seamless transition of such 
     members from care through the Department of Defense to care 
     through the Department of Veterans Affairs.
       (b) Comprehensive Plan Required.--Not later than 180 days 
     after the date of the enactment of this Act, the Secretary of 
     Defense shall, in consultation with the Secretary of Veterans 
     Affairs, submit to the congressional defense committees a 
     comprehensive plan for programs and activities of the 
     Department of Defense to prevent, diagnose, mitigate, treat, 
     research, and otherwise respond to traumatic brain injury, 
     post-traumatic stress disorder, and other mental health 
     conditions in members of the Armed Forces, including--
       (1) an assessment of the current capabilities of the 
     Department for the prevention, diagnosis, mitigation, 
     treatment, and rehabilitation of, and research on, traumatic 
     brain injury, post-traumatic stress disorder, and other 
     mental health conditions in members of the Armed Forces;
       (2) the identification of gaps in current capabilities of 
     the Department for the prevention, diagnosis, mitigation, 
     treatment, and rehabilitation of, and research on, traumatic 
     brain injury, post-traumatic stress disorder, and other 
     mental health conditions in members of the Armed Forces; and
       (3) the identification of the resources required for the 
     Department in fiscal years 2009 through 2013 to address the 
     gaps in capabilities identified under paragraph (2).
       (c) Program Required.--One of the programs contained in the 
     comprehensive plan submitted under subsection (b) shall be a 
     Department of Defense program, developed in collaboration 
     with the Department of Veterans Affairs, under which each 
     member of the Armed Forces who incurs a traumatic brain 
     injury or post-traumatic stress disorder during service in 
     the Armed Forces--
       (1) is enrolled in the program; and
       (2) receives treatment and rehabilitation meeting a 
     standard of care such that each individual who qualifies for 
     care under the program shall--
       (A) be provided the highest quality, evidence-based care in 
     facilities that most appropriately meet the specific needs of 
     the individual; and
       (B) be rehabilitated to the fullest extent possible using 
     up-to-date evidence-based medical technology, and physical 
     and medical rehabilitation practices and expertise.
       (d) Provision of Information Required.--The comprehensive 
     plan submitted under subsection (b) shall require the 
     provision of information by the Secretary of Defense to 
     members of the Armed Forces with traumatic brain injury, 
     post-traumatic stress disorder, or other mental health 
     conditions and their families about their options with 
     respect to the following:
       (1) The receipt of medical and mental health care from the 
     Department of Defense and the Department of Veterans Affairs.
       (2) Additional options available to such members for 
     treatment and rehabilitation of traumatic brain injury, post-
     traumatic stress disorder, and other mental health 
     conditions.
       (3) The options available, including obtaining a second 
     opinion, to such members for a referral to an authorized 
     provider under chapter 55 of title 10, United States Code, as 
     determined under regulations prescribed by the Secretary of 
     Defense.
       (e) Additional Elements of Plan.--The comprehensive plan 
     submitted under subsection (b) shall include comprehensive 
     proposals of the Department on the following:
       (1) Lead agent.--The designation by the Secretary of 
     Defense of a lead agent or executive agent for the Department 
     to coordinate development and implementation of the plan.
       (2) Detection and treatment.--The improvement of methods 
     and mechanisms for the detection and treatment of traumatic 
     brain injury, post-traumatic stress disorder, and other 
     mental health conditions in members of the Armed Forces in 
     the field.
       (3) Reduction of ptsd.--The development of a plan for 
     reducing post traumatic stress disorder, incorporating 
     evidence-based preventive and early-intervention measures, 
     practices, or procedures that reduce the likelihood that 
     personnel in combat will develop post-traumatic stress 
     disorder or other stress-related conditions (including 
     substance abuse conditions) into--
       (A) basic and pre-deployment training for enlisted members 
     of the Armed Forces, noncommissioned officers, and officers;
       (B) combat theater operations; and
       (C) post-deployment service.
       (4) Research.--Requirements for research on traumatic brain 
     injury, post-traumatic stress disorder, and other mental 
     health conditions including (in particular) research on 
     pharmacological and other approaches to treatment for 
     traumatic brain injury, post-traumatic stress disorder, or 
     other mental health conditions, as applicable, and the 
     allocation of priorities among such research.
       (5) Diagnostic criteria.--The development, adoption, and 
     deployment of joint Department of Defense-Department of 
     Veterans Affairs evidence-based diagnostic criteria for the 
     detection and evaluation of the range of traumatic brain 
     injury, post-traumatic stress disorder, and other mental 
     health conditions in members of the Armed Forces, which 
     criteria shall be employed uniformly across the military 
     departments in all applicable circumstances, including 
     provision of clinical care and assessment of future 
     deployability of members of the Armed Forces.
       (6) Assessment.--The development and deployment of 
     evidence-based means of assessing traumatic brain injury, 
     post-traumatic stress disorder, and other mental health 
     conditions in members of the Armed Forces, including a system 
     of pre-deployment and post-deployment screenings of cognitive 
     ability in members for the detection of cognitive impairment.
       (7) Managing and monitoring.--The development and 
     deployment of effective means of managing and monitoring 
     members of the Armed Forces with traumatic brain injury, 
     post-traumatic stress disorder, or other mental health 
     conditions in the receipt of care for traumatic brain injury, 
     post-traumatic stress disorder, or other mental health 
     conditions, as applicable, including the monitoring and 
     assessment of treatment and outcomes.
       (8) Education and awareness.--The development and 
     deployment of an education and awareness training initiative 
     designed to reduce the negative stigma associated with 
     traumatic brain injury, post-traumatic stress disorder, and 
     other mental health conditions, and mental health treatment.
       (9) Education and outreach.--The provision of education and 
     outreach to families of members of the Armed Forces with 
     traumatic brain injury, post-traumatic stress disorder, or 
     other mental health conditions on a range of matters relating 
     to traumatic brain injury, post-traumatic stress disorder, or 
     other mental health conditions, as applicable, including 
     detection, mitigation, and treatment.
       (10) Recording of blasts.--A requirement that exposure to a 
     blast or blasts be recorded in the records of members of the 
     Armed Forces.
       (11) Guidelines for blast injuries.--The development of 
     clinical practice guidelines for the diagnosis and treatment 
     of blast injuries in members of the Armed Forces, including, 
     but not limited to, traumatic brain injury.
       (12) Gender- and ethnic group-specific services and 
     treatment.--The development of requirements, as appropriate, 
     for gender- and ethnic group-specific medical care services 
     and treatment for members of the Armed Forces who experience 
     mental health problems and conditions, including post-
     traumatic stress disorder, with specific regard to the 
     availability of, access to, and research and development 
     requirements of such needs.
       (f) Coordination in Development.--The comprehensive plan 
     submitted under subsection (b) shall be developed in 
     coordination with the Secretary of the Army (who was 
     designated by the Secretary of Defense as executive agent for 
     the prevention, mitigation, and treatment of blast injuries 
     under section 256 of the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3181; 10 
     U.S.C. 1071 note)).
    Subtitle B--Centers of Excellence in the Prevention, Diagnosis, 
 Mitigation, Treatment, and Rehabilitation of Traumatic Brain Injury, 
            Post-Traumatic Stress Disorder, and Eye Injuries

     SEC. 1621. CENTER OF EXCELLENCE IN THE PREVENTION, DIAGNOSIS, 
                   MITIGATION, TREATMENT, AND REHABILITATION OF 
                   TRAUMATIC BRAIN INJURY.

       (a) In General.--The Secretary of Defense shall establish 
     within the Department of Defense a center of excellence in 
     the prevention, diagnosis, mitigation, treatment, and 
     rehabilitation of traumatic brain injury, including mild, 
     moderate, and severe traumatic brain injury, to carry out the 
     responsibilities specified in subsection (c).
       (b) Partnerships.--The Secretary shall ensure that the 
     Center collaborates to the maximum extent practicable with 
     the Department of Veterans Affairs, institutions of higher 
     education, and other appropriate public and private entities 
     (including international entities) to carry out the 
     responsibilities specified in subsection (c).
       (c) Responsibilities.--The Center shall have 
     responsibilities as follows:
       (1) To implement the comprehensive plan and strategy for 
     the Department of Defense, required by section 1618 of this 
     Act, for the prevention, diagnosis, mitigation, treatment, 
     and rehabilitation of traumatic brain injury, including 
     research on gender and ethnic group-specific health needs 
     related to traumatic brain injury.
       (2) To provide for the development, testing, and 
     dissemination within the Department of best practices for the 
     treatment of traumatic brain injury.
       (3) To provide guidance for the mental health system of the 
     Department in determining the mental health and neurological 
     health personnel required to provide quality mental health 
     care for members of the Armed Forces with traumatic brain 
     injury.
       (4) To establish, implement, and oversee a comprehensive 
     program to train mental health and neurological health 
     professionals of the Department in the treatment of traumatic 
     brain injury.
       (5) To facilitate advancements in the study of the short-
     term and long-term psychological effects of traumatic brain 
     injury.
       (6) To disseminate within the military medical treatment 
     facilities of the Department best practices for training 
     mental health professionals, including neurological health 
     professionals, with respect to traumatic brain injury.
       (7) To conduct basic science and translational research on 
     traumatic brain injury for the purposes of understanding the 
     etiology of traumatic brain injury and developing preventive 
     interventions and new treatments.
       (8) To develop programs and outreach strategies for 
     families of members of the Armed Forces

[[Page 32644]]

     with traumatic brain injury in order to mitigate the negative 
     impacts of traumatic brain injury on such family members and 
     to support the recovery of such members from traumatic brain 
     injury.
       (9) To conduct research on the mental health needs of 
     families of members of the Armed Forces with traumatic brain 
     injury and develop protocols to address any needs identified 
     through such research.
       (10) To conduct longitudinal studies (using imaging 
     technology and other proven research methods) on members of 
     the Armed Forces with traumatic brain injury to identify 
     early signs of Alzheimer's disease, Parkinson's disease, or 
     other manifestations of neurodegeneration, as well as 
     epilepsy, in such members, in coordination with the studies 
     authorized by section 721 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364; 
     120 Stat. 2294) and other studies of the Department of 
     Defense and the Department of Veterans Affairs that address 
     the connection between exposure to combat and the development 
     of Alzheimer's disease, Parkinson's disease, and other 
     neurodegenerative disorders, as well as epilepsy.
       (11) To develop and oversee a long-term plan to increase 
     the number of mental health and neurological health 
     professionals within the Department in order to facilitate 
     the meeting by the Department of the needs of members of the 
     Armed Forces with traumatic brain injury until their 
     transition to care and treatment from the Department of 
     Veterans Affairs.
       (12) To develop a program on comprehensive pain management, 
     including management of acute and chronic pain, to utilize 
     current and develop new treatments for pain, and to identify 
     and disseminate best practices on pain management related to 
     traumatic brain injury.
       (13) Such other responsibilities as the Secretary shall 
     specify.

     SEC. 1622. CENTER OF EXCELLENCE IN PREVENTION, DIAGNOSIS, 
                   MITIGATION, TREATMENT, AND REHABILITATION OF 
                   POST-TRAUMATIC STRESS DISORDER AND OTHER MENTAL 
                   HEALTH CONDITIONS.

       (a) In General.--The Secretary of Defense shall establish 
     within the Department of Defense a center of excellence in 
     the prevention, diagnosis, mitigation, treatment, and 
     rehabilitation of post-traumatic stress disorder (PTSD) and 
     other mental health conditions, including mild, moderate, and 
     severe post-traumatic stress disorder and other mental health 
     conditions, to carry out the responsibilities specified in 
     subsection (c).
       (b) Partnerships.--The Secretary shall ensure that the 
     center collaborates to the maximum extent practicable with 
     the National Center on Post-Traumatic Stress Disorder of the 
     Department of Veterans Affairs, institutions of higher 
     education, and other appropriate public and private entities 
     (including international entities) to carry out the 
     responsibilities specified in subsection (c).
       (c) Responsibilities.--The center shall have 
     responsibilities as follows:
       (1) To implement the comprehensive plan and strategy for 
     the Department of Defense, required by section 1618 of this 
     Act, for the prevention, diagnosis, mitigation, treatment, 
     and rehabilitation of post-traumatic stress disorder and 
     other mental health conditions, including research on gender- 
     and ethnic group-specific health needs related to of post-
     traumatic stress disorder and other mental health conditions.
       (2) To provide for the development, testing, and 
     dissemination within the Department of best practices for the 
     treatment of post-traumatic stress disorder.
       (3) To provide guidance for the mental health system of the 
     Department in determining the mental health and neurological 
     health personnel required to provide quality mental health 
     care for members of the Armed Forces with post-traumatic 
     stress disorder and other mental health conditions.
       (4) To establish, implement, and oversee a comprehensive 
     program to train mental health and neurological health 
     professionals of the Department in the treatment of post-
     traumatic stress disorder and other mental health conditions.
       (5) To facilitate advancements in the study of the short-
     term and long-term psychological effects of post-traumatic 
     stress disorder and other mental health conditions.
       (6) To disseminate within the military medical treatment 
     facilities of the Department best practices for training 
     mental health professionals, including neurological health 
     professionals, with respect to post-traumatic stress disorder 
     and other mental health conditions.
       (7) To conduct basic science and translational research on 
     post-traumatic stress disorder for the purposes of 
     understanding the etiology of post-traumatic stress disorder 
     and developing preventive interventions and new treatments.
       (8) To develop programs and outreach strategies for 
     families of members of the Armed Forces with post-traumatic 
     stress disorder and other mental health conditions in order 
     to mitigate the negative impacts of post-traumatic stress 
     disorder and other mental health conditions on such family 
     members and to support the recovery of such members from 
     post-traumatic stress disorder and other mental health 
     conditions.
       (9) To conduct research on the mental health needs of 
     families of members of the Armed Forces with post-traumatic 
     stress disorder and other mental health conditions and 
     develop protocols to address any needs identified through 
     such research.
       (10) To develop and oversee a long-term plan to increase 
     the number of mental health and neurological health 
     professionals within the Department in order to facilitate 
     the meeting by the Department of the needs of members of the 
     Armed Forces with post-traumatic stress disorder and other 
     mental health conditions until their transition to care and 
     treatment from the Department of Veterans Affairs.

     SEC. 1623. CENTER OF EXCELLENCE IN PREVENTION, DIAGNOSIS, 
                   MITIGATION, TREATMENT, AND REHABILITATION OF 
                   MILITARY EYE INJURIES.

       (a) In General.--The Secretary of Defense shall establish 
     within the Department of Defense a center of excellence in 
     the prevention, diagnosis, mitigation, treatment, and 
     rehabilitation of military eye injuries to carry out the 
     responsibilities specified in subsection (c).
       (b) Partnerships.--The Secretary shall ensure that the 
     center collaborates to the maximum extent practicable with 
     the Secretary of Veterans Affairs, institutions of higher 
     education, and other appropriate public and private entities 
     (including international entities) to carry out the 
     responsibilities specified in subsection (c).
       (c) Responsibilities.--
       (1) In general.--The center shall--
       (A) implement a comprehensive plan and strategy for the 
     Department of Defense, as developed by the Secretary of 
     Defense, for a registry of information for the tracking of 
     the diagnosis, surgical intervention or other operative 
     procedure, other treatment, and follow up for each case of 
     significant eye injury incurred by a member of the Armed 
     Forces while serving on active duty;
       (B) ensure the electronic exchange with the Secretary of 
     Veterans Affairs of information obtained through tracking 
     under subparagraph (A); and
       (C) enable the Secretary of Veterans Affairs to access the 
     registry and add information pertaining to additional 
     treatments or surgical procedures and eventual visual 
     outcomes for veterans who were entered into the registry and 
     subsequently received treatment through the Veterans Health 
     Administration.
       (2) Designation of registry.--The registry under this 
     subsection shall be known as the ``Military Eye Injury 
     Registry'' (hereinafter referred to as the ``Registry'').
       (3) Consultation in development.--The center shall develop 
     the Registry in consultation with the ophthalmological 
     specialist personnel and optometric specialist personnel of 
     the Department of Defense and the ophthalmological specialist 
     personnel and optometric specialist personnel of the 
     Department of Veterans Affairs. The mechanisms and procedures 
     of the Registry shall reflect applicable expert research on 
     military and other eye injuries.
       (4) Mechanisms.--The mechanisms of the Registry for 
     tracking under paragraph (1)(A) shall ensure that each 
     military medical treatment facility or other medical facility 
     shall submit to the center for inclusion in the Registry 
     information on the diagnosis, surgical intervention or other 
     operative procedure, other treatment, and follow up for each 
     case of eye injury described in that paragraph as follows (to 
     the extent applicable):
       (A) Not later than 30 days after surgery or other operative 
     intervention, including a surgery or other operative 
     intervention carried out as a result of a follow-up 
     examination.
       (B) Not later than 180 days after the significant eye 
     injury is reported or recorded in the medical record.
       (5) Coordination of care and benefits.--(A) The center 
     shall provide notice to the Blind Rehabilitation Service of 
     the Department of Veterans Affairs and to the eye care 
     services of the Veterans Health Administration on each member 
     of the Armed Forces described in subparagraph (B) for 
     purposes of ensuring the coordination of the provision of 
     ongoing eye care and visual rehabilitation benefits and 
     services by the Department of Veterans Affairs after the 
     separation or release of such member from the Armed Forces.
       (B) A member of the Armed Forces described in this 
     subparagraph is a member of the Armed Forces as follows:
       (i) A member with a significant eye injury incurred while 
     serving on active duty, including a member with visual 
     dysfunction related to traumatic brain injury.
       (ii) A member with an eye injury incurred while serving on 
     active duty who has a visual acuity of 20/200 or less in the 
     injured eye.
       (iii) A member with an eye injury incurred while serving on 
     active duty who has a loss of peripheral vision resulting in 
     twenty degrees or less of visual field in the injured eye.
       (d) Utilization of Registry Information.--The Secretary of 
     Defense and the Secretary of Veterans Affairs shall jointly 
     ensure that information in the Registry is available to 
     appropriate ophthalmological and optometric personnel of the 
     Department of Defense and the Department of Veterans Affairs 
     for purposes of encouraging and facilitating the conduct of 
     research, and the development of best practices and clinical 
     education, on eye injuries incurred by members of the Armed 
     Forces in combat.
       (e) Inclusion of Records of OIF/OEF Veterans.--The 
     Secretary of Defense shall take appropriate actions to 
     include in the Registry such records of members of the Armed 
     Forces who incurred an eye injury while serving on active 
     duty on or after September 11, 2001, but before the 
     establishment of the Registry, as the Secretary considers 
     appropriate for purposes of the Registry.
       (d) Traumatic Brain Injury Post Traumatic Visual 
     Syndrome.--In carrying out the program at Walter Reed Army 
     Medical Center,

[[Page 32645]]

     District of Columbia, on traumatic brain injury post 
     traumatic visual syndrome, the Secretary of Defense and the 
     Department of Veterans Affairs shall jointly provide for the 
     conduct of a cooperative program for members of the Armed 
     Forces and veterans with traumatic brain injury by military 
     medical treatment facilities of the Department of Defense and 
     medical centers of the Department of Veterans Affairs 
     selected for purposes of this subsection for purposes of 
     vision screening, diagnosis, rehabilitative management, and 
     vision research, including research on prevention, on visual 
     dysfunction related to traumatic brain injury.

     SEC. 1624. REPORT ON ESTABLISHMENT OF CENTERS OF EXCELLENCE.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     submit to Congress a report on--
       (1) the establishment of the center of excellence in 
     prevention, diagnosis, mitigation, treatment, and 
     rehabilitation of traumatic brain injury under section 1621;
       (2) the establishment of the center of excellence in 
     prevention, diagnosis, mitigation, treatment, and 
     rehabilitation of post-traumatic stress disorder and other 
     mental health conditions under section 1622; and
       (3) the establishment of the center of excellence in 
     prevention, diagnosis, mitigation, treatment, and 
     rehabilitation of military eye injuries under section 1623.
       (b) Matters Covered.--The report shall, for each such 
     center--
       (1) describe in detail the activities and proposed 
     activities of such center; and
       (2) assess the progress of such center in discharging the 
     responsibilities of such center.
                    Subtitle C--Health Care Matters

     SEC. 1631. MEDICAL CARE AND OTHER BENEFITS FOR MEMBERS AND 
                   FORMER MEMBERS OF THE ARMED FORCES WITH SEVERE 
                   INJURIES OR ILLNESSES.

       (a) Medical and Dental Care for Former Members.--
       (1) In general.--Effective as of the date of the enactment 
     of this Act and subject to regulations prescribed by the 
     Secretary of Defense, the Secretary may authorize that any 
     former member of the Armed Forces with a serious injury or 
     illness may receive the same medical and dental care as a 
     member of the Armed Forces on active duty for medical and 
     dental care not reasonably available to such former member in 
     the Department of Veterans Affairs.
       (2) Sunset.--The Secretary of Defense may not provide 
     medical or dental care to a former member of the Armed Forces 
     under this subsection after December 31, 2012, if the 
     Secretary has not provided medical or dental care to the 
     former member under this subsection before that date.
       (b) Rehabilitation and Vocational Benefits.--
       (1) In general.--Effective as of the date of the enactment 
     of this Act, a member of the Armed Forces with a severe 
     injury or illness is entitled to such benefits (including 
     rehabilitation and vocational benefits, but not including 
     compensation) from the Secretary of Veterans Affairs to 
     facilitate the recovery and rehabilitation of such member as 
     the Secretary otherwise provides to veterans of the Armed 
     Forces receiving medical care in medical facilities of the 
     Department of Veterans Affairs facilities in order to 
     facilitate the recovery and rehabilitation of such members.
       (2) Sunset.--The Secretary of Veterans Affairs may not 
     provide benefits to a member of the Armed Forces under this 
     subsection after December 31, 2012, if the Secretary has not 
     provided benefits to the member under this subsection before 
     that date.

     SEC. 1632. REIMBURSEMENT OF TRAVEL EXPENSES OF RETIRED 
                   MEMBERS WITH COMBAT-RELATED DISABILITIES FOR 
                   FOLLOW-ON SPECIALTY CARE, SERVICES, AND 
                   SUPPLIES.

       (a) Travel.--Section 1074i of title 10, United States Code, 
     is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Outreach Program and Travel Reimbursement for Follow-
     on Specialty Care and Related Services.--The Secretary 
     concerned shall ensure that an outreach program is 
     implemented for each member of the uniformed services who 
     incurred a combat-related disability and is entitled to 
     retired or retainer pay, or equivalent pay, so that--
       ``(1) the progress of the member is closely monitored; and
       ``(2) the member receives the travel reimbursement 
     authorized by subsection (a) whenever the member requires 
     follow-on specialty care, services, or supplies.''.
       (b) Combat-Related Disability Defined.--Subsection (c) of 
     such section, as redesignated by subsection (a)(1), is 
     amended by adding at the end the following new paragraph:
       ``(3) The term `combat-related disability' has the meaning 
     given that term in section 1413a of this title.''.
       (c) Effective Date.--Subsection (b) of section 1074i of 
     title 10, United States Code, as added by subsection (a)(2), 
     shall apply with respect to travel described in subsection 
     (a) of such section that occurs on or after January 1, 2008, 
     for follow-on specialty care, services, or supplies.

     SEC. 1633. RESPITE CARE AND OTHER EXTENDED CARE BENEFITS FOR 
                   MEMBERS OF THE UNIFORMED SERVICES WHO INCUR A 
                   SERIOUS INJURY OR ILLNESS ON ACTIVE DUTY.

       (a) In General.--Section 1074(c) of title 10, United States 
     Code, is amended by adding at the end the following new 
     paragraph:
       ``(4)(A) Subject to such terms and conditions as the 
     Secretary of Defense considers appropriate, coverage 
     comparable to that provided by the Secretary under 
     subsections (d) and (e) of section 1079 of this title shall 
     be provided under this subsection to members of the uniformed 
     services who incur a serious injury or illness on active duty 
     as defined by regulations prescribed by the Secretary.
       ``(B) The Secretary of Defense shall prescribe in 
     regulations--
       ``(i) the individuals who shall be treated as the primary 
     caregivers of a member of the uniformed services for purposes 
     of this paragraph; and
       ``(ii) the definition of serious injury or illness for the 
     purposes of this paragraph.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 2008.

     SEC. 1634. REPORTS.

       (a) Reports on Implementation of Certain Requirements.--Not 
     later than 90 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 
     progress in implementing the requirements as follows:
       (1) The requirements of section 721 of the John Warner 
     National Defense Authorization Act for Fiscal Year 2007 
     (Public Law 109-364; 120 Stat. 2294), relating to a 
     longitudinal study on traumatic brain injury incurred by 
     members of the Armed Forces in Operation Iraqi Freedom and 
     Operation Enduring Freedom.
       (2) The requirements of section 741 of the John Warner 
     National Defense Authorization Act for Fiscal Year 2007 (120 
     Stat. 2304), relating to pilot projects on early diagnosis 
     and treatment of post-traumatic stress disorder and other 
     mental health conditions.
       (b) Annual Reports on Expenditures for Activities on TBI 
     and PTSD.--
       (1) Reports required.--Not later than March 1, 2008, and 
     each year thereafter through 2013, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     setting forth the amounts expended by the Department of 
     Defense during the preceding calendar year on activities 
     described in paragraph (2), including the amount allocated 
     during such calendar year to the Defense and Veterans Brain 
     Injury Center of the Department.
       (2) Covered activities.--The activities described in this 
     paragraph are activities as follows:
       (A) Activities relating to the improved diagnosis, 
     treatment, and rehabilitation of members of the Armed Forces 
     with traumatic brain injury (TBI).
       (B) Activities relating to the improved diagnosis, 
     treatment, and rehabilitation of members of the Armed Forces 
     with post-traumatic stress disorder (PTSD).
       (3) Elements.--Each report under paragraph (1) shall 
     include--
       (A) a description of the amounts expended as described in 
     that paragraph, including a description of the activities for 
     which expended;
       (B) a description and assessment of the outcome of such 
     activities;
       (C) a statement of priorities of the Department in 
     activities relating to the prevention, diagnosis, research, 
     treatment, and rehabilitation of traumatic brain injury in 
     members of the Armed Forces during the year in which such 
     report is submitted and in future calendar years;
       (D) a statement of priorities of the Department in 
     activities relating to the prevention, diagnosis, research, 
     treatment, and rehabilitation of post-traumatic stress 
     disorder and other mental health conditions in members of the 
     Armed Forces during the year in which such report is 
     submitted and in future calendar years; and
       (E) an assessment of the progress made toward achieving the 
     priorities stated in subparagraphs (C) and (D) in the report 
     under paragraph (1) in the previous year, and a description 
     of any actions planned during the year in which such report 
     is submitted to achieve any unfulfilled priorities during 
     such year.

     SEC. 1635. FULLY INTEROPERABLE ELECTRONIC PERSONAL HEALTH 
                   INFORMATION FOR THE DEPARTMENT OF DEFENSE AND 
                   DEPARTMENT OF VETERANS AFFAIRS.

       (a) In General.--The Secretary of Defense and the Secretary 
     of Veterans Affairs shall jointly--
       (1) develop and implement electronic health record systems 
     or capabilities that allow for full interoperability of 
     personal health care information between the Department of 
     Defense and the Department of Veterans Affairs; and
       (2) accelerate the exchange of health care information 
     between the Department of Defense and the Department of 
     Veterans Affairs in order to support the delivery of health 
     care by both Departments.
       (b) Department of Defense-Department of Veterans Affairs 
     Interagency Program Office.--
       (1) In general.--There is hereby established an interagency 
     program office of the Department of Defense and the 
     Department of Veterans Affairs (in this section referred to 
     as the ``Office'') for the purposes described in paragraph 
     (2).
       (2) Purposes.--The purposes of the Office shall be as 
     follows:
       (A) To act as a single point of accountability for the 
     Department of Defense and the Department of Veterans Affairs 
     in the rapid development and implementation of electronic 
     health

[[Page 32646]]

     record systems or capabilities that allow for full 
     interoperability of personal health care information between 
     the Department of Defense and the Department of Veterans 
     Affairs.
       (B) To accelerate the exchange of health care information 
     between the Department of Defense and the Department of 
     Veterans Affairs in order to support the delivery of health 
     care by both Departments.
       (c) Leadership.--
       (1) Director.--The Director of the Office shall be the head 
     of the Office.
       (2) Deputy director.--The Deputy Director of the Office 
     shall be the deputy head of the Office and shall assist the 
     Director in carrying out the duties of the Director.
       (3) Appointments.--(A) The Director shall be appointed by 
     the Secretary of Defense, with the concurrence of the 
     Secretary of Veterans Affairs, from among persons who are 
     qualified to direct the development, acquisition, and 
     integration of major information technology capabilities.
       (B) The Deputy Director shall be appointed by the Secretary 
     of Veterans Affairs, with the concurrence of the Secretary of 
     Defense, from among employees of the Department of Defense 
     and the Department of Veterans Affairs in the Senior 
     Executive Service who are qualified to direct the 
     development, acquisition, and integration of major 
     information technology capabilities.
       (4) Additional guidance.--In addition to the direction, 
     supervision, and control provided by the Secretary of Defense 
     and the Secretary of Veterans Affairs, the Office shall also 
     receive guidance from the Department of Veterans Affairs-
     Department of Defense Joint Executive Committee under section 
     320 of title 38, United States Code, in the discharge of the 
     functions of the Office under this section.
       (5) Testimony.--Upon request by any of the appropriate 
     committees of Congress, the Director and the Deputy Director 
     shall testify before such committee regarding the discharge 
     of the functions of the Office under this section.
       (d) Function.--The function of the Office shall be to 
     implement, by not later than September 30, 2009, electronic 
     health record systems or capabilities that allow for full 
     interoperability of personal health care information between 
     the Department of Defense and the Department of Veterans 
     Affairs, which health records shall comply with applicable 
     interoperability standards, implementation specifications, 
     and certification criteria (including for the reporting of 
     quality measures) of the Federal Government.
       (e) Schedules and Benchmarks.--Not later than 30 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense and the Secretary of Veterans Affairs shall jointly 
     establish a schedule and benchmarks for the discharge by the 
     Office of its function under this section, including each of 
     the following:
       (1) A schedule for the establishment of the Office.
       (2) A schedule and deadline for the establishment of the 
     requirements for electronic health record systems or 
     capabilities described in subsection (d), including 
     coordination with the Office of the National Coordinator for 
     Health Information Technology in the development of a 
     nationwide interoperable health information technology 
     infrastructure.
       (3) A schedule and associated deadlines for any acquisition 
     and testing required in the implementation of electronic 
     health record systems or capabilities that allow for full 
     interoperability of personal health care information between 
     the Department of Defense and the Department of Veterans 
     Affairs.
       (4) A schedule and associated deadlines and requirements 
     for the implementation of electronic health record systems or 
     capabilities that allow for full interoperability of personal 
     health care information between the Department of Defense and 
     the Department of Veterans Affairs.
       (f) Pilot Projects.--
       (1) Authority.--In order to assist the Office in the 
     discharge of its function under this section, the Secretary 
     of Defense and the Secretary of Veterans Affairs may, acting 
     jointly, carry out one or more pilot projects to assess the 
     feasibility and advisability of various technological 
     approaches to the achievement of the electronic health record 
     systems or capabilities described in subsection (d).
       (2) Sharing of protected health information.--For purposes 
     of each pilot project carried out under this subsection, the 
     Secretary of Defense and the Secretary of Veterans Affairs 
     shall, for purposes of the regulations promulgated under 
     section 264(c) of the Health Insurance Portability and 
     Accountability Act of 1996 (42 U.S.C. 1320d-2 note), ensure 
     the effective sharing of protected health information between 
     the health care system of the Department of Defense and the 
     health care system of the Department of Veterans Affairs as 
     needed to provide all health care services and other benefits 
     allowed by law.
       (g) Staff and Other Resources.--
       (1) In general.--The Secretary of Defense and the Secretary 
     of Veterans Affairs shall assign to the Office such personnel 
     and other resources of the Department of Defense and the 
     Department of Veterans Affairs as are required for the 
     discharge of its function under this section.
       (2) Additional services.--Subject to the approval of the 
     Secretary of Defense and the Secretary of Veterans Affairs, 
     the Director may utilize the services of private individuals 
     and entities as consultants to the Office in the discharge of 
     its function under this section. Amounts available to the 
     Office shall be available for payment for such services.
       (h) Annual Reports.--
       (1) In general.--Not later than January 1, 2009, and each 
     year thereafter through 2014, the Director shall submit to 
     the Secretary of Defense and the Secretary of Veterans 
     Affairs, and to the appropriate committees of Congress, a 
     report on the activities of the Office during the preceding 
     calendar year. Each report shall include, for the year 
     covered by such report, the following:
       (A) A detailed description of the activities of the Office, 
     including a detailed description of the amounts expended and 
     the purposes for which expended.
       (B) An assessment of the progress made by the Department of 
     Defense and the Department of Veterans Affairs in the full 
     implementation of electronic health record systems or 
     capabilities described in subsection (d).
       (2) Availability to public.--The Secretary of Defense and 
     the Secretary of Veterans Affairs shall make available to the 
     public each report submitted under paragraph (1), including 
     by posting such report on the Internet website of the 
     Department of Defense and the Department of Veterans Affairs, 
     respectively, that is available to the public.
       (i) Comptroller General Assessment of Implementation.--Not 
     later than six months after the date of the enactment of this 
     Act and every six months thereafter until the completion of 
     the implementation of electronic health record systems or 
     capabilities described in subsection (d), the Comptroller 
     General of the United States shall submit to the appropriate 
     committees of Congress a report setting forth the assessment 
     of the Comptroller General of the progress of the Department 
     of Defense and the Department of Veterans Affairs in 
     implementing electronic health record systems or capabilities 
     described in subsection (d).

     SEC. 1636. ENHANCED PERSONNEL AUTHORITIES FOR THE DEPARTMENT 
                   OF DEFENSE FOR HEALTH CARE PROFESSIONALS FOR 
                   CARE AND TREATMENT OF WOUNDED AND INJURED 
                   MEMBERS OF THE ARMED FORCES.

       (a) In General.--Section 1599c of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 1599c. Health care professionals: enhanced appointment 
       and compensation authority for personnel for care and 
       treatment of wounded and injured members of the armed 
       forces

       ``(a) In General.--The Secretary of Defense may, at the 
     discretion of the Secretary, exercise any authority for the 
     appointment and pay of health care personnel under chapter 74 
     of title 38 for purposes of the recruitment, employment, and 
     retention of civilian health care professionals for the 
     Department of Defense if the Secretary determines that the 
     exercise of such authority is necessary in order to provide 
     or enhance the capacity of the Department to provide care and 
     treatment for members of the armed forces who are wounded or 
     injured on active duty in the armed forces and to support the 
     ongoing patient care and medical readiness, education, and 
     training requirements of the Department of Defense.
       ``(b) Recruitment of Personnel.--(1) The Secretaries of the 
     military departments shall each develop and implement a 
     strategy to disseminate among appropriate personnel of the 
     military departments authorities and best practices for the 
     recruitment of medical and health professionals, including 
     the authorities under subsection (a).
       ``(2) Each strategy under paragraph (1) shall--
       ``(A) assess current recruitment policies, procedures, and 
     practices of the military department concerned to assure that 
     such strategy facilitates the implementation of efficiencies 
     which reduce the time required to fill vacant positions for 
     medical and health professionals; and
       ``(B) clearly identify processes and actions that will be 
     used to inform and educate military and civilian personnel 
     responsible for the recruitment of medical and health 
     professionals.
       ``(c) Termination of Authority.--The authority of the 
     Secretary of Defense to exercise authorities available under 
     chapter 74 of title 38 for purposes of the recruitment, 
     employment, and retention of civilian health care 
     professionals for the Department of Defense expires September 
     30, 2010.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 81 of such title is amended by striking 
     the item relating to section 1599c and inserting the 
     following new item:

``1599c. Health care professionals: enhanced appointment and 
              compensation authority for personnel for care and 
              treatment of wounded and injured members of the armed 
              forces.''.

       (c) Reports on Strategies on Recruitment of Medical and 
     Health Professionals.--Not later than six months after the 
     date of the enactment of this Act, each Secretary of a 
     military department shall submit to the congressional defense 
     committees a report setting forth the strategy developed by 
     such Secretary under section 1599c(b) of title 10, United 
     States Code, as added by subsection (a).

     SEC. 1637. CONTINUATION OF TRANSITIONAL HEALTH BENEFITS FOR 
                   MEMBERS OF THE ARMED FORCES PENDING RESOLUTION 
                   OF SERVICE-RELATED MEDICAL CONDITIONS.

        Section 1145(a) of title 10, United States Code, is 
     amended--
       (1) in paragraph (3), by striking ``Transitional health 
     care'' and inserting ``Except as provided in paragraph (6), 
     transitional health care''; and

[[Page 32647]]

       (2) by adding at the end the following new paragraph:
       ``(6)(A) A member who has a medical condition relating to 
     service on active duty that warrants further medical care 
     that has been identified during the member's 180-day 
     transition period, which condition can be resolved within 180 
     days as determined by a Department of Defense physician, 
     shall be entitled to receive medical and dental care for that 
     medical condition, and that medical condition only, as if the 
     member were a member of the armed forces on active duty for 
     180 days following the diagnosis of the condition.
       ``(B) The Secretary concerned shall ensure that the Defense 
     Enrollment and Eligibility Reporting System (DEERS) is 
     continually updated in order to reflect the continuing 
     entitlement of members covered by subparagraph (A) to the 
     medical and dental care referred to in that subparagraph.''.
                     Subtitle D--Disability Matters

     SEC. 1641. UTILIZATION OF VETERANS' PRESUMPTION OF SOUND 
                   CONDITION IN ESTABLISHING ELIGIBILITY OF 
                   MEMBERS OF THE ARMED FORCES FOR RETIREMENT FOR 
                   DISABILITY.

       (a) Retirement of Regulars and Members on Active Duty for 
     More Than 30 Days.--Clause (i) of section 1201(b)(3)(B) of 
     title 10, United States Code, is amended to read as follows:
       ``(i) the member has six months or more of active military 
     service and the disability was not noted at the time of the 
     member's entrance on active duty (unless compelling evidence 
     or medical judgment is such to warrant a finding that the 
     disability existed before the member's entrance on active 
     duty);''.
       (b) Separation of Regulars and Members on Active Duty for 
     More Than 30 Days.--Section 1203(b)(4)(B) of such title is 
     amended by striking ``and the member has at least eight years 
     of service computed under section 1208 of this title'' and 
     inserting ``, the member has six months or more of active 
     military service, and the disability was not noted at the 
     time of the member's entrance on active duty (unless evidence 
     or medical judgment is such to warrant a finding that the 
     disability existed before the member's entrance on active 
     duty)''.

     SEC. 1642. REQUIREMENTS AND LIMITATIONS ON DEPARTMENT OF 
                   DEFENSE DETERMINATIONS OF DISABILITY WITH 
                   RESPECT TO MEMBERS OF THE ARMED FORCES.

       (a) In General.--Chapter 61 of title 10, United States 
     Code, is amended by inserting after section 1216 the 
     following new section:

     ``Sec. 1216a. Determinations of disability: requirements and 
       limitations on determinations

       ``(a) Utilization of VA Schedule for Rating Disabilities in 
     Determinations of Disability.--(1) In making a determination 
     of disability of a member of the armed forces for purposes of 
     this chapter, the Secretary concerned--
       ``(A) shall, to the extent feasible, utilize the schedule 
     for rating disabilities in use by the Department of Veterans 
     Affairs, including any applicable interpretation of the 
     schedule by the United States Court of Appeals for Veterans 
     Claims; and
       ``(B) except as provided in paragraph (2), may not deviate 
     from the schedule or any such interpretation of the schedule.
       ``(2) In making a determination described in paragraph (1), 
     the Secretary concerned may utilize in lieu of the schedule 
     described in that paragraph such criteria as the Secretary of 
     Defense and the Secretary of Veterans Affairs may jointly 
     prescribe for purposes of this subsection if the utilization 
     of such criteria will result in a determination of a greater 
     percentage of disability than would be otherwise determined 
     through the utilization of the schedule.
       ``(b) Consideration of All Medical Conditions.--In making a 
     determination of the rating of disability of a member of the 
     armed forces for purposes of this chapter, the Secretary 
     concerned shall take into account all medical conditions, 
     whether individually or collectively, that render the member 
     unfit to perform the duties of the member's office, grade, 
     rank, or rating.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 61 of such title is amended by inserting 
     after the item relating to section 1216 the following new 
     item:

``1216a. Determinations of disability: requirements and limitations on 
              determinations.''.

     SEC. 1643. REVIEW OF SEPARATION OF MEMBERS OF THE ARMED 
                   FORCES SEPARATED FROM SERVICE WITH A DISABILITY 
                   RATING OF 20 PERCENT DISABLED OR LESS.

       (a) Board Required.--
       (1) In general.--Chapter 79 of title 10, United States 
     Code, is amended by inserting after section 1554 the 
     following new section:

     ``Sec. 1554a. Review of separation with disability rating of 
       20 percent disabled or less

       ``(a) In General.--(1) The Secretary of Defense shall 
     establish within the Office of the Secretary of Defense a 
     board of review to review the disability determinations of 
     covered individuals by Physical Evaluation Boards. The board 
     shall be known as the `Physical Disability Board of Review'.
       ``(2) The Physical Disability Board of Review shall consist 
     of not less than three members appointed by the Secretary.
       ``(b) Covered Individuals.--For purposes of this section, 
     covered individuals are members and former members of the 
     armed forces who, during the period beginning on September 
     11, 2001, and ending on December 31, 2009--
       ``(1) are separated from the armed forces due to unfitness 
     for duty due to a medical condition with a disability rating 
     of 20 percent disabled or less; and
       ``(2) are found to be not eligible for retirement.
       ``(c) Review.--(1) Upon the request of a covered 
     individual, or a surviving spouse, next of kin, or legal 
     representative of a covered individual, the Physical 
     Disability Board of Review shall review the findings and 
     decisions of the Physical Evaluation Board with respect to 
     such covered individual. Subject to paragraph (3), upon its 
     own motion, the Physical Disability Board of Review may 
     review the findings and decisions of the Physical Evaluation 
     Board with respect to a covered individual.
       ``(2) The review by the Physical Disability Board of Review 
     under paragraph (1) shall be based on the records of the 
     armed force concerned and such other evidence as may be 
     presented to the Physical Disability Board of Review. A 
     witness may present evidence to the Board by affidavit or by 
     any other means considered acceptable by the Secretary of 
     Defense.
       ``(3) If the Physical Disability Board of Review proposes 
     to review, upon its own motion, the findings and decisions of 
     the Physical Evaluation Board with respect to a covered 
     individual, the Physical Disability Board of Review shall 
     notify the covered individual, or a surviving spouse, next of 
     kin, or legal representative of the covered individual, of 
     the proposed review and obtain the consent of the covered 
     individual or a surviving spouse, next of kin, or legal 
     representative of the covered individual before proceeding 
     with the review.
       ``(4) With respect to any review by the Physical Disability 
     Board of Review of the findings and decisions of the Physical 
     Evaluation Board with respect to a covered individual, 
     whether initiated at the request of the covered individual or 
     a surviving spouse, next of kin, or legal representative of 
     the covered individual or initiated by the Physical 
     Disability Board of Review, the Physical Disability Board of 
     Review shall notify the covered individual or a surviving 
     spouse, next of kin, or legal representative of the covered 
     individual that, as a result of the request or consent, the 
     covered individual or a surviving spouse, next of kin, or 
     legal representative of the covered individual may not seek 
     relief from the Board for Correction of Military Records 
     operated by the Secretary concerned.
       ``(d) Authorized Recommendations.--The Physical Disability 
     Board of Review may, as a result of its findings under a 
     review under subsection (c), recommend to the Secretary 
     concerned the following (as applicable) with respect to a 
     covered individual:
       ``(1) No recharacterization of the separation of such 
     individual or modification of the disability rating 
     previously assigned such individual.
       ``(2) The recharacterization of the separation of such 
     individual to retirement for disability.
       ``(3) The modification of the disability rating previously 
     assigned such individual by the Physical Evaluation Board 
     concerned, which modified disability rating may not be a 
     reduction of the disability rating previously assigned such 
     individual by that Physical Evaluation Board.
       ``(4) The issuance of a new disability rating for such 
     individual.
       ``(e) Correction of Military Records.--(1) The Secretary 
     concerned may correct the military records of a covered 
     individual in accordance with a recommendation made by the 
     Physical Disability Board of Review under subsection (d). Any 
     such correction may be made effective as of the effective 
     date of the action taken on the report of the Physical 
     Evaluation Board to which such recommendation relates.
       ``(2) In the case of a member previously separated pursuant 
     to the findings and decision of a Physical Evaluation Board 
     together with a lump-sum or other payment of back pay and 
     allowances at separation, the amount of pay or other monetary 
     benefits to which such member would be entitled based on the 
     member's military record as corrected shall be reduced to 
     take into account receipt of such lump-sum or other payment 
     in such manner as the Secretary of Defense considers 
     appropriate.
       ``(3) If the Physical Disability Board of Review makes a 
     recommendation not to correct the military records of a 
     covered individual, the action taken on the report of the 
     Physical Evaluation Board to which such recommendation 
     relates shall be treated as final as of the date of such 
     action.
       ``(f) Regulations.--(1) This section shall be carried out 
     in accordance with regulations prescribed by the Secretary of 
     Defense.
       ``(2) The regulations under paragraph (1) shall specify 
     reasonable deadlines for the performance of reviews required 
     by this section.
       ``(3) The regulations under paragraph (1) shall specify the 
     effect of a determination or pending determination of a 
     Physical Evaluation Board on considerations by boards for 
     correction of military records under section 1552 of this 
     title.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 79 of such title is amended by inserting 
     after the item relating to section 1554 the following new 
     item:

``1554a. Review of separation with disability rating of 20 percent 
              disabled or less.''.

       (b) Implementation.--The Secretary of Defense shall 
     establish the board of review required by section 1554a of 
     title 10, United States Code (as added by subsection (a)), 
     and prescribe the regulations required by such section, not

[[Page 32648]]

     later than 90 days after the date of the enactment of this 
     Act.

     SEC. 1644. AUTHORIZATION OF PILOT PROGRAMS TO IMPROVE THE 
                   DISABILITY EVALUATION SYSTEM FOR MEMBERS OF THE 
                   ARMED FORCES.

       (a) Pilot Programs.--
       (1) Programs authorized.--For the purposes set forth in 
     subsection (c), the Secretary of Defense may establish and 
     conduct pilot programs with respect to the system of the 
     Department of Defense for the evaluation of the disabilities 
     of members of the Armed Forces who are being separated or 
     retired from the Armed Forces for disability under chapter 61 
     of title 10, United States Code (in this section referred to 
     as the ``disability evaluation system'').
       (2) Types of pilot programs.--In carrying out this section, 
     the Secretary of Defense may conduct one or more of the pilot 
     programs described in paragraphs (1) through (3) of 
     subsection (b) or such other pilot programs as the Secretary 
     of Defense considers appropriate.
       (3) Consultation.--In establishing and conducting any pilot 
     program under this section, the Secretary of Defense shall 
     consult with the Secretary of Veterans Affairs.
       (b) Scope of Pilot Programs.--
       (1) Disability determinations by dod utilizing va assigned 
     disability rating.--Under one of the pilot programs 
     authorized by subsection (a), for purposes of making a 
     determination of disability of a member of the Armed Forces 
     under section 1201(b) of title 10, United States Code, for 
     the retirement, separation, or placement of the member on the 
     temporary disability retired list under chapter 61 of such 
     title, upon a determination by the Secretary of the military 
     department concerned that the member is unfit to perform the 
     duties of the member's office, grade, rank, or rating because 
     of a physical disability as described in section 1201(a) of 
     such title--
       (A) the Secretary of Veterans Affairs may--
       (i) conduct an evaluation of the member for physical 
     disability; and
       (ii) assign the member a rating of disability in accordance 
     with the schedule for rating disabilities utilized by the 
     Secretary of Veterans Affairs based on all medical conditions 
     (whether individually or collectively) that render the member 
     unfit for duty; and
       (B) the Secretary of the military department concerned may 
     make the determination of disability regarding the member 
     utilizing the rating of disability assigned under 
     subparagraph (A)(ii).
       (2) Disability determinations utilizing joint dod/va 
     assigned disability rating.--Under one of the pilot programs 
     authorized by subsection (a), in making a determination of 
     disability of a member of the Armed Forces under section 
     1201(b) of title 10, United States Code, for the retirement, 
     separation, or placement of the member on the temporary 
     disability retired list under chapter 61 of such title, the 
     Secretary of the military department concerned may, upon 
     determining that the member is unfit to perform the duties of 
     the member's office, grade, rank, or rating because of a 
     physical disability as described in section 1201(a) of such 
     title--
       (A) provide for the joint evaluation of the member for 
     disability by the Secretary of the military department 
     concerned and the Secretary of Veterans Affairs, including 
     the assignment of a rating of disability for the member in 
     accordance with the schedule for rating disabilities utilized 
     by the Secretary of Veterans Affairs based on all medical 
     conditions (whether individually or collectively) that render 
     the member unfit for duty; and
       (B) make the determination of disability regarding the 
     member utilizing the rating of disability assigned under 
     subparagraph (A).
       (3) Electronic clearing house.--Under one of the pilot 
     programs authorized by subsection (a), the Secretary of 
     Defense may establish and operate a single Internet website 
     for the disability evaluation system of the Department of 
     Defense that enables participating members of the Armed 
     Forces to fully utilize such system through the Internet, 
     with such Internet website to include the following:
       (A) The availability of any forms required for the 
     utilization of the disability evaluation system by members of 
     the Armed Forces under the system.
       (B) Secure mechanisms for the submission of such forms by 
     members of the Armed Forces under the system, and for the 
     tracking of the acceptance and review of any forms so 
     submitted.
       (C) Secure mechanisms for advising members of the Armed 
     Forces under the system of any additional information, forms, 
     or other items that are required for the acceptance and 
     review of any forms so submitted.
       (D) The continuous availability of assistance to members of 
     the Armed Forces under the system (including assistance 
     through the caseworkers assigned to such members of the Armed 
     Forces) in submitting and tracking such forms, including 
     assistance in obtaining information, forms, or other items 
     described by subparagraph (C).
       (E) Secure mechanisms to request and receive personnel 
     files or other personnel records of members of the Armed 
     Forces under the system that are required for submission 
     under the disability evaluation system, including the 
     capability to track requests for such files or records and to 
     determine the status of such requests and of responses to 
     such requests.
       (4) Other pilot programs.--The pilot programs authorized by 
     subsection (a) may also provide for the development, 
     evaluation, and identification of such practices and 
     procedures under the disability evaluation system as the 
     Secretary considers appropriate for purposes set forth in 
     subsection (c).
       (c) Purposes.--A pilot program established under subsection 
     (a) may have one or more of the following purposes:
       (1) To provide for the development, evaluation, and 
     identification of revised and improved practices and 
     procedures under the disability evaluation system in order 
     to--
       (A) reduce the processing time under the disability 
     evaluation system of members of the Armed Forces who are 
     likely to be retired or separated for disability, and who 
     have not requested continuation on active duty, including, in 
     particular, members who are severely wounded;
       (B) identify and implement or seek the modification of 
     statutory or administrative policies and requirements 
     applicable to the disability evaluation system that--
       (i) are unnecessary or contrary to applicable best 
     practices of civilian employers and civilian healthcare 
     systems; or
       (ii) otherwise result in hardship, arbitrary, or 
     inconsistent outcomes for members of the Armed Forces, or 
     unwarranted inefficiencies and delays;
       (C) eliminate material variations in policies, 
     interpretations, and overall performance standards among the 
     military departments under the disability evaluation system; 
     and
       (D) determine whether it enhances the capability of the 
     Department of Veterans Affairs to receive and determine 
     claims from members of the Armed Forces for compensation, 
     pension, hospitalization, or other veterans benefits.
       (2) In conjunction with the findings and recommendations of 
     applicable Presidential and Department of Defense study 
     groups, to provide for the eventual development of revised 
     and improved practices and procedures for the disability 
     evaluation system in order to achieve the objectives set 
     forth in paragraph (1).
       (d) Utilization of Results in Updates of Comprehensive 
     Policy on Care, Management, and Transition of Recovering 
     Service Members.--The Secretary of Defense and the Secretary 
     of Veterans Affairs, acting jointly, may incorporate 
     responses to any findings and recommendations arising under 
     the pilot programs conducted under subsection (a) in updating 
     the comprehensive policy on the care and management of 
     covered service members under section 1611(a)(4).
       (e) Construction With Other Authorities.--
       (1) In general.--Subject to paragraph (2), in carrying out 
     a pilot program under subsection (a)--
       (A) the rules and regulations of the Department of Defense 
     and the Department of Veterans Affairs relating to methods of 
     determining fitness or unfitness for duty and disability 
     ratings for members of the Armed Forces shall apply to the 
     pilot program only to the extent provided in the report on 
     the pilot program under subsection (g)(1); and
       (B) the Secretary of Defense and the Secretary of Veterans 
     Affairs may waive any provision of title 10, 37, or 38, 
     United States Code, relating to methods of determining 
     fitness or unfitness for duty and disability ratings for 
     members of the Armed Forces if the Secretaries determine in 
     writing that the application of such provision would be 
     inconsistent with the purpose of the pilot program.
       (2) Limitation.--Nothing in paragraph (1) shall be 
     construed to authorize the waiver of any provision of section 
     1216a of title 10, United States Code, as added by section 
     1642 of this Act.
       (f) Duration.--Each pilot program conducted under 
     subsection (a) shall be completed not later than one year 
     after the date of the commencement of such pilot program 
     under that subsection.
       (g) Reports.--
       (1) Initial report.--Not later than 90 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     submit to the appropriate committees of Congress a report on 
     each pilot program that has been commenced as of that date 
     under subsection (a). The report shall include--
       (A) a description of the scope and objectives of the pilot 
     program;
       (B) a description of the methodology to be used under the 
     pilot program to ensure rapid identification under such pilot 
     program of revised or improved practices under the disability 
     evaluation system in order to achieve the objectives set 
     forth in subsection (c)(1); and
       (C) a statement of any provision described in subsection 
     (e)(1)(B) that will not apply to the pilot program by reason 
     of a waiver under that subsection.
       (2) Interim report.--Not later than 180 days after the date 
     of the submittal of the report required by paragraph (1) with 
     respect to a pilot program, the Secretary shall submit to the 
     appropriate committees of Congress a report describing the 
     current status of the pilot program.
       (3) Final report.--Not later than 90 days after the 
     completion of all of the pilot programs conducted under 
     subsection (a), the Secretary shall submit to the appropriate 
     committees of Congress a report setting forth a final 
     evaluation and assessment of the pilot programs. The report 
     shall include such recommendations for legislative or 
     administrative action as the Secretary considers appropriate 
     in light of such pilot programs.

     SEC. 1645. REPORTS ON ARMY ACTION PLAN IN RESPONSE TO 
                   DEFICIENCIES IN THE ARMY PHYSICAL DISABILITY 
                   EVALUATION SYSTEM.

       (a) Reports Required.--Not later than June 1, 2008, and 
     June 1, 2009, the Secretary of Defense shall submit to the 
     congressional defense

[[Page 32649]]

     committees a report on the implementation of corrective 
     measures by the Department of Defense with respect to the 
     Physical Disability Evaluation System (PDES) in response to 
     the following:
       (1) The report of the Inspector General of the Army on that 
     system of March 6, 2007.
       (2) The report of the Independent Review Group on 
     Rehabilitation Care and Administrative Processes at Walter 
     Reed Army Medical Center and National Naval Medical Center.
       (3) The report of the Department of Veterans Affairs Task 
     Force on Returning Global War on Terror Heroes.
       (b) Elements of Report.--Each report under subsection (a) 
     shall include current information on the following:
       (1) The total number of cases, and the number of cases 
     involving combat disabled service members, pending resolution 
     before the Medical and Physical Disability Evaluation Boards 
     of the Army, including information on the number of members 
     of the Army who have been in a medical hold or holdover 
     status for more than each of 100, 200, and 300 days.
       (2) The status of the implementation of modifications to 
     disability evaluation processes of the Department of Defense 
     in response to the following:
       (A) The report of the Inspector General on such processes 
     dated March 6, 2007.
       (B) The report of the Independent Review Group on 
     Rehabilitation Care and Administrative Processes at Walter 
     Reed Army Medical Center and National Naval Medical Center.
       (C) The report of the Department of Veterans Affairs Task 
     Force on Returning Global War on Terror Heroes.
       (c) Posting on Internet.--Not later than 24 hours after 
     submitting a report under subsection (a), the Secretary shall 
     post such report on the Internet website of the Department of 
     Defense that is available to the public.

     SEC. 1646. ENHANCEMENT OF DISABILITY SEVERANCE PAY FOR 
                   MEMBERS OF THE ARMED FORCES.

       (a) In General.--Section 1212 of title 10, United States 
     Code, is amended--
       (1) in subsection (a)(1), by striking ``his years of 
     service, but not more than 12, computed under section 1208 of 
     this title'' in the matter preceding subparagraph (A) and 
     inserting ``the member's years of service computed under 
     section 1208 of this title (subject to the minimum and 
     maximum years of service provided for in subsection (c))'';
       (2) by redesignating subsection (c) as subsection (d); and
       (3) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c)(1) The minimum years of service of a member for 
     purposes of subsection (a)(1) shall be as follows:
       ``(A) Six years in the case of a member separated from the 
     armed forces for a disability incurred in line of duty in a 
     combat zone (as designated by the Secretary of Defense for 
     purposes of this subsection) or incurred during the 
     performance of duty in combat-related operations as 
     designated by the Secretary of Defense.
       ``(B) Three years in the case of any other member.
       ``(2) The maximum years of service of a member for purposes 
     of subsection (a)(1) shall be 19 years.''.
       (b) No Deduction From Compensation of Severance Pay for 
     Disabilities Incurred in Combat Zones.--Subsection (d) of 
     such section, as redesignated by subsection (a)(2) of this 
     section, is further amended--
       (1) by inserting ``(1)'' after ``(d)'';
       (2) by striking the second sentence; and
       (3) by adding at the end the following new paragraphs:
       ``(2) No deduction may be made under paragraph (1) in the 
     case of disability severance pay received by a member for a 
     disability incurred in line of duty in a combat zone or 
     incurred during performance of duty in combat-related 
     operations as designated by the Secretary of Defense.
       ``(3) No deduction may be made under paragraph (1) from any 
     death compensation to which a member's dependents become 
     entitled after the member's death.''.
       (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 members of the Armed Forces 
     separated from the Armed Forces under chapter 61 of title 10, 
     United States Code, on or after that date.

     SEC. 1647. ASSESSMENTS OF CONTINUING UTILITY AND FUTURE ROLE 
                   OF TEMPORARY DISABILITY RETIRED LIST.

       (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 
     containing--
       (1) a statistical history since January 1, 2000, of the 
     numbers of members of the Armed Forces who are returned to 
     duty or separated following a tenure on the temporary 
     disability retired list and, in the case of members who were 
     separated, how many of the members were granted disability 
     separation or retirement and what were their disability 
     ratings;
       (2) the results of the assessments required by subsection 
     (b); and
       (3) such recommendations for the modification or 
     improvement of the temporary disability retired list as the 
     Secretary considers appropriate in response to the 
     assessments.
       (b) Required Assessments.--The assessments required to be 
     conducted as part of the report under subsection (a) are the 
     following:
       (1) An assessment of the continuing utility of the 
     temporary disability retired list in satisfying the purposes 
     for which the temporary disability retired list was 
     established.
       (2) An assessment of the need to require that the condition 
     of a member be permanent and stable before the member is 
     separated with less than a 30 percent disability rating prior 
     to exceeding the maximum tenure allowed on the temporary 
     disability retired list.
       (3) An assessment of the future role of the temporary 
     disability retired list in the Disability Evaluation System 
     of the Department of Defense and the changes in policy and 
     law required to fulfill the future role of the temporary 
     disability retire list.

     SEC. 1648. STANDARDS FOR MILITARY MEDICAL TREATMENT 
                   FACILITIES, SPECIALTY MEDICAL CARE FACILITIES, 
                   AND MILITARY QUARTERS HOUSING PATIENTS AND 
                   ANNUAL REPORT ON SUCH FACILITIES.

       (a) Establishment of Standards.--The Secretary of Defense 
     shall establish for the military facilities of the Department 
     of Defense and the military departments referred to in 
     subsection (b) standards with respect to the matters set 
     forth in subsection (c). To the maximum extent practicable, 
     the standards shall--
       (1) be uniform and consistent for all such facilities; and
       (2) be uniform and consistent throughout the Department of 
     Defense and the military departments.
       (b) Covered Military Facilities.--The military facilities 
     covered by this section are the following:
       (1) Military medical treatment facilities.
       (2) Specialty medical care facilities.
       (3) Military quarters or leased housing for patients.
       (c) Scope of Standards.--The standards required by 
     subsection (a) shall include the following:
       (1) Generally accepted standards for the accreditation of 
     medical facilities, or for facilities used to quarter 
     individuals that may require medical supervision, as 
     applicable, in the United States.
       (2) To the extent not inconsistent with the standards 
     described in paragraph (1), minimally acceptable conditions 
     for the following:
       (A) Appearance and maintenance of facilities generally, 
     including the structure and roofs of facilities.
       (B) Size, appearance, and maintenance of rooms housing or 
     utilized by patients, including furniture and amenities in 
     such rooms.
       (C) Operation and maintenance of primary and back-up 
     facility utility systems and other systems required for 
     patient care, including electrical systems, plumbing systems, 
     heating, ventilation, and air conditioning systems, 
     communications systems, fire protection systems, energy 
     management systems, and other systems required for patient 
     care.
       (D) Compliance of facilities, rooms, and grounds, to the 
     maximum extent practicable, with the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12101 et seq.).
       (E) Such other matters relating to the appearance, size, 
     operation, and maintenance of facilities and rooms as the 
     Secretary considers appropriate.
       (d) Compliance With Standards.--
       (1) Deadline.--In establishing standards under subsection 
     (a), the Secretary shall specify a deadline for compliance 
     with such standards by each facility referred to in 
     subsection (b). The deadline shall be at the earliest date 
     practicable after the date of the enactment of this Act, and 
     shall, to the maximum extent practicable, be uniform across 
     the facilities referred to in subsection (b).
       (2) Investment.--In carrying out this section, the 
     Secretary shall also establish guidelines for investment to 
     be utilized by the Department of Defense and the military 
     departments in determining the allocation of financial 
     resources to facilities referred to in subsection (b) in 
     order to meet the deadline specified under paragraph (1).
       (e) Report on Development and Implementation of 
     Standards.--
       (1) In general.--Not later than March 1, 2008, the 
     Secretary shall submit to the congressional defense 
     committees a report on the actions taken to carry out 
     subsection (a).
       (2) Elements.--The report under paragraph (1) shall include 
     the following:
       (A) The standards established under subsection (a).
       (B) An assessment of the appearance, condition, and 
     maintenance of each facility referred to in subsection (b), 
     including--
       (i) an assessment of the compliance of the facility with 
     the standards established under subsection (a); and
       (ii) a description of any deficiency or noncompliance in 
     each facility with the standards.
       (C) A description of the investment to be allocated to 
     address each deficiency or noncompliance identified under 
     subparagraph (B)(ii).
       (f) Annual Report.--Not later than the date on which the 
     President submits the budget for a fiscal year to Congress 
     pursuant to section 1105 of title 31, United States Code, the 
     Secretary shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a report on the 
     adequacy, suitability, and quality of each facility referred 
     to in subsection (b). The Secretary shall include in each 
     report information regarding--
       (1) any deficiencies in the adequacy, quality, or state of 
     repair of medical-related support facilities raised as a 
     result of information received during the period covered by 
     the report through the toll-free hot line required by section 
     1616; and

[[Page 32650]]

       (2) the investigations conducted and plans of action 
     prepared under such section to respond to such deficiencies.

     SEC. 1649. REPORTS ON ARMY MEDICAL ACTION PLAN IN RESPONSE TO 
                   DEFICIENCIES IDENTIFIED AT WALTER REED ARMY 
                   MEDICAL CENTER, DISTRICT OF COLUMBIA.

       Not later than 30 days after the date of the enactment of 
     this Act, and every 180 days thereafter until March 1, 2009, 
     the Secretary of Defense shall submit to the congressional 
     defense committees a report on the implementation of the Army 
     Medical Action Plan to correct deficiencies identified in the 
     condition of facilities and patient administration.

     SEC. 1650. REQUIRED CERTIFICATIONS IN CONNECTION WITH CLOSURE 
                   OF WALTER REED ARMY MEDICAL CENTER, DISTRICT OF 
                   COLUMBIA.

       (a) Certifications.--In implementing the decision to close 
     Walter Reed Army Medical Center, District of Columbia, 
     required as a result 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; U.S.C. 2687 note), the Secretary of Defense shall 
     submit to the congressional defense committees a 
     certification of each of the following:
       (1) That a transition plan has been developed, and 
     resources have been committed, to ensure that patient care 
     services, medical operations, and facilities are sustained at 
     the highest possible level at Walter Reed Army Medical Center 
     until facilities to replace Walter Reed Army Medical Center 
     are staffed and ready to assume at least the same level of 
     care previously provided at Walter Reed Army Medical Center.
       (2) That the closure of Walter Reed Army Medical Center 
     will not result in a net loss of capacity in the major 
     medical centers in the National Capitol Region in terms of 
     total bed capacity or staffed bed capacity.
       (3) That the capacity of medical hold and out-patient 
     lodging facilities operating at Walter Reed Army Medical 
     Center as of the date of the certification will be available 
     in sufficient quantities at the facilities designated to 
     replace Walter Reed Army Medical Center by the date of the 
     closure of Walter Reed Army Medical Center.
       (b) Time for Submittal.--The Secretary shall submit the 
     certifications required by subsection (a) not later than 90 
     days after the date of the enactment of this Act. If the 
     Secretary is unable to make one or more of the certifications 
     by the end of the 90-day period, the Secretary shall notify 
     the congressional defense committees of the delay and the 
     reasons for the delay.

     SEC. 1651. HANDBOOK FOR MEMBERS OF THE ARMED FORCES ON 
                   COMPENSATION AND BENEFITS AVAILABLE FOR SERIOUS 
                   INJURIES AND ILLNESSES.

       (a) Information on Available Compensation and Benefits.--
     Not later than October 1, 2008, the Secretary of Defense 
     shall develop and maintain, in handbook and electronic form, 
     a comprehensive description of the compensation and other 
     benefits to which a member of the Armed Forces, and the 
     family of such member, would be entitled upon the separation 
     or retirement of the member from the Armed Forces as a result 
     of a serious injury or illness. The handbook shall set forth 
     the range of such compensation and benefits based on grade, 
     length of service, degree of disability at separation or 
     retirement, and such other factors affecting such 
     compensation and benefits as the Secretary considers 
     appropriate.
       (b) Consultation.--The Secretary of Defense shall develop 
     and maintain the comprehensive description required by 
     subsection (a), including the handbook and electronic form of 
     the description, in consultation with the Secretary of 
     Veterans Affairs, the Secretary of Health and Human Services, 
     and the Commissioner of Social Security.
       (c) Update.--The Secretary of Defense shall update the 
     comprehensive description required by subsection (a), 
     including the handbook and electronic form of the 
     description, on a periodic basis, but not less often than 
     annually.
       (d) Provision to Members.--The Secretary of the military 
     department concerned shall provide the descriptive handbook 
     under subsection (a) to each member of the Armed Forces 
     described in that subsection as soon as practicable following 
     the injury or illness qualifying the member for coverage 
     under such subsection.
       (e) Provision to Representatives.--If a member is 
     incapacitated or otherwise unable to receive the descriptive 
     handbook to be provided under subsection (a), the handbook 
     shall be provided to the next of kin or a legal 
     representative of the member, as determined in accordance 
     with regulations prescribed by the Secretary of the military 
     department concerned for purposes of this section.
                    Subtitle E--Studies and Reports

     SEC. 1661. STUDY ON PHYSICAL AND MENTAL HEALTH AND OTHER 
                   READJUSTMENT NEEDS OF MEMBERS AND FORMER 
                   MEMBERS OF THE ARMED FORCES WHO DEPLOYED IN 
                   OPERATION IRAQI FREEDOM AND OPERATION ENDURING 
                   FREEDOM AND THEIR FAMILIES.

       (a) Study Required.--The Secretary of Defense shall, in 
     consultation with the Secretary of Veterans Affairs, enter 
     into an agreement with the National Academy of Sciences for a 
     study on the physical and mental health and other 
     readjustment needs of members and former members of the Armed 
     Forces who deployed in Operation Iraqi Freedom or Operation 
     Enduring Freedom and their families as a result of such 
     deployment.
       (b) Phases.--The study required under subsection (a) shall 
     consist of two phases:
       (1) A preliminary phase, to be completed not later than one 
     year after the date of the enactment of this Act--
       (A) to identify preliminary findings on the physical and 
     mental health and other readjustment needs described in 
     subsection (a) and on gaps in care for the members, former 
     members, and families described in that subsection; and
       (B) to determine the parameters of the second phase of the 
     study under paragraph (2).
       (2) A second phase, to be completed not later than three 
     years after the date of the enactment of this Act, to carry 
     out a comprehensive assessment, in accordance with the 
     parameters identified under the preliminary report required 
     by paragraph (1), of the physical and mental health and other 
     readjustment needs of members and former members of the Armed 
     Forces who deployed in Operation Iraqi Freedom or Operation 
     Enduring Freedom and their families as a result of such 
     deployment, including, at a minimum--
       (A) an assessment of the psychological, social, and 
     economic impacts of such deployment on such members and 
     former members and their families;
       (B) an assessment of the particular impacts of multiple 
     deployments in Operation Iraqi Freedom or Operation Enduring 
     Freedom on such members and former members and their 
     families;
       (C) an assessment of the full scope of the neurological, 
     psychiatric, and psychological effects of traumatic brain 
     injury on members and former members of the Armed Forces, 
     including the effects of such effects on the family members 
     of such members and former members, and an assessment of the 
     efficacy of current treatment approaches for traumatic brain 
     injury in the United States and the efficacy of screenings 
     and treatment approaches for traumatic brain injury within 
     the Department of Defense and the Department of Veterans 
     Affairs;
       (D) an assessment of the effects of undiagnosed injuries 
     such as post-traumatic stress disorder and traumatic brain 
     injury, an estimate of the long-term costs associated with 
     such injuries, and an assessment of the efficacy of 
     screenings and treatment approaches for post-traumatic stress 
     disorder and other mental health conditions within the 
     Department of Defense and Department of Veterans Affairs;
       (E) an assessment of the gender- and ethnic group-specific 
     needs and concerns of members of the Armed Forces and 
     veterans;
       (F) an assessment of the particular needs and concerns of 
     children of members of the Armed Forces, taking into account 
     differing age groups, impacts on development and education, 
     and the mental and emotional well being of children;
       (G) an assessment of the particular educational and 
     vocational needs of such members and former members and their 
     families, and an assessment of the efficacy of existing 
     educational and vocational programs to address such needs;
       (H) an assessment of the impacts on communities with high 
     populations of military families, including military housing 
     communities and townships with deployed members of the 
     National Guard and Reserve, of deployments associated with 
     Operation Iraqi Freedom and Operation Enduring Freedom, and 
     an assessment of the efficacy of programs that address 
     community outreach and education concerning military 
     deployments of community residents;
       (I) an assessment of the impacts of increasing numbers of 
     older and married members of the Armed Forces on readjustment 
     requirements;
       (J) the development, based on such assessments, of 
     recommendations for programs, treatments, or policy remedies 
     targeted at preventing, minimizing, or addressing the 
     impacts, gaps, and needs identified; and
       (K) the development, based on such assessments, of 
     recommendations for additional research on such needs.
       (c) Populations To Be Studied.--The study required under 
     subsection (a) shall consider the readjustment needs of each 
     population of individuals as follows:
       (1) Members of the regular components of the Armed Forces 
     who are returning, or have returned, to the United States 
     from deployment in Operation Iraqi Freedom or Operation 
     Enduring Freedom.
       (2) Members of the National Guard and Reserve who are 
     returning, or have returned, to the United States from 
     deployment in Operation Iraqi Freedom or Operation Enduring 
     Freedom.
       (3) Veterans of Operation Iraqi Freedom or Operation 
     Enduring Freedom.
       (4) Family members of the members and veterans described in 
     paragraphs (1) through (3).
       (d) Access to Information.--The National Academy of 
     Sciences shall have access to such personnel, information, 
     records, and systems of the Department of Defense and the 
     Department of Veterans Affairs as the National Academy of 
     Sciences requires in order to carry out the study required 
     under subsection (a).
       (e) Privacy of Information.--The National Academy of 
     Sciences shall maintain any personally identifiable 
     information accessed by the Academy in carrying out the study 
     required under subsection (a) in accordance with all 
     applicable laws, protections, and best practices regarding 
     the privacy of such information, and may not permit access to 
     such information by any persons or entities not engaged in 
     work under the study.
       (f) Reports by National Academy of Sciences.--Upon the 
     completion of each phase of the study required under 
     subsection (a), the National Academy of Sciences shall submit 
     to the Secretary of Defense, the Secretary of Veterans 
     Affairs, and the congressional defense committees a report on 
     such phase of the study.

[[Page 32651]]

       (g) DoD and VA Response to NAS Reports.--Not later than 90 
     days after the receipt of a report under subsection (f) on 
     each phase of the study required under subsection (a), the 
     Secretary of Defense and the Secretary of Veterans Affairs 
     shall develop a final joint Department of Defense-Department 
     of Veterans Affairs response to the findings and 
     recommendations of the National Academy of Sciences contained 
     in such report.

     SEC. 1662. ACCESS OF RECOVERING SERVICE MEMBERS TO ADEQUATE 
                   OUTPATIENT RESIDENTIAL FACILITIES.

       (a) Required Inspections of Facilities.--All quarters of 
     the United States and housing facilities under the 
     jurisdiction of the Armed Forces that are occupied by 
     recovering service members shall be inspected on a semiannual 
     basis for the first two years after the enactment of this Act 
     and annually thereafter by the inspectors general of the 
     regional medical commands.
       (b) Inspector General Reports.--The inspector general for 
     each regional medical command shall--
       (1) submit a report on each inspection of a facility 
     conducted under subsection (a) to the post commander at such 
     facility, the commanding officer of the hospital affiliated 
     with such facility, the surgeon general of the military 
     department that operates such hospital, the Secretary of the 
     military department concerned, the Assistant Secretary of 
     Defense for Health Affairs, and the congressional defense 
     committees; and
       (2) post each such report on the Internet website of such 
     regional medical command.

     SEC. 1663. STUDY AND REPORT ON SUPPORT SERVICES FOR FAMILIES 
                   OF RECOVERING SERVICE MEMBERS.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a study of the provision of support services for families of 
     recovering service members.
       (b) Matters Covered.--The study under subsection (a) shall 
     include the following:
       (1) A determination of the types of support services, 
     including job placement services, that are currently provided 
     by the Department of Defense to eligible family members, and 
     the cost of providing such services.
       (2) A determination of additional types of support services 
     that would be feasible for the Department to provide to such 
     family members, and the costs of providing such services, 
     including the following types of services:
       (A) The provision of medical care at military medical 
     treatment facilities.
       (B) The provision of additional employment services, and 
     the need for employment protection, of such family members 
     who are placed on leave from employment or otherwise 
     displaced from employment while caring for a recovering 
     service member for more than 45 days during a one-year 
     period.
       (C) The provision of meals without charge at military 
     medical treatment facilities.
       (3) A survey of military medical treatment facilities to 
     estimate the number of family members to whom the support 
     services would be provided.
       (4) A determination of any discrimination in employment 
     that such family members experience, including denial of 
     retention in employment, promotion, or any benefit of 
     employment by an employer on the basis of the person's 
     absence from employment, and a determination, in consultation 
     with the Secretary of Labor, of the options available for 
     such family members.
       (c) Report.--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 results of the 
     study, with such findings and recommendations as the 
     Secretary considers appropriate.

     SEC. 1664. REPORT ON TRAUMATIC BRAIN INJURY CLASSIFICATIONS.

       Not later than 90 days after the date of the enactment of 
     this Act, the Secretary of Defense and the Secretary of 
     Veterans Affairs jointly shall submit to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     a report describing the changes undertaken within the 
     Department of Defense and the Department of Veterans Affairs 
     to ensure that traumatic brain injury victims receive a 
     medical designation concomitant with their injury rather than 
     a medical designation that assigns a generic classification 
     (such as ``organic psychiatric disorder'').

     SEC. 1665. EVALUATION OF THE POLYTRAUMA LIAISON OFFICER/NON-
                   COMMISSIONED OFFICER PROGRAM.

       (a) Evaluation Required.--The Secretary of Defense shall 
     conduct an evaluation of the Polytrauma Liaison Officer/Non-
     Commissioned Officer program, which is the program operated 
     by each of the military departments and the Department of 
     Veterans Affairs for the purpose of--
       (1) assisting in the seamless transition of members of the 
     Armed Forces from the Department of Defense health care 
     system to the Department of Veterans Affairs system; and
       (2) expediting the flow of information and communication 
     between military treatment facilities and the Veterans 
     Affairs Polytrauma Centers.
       (b) Matters Covered.--The evaluation of the Polytrauma 
     Liaison Officer/Non-Commissioned Officer program shall 
     include an evaluation of the following:
       (1) The program's effectiveness in the following areas:
       (A) Handling of military patient transfers.
       (B) Ability to access military records in a timely manner.
       (C) Collaboration with Polytrauma Center treatment teams.
       (D) Collaboration with veteran service organizations.
       (E) Functioning as the Polytrauma Center's subject-matter 
     expert on military issues.
       (F) Supporting and assisting family members.
       (G) Providing education, information, and referrals to 
     members of the Armed Forces and their family members.
       (H) Functioning as uniformed advocates for members of the 
     Armed Forces and their family members.
       (I) Inclusion in Polytrauma Center meetings.
       (J) Completion of required administrative reporting.
       (K) Ability to provide necessary administrative support to 
     all members of the Armed Forces.
       (2) Manpower requirements to effectively carry out all 
     required functions of the Polytrauma Liaison Officer/Non-
     Commissioned Officer program given current and expected case 
     loads.
       (3) Expansion of the program to incorporate Navy and Marine 
     Corps officers and senior enlisted personnel.
       (c) Reporting Requirement.--Not later than 90 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a report containing--
       (1) the results of the evaluation; and
       (2) recommendations for any improvements in the program.
                       Subtitle F--Other Matters

     SEC. 1671. PROHIBITION ON TRANSFER OF RESOURCES FROM MEDICAL 
                   CARE.

       Neither the Secretary of Defense nor the Secretaries of the 
     military departments may transfer funds or personnel from 
     medical care functions to administrative functions within the 
     Department of Defense in order to comply with the new 
     administrative requirements imposed by this title or the 
     amendments made by this title.

     SEC. 1672. MEDICAL CARE FOR FAMILIES OF MEMBERS OF THE ARMED 
                   FORCES RECOVERING FROM SERIOUS INJURIES OR 
                   ILLNESSES.

       (a) Medical Care at Military Medical Facilities.--
       (1) Medical care.--A family member of a recovering service 
     member who is not otherwise eligible for medical care at a 
     military medical treatment facility may be eligible for such 
     care at such facilities, on a space-available basis, if the 
     family member is--
       (A) on invitational orders while caring for the service 
     member;
       (B) a non-medical attendee caring for the service member; 
     or
       (C) receiving per diem payments from the Department of 
     Defense while caring for the service member.
       (2) Specification of family members.--The Secretary of 
     Defense may prescribe in regulations the family members of 
     recovering service members who shall be considered to be a 
     family member of a service member for purposes of this 
     subsection.
       (3) Specification of care.--The Secretary of Defense shall 
     prescribe in regulations the medical care that may be 
     available to family members under this subsection at military 
     medical treatment facilities.
       (4) Recovery of costs.--The United States may recover the 
     costs of the provision of medical care under this subsection 
     as follows (as applicable):
       (A) From third-party payers, in the same manner as the 
     United States may collect costs of the charges of health care 
     provided to covered beneficiaries from third-party payers 
     under section 1095 of title 10, United States Code.
       (B) As if such care was provided under the authority of 
     section 1784 of title 38, United States Code.
       (b) Medical Care at Department of Veterans Affairs Medical 
     Facilities.--
       (1) Medical care.--When a recovering service member is 
     receiving hospital care and medical services at a medical 
     facility of the Department of Veterans Affairs, the Secretary 
     of Veterans Affairs may provide medical care for eligible 
     family members under this section when that care is readily 
     available at that Department facility and on a space-
     available basis.
       (2) Regulations.--The Secretary of Veterans Affairs shall 
     prescribe in regulations the medical care that may be 
     available to family members under this subsection at medical 
     facilities of the Department of Veterans Affairs.

     SEC. 1673. IMPROVEMENT OF MEDICAL TRACKING SYSTEM FOR MEMBERS 
                   OF THE ARMED FORCES DEPLOYED OVERSEAS.

       (a) Protocol for Assessment of Cognitive Functioning.--
       (1) Protocol required.--Subsection (b) of section 1074f of 
     title 10, United States Code, is amended--
       (A) in paragraph (2), by adding at the end the following 
     new subparagraph:
       ``(C) An assessment of post-traumatic stress disorder.''; 
     and
       (B) by adding at the end the following new paragraph:
       ``(3)(A) The Secretary shall establish for purposes of 
     subparagraphs (B) and (C) of paragraph (2) a protocol for the 
     predeployment assessment and documentation of the cognitive 
     (including memory) functioning of a member who is deployed 
     outside the United States in order to facilitate the 
     assessment of the postdeployment cognitive (including memory) 
     functioning of the member.
       ``(B) The protocol under subparagraph (A) shall include 
     appropriate mechanisms to permit the differential diagnosis 
     of traumatic brain injury in members returning from 
     deployment in a combat zone.''.

[[Page 32652]]

       (2) Pilot projects.--(A) In developing the protocol 
     required by paragraph (3) of section 1074f(b) of title 10, 
     United States Code (as amended by paragraph (1) of this 
     subsection), for purposes of assessments for traumatic brain 
     injury, the Secretary of Defense shall conduct up to three 
     pilot projects to evaluate various mechanisms for use in the 
     protocol for such purposes. One of the mechanisms to be so 
     evaluated shall be a computer-based assessment tool which 
     shall, at a minimum, include the following:
       (i) Administration of computer-based neurocognitive 
     assessment.
       (ii) Pre-deployment assessments to establish a 
     neurocognitive baseline for members of the Armed Forces for 
     future treatment.
       (B) Not later than 60 days after the completion of the 
     pilot projects conducted under this paragraph, the Secretary 
     shall submit to the appropriate committees of Congress a 
     report on the pilot projects. The report shall include--
       (i) a description of the pilot projects so conducted;
       (ii) an assessment of the results of each such pilot 
     project; and
       (iii) a description of any mechanisms evaluated under each 
     such pilot project that will be incorporated into the 
     protocol.
       (C) Not later than 180 days after completion of the pilot 
     projects conducted under this paragraph, the Secretary shall 
     establish a means for implementing any mechanism evaluated 
     under such a pilot project that is selected for incorporation 
     in the protocol.
       (b) Quality Assurance.--Subsection (d)(2) of section 1074f 
     of title 10, United States Code, is amended by adding at the 
     end the following new subparagraph:
       ``(F) The diagnosis and treatment of traumatic brain injury 
     and post-traumatic stress disorder.''.
       (c) Standards for Deployment.--Subsection (f) of such 
     section is amended--
       (1) in the subsection heading, by striking ``Mental 
     Health''; and
       (2) in paragraph (2)(B), by striking ``or'' and inserting 
     ``, traumatic brain injury, or''.

     SEC. 1674. GUARANTEED FUNDING FOR WALTER REED ARMY MEDICAL 
                   CENTER, DISTRICT OF COLUMBIA.

       (a) Minimum Funding.--The amount of funds available for the 
     commander of Walter Reed Army Medical Center, District of 
     Columbia, for a fiscal year shall be not less than the amount 
     expended by the commander of Walter Reed Army Medical Center 
     in fiscal year 2006 until the first fiscal year beginning 
     after the date on which the Secretary of Defense submits to 
     the congressional defense committees a plan for the provision 
     of health care for military beneficiaries and their 
     dependents in the National Capital Region.
       (b) Matters Covered.--The plan under subsection (a) shall 
     at a minimum include--
       (1) the manner in which patients, staff, bed capacity, and 
     functions will move from the Walter Reed Army Medical Center 
     to expanded facilities;
       (2) a timeline, including milestones, for such moves;
       (3) projected budgets, including planned budget transfers, 
     for military treatment facilities within the region;
       (4) the management or disposition of real property of 
     military treatment facilities within the region; and
       (5) staffing projections for the region.
       (c) Certification.--After submission of the plan under 
     subsection (a) to the congressional defense committees, the 
     Secretary shall certify to such committees on a quarterly 
     basis that patients, staff, bed capacity, functions, or parts 
     of functions at Walter Reed Army Medical Center have not been 
     moved or disestablished until the expanded facilities at the 
     National Naval Medical Center, Bethesda, Maryland, and DeWitt 
     Army Community Hospital, Fort Belvoir, Virginia, are 
     completed, equipped, and staffed with sufficient capacity to 
     accept and provide, at a minimum, the same level of and 
     access to care as patients received at Walter Reed Army 
     Medical Center during fiscal year 2006.
       (d) Definitions.--In this section:
       (1) The term ``expanded facilities'' means the other two 
     military hospitals/medical centers within the National 
     Capital Region, namely--
       (A) the National Naval Medical Center, Bethesda, Maryland 
     (or its successor resulting from implementation of the 
     recommendations of the 2005 Defense Base Closure and 
     Realignment Commission); and
       (B) the DeWitt Army Community Hospital, Fort Belvoir, 
     Virginia.
       (2) The term ``National Capital Region'' has the meaning 
     given that term in section 2674(f) of title 10, United States 
     Code.

     SEC. 1675. USE OF LEAVE TRANSFER PROGRAM BY WOUNDED VETERANS 
                   WHO ARE FEDERAL EMPLOYEES.

       (a) In General.--Section 6333(b) of title 5, United States 
     Code, is amended--
       (1) by striking ``(b)'' and inserting ``(b)(1)''; and
       (2) by adding at the end the following new paragraph:
       ``(2)(A) The requirement under paragraph (1) relating to 
     exhaustion of annual and sick leave shall not apply in the 
     case of a leave recipient who--
       ``(i) sustains a combat-related disability while a member 
     of the armed forces, including a reserve component of the 
     armed forces; and
       ``(ii) is undergoing medical treatment for that disability.
       ``(B) Subparagraph (A) shall apply to a member described in 
     such subparagraph only so long as the member continues to 
     undergo medical treatment for the disability, but in no event 
     for longer than 5 years from the start of such treatment.
       ``(C) For purposes of this paragraph--
       ``(i) the term `combat-related disability' has the meaning 
     given such term by section 1413a(e) of title 10; and
       ``(ii) the term `medical treatment' has such meaning as the 
     Office of Personnel Management shall by regulation 
     prescribe.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of the enactment of this Act, 
     except that, in the case of a leave recipient who is 
     undergoing medical treatment on such date of enactment, 
     section 6333(b)(2)(B) of title 5, United States Code (as 
     amended by this section) shall be applied as if it had been 
     amended by inserting ``or the date of the enactment of this 
     subsection, whichever is later'' after ``the start of such 
     treatment''.

     SEC. 1676. MORATORIUM ON CONVERSION TO CONTRACTOR PERFORMANCE 
                   OF DEPARTMENT OF DEFENSE FUNCTIONS AT MILITARY 
                   MEDICAL FACILITIES.

       (a) Moratorium.--No study or competition may be begun or 
     announced pursuant to section 2461 of title 10, United States 
     Code, or otherwise pursuant to Office of Management and 
     Budget circular A-76, relating to the possible conversion to 
     performance by a contractor of any Department of Defense 
     function carried out at a military medical facility until the 
     Secretary of Defense--
       (1) submits the certification required by subsection (b) to 
     the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives 
     together with a description of the steps taken by the 
     Secretary in accordance with the certification; and
       (2) submits the report required by subsection (c).
       (b) Certification.--The certification referred to in 
     paragraph (a)(1) is a certification that the Secretary has 
     taken appropriate steps to ensure that neither the quality of 
     military medical care nor the availability of qualified 
     personnel to carry out Department of Defense functions 
     related to military medical care will be adversely affected 
     by either--
       (1) the process of considering a Department of Defense 
     function carried out at a military medical facility for 
     possible conversion to performance by a contractor; or
       (2) the conversion of such a function to performance by a 
     contractor.
       (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 Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report on the public-private competitions 
     being conducted for Department of Defense functions carried 
     out at military medical facilities as of the date of the 
     enactment of this Act by each military department and defense 
     agency. Such report shall include--
       (1) for each such competition--
       (A) the cost of conducting the public-private competition;
       (B) the number of military personnel and civilian employees 
     of the Department of Defense affected;
       (C) the estimated savings identified and the savings 
     actually achieved;
       (D) an evaluation whether the anticipated and budgeted 
     savings can be achieved through a public-private competition; 
     and
       (E) the effect of converting the performance of the 
     function to performance by a contractor on the quality of the 
     performance of the function; and
       (2) an assessment of whether any method of business reform 
     or reengineering other than a public-private competition 
     could, if implemented in the future, achieve any anticipated 
     or budgeted savings.
                      TITLE XVII--VETERANS MATTERS
Sec. 1701. Sense of Congress on Department of Veterans Affairs efforts 
              in the rehabilitation and reintegration of veterans with 
              traumatic brain injury.
Sec. 1702. Individual rehabilitation and community reintegration plans 
              for veterans and others with traumatic brain injury.
Sec. 1703. Use of non-Department of Veterans Affairs facilities for 
              implementation of rehabilitation and community 
              reintegration plans for traumatic brain injury.
Sec. 1704. Research, education, and clinical care program on traumatic 
              brain injury.
Sec. 1705. Pilot program on assisted living services for veterans with 
              traumatic brain injury.
Sec. 1706. Provision of age-appropriate nursing home care.
Sec. 1707. Extension of period of eligibility for health care for 
              veterans of combat service during certain periods of 
              hostilities and war.
Sec. 1708. Service-connection and assessments for mental health 
              conditions in veterans.
Sec. 1709. Modification of requirements for furnishing outpatient 
              dental services to veterans with service-connected dental 
              conditions or disabilities.
Sec. 1710. Clarification of purpose of outreach services program of 
              Department of Veterans Affairs.
Sec. 1711. Designation of fiduciary or trustee for purposes of 
              Traumatic Servicemembers' Group Life Insurance.

[[Page 32653]]



     SEC. 1701. SENSE OF CONGRESS ON DEPARTMENT OF VETERANS 
                   AFFAIRS EFFORTS IN THE REHABILITATION AND 
                   REINTEGRATION OF VETERANS WITH TRAUMATIC BRAIN 
                   INJURY.

       It is the sense of Congress that--
       (1) the Department of Veterans Affairs is a leader in the 
     field of traumatic brain injury care and coordination of such 
     care;
       (2) the Department of Veterans Affairs should have the 
     capacity and expertise to provide veterans who have a 
     traumatic brain injury with patient-centered health care, 
     rehabilitation, and community integration services that are 
     comparable to or exceed similar care and services available 
     to persons with such injuries in the academic and private 
     sector;
       (3) rehabilitation for veterans who have a traumatic brain 
     injury should be individualized, comprehensive, and 
     interdisciplinary with the goals of optimizing the 
     independence of such veterans and reintegrating them into 
     their communities;
       (4) family support is integral to the rehabilitation and 
     community reintegration of veterans who have sustained a 
     traumatic brain injury, and the Department should provide the 
     families of such veterans with education and support;
       (5) the Department of Defense and the Department of 
     Veterans Affairs have made efforts to provide a smooth 
     transition of medical care and rehabilitative services to 
     individuals as they transition from the health care system of 
     the Department of Defense to that of the Department of 
     Veterans Affairs, but more can be done to assist veterans and 
     their families in the continuum of the rehabilitation, 
     recovery, and reintegration of wounded or injured veterans 
     into their communities;
       (6) in planning for rehabilitation and community 
     reintegration of veterans who have a traumatic brain injury, 
     it is necessary for the Department of Veterans Affairs to 
     provide a system for life-long case management for such 
     veterans; and
       (7) in such system for life-long case management, it is 
     necessary to conduct outreach and to tailor specialized 
     traumatic brain injury case management and outreach to the 
     unique needs of veterans with traumatic brain injury who 
     reside in urban and non-urban settings.

     SEC. 1702. INDIVIDUAL REHABILITATION AND COMMUNITY 
                   REINTEGRATION PLANS FOR VETERANS AND OTHERS 
                   WITH TRAUMATIC BRAIN INJURY.

       (a) In General.--Subchapter II of chapter 17 of title 38, 
     United States Code, is amended by inserting after section 
     1710B the following new sections:

     ``Sec. 1710C. Traumatic brain injury: plans for 
       rehabilitation and reintegration into the community

       ``(a) Plan Required.--The Secretary shall, for each 
     individual who is a veteran or member of the Armed Forces who 
     receives inpatient or outpatient rehabilitative hospital care 
     or medical services provided by the Department for a 
     traumatic brain injury--
       ``(1) develop an individualized plan for the rehabilitation 
     and reintegration of the individual into the community; and
       ``(2) provide such plan in writing to the individual--
       ``(A) in the case of an individual receiving inpatient 
     care, before the individual is discharged from inpatient care 
     or after the individual's transition from serving on active 
     duty as a member of the Armed Forces to receiving outpatient 
     care provided by the Department; or
       ``(B) as soon as practicable following a diagnosis of 
     traumatic brain injury by a Department health care provider.
       ``(b) Contents of Plan.--Each plan developed under 
     subsection (a) shall include, for the individual covered by 
     such plan, the following:
       ``(1) Rehabilitation objectives for improving the physical, 
     cognitive, and vocational functioning of the individual with 
     the goal of maximizing the independence and reintegration of 
     such individual into the community.
       ``(2) Access, as warranted, to all appropriate 
     rehabilitative components of the traumatic brain injury 
     continuum of care, and where appropriate, to long-term care 
     services.
       ``(3) A description of specific rehabilitative treatments 
     and other services to achieve the objectives described in 
     paragraph (1), which shall set forth the type, frequency, 
     duration, and location of such treatments and services.
       ``(4) The name of the case manager designated in accordance 
     with subsection (d) to be responsible for the implementation 
     of such plan.
       ``(5) Dates on which the effectiveness of such plan will be 
     reviewed in accordance with subsection (f).
       ``(c) Comprehensive Assessment.--(1) Each plan developed 
     under subsection (a) shall be based on a comprehensive 
     assessment, developed in accordance with paragraph (2), of--
       ``(A) the physical, cognitive, vocational, and 
     neuropsychological and social impairments of the individual; 
     and
       ``(B) the family education and family support needs of the 
     individual after the individual is discharged from inpatient 
     care or at the commencement of and during the receipt of 
     outpatient care and services.
       ``(2) The comprehensive assessment required under paragraph 
     (1) with respect to an individual is a comprehensive 
     assessment of the matters set forth in that paragraph by a 
     team, composed by the Secretary for purposes of the 
     assessment, of individuals with expertise in traumatic brain 
     injury, including any of the following:
       ``(A) A neurologist.
       ``(B) A rehabilitation physician.
       ``(C) A social worker.
       ``(D) A neuropsychologist.
       ``(E) A physical therapist.
       ``(F) A vocational rehabilitation specialist.
       ``(G) An occupational therapist.
       ``(H) A speech language pathologist.
       ``(I) A rehabilitation nurse.
       ``(J) An educational therapist.
       ``(K) An audiologist.
       ``(L) A blind rehabilitation specialist.
       ``(M) A recreational therapist.
       ``(N) A low vision optometrist.
       ``(O) An orthotist or prosthetist.
       ``(P) An assistive technologist or rehabilitation engineer.
       ``(Q) An otolaryngology physician.
       ``(R) A dietician.
       ``(S) An opthamologist.
       ``(T) A psychiatrist.
       ``(d) Case Manager.--(1) The Secretary shall designate a 
     case manager for each individual described in subsection (a) 
     to be responsible for the implementation of the plan 
     developed for that individual under that subsection and the 
     coordination of the individual's medical care.
       ``(2) The Secretary shall ensure that each case manager has 
     specific expertise in the care required by the individual for 
     whom the case manager is designated, regardless of whether 
     the case manager obtains such expertise through experience, 
     education, or training.
       ``(e) Participation and Collaboration in Development of 
     Plans.--(1) The Secretary shall involve each individual 
     described in subsection (a), and the family or legal guardian 
     of such individual, in the development of the plan for such 
     individual under that subsection to the maximum extent 
     practicable.
       ``(2) The Secretary shall collaborate in the development of 
     a plan for an individual under subsection (a) with a State 
     protection and advocacy system if--
       ``(A) the individual covered by the plan requests such 
     collaboration; or
       ``(B) in the case of such an individual who is 
     incapacitated, the family or guardian of the individual 
     requests such collaboration.
       ``(3) In the case of a plan required by subsection (a) for 
     a member of the Armed Forces who is serving on active duty, 
     the Secretary shall collaborate with the Secretary of Defense 
     in the development of such plan.
       ``(4) In developing vocational rehabilitation objectives 
     required under subsection (b)(1) and in conducting the 
     assessment required under subsection (c), the Secretary shall 
     act through the Under Secretary for Health in coordination 
     with the Vocational Rehabilitation and Employment Service of 
     the Department of Veterans Affairs.
       ``(f) Evaluation.--
       ``(1) Periodic review by secretary.--The Secretary shall 
     periodically review the effectiveness of each plan developed 
     under subsection (a). The Secretary shall refine each such 
     plan as the Secretary considers appropriate in light of such 
     review.
       ``(2) Request for review by veterans.--In addition to the 
     periodic review required by paragraph (1), the Secretary 
     shall conduct a review of the plan for an individual under 
     paragraph (1) at the request of the individual, or in the 
     case of an individual who is incapacitated, at the request of 
     the guardian or designee of the individual.
       ``(g) State Designated Protection and Advocacy System 
     Defined.--In this section, the term `State protection and 
     advocacy system' means a system established in a State under 
     subtitle C of the Developmental Disabilities Assistance and 
     Bill of Rights Act of 2000 (42 U.S.C. 15041 et seq.) to 
     protect and advocate for the rights of persons with 
     development disabilities.

     ``Sec. 1710D. Traumatic brain injury: comprehensive program 
       for long-term rehabilitation

       ``(a) Comprehensive Program.--In developing plans for the 
     rehabilitation and reintegration of individuals with 
     traumatic brain injury under section 1710C of this title, the 
     Secretary shall develop and carry out a comprehensive program 
     of long-term care for post-acute traumatic brain injury 
     rehabilitation that includes residential, community, and 
     home-based components utilizing interdisciplinary treatment 
     teams.
       ``(b) Location of Program.--The Secretary shall carry out 
     the program developed under subsection (a) in each Department 
     polytrauma rehabilitation center designated by the Secretary.
       ``(c) Eligibility.--A veteran is eligible for care under 
     the program developed under subsection (a) if the veteran is 
     otherwise eligible to receive hospital care and medical 
     services under section 1710 of this title and--
       ``(1) served on active duty in a theater of combat 
     operations (as determined by the Secretary in consultation 
     with the Secretary of Defense) during a period of war after 
     the Persian Gulf War, or in combat against a hostile force 
     during a period of hostilities (as defined in section 
     1712A(a)(2)(B) of this title) after November 11, 1998;
       ``(2) is diagnosed as suffering from moderate to severe 
     traumatic brain injury; and
       ``(3) is unable to manage routine activities of daily 
     living without supervision or assistance, as determined by 
     the Secretary.
       ``(d) Report.--Not later than one year after the date of 
     the enactment of this section, and annually thereafter, the 
     Secretary shall submit to the Committees on Veterans' Affairs 
     of the Senate and the House of Representatives a report 
     containing the following information:
       ``(1) A description of the operation of the program.

[[Page 32654]]

       ``(2) The number of veterans provided care under the 
     program during the year preceding such report.
       ``(3) The cost of operating the program during the year 
     preceding such report.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1710B the following new items:

``1710C. Traumatic brain injury: plans for rehabilitation and 
              reintegration into the community.
``1710D. Traumatic brain injury: comprehensive plan for long-term 
              rehabilitation.''.

     SEC. 1703. USE OF NON-DEPARTMENT OF VETERANS AFFAIRS 
                   FACILITIES FOR IMPLEMENTATION OF REHABILITATION 
                   AND COMMUNITY REINTEGRATION PLANS FOR TRAUMATIC 
                   BRAIN INJURY.

       (a) In General.--Subchapter II of chapter 17 of title 38, 
     United States Code, is amended by inserting after section 
     1710D, as added by section 1702, the following new section:

     ``Sec. 1710E. Traumatic brain injury: use of non-Department 
       facilities for rehabilitation

       ``(a) Cooperative Agreements.--The Secretary, in 
     implementing and carrying out a plan developed under section 
     1710C of this title, may provide hospital care and medical 
     services through cooperative agreements with appropriate 
     public or private entities that have established long-term 
     neurobehavioral rehabilitation and recovery programs.
       ``(b) Authorities of State Protection and Advocacy 
     Systems.--Nothing in subtitle C of the Developmental 
     Disabilities Assistance and Bill of Rights Act of 2000 shall 
     be construed as preventing a State protection and advocacy 
     system (as defined in section 1710C(g) of this title) from 
     exercising the authorities described in such subtitle with 
     respect to individuals provided rehabilitative treatment or 
     services under section 1710C of this title in a non-
     Department facility.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1710D, as added by section 1702, the 
     following new item:

``1710E. Traumatic brain injury: use of non-Departmental facilities for 
              rehabilitation.''.

     SEC. 1704. RESEARCH, EDUCATION, AND CLINICAL CARE PROGRAM ON 
                   TRAUMATIC BRAIN INJURY.

       (a) In General.--To improve the provision of health care by 
     the Department of Veterans Affairs to veterans with traumatic 
     brain injuries, the Secretary of Veterans Affairs shall--
       (1) conduct research, including--
       (A) research on the sequelae of mild to severe forms of 
     traumatic brain injury;
       (B) research on visually-related neurological conditions;
       (C) research on seizure disorders;
       (D) research on means of improving the diagnosis, 
     rehabilitative treatment, and prevention of such sequelae;
       (E) research to determine the most effective cognitive and 
     physical therapies for such sequelae;
       (F) research on dual diagnosis of post-traumatic stress 
     disorder and traumatic brain injury;
       (G) research on improving facilities of the Department 
     concentrating on traumatic brain injury care; and
       (H) research on improving the delivery of traumatic brain 
     injury care by the Department;
       (2) educate and train health care personnel of the 
     Department in recognizing and treating traumatic brain 
     injury; and
       (3) develop improved models and systems for the furnishing 
     of traumatic brain injury care by the Department.
       (b) Collaboration.--In carrying out research under 
     subsection (a), the Secretary of Veterans Affairs shall 
     collaborate with--
       (1) facilities that conduct research on rehabilitation for 
     individuals with traumatic brain injury;
       (2) facilities that receive grants for such research from 
     the National Institute on Disability and Rehabilitation 
     Research of the Department of Education; and
       (3) the Defense and Veterans Brain Injury Center of the 
     Department of Defense and other relevant programs of the 
     Federal Government (including Centers of Excellence).
       (c) Dissemination of Useful Information.--The Under 
     Secretary of Veterans Affairs for Health shall ensure that 
     information produced by the research, education and training, 
     and clinical activities conducted under this section that may 
     be useful for other activities of the Veterans Health 
     Administration is disseminated throughout the Veterans Health 
     Administration.
       (d) Traumatic Brain Injury Registry.--
       (1) In general.--The Secretary of Veterans Affairs shall 
     establish and maintain a registry to be known as the 
     ``Traumatic Brain Injury Veterans Health Registry'' (in this 
     section referred to as the ``Registry'').
       (2) Description.--The Registry shall include the following 
     information:
       (A) A list containing the name of each individual who 
     served as a member of the Armed Forces in Operation Enduring 
     Freedom or Operation Iraqi Freedom who exhibits symptoms 
     associated with traumatic brain injury, as determined by the 
     Secretary of Veterans Affairs, and who--
       (i) applies for care and services furnished by the 
     Department of Veterans Affairs under chapter 17 of title 38, 
     United States Code; or
       (ii) files a claim for compensation under chapter 11 of 
     such title on the basis of any disability which may be 
     associated with such service.
       (B) Any relevant medical data relating to the health status 
     of an individual described in subparagraph (A) and any other 
     information the Secretary considers relevant and appropriate 
     with respect to such an individual if the individual--
       (i) grants permission to the Secretary to include such 
     information in the Registry; or
       (ii) is deceased at the time such individual is listed in 
     the Registry.
       (3) Notification.--When possible, the Secretary shall 
     notify each individual listed in the Registry of significant 
     developments in research on the health consequences of 
     military service in the Operation Enduring Freedom and 
     Operation Iraqi Freedom theaters of operations.

     SEC. 1705. PILOT PROGRAM ON ASSISTED LIVING SERVICES FOR 
                   VETERANS WITH TRAUMATIC BRAIN INJURY.

       (a) Pilot Program.--Beginning not later than 90 days after 
     the date of the enactment of this Act, the Secretary of 
     Veterans Affairs, in collaboration with the Defense and 
     Veterans Brain Injury Center of the Department of Defense, 
     shall carry out a five-year pilot program to assess the 
     effectiveness of providing assisted living services to 
     eligible veterans to enhance the rehabilitation, quality of 
     life, and community integration of such veterans.
       (b) Program Locations.--
       (1) In general.--The pilot program shall be carried out at 
     locations selected by the Secretary for purposes of the pilot 
     program. Of the locations so selected--
       (A) at least one location shall be in each health care 
     region of the Veterans Health Administration of the 
     Department of Veterans Affairs that contains a polytrauma 
     center of the Department of Veterans Affairs; and
       (B) any location other than a location described in 
     subparagraph (A) shall be in an area that contains a high 
     concentration of veterans with traumatic brain injuries, as 
     determined by the Secretary.
       (2) Special consideration for veterans in rural areas.--The 
     Secretary shall give special consideration to providing 
     veterans in rural areas with an opportunity to participate in 
     the pilot program.
       (c) Provision of Assisted Living Services.--
       (1) Agreements.--In carrying out the pilot program, the 
     Secretary may enter into agreements for the provision of 
     assisted living services on behalf of eligible veterans with 
     a provider participating under a State plan or waiver under 
     title XIX of the Social Security Act (42 U.S.C. 1396 et 
     seq.).
       (2) Standards.--The Secretary may not place, transfer, or 
     admit a veteran to any facility for assisted living services 
     under the pilot program unless the Secretary determines that 
     the facility meets such standards as the Secretary may 
     prescribe for purposes of the pilot program. Such standards 
     shall, to the extent practicable, be consistent with the 
     standards of Federal, State, and local agencies charged with 
     the responsibility of licensing or otherwise regulating or 
     inspecting such facilities.
       (d) Continuation of Case Management and Rehabilitation 
     Services.--In carrying out the pilot program, the Secretary 
     shall--
       (1) continue to provide each veteran who is receiving 
     assisted living services under the pilot program with 
     rehabilitative services; and
       (2) designate employees of the Veterans Health 
     Administration of the Department of Veterans Affairs to 
     furnish case management services for veterans participating 
     in the pilot program.
       (e) Report.--
       (1) In general.--Not later than 60 days after the 
     completion of the pilot program, the Secretary shall submit 
     to the Committees on Veterans' Affairs of the Senate and 
     House of Representatives a report on the pilot program.
       (2) Contents.--The report required by paragraph (1) shall 
     include the following:
       (A) A description of the pilot program.
       (B) An assessment of the utility of the activities under 
     the pilot program in enhancing the rehabilitation, quality of 
     life, and community reintegration of veterans with traumatic 
     brain injury.
       (C) Such recommendations as the Secretary considers 
     appropriate regarding the extension or expansion of the pilot 
     program.
       (f) Definitions.--In this section:
       (1) The term ``assisted living services'' means services of 
     a facility in providing room, board, and personal care for 
     and supervision of residents for their health, safety, and 
     welfare.
       (2) The term ``case management services'' includes the 
     coordination and facilitation of all services furnished to a 
     veteran by the Department of Veterans Affairs, either 
     directly or through a contract, including assessment of 
     needs, planning, referral (including referral for services to 
     be furnished by the Department, either directly or through a 
     contract, or by an entity other than the Department), 
     monitoring, reassessment, and followup.
       (3) The term ``eligible veteran'' means a veteran who--
       (A) is enrolled in the patient enrollment system of the 
     Department of Veterans Affairs under section 1705 of title 
     38, United States Code;
       (B) has received hospital care or medical services provided 
     by the Department of Veterans Affairs for a traumatic brain 
     injury;
       (C) is unable to manage routine activities of daily living 
     without supervision and assistance, as determined by the 
     Secretary; and
       (D) could reasonably be expected to receive ongoing 
     services after the end of the pilot program under this 
     section under another program

[[Page 32655]]

     of the Federal Government or through other means, as 
     determined by the Secretary.

     SEC. 1706. PROVISION OF AGE-APPROPRIATE NURSING HOME CARE.

       (a) Finding.--Congress finds that young veterans who are 
     injured or disabled through military service and require 
     long-term care should have access to age-appropriate nursing 
     home care.
       (b) Requirement To Provide Age-Appropriate Nursing Home 
     Care.--Section 1710A of title 38, United States Code, is 
     amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) The Secretary shall ensure that nursing home care 
     provided under subsection (a) is provided in an age-
     appropriate manner.''.

     SEC. 1707. EXTENSION OF PERIOD OF ELIGIBILITY FOR HEALTH CARE 
                   FOR VETERANS OF COMBAT SERVICE DURING CERTAIN 
                   PERIODS OF HOSTILITIES AND WAR.

       Subparagraph (C) of section 1710(e)(3) of title 38, United 
     States Code, is amended to read as follows:
       ``(C) in the case of care for a veteran described in 
     paragraph (1)(D) who--
       ``(i) is discharged or released from the active military, 
     naval, or air service after the date that is five years 
     before the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2008, after a period of 
     five years beginning on the date of such discharge or 
     release; or
       ``(ii) is so discharged or released more than five years 
     before the date of the enactment of that Act and who did not 
     enroll in the patient enrollment system under section 1705 of 
     this title before such date, after a period of three years 
     beginning on the date of the enactment of that Act; and''.

     SEC. 1708. SERVICE-CONNECTION AND ASSESSMENTS FOR MENTAL 
                   HEALTH CONDITIONS IN VETERANS.

       (a) Presumption of Service-Connection for Mental Illness in 
     Persian Gulf War Veterans.--
       (1) In general.--Section 1702 of title 38, United States 
     Code, is amended--
       (A) by inserting ``(a) Psychosis.--'' before ``For the 
     purposes''; and
       (B) by adding at the end the following new subsection:
       ``(b) Mental Illness.--For purposes of this chapter, any 
     veteran of the Persian Gulf War who develops an active mental 
     illness (other than psychosis) shall be deemed to have 
     incurred such disability in the active military, naval, or 
     air service if such veteran develops such disability--
       ``(1) within two years after discharge or release from the 
     active military, naval, or air service; and
       ``(2) before the end of the two-year period beginning on 
     the last day of the Persian Gulf War.''.
       (2) Heading amendment.--The heading of such section is 
     amended to read as follows:

     ``Sec. 1702. Presumptions: psychosis after service in World 
       War II and following periods of war; mental illness after 
       service in the Persian Gulf War''.

       (3) Clerical amendment.--The table of sections at the 
     beginning of chapter 17 of such title is amended by striking 
     the item relating to section 1702 and inserting the following 
     new item:

``1702. Presumptions: psychosis after service in World War II and 
              following periods of war; mental illness following 
              service in the Persian Gulf War.''.
       (b) Provision of Mental Health Assessments for Certain 
     Veterans.--Section 1712A(a) of such title is amended--
       (1) in paragraph (1)(B), by adding at the end the following 
     new clause:
       ``(iii) Any veteran who served on active duty--
       ``(I) in a theater of combat operations (as determined by 
     the Secretary in consultation with the Secretary of Defense) 
     during a period of war after the Persian Gulf War; or
       ``(II) in combat against a hostile force during a period of 
     hostilities (as defined in paragraph (2)(B)) after November 
     11, 1998.''; and
       (2) by adding at the end the following new paragraph:
       ``(3) Upon request of a veteran described in paragraph 
     (1)(B)(iii), the Secretary shall provide the veteran a 
     preliminary general mental health assessment as soon as 
     practicable after receiving the request, but not later than 
     30 days after receiving the request.''.

     SEC. 1709. MODIFICATION OF REQUIREMENTS FOR FURNISHING 
                   OUTPATIENT DENTAL SERVICES TO VETERANS WITH 
                   SERVICE-CONNECTED DENTAL CONDITIONS OR 
                   DISABILITIES.

       Section 1712(a)(1)(B)(iii) of title 38, United States Code, 
     is amended--
       (1) by striking ``90 days after such discharge'' and 
     inserting ``180 days after such discharge'';
       (2) by striking ``90 days from the date of such veteran's 
     subsequent discharge'' and inserting ``180 days from the date 
     of such veteran's subsequent discharge''; and
       (3) by striking ``90 days after the date of correction'' 
     and inserting ``180 days after the date of correction''.

     SEC. 1710. CLARIFICATION OF PURPOSE OF OUTREACH SERVICES 
                   PROGRAM OF DEPARTMENT OF VETERANS AFFAIRS.

       (a) Clarification of Inclusion of Members of the National 
     Guard and Reserve in Program.--Subsection (a)(1) of section 
     6301 of title 38, United States Code, is amended by inserting 
     ``, or from a reserve component,'' after ``active military, 
     naval, or air service''.
       (b) Definition of Outreach.--Subsection (b) of such section 
     is amended--
       (1) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (3), respectively; and
       (2) by inserting before paragraph (2) the following new 
     paragraph (1):
       ``(1) the term `outreach' means the act or process of 
     reaching out in a systematic manner to proactively provide 
     information, services, and benefits counseling to veterans, 
     and to the spouses, children, and parents of veterans who may 
     be eligible to receive benefits under the laws administered 
     by the Secretary, to ensure that such individuals are fully 
     informed about, and receive assistance in applying for, such 
     benefits;''.

     SEC. 1711. DESIGNATION OF FIDUCIARY OR TRUSTEE FOR PURPOSES 
                   OF TRAUMATIC SERVICEMEMBERS' GROUP LIFE 
                   INSURANCE.

       Section 1980A of title 38, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(k) Designation of Fiduciary or Trustee.--(1) The 
     Secretary concerned, in consultation with the Secretary, 
     shall develop a process for the designation of a fiduciary or 
     trustee of a member of the uniformed services who is insured 
     against traumatic injury under this section. The fiduciary or 
     trustee so designated would receive a payment for a 
     qualifying loss under this section if the member is medically 
     incapacitated (as determined pursuant to regulations 
     prescribed by the Secretary concerned in consultation with 
     the Secretary) or experiencing an extended loss of 
     consciousness.
       ``(2) The process under paragraph (1) may require each 
     member of the uniformed services who is insured under this 
     section to--
       ``(A) designate an individual as the member's fiduciary or 
     trustee for purposes of subsection (a); or
       ``(B) elect that a court of proper jurisdiction designate 
     an individual as the member's fiduciary or trustee for 
     purposes of subsection (a) in the event that the member 
     becomes medically incapacitated or experiences an extended 
     loss of consciousness.''.
     TITLE XVIII--NATIONAL GUARD BUREAU MATTERS AND RELATED MATTERS
Sec. 1801. Short title.

                   Subtitle A--National Guard Bureau

Sec. 1811. Appointment, grade, duties, and retirement of the Chief of 
              the National Guard Bureau.
Sec. 1812. Establishment of National Guard Bureau as joint activity of 
              the Department of Defense.
Sec. 1813. Enhancement of functions of the National Guard Bureau.
Sec. 1814. Requirement for Secretary of Defense to prepare plan for 
              response to natural disasters and terrorist events.
Sec. 1815. Determination of Department of Defense civil support 
              requirements.

          Subtitle B--Additional Reserve Component Enhancement

Sec. 1821. United States Northern Command.
Sec. 1822. Council of Governors.
Sec. 1823. Plan for Reserve Forces Policy Board.
Sec. 1824. High-level positions authorized or required to be held by 
              reserve component general or flag officers.
Sec. 1825. Retirement age and years of service limitations on certain 
              reserve general and flag officers.
Sec. 1826. Additional reporting requirements relating to National Guard 
              equipment.

     SEC. 1801. SHORT TITLE.

       This title may be cited as the ``National Guard Empowerment 
     Act of 2007''.
                   Subtitle A--National Guard Bureau

     SEC. 1811. APPOINTMENT, GRADE, DUTIES, AND RETIREMENT OF THE 
                   CHIEF OF THE NATIONAL GUARD BUREAU.

       (a) Appointment.--Subsection (a) of section 10502 of title 
     10, United States Code, is amended by striking paragraphs (1) 
     through (3) and inserting the following new paragraphs:
       ``(1) are recommended for such appointment by their 
     respective Governors or, in the case of the District of 
     Columbia, the commanding general of the District of Columbia 
     National Guard;
       ``(2) are recommended for such appointment by the Secretary 
     of the Army or the Secretary of the Air Force;
       ``(3) have had at least 10 years of federally recognized 
     commissioned service in an active status in the National 
     Guard;
       ``(4) are in a grade above the grade of brigadier general;
       ``(5) are determined by the Chairman of the Joint Chiefs of 
     Staff, in accordance with criteria and as a result of a 
     process established by the Chairman, to have significant 
     joint duty experience;
       ``(6) are determined by the Secretary of Defense to have 
     successfully completed such other assignments and experiences 
     so as to possess a detailed understanding of the status and 
     capabilities of National Guard forces and the missions of the 
     National Guard Bureau as set forth in section 10503 of this 
     title;
       ``(7) have a level of operational experience in a position 
     of significant responsibility, professional military 
     education, and demonstrated expertise in national defense and 
     homeland defense matters that are commensurate with the 
     advisory role of the Chief of the National Guard Bureau; and
       ``(8) possess such other qualifications as the Secretary of 
     Defense shall prescribe for purposes of this section.''.

[[Page 32656]]

       (b) Grade.--Subsection (d) of such section is amended by 
     striking ``lieutenant general'' and inserting ``general''.
       (c) Repeal of Age 64 Limitation on Service.--Subsection (b) 
     of such section is amended by striking ``An officer may not 
     hold that office after becoming 64 years of age.''.
       (d) Advisory Duties.--Subsection (c) of such section is 
     amended to read as follows:
       ``(c) Advisor on National Guard Matters.--The Chief of the 
     National Guard Bureau is--
       ``(1) a principal advisor to the Secretary of Defense, 
     through the Chairman of the Joint Chiefs of Staff, on matters 
     involving non-federalized National Guard forces and on other 
     matters as determined by the Secretary of Defense; and
       ``(2) the principal adviser to the Secretary of the Army 
     and the Chief of Staff of the Army, and to the Secretary of 
     the Air Force and the Chief of Staff of the Air Force, on 
     matters relating to the National Guard, the Army National 
     Guard of the United States, and the Air National Guard of the 
     United States.''.

     SEC. 1812. ESTABLISHMENT OF NATIONAL GUARD BUREAU AS JOINT 
                   ACTIVITY OF THE DEPARTMENT OF DEFENSE.

       (a) Joint Activity of the Department of Defense.--
     Subsection (a) of section 10501 of title 10, United States 
     Code, is amended by striking ``joint bureau of the Department 
     of the Army and the Department of the Air Force'' and 
     inserting ``joint activity of the Department of Defense''.
       (b) Joint Manpower Requirements.--
       (1) In general.--Chapter 1011 of such title is amended by 
     adding at the end the following new section:

     ``Sec. 10508. National Guard Bureau: general provisions

       ``The manpower requirements of the National Guard Bureau as 
     a joint activity of the Department of Defense shall be 
     determined in accordance with regulations prescribed by the 
     Secretary of Defense, in consultation with the Chairman of 
     the Joint Chiefs of Staff.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``10508. National Guard Bureau: general provisions.''.

     SEC. 1813. ENHANCEMENT OF FUNCTIONS OF THE NATIONAL GUARD 
                   BUREAU.

       (a) Additional General Functions.--Section 10503 of title 
     10, United States Code, is amended--
       (1) by redesignating paragraph (12) as paragraph (14) and 
     inserting before such paragraph (14) the following new 
     paragraph (13):
       ``(13)(A) Assisting the Secretary of Defense in 
     facilitating and coordinating with the entities listed in 
     subparagraph (B) the use of National Guard personnel and 
     resources for operations conducted under title 32, or in 
     support of State missions.
       ``(B) The entities listed in this subparagraph for purposes 
     of subparagraph (A) are the following:
       ``(i) Other Federal agencies.
       ``(ii) The Adjutants General of the States.
       ``(iii) The United States Joint Forces Command.
       ``(iv) The combatant command the geographic area of 
     responsibility of which includes the United States.'';
       (2) by redesignating paragraphs (2) through (11) as 
     paragraphs (3) through (12), respectively; and
       (3) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) The role of the National Guard Bureau in support of 
     the Secretary of the Army and the Secretary of the Air 
     Force.''.
       (b) Charter Developed and Prescribed by Secretary of 
     Defense.--Section 10503 of such title is further amended--
       (1) in the matter preceding paragraph (1)--
       (A) by striking ``The Secretary of the Army and the 
     Secretary of the Air Force shall jointly develop'' and 
     inserting ``The Secretary of Defense, in consultation with 
     the Chairman of the Joint Chiefs of Staff, the Secretary of 
     the Army, and the Secretary of the Air Force, shall 
     develop''; and
       (B) by striking ``cover'' in the second sentence and 
     inserting ``reflect the full scope of the duties and 
     activities of the Bureau, including''; and
       (2) in paragraph (14), as redesignated by subsection 
     (a)(1), by striking ``the Secretaries'' and inserting ``the 
     Secretary of Defense''.
       (c) Conforming and Clerical Amendments.--
       (1) Conforming amendment.--The heading of section 10503 of 
     such title is amended to read as follows:

     ``Sec. 10503. Functions of National Guard Bureau: charter''.

       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 1011 of such title is amended by 
     striking the item relating to section 10503 and inserting the 
     following new item:

``10503. Functions of National Guard Bureau: charter.''.

     SEC. 1814. REQUIREMENT FOR SECRETARY OF DEFENSE TO PREPARE 
                   PLAN FOR RESPONSE TO NATURAL DISASTERS AND 
                   TERRORIST EVENTS.

       (a) Requirement for Plan.--
       (1) In general.--Not later than June 1, 2008, the Secretary 
     of Defense, in consultation with the Secretary of Homeland 
     Security, the Chairman of the Joint Chiefs of Staff, the 
     commander of the United States Northern Command, and the 
     Chief of the National Guard Bureau, shall prepare and submit 
     to Congress a plan for coordinating the use of the National 
     Guard and members of the Armed Forces on active duty when 
     responding to natural disasters, acts of terrorism, and other 
     man-made disasters as identified in the national planning 
     scenarios described in subsection (e).
       (2) Update.--Not later than June 1, 2010, the Secretary, in 
     consultation with the persons consulted under paragraph (1), 
     shall submit to Congress an update of the plan required under 
     paragraph (1).
       (b) Information To Be Provided to Secretary.--To assist the 
     Secretary of Defense in preparing the plan, the National 
     Guard Bureau, pursuant to its purpose as channel of 
     communications as set forth in section 10501(b) of title 10, 
     United States Code, shall provide to the Secretary 
     information gathered from Governors, adjutants general of 
     States, and other State civil authorities responsible for 
     homeland preparation and response to natural and man-made 
     disasters.
       (c) Two Versions.--The plan shall set forth two versions of 
     response, one using only members of the National Guard, and 
     one using both members of the National Guard and members of 
     the regular components of the Armed Forces.
       (d) Matters Covered.--The plan shall cover, at a minimum, 
     the following:
       (1) Protocols for the Department of Defense, the National 
     Guard Bureau, and the Governors of the several States to 
     carry out operations in coordination with each other and to 
     ensure that Governors and local communities are properly 
     informed and remain in control in their respective States and 
     communities.
       (2) An identification of operational procedures, command 
     structures, and lines of communication to ensure a 
     coordinated, efficient response to contingencies.
       (3) An identification of the training and equipment needed 
     for both National Guard personnel and members of the Armed 
     Forces on active duty to provide military assistance to civil 
     authorities and for other domestic operations to respond to 
     hazards identified in the national planning scenarios.
       (e) National Planning Scenarios.--The plan shall provide 
     for response to the following hazards:
       (1) Nuclear detonation, biological attack, biological 
     disease outbreak/pandemic flu, the plague, chemical attack-
     blister agent, chemical attack-toxic industrial chemicals, 
     chemical attack-nerve agent, chemical attack-chlorine tank 
     explosion, major hurricane, major earthquake, radiological 
     attack-radiological dispersal device, explosives attack-
     bombing using improvised explosive device, biological attack-
     food contamination, biological attack-foreign animal disease 
     and cyber attack.
       (2) Any other hazards identified in a national planning 
     scenario developed by the Homeland Security Council.

     SEC. 1815. DETERMINATION OF DEPARTMENT OF DEFENSE CIVIL 
                   SUPPORT REQUIREMENTS.

       (a) Determination of Requirements.--The Secretary of 
     Defense, in consultation with the Secretary of Homeland 
     Security, shall determine the military-unique capabilities 
     needed to be provided by the Department of Defense to support 
     civil authorities in an incident of national significance or 
     a catastrophic incident.
       (b) Plan for Funding Capabilities.--
       (1) Plan.--The Secretary of Defense shall develop and 
     implement a plan, in coordination with the Secretaries of the 
     military departments and the Chairman of the Joint Chiefs of 
     Staff, for providing the funds and resources necessary to 
     develop and maintain the following:
       (A) The military-unique capabilities determined under 
     subsection (a).
       (B) Any additional capabilities determined by the Secretary 
     to be necessary to support the use of the active components 
     and the reserve components of the Armed Forces for homeland 
     defense missions, domestic emergency responses, and providing 
     military support to civil authorities.
       (2) Term of plan.--The plan required under paragraph (1) 
     shall cover at least five years.
       (c) Budget.--The Secretary of Defense shall include in the 
     materials accompanying the budget submitted for each fiscal 
     year a request for funds necessary to carry out the plan 
     required under subsection (b) during the fiscal year covered 
     by the budget. The defense budget materials shall delineate 
     and explain the budget treatment of the plan for each 
     component of each military department, each combatant 
     command, and each affected Defense Agency.
       (d) Definitions.--In this section:
       (1) The term ``military-unique capabilities'' means those 
     capabilities that, in the view of the Secretary of Defense--
       (A) cannot be provided by other Federal, State or local 
     civilian agencies; and
       (B) are essential to provide support to civil authorities 
     in an incident of national significance or a catastrophic 
     incident.
       (2) The term ``defense budget materials'', with respect to 
     a fiscal year, means the materials submitted to Congress by 
     the Secretary of Defense in support of the budget for that 
     fiscal year.
       (e) Strategic Planning Guidance.--Section 113(g)(2) of 
     title 10, United States Code, is amended by striking 
     ``contingency plans'' at the end of the first sentence and 
     inserting the following: ``contingency plans, including plans 
     for providing support to civil authorities in an incident of 
     national significance or a catastrophic incident, for 
     homeland defense, and for military support to civil 
     authorities''.

[[Page 32657]]


          Subtitle B--Additional Reserve Component Enhancement

     SEC. 1821. UNITED STATES NORTHERN COMMAND.

       (a) Manpower Review.--
       (1) Review by chairman of the joint chiefs of staff.--Not 
     later than one year after the date of the enactment of this 
     Act, the Chairman of the Joint Chiefs of Staff shall submit 
     to the Secretary of Defense a review of the civilian and 
     military positions, job descriptions, and assignments within 
     the United States Northern Command with the goal of 
     determining the feasibility of significantly increasing the 
     number of members of a reserve component assigned to, and 
     civilians employed by, the United States Northern Command who 
     have experience in the planning, training, and employment of 
     forces for homeland defense missions, domestic emergency 
     response, and providing military support to civil 
     authorities.
       (2) Submission of results of review.--Not later than 90 
     days after the date on which the Secretary of Defense 
     receives the results of the review under paragraph (1), the 
     Secretary shall submit to Congress a copy of the results of 
     the review, together with such recommendations as the 
     Secretary considers appropriate to achieve the objectives of 
     the review.
       (b) Definition.--In this section, the term ``United States 
     Northern Command'' means the combatant command the geographic 
     area of responsibility of which includes the United States.

     SEC. 1822. COUNCIL OF GOVERNORS.

       The President shall establish a bipartisan Council of 
     Governors to advise the Secretary of Defense, the Secretary 
     of Homeland Security, and the White House Homeland Security 
     Council on matters related to the National Guard and civil 
     support missions.

     SEC. 1823. PLAN FOR RESERVE FORCES POLICY BOARD.

       (a) Plan.--The Secretary of Defense shall develop a plan to 
     implement revisions that the Secretary determines necessary 
     in the designation, organization, membership, functions, 
     procedures, and legislative framework of the Reserve Forces 
     Policy Board. The plan--
       (1) shall be consistent with the findings, conclusions, and 
     recommendations included in Part III E of the Report of the 
     Commission on the National Guard and Reserves of March 1, 
     2007; and
       (2) to the extent possible, shall take into account the 
     views and recommendations of civilian and military leaders, 
     past chairmen of the Reserve Forces Policy Board, private 
     organizations with expertise and interest in Department of 
     Defense organization, and other individuals or groups in the 
     discretion of the Secretary.
       (b) Report.--Not later than July 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 
     plan developed under subsection (a), including such 
     recommendations for legislation as the Secretary considers 
     necessary.

     SEC. 1824. HIGH-LEVEL POSITIONS AUTHORIZED OR REQUIRED TO BE 
                   HELD BY RESERVE COMPONENT GENERAL OR FLAG 
                   OFFICERS.

       (a) Sense of Congress.--It is the sense of Congress that, 
     whenever officers of the Armed Forces are considered for 
     promotion to the grade of lieutenant general, or vice admiral 
     in the case of the Navy, on the active duty list, officers in 
     the reserve components of the Armed Forces who are eligible 
     for promotion to such grade should be considered for 
     promotion to such grade.
       (b) National Guard Officer as Deputy Commander of United 
     States Northern Command.--Section 164(e) of title 10, United 
     States Code, is amended by adding at the end the following 
     new paragraph:
       ``(4) At least one deputy commander of the combatant 
     command the geographic area of responsibility of which 
     includes the United States shall be a qualified officer of 
     the National Guard who is eligible for promotion to the grade 
     of O-9, unless a National Guard officer is serving as 
     commander of that combatant command.''.
       (c) Increase in Number of Unified and Specified Combatant 
     Command Positions for Reserve Component Officers.--Section 
     526(b)(2)(A) of such title is amended by striking ``10 
     general and flag officer positions on the staffs of the 
     commanders of'' and inserting ``15 general and flag officer 
     positions in''.

     SEC. 1825. RETIREMENT AGE AND YEARS OF SERVICE LIMITATIONS ON 
                   CERTAIN RESERVE GENERAL AND FLAG OFFICERS.

       (a) Retirement for Age.--
       (1) Inclusion of reserve generals and admirals.--Section 
     14511 of title 10, United States Code, is amended to read as 
     follows:

     ``Sec. 14511. Separation at age 64: officers in grade of 
       major general or rear admiral and above

       ``(a) Separation Required.--Unless retired, transferred to 
     the Retired Reserve, or discharged at an earlier date, each 
     reserve officer of the Army, Air Force, or Marine Corps in 
     the grade of major general or above and each reserve officer 
     of the Navy in the grade of rear admiral or above shall be 
     separated in accordance with section 14515 of this title on 
     the last day of the month in which the officer becomes 64 
     years of age.
       ``(b) Exception for Officers Serving in O-9 and O-10 
     Positions.--The retirement of a reserve officer of the Army, 
     Air Force, or Marine Corps in the grade of lieutenant general 
     or general, or a reserve officer of the Navy in the grade of 
     vice admiral or admiral, under subsection (a) 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.
       ``(c) Exception for Officers Holding Certain Offices.--This 
     section does not apply to an officer covered by section 14512 
     of this title.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 1407 of such title is amended by 
     striking the item relating to section 14511 and inserting the 
     following new item:
``14511. Separation at age 64: officers in grade of major general or 
              rear admiral and above.''.

       (b) Conforming Amendments and Reserve Officers Holding 
     Certain Other Offices.--Section 14512 of such title is 
     amended--
       (1) in subsection (a)(2)--
       (A) by striking subparagraph (A); and
       (B) by redesignating subparagraphs (B), (C), and (D) as 
     subparagraphs (A), (B), and (C), respectively; and
       (2) in subsection (b)--
       (A) by inserting ``(1)'' before ``The Secretary''; and
       (B) by adding at the end the following new paragraph:
       ``(2) The Secretary of Defense may defer the retirement of 
     a reserve officer serving in the position of Chief of the 
     Navy Reserve or Commander of the Marine Forces Reserve, but 
     such deferment may not extend beyond the first day of the 
     month following the month in which the officer becomes 66 
     years of age. A deferment under this paragraph shall not 
     count toward the limitation on the total number of officers 
     whose retirement may be deferred at any one time under 
     paragraph (1).''.
       (c) Imposition of Years of Service Limitation.--
       (1) Imposition of limitation.--Section 14508 of such title 
     is amended by inserting after subsection (c), as added by 
     section 513, the following new subsection:
       ``(d) Forty Years of Service for Generals and Admirals.--
     Unless retired, transferred to the Retired Reserve, or 
     discharged at an earlier date, each reserve officer of the 
     Army, Air Force, or Marine Corps in the grade of general and 
     each reserve officer of the Navy in the grade of admiral 
     shall be separated in accordance with section 14514 of this 
     title on the first day of the first month beginning after the 
     date of the fifth anniversary of the officer's appointment to 
     that grade or 30 days after the date on which the officer 
     completes 40 years of commissioned service, whichever is 
     later.''.
       (2) Conforming amendments.--Subsection (b) of section 10502 
     of such title, as amended by section 1811, is further 
     amended--
       (A) by inserting ``(1)'' before the first sentence; and
       (B) by striking ``While holding that office'' and inserting 
     the following:
       ``(2) Except as provided in section 14508(d) of this title, 
     while holding the office of Chief of the National Guard 
     Bureau''.

     SEC. 1826. ADDITIONAL REPORTING REQUIREMENTS RELATING TO 
                   NATIONAL GUARD EQUIPMENT.

       Section 10541 of title 10, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(d) Each report under this section concerning equipment 
     of the National Guard shall also include the following:
       ``(1) A statement of the accuracy of the projections 
     required by subsection (b)(5)(D) contained in earlier reports 
     under this section, and an explanation, if the projection was 
     not met, of why the projection was not met.
       ``(2) A certification from the Chief of the National Guard 
     Bureau setting forth an inventory for the preceding fiscal 
     year of each item of equipment--
       ``(A) for which funds were appropriated;
       ``(B) which was due to be procured for the National Guard 
     during that fiscal year; and
       ``(C) which has not been received by a National Guard unit 
     as of the close of that fiscal year.''.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     SEC. 2001. SHORT TITLE.

       This division may be cited as the ``Military Construction 
     Authorization Act for Fiscal Year 2008''.

     SEC. 2002. 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 XXVII and in title XXIX 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, 2010; or
       (2) the date of the enactment of an Act authorizing funds 
     for military construction for fiscal year 2011.
       (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--

[[Page 32658]]

       (1) October 1, 2010; or
       (2) the date of the enactment of an Act authorizing funds 
     for fiscal year 2011 for military construction projects, land 
     acquisition, family housing projects and facilities, or 
     contributions to the North Atlantic Treaty Organization 
     Security Investment Program.
                            TITLE XXI--ARMY
Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Termination of authority to carry out fiscal year 2007 Army 
              projects for which funds were not appropriated.
Sec. 2106. Technical amendments to Military Construction Authorization 
              Act for Fiscal Year 2007.
Sec. 2107. Modification of authority to carry out certain fiscal year 
              2006 project.
Sec. 2108. Extension of authorization of certain fiscal year 2005 
              project.
Sec. 2109. Ground lease, SOUTHCOM headquarters facility, Miami-Doral, 
              Florida.

     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...................................  Anniston Army Depot...............................       $26,000,000
                                            Redstone Arsenal..................................       $22,000,000
Alaska....................................  Fort Richardson...................................       $92,800,000
                                            Fort Wainwright...................................      $114,500,000
Arizona...................................  Fort Huachuca.....................................      $129,600,000
California................................  Fort Irwin........................................       $24,000,000
                                            Presidio, Monterey................................       $28,000,000
Colorado..................................  Fort Carson.......................................      $156,200,000
Delaware..................................  Dover Air Force Base..............................       $17,500,000
Florida...................................  Miami Doral.......................................      $237,000,000
Georgia...................................  Fort Benning......................................      $189,500,000
                                            Fort Stewart/Hunter Army Air Field................      $123,500,000
Hawaii....................................  Fort Shafter......................................       $31,000,000
                                            Kahuku Training Area..............................       $10,200,000
                                            Schofield Barracks................................       $88,000,000
                                            Wheeler Army Air Field............................       $51,000,000
Illinois..................................  Rock Island Arsenal...............................        $3,350,000
Kansas....................................  Fort Leavenworth..................................      $102,400,000
                                            Fort Riley........................................      $140,200,000
Kentucky..................................  Fort Campbell.....................................      $113,600,000
                                            Fort Knox.........................................        $6,700,000
Louisiana.................................  Fort Polk.........................................       $15,900,000
Maryland..................................  Aberdeen Proving Ground...........................       $12,200,000
Michigan..................................  Detroit Arsenal...................................       $18,500,000
Missouri..................................  Fort Leonard Wood.................................      $136,050,000
Nevada....................................  Hawthorne Army Ammunition Plant...................       $11,800,000
New Jersey................................  Picatinny Arsenal.................................        $9,900,000
New Mexico................................  White Sands Missile Range.........................       $71,000,000
New York..................................  Fort Drum.........................................      $311,200,000
North Carolina............................  Fort Bragg........................................      $287,200,000
Oklahoma..................................  Fort Sill.........................................        $7,500,000
South Carolina............................  Fort Jackson......................................       $85,000,000
Texas.....................................  Camp Bullis.......................................        $1,600,000
                                            Corpus Christi....................................       $11,200,000
                                            Fort Bliss........................................      $118,400,000
                                            Fort Hood.........................................      $163,400,000
                                            Fort Sam Houston..................................       $19,150,000
                                            Red River Army Depot..............................        $9,200,000
Virginia..................................  Fort Belvoir......................................       $13,000,000
                                            Fort Eustis.......................................       $75,000,000
                                            Fort Lee..........................................       $22,600,000
                                            Fort Myer.........................................       $20,800,000
Washington................................  Fort Lewis........................................      $178,500,000
                                            Yakima Training Center............................       $29,000,000
----------------------------------------------------------------------------------------------------------------

       (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
------------------------------------------------------------------------
Afghanistan..................  Afghanistan..............     $13,800,000
Bulgaria.....................  Nevo Selo FOS............     $61,000,000
Germany......................  Grafenwoehr..............     $62,000,000
Honduras.....................  Various locations........      $2,550,000
Italy........................  Aviano...................     $12,100,000
                               Vicenza..................    $160,900,000
Korea........................  Camp Humphreys...........     $57,000,000
Romania......................  Mihail Kogalniceanu FOS..     $12,600,000
------------------------------------------------------------------------


[[Page 32659]]

     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 or Country                  Installation or Location             Units              Amount
----------------------------------------------------------------------------------------------------------------
Utah....................................  Dugway Proving Ground..........  28...................      $5,000,000
Germany.................................  Ansbach........................  138..................     $52,000,000
----------------------------------------------------------------------------------------------------------------

       (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 $2,000,000.

     SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2104(a)(5)(A), the Secretary of 
     the Army may improve existing military family housing units 
     in an amount not to exceed $365,400,000.

     SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2007, for military construction, land 
     acquisition, and military family housing functions of the 
     Department of the Army in the total amount of $5,106,703,000 
     as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2101(a), $3,198,150,000.
       (2) For military construction projects outside the United 
     States authorized by section 2101(b), $254,950,000.
       (3) For unspecified minor military construction projects 
     authorized by section 2805 of title 10, United States Code, 
     $25,900,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $321,983,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $424,400,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $731,920,000.
       (6) For the construction of increment 2 of a barracks 
     complex at Fort Lewis, Washington, authorized by section 
     2101(a) of the Military Construction Authorization Act for 
     Fiscal Year 2007 (division B of Public Law 109-364; 120 Stat. 
     2445), as amended by section 20814 of the Continuing 
     Appropriations Resolution, 2007 (division B of Public Law 
     109-289), as added by section 2 of the Revised Continuing 
     Appropriations Resolution, 2007 (Public Law 110-5; 121 Stat. 
     41), $102,000,000.
       (7) For the construction of increment 3 of a barracks 
     complex 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), $47,400,000.
       (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) $137,000,000 (the balance of the amount authorized 
     under section 2101(a) for construction of the United States 
     Southern Command Headquarters, Miami, Florida).
       (3) $63,500,000 (the balance of the amount authorized under 
     section 2101(b) for construction of a brigade complex 
     operations support facility at Vicenza, Italy).
       (4) $63,500,000 (the balance of the amount authorized under 
     section 2101(b) for construction of a brigade complex 
     barracks and community support facility at Vicenza, Italy).

     SEC. 2105. TERMINATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
                   2007 ARMY PROJECTS FOR WHICH FUNDS WERE NOT 
                   APPROPRIATED.

       (a) Termination of Inside the United States Projects.--The 
     table in section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2007 (division B of Public 
     Law 109-364; 120 Stat. 2445), as amended by section 20814 of 
     the Continuing Appropriations Resolution, 2007 (division B of 
     Public Law 109-289), as added by section 2 of the Revised 
     Continuing Appropriations Resolution, 2007 (Public Law 110-
     5), is further amended--
       (1) by striking the item relating to Redstone Arsenal, 
     Alabama;
       (2) by striking the item relating to Fort Wainwright, 
     Alaska;
       (3) in the item relating to Fort Irwin, California, by 
     striking ``$18,200,000'' in the amount column and inserting 
     ``$10,000,000'';
       (4) in the item relating to Fort Carson, Colorado, by 
     striking ``$30,800,000'' in the amount column and inserting 
     ``$24,000,000'';
       (5) in the item relating to Fort Leavenworth, Kansas, by 
     striking ``$23,200,000'' in the amount column and inserting 
     ``$15,000,000'';
       (6) in the item relating to Fort Riley, Kansas, by striking 
     ``$47,400,000'' in the amount column and inserting 
     ``$37,200,000'';
       (7) in the item relating to Fort Campbell, Kentucky, by 
     striking ``$135,300,000'' in the amount column and inserting 
     ``$115,400,000'';
       (8) by striking the item relating to Fort Polk, Louisiana;
       (9) by striking the item relating to Aberdeen Proving 
     Ground, Maryland;
       (10) by striking the item relating to Fort Detrick, 
     Maryland;
       (11) by striking the item relating to Detroit Arsenal, 
     Michigan;
       (12) in the item relating to Fort Leonard Wood, Missouri, 
     by striking ``$34,500,000'' in the amount column and 
     inserting ``$17,000,000'';
       (13) by striking the item relating to Picatinny Arsenal, 
     New Jersey;
       (14) in the item relating to Fort Drum, New York, by 
     striking ``$218,600,000'' in the amount column and inserting 
     ``$209,200,000'';
       (15) in the item relating to Fort Bragg, North Carolina, by 
     striking ``$96,900,000'' in the amount column and inserting 
     ``$89,000,000'';
       (16) by striking the item relating to Letterkenny Depot, 
     Pennsylvania;
       (17) by striking the item relating to Corpus Christi Army 
     Depot, Texas;
       (18) by striking the item relating to Fort Bliss, Texas;
       (19) in the item relating to Fort Hood, Texas, by striking 
     ``$93,000,000'' in the amount column and inserting 
     ``$75,000,000'';
       (20) by striking the item relating to Red River Depot, 
     Texas; and
       (21) by striking the item relating to Fort Lee, Virginia.
       (b) Conforming Amendments.--Section 2104(a) of such Act 
     (120 Stat. 2447) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``$3,518,450,000'' and inserting ``$3,275,700,000''; and
       (2) in paragraph (1), by striking ``$1,362,200,000'' and 
     inserting ``$1,119,450,000''.

     SEC. 2106. TECHNICAL AMENDMENTS TO MILITARY CONSTRUCTION 
                   AUTHORIZATION ACT FOR FISCAL YEAR 2007.

       (a) Location of Project in Romania.--The table in section 
     2101(b) of the Military Construction Authorization Act for 
     2007 (division B of Public Law 109-364; 120 Stat. 2446) is 
     amended by striking ``Babadag Range'' and inserting ``Mihail 
     Kogalniceanu Air Base''.
       (b) Spelling Error Relating to Army Family Housing.--The 
     table in section 2102(a) of the Military Construction 
     Authorization Act for 2007 (division B of Public Law 109-364; 
     120 Stat. 2446) is amended by striking ``Fort McCoyine'' and 
     inserting ``Fort McCoy''.

     SEC. 2107. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2006 PROJECT.

       (a) Modification.--The table in section 2101(a) of the 
     Military Construction Authorization Act for Fiscal Year 2006 
     (division B of Public Law 109-163; 119 Stat. 3485) is amended 
     in the item relating to Fort Bragg, North Carolina, by 
     striking ``$301,250,000'' in the amount column and inserting 
     ``$308,250,000''.
       (b) Conforming Amendments.--Section 2104(b)(5) of that Act 
     (119 Stat. 3488) is amended by striking ``$77,400,000'' and 
     inserting ``$84,400,000''.

     SEC. 2108. EXTENSION OF AUTHORIZATION OF CERTAIN FISCAL YEAR 
                   2005 PROJECT.

       (a) Extension and Renewal.--Notwithstanding section 2701 of 
     the Military Construction Authorization Act for Fiscal Year 
     2005 (division B of Public Law 108-375; 118 Stat. 2116), the 
     authorization set forth in the table in subsection (b), as 
     provided in section 2101 of that Act (118 Stat. 2101), shall 
     remain in effect until October 1, 2008, or the date of the 
     enactment of an Act authorizing funds for military 
     construction for fiscal year 2009, whichever is later.
       (b) Table.--The table referred to in subsection (a) is as 
     follows:

[[Page 32660]]



              Army: Extension of 2005 Project Authorization
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Schofield Barracks, Hawaii.....  Training facility......     $35,542,000
------------------------------------------------------------------------

     SEC. 2109. GROUND LEASE, SOUTHCOM HEADQUARTERS FACILITY, 
                   MIAMI-DORAL, FLORIDA.

       (a) Ground Lease Authorized.--The Secretary of the Army may 
     utilize the State of Florida property as described in 
     sublease number 4489-01, entered into between the State of 
     Florida and the United States (in this section referred to as 
     the ``ground lease''), for the purpose of constructing a 
     consolidated headquarters facility for the United States 
     Southern Command (SOUTHCOM).
       (b) Additional Terms and Conditions.--The Secretary of the 
     Army may carry out the project to construct a new 
     headquarters on property leased from the State of Florida 
     when the following conditions have been met regarding the 
     lease for the property:
       (1) The United States Government shall have the right to 
     use the property without interruption until at least December 
     31, 2055.
       (2) The United States Government shall have the right to 
     use the property for general administrative purposes in the 
     event the United States Southern Command relocates or vacates 
     the property.
       (c) Authority To Obtain Ground Lease of Adjacent 
     Property.--The Secretary may obtain the ground lease of 
     additional real property owned by the State of Florida that 
     is adjacent to the real property leased under the ground 
     lease for purposes of completing the construction of the 
     SOUTHCOM headquarters facility, as long as the additional 
     terms of the ground lease required by subsection (b) apply to 
     such adjacent property.
       (d) Limitation.--The Secretary may not obligate or expend 
     funds appropriated pursuant to the authorization of 
     appropriations in section 2104(a)(1) for the construction of 
     the SOUTHCOM headquarters facility authorized under section 
     2101(a) until the Secretary transmits to the congressional 
     defense committees a modification to the ground lease signed 
     by the United States Government and the State of Florida in 
     accordance with subsection (b).
                            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. Termination of authority to carry out fiscal year 2007 Navy 
              projects for which funds were not appropriated.
Sec. 2206. Modification of authority to carry out certain fiscal year 
              2005 project.
Sec. 2207. Repeal of authorization for construction of Navy Outlying 
              Landing Field, Washington County, North Carolina.

     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
----------------------------------------------------------------------------------------------------------------
Alaska....................................  Outlying Field Evergreen..........................        $9,560,000
Arizona...................................  Marine Corps Air Station, Yuma....................       $33,720,000
California................................  Marine Corps Air Station, Miramar.................       $26,760,000
                                            Marine Corps Base, Camp Pendleton.................      $264,360,000
                                            Marine Corps Base, Twentynine Palms...............      $142,619,000
                                            Naval Station, San Diego..........................        $3,000,000
                                            Naval Support Activity, Monterey..................        $9,780,000
                                            Submarine Base, San Diego.........................       $23,630,000
Connecticut...............................  Submarine Base, New London........................       $21,160,000
Florida...................................  Marine Corps Logistics Base, Blount Island........       $10,240,000
                                            Naval Support Activity, Cape Canaveral............        $9,900,000
                                            Naval Surface Warfare Center, Panama City.........       $13,870,000
                                            Naval Training Center, Corry Field................        $3,140,000
Georgia...................................  Marine Corps Logistics Base.......................        $9,980,000
Hawaii....................................  Marine Corps Air Station, Kaneohe.................       $37,961,000
                                            Naval Base, Pearl Harbor..........................       $99,860,000
                                            Naval Station Pearl Harbor, Wahiawa...............       $65,410,000
                                            Pearl Harbor Naval Shipyard.......................       $30,200,000
Illinois..................................  Naval Training Center, Great Lakes................       $10,221,000
Indiana...................................  Naval Support Activity, Crane.....................       $23,800,000
Maine.....................................  Portsmouth Naval Shipyard.........................        $9,700,000
Maryland..................................  Naval Air Warfare Center, Patuxent River..........       $38,360,000
                                            Naval Surface Warfare Center, Indian Head.........        $9,450,000
Mississippi...............................  Naval Air Station, Meridian.......................        $6,770,000
Nevada....................................  Naval Air Station, Fallon.........................       $11,460,000
New Jersey................................  Naval Air Warfare Center, Lakehurst...............        $4,100,000
North Carolina............................  Marine Corps Air Station, Cherry Point............       $28,610,000
                                            Marine Corps Air Station, New River...............       $58,700,000
                                            Marine Corps Base, Camp Lejeune...................      $248,930,000
Rhode Island..............................  Naval Station, Newport............................       $13,760,000
South Carolina............................  Marine Corps Air Station, Beaufort................       $10,300,000
                                            Marine Corps Recruit Depot, Parris Island.........       $55,282,000
Texas.....................................  Naval Air Station, Corpus Christi.................       $14,290,000
Virginia..................................  Marine Corps Base, Quantico.......................       $50,519,000
                                            Naval Station, Norfolk............................       $79,560,000
                                            Naval Support Activity, Chesapeake................        $8,450,000
                                            Naval Surface Warfare Center, Dahlgren............       $10,000,000
Washington................................  Naval Air Station, Whidbey Island.................       $34,520,000
                                            Naval Station, Bremerton..........................      $119,760,000
                                            Naval Station, Everett............................       $10,940,000
                                            Naval Station, Kitsap.............................        $6,130,000
----------------------------------------------------------------------------------------------------------------

       (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:

[[Page 32661]]



                     Navy: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Bahrain......................  Southwest Asia...........     $35,500,000
Diego Garcia.................  Naval Support Facility,        $7,150,000
                                Diego Garcia.
Djibouti.....................  Camp Lemonier............     $22,390,000
Guam.........................  Naval Activities, Guam...    $278,818,000
------------------------------------------------------------------------

       (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             Installation or Location      Amount
------------------------------------------------------------------------
Worldwide Unspecified          Wharf Utilities Upgrade..      $8,900,000
------------------------------------------------------------------------

     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..............................  Twentynine Palms...............  N/A..................      $4,800,000
Mariana Islands.........................  Naval Activities, Guam.........  73...................     $57,167,000
----------------------------------------------------------------------------------------------------------------

       (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 $3,172,000.

     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 $237,990,000.

     SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2007, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Navy in the total amount of $2,885,317,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2201(a), $1,628,762,000.
       (2) For military construction projects outside the United 
     States authorized by section 2201(b), $292,946,000.
       (3) For military construction projects at unspecified 
     worldwide locations authorized by section 2201(c), 
     $11,600,000.
       (4) For unspecified minor military construction projects 
     authorized by section 2805 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, $113,017,000.
       (6) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $293,129,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $371,404,000.
       (7) For the construction of increment 2 of the construction 
     of an addition to the National Maritime Intelligence Center, 
     Suitland, Maryland, authorized by section 2201(a) of the 
     Military Construction Authorization Act for Fiscal Year 2007 
     (division B of Public Law 109-364; 120 Stat. 2448), 
     $52,069,000.
       (8) For the construction of increment 3 of recruit training 
     barracks infrastructure upgrade 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), 
     $16,650,000.
       (9) For the construction of increment 3 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), 
     $8,750,000.
       (10) For the construction of increment 2 of the Bachelor 
     Enlisted Quarters Homeport Ashore Program at Bremerton, 
     Washington (formerly referred to as a project at Naval 
     Station, Everett), 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), 
     $47,240,000.
       (11) For the construction of increment 4 of the limited 
     area production and storage complex at Naval Submarine Base, 
     Kitsap, Bangor, Washington (formerly referred to as a project 
     at the Strategic Weapons Facility Pacific, Bangor), 
     authorized by section 2201(a) of the Military Construction 
     Authorization Act of 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), 
     $39,750,000.
       (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) $50,000,000 (the balance of the amount authorized under 
     section 2201(a) for a submarine drive-in magnetic silencing 
     facility in Pearl Harbor, Hawaii.
       (3) $50,912,000 (the balance of the amount authorized under 
     section 2201(b) for construction of a wharf extension in Apra 
     Harbor, Guam.

     SEC. 2205. TERMINATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
                   2007 NAVY PROJECTS FOR WHICH FUNDS WERE NOT 
                   APPROPRIATED.

       (a) Termination of Inside the United States Projects.--The 
     table in section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 2007 (division B of Public 
     Law 109-364; 120 Stat. 2449) is amended--
       (1) in the item relating to Marine Corps Base, Twentynine 
     Palms, California, by striking ``$27,217,000'' in the amount 
     column and inserting ``$8,217,000'';
       (2) by striking the item relating to Naval Support 
     Activity, Monterey, California;
       (3) by striking the item relating to Naval Submarine Base, 
     New London, Connecticut;
       (4) by striking the item relating to Cape Canaveral, 
     Florida;
       (5) in the item relating to Marine Corps Logistics Base, 
     Albany, Georgia, by striking ``$70,540,000'' in the amount 
     column and inserting ``$62,000,000'';
       (6) by striking the item relating to Naval Magazine, Pearl 
     Harbor, Hawaii;
       (7) by striking the item relating to Naval Shipyard, Pearl 
     Harbor, Hawaii;
       (8) by striking the item relating to Naval Support 
     Activity, Crane, Indiana;
       (9) by striking the item relating to Portsmouth Naval 
     Shipyard, Maine;
       (10) by striking the item relating to Naval Air Station, 
     Meridian, Mississippi;
       (11) by striking the item relating to Naval Air Station, 
     Fallon, Nevada;
       (12) by striking the item relating to Marine Corps Air 
     Station, Cherry Point, North Carolina;
       (13) by striking the item relating to Naval Station, 
     Newport, Rhode Island;
       (14) in the item relating to Marine Corps Air Station, 
     Beaufort, South Carolina, by striking ``$25,575,000'' in the 
     amount column and inserting ``$22,225,000'';
       (15) by striking the item relating to Naval Special Weapons 
     Center, Dahlgren, Virginia;
       (16) in the item relating to Naval Support Activity, 
     Norfolk, Virginia, by striking

[[Page 32662]]

     ``$41,712,000'' in the amount column and inserting 
     ``$28,462,000'';
       (17) in the item relating to Naval Air Station, Whidbey 
     Island, Washington, by striking ``$67,303,000'' in the amount 
     column and inserting ``$57,653,000''; and
       (18) in the item relating to Naval Base, Kitsap, 
     Washington, by striking ``$17,617,000'' in the amount column 
     and inserting ``$13,507,000''.
       (b) Termination of Military Family Housing Projects.--
     Section 2204(a)(6)(A) of such Act (120 Stat. 2450) is amended 
     by striking ``$308,956,000'' and inserting ``$305,256,000''.
       (c) Conforming Amendments.--Section 2204(a) of such Act 
     (120 Stat. 2450) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``$2,109,367,000'' and inserting ``$1,946,867,000''; and
       (2) in paragraph (1), by striking ``$832,982,000'' and 
     inserting ``$674,182,000''.

     SEC. 2206. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2005 PROJECT.

       (a) 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 section 2206 of the Military Construction 
     Authorization Act for Fiscal Year 2006 (division B of Public 
     Law 109-163; 119 Stat. 3493) and section 2205 of the Military 
     Construction Authorization Act for Fiscal Year 2007 (division 
     B of Public Law 109-364; 120 Stat. 2452), is amended--
       (1) in the item relating to Strategic Weapons Facility 
     Pacific, Bangor, Washington, by striking ``$147,760,000'' in 
     the amount column and inserting ``$295,000,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$972,719,000''.
       (b) Conforming Amendment.--Section 2204 of the Military 
     Construction Authorization Act for Fiscal Year 2005 (division 
     B of Public Law 108-375; 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) and section 2205 of the Military Construction 
     Authorization Act for Fiscal Year 2007 (division B of Public 
     Law 109-364; 120 Stat. 2453), is amended in subsection 
     (b)(6), by striking ``$95,320,000'' and inserting 
     ``$259,320,000''.

     SEC. 2207. REPEAL OF AUTHORIZATION FOR CONSTRUCTION OF NAVY 
                   OUTLYING LANDING FIELD, WASHINGTON COUNTY, 
                   NORTH CAROLINA.

       (a) Repeal of Authorization.--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) 
     is amended by striking the item relating to Navy Outlying 
     Landing Field, Washington County, North Carolina, as added by 
     section 2205(a) of the Military Construction Authorization 
     Act for Fiscal Year 2007 (division B of Public Law 109-364; 
     120 Stat. 2452).
       (b) Repeal of Incremental Funding Authority.--Section 
     2204(b) of that Act (117 Stat. 1706) is amended by striking 
     paragraph (6).
       (c) Effect of Repeal.--The amendments made by this section 
     do not affect the expenditure of funds obligated, before the 
     effective date of this title, for the construction of the 
     Navy Outlying Landing Field, Washington County, North 
     Carolina, or the acquisition of real property to facilitate 
     such construction.
                         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. Termination of authority to carry out fiscal year 2007 Air 
              Force projects for which funds were not appropriated.
Sec. 2306. Modification of authority to carry out certain fiscal year 
              2006 projects.
Sec. 2307. Extension of authorizations of certain fiscal year 2005 
              projects.
Sec. 2308. Extension of authorizations of certain fiscal year 2004 
              projects.

     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(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......................................  Elmendorf Air Force Base........................       $83,180,000
Arizona.....................................  Davis-Monthan Air Force Base....................       $11,200,000
                                              Luke Air Force Base.............................        $5,500,000
Arkansas....................................  Little Rock Air Force Base......................       $19,600,000
California..................................  Travis Air Force Base...........................       $37,400,000
Colorado....................................  Fort Carson.....................................       $13,500,000
                                              Schriever Air Force Base........................       $24,500,000
                                              United States Air Force Academy.................       $15,000,000
District of Columbia........................  Bolling Air Force Base..........................        $2,500,000
Florida.....................................  Eglin Air Force Base............................      $158,300,000
                                              MacDill Air Force Base..........................       $60,500,000
                                              Patrick Air Force Base..........................       $11,854,000
                                              Tyndall Air Force Base..........................       $52,514,000
Georgia.....................................  Moody Air Force Base............................        $7,500,000
                                              Robins Air Force Base...........................       $19,700,000
Hawaii......................................  Hickam Air Force Base...........................       $31,971,000
Illinois....................................  Scott Air Force Base............................       $24,900,000
Kansas......................................  Fort Riley......................................       $12,515,000
                                              McConnell Air Force Base........................        $6,300,000
Massachusetts...............................  Hanscom Air Force Base..........................       $12,800,000
Mississippi.................................  Columbus Air Force Base.........................        $9,800,000
Missouri....................................  Whiteman Air Force Base.........................       $11,400,000
Montana.....................................  Malmstrom Air Force Base........................        $7,000,000
Nebraska....................................  Offutt Air Force Base...........................       $16,952,000
Nevada......................................  Nellis Air Force Base...........................        $4,950,000
New Mexico..................................  Cannon Air Force Base...........................        $1,688,000
                                              Kirtland Air Force Base.........................       $15,100,000
North Dakota................................  Grand Forks Air Force Base......................       $13,000,000
                                              Minot Air Force Base............................       $18,200,000
Oklahoma....................................  Altus Air Force Base............................        $2,000,000
                                               Tinker Air Force Base..........................       $34,600,000
                                              Vance Air Force Base............................        $7,700,000
South Carolina..............................  Charleston Air Force Base.......................       $11,000,000
                                              Shaw Air Force Base.............................        $9,300,000
South Dakota................................  Ellsworth Air Force Base........................       $16,600,000
Texas.......................................  Goodfellow Air Force Base.......................        $5,800,000
                                              Lackland Air Force Base.........................       $14,000,000
                                              Laughlin Air Force Base.........................        $5,200,000
                                              Randolph Air Force Base.........................        $2,950,000
                                              Shepard Air Force Base..........................        $7,000,000
Utah........................................  Hill Air Force Base.............................       $25,999,000
Washington..................................  Fairchild Air Force Base........................        $6,200,000
Wyoming.....................................  Francis E. Warren Air Force Base................       $14,600,000
----------------------------------------------------------------------------------------------------------------


[[Page 32663]]

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(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........     $48,209,000
Guam.........................  Andersen Air Force Base..     $15,816,000
Qatar........................  Al Udeid Air Base........     $22,300,000
Spain........................  Moron Air Base...........      $1,800,000
United Kingdom...............  Royal Air Force               $17,300,000
                                Lakenheath.
                               Royal Air Force Menwith       $41,000,000
                                Hill Station.
------------------------------------------------------------------------

       (c) Unspecified Worldwide.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(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:

                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
Worldwide Classified.........  Classified Project.......      $1,500,000
                               Classified-Special            $12,328,000
                                Evaluation Program.
------------------------------------------------------------------------

     SEC. 2302. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2304(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
----------------------------------------------------------------------------------------------------------------
Germany.................................  Ramstein Air Base................  117................     $56,275,000
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(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 $12,210,000.

     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(6)(A), the Secretary of the 
     Air Force may improve existing military family housing units 
     in an amount not to exceed $259,262,000.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 2007, for military 
     construction, land acquisition, and military family housing 
     functions of the Department of the Air Force in the total 
     amount of $2,175,829,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2301(a), $872,273,000.
       (2) For military construction projects outside the United 
     States authorized by section 2301(b), $146,425,000.
       (3) For the military construction projects at unspecified 
     worldwide locations authorized by section 2301(c), 
     $13,828,000.
       (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, $43,721,000.
       (6) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $327,747,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $688,335,000.
       (7) For the construction of increments 3 and 4 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), $43,500,000.
       (8) For the construction of increment 3 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 
     the Military Construction Authorization Act for Fiscal Year 
     2007 (division B of Public Law 109-364; 120 Stat. 2456), 
     $25,000,000.

     SEC. 2305. TERMINATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
                   2007 AIR FORCE PROJECTS FOR WHICH FUNDS WERE 
                   NOT APPROPRIATED.

       (a) Termination of Inside the United States Projects.--The 
     table in section 2301(a) of the Military Construction 
     Authorization Act for Fiscal Year 2007 (division B of Public 
     Law 109-364; 120 Stat. 2453) is amended--
       (1) in the item relating to Elmendorf, Alaska, by striking 
     ``$68,100,000'' in the amount column and inserting 
     ``$56,100,000'';
       (2) in the item relating to Davis-Monthan Air Force Base, 
     Arizona, by striking ``$11,800,000'' in the amount column and 
     inserting ``$4,600,000'';
       (3) by striking the item relating to Little Rock Air Force 
     Base, Arkansas;
       (4) in the item relating to Travis Air Force Base, 
     California, by striking ``$85,800,000'' in the amount column 
     and inserting ``$73,900,000'';
       (5) by striking the item relating to Peterson Air Force 
     Base, Colorado;
       (6) in the item relating to Dover Air Force, Delaware, by 
     striking ``$30,400,000'' in the amount column and inserting 
     ``$26,400,000'';
       (7) in the item relating to Eglin Air Force Base, Florida, 
     by striking ``$30,350,000'' in the amount column and 
     inserting ``$19,350,000'';
       (8) in the item relating to Tyndall Air Force Base, 
     Florida, by striking ``$8,200,000'' in the amount column and 
     inserting ``$1,800,000'';
       (9) in the item relating to Robins Air Force Base, Georgia, 
     by striking ``$59,600,000'' in the amount column and 
     inserting ``$38,600,000'';
       (10) in the item relating to Scott Air Force, Illinois, by 
     striking ``$28,200,000'' in the amount column and inserting 
     ``$20,000,000'';
       (11) by striking the item relating to McConnell Air Force 
     Base, Kansas;
       (12) by striking the item relating to Hanscom Air Force 
     Base, Massachusetts;
       (13) by striking the item relating to Whiteman Air Force 
     Base, Missouri;
       (14) by striking the item relating to Malmstrom Air Force 
     Base, Montana;
       (15) in the item relating to McGuire Air Force Base, New 
     Jersey, by striking ``$28,500,000'' in the amount column and 
     inserting ``$15,500,000'';
       (16) by striking the item relating to Kirtland Air Force 
     Base, New Mexico;
       (17) by striking the item relating to Minot Air Force Base, 
     North Dakota;
       (18) in the item relating to Altus Air Force Base, 
     Oklahoma, by striking ``$9,500,000'' in the amount column and 
     inserting ``$1,500,000'';
       (19) by striking the item relating to Tinker Air Force 
     Base, Oklahoma;
       (20) by striking the item relating to Charleston Air Force 
     Base, South Carolina;
       (21) in the item relating to Shaw Air Force Base, South 
     Carolina, by striking ``$31,500,000'' in the amount column 
     and inserting ``$22,200,000'';
       (22) by striking the item relating to Ellsworth Air Force 
     Base, South Dakota;
       (23) by striking the item relating to Laughlin Air Force 
     Base, Texas;
       (24) by striking the item relating to Sheppard Air Force 
     Base, Texas;
       (25) in the item relating to Hill Air Force Base, Utah, by 
     striking ``$63,400,000'' in the amount column and inserting 
     ``$53,400,000''; and
       (26) by striking the item relating to Fairchild Air Force 
     Base, Washington.
       (b) Conforming Amendments.--Section 2304(a) of such Act 
     (120 Stat. 2455) is amended--

[[Page 32664]]

       (1) in the matter preceding paragraph (1), by striking 
     ``$3,231,442,000'' and inserting ``$3,005,817,000''; and
       (2) in paragraph (1), by striking ``$962,286,000'' and 
     inserting ``$736,661,000''.
       (c) Exception.--The termination of the authorization of a 
     military construction project or land acquisition as a result 
     of the amendment made by subsection (a) shall not apply with 
     respect to a military construction project or land 
     acquisition--
       (1) that was authorized by section 2301(a) of such Act; and
       (2) for which a contract for the construction or 
     acquisition was entered into before October 1, 2007.

     SEC. 2306. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2006 PROJECTS.

       (a) Further 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), as amended by 
     section 2305(a) of the Military Construction Authorization 
     Act for Fiscal Year 2007 (division B of Public Law 109-364; 
     120 Stat. 2456), is further amended--
       (1) in the item relating to Edwards Air Force Base, 
     California, by striking ``$103,000,000'' in the amount column 
     and inserting ``$111,500,000''; and
       (2) in the item relating to MacDill Air Force Base, 
     Florida, by striking ``$101,500,000'' in the amount column 
     and inserting ``$126,500,000''.
       (b) Conforming Amendments.--Section 2304(b) of the Military 
     Construction Authorization Act for Fiscal Year 2006 (division 
     B of Public Law 109-163; 119 Stat. 3496), as amended by 
     section 2305(b) of the Military Construction Authorization 
     Act for Fiscal Year 2007 (division B of Public Law 109-364; 
     120 Stat. 2456), is further amended--
       (1) in paragraph (3), by striking ``$66,000,000'' and 
     inserting ``$74,500,000''; and
       (2) in paragraph (4), by striking ``$23,300,000'' and 
     inserting ``$48,300,000''.

     SEC. 2307. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   2005 PROJECTS.

       (a) Extension and Renewal.--Notwithstanding section 2701 of 
     the Military Construction Authorization Act for Fiscal Year 
     2005 (division B of Public Law 108-375; 118 Stat. 2116), the 
     authorizations set forth in the table in subsection (b), as 
     provided in section 2302 of that Act (118 Stat. 2110), shall 
     remain in effect until October 1, 2008, or the date of the 
     enactment of an Act authorizing funds for military 
     construction for fiscal year 2009, whichever is later.
       (b) Table.--The table referred to in subsection (a) is as 
     follows:

           Air Force: Extension of 2005 Project Authorizations
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Davis-Monthan Air Force Base,    Family housing (250         $48,500,000
 Arizona.                         units).
Vandenberg Air Force Base,       Family housing (120         $30,906,000
 California.                      units).
MacDill Air Force Base, Florida  Family housing (61          $21,723,000
                                  units).
                                 Housing maintenance          $1,250,000
                                  facility.
Columbus Air Force Base,         Housing management             $711,000
 Mississippi.                     facility.
Whiteman Air Force Base,         Family housing (160         $37,087,000
 Missouri.                        units).
Seymour Johnson Air Force Base,  Family housing (167         $32,693,000
 North Carolina.                  units).
Goodfellow Air Force Base,       Family housing (127         $20,604,000
 Texas.                           units).
Ramstein Air Base, Germany.....  USAFE Theater Aerospace     $24,024,000
                                  Operations Support
                                  Center.
------------------------------------------------------------------------

     SEC. 2308. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   2004 PROJECTS.

       (a) Extension.--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 table in subsection (b), as 
     provided in section 2302 of that Act (117 Stat. 1710) and 
     extended by section 2702 of the Military Construction 
     Authorization Act for Fiscal Year 2007 (division B of Public 
     Law 109-364; 120 Stat. 2464), shall remain in effect until 
     October 1, 2008, or the date of the enactment of an Act 
     authorizing funds for military construction for fiscal year 
     2009, whichever is later.
       (b) Table.--The table referred to in subsection (a) is as 
     follows:

           Air Force: Extension of 2004 Project Authorizations
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Travis Air Force Base,           Family housing (56          $12,723,000
 California.                      units).
Eglin Air Force Base, Florida..  Family housing (279         $32,166,000
                                  units).
------------------------------------------------------------------------

                      TITLE XXIV--DEFENSE AGENCIES
Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Energy conservation projects.
Sec. 2403. Authorization of appropriations, Defense Agencies.
Sec. 2404. Termination or modification of authority to carry out 
              certain fiscal year 2007 Defense Agencies projects.
Sec. 2405. Munitions demilitarization facilities, Blue Grass Army 
              Depot, Kentucky, and Pueblo Chemical Activity, Colorado.
Sec. 2406. Extension of authorizations of certain fiscal year 2005 
              projects.

     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 
     2403(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
----------------------------------------------------------------------------------------------------------------
North Carolina...............................  Marine Corps Base, Camp Lejeune..................      $2,014,000
----------------------------------------------------------------------------------------------------------------


                                           Defense Intelligence Agency
----------------------------------------------------------------------------------------------------------------
                     State                                   Installation or Location                 Amount
----------------------------------------------------------------------------------------------------------------
District of Columbia...........................  Bolling Air Force Base.........................      $1,012,000
----------------------------------------------------------------------------------------------------------------


                                            Defense Logistics Agency
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
California...................................  Port Loma Annex..................................    $140,000,000
Florida......................................  Naval Air Station, Key West......................      $1,874,000
Hawaii.......................................  Hickam Air Force Base............................     $11,900,000

[[Page 32665]]

 
New Mexico...................................  Kirtland Air Force Base..........................      $1,800,000
Ohio.........................................  Defense Supply Center Columbus...................      $4,000,000
Pennsylvania.................................  Defense Distribution Depot, New Cumberland.......     $21,000,000
Virginia.....................................  Fort Belvoir.....................................      $5,000,000
----------------------------------------------------------------------------------------------------------------


                                            National Security Agency
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Maryland.....................................  Fort Meade.......................................     $11,901,000
----------------------------------------------------------------------------------------------------------------


                                           Special Operations Command
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
California...................................  Marine Corps Base, Camp Pendleton................     $20,030,000
                                               Naval Amphibious Base, Coronodo..................     $12,000,000
Florida......................................  Hurlburt Field...................................     $29,111,000
                                               MacDill Air Force Base...........................     $47,700,000
Georgia......................................  Fort Benning.....................................     $35,000,000
                                               Hunter Army Air Field............................     $13,800,000
Kentucky.....................................  Fort Campbell....................................     $53,500,000
Mississippi..................................  Stennis Space Center.............................     $10,200,000
New Mexico...................................  Cannon Air Force Base............................      $7,500,000
North Carolina...............................  Fort Bragg.......................................     $47,250,000
                                               Marine Corps Base, Camp Lejeune..................     $28,210,000
Virginia.....................................  Dam Neck.........................................    $113,800,000
                                               Naval Amphibious Base, Little Creek..............     $48,000,000
Washington...................................  Fort Lewis.......................................     $77,000,000
----------------------------------------------------------------------------------------------------------------


                                           TRICARE Management Activity
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Florida......................................  MacDill Air Force Base...........................      $5,000,000
Illinois.....................................  Naval Hospital, Great Lakes......................     $99,000,000
New York.....................................  Fort Drum........................................     $41,000,000
Texas........................................  Camp Bullis......................................      $7,400,000
Virginia.....................................  Naval Station, Norfolk...........................      $6,450,000
Washington...................................  Fort Lewis.......................................     $21,000,000
----------------------------------------------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2403(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
----------------------------------------------------------------------------------------------------------------
Belgium.......................................  Sterrebeek......................................      $5,992,000
Germany.......................................  Ramstein Air Base...............................      $5,393,000
                                                Wiesbaden Air Base..............................     $20,472,000
----------------------------------------------------------------------------------------------------------------


                                           Special Operations Command
----------------------------------------------------------------------------------------------------------------
                    Country                                 Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Bahrain.......................................  Southwest Asia..................................     $19,000,000
Qatar.........................................  Al Udeid AB.....................................     $52,852,000
----------------------------------------------------------------------------------------------------------------


                                           TRICARE Management Activity
----------------------------------------------------------------------------------------------------------------
                    Country                                 Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Germany.......................................  Spangdahlem Air Base............................     $30,100,000
----------------------------------------------------------------------------------------------------------------

       (c) Unspecified Worldwide.--Using the amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2403(a)(3), the Secretary of Defense may acquire real 
     property and carry out military construction projects for 
     unspecified installations or locations in the amount set 
     forth in the following table:

                 Defense Agencies: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
Worldwide Classified           Classified Project.......      $1,887,000
------------------------------------------------------------------------


[[Page 32666]]

     SEC. 2402. ENERGY CONSERVATION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2403(a)(7), the Secretary of 
     Defense may carry out energy conservation projects under 
     chapter 173 of title 10, United States Code, in the amount of 
     $70,000,000.

     SEC. 2403. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2007, for military construction, land acquisition, and 
     military family housing functions of the Department of 
     Defense (other than the military departments) in the total 
     amount of $1,763,120,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2401(a), $791,902,000.
       (2) For military construction projects outside the United 
     States authorized by section 2401(b), $133,809,000.
       (3) For the military construction projects at unspecified 
     worldwide locations authorized by section 2301(c), 
     $1,887,000.
       (4) For unspecified minor military construction projects 
     under section 2805 of title 10, United States Code, 
     $23,711,000.
       (5) For contingency construction projects of the Secretary 
     of Defense under section 2804 of title 10, United States 
     Code, $5,000,000.
       (6) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $155,569,000.
       (7) For energy conservation projects authorized by section 
     2402 of this Act, $70,000,000.
       (8) For military family housing functions:
       (A) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $48,848,000.
       (B) For credit to the Department of Defense Family Housing 
     Improvement Fund established by section 2883(a)(1) of title 
     10, United States Code, $500,000.
       (9) For the construction of increment 3 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 the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006 (Public Law 109-234; 
     120 Stat. 485), $136,318,000.
       (10) For the construction of increment 3 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 the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006 (Public Law 109-234; 
     120 Stat. 485), $100,000,000.
       (11) For the construction of increment 2 of the health 
     clinic replacement at MacDill Air Force Base, Florida, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act of Fiscal Year 2007 (division B of Public 
     Law 109-364; 120 Stat. 2457), $41,400,000.
       (12) For the construction of increment 2 of the replacement 
     of the Army Medical Research Institute of Infectious Diseases 
     at Fort Detrick, Maryland, authorized by section 2401(a) of 
     the Military Construction Authorization Act of Fiscal Year 
     2007 (division B of Public Law 109-364; 120 Stat. 2457), 
     $150,000,000.
       (13) For the construction of increment 9 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), $35,159,000.
       (14) For the construction of increment 8 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 for Fiscal Year 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), $69,017,000.
       (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), (2), and (3) of subsection (a).
       (2) $84,300,000 (the balance of the amount authorized for 
     the Defense Logistics Agency under section 2401(a) for the 
     replacement of fuel storage facilities, Point Loma Annex, 
     California).
       (3) $47,250,000 (the balance of the amount authorized for 
     the Special Operations Command under section 2401(a) for a 
     special operations forces operations facility at Dam Neck, 
     Virginia).

     SEC. 2404. TERMINATION OR MODIFICATION OF AUTHORITY TO CARRY 
                   OUT CERTAIN FISCAL YEAR 2007 DEFENSE AGENCIES 
                   PROJECTS.

       (a) Termination of Projects for Which Funds Were Not 
     Appropriated.--The table relating to Special Operations 
     Command in section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 2007 (division B of Public 
     Law 109-364; 120 Stat. 2457) is amended--
       (1) by striking the item relating to Stennis Space Center, 
     Mississippi; and
       (2) in the item relating to Fort Bragg, North Carolina, by 
     striking ``$51,768,000'' in the amount column and inserting 
     ``$44,868,000''.
       (b) Modification of Authority to Carry Out Certain Base 
     Closure and Realignment Activities.--Section 2405(a)(7) of 
     that Act (120 Stat. 2460) is amended by striking 
     ``$191,220,000'' and inserting ``$252,279,000''.
       (c) Modification of Munitions Demilitarization Facility 
     Project.--Section 2405(a)(15) of that Act (120 Stat. 2461) is 
     amended by striking ``$99,157,000'' and inserting 
     ``$89,157,000''.
       (d) Conforming Amendments.--Section 2405(a) of that Act 
     (120 Stat. 2460) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``$7,163,431,000'' and inserting ``$7,197,390,000''; and
       (2) in paragraph (1), by striking ``$533,099,000'' and 
     inserting ``$515,999,000''.

     SEC. 2405. MUNITIONS DEMILITARIZATION FACILITIES, BLUE GRASS 
                   ARMY DEPOT, KENTUCKY, AND PUEBLO CHEMICAL 
                   ACTIVITY, COLORADO.

       (a) Munitions Demilitarization Facility, Blue Grass Army 
     Depot.--
       (1) Authority to increase amount for construction.--
     Consistent with the total project amount authorized for the 
     construction a munitions demilitarization facility at Blue 
     Grass Army Depot, Kentucky, by section 2401(a) of the 
     Military Construction Authorization Act for Fiscal Year 2000 
     (division B of Public Law 106-65; 113 Stat. 836), as amended 
     by section 2405 of the Military Construction Authorization 
     Act for Fiscal Year 2002 (division B of Public Law 107-107; 
     115 Stat. 1298) and section 2405 of the Military Construction 
     Authorization Act for Fiscal Year 2003 (division B of Public 
     Law 107-314; 116 Stat. 2698), the Secretary of Defense may 
     transfer amounts of authorizations made available by section 
     2403(a)(1) of this Act to increase amounts available for the 
     construction of increment 8 of such munitions 
     demilitarization facility.
       (2) Aggregate limit.--The aggregate amount of 
     authorizations that the Secretary may transfer under the 
     authority of this subsection may not exceed $17,300,000.
       (b) Munitions Demilitarization Facility, Pueblo Chemical 
     Activity.--
       (1) Authority to increase amount for construction.--
     Consistent with the total project amount authorized for the 
     construction a munitions demilitarization facility at Pueblo 
     Chemical Activity, Colorado, by section 2401(a) of the 
     Military Construction Authorization Act for Fiscal Year 1997 
     (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), the Secretary of Defense may 
     transfer amounts of authorizations made available by section 
     2403(a)(1) of this Act to increase amounts available for the 
     construction of increment 9 of such munitions 
     demilitarization facility.
       (2) Aggregate limit.--The aggregate amount of 
     authorizations that the Secretary may transfer under the 
     authority of this subsection may not exceed $32,000,000.
       (c) Certification Requirement.--Before exercising the 
     authority provided in subsection (a) or (b), the Secretary of 
     Defense shall provide to the congressional defense 
     committees--
       (1) a certification that the transfer under such subsection 
     of amounts authorized to be appropriated is in the best 
     interest of national security; and
       (2) a statement that the increased amount authorized to be 
     appropriated will be used to carry out authorized military 
     construction activities.

     SEC. 2406. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   2005 PROJECTS.

       (a) Extension and Renewal.--Notwithstanding section 2701 of 
     the Military Construction Authorization Act for Fiscal Year 
     2005 (division B of Public Law 108-375; 118 Stat. 2116), the 
     authorizations set forth in the table in subsection (b), as 
     provided in section 2401 of that Act (118 Stat. 2112), shall 
     remain in effect until October 1, 2008, or the date of the 
     enactment of an Act authorizing funds for military 
     construction for fiscal year 2009, whichever is later.
       (b) Table.--The table referred to in subsection (a) is as 
     follows:

       Defense Agencies: Extension of 2005 Project Authorizations
------------------------------------------------------------------------
     Installation or Location        Agency and Project       Amount
------------------------------------------------------------------------
Naval Air Station, Oceana,         DLA bulk fuel storage      $3,589,000
 Virginia.                          tank.

[[Page 32667]]

 
Naval Air Station, Jacksonville,   TMA hospital project.     $28,438,000
 Florida.
------------------------------------------------------------------------

   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, 2007, 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 $201,400,000.
            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES
Sec. 2601. Authorized Army National Guard construction and land 
              acquisition projects.
Sec. 2602. Authorized Army Reserve construction and land acquisition 
              projects.
Sec. 2603. Authorized Navy Reserve and Marine Corps Reserve 
              construction and land acquisition projects.
Sec. 2604. Authorized Air National Guard construction and land 
              acquisition projects.
Sec. 2605. Authorized Air Force Reserve construction and land 
              acquisition projects.
Sec. 2606. Authorization of appropriations, National Guard and Reserve.
Sec. 2607. Termination of authority to carry out fiscal year 2007 Guard 
              and Reserve projects for which funds were not 
              appropriated.
Sec. 2608. Modification of authority to carry out fiscal year 2006 Air 
              Force Reserve construction and acquisition projects.
Sec. 2609. Extension of authorizations of certain fiscal year 2005 
              projects.
Sec. 2610. Extension of authorizations of certain Fiscal Year 2004 
              projects.

     SEC. 2601. AUTHORIZED ARMY NATIONAL GUARD CONSTRUCTION AND 
                   LAND ACQUISITION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2606(1)(A), the Secretary of the 
     Army may acquire real property and carry out military 
     construction projects for the Army National Guard locations, 
     and in the amounts, set forth in the following table:

                                               Army National Guard
----------------------------------------------------------------------------------------------------------------
                    State                                         Location                           Amount
----------------------------------------------------------------------------------------------------------------
Alabama......................................  Springville...................................         $3,300,000
Arizona......................................  Florence......................................        $10,870,000
Arkansas.....................................  Camp Robinson.................................        $25,823,000
California...................................  Camp Roberts..................................         $2,850,000
                                               Sacramento Army Depot.........................        $21,000,000
Connecticut..................................  Niantic.......................................        $13,600,000
Florida......................................  Camp Blanding.................................        $15,524,000
                                               Jacksonville..................................        $12,200,000
Idaho........................................  Gowen Field...................................         $7,615,000
                                               Orchard Training Area.........................         $1,700,000
Illinois.....................................  St. Clair County..............................         $8,100,000
Indiana......................................  Muscatatuck...................................         $4,996,000
Iowa.........................................  Iowa City.....................................        $13,186,000
Kentucky.....................................  London........................................         $2,427,000
Michigan.....................................  Camp Grayling.................................         $2,450,000
                                               Lansing.......................................         $4,239,000
Minnesota....................................  Camp Ripley...................................        $17,450,000
Mississippi..................................  Camp Shelby...................................         $4,000,000
Missouri.....................................  Whiteman Air Force Base.......................        $30,000,000
North Carolina...............................  Asheville.....................................         $3,733,000
North Dakota.................................  Camp Grafton..................................        $33,416,000
Oregon.......................................  Ontario.......................................        $11,000,000
Pennsylvania.................................  Carlisle......................................         $7,800,000
                                               East Fallowfield Township.....................         $8,300,000
                                               Fort Indiantown Gap...........................         $9,500,000
                                               Gettysburg....................................         $6,300,000
                                               Graterford....................................         $7,300,000
                                               Hanover.......................................         $5,500,000
                                               Hazelton......................................         $5,600,000
                                               Holidaysburg..................................         $9,400,000
                                               Huntingdon....................................         $7,500,000
                                               Kutztown......................................         $6,800,000
                                               Lebanon.......................................         $7,800,000
                                               Philadelphia..................................        $13,650,000
                                               Waynesburg....................................         $9,000,000
Rhode Island.................................  East Greenwich................................         $8,200,000
                                               North Kingstown...............................        $33,000,000
Texas........................................  Camp Bowie....................................         $1,500,000
                                               Fort Wolters..................................         $2,100,000
Utah.........................................  North Salt Lake...............................        $12,200,000
Vermont......................................  Ethan Allen Range.............................         $1,996,000
Virginia.....................................  Fort Pickett..................................        $26,211,000
                                               Winchester....................................         $3,113,000
West Virginia................................  Camp Dawson...................................         $9,400,000
Wyoming......................................  Camp Guernsey.................................         $2,650,000
----------------------------------------------------------------------------------------------------------------


[[Page 32668]]

     SEC. 2602. AUTHORIZED ARMY RESERVE CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2606(1)(B), the Secretary of the 
     Army may acquire real property and carry out military 
     construction projects for the Army Reserve locations, and in 
     the amounts, set forth in the following table:

                                                  Army Reserve
----------------------------------------------------------------------------------------------------------------
                    State                                         Location                           Amount
----------------------------------------------------------------------------------------------------------------
California...................................  BT Collins....................................         $6,874,000
                                               Fort Hunter Liggett...........................         $7,035,000
                                               Garden Grove..................................        $25,440,000
Montana......................................  Butte.........................................         $7,629,000
New Jersey...................................  Fort Dix......................................        $22,900,000
New York.....................................  Fort Drum.....................................        $15,923,000
Texas........................................  Ellington Field...............................        $15,000,000
                                               Fort Worth....................................        $15,076,000
Wisconsin....................................  Ellsworth.....................................         $9,100,000
                                               Fort McCoy....................................         $8,523,000
----------------------------------------------------------------------------------------------------------------

     SEC. 2603. AUTHORIZED NAVY RESERVE AND MARINE CORPS RESERVE 
                   CONSTRUCTION AND LAND ACQUISITION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2606(a)(2), the Secretary of the 
     Navy may acquire real property and carry out military 
     construction projects for the Navy Reserve and Marine Corps 
     Reserve locations, and in the amounts, set forth in the 
     following table:

                                      Navy Reserve and Marine Corps Reserve
----------------------------------------------------------------------------------------------------------------
                    State                                         Location                           Amount
----------------------------------------------------------------------------------------------------------------
California...................................  Miramar.......................................         $5,580,000
Michigan.....................................  Selfridge.....................................         $4,030,000
Ohio.........................................  Wright-Patterson Air Force Base...............        $10,277,000
Oregon.......................................  Portland......................................         $1,900,000
South Dakota.................................  Sioux Falls...................................         $3,730,000
Texas........................................  Austin........................................         $6,490,000
                                               Fort Worth....................................        $27,484,000
Virginia.....................................  Quantico......................................         $2,410,000
----------------------------------------------------------------------------------------------------------------

     SEC. 2604. AUTHORIZED AIR NATIONAL GUARD CONSTRUCTION AND 
                   LAND ACQUISITION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2606(3)(A), the Secretary of the 
     Air Force may acquire real property and carry out military 
     construction projects for the Air National Guard locations, 
     and in the amounts, set forth in the following table:

                                               Air National Guard
----------------------------------------------------------------------------------------------------------------
                     State                                            Location                         Amount
----------------------------------------------------------------------------------------------------------------
Colorado.......................................  Buckley Air National Guard Base..................    $7,300,000
Delaware.......................................  New Castle.......................................   $10,800,000
Florida........................................  Jacksonville International Airport...............    $6,000,000
Georgia........................................  Savannah International Airport...................    $9,000,000
Indiana........................................  Hulman Regional Airport..........................    $7,700,000
Kansas.........................................  Smoky Hill Air National Guard Range..............    $9,000,000
Louisiana......................................  Camp Beauregard..................................    $1,800,000
Massachusetts..................................  Otis Air National Guard Base.....................    $1,800,000
                                                 Barnes Air National Guard Base...................    $7,300,000
Mississippi....................................  Key Field........................................    $6,100,000
Nebraska.......................................  Lincoln..........................................    $8,900,000
Nevada.........................................  Reno-Tahoe International Airport.................    $5,200,000
New Hampshire..................................  Pease Air National Guard Base....................    $8,900,000
New Jersey.....................................  Atlantic City....................................    $9,800,000
New York.......................................  Gabreski Airport.................................    $8,400,000
                                                 Griffiss.........................................    $6,600,000
                                                 Hancock Field....................................    $5,100,000
North Carolina.................................  Charlotte........................................    $4,000,000
Ohio...........................................  Rickenbacker Air National Guard Base.............    $7,600,000
Pennsylvania...................................  Fort Indiantown Gap..............................   $12,700,000
                                                 Harrisburg.......................................    $1,000,000
Rhode Island...................................  Quonset State Airport............................    $5,000,000
South Dakota...................................  Joe Foss Field...................................    $7,900,000
Tennessee......................................  Lovell Field.....................................    $8,200,000
                                                 McGhee-Tyson Airport.............................    $3,200,000
                                                 Memphis International Airport....................   $11,376,000
Texas..........................................  Ellington Field..................................    $7,200,000
Vermont........................................  Burlington.......................................    $6,600,000
West Virginia..................................  Eastern WV Regional Airport......................   $50,776,000
                                                 Yeager...........................................   $17,300,000
Wisconsin......................................  Truax Field......................................    $7,000,000
----------------------------------------------------------------------------------------------------------------


[[Page 32669]]

     SEC. 2605. AUTHORIZED AIR FORCE RESERVE CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2606(3)(B), the Secretary of the 
     Air Force may acquire real property and carry out military 
     construction projects for the Air Force Reserve locations, 
     and in the amounts, set forth in the following table:

                                               Air Force Reserve
----------------------------------------------------------------------------------------------------------------
                    State                                         Location                           Amount
----------------------------------------------------------------------------------------------------------------
Alaska.......................................  Elmendorf Air Force Base......................        $14,950,000
Utah.........................................  Hill Air Force Base...........................         $3,200,000
----------------------------------------------------------------------------------------------------------------

     SEC. 2606. AUTHORIZATION OF APPROPRIATIONS, NATIONAL GUARD 
                   AND RESERVE.

       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 2007, 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, 
     $536,656,000; and
       (B) for the Army Reserve, $148,133,000.
       (2) For the Department of the Navy, for the Navy and Marine 
     Corps Reserve, $64,430,000.
       (3) For the Department of the Air Force--
       (A) for the Air National Guard of the United States, 
     $287,537,000; and
       (B) for the Air Force Reserve, $28,359,000.

     SEC. 2607. TERMINATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
                   2007 GUARD AND RESERVE PROJECTS FOR WHICH FUNDS 
                   WERE NOT APPROPRIATED.

       Section 2601 of the Military Construction Authorization Act 
     for Fiscal Year 2007 (division B of Public Law 109-364; 120 
     Stat. 2463) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking ``$561,375,000'' and 
     inserting ``$476,697,000''; and
       (B) in subparagraph (B), by striking ``$190,617,000'' and 
     inserting ``$167,987,000'';
       (2) in paragraph (2), by striking ``49,998,000'' and 
     inserting ``$43,498,000''; and
       (3) in paragraph (3)--
       (A) in subparagraph (A), by striking ``$294,283,000'' and 
     inserting ``$133,983,000''; and
       (B) in subparagraph (B), by striking ``$56,836,000'' and 
     inserting ``$47,436,000''.

     SEC. 2608. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
                   2006 AIR FORCE RESERVE CONSTRUCTION AND 
                   ACQUISITION PROJECTS.

       Section 2601(3)(B) of the Military Construction 
     Authorization Act for Fiscal Year 2006 (division B of Public 
     Law 109-163; 119 Stat. 3501) is amended by striking 
     ``$105,883,000'' and inserting ``$102,783,000''.

     SEC. 2609. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   2005 PROJECTS.

       (a) Extension and Renewal.--Notwithstanding section 2701 of 
     the Military Construction Authorization Act for Fiscal Year 
     2005 (division B of Public Law 108-375; 118 Stat. 2116), the 
     authorizations set forth in the tables in subsection (b), as 
     provided in section 2601 of that Act (118 Stat. 2115), shall 
     remain in effect until October 1, 2008, or the date of the 
     enactment of an Act authorizing funds for military 
     construction for fiscal year 2009, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:

      Army National Guard: Extension of 2005 Project Authorizations
------------------------------------------------------------------------
     Installation or Location             Project             Amount
------------------------------------------------------------------------
Dublin, California...............  Readiness center.....     $11,318,000
Gary, Indiana....................  Reserve center.......      $9,380,000
------------------------------------------------------------------------


          Army Reserve: Extension of 2005 Project Authorization
------------------------------------------------------------------------
     Installation or Location             Project             Amount
------------------------------------------------------------------------
Corpus Christi (Robstown), Texas.  Storage facility.....      $9,038,000
------------------------------------------------------------------------

     SEC. 2610. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   2004 PROJECTS.

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 2004 
     (division B of Public Law 108-136; 117 Stat. 1716), the 
     authorizations set forth in the table in subsection (b), as 
     provided in section 2601 of that Act (117 Stat. 1715) and 
     extended by section 2702 of the Military Construction 
     Authorization Act for Fiscal Year 2007 (division B of Public 
     Law 109-364; 120 Stat. 2464), shall remain in effect until 
     October 1, 2008, or the date of the enactment of an Act 
     authorizing funds for military construction for fiscal year 
     2009, whichever is later.
       (b) Table.--The table referred to in subsection (a) is as 
     follows:

      Army National Guard: Extension of 2004 Project Authorizations
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Albuquerque, New Mexico........  Readiness center.......      $2,533,000
Fort Indiantown Gap,             Multi-purpose training      $15,338,000
 Pennsylvania.                    range.
------------------------------------------------------------------------

          TITLE XXVII--BASE CLOSURE AND REALIGNMENT ACTIVITIES
Sec. 2701. Authorization of appropriations for base closure and 
              realignment activities funded through Department of 
              Defense Base Closure Account 1990.
Sec. 2702. Authorized base closure and realignment activities funded 
              through Department of Defense Base Closure Account 2005.
Sec. 2703. Authorization of appropriations for base closure and 
              realignment activities funded through Department of 
              Defense Base Closure Account 2005.
Sec. 2704. Authorized cost and scope of work variations for military 
              construction and military family housing projects related 
              to base closures and realignments.
Sec. 2705. Transfer of funds from Department of Defense Base Closure 
              Account 2005 to Department of Defense Housing Funds.
Sec. 2706. Comprehensive accounting of funding required to ensure 
              timely implementation of 2005 Defense Base Closure and 
              Realignment Commission recommendations.
Sec. 2707. Relocation of units from Roberts United States Army Reserve 
              Center and Navy-Marine Corps Reserve Center, Baton Rouge, 
              Louisiana.
Sec. 2708. Acquisition of real property, Fort Belvoir, Virginia, as 
              part of the realignment of the installation.
Sec. 2709. Report on availability of traffic infrastructure and 
              facilities to support base realignment.

[[Page 32670]]



     SEC. 2701. AUTHORIZATION OF APPROPRIATIONS FOR BASE CLOSURE 
                   AND REALIGNMENT ACTIVITIES FUNDED THROUGH 
                   DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 
                   1990.

       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 2007, for 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 1990 established by section 2906 of such Act, in the 
     total amount of $295,689,000, as follows:
       (1) For the Department of the Army, $98,716,000.
       (2) For the Department of the Navy, $50,000,000.
       (3) For the Department of the Air Force, $143,260,000.
       (4) For the Defense Agencies, $3,713,000.

     SEC. 2702. 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 2703, 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 $8,718,988,000.

     SEC. 2703. AUTHORIZATION OF APPROPRIATIONS FOR BASE CLOSURE 
                   AND REALIGNMENT ACTIVITIES FUNDED THROUGH 
                   DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 
                   2005.

       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 2007, for 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 
     total amount of $8,040,401,000, as follows:
       (1) For the Department of the Army, $4,015,746,000.
       (2) For the Department of the Navy, $733,695,000.
       (3) For the Department of the Air Force, $1,183,812,000.
       (4) For the Defense Agencies, $2,107,148,000.

     SEC. 2704. AUTHORIZED COST AND SCOPE OF WORK VARIATIONS FOR 
                   MILITARY CONSTRUCTION AND MILITARY FAMILY 
                   HOUSING PROJECTS RELATED TO BASE CLOSURES AND 
                   REALIGNMENTS.

       (a) Variations Authorized.--Section 2905A 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) is amended 
     by adding at the end the following new subsection:
       ``(f) Authorized Cost and Scope of Work Variations.--(1) 
     Subject to paragraphs (2) and (3), the cost authorized for a 
     military construction project or military family housing 
     project to be carried out using funds in the Account may not 
     be increased or reduced by more than 20 percent or 
     $2,000,000, whichever is greater, of the amount specified for 
     the project in the conference report to accompany the 
     Military Construction Authorization Act authorizing the 
     project. The scope of work for such a project may not be 
     reduced by more than 25 percent from the scope specified in 
     the most recent budget documents for the projects listed in 
     such conference report.
       ``(2) Paragraph (1) shall not apply to a military 
     construction project or military family housing project to be 
     carried out using funds in the Account with an estimated cost 
     of less than $5,000,000, unless the project has not been 
     previously identified in any budget submission for the 
     Account and exceeds the applicable minor construction 
     threshold under section 2805 of title 10, United States Code.
       ``(3) The limitation on cost or scope variation in 
     paragraph (1) shall not apply if the Secretary of Defense 
     makes a determination that an increase or reduction in cost 
     or a reduction in the scope of work for a military 
     construction project or military family housing project to be 
     carried out using funds in the Account needs to be made for 
     the sole purpose of meeting unusual variations in cost or 
     scope. If the Secretary makes such a determination, the 
     Secretary shall notify the congressional defense committees 
     of the variation in cost or scope not later than 21 days 
     before the date on which the variation is made in connection 
     with the project or, if the notification is provided in an 
     electronic medium pursuant to section 480 of title 10, United 
     States Code, not later than 14 days before the date on which 
     the variation is made. The Secretary shall include the 
     reasons for the variation in the notification.''.
       (b) Report on Existing Projects.--Not later than 90 days 
     after the date of the enactment of this Act, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report specifying all military construction projects and 
     military family housing projects carried out using funds in 
     the Department of Defense Base Closure Account 2005 for which 
     a cost or scope of work variation was made before that date 
     that would have been subject to subsection (f) of section 
     2905A of the Defense Base Closure and Realignment Act of 
     1990, as added by this section, if such subsection had been 
     in effect when the cost or scope of work variation was made. 
     The Secretary shall include a description of each variation 
     covered by the report and the reasons for the variation.

     SEC. 2705. TRANSFER OF FUNDS FROM DEPARTMENT OF DEFENSE BASE 
                   CLOSURE ACCOUNT 2005 TO DEPARTMENT OF DEFENSE 
                   HOUSING FUNDS.

       (a) Transfer Authority.--Subsection (c) of section 2883 of 
     title 10, United States Code, is amended--
       (1) in paragraph (1), by adding at the end the following 
     new subparagraph:
       ``(G) Subject to subsection (f), any amounts that the 
     Secretary of Defense transfers to that Fund from amounts in 
     the Department of Defense Base Closure Account 2005.''; and
       (2) in paragraph (2), by adding at the end the following 
     new subparagraph:
       ``(G) Subject to subsection (f), any amounts that the 
     Secretary of Defense transfers to that Fund from amounts in 
     the Department of Defense Base Closure Account 2005.''.
       (b) Notification and Justification for Transfer.--
     Subsection (f) of such section is amended--
       (1) by striking ``paragraph (1)(B) or (2)(B)'' and 
     inserting ``subparagraph (B) or (G) of paragraph (1) or 
     subparagraph (B) or (G) of paragraph (2)''; and
       (2) by adding at the end the following new sentence: ``In 
     addition, the notice required in connection with a transfer 
     under subparagraph (G) of paragraph (1) or subparagraph (G) 
     of paragraph (2) shall include a certification that the 
     amounts to be transferred from the Department of Defense Base 
     Closure Account 2005 were specified in the conference report 
     to accompany the most recent Military Construction 
     Authorization Act.''.

     SEC. 2706. COMPREHENSIVE ACCOUNTING OF FUNDING REQUIRED TO 
                   ENSURE TIMELY IMPLEMENTATION OF 2005 DEFENSE 
                   BASE CLOSURE AND REALIGNMENT COMMISSION 
                   RECOMMENDATIONS.

       The Secretary of Defense shall submit to Congress with the 
     budget materials for fiscal year 2009 a comprehensive 
     accounting of the funding required to ensure that the plan 
     for implementing the final recommendations of the 2005 
     Defense Base Closure and Realignment Commission remains on 
     schedule for completion by September 15, 2011, as required by 
     section 2904(c)(5) 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. 2707. RELOCATION OF UNITS FROM ROBERTS UNITED STATES 
                   ARMY RESERVE CENTER AND NAVY-MARINE CORPS 
                   RESERVE CENTER, BATON ROUGE, LOUISIANA.

       The Secretary of the Army may use funds appropriated 
     pursuant to the authorization of appropriations in paragraphs 
     (1) and (2) of section 2703 for the purpose of siting an Army 
     Reserve Center and Navy and Marine Corps Reserve Center on 
     land under the control of the State of Louisiana adjacent to, 
     or in the vicinity of, the Baton Rouge Metropolitan Airport 
     in Baton Rouge, Louisiana, at a location determined by the 
     Secretary to be in the best interest of national security and 
     in the public interest.

     SEC. 2708. ACQUISITION OF REAL PROPERTY, FORT BELVOIR, 
                   VIRGINIA, AS PART OF THE REALIGNMENT OF THE 
                   INSTALLATION.

       (a) Acquisition Authority.--Pursuant to section 
     2905(a)(1)(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), the relocation of members of the Armed 
     Forces and civilian employees of the Department of Defense 
     who are scheduled to be relocated to Fort Belvoir, Virginia, 
     shall be limited to the following locations:
       (1) Fort Belvoir.
       (2) A parcel of real property consisting of approximately 
     69.5 acres, under the administrative jurisdiction of the 
     Administrator of General Services (in this section referred 
     to as the ``Administrator'') and containing warehouse 
     facilities in Springfield, Virginia, (in this section 
     referred to the ``GSA Property'').
       (3) Any other parcels of land (using including any 
     improvement thereon) that are acquired, using competitive 
     procedures, in fee in the vicinity of Fort Belvoir.
       (b) Acquisition Selection Criteria.--The Secretary of the 
     Army shall select the site to be used under subsection (a) 
     based on the best value to the Government, and, in making 
     that determination, the Secretary shall consider cost and 
     schedule.
       (c) GSA Property Transfer Authorized.--Pursuant to the 
     relocation alternative authorized by subsection (a)(2), the 
     Administrator may transfer the GSA Property to the 
     administrative jurisdiction of the Secretary of the Army for 
     the purpose of permitting the Secretary to construct 
     facilities on the property to support administrative 
     functions to be located at Fort Belvoir, Virginia.
       (d) Implementation of GSA Property Transfer.--
       (1) Consideration.--As consideration for the transfer of 
     the GSA Property under subsection (c), the Secretary of the 
     Army shall--
       (A) pay all reasonable costs to move personnel, 
     furnishings, equipment, and other material related to the 
     relocation of functions identified by the Administrator; and

[[Page 32671]]

       (B) if determined to be necessary by the Administrator--
       (i) transfer to the administrative jurisdiction of the 
     Administrator a parcel of property in the National Capital 
     Region under the jurisdiction of the Secretary and determined 
     to be suitable by the Administrator;
       (ii) design and construct storage facilities, utilities, 
     security measures, and access to a road infrastructure on the 
     parcel transferred under clause (i) to meet the requirements 
     of the Administrator; and
       (iii) enter into a memorandum of agreement with the 
     Administrator for support services and security at the new 
     facilities constructed pursuant to clause (ii).
       (2) Equal value transfer.--As a condition of the transfer 
     of the GSA Property under subsection (c), the transfer 
     agreement shall provide that the fair market value of the GSA 
     Property and the consideration provided under paragraph (1) 
     shall be equal or, if not equal, shall be equalized through 
     the use of a cash equalization payment.
       (3) Description of property.--The exact acreage and legal 
     description of the GSA Property shall be determined by 
     surveys satisfactory to the Administrator and the Secretary 
     of the Army.
       (4) Congressional notice.--Before undertaking an activity 
     under subsection (c) that would require approval of a 
     prospectus under section 3307 of title 40, United States 
     Code, the Administrator shall provide to the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives, the Committee on Environment and Public 
     Works of the Senate, and the congressional defense committees 
     a written notice containing a description of the activity to 
     be undertaken.
       (5) No effect on compliance with environmental laws.--
     Nothing in this section or subsection (c) may be construed to 
     affect or limit the application of or obligation to comply 
     with any environmental law, including section 120(h) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9620(h)).
       (6) Additional terms and conditions.--The Administrator and 
     the Secretary of the Army may require such additional terms 
     and conditions in connection with the GSA Property transfer 
     as the Administrator, in consultation with the Secretary, 
     determines appropriate to protect the interests of the United 
     States and further the purposes of this section.
       (e) Administration of Transferred or Acquired Property.--
     Upon completion of any property transfer or acquisition 
     authorized by subsection (a), the property shall be 
     administered by the Secretary of the Army as a part of Fort 
     Belvoir.
       (f) Status Report.--Not later than March 1, 2008, the 
     Secretary of the Army shall submit to the congressional 
     defense committees a report on the status and estimated costs 
     of implementing subsection (a).

     SEC. 2709. REPORT ON AVAILABILITY OF TRAFFIC INFRASTRUCTURE 
                   AND FACILITIES TO SUPPORT BASE REALIGNMENT.

       (a) Sense of Congress.--
       (1) Designation of defense access roads.--It is the sense 
     of Congress that roads leading onto Fort Belvoir, Virginia, 
     and other military installations that will be significantly 
     impacted by an increase in the number of members of the Armed 
     Forces and civilian employees of the Department of Defense 
     assigned to the installation as a result of the 2005 round of 
     defense base closures and realignments 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 any other 
     significant impact resulting from a realignment of forces 
     should be considered for designation as defense access roads 
     for purposes of section 210 of title 23, United States Code.
       (2) Facilities and infrastructure.--It is the sense of 
     Congress that the Secretary of Defense should seek to ensure 
     that the permanent facilities and infrastructure necessary to 
     support the mission of the Armed Forces and the quality of 
     life needs of members of the Armed Forces, civilian 
     employees, and their families are ready for use at receiving 
     locations before units are transferred to such locations as a 
     result of the 2005 round of defense base closures and 
     realignments.
       (b) Study of Military Infrastructure and Surface 
     Transportation Infrastructure.--Not later than April 1, 2008, 
     the Comptroller General shall submit to the congressional 
     defense committees a report with regard to each military 
     installation that will be significantly impacted by an 
     increase in assigned forces or civilian personnel, as 
     described in subsection (a), for the purpose of determining 
     whether--
       (1) military facility requirements (including quality of 
     life projects) will be met before the arrival of assigned 
     forces; and
       (2) the Department of Defense has programmed sufficient 
     funding to mitigate community traffic congestion in 
     accordance with the defense access roads program under 
     section 210 of title 23, United States Code.
          TITLE XXIX--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

Sec. 2801. Authority to use operation and maintenance funds for 
              construction projects outside the United States.
Sec. 2802. Clarification of requirement for authorization of military 
              construction.
Sec. 2803. Increase in thresholds for unspecified minor military 
              construction projects.
Sec. 2804. Temporary authority to support revitalization of Department 
              of Defense laboratories through unspecified minor 
              military construction projects.
Sec. 2805. Extension of authority to accept equalization payments for 
              facility exchanges.
Sec. 2806. Modifications of authority to lease military family housing.
Sec. 2807. Expansion of authority to exchange reserve component 
              facilities.
Sec. 2808. Limitation on use of alternative authority for acquisition 
              and improvement of military housing for privatization of 
              temporary lodging facilities.
Sec. 2809. Two-year extension of temporary program to use minor 
              military construction authority for construction of child 
              development centers.
Sec. 2810. Report on housing privatization initiatives.

        Subtitle B--Real Property and Facilities Administration

Sec. 2821. Requirement to report real property transactions resulting 
              in annual costs of more than $750,000.
Sec. 2822. Continued consolidation of real property provisions without 
              substantive change.
Sec. 2823. Modification of authority to lease non-excess property of 
              the military departments.
Sec. 2824. Cooperative agreement authority for management of cultural 
              resources on certain sites outside military 
              installations.
Sec. 2825. Agreements to limit encroachments and other constraints on 
              military training, testing, and operations.
Sec. 2826. Expansion to all military departments of Army pilot program 
              for purchase of certain municipal services for military 
              installations.
Sec. 2827. Prohibition on commercial flights into Selfridge Air 
              National Guard Base.
Sec. 2828. Sense of Congress on Department of Defense actions to 
              protect installations, ranges, and military airspace from 
              encroachment.
Sec. 2829. Reports on Army and Marine Corps operational ranges.
Sec. 2830. Niagara Air Reserve Base, New York, basing report.
Sec. 2831. Report on the Pinon Canyon Maneuver Site, Colorado.

                      Subtitle C--Land Conveyances

Sec. 2841. Modification of conveyance authority, Marine Corps Base, 
              Camp Pendleton, California.
Sec. 2842. Grant of easement, Eglin Air Force Base, Florida.
Sec. 2843. Land conveyance, Lynn Haven Fuel Depot, Lynn Haven, Florida.
Sec. 2844. Modification of lease of property, National Flight Academy 
              at the National Museum of Naval Aviation, Naval Air 
              Station, Pensacola, Florida.
Sec. 2845. Land exchange, Detroit, Michigan.
Sec. 2846. Transfer of jurisdiction, former Nike missile site, Grosse 
              Ile, Michigan.
Sec. 2847. Modification to land conveyance authority, Fort Bragg, North 
              Carolina.
Sec. 2848. Land conveyance, Lewis and Clark United States Army Reserve 
              Center, Bismarck, North Dakota.
Sec. 2849. Land exchange, Fort Hood, Texas.

                      Subtitle D--Energy Security

Sec. 2861. Repeal of congressional notification requirement regarding 
              cancellation ceiling for Department of Defense energy 
              savings performance contracts.
Sec. 2862. Definition of alternative fueled vehicle.
Sec. 2863. Use of energy efficient lighting fixtures and bulbs in 
              Department of Defense facilities.
Sec. 2864. Reporting requirements relating to renewable energy use by 
              Department of Defense to meet Department electricity 
              needs.

                       Subtitle E--Other Matters

Sec. 2871. Revised deadline for transfer of Arlington Naval Annex to 
              Arlington National Cemetery.
Sec. 2872. Transfer of jurisdiction over Air Force Memorial to 
              Department of the Air Force.
Sec. 2873. Report on plans to replace the monument at the Tomb of the 
              Unknowns at Arlington National Cemetery, Virginia.
Sec. 2874. Increased authority for repair, restoration, and 
              preservation of Lafayette Escadrille Memorial, Marnes-la-
              Coquette, France.
Sec. 2875. Addition of Woonsocket local protection project.
Sec. 2876. Repeal of moratorium on improvements at Fort Buchanan, 
              Puerto Rico.
Sec. 2877. Establishment of national military working dog teams 
              monument on suitable military installation.
Sec. 2878. Report required prior to removal of missiles from 564th 
              Missile Squadron.
Sec. 2879. Report on condition of schools under jurisdiction of 
              Department of Defense Education Activity.

[[Page 32672]]

Sec. 2880. Report on facilities and operations of Darnall Army Medical 
              Center, Fort Hood Military Reservation, Texas.
Sec. 2881. Report on feasibility of establishing a regional disaster 
              response center at Kelly Air Field, San Antonio, Texas.
Sec. 2882. Naming of housing facility at Fort Carson, Colorado, in 
              honor of the Honorable Joel Hefley, a former member of 
              the United States House of Representatives.
Sec. 2883. Naming of Navy and Marine Corps Reserve Center at Rock 
              Island, Illinois, in honor of the Honorable Lane Evans, a 
              former member of the United States House of 
              Representatives.
Sec. 2884. Naming of research laboratory at Air Force Rome Research 
              Site, Rome, New York, in honor of the Honorable Sherwood 
              L. Boehlert, a former member of the United States House 
              of Representatives.
Sec. 2885. Naming of administration building at Joint Systems 
              Manufacturing Center, Lima, Ohio, in honor of the 
              Honorable Michael G. Oxley, a former member of the United 
              States House of Representatives.
Sec. 2886. Naming of Logistics Automation Training Facility, Army 
              Quartermaster Center and School, Fort Lee, Virginia, in 
              honor of General Richard H. Thompson.
Sec. 2887. Authority to relocate Joint Spectrum Center to Fort Meade, 
              Maryland.
 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

     SEC. 2801. AUTHORITY TO USE OPERATION AND MAINTENANCE FUNDS 
                   FOR CONSTRUCTION PROJECTS OUTSIDE THE UNITED 
                   STATES.

       (a) One-Year Extension of Authority.--Subsection (a) of 
     section 2808 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), section 2809 of the 
     Military Construction Authorization Act for Fiscal Year 2006 
     (division B of Public Law 109-163; 119 Stat. 3508), and 
     section 2802 of the Military Construction Authorization Act 
     for Fiscal Year 2007 (division B of Public Law 109-364; 120 
     Stat. 2466), is further amended by striking ``2007'' and 
     inserting ``2008''.
       (b) Prenotification Requirement.--Subsection (b) of such 
     section is amended by striking the first sentence and 
     inserting the following new sentences: ``Before using 
     appropriated funds available for operation and maintenance to 
     carry out a construction project outside the United States 
     that has an estimated cost in excess of the amounts 
     authorized for unspecified minor military construction 
     projects under section 2805(c) of title 10, United States 
     Code, the Secretary of Defense shall submit to the 
     congressional committees specified in subsection (f) a notice 
     regarding the construction project. The project may be 
     carried out only after the end of the 10-day period beginning 
     on the date the notice is received by the committees or, if 
     earlier, the end of the 7-day period beginning on the date on 
     which a copy of the notification is provided in an electronic 
     medium pursuant to section 480 of title 10, United States 
     Code.''.
       (c) Annual Limitation on Use of Authority.--Subsection (c) 
     of such section is amended to read as follows:
       ``(c) Annual Limitation on Use of Authority.--The total 
     cost of the construction projects carried out under the 
     authority of this section using, in whole or in part, 
     appropriated funds available for operation and maintenance 
     shall not exceed $200,000,000 in a fiscal year.''.
       (d) Conforming Amendment.--Subsection (g) of such section 
     is amended by striking ``notice of the'' and inserting 
     ``advance notice of the proposed''.
       (e) Ratification of Proposed Construction and Land 
     Acquisition Projects Using Fiscal Year 2007 Operation and 
     Maintenance Funds.--The nine construction projects outside 
     the United States proposed to be carried out using funds 
     appropriated to the Department of Defense for operation and 
     maintenance for fiscal year 2007, but for which the 
     obligation or expenditure of funds was prohibited by 
     subsection (g) of section 2808 of the Military Construction 
     Authorization Act for Fiscal Year 2004 (division B of Public 
     Law 108-136; 117 Stat. 1723), as added by section 2809 of the 
     Military Construction Authorization Act for Fiscal Year 2006 
     (division B of Public Law 109-163; 119 Stat. 3508), may be 
     carried out using such funds after the date of the enactment 
     of this Act notwithstanding such subsection (g).

     SEC. 2802. CLARIFICATION OF REQUIREMENT FOR AUTHORIZATION OF 
                   MILITARY CONSTRUCTION.

       (a) Clarification of Requirement for Authorization.--
     Section 2802(a) of title 10, United States Code, is amended 
     by inserting after ``military construction projects'' the 
     following: ``, land acquisitions, and defense access road 
     projects (as described under section 210 of title 23)''.
       (b) Clarification of Definition.--Section 2801(a) of such 
     title is amended by inserting after ``permanent 
     requirements'' the following: ``, or any acquisition of land 
     or construction of a defense access road (as described in 
     section 210 of title 23)''.

     SEC. 2803. INCREASE IN THRESHOLDS FOR UNSPECIFIED MINOR 
                   MILITARY CONSTRUCTION PROJECTS.

       Section 2805(a)(1) of title 10, United States Code, is 
     amended by striking ``$1,500,000'' and inserting 
     ``$2,000,000''.

     SEC. 2804. TEMPORARY AUTHORITY TO SUPPORT REVITALIZATION OF 
                   DEPARTMENT OF DEFENSE LABORATORIES THROUGH 
                   UNSPECIFIED MINOR MILITARY CONSTRUCTION 
                   PROJECTS.

       (a) Laboratory Revitalization.--Section 2805 of title 10, 
     United States Code, is amended--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Laboratory Revitalization.--(1) For the 
     revitalization and recapitalization of laboratories owned by 
     the United States and under the jurisdiction of the Secretary 
     concerned, the Secretary concerned may obligate and expend--
       ``(A) from appropriations available to the Secretary 
     concerned for operation and maintenance, amounts necessary to 
     carry out an unspecified minor military construction project 
     costing not more than $2,000,000; or
       ``(B) from appropriations available to the Secretary 
     concerned for military construction not otherwise authorized 
     by law, amounts necessary to carry out an unspecified minor 
     military construction project costing not more than 
     $4,000,000.
       ``(2) For an unspecified minor military construction 
     project conducted pursuant to this subsection, $2,000,000 
     shall be deemed to be the amount specified in subsection 
     (b)(1) regarding when advance approval of the project by the 
     Secretary concerned and congressional notification is 
     required. The Secretary of Defense shall establish procedures 
     for the review and approval of requests from the Secretary of 
     a military department to carry out a construction project 
     under this subsection.
       ``(3) For purposes of this subsection, the total amount 
     allowed to be applied in any one fiscal year to projects at 
     any one laboratory shall be limited to the larger of the 
     amounts applicable under paragraph (1).
       ``(4) Not later than February 1, 2010, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report on the use of the authority provided by this 
     subsection. The report shall include a list and description 
     of the construction projects carried out under this 
     subsection, including the location and cost of each project.
       ``(5) In this subsection, the term `laboratory' includes--
       ``(A) a research, engineering, and development center; and
       ``(B) a test and evaluation activity.
       ``(6) The authority to carry out a project under this 
     subsection expires on September 30, 2012.''.
       (b) Stylistic Amendments.--Such section is further 
     amended--
       (1) in subsection (a), by inserting ``Authority to Carry 
     Out Unspecified Minor Military Construction Projects.--'' 
     after ``(a)'';
       (2) in subsection (b), by inserting ``Approval and 
     Congressional Notification.--'' after ``(b)'';
       (3) in subsection (c), by inserting ``Use of Operation and 
     Maintenance Funds.--'' after ``(c)''; and
       (4) in subsection (e), as redesignated by subsection 
     (a)(1), by inserting ``Prohibition on Use for New Housing 
     Units.--'' after ``(e)''.

     SEC. 2805. EXTENSION OF AUTHORITY TO ACCEPT EQUALIZATION 
                   PAYMENTS FOR FACILITY EXCHANGES.

       Section 2809(c)(5) of the Military Construction 
     Authorization Act for Fiscal Year 2005 (division B of Public 
     Law 108-375; 118 Stat. 2127) is amended by striking 
     ``September 30, 2007'' and inserting ``September 30, 2010''.

     SEC. 2806. MODIFICATIONS OF AUTHORITY TO LEASE MILITARY 
                   FAMILY HOUSING.

       (a) Increased Maximum Lease Amount Applicable to Certain 
     Domestic Army Family Housing Leases.--Subsection (b) of 
     section 2828 of title 10, United States Code, is amended--
       (1) in paragraph (2), by striking ``paragraphs (3) and 
     (4)'' and inserting ``paragraphs (3), (4), and (7)'';
       (2) in paragraph (5), by striking ``paragraphs (2) and 
     (3)'' and inserting ``paragraphs (2), (3), and (7)''; and
       (3) by adding at the end the following new paragraph:
       ``(7)(A) Not more than 600 housing units may be leased by 
     the Secretary of the Army under subsection (a) for which the 
     expenditure for the rental of such units (including the cost 
     of utilities, maintenance, and operation) exceeds the maximum 
     amount per unit per year in effect under paragraph (2) but 
     does not exceed $18,620 per unit per year, as adjusted from 
     time to time under paragraph (5).
       ``(B) The maximum lease amount provided in subparagraph (A) 
     shall apply only to Army family housing in areas designated 
     by the Secretary of the Army.
       ``(C) The term of a lease under subparagraph (A) may not 
     exceed 2 years.''.
       (b) Foreign Military Family Housing Leases.--Subsection 
     (e)(2) of such section is amended by striking ``the Secretary 
     of the Navy may lease not more than 2,800 units of family 
     housing in Italy, and the Secretary of the Army may lease not 
     more than 500 units of family housing in Italy'' and 
     inserting ``the Secretaries of the military departments may 
     lease not more than 3,300 units of family housing in Italy''.

[[Page 32673]]

       (c) Increased Threshold for Congressional Notification for 
     Foreign Military Family Housing Leases.--Subsection (f) of 
     such section is amended by striking ``$500,000'' and 
     inserting ``$1,000,000''.
       (d) Report Required.--Not later than March 1, 2008, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the rental of family housing 
     in foreign countries (including the costs of utilities, 
     maintenance, and operations) that exceed $60,000 per unit per 
     year. The report shall include a list and description of 
     rental units (including total gross square feet and number of 
     bedrooms), location, rental cost, the requirement for the 
     rental, and the options that the Secretary has available to 
     decrease the costs associated with the rentals.

     SEC. 2807. EXPANSION OF AUTHORITY TO EXCHANGE RESERVE 
                   COMPONENT FACILITIES.

       Section 18240(a) of title 10, United States Code, is 
     amended by striking ``with a State'' in the first sentence 
     and inserting ``with an Executive agency (as defined in 
     section 105 of title 5), the United States Postal Service, or 
     a State''.

     SEC. 2808. LIMITATION ON USE OF ALTERNATIVE AUTHORITY FOR 
                   ACQUISITION AND IMPROVEMENT OF MILITARY HOUSING 
                   FOR PRIVATIZATION OF TEMPORARY LODGING 
                   FACILITIES.

       (a) Limitation on Privatization of Temporary Lodging 
     Facilities.--Notwithstanding any other provision of 
     subchapter IV of chapter 169 of title 10, United States Code, 
     the privatization of temporary lodging facilities under such 
     subchapter is limited to the military installations 
     authorized in subsection (b) until 120 days after the date on 
     which the report described in subsection (d)(1) is submitted.
       (b) Authorized Installations.--The military installations 
     at which the privatization of temporary lodging facilities 
     may proceed under subsection (a) are the following:
       (1) Redstone Arsenal, Alabama.
       (2) Fort Rucker, Alabama.
       (3) Yuma Proving Ground, Arizona.
       (4) Fort McNair, District of Columbia.
       (5) Fort Shafter, Hawaii.
       (6) Tripler Army Medical Center, Hawaii.
       (7) Fort Leavenworth, Kansas.
       (8) Fort Riley, Kansas.
       (9) Fort Polk, Louisiana.
       (10) Fort Sill, Oklahoma.
       (11) Fort Hood, Texas.
       (12) Fort Sam Houston, Texas.
       (13) Fort Myer, Virginia.
       (c) Effect of Limitation.--The limitation imposed by 
     subsection (a) prohibits the issuance of contract 
     solicitations for the privatization of temporary lodging 
     facilities at any military installation not specified in 
     subsection (b).
       (d) Reporting Requirements.--
       (1) Report by secretary of the army.--Not earlier than 
     eight months after the date on which the notice of transfer 
     associated with the military installations specified in 
     subsection (b) is issued, the Secretary of the Army shall 
     submit to the congressional defense committees and the 
     Comptroller General a report that--
       (A) describes the implementation of the privatization of 
     temporary lodging facilities at the installations specified 
     in subsection (b);
       (B) evaluates the efficiency of the program; and
       (C) contains such recommendations as the Secretary 
     considers appropriate regarding expansion of the program.
       (2) Report by comptroller general.--Not later than 90 days 
     after receiving the report under paragraph (1), the 
     Comptroller General shall submit to the congressional defense 
     committees a review of both the privatization of temporary 
     lodging facilities and the report of the Secretary.

     SEC. 2809. TWO-YEAR EXTENSION OF TEMPORARY PROGRAM TO USE 
                   MINOR MILITARY CONSTRUCTION AUTHORITY FOR 
                   CONSTRUCTION OF CHILD DEVELOPMENT CENTERS.

       (a) Extension.--Subsection (e) of section 2810 of the 
     Military Construction Authorization Act for Fiscal Year 2006 
     (division B of Public Law 109-163; 119 Stat. 3510) is amended 
     by striking ``September 30, 2007'' and inserting ``September 
     30, 2009''.
       (b) Report Required.--Subsection (d) of such section is 
     amended by striking ``March 1, 2007'' and inserting ``March 
     1, 2009''.

     SEC. 2810. REPORT ON HOUSING PRIVATIZATION INITIATIVES.

       (a) Report Required.--Not later than March 31, 2008, the 
     Comptroller General shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives a 
     report containing--
       (1) a list of all housing privatization transactions 
     carried out by the Department of Defense that, as of such 
     date, are behind schedule or in default; and
       (2) recommendations regarding the opportunities for the 
     Federal Government to ensure that all terms of each housing 
     privatization transaction are completed according to the 
     original schedule and budget.
       (b) Specific Information Regarding Each Transaction.--For 
     each housing privatization transaction included in the report 
     required by subsection (a), the report shall provide a 
     description of the following:
       (1) The reasons for schedule delays, cost overruns, or 
     default.
       (2) How solicitations and competitions were conducted for 
     the project.
       (3) How financing, partnerships, legal arrangements, 
     leases, or contracts in relation to the project were 
     structured.
       (4) Which entities, including Federal entities, are bearing 
     financial risk for the project, and to what extent.
       (5) The remedies available to the Federal Government to 
     restore the transaction to schedule or ensure completion of 
     the terms of the transaction in question at the earliest 
     possible time.
       (6) The extent to which the Federal Government has the 
     ability to affect the performance of various parties involved 
     in the project.
       (7) The remedies available to subcontractors to recoup 
     liens in the case of default, non-payment by the developer or 
     other party to the transaction or lease agreement, or re-
     structuring.
       (8) The remedies available to the Federal Government to 
     affect receivership actions or transfer of ownership of the 
     project.
       (9) The names of the developers for the project and any 
     history of previous defaults or bankruptcies by these 
     developers or their affiliates.
       (c) Housing Privatization Transaction Defined.--In this 
     section, the term ``housing privatization transaction'' means 
     any contract or other transaction for the construction or 
     acquisition of military family housing or military 
     unaccompanied housing entered into under the authority of 
     subchapter IV of chapter 169 of title 10, United States Code.
        Subtitle B--Real Property and Facilities Administration

     SEC. 2821. REQUIREMENT TO REPORT REAL PROPERTY TRANSACTIONS 
                   RESULTING IN ANNUAL COSTS OF MORE THAN 
                   $750,000.

       (a) Inclusion of Transactions Involving Defense Agencies.--
       (1) Requirement to report.--Subsection (a) of section 2662 
     of title 10, United States Code, is amended--
       (A) in paragraph (1), by striking ``, or his designee,'' 
     and inserting ``or, with respect to a Defense Agency, the 
     Secretary of Defense''; and
       (B) in paragraph (3), by inserting after ``military 
     department'' the following: ``or the Secretary of Defense''.
       (2) Annual report regarding minor transactions.--Subsection 
     (b) of such section is amended by inserting after ``military 
     department'' the following: ``and, with respect to Defense 
     Agencies, the Secretary of Defense''.
       (3) Exceptions.--Subsection (g) of such section is amended 
     by adding at the end the following new paragraph:
       ``(4) In this subsection, the term `Secretary concerned' 
     includes, with respect to Defense Agencies, the Secretary of 
     Defense.''.
       (b) Inclusion of Additional Transaction.--Subsection (a)(1) 
     of such section is amended by adding at the end the following 
     new subparagraph:
       ``(G) Any transaction or contract action that results in, 
     or includes, the acquisition or use by, or the lease or 
     license to, the United States of real property, if the 
     estimated annual rental or cost for the use of the real 
     property is more than $750,000.''.

     SEC. 2822. CONTINUED CONSOLIDATION OF REAL PROPERTY 
                   PROVISIONS WITHOUT SUBSTANTIVE CHANGE.

       (a) Consolidation.--Section 2663 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(h) Land Acquisition Options in Advance of Military 
     Construction Projects.--(1) The Secretary of a military 
     department may acquire an option on a parcel of real property 
     before or after its acquisition is authorized by law, if the 
     Secretary considers it suitable and likely to be needed for a 
     military project of the military department under the 
     jurisdiction of the Secretary.
       ``(2) As consideration for an option acquired under 
     paragraph (1), the Secretary may pay, from funds available to 
     the military department under the jurisdiction of the 
     Secretary for real property activities, an amount that is not 
     more than 12 percent of the appraised fair market value of 
     the property.''.
       (b) Repeal of Superseded Provision.--
       (1) Repeal.--Section 2677 of such title is repealed.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 159 of such title is amended by striking 
     the item relating to section 2677.

     SEC. 2823. MODIFICATION OF AUTHORITY TO LEASE NON-EXCESS 
                   PROPERTY OF THE MILITARY DEPARTMENTS.

       (a) Elimination of Authority To Accept Facilities Operation 
     Support as In-Kind Consideration.--Subsection (c)(1) of 
     section 2667 of title 10, United States Code, is amended--
       (1) by redesignating subparagraph (E) as subparagraph (F); 
     and
       (2) by striking subparagraph (D) and inserting the 
     following new subparagraphs:
       ``(D) Provision or payment of utility services for the 
     Secretary concerned.
       ``(E) Provision of real property maintenance services for 
     the Secretary concerned.''.
       (b) Elimination of Authority To Use Rental and Certain 
     Other Proceeds for Facilities Operation Support.--Subsection 
     (e)(1)(C) of such section is amended--
       (1) by adjusting the margins of clauses (ii) and (iii) to 
     conform to the margin of clause (i); and
       (2) by striking clause (iv) and inserting the following new 
     clauses:
       ``(iv) Payment of utility services.
       ``(v) Real property maintenance services.''.
       (c) Use of Competitive Procedures for Selection of Certain 
     Lessees.--Subsection (h) of such section is amended--
       (1) in paragraph (1), by striking ``exceeds one year, and 
     the fair market value of the lease'' and inserting ``exceeds 
     one year, or the fair market value of the lease'';

[[Page 32674]]

       (2) by redesignating paragraph (3) as paragraph (4); and
       (3) by striking paragraph (2) and inserting the following 
     new paragraphs:
       ``(2) Paragraph (1) does not apply if the Secretary 
     concerned determines that--
       ``(A) a public interest will be served as a result of the 
     lease; and
       ``(B) the use of competitive procedures for the selection 
     of certain lessees is unobtainable or not compatible with the 
     public benefit served under subparagraph (A).
       ``(3) Not later than 45 days before entering into a lease 
     described in paragraph (1), the Secretary concerned shall 
     submit to Congress written notice describing the terms of the 
     proposed lease and--
       ``(A) the competitive procedures used to select the lessee; 
     or
       ``(B) in the case of a lease involving the public benefit 
     exception authorized by paragraph (2), a description of the 
     public benefit to be served by the lease.''.
       (d) Technical Amendments Related to Prior-Year Amendment.--
     Subsection (e) of such section is amended--
       (1) in paragraph (1)(B)(ii), by striking ``paragraph (4), 
     (5), or (6)'' and inserting ``paragraph (3), (4), or (5)''; 
     and
       (2) by redesignating paragraphs (4), (5), and (6) as 
     paragraphs (3), (4), and (5).

     SEC. 2824. COOPERATIVE AGREEMENT AUTHORITY FOR MANAGEMENT OF 
                   CULTURAL RESOURCES ON CERTAIN SITES OUTSIDE 
                   MILITARY INSTALLATIONS.

       (a) Expanded Authority.--Section 2684 of title 10, United 
     States Code, is amended--
       (1) in subsection (a), by striking ``on military 
     installations'' and inserting ``located on a site authorized 
     by subsection (b)'';
       (2) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (3) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Authorized Cultural Resources Sites.--To be covered 
     by a cooperative agreement under subsection (a), cultural 
     resources must be located--
       ``(1) on a military installation; or
       ``(2) on a site outside of a military installation, but 
     only if the cooperative agreement will directly relieve or 
     eliminate current or anticipated restrictions that would or 
     might restrict, impede, or otherwise interfere, whether 
     directly or indirectly, with current or anticipated military 
     training, testing, or operations on a military 
     installation.''.
       (b) Cultural Resource Defined.--Subsection (d) of such 
     section, as redesignated by subsection (a)(2), is amended by 
     adding at the end the following new paragraph:
       ``(5) An Indian sacred site, as defined in section 
     1(b)(iii) of Executive Order No. 13007.''.

     SEC. 2825. AGREEMENTS TO LIMIT ENCROACHMENTS AND OTHER 
                   CONSTRAINTS ON MILITARY TRAINING, TESTING, AND 
                   OPERATIONS.

       (a) Management of Natural Resources of Acquired Property.--
     Subsection (d) of section 2684a of title 10, United States 
     Code, is amended--
       (1) by redesignating paragraphs (3), (4), (5), and (6) as 
     paragraphs (4), (5), (6), and (7), respectively; and
       (2) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) An agreement with an eligible entity under this 
     section may provide for the management of natural resources 
     on real property in which the Secretary concerned acquires 
     any right, title, or interest in accordance with this 
     subsection and for the payment by the United States of all or 
     a portion of the costs of such natural resource management if 
     the Secretary concerned determines that there is a 
     demonstrated need to preserve or restore habitat for the 
     purpose described in subsection (a)(2).''.
       (b) Limitation on Portion of Acquisition Costs Borne by 
     United States.--Paragraph (4) of such subsection, as 
     redesignated by subsection (a)(1), is amended--
       (1) by redesignating subparagraph (D) as subparagraph (E);
       (2) in subparagraph (C), by striking ``equal to the fair 
     market value'' and all that follows through the period at the 
     end and inserting ``equal to, at the discretion of the 
     Secretary concerned--
       ``(i) the fair market value of any property or interest in 
     property to be transferred to the United States upon the 
     request of the Secretary concerned under paragraph (5); or
       ``(ii) the cumulative fair market value of all properties 
     or interests to be transferred to the United States under 
     paragraph (5) pursuant to an agreement under subsection 
     (a).''; and
       (3) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) The portion of acquisition costs borne by the United 
     States under subparagraph (A) may exceed the amount 
     determined under subparagraph (C), but only if--
       ``(i) the Secretary concerned provides written notice to 
     the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives 
     containing--
       ``(I) a certification by the Secretary that the military 
     value to the United States of the property or interest to be 
     acquired justifies a payment in excess of the fair market 
     value of the property or interest; and
       ``(II) a description of the military value to be obtained; 
     and
       ``(ii) the contribution toward the acquisition costs of the 
     property or interest is not made until at least 14 days after 
     the date on which the notice is submitted under clause (i) 
     or, if earlier, at least 10 days after the date on which a 
     copy of the notice is provided in an electronic medium 
     pursuant to section 480 of this title.''.

     SEC. 2826. EXPANSION TO ALL MILITARY DEPARTMENTS OF ARMY 
                   PILOT PROGRAM FOR PURCHASE OF CERTAIN MUNICIPAL 
                   SERVICES FOR MILITARY INSTALLATIONS.

       (a) Expansion of Pilot Program.--Section 325 of the Ronald 
     W. Reagan National Defense Authorization Act for Fiscal Year 
     2005 (Public Law 108-375; 10 U.S.C. 2461 note) is amended--
       (1) in the section heading, by striking ``ARMY'' and 
     inserting ``MILITARY'';
       (2) in subsection (a)--
       (A) by striking ``Secretary of the Army'' and inserting 
     ``Secretary of a military department''; and
       (B) by striking ``an Army installation'' and inserting ``a 
     military installation under the jurisdiction of the 
     Secretary''; and
       (3) in subsection (d), by striking ``The Secretary'' and 
     inserting ``The Secretary of a military department''.
       (b) Participating Installations.--Subsection (c) of such 
     section is amended by striking ``two Army installations'' and 
     inserting ``three military installations from each military 
     service''.
       (c) Extension of Duration of Program.--Such section is 
     further amended by striking subsections (e) and (f) and 
     inserting the following new subsection:
       ``(e) Termination of Pilot Program.--The pilot program 
     shall terminate on September 30, 2012. Any contract entered 
     into under the pilot program shall terminate not later than 
     that date.''.

     SEC. 2827. PROHIBITION ON COMMERCIAL FLIGHTS INTO SELFRIDGE 
                   AIR NATIONAL GUARD BASE.

       The Secretary of Defense shall prohibit the use of 
     Selfridge Air National Guard Base by commercial service 
     aircraft.

     SEC. 2828. SENSE OF CONGRESS ON DEPARTMENT OF DEFENSE ACTIONS 
                   TO PROTECT INSTALLATIONS, RANGES, AND MILITARY 
                   AIRSPACE FROM ENCROACHMENT.

       (a) Findings.--In light of the initial report of the 
     Department of Defense submitted pursuant to section 2684a(g) 
     of title 10, United States Code, and of the RAND Corporation 
     report entitled ``The Thin Green Line: An Assessment of DoD's 
     Readiness and Environmental Protection Initiative to Buffer 
     Installation Encroachment'', Congress makes the following 
     findings:
       (1) Development and loss of habitat in the vicinity of, or 
     in areas ecologically related to, military installations, 
     ranges, and airspace pose a continuing and significant threat 
     to the readiness of the Armed Forces.
       (2) The Range Sustainability Program (RSP) of the 
     Department of Defense, and in particular the Readiness and 
     Environmental Protection Initiative (REPI) involving 
     agreements pursuant to section 2684a of title 10, United 
     States Code, have been effective in addressing this threat to 
     readiness with regard to a number of important installations, 
     ranges, and airspace.
       (3) The opportunities to take effective action to protect 
     installations, ranges, and airspace from encroachment is in 
     many cases transient, and delay in taking action will result 
     in either higher costs or permanent loss of the opportunity 
     effectively to address encroachment.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Department of Defense should--
       (1) develop additional policy guidance on the further 
     implementation of the Readiness and Environmental Protection 
     Initiative (REPI), to include additional emphasis on 
     protecting biodiversity and on further refining procedures;
       (2) give greater emphasis to effective cooperation and 
     collaboration on matters of mutual concern with other Federal 
     agencies charged with managing Federal land; and
       (3) ensure that each military department takes full 
     advantage of the authorities provided by section 2684a of 
     title 10, United States Code, in addressing encroachment 
     adversely affecting, or threatening to adversely affect, the 
     installations, ranges, and military airspace of the 
     department.
       (c) Reporting Requirement.--Not later than 90 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall review Chapter 6 of the initial report 
     submitted to Congress under section 2684a(g) of title 10, 
     United States Code, and report to the congressional defense 
     committees on the specific steps, if any, that the Secretary 
     plans to take, or recommends that Congress take, to address 
     the issues raised in such chapter.

     SEC. 2829. REPORTS ON ARMY AND MARINE CORPS OPERATIONAL 
                   RANGES.

       (a) Report on Utilization and Potential Expansion of Army 
     Operational Ranges.--Not later than 180 days after the date 
     of the enactment of this Act, 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 training and range activities of the Army. The 
     report shall include the following information:
       (1) The size, description, and mission-essential tasks 
     supported by each Army operational range during fiscal year 
     2003.
       (2) A description of the projected changes in Army 
     operational range requirements, including

[[Page 32675]]

     the size, characteristics, and attributes for mission-
     essential activities at each Army operational range and the 
     extent to which any changes in requirements are a result of--
       (A) 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);
       (B) the conversion of Army brigades to a modular format;
       (C) the Integrated Global Presence and Basing Strategy;
       (D) the proposal contained in the budget justification 
     materials submitted in support of the Department of Defense 
     budget for fiscal year 2008 to increase the size of the 
     active component of the Army to 547,400 personnel by the end 
     of fiscal year 2012 and any modification or acceleration 
     contemplated in the budget submission for fiscal year 2009; 
     or
       (E) high operational tempos or surge requirements.
       (3) 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.
       (4) A description of the Army's prioritization process and 
     investment strategy to address the potential expansion or 
     upgrade of Army operational ranges.
       (5) 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.
       (6) An analysis of the cost of, potential military value 
     of, and potential legal or practical impediments to, the 
     expansion of the Joint Readiness Training Center at Fort 
     Polk, Louisiana, through the acquisition of additional land 
     adjacent to or in the vicinity of the installation.
       (7) An analysis of the impact of the proposal described in 
     paragraph (2)(D) on the plan developed prior to such proposal 
     to relocate forces from Germany to the United States and 
     vacate installations in Germany as part of the Integrated 
     Global Presence and Basing Strategy, including a comparative 
     analysis of--
       (A) the projected utilization of the three combat training 
     centers of the Army if all of the six light infantry brigades 
     proposed to be added to the active component of the Army 
     would be based in the United States; and
       (B) the projected utilization of such ranges if at least 
     one of those brigades would be based in Germany or if one of 
     the brigades proposed to be relocated pursuant to the plan in 
     paragraph (a)(2)(C) is retained in Germany.
       (8) If the analysis required by paragraph (7) indicates 
     that the Joint Multi-National Readiness Center in Hohenfels, 
     Germany, or the Army's training complex at Grafenwoehr, 
     Germany, would not be fully utilized under the basing 
     scenarios analyzed, an estimate of the cost to replicate the 
     training capability at that center in another location.
       (b) Report on Potential Expansion of Marine Corps 
     Operational Ranges.--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 a report 
     containing an assessment of Marine Corps operational ranges 
     used to support training and range activities of the Marine 
     Corps. The report required shall include the following 
     information:
       (1) The size, description, and mission-essential tasks 
     supported by each major Marine Corps operational range during 
     fiscal year 2003.
       (2) A description of the projected changes in Marine Corps 
     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 the proposal contained in the 
     fiscal year 2008 budget request to increase the size of the 
     active component of the Marine Corps to 202,000 personnel by 
     the end of fiscal year 2012 and any modification or 
     acceleration contemplated in the budget submission for fiscal 
     year 2009.
       (3) The projected deficit or surplus of land at each major 
     Marine Corps operational range, and a description of the 
     Secretary's plan to address that projected deficit or surplus 
     of land as well as the upgrade of range attributes at each 
     existing Marine Corps operational range.
       (4) A description of the Secretary's prioritization process 
     and investment strategy to address the potential expansion or 
     upgrade of Marine Corps operational ranges.
       (5) An analysis of alternatives to the expansion of Marine 
     Corps 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.
       (6) An analysis of the cost of, potential military value 
     of, and potential legal or practical impediments to, the 
     expansion of Marine Corps Base, Twentynine Palms, California, 
     through the acquisition of additional land adjacent to or in 
     the vicinity of that installation that is under the control 
     of the Bureau of Land Management.
       (c) Supplemental Report.--Not later than 90 days after the 
     date on which the second of the two reports required by 
     subsections (a) and (b) is submitted, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report containing the following information:
       (1) A description of initiatives by the Secretary of 
     Defense to coordinate the range expansion activities of the 
     Army and Marine Corps in order to gain efficiencies in 
     investment and resource allocation.
       (2) An analysis of training requirements for the Army and 
     the Marine Corps that could be accomplished through joint use 
     of existing ranges.
       (3) An analysis of the responses provided by the Secretary 
     of the Army under subsection (a)(5) and the Secretary of the 
     Navy subsection (b)(5).
       (4) Any other matter that the Secretary of Defense 
     considers to be of importance to ensure the effective and 
     timely expansion of ranges to meet Army and Marine Corps 
     training requirements.
       (d) Definitions.--In this section:
       (1) 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.
       (2) The term ``Marine Corps operational range'' has the 
     meaning given the term ``operational range'' in section 
     101(e)(3) of such title, except that the term is limited to 
     operational ranges under the jurisdiction, custody, or 
     control of the Secretary of the Navy that are used by or 
     available for use by the Marine Corps.
       (3) The term ``range activities'' has the meaning given 
     that term in section 101(e)(2) of such title.

     SEC. 2830. NIAGARA AIR RESERVE BASE, NEW YORK, BASING REPORT.

       Not later than March 1, 2008, the Secretary of the Air 
     Force shall submit to the congressional defense committees a 
     report containing a detailed plan of the current and future 
     aviation assets that the Secretary expects will be based at 
     Niagara Air Reserve Base, New York. The report shall include 
     a description of all of the aviation assets that will be 
     impacted by the series of relocations to be made to or from 
     Niagara Air Reserve Base and the timeline for such 
     relocations.

     SEC. 2831. REPORT ON THE PINON CANYON MANEUVER SITE, 
                   COLORADO.

       (a) Report on the Pinon Canyon Maneuver Site.--
       (1) Report required.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of the Army 
     shall submit to the congressional defense committees a report 
     on the Pinon Canyon Maneuver Site (referred to in this 
     section as ``the Site'').
       (2) Content.--The report required under paragraph (1) shall 
     include the following:
       (A) An analysis of whether existing training facilities at 
     Fort Carson, Colorado, and the Site are sufficient to support 
     the training needs of units stationed or planned to be 
     stationed at Fort Carson, including the following:
       (i) A description of any new training requirements or 
     significant developments affecting training requirements for 
     units stationed or planned to be stationed at Fort Carson 
     since the 2005 Defense Base Closure and Realignment 
     Commission found that the base has ``sufficient capacity'' to 
     support four brigade combat teams and associated support 
     units at Fort Carson.
       (ii) A study of alternatives for enhancing training 
     facilities at Fort Carson and the Site within their current 
     geographic footprint, including whether these additional 
     investments or measures could support additional training 
     activities.
       (iii) A description of the current training calendar and 
     training load at the Site, including--

       (I) the number of brigade-sized and battalion-sized 
     military exercises held at the Site since its establishment;
       (II) an analysis of the maximum annual training load at the 
     Site, without expanding the Site; and
       (III) an analysis of the training load and projected 
     training calendar at the Site when all brigades stationed or 
     planned to be stationed at Fort Carson are at home station.

       (B) A report of need for any proposed addition of training 
     land to support units stationed or planned to be stationed at 
     Fort Carson, including the following:
       (i) A description of additional training activities, and 
     their benefits to operational readiness, which would be 
     conducted by units stationed at Fort Carson if, through 
     leases or acquisition from consenting landowners, the Site 
     were expanded to include--

       (I) the parcel of land identified as ``Area A'' in the 
     Potential PCMS Land expansion map;
       (II) the parcel of land identified as ``Area B'' in the 
     Potential PCMS Land expansion map;
       (III) the parcels of land identified as ``Area A'' and 
     ``Area B'' in the Potential PCMS Land expansion map;
       (IV) acreage sufficient to allow simultaneous exercises of 
     a light infantry brigade and a heavy infantry brigade at the 
     Site;
       (V) acreage sufficient to allow simultaneous exercises of 
     two heavy infantry brigades at the Site;
       (VI) acreage sufficient to allow simultaneous exercises of 
     a light infantry brigade and a battalion at the Site; and
       (VII) acreage sufficient to allow simultaneous exercises of 
     a heavy infantry brigade and a battalion at the Site.

       (ii) An analysis of alternatives for acquiring or utilizing 
     training land at other installations in the United States to 
     support training activities of units stationed at Fort 
     Carson.
       (iii) An analysis of alternatives for utilizing other 
     federally owned land to support training activities of units 
     stationed at Fort Carson.
       (C) An analysis of alternatives for enhancing economic 
     development opportunities in southeastern Colorado at the 
     current Site or through any proposed expansion, including the 
     consideration of the following alternatives:
       (i) The leasing of land on the Site or any expansion of the 
     Site to ranchers for grazing.

[[Page 32676]]

       (ii) The leasing of land from private landowners for 
     training.
       (iii) The procurement of additional services and goods, 
     including biofuels and beef, from local businesses.
       (iv) The creation of an economic development fund to 
     benefit communities, local governments, and businesses in 
     southeastern Colorado.
       (v) The establishment of an outreach office to provide 
     technical assistance to local businesses that wish to bid on 
     Department of Defense contracts.
       (vi) The establishment of partnerships with local 
     governments and organizations to expand regional tourism 
     through expanded access to sites of historic, cultural, and 
     environmental interest on the Site.
       (vii) An acquisition policy that allows willing sellers to 
     minimize the tax impact of a sale.
       (viii) Additional investments in Army missions and 
     personnel, such as stationing an active duty unit at the 
     Site, including--

       (I) an analysis of anticipated operational benefits; and
       (II) an analysis of economic impacts to surrounding 
     communities.

       (3) Potential pcms land expansion map defined.--In this 
     subsection, the term ``Potential PCMS Land expansion map'' 
     means the June 2007 map entitled ``Potential PCMS Land 
     expansion''.
       (b) Comptroller General Review of Report.--Not later than 
     180 days after the Secretary of Defense submits the report 
     required under subsection (a), the Comptroller General of the 
     United States shall submit to Congress a review of the report 
     and of the justification of the Army for expansion at the 
     Site.
       (c) Public Comment.--After the report required under 
     subsection (b) is submitted to Congress, the Army shall 
     solicit public comment on the report for a period of not less 
     than 90 days. Not later than 30 days after the public comment 
     period has closed, the Secretary shall submit to Congress a 
     written summary of comments received.
                      Subtitle C--Land Conveyances

     SEC. 2841. MODIFICATION OF CONVEYANCE AUTHORITY, MARINE CORPS 
                   BASE, CAMP PENDLETON, CALIFORNIA.

       Section 2851(a) of the Military Construction Authorization 
     Act for Fiscal Year 1999 (division B of Public Law 105-261; 
     112 Stat. 2219) is amended by striking ``, notwithstanding 
     any provision of State law to the contrary,'', as added by 
     section 2867 of Public Law 107-107 (115 Stat. 1334).

     SEC. 2842. GRANT OF EASEMENT, EGLIN AIR FORCE BASE, FLORIDA.

       (a) Grant Authorized.--Secretary of the Air Force may use 
     the authority provided by section 2668 of title 10, United 
     States Code, to grant to the Mid Bay Bridge Authority an 
     easement for a roadway right-of-way over such land at Eglin 
     Air Force Base, Florida, as the Secretary determines 
     necessary to facilitate the construction of a road connecting 
     the northern landfall of the Mid Bay Bridge to Florida State 
     Highway 85.
       (b) Consideration.--As consideration for the grant of the 
     easement under subsection (a), the Mid Bay Bridge Authority 
     shall pay to the Secretary an amount equal to the fair-
     market-value of the easement, as determined by the Secretary.
       (c) Costs of Project.--As a condition of the grant of the 
     easement under subsection (a), the Mid Bay Bridge Authority 
     shall be responsible for all costs associated with the 
     highway project described in such subsection, including all 
     costs the Secretary determines to be necessary to address any 
     impacts that the project may have on the defense missions at 
     Eglin Air Force Base.

     SEC. 2843. LAND CONVEYANCE, LYNN HAVEN FUEL DEPOT, LYNN 
                   HAVEN, FLORIDA.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey to Florida State University (in this section 
     referred to as the ``University'') all right, title, and 
     interest of the United States in and to a parcel of real 
     property, including improvements thereon, consisting of 
     approximately 40 acres located at the Lynn Haven Fuel Depot 
     in Lynn Haven, Florida, as a public benefit conveyance for 
     the purpose of permitting the University to develop the 
     property as a new satellite campus.
       (b) Consideration.--
       (1) In general.--For the conveyance of the property under 
     subsection (a), the University shall provide the United 
     States with consideration in an amount that is acceptable to 
     the Secretary, whether in the form of cash payment, in-kind 
     consideration, or a combination thereof.
       (2) Reduced tuition rates.--The Secretary may accept as in-
     kind consideration under paragraph (1) reduced tuition rates 
     or scholarships for military personnel at the University.
       (c) Payment of Costs of Conveyances.--
       (1) Payment required.--The Secretary shall require the 
     University 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, appraisal costs, and other costs 
     related to the conveyance. If amounts are collected from the 
     University 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 University.
       (2) Treatment of amounts received.--Amounts received under 
     paragraph (1) as reimbursement for costs incurred by the 
     Secretary to carry out the 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) Use of Property for Other Than Intended Purposes.--If 
     the Secretary determines at any time that the real property 
     conveyed under subsection (a) is not being used in accordance 
     with the purposes of the conveyance specified in such 
     subsection, the University shall pay to the United States an 
     amount equal to the fair market value of the property, as of 
     the time of such determination. The fair market value of the 
     property, excluding the value of any improvements made to the 
     property by the University, shall be determined by the 
     Secretary in accordance with Federal appraisal standards and 
     procedures.
       (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 subsections (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2844. MODIFICATION OF LEASE OF PROPERTY, NATIONAL FLIGHT 
                   ACADEMY AT THE NATIONAL MUSEUM OF NAVAL 
                   AVIATION, NAVAL AIR STATION, PENSACOLA, 
                   FLORIDA.

       Section 2850(a) of the Military Construction Authorization 
     Act for Fiscal Year 2001 (division B of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398; 114 Stat. 1654A-428)) 
     is amended--
       (1) by striking ``naval aviation and'' and inserting 
     ``naval aviation,''; and
       (2) by inserting before the period at the end the 
     following: ``, and, as of January 1, 2008, to teach the 
     science, technology, engineering, and mathematics disciplines 
     that have an impact on and relate to aviation''.

     SEC. 2845. LAND EXCHANGE, DETROIT, MICHIGAN.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of General Services.
       (2) City.--The term ``City'' means the city of Detroit, 
     Michigan.
       (3) City land.--The term ``City land'' means the 
     approximately 0.741 acres of real property, including any 
     improvement thereon, as depicted on the exchange maps, that 
     is commonly identified as 110 Mount Elliott Street, Detroit, 
     Michigan.
       (4) Commandant.--The term ``Commandant'' means the 
     Commandant of the United States Coast Guard.
       (5) EDC.--The term ``EDC'' means the Economic Development 
     Corporation of the City of Detroit.
       (6) Exchange maps.--The term ``exchange maps'' means the 
     maps entitled ``Atwater Street Land Exchange Maps'' prepared 
     pursuant to subsection (f).
       (7) Federal land.--The term ``Federal land'' means 
     approximately 1.26 acres of real property, including any 
     improvements thereon, as depicted on the exchange maps, that 
     is commonly identified as 2660 Atwater Street, Detroit, 
     Michigan, and under the administrative control of the United 
     States Coast Guard.
       (8) Sector detroit.--The term ``Sector Detroit'' means 
     Coast Guard Sector Detroit of the Ninth Coast Guard District.
       (b) Conveyance Authorized.--The Commandant of the Coast 
     Guard, in coordination with the Administrator, may convey to 
     the EDC all right, title, and interest of the United States 
     in and to the Federal land.
       (c) Consideration.--
       (1) In general.--As consideration for the conveyance under 
     subsection (b)--
       (A) the City shall convey to the United States all right, 
     title, and interest in and to the City land; and
       (B) the EDC shall construct a facility and parking lot 
     acceptable to the Commandant of the Coast Guard.
       (2) Equalization payment option.--
       (A) In general.--The Commandant may, upon the agreement of 
     the City and the EDC, waive the requirement to construct a 
     facility and parking lot under paragraph (1)(B) and accept in 
     lieu thereof an equalization payment from the City equal to 
     the difference between the value, as determined by the 
     Administrator at the time of transfer, of the Federal land 
     and the City land.
       (B) Availability of funds.--Any amounts received pursuant 
     to subparagraph (A) shall be available to the Commandant, 
     without further appropriation and until expended, to 
     construct, expand, or improve facilities related to Sector 
     Detroit's aids to navigation or vessel maintenance.
       (d) Conditions of Exchange.--
       (1) Covenants.--All conditions placed within the deeds of 
     title shall be construed as covenants running with the land.
       (2) Authority to accept quitclaim deed.--The Commandant may 
     accept a quitclaim deed for the City land and may convey the 
     Federal land by quitclaim deed.
       (3) Environmental remediation.--Prior to the time of the 
     exchange, the Coast Guard and the EDC shall remediate any and 
     all contaminants existing on their respective properties to 
     levels required by applicable State and Federal law. The 
     Commandant and, as a condition of the exchange, the EDC shall 
     make available for review and inspection any record relating 
     to hazardous materials on the land to be exchanged under this 
     section. The costs of remedial actions relating to hazardous 
     materials on

[[Page 32677]]

     exchanged land shall be paid by those entities responsible 
     for costs under applicable law.
       (e) Authority To Enter Into License or Lease.--The 
     Commandant may enter into a license or lease agreement with 
     the Detroit Riverfront Conservancy for the use of a portion 
     of the Federal land for the Detroit Riverfront Walk. Such 
     license or lease shall be at no cost to the City and upon 
     such other terms that are acceptable to the Commandant, and 
     shall terminate upon the completion of the exchange 
     authorized by this section, or the date specified in 
     subsection (h), whichever occurs earlier.
       (f) Map and Legal Descriptions of Land.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the Commandant shall file with the 
     Committee on Commerce, Science and Transportation of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives the maps, entitled ``Atwater 
     Street Land Exchange Maps'', which depict the Federal land 
     and the City lands and provide a legal description of each 
     property to be exchanged.
       (2) Force of law.--The maps and legal descriptions filed 
     under paragraph (1) shall have the same force and effect as 
     if included in this Act, except that the Commandant may 
     correct typographical errors in the maps and each legal 
     description.
       (3) Public availability.--Each map and legal description 
     filed under paragraph (1) shall be on file and available for 
     public inspection in the appropriate offices of the Coast 
     Guard and the City.
       (g) Additional Terms and Conditions.--The Commandant may 
     require such additional terms and conditions in connection 
     with the exchange under this section as the Commandant 
     considers appropriate to protect the interests of the United 
     States.
       (h) Expiration of Authority To Convey.--The authority to 
     enter into the exchange authorized by this section shall 
     expire three years after the date of enactment of this Act.

     SEC. 2846. TRANSFER OF JURISDICTION, FORMER NIKE MISSILE 
                   SITE, GROSSE ILE, MICHIGAN.

       (a) Transfer.--Administrative jurisdiction over the 
     property described in subsection (b) is hereby transferred 
     from the Administrator of the Environmental Protection Agency 
     to the Secretary of the Interior.
       (b) Property Described.--The property referred to in 
     subsection (a) is the former Nike missile site located at the 
     southern end of Grosse Ile, Michigan, as depicted on the map 
     entitled ``07-CE'' on file with the Environmental Protection 
     Agency and dated May 16, 1984.
       (c) Administration of Property.--Subject to subsection (d), 
     the Secretary of the Interior shall administer the property 
     described in subsection (b)--
       (1) acting through the United States Fish and Wildlife 
     Service;
       (2) as part of the Detroit River International Wildlife 
     Refuge; and
       (3) for use as a habitat for fish and wildlife and as a 
     recreational property for outdoor education and environmental 
     appreciation.
       (d) Management of Remediation.--The Secretary of Defense, 
     acting through the Army Corps of Engineers, shall manage and 
     carry out environmental remediation activities with respect 
     to the property described in subsection (b) that, at a 
     minimum, achieve the standard sufficient to allow the 
     property to be used as provided in subsection (c)(3). Such 
     remediation activities, with the exception of long-term 
     monitoring, shall be completed to achieve that standard not 
     later than two years after the date of the enactment of this 
     Act. The Secretary of Defense may use amounts made available 
     from the account established by section 2703(a)(5) of title 
     10, United States Code, to carry out such remediation.
       (e) Savings Provision.--Nothing in this section shall be 
     construed to affect or limit the application of, or any 
     obligation to comply with, any environmental law, including 
     the Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.) and the Solid 
     Waste Disposal Act (42 U.S.C. 6901 et seq.).

     SEC. 2847. MODIFICATION TO LAND CONVEYANCE AUTHORITY, FORT 
                   BRAGG, NORTH CAROLINA.

       (a) Requirement To Convey Tract No. 404-1 Property Without 
     Consideration.--Section 2836 of the Military Construction 
     Authorization Act for Fiscal Year 1998 (division B of Public 
     Law 105-85; 111 Stat. 2005) is amended--
       (1) in subsection (a)(3), by striking ``at fair market 
     value'' and inserting ``without consideration'';
       (2) in subsection (b), by striking paragraph (2) and 
     inserting the following new paragraph:
       ``(2) The conveyances under paragraphs (2) and (3) of 
     subsection (a) shall be subject to the condition that the 
     County develop and use the conveyed properties for 
     educational purposes and the construction of public school 
     structures.''; and
       (3) in subsection (c), by striking paragraph (2) and 
     inserting the following new paragraph:
       ``(2) If the Secretary determines at any time that the real 
     property conveyed under paragraph (2) or paragraph (3) of 
     subsection (a) is not being used in accordance with 
     subsection (b)(2), all right, title, and interest in and to 
     the property conveyed under such paragraph, including any 
     improvements thereon, shall revert, at the option of the 
     Secretary, to the United States, and the United States shall 
     have the right of immediate entry thereon.''.
       (b) Payment of Costs of Conveyance.--Such section is 
     further amended by adding at the end the following new 
     subsection:
       ``(f) Payment of Costs of Conveyance of Tract No. 404-1 
     Property.--
       ``(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 the conveyance under subsection (a)(3), 
     including survey costs, costs related to environmental 
     documentation, and other administrative costs related to the 
     conveyance. If amounts are collected from the County 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 County.
       ``(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.''.

     SEC. 2848. LAND CONVEYANCE, LEWIS AND CLARK UNITED STATES 
                   ARMY RESERVE CENTER, BISMARCK, NORTH DAKOTA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the United Tribes Technical 
     College all right, title, and interest of the United States 
     in and to a parcel of real property, including improvements 
     thereon, consisting of approximately 2 acres located at the 
     Lewis and Clark United States Army Reserve Center, 3319 
     University Drive, Bismarck, North Dakota, for the purpose of 
     supporting education at the United Tribes Technical College.
       (b) Reversionary Interest.--
       (1) In general.--Subject to paragraph (2), if the Secretary 
     determines at any time that the real property conveyed under 
     subsection (a) is not being used in accordance with the 
     purposes 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.
       (2) Expiration.--The reversionary interest under paragraph 
     (1) shall expire upon satisfaction of the following 
     conditions:
       (A) The real property conveyed under subsection (a) is used 
     in accordance with the purposes of the conveyance specified 
     in such subsection for a period of not less than 30 years 
     following the date of the conveyance.
       (B) After the end of period specified in subparagraph (A), 
     the United Tribes Technical College applies to the Secretary 
     for the release of the reversionary interest.
       (C) The Secretary certifies, in a manner that can be filed 
     with the appropriate land recordation office, that the 
     condition under subparagraph (A) has been satisfied.
       (c) Payment of Costs of Conveyance.--
       (1) Payment required.--The Secretary shall require the 
     United Tribes Technical College 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 
     United Tribes Technical 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 United Tribes Technical College.
       (2) Treatment of amounts received.--Amounts received as 
     reimbursements 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.

     SEC. 2849. LAND EXCHANGE, FORT HOOD, TEXAS.

       (a) Exchange Authorized.--The Secretary of the Army may 
     convey to the City of Copperas Cove, Texas (in this section 
     referred to as the ``City''), all right, title, and interest 
     of the United States in and to a parcel of real property, 
     including any improvements thereon, consisting of 
     approximately 200 acres at Fort Hood, Texas, for the purpose 
     of permitting the City to improve arterial transportation 
     routes in the community.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the City shall convey to the Secretary 
     all right, title, and interest of the City in and to one or 
     more parcels of real property that are acceptable to the 
     Secretary. The fair market value of the real property 
     acquired by the Secretary under this subsection shall be at 
     least equal to the fair market

[[Page 32678]]

     value of the real property conveyed under subsection (a), as 
     determined by appraisals acceptable to the Secretary.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be exchanged under this 
     section shall be determined by surveys satisfactory to the 
     Secretary.
       (d) Payment of Costs of Conveyances.--
       (1) Payment required.--The Secretary shall require the City 
     to cover costs to be incurred by the Secretary, or to 
     reimburse the Secretary for costs incurred by the Secretary, 
     to carry out the conveyances under this section, including 
     survey costs related to the conveyances. If amounts are 
     collected from the City 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 
     conveyances, the Secretary shall refund the excess amount to 
     the City.
       (2) Treatment of amounts received.--Amounts received under 
     paragraph (1) as reimbursement for costs incurred by the 
     Secretary to carry out the conveyances under this section 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyances. 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) Additional Term and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
                      Subtitle D--Energy Security

     SEC. 2861. REPEAL OF CONGRESSIONAL NOTIFICATION REQUIREMENT 
                   REGARDING CANCELLATION CEILING FOR DEPARTMENT 
                   OF DEFENSE ENERGY SAVINGS PERFORMANCE 
                   CONTRACTS.

       Section 2913 of title 10, United States Code, is amended by 
     striking subsection (e).

     SEC. 2862. DEFINITION OF ALTERNATIVE FUELED VEHICLE.

       Section 301(3) of the Energy Policy Act of 1992 (42 U.S.C. 
     13211(3)) is amended--
       (1) by striking ``(3) the term'' and inserting the 
     following:
       ``(3) Alternative fueled vehicle.--
       ``(A) In general.--The term''; and
       (2) by adding at the end the following:
       ``(B) Inclusions.--The term `alternative fueled vehicle' 
     includes--
       ``(i) a new qualified fuel cell motor vehicle (as defined 
     in section 30B(b)(3) of the Internal Revenue Code of 1986);
       ``(ii) a new advanced lean burn technology motor vehicle 
     (as defined in section 30B(c)(3) of that Code);
       ``(iii) a new qualified hybrid motor vehicle (as defined in 
     section 30B(d)(3) of that Code); and
       ``(iv) any other type of vehicle that the Administrator 
     demonstrates to the Secretary would achieve a significant 
     reduction in petroleum consumption.''.

     SEC. 2863. USE OF ENERGY EFFICIENT LIGHTING FIXTURES AND 
                   BULBS IN DEPARTMENT OF DEFENSE FACILITIES.

       (a) Construction and Alteration of Buildings.--Each 
     building constructed or significantly altered by the 
     Secretary of Defense or the Secretary of a military 
     department shall be equipped, to the maximum extent feasible 
     as determined by the Secretary concerned, with lighting 
     fixtures and bulbs that are energy efficient.
       (b) Maintenance of Buildings.--Each lighting fixture or 
     bulb that is replaced in the normal course of maintenance of 
     buildings under the jurisdiction of the Secretary of Defense 
     or the Secretary of a military department shall be replaced, 
     to the maximum extent feasible as determined by the Secretary 
     concerned, with a lighting fixture or bulb that is energy 
     efficient.
       (c) Considerations.--In making a determination under this 
     section concerning the feasibility of installing a lighting 
     fixture or bulb that is energy efficient, the Secretary of 
     Defense or the Secretary of a military department shall 
     consider--
       (1) the life cycle cost effectiveness of the fixture or 
     bulb;
       (2) the compatibility of the fixture or bulb with existing 
     equipment;
       (3) whether use of the fixture or bulb could result in 
     interference with productivity;
       (4) the aesthetics relating to use of the fixture or bulb; 
     and
       (5) such other factors as the Secretary concerned 
     determines appropriate.
       (d) Energy Star.--A lighting fixture or bulb shall be 
     treated as being energy efficient for purposes of this 
     section if--
       (1) the fixture or bulb is certified under the Energy Star 
     program established by section 324A of the Energy Policy and 
     Conservation Act (42 U.S.C. 6294a); or
       (2) the Secretary of Defense or the Secretary of a military 
     department has otherwise determined that the fixture or bulb 
     is energy efficient.
       (e) Significant Alterations.--A building shall be treated 
     as being significantly altered for purposes of subsection (a) 
     if the alteration is subject to congressional authorization 
     under section 2802 of title 10, United States Code.
       (f) Waiver Authority.--The Secretary of Defense may waive 
     the requirements of this section if the Secretary determines 
     that such a waiver is necessary to protect the national 
     security interests of the United States.
       (g) Effective Date.--The requirements of subsections (a) 
     and (b) shall take effect one year after the date of the 
     enactment of this Act.

     SEC. 2864. REPORTING REQUIREMENTS RELATING TO RENEWABLE 
                   ENERGY USE BY DEPARTMENT OF DEFENSE TO MEET 
                   DEPARTMENT ELECTRICITY NEEDS.

       (a) Initial Report.--Not later than 120 days after the date 
     of the enactment of this Act, the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics shall submit to 
     the congressional defense committees a report containing the 
     following information:
       (1) The extent to which energy from renewable energy 
     sources is used to meet the electricity needs of the 
     Department of Defense, to be stated as a percentage of total 
     facility electricity use for the previous fiscal year.
       (2) The extent to which energy from renewable energy 
     sources was procured through alternative financing methods, 
     to be stated as a percentage of total renewable energy 
     procurement and as a dollar amount for the previous fiscal 
     year.
       (3) The extent to which energy from renewable energy 
     sources was procured through the use of appropriated funds, 
     to be stated as a percentage of total renewable energy 
     procurement and as a dollar amount for the previous fiscal 
     year.
       (4) A graphical illustration of energy use from renewable 
     energy sources by the Department as a percentage of total 
     facility electricity use over time, starting no later than 
     fiscal year 2000 and running through fiscal year 2025, 
     including projected future trends in renewable energy 
     consumption through fiscal year 2025 in order to meet the 
     goals for renewable energy set forth in section 2911(e) of 
     title 10, United States Code, or other goals, as appropriate.
       (b) Subsequent Reports.--For fiscal year 2008 and each 
     fiscal year thereafter, the information required by 
     paragraphs (1) through (4) of subsection (a) shall be 
     included in the Annual Energy Management Report prepared by 
     the Under Secretary of Defense for Acquisition, Technology, 
     and Logistics.
       (c) Renewable Energy Sources Defined.--In this section, the 
     term ``renewable energy sources'' has the meaning given that 
     term in section 203(b) of the Energy Policy Act of 2005 (42 
     U.S.C. 15852(b)).
                       Subtitle E--Other Matters

     SEC. 2871. REVISED DEADLINE FOR TRANSFER OF ARLINGTON NAVAL 
                   ANNEX TO ARLINGTON NATIONAL CEMETERY.

       Subsection (h) of section 2881 of the Military Construction 
     Authorization Act for Fiscal Year 2000 (division B of Public 
     Law 106-65; 113 Stat. 879), as amended by section 2863 of the 
     Military Construction Authorization Act for Fiscal Year 2002 
     (division B of Public Law 107-107; 115 Stat. 1330), section 
     2851 of the Military Construction Authorization Act for 
     Fiscal Year 2003 (division B of Public Law 107-314; 116 Stat. 
     2726), and section 2881 of the Military Construction 
     Authorization Act for Fiscal Year 2005 (division B of Public 
     Law 108-375; 115 Stat. 2153), is further amended by striking 
     paragraphs (1) and (2) and inserting the following new 
     paragraphs:
       ``(1) January 1, 2011;
       ``(2) the date on which the Navy Annex property is no 
     longer required (as determined by the Secretary of Defense) 
     for use as temporary office space; or
       ``(3) one year after the date on which the Secretary of the 
     Army notifies the Secretary of Defense that the Navy Annex 
     property is needed for the expansion of Arlington National 
     Cemetery.''.

     SEC. 2872. TRANSFER OF JURISDICTION OVER AIR FORCE MEMORIAL 
                   TO DEPARTMENT OF THE AIR FORCE.

       (a) Transfer of Jurisdiction.--Notwithstanding section 2881 
     of the Military Construction Authorization Act for Fiscal 
     Year 2000 (division B of Public Law 106-65; 113 Stat. 879) 
     and section 2863 of the Military Construction Authorization 
     Act for Fiscal Year 2002 (division B of Public Law 107-107; 
     115 Stat. 1330; 40 U.S.C. 1003 note), the Secretary of the 
     Army may transfer administrative jurisdiction, custody, and 
     control of the parcel of Federal land described in subsection 
     (b)(1) of such section 2863 to the Secretary of the Air 
     Force.
       (b) Limitation on Payment of Expenses.--If the Air Force 
     Memorial is transferred to the Secretary of the Air Force as 
     authorized by subsection (a), the United States shall not pay 
     any costs incurred for the maintenance and repair of the Air 
     Force Memorial.

     SEC. 2873. REPORT ON PLANS TO REPLACE THE MONUMENT AT THE 
                   TOMB OF THE UNKNOWNS AT ARLINGTON NATIONAL 
                   CEMETERY, VIRGINIA.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of the Army 
     and the Secretary of Veterans Affairs shall jointly submit to 
     Congress a report setting forth the following:
       (1) The current plans of the Secretaries with respect to--
       (A) replacing the monument at the Tomb of the Unknowns at 
     Arlington National Cemetery, Virginia; and
       (B) disposing of the current monument at the Tomb of the 
     Unknowns, if it were removed and replaced.
       (2) An assessment of the feasibility and advisability of 
     repairing the monument at the Tomb of the Unknowns rather 
     than replacing it.
       (3) A description of the current efforts of the Secretaries 
     to maintain and preserve the monument at the Tomb of the 
     Unknowns.
       (4) An explanation of why no attempt has been made since 
     1989 to repair the monument at the Tomb of the Unknowns.
       (5) A comprehensive estimate of the cost of replacement of 
     the monument at the Tomb of the

[[Page 32679]]

     Unknowns and the cost of repairing such monument.
       (6) An assessment of the structural integrity of the 
     monument at the Tomb of the Unknowns.
       (b) Limitation on Action.--The Secretary of the Army and 
     the Secretary of Veterans Affairs may not take any action to 
     replace the monument at the Tomb of the Unknowns at Arlington 
     National Cemetery, Virginia, until 180 days after the date of 
     the receipt by Congress of the report required by subsection 
     (a).
       (c) Exception.--The limitation in subsection (b) shall not 
     prevent the Secretary of the Army or the Secretary of 
     Veterans Affairs from repairing the current monument at the 
     Tomb of the Unknowns or from acquiring any blocks of marble 
     for uses related to such monument, subject to the 
     availability of appropriations for those purposes.

     SEC. 2874. INCREASED AUTHORITY FOR REPAIR, RESTORATION, AND 
                   PRESERVATION OF LAFAYETTE ESCADRILLE MEMORIAL, 
                   MARNES-LA-COQUETTE, FRANCE.

       Section 1065 of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1233) is 
     amended--
       (1) in subsection (a)(2), by striking ``$2,000,000'' and 
     inserting ``$2,500,000''; and
       (2) in subsection (e), by striking ``under section 
     301(a)(4)''.

     SEC. 2875. ADDITION OF WOONSOCKET LOCAL PROTECTION PROJECT.

       Section 2866 of the Military Construction Authorization Act 
     for Fiscal Year 2007 (division B of Public Law 109-364; 120 
     Stat. 2499) is amended by adding at the end the following new 
     subsection:
       ``(d) Woonsocket Local Protection Project.--
       ``(1) Assumption of responsibility.--The Secretary of the 
     Army, acting through the Chief of Engineers, shall assume 
     responsibility for the annual operation and maintenance of 
     the Woonsocket local protection project authorized by section 
     10 of the Act of December 22, 1944 (commonly known as the 
     Flood Control Act of 1944; 58 Stat. 892, chapter 665), 
     including by acquiring, in accordance with paragraph (2), any 
     interest of the city of Woonsocket, Rhode Island, in and to 
     land and structures required for the continued operation and 
     maintenance, repair, replacement, rehabilitation, and 
     structural integrity of the project, as identified by the 
     city, in coordination with the Secretary.
       ``(2) Acquisition.--As a condition on the Secretary's 
     assumption of responsibility for the Woonsocket local 
     protection project under paragraph (1), the city of 
     Woonsocket shall convey, not later than one year after the 
     date of the enactment of the National Defense Authorization 
     Act for Fiscal Year 2008, to the Secretary of the Army, by 
     quitclaim deed and without consideration, all right, title, 
     and interest of the city in and to the Woonsocket local 
     protection project, including any interest of the city in and 
     to land and structures required for the continued operation 
     and maintenance, repair, replacement, rehabilitation, and 
     structural integrity of the project, as identified by the 
     city.''.

     SEC. 2876. REPEAL OF MORATORIUM ON IMPROVEMENTS AT FORT 
                   BUCHANAN, PUERTO RICO.

       Section 1507 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-355) is repealed.

     SEC. 2877. ESTABLISHMENT OF NATIONAL MILITARY WORKING DOG 
                   TEAMS MONUMENT ON SUITABLE MILITARY 
                   INSTALLATION.

       (a) Authority To Establish Monument.--The Secretary of 
     Defense may permit the National War Dogs Monument, Inc., to 
     establish and maintain, at a suitable location at Fort 
     Belvoir, Virginia, or another military installation in the 
     United States, a national monument to honor the sacrifice and 
     service of United States Armed Forces working dog teams that 
     have participated in the military operations of the United 
     States.
       (b) Location and Design of Monument.--The actual location 
     and final design of the monument authorized by subsection (a) 
     shall be subject to the approval of the Secretary. In 
     selecting the military installation and site on such 
     installation to serve as the location for the monument, the 
     Secretary shall seek to maximize access to the resulting 
     monument for both visitors and their dogs.
       (c) Maintenance.--The maintenance of the monument 
     authorized by subsection (a) by the National War Dogs 
     Monument, Inc., shall be subject to such conditions regarding 
     access to the monument, and such other conditions, as the 
     Secretary considers appropriate to protect the interests of 
     the United States.
       (d) Limitation on Payment of Expenses.--The United States 
     Government shall not pay any expense for the establishment or 
     maintenance of the monument authorized by subsection (a).

     SEC. 2878. REPORT REQUIRED PRIOR TO REMOVAL OF MISSILES FROM 
                   564TH MISSILE SQUADRON.

       (a) Report Required.--The Secretary of Defense shall submit 
     to the congressional defense committees a report on the 
     feasibility of establishing an association between the 120th 
     Fighter Wing of the Montana Air National Guard and active 
     duty personnel stationed at Malmstrom Air Force Base, 
     Montana. In preparing the report, the Secretary shall include 
     the following evaluations:
       (1) An evaluation of the requirement of the Air Force for 
     additional F-15 aircraft active or reserve component force 
     structure.
       (2) An evaluation of the airspace training opportunities in 
     the immediate airspace around Great Falls International 
     Airport Air Guard Station.
       (3) An evaluation of the impact of civilian operations on 
     military operations at Great Falls International Airport.
       (4) An evaluation of the level of civilian encroachment on 
     the facilities and airspace of the 120th Fighter Wing.
       (5) An evaluation of the support structure available, 
     including active military bases nearby.
       (6) An evaluation of opportunities for additional 
     association between the Montana National Guard and the 341st 
     Space Wing.
       (b) Limitation on Removal Pending Report.--Not more than 40 
     missiles may be removed from the 564th Missile Squadron until 
     15 days after the report required in subsection (a) has been 
     submitted.

     SEC. 2879. REPORT ON CONDITION OF SCHOOLS UNDER JURISDICTION 
                   OF DEPARTMENT OF DEFENSE EDUCATION ACTIVITY.

       (a) Report Required.--Not later than March 1, 2008, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the conditions of schools 
     under the jurisdiction of the Department of Defense Education 
     Activity.
       (b) Content.--The report required under subsection (a) 
     shall include the following:
       (1) A description of each school under the control of the 
     Secretary, including the location, year constructed, grades 
     of attending children, maximum capacity, and current capacity 
     of the school.
       (2) A description of the standards and processes used by 
     the Secretary to assess the adequacy of the size of school 
     facilities, the ability of facilities to support school 
     programs, and the current condition of facilities.
       (3) A description of the conditions of the facility or 
     facilities at each school, including the level of compliance 
     with the standards described in paragraph (2), any existing 
     or projected facility deficiencies or inadequate conditions 
     at each facility, and whether any of the facilities listed 
     are temporary structures.
       (4) An investment strategy planned for each school to 
     correct deficiencies identified in paragraph (3), including a 
     description of each project to correct such deficiencies, 
     cost estimates, and timelines to complete each project.
       (5) A description of requirements for new schools to be 
     constructed over the next 10 years as a result of changes to 
     the population of military personnel.
       (c) Use of Report as Master Plan for Repair, Upgrade, and 
     Construction of Schools.--The Secretary shall use the report 
     required under subsection (a) as a master plan for the 
     repair, upgrade, and construction of schools in the 
     Department of Defense system that support dependents of 
     members of the Armed Forces and civilian employees of the 
     Department of Defense.

     SEC. 2880. REPORT ON FACILITIES AND OPERATIONS OF DARNALL 
                   ARMY MEDICAL CENTER, FORT HOOD MILITARY 
                   RESERVATION, TEXAS.

       (a) In General.--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 
     assessing the facilities and operations of the Darnall Army 
     Medical Center at Fort Hood Military Reservation, Texas.
       (b) Content.--The report required under subsection (a) 
     shall include the following:
       (1) A specific determination of whether the facilities 
     currently housing Darnall Army Medical Center meet Department 
     of Defense standards for Army medical centers.
       (2) A specific determination of whether the existing 
     facilities adequately support the operations of Darnall Army 
     Medical Center, including the missions of medical treatment, 
     medical hold, medical holdover, and Warriors in Transition.
       (3) A specific determination of whether the existing 
     facilities provide adequate physical space for the number of 
     personnel that would be required for Darnall Army Medical 
     Center to function as a full-sized Army medical center.
       (4) A specific determination of whether the current levels 
     of medical and medical-related personnel at Darnall Army 
     Medical Center are adequate to support the operations of a 
     full-sized Army medical center.
       (5) A specific determination of whether the current levels 
     of graduate medical education and medical residency programs 
     currently in place at Darnall Army Medical Center are 
     adequate to support the operations of a full-sized Army 
     medical center.
       (6) A description of any and all deficiencies identified by 
     the Secretary.
       (7) A proposed investment plan and timeline to correct such 
     deficiencies.

     SEC. 2881. REPORT ON FEASIBILITY OF ESTABLISHING A REGIONAL 
                   DISASTER RESPONSE CENTER AT KELLY AIR FIELD, 
                   SAN ANTONIO, TEXAS.

       (a) Findings.--Congress makes the following findings:
       (1) The Federal response to Hurricane Katrina demonstrated 
     the need for greater coordination and planning capability at 
     the Federal, State, and local levels of government.
       (2) Coordination of State and local assets can be more 
     effectively accomplished if such assets are organized on a 
     regional basis similar to the manner in which the Federal 
     Emergency Management Agency organizes its efforts.

[[Page 32680]]

       (3) Despite the obvious need for experienced and routinely 
     exercised operational headquarters skilled in disaster 
     response, no such headquarters have been established.
       (4) Such a headquarters would be appropriately located on 
     available Federal property in Region VI of the Federal 
     Emergency Management Agency, which includes Texas, Louisiana, 
     Oklahoma, Arkansas, and New Mexico, and is a region subject 
     to forest fires, floods, hurricanes, and tornadoes.
       (b) Report Required.--Not later than March 31, 2008, the 
     Secretary of Defense, in coordination with the Secretary of 
     Homeland Security, shall submit to Congress a report on the 
     feasibility of establishing at Kelly Air Field in San 
     Antonio, Texas, a permanent, regionally oriented disaster 
     response center responsible for planning, coordinating, and 
     directing the Federal, State, and local response to man-made 
     and natural disasters that occur in Region VI of the Federal 
     Emergency Management Agency.
       (c) Content.--The report required under subsection (b) 
     shall include the following:
       (1) A determination of how the regional disaster response 
     center, if established at Kelly Air Field, would organize and 
     leverage capabilities of the following currently co-located 
     organizations, facilities, and forces located in San Antonio, 
     Texas:
       (A) Lackland Air Force Base.
       (B) Fort Sam Houston.
       (C) Brooke Army Medical Center.
       (D) Wilford Hall Medical Center.
       (E) City of San Antonio/Bexar County Emergency Operations 
     Center.
       (F) Audie Murphy Veterans Administration Medical Center.
       (G) 433rd Airlift Wing C-5 Heavy Lift Aircraft.
       (H) 149 Fighter Wing and Texas Air National Guard F-16 
     fighter aircraft.
       (I) Army Northern Command.
       (J) The three level 1 trauma centers of the National Trauma 
     Institute.
       (K) Texas Medical Rangers.
       (L) San Antonio Metro Health Department.
       (M) The University of Texas Health Science Center at San 
     Antonio.
       (N) The Air Intelligence Surveillance and Reconnaissance 
     Agency at Lackland Air Force Base.
       (O) The United States Air Force Security Police Training 
     Department at Lackland Air Force Base.
       (P) The large manpower pools and blood donor pools from the 
     more than 6,000 trainees at Lackland Air Force Base.
       (2) A determination of the number of military and civilian 
     personnel who would have to be mobilized to run the 
     logistics, planning, and maintenance of the regional disaster 
     response center, if established at Kelly Air Field, during a 
     time of disaster recovery.
       (3) A determination of the number of military and civilian 
     personnel who would be required to run the logistics, 
     planning, and maintenance of the regional disaster response 
     center during a time when no disaster is occurring.
       (4) A determination of the cost of improving the current 
     infrastructure at Kelly Air Field to meet the needs of 
     displaced victims of a disaster equivalent to that of 
     Hurricanes Katrina and Rita or a natural or man-made disaster 
     of similar scope, including adequate beds, food stores, and 
     decontamination stations to triage radiation or other 
     chemical or biological agent contamination victims.
       (5) An evaluation of the current capability of the 
     Department of Defense and the Department of Homeland Security 
     to respond to these mission requirements and an assessment of 
     any additional capabilities that are required.
       (6) An assessment of the costs and benefits of adding such 
     capabilities at Kelly Air Field to the costs and benefits of 
     other locations.

     SEC. 2882. NAMING OF HOUSING FACILITY AT FORT CARSON, 
                   COLORADO, IN HONOR OF THE HONORABLE JOEL 
                   HEFLEY, A FORMER MEMBER OF THE UNITED STATES 
                   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 served in 
     the House of Representatives until the end of the 109th 
     Congress in 2007 with distinction, class, integrity, and 
     honor.
       (2) Representative Hefley 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, from 
     2001 until 2007, as Chairman of the Subcommittee on 
     Readiness.
       (3) Representative Hefley was a fair and effective lawmaker 
     who worked for the national interest while never forgetting 
     his Western roots.
       (4) Representative Hefley's efforts on the Committee on 
     Armed Services were 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 consistently advocated for 
     providing members of the Armed Forces and their families with 
     quality, safe, and affordable housing and supportive 
     communities.
       (7) Representative Hefley spearheaded the Military Housing 
     Privatization Initiative to eliminate inadequate housing on 
     military installations, with the first pilot program located 
     at Fort Carson.
       (8) Representative Hefley's leadership on the Military 
     Housing Privatization Initiative 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.
       (9) It is fitting and proper that an appropriate military 
     family housing area or structure at Fort Carson be designated 
     in honor of Representative Hefley.
       (b) Designation.--Notwithstanding Army Regulation AR 1-33, 
     the Secretary of the Army shall designate one of the military 
     family housing areas or facilities constructed for Fort 
     Carson, Colorado, using the authority provided by subchapter 
     IV of chapter 169 of title 10, United States Code, as the 
     ``Joel Hefley Village''.

     SEC. 2883. NAMING OF NAVY AND MARINE CORPS RESERVE CENTER AT 
                   ROCK ISLAND, ILLINOIS, IN HONOR OF THE 
                   HONORABLE LANE EVANS, A FORMER MEMBER OF THE 
                   UNITED STATES HOUSE OF REPRESENTATIVES.

       (a) Findings.--Congress makes the following findings:
       (1) Representative Lane Evans was elected to the House of 
     Representatives in 1982 and served in the House of 
     Representatives until the end of the 109th Congress in 2007 
     representing the people of Illinois' 17th Congressional 
     district.
       (2) As a member of the Committee on Armed Services of the 
     House of Representatives, Representative Evans worked to 
     bring common sense priorities to defense spending and 
     strengthen the military's conventional readiness.
       (3) Representative Evans was 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.
       (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.
       (5) Representative Evans was 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.
       (6) Representative Evans worked with local leaders to 
     promote the Rock Island Arsenal, and it earned new jobs and 
     missions through his support.
       (7) In honor of his service in the Marine Corps and to his 
     district and the United States, it is fitting and proper that 
     the Navy and Marine Corps Reserve Center at Rock Island 
     Arsenal be named in honor of Representative Evans.
       (b) Designation.--The Navy and Marine Corps Reserve Center 
     at Rock Island Arsenal, Illinois, shall be known and 
     designated as the ``Lane Evans Navy and Marine Corps Reserve 
     Center''. Any reference in a law, map, regulation, document, 
     paper, or other record of the United States to the Navy and 
     Marine Corps Reserve Center at Rock Island Arsenal shall be 
     deemed to be a reference to the Lane Evans Navy and Marine 
     Corps Reserve Center.

     SEC. 2884. NAMING OF RESEARCH LABORATORY AT AIR FORCE ROME 
                   RESEARCH SITE, ROME, NEW YORK, IN HONOR OF THE 
                   HONORABLE SHERWOOD L. BOEHLERT, A FORMER MEMBER 
                   OF THE UNITED STATES HOUSE OF REPRESENTATIVES.

       The new laboratory building at the Air Force Rome Research 
     Site, Rome, New York, shall be known and designated as the 
     ``Sherwood Boehlert Center of Excellence for Information 
     Science and Technology''. Any reference in a law, map, 
     regulation, document, paper, or other record of the United 
     States to such laboratory facility shall be deemed to be a 
     reference to the Sherwood Boehlert Center of Excellence for 
     Information Science and Technology.

     SEC. 2885. NAMING OF ADMINISTRATION BUILDING AT JOINT SYSTEMS 
                   MANUFACTURING CENTER, LIMA, OHIO, IN HONOR OF 
                   THE HONORABLE MICHAEL G. OXLEY, A FORMER MEMBER 
                   OF THE UNITED STATES HOUSE OF REPRESENTATIVES.

       The administration building under construction at the Joint 
     Systems Manufacturing Center in Lima, Ohio, shall be known 
     and designated as the ``Michael G. Oxley Administration and 
     Technology Center''. Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to such 
     building shall be deemed to be a reference to the Michael G. 
     Oxley Administration and Technology Center.

     SEC. 2886. NAMING OF LOGISTICS AUTOMATION TRAINING FACILITY, 
                   ARMY QUARTERMASTER CENTER AND SCHOOL, FORT LEE, 
                   VIRGINIA, IN HONOR OF GENERAL RICHARD H. 
                   THOMPSON.

       Notwithstanding Army Regulation AR 1-33, the Logistics 
     Automation Training Facility of the Army Quartermaster Center 
     and School at Fort Lee, Virginia, shall be known and 
     designated as the ``General Richard H. Thompson Logistics 
     Automation Training Facility'' in honor of General Richard H. 
     Thompson, the only quartermaster to have risen from private 
     to full general. Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to such 
     facility shall be deemed to be a reference to the General 
     Richard H. Thompson Logistics Automation Training Facility.

[[Page 32681]]



     SEC. 2887. AUTHORITY TO RELOCATE JOINT SPECTRUM CENTER TO 
                   FORT MEADE, MARYLAND.

       (a) Authority To Carry Out Relocation Agreement.--The 
     Secretary of Defense may carry out an agreement to relocate 
     the Joint Spectrum Center, a geographically separated unit of 
     the Defense Information Systems Agency, from Annapolis, 
     Maryland, to Fort Meade, Maryland, or another military 
     installation if--
       (1) the Secretary determines that the relocation of the 
     Joint Spectrum Center is in the best interest of national 
     security and the physical protection of personnel and 
     missions of the Department of Defense; and
       (2) the agreement between the lease holder and the 
     Department of Defense provides equitable and appropriate 
     terms to facilitate the relocation.
       (b) Authorization.--Any facility, road, or infrastructure 
     constructed or altered on a military installation as a result 
     of the agreement referred to in subsection (a) is deemed to 
     be authorized in accordance with section 2802 of title 10, 
     United States Code.
       (c) Termination of Existing Lease.--Upon completion of the 
     relocation of the Joint Spectrum Center, all right, title, 
     and interest of the United States in and to the existing 
     lease for the Joint Spectrum Center shall be terminated, as 
     contemplated under Condition 29.B of the lease.
      TITLE XXIX--WAR-RELATED AND EMERGENCY MILITARY CONSTRUCTION 
                             AUTHORIZATIONS
Sec. 2901. Authorized Army construction and land acquisition projects.
Sec. 2902. Authorized Navy construction and land acquisition projects.
Sec. 2903. Authorized Air Force construction and land acquisition 
              projects.
Sec. 2904. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2905. Authorized base closure and realignment activities funded 
              through Department of Defense Base Closure Account 2005 
              and related authorization of appropriations.

     SEC. 2901. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in subsection 
     (c)(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
------------------------------------------------------------------------
Colorado.....................  Fort Carson..............      $8,100,000
Georgia......................  Fort Stewart.............      $6,000,000
Kansas.......................  Fort Riley...............     $50,000,000
Kentucky.....................  Fort Campbell............      $7,400,000
Louisiana....................  Fort Polk................      $4,900,000
New York.....................  Fort Drum................     $38,000,000
Texas........................  Fort Hood................      $9,100,000
------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in subsection 
     (c)(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
------------------------------------------------------------------------
Afghanistan..................  Bagram Air Base..........    $249,600,000
                               Ghazni...................      $5,000,000
                               Kabul....................     $36,000,000
Iraq.........................  Camp Adder...............     $80,650,000
                               Al Asad..................     $92,600,000
                               Camp Anaconda............     $53,500,000
                               Camp Constitution........     $11,700,000
                               Camp Cropper.............      $9,500,000
                               Fallujah.................        $880,000
                               Camp Marez...............        $880,000
                               Mosul....................     $43,000,000
                               Q-West...................     $26,000,000
                               Camp Ramadi..............        $880,000
                               Scania...................     $14,200,000
                               Camp Speicher............     $83,900,000
                               Camp Taqqadum............        $880,000
                               Tikrit...................     $43,000,000
                               Camp Victory.............     $65,400,000
                               Camp Warrior.............        $880,000
                               Various Locations........    $207,000,000
Kuwait.......................  Camp Arifjan.............     $30,000,000
------------------------------------------------------------------------

       (c) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2007, for military construction, land 
     acquisition, and military family housing functions of the 
     Department of the Army in the total amount of $1,257,750,000 
     as follows:
       (1) For military construction projects inside the United 
     States authorized by subsection (a), $123,500,000.
       (2) For military construction projects outside the United 
     States authorized by subsection (b), $1,055,450,000.
       (3) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $78,800,000.
       (d) Report Required Before Commencing Certain Projects.--
     Funds may not be obligated for the projects authorized by 
     subsection (b) for Camp Arifjan, Kuwait, or Camp Cropper, 
     Iraq, until 14 days after the date on which the Secretary of 
     Defense submits to the congressional defense committees a 
     report, in either unclassified or classified form, containing 
     a detailed justification for the project, including the 
     overall intent of the requested construction, host-nation 
     views, longevity of the site selected, and timelines for 
     completion. The Secretary shall submit the report not later 
     than January 15, 2008.

     SEC. 2902. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in subsection 
     (d)(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:

[[Page 32682]]



                                         Navy: Inside the United States
----------------------------------------------------------------------------------------------------------------
                   State                                 Installation or Location                    Amount
----------------------------------------------------------------------------------------------------------------
California................................  Camp Pendleton....................................      $102,034,000
                                            Twentynine Palms..................................        $4,440,000
North Carolina............................  Camp Lejeune......................................       $43,340,000
----------------------------------------------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in subsection 
     (d)(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
----------------------------------------------------------------------------------------------------------------
Djibouti..................................  Camp Lemonier.....................................       $25,410,000
----------------------------------------------------------------------------------------------------------------

       (c) Family Housing.--Using amounts appropriated pursuant to 
     the authorization of appropriations in subsection (d)(4), the 
     Secretary of the Navy may construct or acquire family housing 
     units (including land acquisition and supporting facilities) 
     at the installations or locations, and in the amounts, set 
     forth in the following table:

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                   State                                 Installation or Location                    Amount
----------------------------------------------------------------------------------------------------------------
California................................  Camp Pendleton....................................       $10,692,000
                                            Twentynine Palms..................................        $1,074,000
----------------------------------------------------------------------------------------------------------------

       (d) Authorization of Appropriations.--Subject to section 
     2825 of title 10, United States Code, funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2007, for military construction, land 
     acquisition, and military family housing functions of the 
     Department of the Navy in the total amount of $198,781,000, 
     as follows:
       (1) For military construction projects inside the United 
     States authorized by subsection (a), $149,814,000.
       (2) For military construction projects outside the United 
     States authorized by subsection (a), $25,410,000.
       (3) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $11,791,000.
       (4) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $11,766,000.

     SEC. 2903. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       (a) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in subsection 
     (b)(1), 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
----------------------------------------------------------------------------------------------------------------
Afghanistan...............................  Bagram Air Base...................................      $108,800,000
                                            Kandahar..........................................       $26,300,000
Iraq......................................  Balad Air Base....................................       $58,300,000
Kyrgyzstan................................  Manas Air Base....................................       $30,300,000
----------------------------------------------------------------------------------------------------------------

       (b) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2007, for military construction, land 
     acquisition, and military family housing functions of the 
     Department of the Air Force in the total amount of 
     $258,700,000, as follows:
       (1) For military construction projects outside the United 
     States authorized by subsection (a), $223,700,000.
       (2) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $35,000,000.

     SEC. 2904. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in subsection 
     (c)(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 table:

               Defense Agencies: Inside the United States
------------------------------------------------------------------------
            State               Installation or Location      Amount
------------------------------------------------------------------------
Texas........................  Fort Sam Houston.........     $21,000,000
------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in subsection 
     (c)(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 table:

                                   Defense Agencies: Outside the United States
----------------------------------------------------------------------------------------------------------------
                  Country                                Installation or Location                    Amount
----------------------------------------------------------------------------------------------------------------
Qatar.....................................  Al Udeid..........................................        $6,600,000
----------------------------------------------------------------------------------------------------------------

       (c) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2007, 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 $27,600,000 as follows:

[[Page 32683]]

       (1) For military construction projects inside the United 
     States authorized by subsection (a), $21,000,000.
       (2) For military construction projects outside the United 
     States authorized by subsection (a), $6,600,000.

     SEC. 2905. AUTHORIZED BASE CLOSURE AND REALIGNMENT ACTIVITIES 
                   FUNDED THROUGH DEPARTMENT OF DEFENSE BASE 
                   CLOSURE ACCOUNT 2005 AND RELATED AUTHORIZATION 
                   OF APPROPRIATIONS.

       (a) Authorized Base Closure and Realignment Activities 
     Funded Through Department of Defense Base Closure Account 
     2005.--Using amounts authorized appropriated pursuant to the 
     authorization of appropriations in subsection (b), the 
     Secretary of Defense may carry out base closure and 
     realignment activities otherwise authorized by section 2702 
     of this Act, 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 
     $423,650,000. Such amount is in addition to the amount 
     specified for such base closure and realignment activities in 
     section 2702 of this Act.
       (b) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2007, for base closure and realignment 
     activities authorized by subsection (a) and funded through 
     the Department of Defense Base Closure Account 2005 in the 
     total amount of $415,910,000.
 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.
Sec. 3105. Energy security and assurance.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Reliable Replacement Warhead program.
Sec. 3112. Nuclear test readiness.
Sec. 3113. Modification of reporting requirement.
Sec. 3114. Limitation on availability of funds for Fissile Materials 
              Disposition program.
Sec. 3115. Modification of limitations on availability of funds for 
              Waste Treatment and Immobilization Plant.
Sec. 3116. Modification of sunset date of the Office of the Ombudsman 
              of the Energy Employees Occupational Illness Compensation 
              Program.
Sec. 3117. Technical amendments.

                       Subtitle C--Other Matters

Sec. 3121. Study on using existing pits for the Reliable Replacement 
              Warhead program.
Sec. 3122. Report on retirement and dismantlement of nuclear warheads.
Sec. 3123. Plan for addressing security risks posed to nuclear weapons 
              complex.
Sec. 3124. Department of Energy protective forces.
Sec. 3125. Evaluation of National Nuclear Security Administration 
              strategic plan for advanced computing.
Sec. 3126. Sense of Congress on the nuclear nonproliferation policy of 
              the United States and the Reliable Replacement Warhead 
              program.
Sec. 3127. Department of Energy report on plan to strengthen and expand 
              International Radiological Threat Reduction program.
       Sec. 3128. Department of Energy report on plan to 
           strengthen and expand Materials Protection, Control, 
           and Accounting program.
       Sec. 3129. Agreements and reports on nuclear forensics 
           capabilities.
       Sec. 3130. Report on status of environmental management 
           initiatives to accelerate the reduction of 
           environmental risks and challenges posed by the legacy 
           of the Cold War.

                Subtitle D--Nuclear Terrorism Prevention

       Sec. 3131. Definitions.
       Sec. 3132. Sense of Congress on the prevention of nuclear 
           terrorism.
       Sec. 3133. Minimum security standard for nuclear weapons 
           and formula quantities of strategic special nuclear 
           material.
       Sec. 3134. Annual report.
         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 2008 for the activities of the National Nuclear 
     Security Administration in carrying out programs necessary 
     for national security in the amount of $9,576,095,000, to be 
     allocated as follows:
       (1) For weapons activities, $6,465,574,000.
       (2) For defense nuclear nonproliferation activities, 
     $1,902,646,000.
       (3) For naval reactors, $808,219,000.
       (4) For the Office of the Administrator for Nuclear 
     Security, $399,656,000.
       (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 new 
     plant projects for the National Nuclear Security 
     Administration as follows:
       (1) For readiness in technical base and facilities, the 
     following new plant projects:
       Project 08-D-801, High pressure fire loop, Pantex Plant, 
     Amarillo, Texas, $7,000,000.
       Project 08-D-802, High explosive pressing facility, Pantex 
     Plant, Amarillo, Texas, $25,300,000.
       Project 08-D-804, Technical Area 55 reinvestment project, 
     Los Alamos National Laboratory, Los Alamos, New Mexico, 
     $6,000,000.
       (2) For facilities and infrastructure recapitalization, the 
     following new plant projects:
       Project 08-D-601, Mercury highway, Nevada Test Site, 
     Nevada, $7,800,000.
       Project 08-D-602, Potable water system upgrades, Y-12 
     Plant, Oak Ridge, Tennessee, $22,500,000.
       (3) For safeguards and security, the following new plant 
     project:
       Project 08-D-701, Nuclear materials safeguards and security 
     upgrade, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $49,496,000.
       (4) For naval reactors, the following new plant projects:
       Project 08-D-901, Shipping and receiving and warehouse 
     complex, Bettis Atomic Power Laboratory, West Mifflin, 
     Pennsylvania, $9,000,000.
       Project 08-D-190, Project engineering and design, Expended 
     Core Facility M-290 Recovering Discharge Station, Naval 
     Reactors Facility, Idaho Falls, Idaho, $550,000.

     SEC. 3102. DEFENSE ENVIRONMENTAL CLEANUP.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated to the Department of Energy for 
     fiscal year 2008 for defense environmental cleanup activities 
     in carrying out programs necessary for national security in 
     the amount of $5,367,905,000.
       (b) Authorization for New Plant Project.--From funds 
     referred to in subsection (a) that are available for carrying 
     out plant projects, the Secretary of Energy may carry out, 
     for defense environmental cleanup activities, the following 
     new plant project:
       Project 08-D-414, Project engineering and design, Plutonium 
     Vitrification Facility, various locations, $9,000,000.

     SEC. 3103. OTHER DEFENSE ACTIVITIES.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2008 for other defense 
     activities in carrying out programs necessary for national 
     security in the amount of $763,974,000.

     SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2008 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 $292,046,000.

     SEC. 3105. ENERGY SECURITY AND ASSURANCE.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2008 for energy security 
     and assurance programs necessary for national security in the 
     amount of $5,860,000.
   Subtitle B--Program Authorizations, Restrictions, and Limitations

     SEC. 3111. RELIABLE REPLACEMENT WARHEAD PROGRAM.

       No funds appropriated pursuant to the authorization of 
     appropriations in section 3101(a)(1) or otherwise made 
     available for weapons activities of the National Nuclear 
     Security Administration for fiscal year 2008 may be obligated 
     or expended for activities under the Reliable Replacement 
     Warhead program under section 4204a of the Atomic Energy 
     Defense Act (50 U.S.C. 2524a) beyond phase 2A activities.

     SEC. 3112. NUCLEAR TEST READINESS.

       (a) Repeal of Requirements on Readiness Posture.--Section 
     3113 of the National Defense Authorization Act for Fiscal 
     Year 2004 (Public Law 108-136; 117 Stat. 1743; 50 U.S.C. 
     2528a) is repealed.
       (b) Reports on Nuclear Test Readiness Postures.--
       (1) In general.--Section 4208 of the Atomic Energy Defense 
     Act (50 U.S.C. 2528) is amended to read as follows:

     ``SEC. 4208. REPORTS ON NUCLEAR TEST READINESS.

       ``(a) In General.--Not later than March 1, 2009, and every 
     odd-numbered year thereafter, the Secretary of Energy shall 
     submit to the congressional defense committees a report on 
     the nuclear test readiness of the United States.
       ``(b) Elements.--Each report under subsection (a) shall 
     include, current as of the date of such report, the 
     following:
       ``(1) An estimate of the period of time that would be 
     necessary for the Secretary of Energy to conduct an 
     underground test of a nuclear weapon once directed by the 
     President to conduct such a test.
       ``(2) A description of the level of test readiness that the 
     Secretary of Energy, in consultation with the Secretary of 
     Defense, determines to be appropriate.
       ``(3) A list and description of the workforce skills and 
     capabilities that are essential to carrying out an 
     underground nuclear test at the Nevada Test Site.
       ``(4) A list and description of the infrastructure and 
     physical plant that are essential to carrying out an 
     underground nuclear test at the Nevada Test Site.

[[Page 32684]]

       ``(5) An assessment of the readiness status of the skills 
     and capabilities described in paragraph (3) and the 
     infrastructure and physical plant described in paragraph (4).
       ``(c) Form.--Each report under subsection (a) shall be 
     submitted in unclassified form, but may include a classified 
     annex.''.
       (2) Clerical amendment.--The item relating to section 4208 
     in the table of contents for such Act is amended to read as 
     follows:

``Sec. 4208. Reports on nuclear test readiness.''.

     SEC. 3113. MODIFICATION OF REPORTING REQUIREMENT.

       Section 3111 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3539) is 
     amended--
       (1) by redesignating subsections (c) and (d) as (d) and 
     (e), respectively;
       (2) by inserting after subsection (b) the following:
       ``(c) Form.--The report required by subsection (b) shall be 
     submitted in classified form, and shall include a detailed 
     unclassified summary.''; and
       (3) in subsection (e), as so redesignated, by striking 
     ``(c)'' and inserting ``(d)''.

     SEC. 3114. LIMITATION ON AVAILABILITY OF FUNDS FOR FISSILE 
                   MATERIALS DISPOSITION PROGRAM.

       (a) Limitation Pending Report on Use of Prior Fiscal Year 
     Funds.--No more than 75 percent of the fiscal year 2008 
     Fissile Materials Disposition program funds may be obligated 
     for the Fissile Materials Disposition program until the 
     Secretary of Energy, in consultation with the Administrator 
     for Nuclear Security, submits to the congressional defense 
     committees a report setting forth a plan for obligating and 
     expending funds made available for that program in fiscal 
     years before fiscal year 2008 that remain available for 
     obligation or expenditure as of January 1, 2005, and for 
     fiscal year 2008.
       (b) Availability of Unutilized Funds Under Certification of 
     Partial Use.--Any funds identified in the plan required in 
     subsection (a) that are not planned to be obligated by the 
     end of fiscal year 2009 shall also be available for any 
     defense nuclear nonproliferation activities (other than the 
     Fissile Materials Disposition program) for which amounts are 
     authorized to be appropriated by section 3101(a)(2).
       (c) Fiscal Year 2008 Fissile Materials Disposition Program 
     Funds Defined.--In this section, the term ``fiscal year 2008 
     Fissile Materials Disposition program funds'' means amounts 
     authorized to be appropriated by section 3101(a)(2) and 
     available for the Fissile Materials Disposition program.

     SEC. 3115. MODIFICATION OF LIMITATIONS ON AVAILABILITY OF 
                   FUNDS FOR WASTE TREATMENT AND IMMOBILIZATION 
                   PLANT.

       Paragraph (2) of section 3120(a) of the John Warner 
     National Defense Authorization Act for Fiscal Year 2007 
     (Public Law 109-364; 120 Stat. 2510) is amended--
       (1) by striking ``the Defense Contract Management Agency 
     has recommended for acceptance'' and inserting ``an 
     independent entity has reviewed''; and
       (2) by inserting ``and that the system has been certified 
     by the Secretary for use by a construction contractor at the 
     Waste Treatment and Immobilization Plant'' after ``Waste 
     Treatment and Immobilization Plant''.

     SEC. 3116. MODIFICATION OF SUNSET DATE OF THE OFFICE OF THE 
                   OMBUDSMAN OF THE ENERGY EMPLOYEES OCCUPATIONAL 
                   ILLNESS COMPENSATION PROGRAM.

       Section 3686(g) of the Energy Employees Occupational 
     Illness Compensation Program Act of 2000 (42 U.S.C. 7385s-
     15(g)) is amended by striking ``on the date that is 3 years 
     after the date of the enactment of this section'' and 
     inserting ``October 28, 2012''.

     SEC. 3117. TECHNICAL AMENDMENTS.

       The Atomic Energy Defense Act (50 U.S.C. 2521 et seq.) is 
     amended as follows:
       (1) The heading of section 4204a (50 U.S.C. 2524a) is 
     amended to read as follows:

     ``SEC. 4204A. RELIABLE REPLACEMENT WARHEAD PROGRAM.''.

       (2) The table of contents for that Act is amended by 
     inserting after the item relating to section 4204 the 
     following new item:

``Sec. 4204A. Reliable Replacement Warhead program.''.
                       Subtitle C--Other Matters

     SEC. 3121. STUDY ON USING EXISTING PITS FOR THE RELIABLE 
                   REPLACEMENT WARHEAD PROGRAM.

       (a) Study Required.--The Administrator for Nuclear 
     Security, in consultation with the Nuclear Weapons Council, 
     shall carry out a study analyzing the feasibility of using 
     existing pits in the Reliable Replacement Warhead program.
       (b) Report.--
       (1) In general.--Not later six months after the date of the 
     enactment of this Act, the Administrator shall submit to the 
     congressional defense committees a report on the results of 
     the study. The report shall be in unclassified form, but may 
     include a classified annex.
       (2) Matters included.--The report shall contain the 
     assessment of the Administrator of the results of the study, 
     including--
       (A) an assessment of--
       (i) whether using existing pits in the program is 
     technically feasible;
       (ii) whether using existing pits in the program is more 
     advantageous than using newly manufactured pits in the 
     program;
       (iii) the number of existing pits suitable for such use;
       (iv) whether proceeding to use existing pits in the program 
     before using newly manufactured pits in the program is 
     desirable; and
       (v) the extent to which using existing pits, as compared to 
     using newly manufactured pits, in the program would reduce 
     future requirements for new pit production, and how such use 
     of existing pits would affect the schedule and scope for new 
     pit production; and
       (B) a comparison of the requirements for certifying--
       (i) reliable replacement warheads using existing pits;
       (ii) reliable replacement warheads using newly manufactured 
     pits; and
       (iii) warheads maintained by the Stockpile Life Extension 
     Program.
       (c) Funding.--Of the amounts made available pursuant to the 
     authorization of appropriations in section 3101(a)(1), such 
     funds as may be necessary shall be available to carry out 
     this section.

     SEC. 3122. REPORT ON RETIREMENT AND DISMANTLEMENT OF NUCLEAR 
                   WARHEADS.

       Not later than March 1, 2008, the Administrator for Nuclear 
     Security, in consultation with the Nuclear Weapons Council, 
     shall submit to the congressional defense committees a report 
     on the retirement and dismantlement of the nuclear warheads 
     that will not be part of the enduring stockpile as of 
     December 31, 2012, but that have not yet been retired or 
     dismantled. The report shall include--
       (1) the existing plan and schedule for retiring and 
     dismantling those warheads;
       (2) an assessment of the capacity of the nuclear weapons 
     complex to accommodate an accelerated schedule for retiring 
     and dismantling those warheads, taking into account the full 
     range of capabilities in the complex; and
       (3) an identification of the resources needed to 
     accommodate such an accelerated schedule for retiring and 
     dismantling those warheads.

     SEC. 3123. PLAN FOR ADDRESSING SECURITY RISKS POSED TO 
                   NUCLEAR WEAPONS COMPLEX.

       Section 3253(b) of the National Nuclear Security 
     Administration Act (50 U.S.C. 2453(b)) is amended by adding 
     at the end the following:
       ``(6) A plan, developed in consultation with the Director 
     of the Office of Health, Safety, and Security of the 
     Department of Energy, for the research and development, 
     deployment, and lifecycle sustainment of the technologies 
     employed within the nuclear weapons complex to address 
     physical and cyber security threats during the applicable 
     five-fiscal year period, together with--
       ``(A) for each site in the nuclear weapons complex, a 
     description of the technologies deployed to address the 
     physical and cyber security threats posed to that site;
       ``(B) for each site and for the nuclear weapons complex, 
     the methods used by the National Nuclear Security 
     Administration to establish priorities among investments in 
     physical and cyber security technologies; and
       ``(C) 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 carry out that 
     plan.''.

     SEC. 3124. DEPARTMENT OF ENERGY PROTECTIVE FORCES.

       (a) Comptroller General Report on Department of Energy 
     Protective Force Management.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States 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 management of the 
     protective forces of the Department of Energy.
       (2) Contents.--The report shall include the following:
       (A) An identification of each Department of Energy site 
     with Category I nuclear materials.
       (B) For each site identified under subparagraph (A)--
       (i) a description of the management and contractual 
     structure for protective forces at the site;
       (ii) a statement of the number and category of protective 
     force members at the site;
       (iii) a description of the manner in which the site is 
     moving to a tactical response force as required by the policy 
     of the Department of Energy and an assessment of the issues 
     or problems, if any, involved in moving to such a force;
       (iv) a description of the extent to which the protective 
     force at the site has been assigned or is responsible for law 
     enforcement or law-enforcement related activities;
       (v) an assessment of the ability of the protective force at 
     the site to fulfill any such law enforcement or law 
     enforcement-related responsibilities; and
       (vi) an assessment of whether the protective force at the 
     site is adequately staffed, trained, and equipped to comply 
     with the requirements of the Design Basis Threat issued by 
     the Department of Energy in November 2005 and, if not, when 
     it is projected to be.
       (C) An analysis comparing the management, training, pay, 
     benefits, duties, responsibilities, and assignments of the 
     protective force at each site identified under subparagraph 
     (A) with the management, training, pay, benefits, duties, 
     responsibilities, and assignments of the Federal 
     transportation security force of the Department of Energy.

[[Page 32685]]

       (D) A statement of options for managing the protective 
     force at sites identified under subparagraph (A) in a more 
     uniform manner, an analysis of the advantages and 
     disadvantages of each option, and an assessment of the 
     approximate cost of each option when compared with the costs 
     associated with the existing management of the protective 
     force at such sites.
       (3) Form.--The report shall be submitted in unclassified 
     form, but may include a classified annex.
       (b) Department of Energy Analysis of Alternatives for 
     Managing and Deploying Protective Forces.--
       (1) In general.--Not later than 90 days after the date on 
     which the report is submitted under subsection (a), the 
     Secretary of Energy, in conjunction with the Administrator 
     for Nuclear Security and the Assistant Secretary for 
     Environmental Management, 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 
     management of the protective forces of the Department of 
     Energy.
       (2) Contents.--The report shall include the following:
       (A) Each of the matters specified in subparagraphs (A), 
     (B), and (C) of subsection (a)(2).
       (B) Each of the matters specified in subparagraph (D) of 
     subsection (a)(2), except that--
       (i) the options analyzed shall include each of the options 
     included in the report submitted under subsection (a), as 
     well as any other options identified by the Secretary; and
       (ii) the analysis and assessment shall also include an 
     analysis of the role played by incentives inherent in the use 
     of private contractors to provide protective forces in the 
     performance of those protective forces.
       (3) Form.--The report shall be submitted in unclassified 
     form, but may include a classified annex.

     SEC. 3125. EVALUATION OF NATIONAL NUCLEAR SECURITY 
                   ADMINISTRATION STRATEGIC PLAN FOR ADVANCED 
                   COMPUTING.

       (a) In General.--The Secretary of Energy shall--
       (1) enter into an agreement with an independent entity to 
     conduct an evaluation of the strategic plan for advanced 
     computing of the National Nuclear Security Administration; 
     and
       (2) not later than one year after the date of the enactment 
     of this Act, submit to the congressional defense committees a 
     report containing the results of the evaluation described in 
     paragraph (1).
       (b) Elements.--The evaluation described in subsection 
     (a)(1) shall include the following:
       (1) An assessment of--
       (A) the adequacy of the strategic plan in supporting the 
     Stockpile Stewardship Program;
       (B) the role of research into, and development of, high-
     performance computing supported by the National Nuclear 
     Security Administration in fulfilling the mission of the 
     National Nuclear Security Administration and in maintaining 
     the leadership of the United States in high-performance 
     computing; and
       (C) the impacts of changes in investment levels or research 
     and development strategies on fulfilling the missions of the 
     National Nuclear Security Administration.
       (2) An assessment of the efforts of the Department of 
     Energy to--
       (A) coordinate high-performance computing work within the 
     Department, in particular between the National Nuclear 
     Security Administration and the Office of Science;
       (B) develop joint strategies with other Federal agencies 
     and private industry groups for the development of high-
     performance computing; and
       (C) share high-performance computing developments with 
     private industry and capitalize on innovations in private 
     industry in high-performance computing.

     SEC. 3126. SENSE OF CONGRESS ON THE NUCLEAR NONPROLIFERATION 
                   POLICY OF THE UNITED STATES AND THE RELIABLE 
                   REPLACEMENT WARHEAD PROGRAM.

       It is the sense of Congress that--
       (1) the United States should maintain its commitment to 
     Article VI of the Treaty on the Non-Proliferation of Nuclear 
     Weapons, done at Washington, London, and Moscow July 1, 1968, 
     and entered into force March 5, 1970 (in this section 
     referred to as the ``Nuclear Non-Proliferation Treaty'');
       (2) the United States should initiate talks with Russia to 
     reduce the number of nonstrategic nuclear weapons and further 
     reduce the number of strategic nuclear weapons in the 
     respective nuclear weapons stockpiles of the United States 
     and Russia in a transparent and verifiable fashion and in a 
     manner consistent with the security of the United States;
       (3) the United States and other declared nuclear weapons 
     state parties to the Nuclear Non-Proliferation Treaty, 
     together with weapons states that are not parties to the 
     Treaty, should work to reduce the total number of nuclear 
     weapons in the respective stockpiles and related delivery 
     systems of such states;
       (4) the United States, Russia, and other states should work 
     to negotiate, and then sign and ratify, a treaty setting 
     forth a date for the cessation of the production of fissile 
     material;
       (5) the United States should sustain the science-based 
     stockpile stewardship program, which provides the basis for 
     certifying the United States nuclear deterrent and 
     maintaining the moratorium on underground nuclear weapons 
     testing;
       (6) the United States should commit to dismantle as soon as 
     possible all retired warheads or warheads that are planned to 
     be retired from the United States nuclear weapons stockpile;
       (7) the United States, along with the other declared 
     nuclear weapons state parties to the Nuclear Non-
     Proliferation Treaty, should participate in transparent 
     discussions regarding their nuclear weapons programs and 
     plans, including plans for any new weapons or warheads, and 
     how such programs and plans relate to their obligations as 
     nuclear weapons state parties under the Treaty;
       (8) the United States and the declared nuclear weapons 
     state parties to the Nuclear Non-Proliferation Treaty should 
     work to decrease reliance on, and the importance of, nuclear 
     weapons; and
       (9) the United States should formulate any decision on 
     whether to manufacture or deploy a reliable replacement 
     warhead within the broader context of the progress made by 
     the United States toward achieving each of the goals 
     described in paragraphs (1) through (8).

     SEC. 3127. DEPARTMENT OF ENERGY REPORT ON PLAN TO STRENGTHEN 
                   AND EXPAND INTERNATIONAL RADIOLOGICAL THREAT 
                   REDUCTION PROGRAM.

       Not later than 120 days after the date of the enactment of 
     this Act, the Secretary of Energy shall submit to Congress a 
     report that sets forth a specific plan for strengthening and 
     expanding the Department of Energy International Radiological 
     Threat Reduction (IRTR) program within the Global Threat 
     Reduction Initiative. The plan shall address concerns raised 
     and recommendations made by the Government Accountability 
     Office in its report of March 13, 2007, titled ``Focusing on 
     the Highest Priority Radiological Sources Could Improve DOE's 
     Efforts to Secure Sources in Foreign Countries'', and shall 
     specifically include actions to--
       (1) improve the Department's coordination with the 
     Department of State and the Nuclear Regulatory Commission;
       (2) improve information-sharing between the Department and 
     the International Atomic Energy Agency;
       (3) with respect to hospitals and clinics containing 
     radiological sources that receive security upgrades, give 
     high priority to those determined to be the highest risk;
       (4) accelerate efforts to remove as many radioisotope 
     thermoelectric generators (RTGs) in the Russian Federation as 
     practicable;
       (5) develop a long-term sustainability plan for security 
     upgrades that includes, among other things, future resources 
     required to implement such a plan; and
       (6) develop a long-term operational plan that ensures 
     sufficient funding for the IRTR program and ensures 
     sufficient funding to identify, recover, and secure all 
     vulnerable high-risk radiological sources worldwide as 
     quickly and effectively as possible.

     SEC. 3128. DEPARTMENT OF ENERGY REPORT ON PLAN TO STRENGTHEN 
                   AND EXPAND MATERIALS PROTECTION, CONTROL, AND 
                   ACCOUNTING PROGRAM.

       Not later than 120 days after the date of the enactment of 
     this Act, the Secretary of Energy shall submit to Congress a 
     specific plan for strengthening and expanding the Department 
     of Energy Materials Protection, Control, and Accounting 
     (MPC&A) program. The plan shall address concerns raised and 
     recommendations made by the Government Accountability Office 
     in its report of February 2007, titled ``Progress Made in 
     Improving Security at Russian Nuclear Sites, but the Long-
     Term Sustainability of U.S. Funded Security Upgrades is 
     Uncertain'', and shall specifically include actions to--
       (1) strengthen program management and the effectiveness of 
     the Department's efforts to improve security at weapons-
     usable nuclear material and warhead sites in the Russian 
     Federation and other countries by--
       (A) revising the metrics used to measure MPC&A program 
     progress to better reflect the level of security upgrade 
     completion at buildings reported as ``secure'';
       (B) actively working with other countries, in coordination 
     with the Secretary of State, to develop an appropriate access 
     plan for each country; and
       (C) developing a management information system to track the 
     Department's progress in providing Russia with a sustainable 
     MPC&A system by 2013; and
       (2) develop a long-term operational plan that ensures 
     sufficient funding for the MPC&A program, including for 
     National Programs and Sustainability, and ensures sufficient 
     funding to secure all weapons-usable nuclear material and 
     warhead sites as quickly and effectively as possible.

     SEC. 3129. AGREEMENTS AND REPORTS ON NUCLEAR FORENSICS 
                   CAPABILITIES.

       (a) International Agreements.--
       (1) In general.--Title XLIII of the Atomic Energy Defense 
     Act (50 U.S.C. 2561 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 4307. INTERNATIONAL AGREEMENTS ON NUCLEAR WEAPONS 
                   DATA.

       ``The Secretary of Energy may, with the concurrence of the 
     Secretary of State and in coordination with the Secretary of 
     Defense, the Secretary of Homeland Security, and the Director 
     of National Intelligence, enter into agreements with 
     countries or international organizations to conduct data 
     collection and analysis to determine accurately and in a 
     timely manner the source of any components of, or fissile 
     material used or attempted to be used in, a nuclear device or 
     weapon.

[[Page 32686]]



     ``SEC. 4308. INTERNATIONAL AGREEMENTS ON INFORMATION ON 
                   RADIOACTIVE MATERIALS.

       ``The Secretary of Energy may, with the concurrence of the 
     Secretary of State and in coordination with the Secretary of 
     Defense, the Secretary of Homeland Security, and the Director 
     of National Intelligence, enter into agreements with 
     countries or international organizations--
       ``(1) to acquire for the materials information program of 
     the Department of Energy validated information on the 
     physical characteristics of radioactive material produced, 
     used, or stored at various locations, in order to facilitate 
     the ability to determine accurately and in a timely manner 
     the source of any components of, or fissile material used or 
     attempted to be used in, a nuclear device or weapon; and
       ``(2) to obtain access to information described in 
     paragraph (1) in the event of--
       ``(A) a nuclear detonation; or
       ``(B) the interdiction or discovery of a nuclear device or 
     weapon or nuclear material.''.
       (2) Clerical amendment.--The table of contents at the 
     beginning of such Act is amended by inserting after the item 
     relating to section 4306A the following:

``Sec. 4307. International agreements on nuclear weapons data.
``Sec. 4308. International agreements on information on radioactive 
              materials.''.

       (b) Report on Agreements.--Not later than one year after 
     the date of the enactment of this Act, the Secretary of 
     Energy shall, in coordination with the Secretary of State, 
     submit to Congress a report identifying--
       (1) the countries or international organizations with which 
     the Secretary has sought to make agreements pursuant to 
     sections 4307 and 4308 of the Atomic Energy Defense Act, as 
     added by subsection (a);
       (2) any countries or international organizations with which 
     such agreements have been finalized and the measures included 
     in such agreements; and
       (3) any major obstacles to completing such agreements with 
     other countries and international organizations.
       (c) Report on Standards and Capabilities.--Not later than 
     180 days after the date of the enactment of this Act, the 
     President shall submit to Congress a report--
       (1) setting forth standards and procedures to be used in 
     determining accurately and in a timely manner any country or 
     group that knowingly or negligently provides to another 
     country or group--
       (A) a nuclear device or weapon;
       (B) a major component of a nuclear device or weapon; or
       (C) fissile material that could be used in a nuclear device 
     or weapon;
       (2) assessing the capability of the United States to 
     collect and analyze nuclear material or debris in a manner 
     consistent with the standards and procedures described in 
     paragraph (1); and
       (3) including a plan and proposed funding for rectifying 
     any shortfalls in the nuclear forensics capabilities of the 
     United States by September 30, 2010.

     SEC. 3130. REPORT ON STATUS OF ENVIRONMENTAL MANAGEMENT 
                   INITIATIVES TO ACCELERATE THE REDUCTION OF 
                   ENVIRONMENTAL RISKS AND CHALLENGES POSED BY THE 
                   LEGACY OF THE COLD WAR.

       (a) In General.--Not later than September 30, 2008, the 
     Secretary of Energy shall submit to the congressional defense 
     committees and the Comptroller General of the United States a 
     report on the status of the environmental management 
     initiatives undertaken to accelerate the reduction of the 
     environmental risks and challenges that, as a result of the 
     legacy of the Cold War, are faced by the Department of 
     Energy, contractors of the Department, and applicable Federal 
     and State agencies with regulatory jurisdiction.
       (b) Elements.--The report required by subsection (a) shall 
     include the following:
       (1) A discussion and assessment of the progress made in 
     reducing the environmental risks and challenges described in 
     subsection (a) in each of the following areas:
       (A) Acquisition strategy and contract management.
       (B) Regulatory agreements.
       (C) Interim storage and final disposal of high-level waste, 
     spent nuclear fuel, transuranic waste, and low-level waste.
       (D) Closure and transfer of environmental remediation 
     sites.
       (E) Achievements in innovation by contractors of the 
     Department with respect to accelerated risk reduction and 
     cleanup.
       (F) Consolidation of special nuclear materials and 
     improvements in safeguards and security.
       (2) An assessment of whether legislative changes or 
     clarifications would improve or accelerate environmental 
     management activities.
       (3) A listing of the major mandatory milestones and 
     commitments by site, by type of agreement, and by year to the 
     extent that they are currently defined, together with a 
     summary of the major mandatory milestones by site that are 
     projected to be missed or are in jeopardy of being missed, 
     with categories to explain the reason for non-compliance.
       (4) An estimate of the life cycle cost of the current scope 
     of the environmental management program as of October 1, 
     2007, by project baseline summary and summarized by site, 
     including assumptions impacting cost projections and 
     descriptions of the work to be done at each site.
       (5) For environmental cleanup liabilities and excess 
     facilities projected to be transferred to the environmental 
     management program, a description of the process for 
     nomination and acceptance of new work scope into the program, 
     a listing of pending nominations, and life cycle cost 
     estimates and schedules to address them.
       (c) Review by Comptroller General.--Not later than March 
     30, 2009, the Comptroller General shall submit to the 
     congressional defense committees a report containing a review 
     of the report required by subsection (a).
                Subtitle D--Nuclear Terrorism Prevention

     SEC. 3131. DEFINITIONS.

       In this subtitle:
       (1) The term ``Convention on the Physical Protection of 
     Nuclear Material'' means the Convention on the Physical 
     Protection of Nuclear Material, signed at New York and Vienna 
     March 3, 1980.
       (2) The term ``formula quantities of strategic special 
     nuclear material'' means uranium-235 (contained in uranium 
     enriched to 20 percent or more in the U-235 isotope), 
     uranium-233, or plutonium in any combination in a total 
     quantity of 5,000 grams or more computed by the formula, 
     grams = (grams contained U-235) + 2.5 (grams U-233 + grams 
     plutonium), as set forth in the definitions of ``formula 
     quantity'' and ``strategic special nuclear material'' in 
     section 73.2 of title 10, Code of Federal Regulations.
       (3) The term ``Nuclear Non-Proliferation Treaty'' means the 
     Treaty on the Non-Proliferation of Nuclear Weapons, done at 
     Washington, London, and Moscow July 1, 1968, and entered into 
     force March 5, 1970 (21 UST 483).
       (4) The term ``nuclear weapon'' means any device utilizing 
     atomic energy, exclusive of the means for transporting or 
     propelling the device (where such means is a separable and 
     divisible part of the device), the principal purpose of which 
     is for use as, or for the development of, a weapon, a weapon 
     prototype, or a weapon test device.

     SEC. 3132. SENSE OF CONGRESS ON THE PREVENTION OF NUCLEAR 
                   TERRORISM.

       It is the sense of Congress that--
       (1) the President should make the prevention of a nuclear 
     terrorist attack on the United States a high priority;
       (2) the President should accelerate programs, requesting 
     additional funding as appropriate, to prevent nuclear 
     terrorism, including combating nuclear smuggling, securing 
     and accounting for nuclear weapons, and eliminating, 
     removing, or securing and accounting for formula quantities 
     of strategic special nuclear material wherever such 
     quantities may be;
       (3) the United States, together with the international 
     community, should take a comprehensive approach to reducing 
     the danger of nuclear terrorism, including by making 
     additional efforts to identify and eliminate terrorist groups 
     that aim to acquire nuclear weapons, to ensure that nuclear 
     weapons worldwide are secure and accounted for and that 
     formula quantities of strategic special nuclear material 
     worldwide are eliminated, removed, or secure and accounted 
     for to a degree sufficient to defeat the threat that 
     terrorists and criminals have shown they can pose, and to 
     increase the ability to find and stop terrorist efforts to 
     manufacture nuclear explosives or to transport nuclear 
     explosives and materials anywhere in the world;
       (4) within such a comprehensive approach, a high priority 
     must be placed on ensuring that all nuclear weapons worldwide 
     are secure and accounted for and that all formula quantities 
     of strategic special nuclear material worldwide are 
     eliminated, removed, or secure and accounted for; and
       (5) the International Atomic Energy Agency should be funded 
     appropriately to fulfill its role in coordinating 
     international efforts to protect nuclear material and to 
     combat nuclear smuggling.

     SEC. 3133. MINIMUM SECURITY STANDARD FOR NUCLEAR WEAPONS AND 
                   FORMULA QUANTITIES OF STRATEGIC SPECIAL NUCLEAR 
                   MATERIAL.

       (a) Policy.--It is the policy of the United States to work 
     with the international community to take all possible steps 
     to ensure that all nuclear weapons around the world are 
     secure and accounted for and that all formula quantities of 
     strategic special nuclear material are eliminated, removed, 
     or secure and accounted for to a level sufficient to defeat 
     the threats posed by terrorists and criminals.
       (b) International Nuclear Security Standard.--It is the 
     sense of Congress that, in furtherance of the policy 
     described in subsection (a), and consistent with the 
     requirement for ``appropriate effective'' physical protection 
     contained in United Nations Security Council Resolution 1540 
     (2004), as well as the Nuclear Non-Proliferation Treaty and 
     the Convention on the Physical Protection of Nuclear 
     Material, the President, in consultation with relevant 
     Federal departments and agencies, should seek the broadest 
     possible international agreement on a global standard for 
     nuclear security that--
       (1) ensures that nuclear weapons and formula quantities of 
     strategic special nuclear material are secure and accounted 
     for to a sufficient level to defeat the threats posed by 
     terrorists and criminals;
       (2) takes into account the limitations of equipment and 
     human performance; and
       (3) includes steps to provide confidence that the needed 
     measures have in fact been implemented.
       (c) International Efforts.--It is the sense of Congress 
     that, in furtherance of the policy described in subsection 
     (a), the President, in consultation with relevant Federal 
     departments and agencies, should--
       (1) work with other countries and the International Atomic 
     Energy Agency to assist as appropriate, and if necessary work 
     to convince,

[[Page 32687]]

     the governments of any and all countries in possession of 
     nuclear weapons or formula quantities of strategic special 
     nuclear material to ensure that security is upgraded to meet 
     the standard described in subsection (b) as rapidly as 
     possible and in a manner that--
       (A) accounts for the nature of the terrorist and criminal 
     threat in each such country; and
       (B) ensures that any measures to which the United States 
     and any such country agree are sustained after United States 
     and other international assistance ends;
       (2) ensure that United States financial and technical 
     assistance is available, as appropriate, to countries for 
     which the provision of such assistance would accelerate the 
     implementation of, or improve the effectiveness of, such 
     security upgrades; and
       (3) work with the governments of other countries to ensure 
     that effective nuclear security rules, accompanied by 
     effective regulation and enforcement, are put in place to 
     govern all nuclear weapons and formula quantities of 
     strategic special nuclear material around the world.

     SEC. 3134. ANNUAL REPORT.

       (a) In General.--Not later than September 1 of each year 
     through 2012, the President, in consultation with relevant 
     Federal departments and agencies, shall submit to Congress a 
     report on the security of nuclear weapons and related 
     equipment and formula quantities of strategic special nuclear 
     material outside of the United States.
       (b) Elements.--The report required under subsection (a) 
     shall include the following:
       (1) A section on the programs for the security and 
     accounting of nuclear weapons and the elimination, removal, 
     and security and accounting of formula quantities of 
     strategic special nuclear material, established under section 
     3132(b) of the Ronald W. Reagan National Defense 
     Authorization Act for Fiscal Year 2005 (50 U.S.C. 2569(b)), 
     which shall include the following:
       (A) A survey of the facilities and sites worldwide that 
     contain nuclear weapons or related equipment, or formula 
     quantities of strategic special nuclear material.
       (B) A list of such facilities and sites determined to be of 
     the highest priority for security and accounting of nuclear 
     weapons and related equipment, or the elimination, removal, 
     or security and accounting of formula quantities of strategic 
     special nuclear material, taking into account risk of theft 
     from such facilities and sites, and organized by level of 
     priority.
       (C) A prioritized plan, including measurable milestones, 
     metrics, estimated timetables, and estimated costs of 
     implementation, on the following:
       (i) The security and accounting of nuclear weapons and 
     related equipment and the elimination, removal, or security 
     and accounting of formula quantities of strategic special 
     nuclear material at such facilities and sites worldwide.
       (ii) Ensuring that security upgrades and accounting reforms 
     implemented at such facilities and sites worldwide, using the 
     financial and technical assistance of the United States, are 
     effectively sustained after such assistance ends.
       (iii) The role that international agencies and the 
     international community have committed to play, together with 
     a plan for securing international contributions.
       (D) An assessment of the progress made in implementing the 
     plan described in subparagraph (C), including a description 
     of the efforts of foreign governments to secure and account 
     for nuclear weapons and related equipment and to eliminate, 
     remove, or secure and account for formula quantities of 
     strategic special nuclear material.
       (2) A section on efforts to establish and implement the 
     international nuclear security standard described in section 
     3133(b) and related policies.
       (c) Form.--The report may be submitted in classified form 
     but shall include a detailed unclassified summary.
   TITLE XXXII--WAR-RELATED NATIONAL NUCLEAR SECURITY ADMINISTRATION 
                             AUTHORIZATIONS
Sec. 3201. Additional war-related authorization of appropriations for 
              National Nuclear Security Administration.

     SEC. 3201. ADDITIONAL WAR-RELATED AUTHORIZATION OF 
                   APPROPRIATIONS FOR NATIONAL NUCLEAR SECURITY 
                   ADMINISTRATION.

       (a) In General.-- Funds are hereby authorized to be 
     appropriated for fiscal year 2008 to the Department of Energy 
     for the National Nuclear Security Administration for defense 
     nuclear nonproliferation in the amount of $50,000,000, of 
     which $30,000,000 is for the International Nuclear Materials 
     Protection and Cooperation program and $20,000,000 is for the 
     Global Threat Reduction Initiative.
       (b) Treatment as Additional Authorization.--The amounts 
     authorized to be appropriated by this section are in addition 
     to amounts otherwise authorized to be appropriated by this 
     Act.
         TITLE XXXIII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD
Sec. 3301. Authorization.

     SEC. 3301. AUTHORIZATION.

       There are authorized to be appropriated for fiscal year 
     2008, $22,499,000 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 XXXIV--NAVAL PETROLEUM RESERVES
Sec. 3401. Authorization of appropriations.
Sec. 3402. Remedial action at Moab uranium milling site.

     SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

       (a) Amount.--There are hereby authorized to be appropriated 
     to the Secretary of Energy $17,301,000 for fiscal year 2008 
     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.

     SEC. 3402. REMEDIAL ACTION AT MOAB URANIUM MILLING SITE.

       Section 3405(i) of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 
     10 U.S.C. 7420 note) is amended by adding at the end the 
     following new paragraph:
       ``(6)(A) Not later than October 1, 2019, the Secretary of 
     Energy shall complete remediation at the Moab site and 
     removal of the tailings to the Crescent Junction site in 
     Utah.
       ``(B) In the event the Secretary of Energy is unable to 
     complete remediation at the Moab Site by October 1, 2019, the 
     Secretary shall submit to Congress a plan setting forth the 
     projected completion date and the estimated funding to meet 
     the revised date.   The Secretary shall submit the plan, if 
     required, to Congress not later than October 2, 2019.''.
                  TITLE XXXV--MARITIME ADMINISTRATION

          Subtitle A--Maritime Administration Reauthorization

Sec. 3501. Authorization of appropriations for fiscal year 2008.
Sec. 3502. Temporary authority to transfer obsolete combatant vessels 
              to Navy for disposal.
Sec. 3503. Vessel disposal program.

                          Subtitle B--Programs

Sec. 3511. Commercial vessel chartering authority.
Sec. 3512. Maritime Administration vessel chartering authority.
Sec. 3513. Chartering to State and local governmental 
              instrumentalities.
Sec. 3514. Disposal of obsolete Government vessels.
Sec. 3515. Vessel transfer authority.
Sec. 3516. Sea trials for Ready Reserve Force.
Sec. 3517. Review of applications for loans and guarantees.

                   Subtitle C--Technical Corrections

Sec. 3521. Personal injury to or death of seamen.
Sec. 3522. Amendments to Chapter 537 based on Public Law 109-163.
Sec. 3523. Additional amendments based on Public Law 109-163.
Sec. 3524. Amendments based on Public Law 109-171.
Sec. 3525. Amendments based on Public Law 109-241.
Sec. 3526. Amendments based on Public Law 109-364.
Sec. 3527. Miscellaneous amendments.
Sec. 3528. Application of sunset provision to codified provision.
Sec. 3529. Additional technical corrections.
          Subtitle A--Maritime Administration Reauthorization

     SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 
                   2008.

        Funds are hereby authorized to be appropriated for fiscal 
     year 2008, 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, $124,303,000, of which--
       (A) $63,958,000 shall remain available until expended for 
     expenses and capital improvements at the United States 
     Merchant Marine Academy; and
       (B) $11,500,000 which shall remain available until expended 
     for maintenance and repair of school ships at the State 
     Maritime Academies.
       (2) For expenses to maintain and preserve a United States-
     flag merchant fleet to serve the national security needs of 
     the United States under chapter 531 of title 46, United 
     States Code, $156,000,000.
       (3) For paying reimbursement under section 3517 of the 
     Maritime Security Act of 2003 (46 U.S.C. 53101 note), 
     $19,500,000.
       (4) For assistance to small shipyards and maritime 
     communities under section 54101 of title 46, United States 
     Code, $25,000,000.
       (5) 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, $20,000,000.
       (6) For the cost (as defined in section 502(5) of the 
     Federal Credit Reform Act of 1990 (2 U.S.C 661a(5)) of loan 
     guarantees under the program authorized by chapter 537 of 
     title 46, United States Code, $30,000,000.
       (7) For administrative expenses related to the 
     implementation of the loan guarantee program under chapter 
     537 of title 46, United States Code, administrative expenses 
     related to 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 54101 of title 
     46, United States Code, $6,000,000.

     SEC. 3502. 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

[[Page 32688]]

     States Code, popularly known as the Economy Act, transfer to 
     the Secretary of the Navy during fiscal year 2008 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. 3503. VESSEL DISPOSAL PROGRAM.

       (a) In General.--Within 30 days after the date of the 
     enactment of this Act, the Secretary of Transportation shall 
     convene a working group to review and make recommendations on 
     best practices for the storage and disposal of obsolete 
     vessels owned or operated by the Federal Government. The 
     Secretary shall invite senior representatives from the 
     Maritime Administration, the Coast Guard, the Environmental 
     Protection Agency, the National Oceanic and Atmospheric 
     Administration, and the United States Navy to participate in 
     the working group. The Secretary may request the 
     participation of senior representatives of any other Federal 
     department or agency, as appropriate, and may also request 
     participation from concerned State environmental agencies.
       (b) Scope.--Among the vessels to be considered by the 
     working group are Federally owned or operated vessels that 
     are--
       (1) to be scrapped or recycled;
       (2) to be used as artificial reefs: or
       (3) to be used for the Navy's SINKEX program.
       (c) Purpose.--The working group shall--
       (1) examine current storage and disposal policies, 
     procedures, and practices for obsolete vessels owned or 
     operated by Federal agencies;
       (2) examine Federal and State laws and regulations 
     governing such policies, procedures, and practices and any 
     applicable environmental laws; and
       (3) within 90 days after the date of enactment of the Act, 
     submit a plan to the Committee on Armed Services and the 
     Committee on Commerce, Science and Transportation of the 
     Senate and the Committee on Armed Services of the House of 
     Representatives to improve and harmonize practices for 
     storage and disposal of such vessels, including the interim 
     transportation of such vessels.
       (d) Contents of Plan.--The working group shall include in 
     the plan submitted under subsection (c)(3)--
       (1) a description of existing measures for the storage, 
     disposal, and interim transportation of obsolete vessels 
     owned or operated by Federal agencies in compliance with 
     Federal and State environmental laws in a manner that 
     protects the environment;
       (2) a description of Federal and State laws and regulations 
     governing the current policies, procedures, and practices for 
     the storage, disposal, and interim transportation of such 
     vessels;
       (3) recommendations for environmental best practices that 
     meet or exceed, and harmonize, the requirements of Federal 
     environmental laws and regulations applicable to the storage, 
     disposal, and interim transportation of such vessels;
       (4) recommendations for environmental best practices that 
     meet or exceed the requirements of State laws and regulations 
     applicable to the storage, disposal, and interim 
     transportation of such vessels;
       (5) procedures for the identification and remediation of 
     any environmental impacts caused by the storage, disposal, 
     and interim transportation of such vessels; and
       (6) recommendations for necessary steps, including 
     regulations if appropriate, to ensure that best environmental 
     practices apply to all such vessels.
       (e) Implementation of Plan.--
       (1) In general.--As soon as practicable after the date of 
     enactment of the Act, the head of each Federal department or 
     agency participating in the working group, in consultation 
     with the other Federal departments and agencies participating 
     in the working group, shall take such action as may be 
     necessary, including the promulgation of regulations, under 
     existing authorities to ensure that the implementation of the 
     plan provides for compliance with all Federal and State laws 
     and for the protection of the environment in the storage, 
     interim transportation, and disposal of obsolete vessels 
     owned or operated by Federal agencies.
       (2) Armed services vessels.--The Secretary and the 
     Secretary of Defense, in consultation with the Administrator 
     of the Environmental Protection Agency, shall each ensure 
     that environmental best practices are observed with respect 
     to the storage, disposal, and interim transportation of 
     obsolete vessels owned or operated by the Department of 
     Defense.
       (f) Rule of Construction.--Nothing in this section shall be 
     construed to supersede, limit, modify, or otherwise affect 
     any other provision of law, including environmental law.
                          Subtitle B--Programs

     SEC. 3511. COMMERCIAL VESSEL CHARTERING AUTHORITY.

       (a) In General.--Subchapter III of chapter 575 of title 46, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 57533. Vessel chartering authority

       ``The Secretary of Transportation may enter into contracts 
     or other agreements on behalf of the United States to 
     purchase, charter, operate, or otherwise acquire the use of 
     any vessels documented under chapter 121 of this title and 
     any other related real or personal property. The Secretary is 
     authorized to use this authority as the Secretary deems 
     appropriate.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     575 of such title is amended by adding at the end the 
     following:

``57533. Vessel chartering authority''.

     SEC. 3512. MARITIME ADMINISTRATION VESSEL CHARTERING 
                   AUTHORITY.

       Section 50303 of title 46, United States Code, is amended 
     by--
       (1) inserting ``vessels,'' after ``piers,''; and
       (2) by striking ``control;'' in subsection (a)(1) and 
     inserting ``control, except that the prior consent of the 
     Secretary of Defense for such use shall be required with 
     respect to any vessel in the Ready Reserve Force or in the 
     National Defense Reserve Fleet which is maintained in a 
     retention status for the Department of Defense;''.

     SEC. 3513. CHARTERING TO STATE AND LOCAL GOVERNMENTAL 
                   INSTRUMENTALITIES.

       Section 11(b) of the Merchant Ship Sales Act of 1946 (50 
     U.S.C. App. 1744(b)), is amended--
       (1) by striking ``or'' after the semicolon in paragraph 
     (3);
       (2) by striking ``Defense.'' in paragraph (4) and inserting 
     ``Defense; or''; and
       (3) by adding at the end thereof the following:
       ``(5) on a reimbursable basis, for charter to the 
     government of any State, locality, or Territory of the United 
     States, except that the prior consent of the Secretary of 
     Defense for such use shall be required with respect to any 
     vessel in the Ready Reserve Force or in the National Defense 
     Reserve Fleet which is maintained in a retention status for 
     the Department of Defense.''.

     SEC. 3514. DISPOSAL OF OBSOLETE GOVERNMENT VESSELS.

       Section 6(c)(1) of the National Maritime Heritage Act of 
     1994 (16 U.S.C. 5405(c)(1)) is amended--
       (1) by inserting ``(either by sale or purchase of disposal 
     services)'' after ``shall dispose''; and
       (2) by striking subparagraph (A) of paragraph (1) and 
     inserting the following:
       ``(A) in accordance with a priority system for disposing of 
     vessels, as determined by the Secretary, which shall include 
     provisions requiring the Maritime Administration to--
       ``(i) dispose of all deteriorated high priority ships that 
     are available for disposal, within 12 months of their 
     designation as such; and
       ``(ii) give priority to the disposition of those vessels 
     that pose the most significant danger to the environment or 
     cost the most to maintain;''.

     SEC. 3515. VESSEL TRANSFER AUTHORITY.

       Section 50304 of title 46, United States Code, is amended 
     by adding at the end thereof the following:
       ``(d) Vessel Charters to Other Departments.--On a 
     reimbursable or nonreimbursable basis, as determined by the 
     Secretary of Transportation, the Secretary may charter or 
     otherwise make available a vessel under the jurisdiction of 
     the Secretary to any other department, upon the request by 
     the Secretary of the department that receives the vessel. The 
     prior consent of the Secretary of Defense for such use shall 
     be required with respect to any vessel in the Ready Reserve 
     Force or in the National Defense Reserve Fleet which is 
     maintained in a retention status for the Department of 
     Defense.''.

     SEC. 3516. SEA TRIALS FOR READY RESERVE FORCE.

       Section 11(c)(1)(B) of the Merchant Ship Sales Act of 1946 
     (50 U.S.C. App. 1744(c)(1)(B)) is amended to read as follows:
       ``(B) activate and conduct sea trials on each vessel at 
     least once every 30 months;''.

     SEC. 3517. REVIEW OF APPLICATIONS FOR LOANS AND GUARANTEES.

       (a) Findings.--The Congress makes the following findings:
       (1) The maritime loan guarantee program was established by 
     the Congress through the Merchant Marine Act, 1936 to 
     encourage domestic shipbuilding by making available federally 
     backed loan guarantees for new construction to ship owners 
     and operators.
       (2) The maritime loan guarantee program has a long and 
     successful history of ship construction with a low historical 
     default rate.
       (3) The current process for review of applications for 
     maritime loans in the Department of Transportation has 
     effectively discontinued the program as envisioned by the 
     Congress.
       (4) The President has requested no funding for the loan 
     guarantee program despite the stated national policy to 
     foster the development and encourage the maintenance of a 
     merchant marine in section 50101 of title 46, United States 
     Code.
       (5) United States commercial shipyards were placed at a 
     competitive disadvantage in the world shipbuilding market by 
     government subsidized foreign commercial shipyards.
       (6) The maritime loan guarantee program has the potential 
     to modernize shipyards and the ships of the United States 
     coastwise trade and restore a competitive position in the 
     world shipbuilding market for United States shipyards.
       (7) The maritime loan guarantee program is a useful tool to 
     encourage domestic shipbuilding, preserving a vital 
     industrial capacity critical to the security of the United 
     States.
       (b) Requirements.--
       (1) In general.--Within 180 days after the date of 
     enactment of this Act, the Administrator of the Maritime 
     Administration shall develop and implement a comprehensive 
     plan for the review of applications for loan guarantees under 
     chapter 537 of title 46, United States Code.
       (2) Deadline for action on application.--
       (A) Traditional applications.--In the comprehensive plan 
     the Administrator will ensure that within the 90-day period 
     following receipt of all pertinent documentation required for 
     review of a traditional loan application, the application 
     shall be either accepted or rejected.
       (B) Nontraditional applications.--In the comprehensive plan 
     the Administrator will ensure that within the 180-day period 
     following receipt of all pertinent documentation required for

[[Page 32689]]

     review of a nontraditional loan application, the application 
     shall be either accepted or rejected.
       (c) Submission to Congress.--The Administrator shall submit 
     a copy of the comprehensive plan to the Committee on 
     Commerce, Science, and Transportation of the Senate and the 
     Committee on Armed Services of the House of Representatives 
     within 180 days after the date of enactment of this Act.
       (d) Definitions.--In this section:
       (1) Traditional application.--The term ``traditional 
     application'' means an application for a loan, guarantee, or 
     commitment to guarantee submitted pursuant to chapter 537 of 
     title 46, United States Code, that involves a market, 
     technology, and financial structure of a type that has proven 
     successful in previous applications and does not present an 
     unreasonable risk to the United States, as determined by the 
     Administrator of the Maritime Administration.
       (2) Nontraditional application.--The term ``nontraditional 
     application'' means an application for a loan, guarantee, or 
     commitment to guarantee submitted pursuant to chapter 537 of 
     title 46, United States Code, that is not a traditional 
     application, as determined by the Administrator of the 
     Maritime Administration.
                   Subtitle C--Technical Corrections

     SEC. 3521. PERSONAL INJURY TO OR DEATH OF SEAMEN.

       (a) Amendment.--Section 30104 of title 46, United States 
     Code, is amended--
       (1) by striking ``(a) Cause of Action.--''; and
       (2) by repealing subsection (b).
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be effective as if included in the enactment of Public 
     Law 109-304.

     SEC. 3522. AMENDMENTS TO CHAPTER 537 BASED ON PUBLIC LAW 109-
                   163.

       (a) Amendments.--Title 46, United States Code, is amended 
     as follows:
       (1) Section 53701 is amended by--
       (A) redesignating paragraphs (2) through (13) as paragraphs 
     (3) through (14), respectively;
       (B) inserting after paragraph (1) the following:
       ``(2) Administrator.--The term `Administrator' means the 
     Administrator of the Maritime Administration.''; and
       (C) striking paragraph (13) (as redesignated) and inserting 
     the following:
       ``(13) Secretary.--The term `Secretary' means the Secretary 
     of Commerce with respect to fishing vessels and fishery 
     facilities.''.
       (2) Section 53706(c) is amended to read as follows:
       ``(c) Priorities for Certain Vessels.--
       ``(1) Vessels.--In guaranteeing or making a commitment to 
     guarantee an obligation under this chapter, the Administrator 
     shall give priority to--
       ``(A) a vessel that is otherwise eligible for a guarantee 
     and is constructed with assistance under subtitle D of the 
     Maritime Security Act of 2003 (46 U.S.C. 53101 note); and
       ``(B) after applying subparagraph (A), a vessel that is 
     otherwise eligible for a guarantee and that the Secretary of 
     Defense determines--
       ``(i) is suitable for service as a naval auxiliary in time 
     of war or national emergency; and
       ``(ii) meets a shortfall in sealift capacity or capability.
       ``(2) Time for determination.--The Secretary of Defense 
     shall determine whether a vessel satisfies paragraph (1)(B) 
     not later than 30 days after receipt of a request from the 
     Administrator for such a determination.''.
       (3) Section 53707 is amended--
       (A) by inserting ``or Administrator'' in subsections (a) 
     and (d) after ``Secretary'' each place it appears;
       (B) by striking ``Secretary of Transportation'' in 
     subsection (b) and inserting ``Administrator'';
       (C) by striking ``of Commerce'' in subsection (c); and
       (D) in subsection (d)(2), by--
       (i) inserting ``if the Secretary or Administrator considers 
     necessary,'' before ``the waiver''; and
       (ii) striking ``the increased'' and inserting ``any 
     significant increase in''.
       (4) Section 53708 is amended--
       (A) by striking ``Secretary of Transportation'' in the 
     heading of subsection (a) and inserting ``Administrator'';
       (B) by striking ``Secretary'' and ``Secretary of 
     Transportation'' each place they appear in subsection (a) and 
     inserting ``Administrator'';
       (C) by striking ``of Commerce'' in the heading of 
     subsection (b);
       (D) by striking ``of Commerce'' in subsections (b) and (c);
       (E) in subsection (d), by--
       (i) inserting ``or Administrator'' after ``Secretary'' the 
     first place it appears; and
       (ii) striking ``financial structures, or other risk factors 
     identified by the Secretary. Any independent analysis 
     conducted under this subsection shall be performed by a party 
     chosen by the Secretary.'' and inserting ``or financial 
     structures. A third party independent analysis conducted 
     under this subsection shall be performed by a private sector 
     expert in assessing such risk factors who is selected by the 
     Secretary or Administrator.''; and
       (F) in subsection (e), by--
       (i) inserting ``or Administrator'' after ``Secretary'' the 
     first place it appears; and
       (ii) striking ``financial structures, or other risk factors 
     identified by the Secretary'' and inserting ``or financial 
     structures''.
       (5) Section 53710(b)(1) is amended by striking 
     ``Secretary's'' and inserting ``Administrator's''.
       (6) Section 53712(b) is amended by striking the last 
     sentence and inserting ``If the Secretary or Administrator 
     has waived a requirement under section 53707(d) of this 
     title, the loan agreement shall include requirements for 
     additional payments, collateral, or equity contributions to 
     meet the waived requirement upon the occurrence of verifiable 
     conditions indicating that the obligor's financial condition 
     enables the obligor to meet the waived requirement.''.
       (7) Subsections (c) and (d) of section 53717 are each 
     amended--
       (A) by striking ``of Commerce'' in the subsection heading; 
     and
       (B) by striking ``of Commerce'' each place it appears.
       (8) Section 53732(e)(2) is amended by inserting ``of 
     Defense'' after ``Secretary'' the second place it appears.
       (9) The following provisions are amended by striking 
     ``Secretary'' and ``Secretary of Transportation'' and 
     inserting ``Administrator'':
       (A) Section 53710(b)(2)(A)(i).
       (B) Section 53717(b) each place it appears in a heading and 
     in text.
       (C) Section 53718.
       (D) Section 53731 each place it appears, except where 
     ``Secretary'' is followed by ``of Energy''.
       (E) Section 53732 (as amended by paragraph (8)) each place 
     it appears, except where ``Secretary'' is followed by ``of 
     the Treasury'', ``of State'', or ``of Defense''.
       (F) Section 53733 each place it appears.
       (10) The following provisions are amended by inserting ``or 
     Administrator'' after ``Secretary'' each place it appears in 
     headings and text, except where ``Secretary'' is followed by 
     ``of Transportation'' or ``of the Treasury'':
       (A) The items relating to sections 53722 and 53723 in the 
     chapter analysis for chapter 537.
       (B) Sections 53701(1), (4), and (9) (as redesignated by 
     paragraph (1)(A)), 53702(a), 53703, 53704, 
     53706(a)(3)(B)(iii), 53709(a)(1), (b)(1) and (2)(A), and (d), 
     53710(a) and (c), 53711, 53712 (except in the last sentence 
     of subsection (b) as amended by paragraph (6)), 53713 to 
     53716, 53721 to 53725, and 53734.
       (11) Sections 53715(d)(1), 53716(d)(3), 53721(c), 
     53722(a)(1) and (b)(1)(B), and 53724(b) are amended by 
     inserting ``or Administrator's'' after ``Secretary's''.
       (b) Repeal of Superseded Amendments.--Section 3507 (except 
     subsection (c)(4)) of the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163) is repealed.

     SEC. 3523. ADDITIONAL AMENDMENTS BASED ON PUBLIC LAW 109-163.

       (a) Amendments.--Title 46, United States Code, is amended 
     as follows:
       (1) Chapters 513 and 515 are amended by striking ``Naval 
     Reserve'' each place it appears in analyses, headings, and 
     text and inserting ``Navy Reserve''.
       (2) Section 51504(f) is amended to read as follows:
       ``(f) Fuel Costs.--
       ``(1) In general.--Subject to the availability of 
     appropriations, the Secretary shall pay to each State 
     maritime academy the costs of fuel used by a vessel provided 
     under this section while used for training.
       ``(2) Maximum amounts.--The amount of the payment to a 
     State maritime academy under paragraph (1) may not exceed--
       ``(A) $100,000 for fiscal year 2006;
       ``(B) $200,000 for fiscal year 2007; and
       ``(C) $300,000 for fiscal year 2008 and each fiscal year 
     thereafter.''.
       (3) Section 51505(b)(2)(B) is amended by striking 
     ``$200,000'' and inserting ``$300,000 for fiscal year 2006, 
     $400,000 for fiscal year 2007, and $500,000 for fiscal year 
     2008 and each fiscal year thereafter''.
       (4) Section 51701(a) is amended by striking ``of the United 
     States.'' and inserting ``of the United States and to perform 
     functions to assist the United States merchant marine, as 
     determined necessary by the Secretary.''.
       (5)(A) Section 51907 is amended to read as follows:

     ``Sec. 51907. Provision of decorations, medals, and 
       replacements

       ``The Secretary of Transportation may provide--
       ``(1) the decorations and medals authorized by this chapter 
     and replacements for those decorations and medals; and
       ``(2) replacements for decorations and medals issued under 
     a prior law.''.
       (B) The item relating to section 51907 in the chapter 
     analysis for chapter 519 is amended to read as follows:

``51907. Provision of decorations, medals, and replacements''.
       (6)(A) The following new chapter is inserted after chapter 
     539:

                      ``CHAPTER 541--MISCELLANEOUS

``Sec
``54101. Assistance for small shipyards and maritime communities''.
       (B) Section 3506 of the National Defense Authorization Act 
     for Fiscal Year 2006 (46 U.S.C. 53101 note) is transferred to 
     and redesignated as section 54101 of title 46, United States 
     Code, to appear at the end of chapter 541 of title 46, as 
     inserted by subparagraph (A).
       (C) The heading of such section, as transferred by 
     subparagraph (B), is amended to read as follows:

     ``Sec. 54101. Assistance for small shipyards and maritime 
       communities''.

       (D) Paragraph (1) of subsection (h) of such section, as 
     transferred by subparagraph (B), is amended by striking ``(15 
     U.S.C. 632);'' and inserting ``(15 U.S.C. 632));''.
       (E) The table of chapters at the beginning of subtitle V is 
     amended by inserting after the item relating to chapter 539 
     the following new item:
``541. Miscellaneous...........................................54101''.

[[Page 32690]]


       (b) Repeal of Superseded Amendments.--Sections 515(g)(2), 
     3502, 3509, and 3510 of the National Defense Authorization 
     Act for Fiscal Year 2006 (Public Law 109-163) are repealed.

     SEC. 3524. AMENDMENTS BASED ON PUBLIC LAW 109-171.

       (a) Amendments.--Section 60301 of title 46, United States 
     Code, is amended--
       (1) by striking ``2 cents per ton (but not more than a 
     total of 10 cents per ton per year)'' in subsection (a) and 
     inserting ``4.5 cents per ton, not to exceed a total of 22.5 
     cents per ton per year, for fiscal years 2006 through 2010, 
     and 2 cents per ton, not to exceed a total of 10 cents per 
     ton per year, for each fiscal year thereafter,''; and
       (2) by striking ``6 cents per ton (but not more than a 
     total of 30 cents per ton per year)'' in subsection (b) and 
     inserting ``13.5 cents per ton, not to exceed a total of 67.5 
     cents per ton per year, for fiscal years 2006 through 2010, 
     and 6 cents per ton, not to exceed a total of 30 cents per 
     ton per year, for each fiscal year thereafter,''.
       (b) Repeal of Superseded Amendments.--Section 4001 of the 
     Deficit Reduction Act of 2005 (Public Law 109-171) is 
     repealed.

     SEC. 3525. AMENDMENTS BASED ON PUBLIC LAW 109-241.

       (a) Amendments.--Title 46, United States Code, is amended 
     as follows:
       (1) Section 12111 is amended by adding at the end the 
     following:
       ``(d) Activities Involving Mobile Offshore Drilling 
     Units.--
       ``(1) In general.--Only a vessel for which a certificate of 
     documentation with a registry endorsement is issued may 
     engage in--
       ``(A) the setting, relocation, or recovery of the anchors 
     or other mooring equipment of a mobile offshore drilling unit 
     that is located over the outer Continental Shelf (as defined 
     in section 2(a) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1331(a))); or
       ``(B) the transportation of merchandise or personnel to or 
     from a point in the United States from or to a mobile 
     offshore drilling unit located over the outer Continental 
     Shelf that is not attached to the seabed.
       ``(2) Coastwise trade not authorized.--Nothing in paragraph 
     (1) authorizes the employment in the coastwise trade of a 
     vessel that does not meet the requirements of section 12112 
     of this title.''.
       (2) Section 12139(a) is amended by striking ``and 
     charterers'' and inserting ``charterers, and mortgagees''.
       (3) Section 51307 is amended--
       (A) by striking ``and'' at the end of paragraph (2);
       (B) by striking ``organizations.'' in paragraph (3) and 
     inserting ``organizations; and''; and
       (C) by adding at the end the following:
       ``(4) on any other vessel considered by the Secretary to be 
     necessary or appropriate or in the national interest.''.
       (4) Section 55105(b)(3) is amended by striking ``Secretary 
     of the department in which the Coast Guard is operating'' and 
     inserting ``Secretary of Homeland Security''.
       (5) Section 70306(a) is amended by striking ``Not later 
     than February 28 of each year, the Secretary shall submit a 
     report'' and inserting ``The Secretary shall submit an annual 
     report''.
       (6) Section 70502(d)(2) is amended to read as follows:
       ``(2) Response to claim of registry.--The response of a 
     foreign nation to a claim of registry under paragraph (1)(A) 
     or (C) may be made by radio, telephone, or similar oral or 
     electronic means, and is proved conclusively by certification 
     of the Secretary of State or the Secretary's designee.''.
       (b) Repeal of Superseded Amendments.--Sections 303, 307, 
     308, 310, 901(q), and 902(o) of the Coast Guard and Maritime 
     Transportation Act of 2006 (Public Law 109-241) are repealed.

     SEC. 3526. AMENDMENTS BASED ON PUBLIC LAW 109-364.

       (a) Updating of Cross References.--Section 1017(b)(2) of 
     the John Warner National Defense Authorization Act for Fiscal 
     Year 2007 (Public Law 109-364, 10 U.S.C. 2631 note) is 
     amended by striking ``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)'' and inserting ``sections 12112, 50501, and 
     55102 of title 46, United States Code''.
       (b) Section 51306(e).--
       (1) In general.--Section 51306 of title 46, United States 
     Code, is amended by adding at the end the following:
       ``(e) Alternative Service.--
       ``(1) Service as commissioned officer.--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 paragraphs (3) through (5) of subsection (a).
       ``(2) Modification or waiver.--The Secretary may modify or 
     waive any of the terms and conditions set forth in subsection 
     (a) through the imposition of alternative service 
     requirements.''.
       (2) Application.--Section 51306(e) of title 46, United 
     States Code, as added by paragraph (1), applies only to an 
     individual who enrolls as a cadet at the United States 
     Merchant Marine Academy, and signs an agreement under section 
     51306(a) of title 46, after October 17, 2006.
       (c) Section 51306(f).--
       (1) In general.--Section 51306 of title 46, United States 
     Code, is further amended by adding at the end the following:
       ``(f) Service Obligation Performance Reporting 
     Requirement.--
       ``(1) In general.--Subject to any otherwise applicable 
     restrictions on disclosure in section 552a of title 5, 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--
       ``(A) shall report the status of obligated service of an 
     individual graduate of the Academy upon request of the 
     Secretary; and
       ``(B) may, in their discretion, notify the Secretary of any 
     failure of the graduate to perform 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.
       ``(2) Information to be provided.--A report or notice under 
     paragraph (1) 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.
       ``(3) Considered as in default.--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.''.
       (2) Application.--Section 51306(f) of title 46, United 
     States Code, as added by paragraph (1), does not apply with 
     respect to an agreement entered into under section 51306(a) 
     of title 46, United States Code, before October 17, 2006.
       (d) Section 51509(c).--Section 51509(c) of title 46, United 
     States Code, is amended--
       (1) by striking ``Midshipman and'' in the subsection 
     heading and ``midshipman and'' in the text; and
       (2) inserting ``or the Coast Guard Reserve'' after 
     ``Reserve)''.
       (e) Section 51908(a).--Section 51908(a) of title 46, United 
     States Code, is amended by striking ``under this chapter'' 
     and inserting ``by this chapter or the Secretary of 
     Transportation''.
       (f) Section 53105(e)(2).--Section 53105(e)(2) of title 46, 
     United States Code, is amended by striking ``section 2 of the 
     Shipping Act, 1916 (46 U.S.C. App. 802),'' and inserting 
     ``section 50501 of this title''.
       (g) Repeal of Superseded Amendments.--Sections 3505, 3506, 
     3508, and 3510(a) and (b) of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364) 
     are repealed.

     SEC. 3527. MISCELLANEOUS AMENDMENTS.

       (a) Deletion of Obsolete Reference to Canton Island.--
     Section 55101(b) of title 46, United States Code, is 
     amended--
       (1) by inserting ``or'' after the semicolon at the end of 
     paragraph (2);
       (2) by striking paragraph (3); and
       (3) by redesignating paragraph (4) as paragraph (3).
       (b) Improvement of Heading.--Title 46, United States Code, 
     is amended as follows:
       (1) The heading of section 55110 is amended by inserting 
     ``valueless material or'' before ``dredged material''.
       (2) The item for section 55110 in the analysis for chapter 
     551 is amended by inserting ``valueless material or'' before 
     ``dredged material''.

     SEC. 3528. APPLICATION OF SUNSET PROVISION TO CODIFIED 
                   PROVISION.

       For purposes of section 303 of the Jobs and Growth Tax 
     Relief Reconciliation Act of 2003 (Public Law 108-27, 26 
     U.S.C. 1 note), the amendment made by section 301(a)(2)(E) of 
     that Act shall be deemed to have been made to section 
     53511(f)(2) of title 46, United States Code.

     SEC. 3529. ADDITIONAL TECHNICAL CORRECTIONS.

       (a) Amendments to Title 46.--Title 46, United States Code, 
     is amended as follows:
       (1) The analysis for chapter 21 is amended by striking the 
     item relating to section 2108.
       (2) Section 12113(g) is amended by inserting ``and'' after 
     ``Conservation''.
       (3) Section 12131 is amended by striking ``commmand'' and 
     inserting ``command''.
       (b) Amendments to Public Law 109-304.--
       (1) Amendments.--Public Law 109-304 is amended as follows:
       (A) Section 15(10) is amended by striking ``46 App. 
     U.S.C.'' and inserting ``46 U.S.C. App.''.
       (B) Section 15(30) is amended by striking ``Shipping Act, 
     1936'' and inserting ``Shipping Act, 1916''.
       (C) The schedule of Statutes at Large repealed in section 
     19, as it relates to the Act of June 29, 1936, is amended 
     by--
       (i) striking the second section ``1111'' (relating to 46 
     U.S.C. App. 1279f) and inserting section ``1113''; and
       (ii) striking the second section ``1112'' (relating to 46 
     U.S.C. App. 1279g) and inserting section ``1114''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall be effective as if included in the enactment of Public 
     Law 109-304.
       (c) Repeal of Duplicative or Unexecutable Amendments.--
       (1) Repeal.--Sections 9(a), 15(21) and (33)(A) through 
     (D)(i), and 16(c)(2) of Public Law 109-304 are repealed.
       (2) Intended effect.--The provisions repealed by paragraph 
     (1) shall be treated as if never enacted.
       (d) Large Passenger Vessel Crew Requirements.--Section 
     8103(k)(3)(C)(iv) of title 46, United States Code, is amended 
     by inserting ``and section 252 of the Immigration and 
     Nationality Act (8 U.S.C. 1282)'' after ``of such section''.

[[Page 32691]]

       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:
     Ike Skelton,
     John M. Spratt,
     Gene Taylor,
     Neil Abercrombie,
     Silvestre Reyes,
     Vic Snyder,
     Adam Smith,
     Loretta Sanchez,
     Mike McIntyre,
     Ellen O. Tauscher,
     Robert A Brady,
     Robert E. Andrews,
     Susan A. Davis,
     Richard Larsen,
     Jim Cooper,
     Jim Marshall,
     Madeleine Z. Bordallo,
     Mark Udall,
     Duncan Hunter,
     Jim Saxton,
     John M. McHugh,
     Terry Everett,
     Roscoe Bartlett,
     Howard ``Buck'' McKeon,
     Mac Thornberry,
     Walter B. Jones,
     Robin Hayes,
     W. Todd Akin,
     J. Randy Forbes,
     Joe Wilson,
     Michael R. Turner,
     John Kline,
     Thelma Drake,
     From the Permanent Select Committee on Intelligence, for 
     consideration of matters within the jurisdiction of that 
     committee under clause 11 of rule X:
     Leonard L. Boswell,
     Pat J. Murphy,
     From the Committee on Education and Labor, for consideration 
     of secs. 561, 562, 675, 953, and 3118 of the House bill, and 
     secs. 561, 562, 564, 565, and 3137 of the Senate amendment, 
     and modifications committed to conference:
     Joe Courtney,
     Timothy Walberg,
     From the Committee on Energy and Commerce, for consideration 
     of secs 311-313 and 1082 of the Senate amendment, and 
     modifications committed to conference.:
     John Dingell,
     Albert R. Wynn,
     From the Committee on Foreign Affairs, for consideration of 
     secs. 831, 833, 1022, 1201, 1203, 1204, 1206-1208, 1221, 
     1222, 1231, 1241, 1242, Title XIII, and sec. 3117 of the 
     House bill, and secs. 871, 934, 1011, 1201-1203, 1205, 1211, 
     1212, 1214, 1215, 1217, 1219, 1232, Title XIII, secs. 1511, 
     1512, 1532, 1533, 1539-1542, 1571, 1574-1576, 1579, 3134, and 
     3139 of the Senate amendment, and modifications committed to 
     conference:
     Tom Lantos,
     Gary Ackerman,
     Ileana Ros-Lehtinen,
     From the Committee on Homeland Security, for consideration of 
     sec. 1076 of the Senate amendment, and modifications 
     committed to conference:
     Bennie G. Thompson,
     Christopher P. Carney,
     Daniel E. Lungren,
     From the Committee on Oversight and Government Reform, for 
     consideration of secs. 325, 326, 328-330, 604, 653, 674, 801, 
     802, 814, 815, 821-824, 1101-1112, 1221, 1231, and 1451 of 
     the House bill, and secs. 366-370, 603, 684, 821, 823, 842, 
     845, 846, 871, 902, 937, 1064, 1069, 1074, 1093, 1101-1106, 
     1108, 1540, 1542, and 2851 of the Senate amendment, and 
     modifications committed to conference:
     Henry A. Waxman,
     From the Committee on Science and Technology, for 
     consideration of secs. 846, 1085, and 1088 of the Senate 
     amendment, and modifications committed to conference:
      Bart Gordon,
     Gabrielle Giffords,
     Vernon J. Ehlers,
     From the Committee on Small Business, for consideration of 
     secs. 828, 1085, 1088, 4001, 4002, 4101-4103, 4201-4203, and 
     4301-4305 of the Senate amendment, and modifications 
     committed to conference:
     Nydia M. Velazquez,
     Jason Altmire,
     From the Committee on Transportation and Infrastructure, for 
     consideration of secs. 523 and 1048 of the House bill, and 
     secs. 311-313, 353, 1070, 2853, 2855, 2863, 5101, 5202, and 
     5208 of the Senate amendment, and modifications committed to 
     conference:
     Sam Graves,
     From the Committee on Veterans Affairs, for consideration of 
     secs. 525, 1421, 1433, and 1453 of the House bill, and secs. 
     701, 710, 1084, 1611, 1612, 1621, 1626, 1634, 1641, 1654, 
     1662, and 1702-1712 of the Senate amendment, and 
     modifications committed to conference:
     Bob Filner,
     Mike Michaud,
     Steve Buyer,
     From the Committee on Ways and Means, for consideration of 
     sec. 536 of the Senate amendment, and modifications committed 
     to conference:
     Dave Camp,
                                Managers on the Part of the House.

     Carl Levin,
     Ted Kennedy,
     J. Lieberman,
     Jack Reed,
     Daniel K. Akaka,
     Bill Nelson,
     Ben Nelson,
     Evan Bayh,
     Mark Pryor,
     Jim Webb,
     Claire McCaskill,
     J. Warner,
     James M. Inhofe,
     Jeff Sessions,
     Susan M. Collins,
     Saxby Chambliss,
     Lindsey Graham,
     Elizabeth Dole,
     John Cornyn,
     Mel Martinez,
                               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. 1585), to authorize 
     appropriations for fiscal year 2008 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, 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 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 that 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

     Explanation of funding summary
       The President's February budget request for the national 
     defense function of the federal budget for fiscal year 2008 
     was $505.4 billion for the base budget, excluding the costs 
     of operations in Iraq and Afghanistan, plus an additional 
     $141.8 billion in emergency defense funding requested for 
     those operations and other costs, including some of the cost 
     of the administration's proposal to increase the size of the 
     Army and the Marine Corps. The combined total requested by 
     the President for the national defense budget function was 
     $647.2 billion. According to the estimating procedures used 
     by the Congressional Budget Office (CBO), the amount 
     requested for the base budget was $507.0 billion, and the 
     total amount requested, including the emergency war-related 
     funding, was $648.8 billion.
       The primary discrepancy between the administration and CBO 
     estimates related to assumed savings in the Defense Health 
     program (DHP) account. The funding summary table that follows 
     uses the budget authority levels as calculated by CBO, both 
     for the DHP and the bill as a whole.
       After the House and Senate bills had been reported, and the 
     Concurrent Resolution on the Budget for Fiscal Year 2008 (S. 
     Con. Res. 21) had been adopted by the Senate and the House of 
     Representatives on May 17, 2007, the President submitted two 
     additional budget amendments. On July 31, 2007, the President 
     requested an additional $5.3 billion for Mine-Resistant 
     Ambush Protected (MRAP) vehicles. On October 22, 2007, the 
     President requested an additional $42.3 billion for 
     operations in Iraq and Afghanistan and for other purposes 
     (including base closure), bringing the total requested for 
     war-related purposes for fiscal year 2008 to $189.3 billion 
     and the total requested for the entire national defense 
     budget function for both the base budget and war-related 
     funding to $696.3 billion.
       The following table summarizes both the direct 
     authorizations and equivalent budget authority levels for 
     fiscal year 2008 defense programs. The columns relating to 
     the authorization request do not include funding for items 
     that are not within the jurisdiction of this committee or 
     that do not require an annual authorization. The table also 
     includes the authorization for spending from the trust fund 
     of the Armed Forces Retirement Home, which is outside the 
     national defense budget function.
       Funding for all programs in the national defense function 
     is reflected in the columns related to the budget authority 
     request and the total budget authority implication of the 
     authorizations in this bill. The conference agreement 
     authorizes the same total funding level of $696.4 billion 
     requested by the President including both budget amendments.
       The funding level authorized in the conference agreement is 
     consistent with the budget authority level of $507.0 billion 
     for the national defense function (function 050) in the 
     Concurrent Resolution on the Budget for Fiscal Year 2008.
       Because the conference agreement authorizes funding for the 
     July and October budget amendments, which were submitted 
     after the Concurrent Resolution on the Budget was

[[Page 32692]]

     adopted, the total authorized to be appropriated in this Act 
     exceeds the amount included in that budget resolution for 
     both operations in Iraq and Afghanistan, and for national 
     defense in total, by the $47.7 billion requested in the July 
     and October budget amendments.
       Funding requested and authorized for operations in Iraq and 
     Afghanistan is contained in title XV (for personnel, 
     operation and maintenance, procurement, and other costs 
     normally funded in Division A of this Act), in title XXIX of 
     Division B for military construction projects in Iraq or 
     Afghanistan, and in title XXXII of Division C for the 
     Department of Energy. 

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                    Congressional Defense Committees

       The term ``congressional defense committees'' is often used 
     in this statement of managers. It means the Defense 
     Authorization and Appropriations Committees of the Senate and 
     the House of Representatives.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

                          PROCUREMENT OVERVIEW

       The budget request for fiscal year 2008 included an 
     authorization of $101,660.1 million for procurement for the 
     Department of Defense.
       The House bill would authorize $102,160.1 million.
       The Senate amendment would authorize $109,811.7 million.
       The conferees recommended an authorization of $99,269.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 32706]]

                              Budget Items

     Aircraft Procurement, Army--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $4,179.8 million for Aircraft Procurement, 
     Army in the Department of Defense.
       The House bill would authorize $3,928.1 million.
       The Senate amendment would authorize $5,229.2 million.
       The conferees recommended an authorization of $4,168.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Missile Procurement, Army--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $1,645.5 million for Missile Procurement, 
     Army in the Department of Defense.
       The House bill would authorize $2,114.9 million.
       The Senate amendment would authorize $2,178.1 million.
       The conferees recommended an authorization of $1,912.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement of Weapons and Tracked Combat Vehicles, Army--
         Overview
       The budget request for fiscal year 2008 included an 
     authorization of $3,090.0 million for Procurement of Weapons 
     and Tracked Combat Vehicles, Army in the Department of 
     Defense.
       The House bill would authorize $3,311.1 million.
       The Senate amendment would authorize $7,546.7 million.
       The conferees recommended an authorization of $3,007.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement of Ammunition, Army--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $2,190.6 million for Procurement of 
     Ammunition, Army in the Department of Defense.
       The House bill would authorize $2,238.2 million.
       The Senate amendment would authorize $2,229.0 million.
       The conferees recommended an authorization of $2,214.6 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Other Procurement, Army--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $12,647.1 million for Other Procurement, 
     Army in the Department of Defense.
       The House bill would authorize $11,455.5 million.
       The Senate amendment would authorize $14,983.9 million.
       The conferees recommended an authorization of $12,451.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Aircraft Procurement, Navy--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $12,747.8 million for Aircraft Procurement, 
     Navy in the Department of Defense.
       The House bill would authorize $12,750.8 million.
       The Senate amendment would authorize $13,475.1 million.
       The conferees recommended an authorization of $12,432.6 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Weapons Procurement, Navy--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $3,084.4 million for Weapons Procurement, 
     Navy in the Department of Defense.
       The House bill would authorize $3,058.4 million.
       The Senate amendment would authorize $3,078.4 million.
       The conferees recommended an authorization of $3,068.2 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement of Ammunition, Navy and Marine Corps--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $760.5 million for Procurement of 
     Ammunition, Navy and Marine Corps in the Department of 
     Defense.
       The House bill would authorize $1,060.5 million.
       The Senate amendment would authorize $926.6 million.
       The conferees recommended an authorization of $1,058.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Shipbuilding and Conversion, Navy--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $13,656.1 million for Shipbuilding and 
     Conversion, Navy in the Department of Defense.
       The House bill would authorize $15,744.1 million.
       The Senate amendment would authorize $13,605.6 million.
       The conferees recommended an authorization of $13,596.1 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 32765]]

     Other Procurement, Navy--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $5,470.4 million for Other Procurement, Navy 
     in the Department of Defense.
       The House bill would authorize $5,443.6 million.
       The Senate amendment would authorize $5,432.4 million.
       The conferees recommended an authorization of $5,209.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement, Marine Corps--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $2,999.1 million for Procurement, Marine 
     Corps in the Department of Defense.
       The House bill would authorize $2,580.3 million.
       The Senate amendment would authorize $2,699.1 million.
       The conferees recommended an authorization of $2,299.4 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Aircraft Procurement, Air Force--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $12,393.3 million for Aircraft Procurement, 
     Air Force in the Department of Defense.
       The House bill would authorize $12,356.3 million.
       The Senate amendment would authorize $12,593.8 million.
       The conferees recommended an authorization of $12,117.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement of Ammunition, Air Force--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $868.9 million for Procurement of 
     Ammunition, Air Force in the Department of Defense.
       The House bill would authorize $868.9 million.
       The Senate amendment would authorize $868.9 million.
       The conferees recommended an authorization of $854.2 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Missile Procurement, Air Force--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $5,131.0 million for Missile Procurement, 
     Air Force in the Department of Defense.
       The House bill would authorize $5,138.0 million.
       The Senate amendment would authorize $5,166.0 million.
       The conferees recommended an authorization of $4,984.1 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Advanced extremely high frequency satellite
       The budget request included $700,000 in Missile 
     Procurement, Air Force (MPAF line 13) for the advanced 
     extremely high frequency satellite system (AEHF).
       The House bill would authorize an increase of $100.0 
     million.
       The Senate amendment would authorize an increase of $125.0 
     million.
       The conferees agree to authorize $125.0 million for 
     advanced procurement for the fourth AEHF satellite. The 
     conferees continue to be concerned about a potential gap in 
     protected communications.
     Other Procurement, Air Force--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $15,421.2 million for Other Procurement, Air 
     Force in the Department of Defense.
       The House bill would authorize $15,441.8 million.
       The Senate amendment would authorize $16,313.0 million.
       The conferees recommended an authorization of $15,405.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement, Defense-wide--Overview
       The budget request for fiscal year 2008 included an 
     authorization of $3,318.8 million for Procurement, Defense-
     wide in the Department of Defense.
       The House bill would authorize $3,537.8 million.
       The Senate amendment would authorize $3,386.0 million.
       The conferees recommended an authorization of $3,280.4 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     National Guard and Reserve Equipment--Overview
       The budget request for fiscal year 2008 included an 
     authorization request for National Guard and Reserve 
     Equipment in the Department of Defense.
       The House bill would authorize $1,131.9 million for 
     National Guard and Reserve Equipment.
       The Senate amendment would provide no authorization for 
     National Guard and Reserve Equipment.
       The conferees recommend an authorization of $980.0 million 
     for National Guard and Reserve Equipment. Unless noted 
     explicitly in the statement of managers, all changes are made 
     without prejudice.

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                        Item of Special Interest

     Unmanned aerial systems management
       The report accompanying the Senate amendment (S. Rept. 110-
     77) would direct the Air Force to shift its procurement of 
     MQ-1 Predator aircraft to the MQ-1C version of Predator in 
     fiscal year 2008, if possible. The Senate report also would 
     provide direction regarding the Air Force proposal to assume 
     executive agency for medium- and high-altitude unmanned 
     aerial systems (UAS).
       Shortly before conference, the Department of Defense (DOD) 
     completed action on this Air Force proposal and presented its 
     plans for UAS management to Congress. The conferees do not 
     take issue with the management plan per se, but are very 
     concerned about serious bottlenecks to meeting urgent needs 
     for more UAS that are able to meet the needs of ground 
     commanders.
       The Air Force is fielding 21 orbits of Predators as rapidly 
     as it can. However, the limiting factor for expanding 
     Predator operations is the number of trained system 
     operators. Two factors cause this bottleneck: (1) the time 
     required to train new rated pilots before they learn to fly 
     UAS; and (2) the current limitations on flight operations of 
     UAS in national airspace, especially at night.
       Section 1044(b) of the John Warner National Defense 
     Authorization Act for Fiscal year 2007 (Public Law 109-364) 
     required the Secretary of Defense and the Administrator of 
     the Federal Aviation Administration (FAA) to each submit a 
     report on achieving wider access to the National Airspace 
     System (NAS) for DOD UAS.
       The FAA report has yet to be provided.
       The Secretary of Defense recently delivered his report, 
     which included the dire warning that the DOD-FAA schedule for 
     developing standards and expanding UAS access to the NAS does 
     not support DOD operational requirements. Negotiations 
     between DOD and the FAA are reportedly not making progress.
       The conferees understand that many ground force operations 
     require UAS imagery in real-time. Ground force commanders 
     find the delay in receiving intelligence information 
     unacceptable when the raw data is transmitted via satellite 
     to remote operating locations, processed and forwarded to the 
     ground commanders' forces. This drives ground force operators 
     to acquire manned aircraft solutions when a possible simple 
     design change to UAS would suffice.
       Finally, the conferees note that while UAS systems like the 
     Predator are being fielded to provide support to the Army and 
     Marine Corps ground forces, these armed forces are not 
     currently training together.
       The conferees direct the Secretary of Defense to report to 
     the congressional defense and intelligence committees by 
     February 15, 2008, on the actions he proposes to take to 
     address these issues. The conferees request that this report 
     include solutions to the backlog of UAS pilot training 
     (including alternatives to using fully-rated pilots for UAS), 
     an assessment of the status of negotiations with the FAA 
     regarding UAS use of national airspace, and the way in which 
     the Department's new UAS Task Force will alleviate similar 
     issues in the future.

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 101-105)
       The House bill contained provisions (secs. 101-105) that 
     would authorize the recommended fiscal year 2008 funding 
     levels for procurement for the Army, Navy, Marine Corps, Air 
     Force, Defense-wide activities, and National Guard and 
     reserve equipment.
       The Senate amendment contained provisions (secs. 101-105) 
     that would authorize the recommended fiscal year 2008 funding 
     levels for procurement for the Army, Navy, Marine Corps, Air 
     Force, Defense-wide activities, and Rapid Acquisition Fund.
       The Senate recedes.

                       Subtitle B--Army Programs

     Multiyear procurement authority for M1A2 Abrams System 
         Enhancement Package upgrades (sec. 111)
       The House bill contained a provision (sec. 111) that would 
     authorize the Secretary of the Army to enter into a multiyear 
     contract for procurement of M1A2 Abrams System Enhancement 
     Package upgrades.
       The Senate amendment contained a provision (sec. 111) that 
     would do the same.
       The House recedes.
     Multiyear procurement authority for M2A3/M3A3 Bradley 
         fighting vehicle upgrades (sec. 112)
       The House bill contained a provision (sec. 112) that would 
     authorize the Secretary of the Army to enter into a multiyear 
     contract for procurement of M2A3/M3A3 Bradley fighting 
     vehicle upgrades.
       The Senate amendment contained a provision (sec. 112) that 
     would do the same.
       The House recedes.
     Multiyear procurement authority for conversion of CH-47D 
         helicopters to CH-47F configuration (sec. 113)
       The House bill contained a provision (sec. 113) that would 
     authorize the Secretary of the Army to enter into a multiyear 
     contract for conversion of CH-47D helicopters to the CH-47F 
     configuration.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Multiyear procurement authority for CH-47F helicopters (sec. 
         114)
       The House bill contained a provision (sec. 114) that would 
     authorize the Secretary of the Army to enter into a multiyear 
     contract for procurement of CH-47F helicopters.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Limitation on use of funds for Increment 1 of the Warfighter 
         Information Network-Tactical program pending 
         certification to Congress (sec. 115)
       The House bill contained a provision (sec. 115) that would 
     limit the funds for the Joint Network Node program pending a 
     certification to Congress.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Prohibition on closure of Army Tactical Missile System 
         production line pending report (sec. 116)
       The House bill contained a provision (sec. 116) that would 
     prohibit the Army from commencing, continuing, or completing 
     the closure of the Army Tactical Missile System (ATACMS) 
     production line until at least 120 days after submission of a 
     report that contains the Secretary of the Army's 
     certification that the long-range surface-to-surface and 
     counter-battery mission of the Army can be adequately 
     performed by other elements of the armed forces, a plan to 
     mitigate any shortfalls in the industrial base that would be 
     created by the closure, and a plan to replace the Army's 
     capability to perform long-range surface-to-surface strike 
     and counter-battery missions.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would only 
     prohibit the closure of the ATACMS production line until 
     after submission of the report containing the Secretary of 
     the Army's certification. Further, the amendment would delete 
     the report requirement for a plan to replace the Army's 
     capability to perform long-range surface-to-surface strike 
     and counter-battery missions.
     Stryker Mobile Gun System (sec. 117)
       The Senate amendment contained a provision (sec. 113) that 
     would prohibit the obligation or expenditure of funds for the 
     procurement of the Stryker Mobile Gun System until 30 days 
     after the Secretary of the Army certifies to Congress that 
     the Stryker Mobile Gun System is operationally effective, 
     suitable, and survivable for its anticipated deployment 
     missions.
       The House bill contained no similar provision.
       The House recedes.

                       Subtitle C--Navy Programs

     Multiyear procurement authority for Virginia-class submarine 
         program (sec. 121)
       The House bill contained a provision (sec. 122) that would 
     authorize the Secretary of the Navy to enter into a multiyear 
     contract for procuring Virginia-class submarines.
       The Senate amendment contained a similar provision (sec. 
     131) that would authorize the Secretary of the Navy to enter 
     into more than one contract for the same purpose.
       The House recedes with a clarifying amendment.
     Report on shipbuilding investment strategy (sec. 122)
       The House bill contained a provision (sec. 125) that would 
     permit the Secretary of the Navy to carry out a program 
     providing capital expenditure incentives for contractors in 
     the shipbuilding industry. The program would be funded from 
     amounts made available for shipbuilding procurement.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of the Navy to provide for a study to determine the 
     effectiveness of current financing mechanisms for 
     shipbuilding capital expenditures, and to assess capital 
     expenditure incentives that would lead to ship construction 
     or life cycle savings to the Federal Government. The 
     amendment would require a report on the results of the study 
     to be submitted not later than October 1, 2008. The amendment 
     would not authorize a new incentive program.
       The conferees understand that the Navy's utilization of 
     capital expenditure incentives on individual shipbuilding 
     contracts has shown early progress in improving efficiency 
     and productivity, which has tended to benefit multiple 
     shipbuilding contracts at the same facility. The conferees 
     encourage the Secretary to evaluate further concepts for 
     capital expenditures that would provide high return on 
     investment, facility-wide and industry-wide, and to identify 
     in this report any specific authorities which would have to 
     be authorized by Congress for the Secretary to implement such 
     concepts. The conferees note the success achieved by the 
     National Shipbuilding Research Program in providing industry-
     wide productivity improvements, and strongly encourage the 
     Navy to leverage further opportunities available through this 
     program.

[[Page 32821]]


     Sense of Congress on the preservation of a skilled United 
         States shipyard workforce (sec. 123)
       The House bill contained a provision (sec. 126) that would 
     prohibit the use of Shipbuilding and Conversion, Navy, funds 
     for the purpose of construction of a Navy vessel at a 
     construction facility where the contractor employs or 
     contracts for foreign workers who are legally present in the 
     United States under the H-2B visa program. The provision 
     would allow for an exception to the prohibition, if the 
     Secretary of the Navy were to identify potential surplus 
     shipyard labor in all geographical areas, and if the hiring 
     shipyard were to have shown an attempt to recruit such labor 
     before hiring H-2B visa workers.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of the Navy, in consultation with the Department of 
     Labor, to provide a one-time report identifying the average 
     number of H-2B visa workers employed by the major 
     shipbuilders in the construction of United States Navy ships 
     during calendar year 2007, and the number of H-2B visa 
     workers petitioned by the major shipbuilders for calendar 
     year 2008, as of the first quarter of 2008.
     Assessments required prior to start of construction on first 
         ship of a shipbuilding program (sec. 124)
       The House bill contained a provision (sec. 127) that would 
     require the Secretary of the Navy to certify to the 
     congressional defense committees that ship design, 
     development, and contractor preparedness are mature prior to 
     the start of construction of the first ship in a new class of 
     vessels, the first ship to be built at a shipyard, or the 
     first vessel after a major design change.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to submit a report to the congressional defense 
     committees on the results of any production readiness review 
     conducted in conjunction with approval of start of 
     construction of the first ship for any major shipbuilding 
     program, and to certify to the congressional defense 
     committees that the findings of such review support 
     commencement of construction.
     Littoral Combat Ship (LCS) program (sec. 125)
       The Senate amendment contained a provision (sec. 132) that 
     would limit the total amount to be obligated or expended for 
     the procurement costs of the fifth and sixth vessels in the 
     Littoral Combat Ship (LCS) class of vessels to $460.0 million 
     per vessel. The provision would require that the Navy employ 
     a fixed-price type contract for construction of the fifth and 
     follow ships of the Littoral Combat Ship class of vessels, 
     and would restrict the Navy from entering into, or modifying, 
     such contract if the limitation of the government's cost 
     liability, when added to the sum of other budgeted 
     procurement costs, would exceed $460.0 million per vessel. 
     The provision would also define procurement costs to include 
     all costs for plans, basic construction, change orders, 
     electronics, ordnance, contractor support, and other costs 
     associated with completion of production drawings, ship 
     construction, test, and delivery, including work performed 
     post-delivery that is required to meet original contract 
     requirements.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend the 
     limitation of cost to Littoral Combat Ships authorized and 
     appropriated in fiscal year 2008 or subsequent fiscal years.

                     Subtitle D--Air Force Programs

     Limitation on Joint Cargo Aircraft (sec. 131)
       The House bill contained a provision (sec. 132) that would 
     prohibit the Secretary of the Air Force or the Secretary of 
     the Army from obligating or expending authorized 
     appropriations for the development or procurement of the 
     Joint Cargo Aircraft until 30 days after the Secretary of 
     Defense submits to the congressional defense committees the 
     Air Force Air Mobility Command's Airlift Mobility Roadmap; 
     the Department of Defense Intra-Theater Airlift Capabilities 
     Study; the Department of Defense Joint Intra-Theater 
     Distribution Assessment of the Joint Cargo Aircraft 
     Functional Area Series Analysis; the Joint Cargo Aircraft 
     Analysis of Alternatives; and the Secretary of Defense 
     certifies that validated operational requirements exist to 
     fill a Department of the Army, Department of the Air Force, 
     Army National Guard, or Air National Guard capability gap or 
     shortfall for intra-theater airlift with the Joint Cargo 
     Aircraft.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would add the 
     Intra-Theater Airlift Fleet Mix Analysis to the required set 
     of studies that the Department must deliver.
     Clarification of limitation on retirement of U-2 aircraft 
         (sec. 132)
       The House bill contained a provision (sec. 133) that would 
     modify section 133(b) of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364) 
     to clarify limitations on retirement of U-2 aircraft.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Repeal of requirement to maintain retired C-130E tactical 
         aircraft (sec. 133)
       The House bill contained a provision (sec. 134) that would 
     repeal section 137(b) of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364). 
     Section 137(b) requires that the Secretary of the Air Force 
     maintain any C-130E aircraft retired after September 30, 2006 
     in a condition that would allow recall of that aircraft to 
     future service. The Air Force refers to this status as 
     ``Type-1000 storage''.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would allow the 
     Secretary of the Air Force to remove these retired C-130 
     aircraft from Type-1000 storage if he:
       (1) submits the Fleet Mix Analysis Study to the 
     congressional defense committees; and
       (2) waits for a period of 30 days.
     Limitation on retirement of C-130E/H tactical airlift 
         aircraft (sec. 134)
       The Senate amendment contained a provision (sec. 141) that 
     would: (1) prevent the Secretary of the Air Force from 
     retiring any C-130E/H aircraft during fiscal year 2008; and 
     (2) require that he maintain any C-130E aircraft retired 
     after September 30, 2006 in a condition that would allow 
     recall of that aircraft to future service. The Air Force 
     refers to this status as ``Type-1000 storage''.
       The House bill contained no similar provision.
       The House recedes with an amendment that would allow the 
     Secretary of the Air Force to retire up to 24 C-130E/H 
     aircraft during fiscal year 2008 if he:
       (1) maintains any aircraft retired under this provision in 
     Type-1000 storage;
       (2) submits the Fleet Mix Analysis Study to the 
     congressional defense committees; and
       (3) waits for a period of 30 days.
     Limitation on retirement of KC-135E aerial refueling aircraft 
         (sec. 135)
       The Senate amendment contained a provision (sec. 142) that 
     would prohibit the Secretary of the Air Force from retiring 
     any KC-135 aerial refueling aircraft during fiscal year 2008 
     unless the Air Force provides the congressional defense 
     committees with a request to retire KC-135E aircraft during 
     fiscal year 2008 in accordance with established procedures 
     similar to those used for prior approval reprogramming 
     requests.
       The House bill contained no similar provision.
       The House recedes with an amendment that would allow the 
     Secretary of the Air Force to retire up to 48 KC-135E 
     aircraft in fiscal year 2008. The Secretary would not be 
     allowed to retire any additional KC-135E until the Secretary 
     certifies to the congressional defense committees that:
       (1) the Air Force has awarded the KC(X) contract;
       (2) any bid protest arising from the award of the KC(X) 
     contract have been adjudicated by the Government 
     Accountability Office (GAO); and
       (3) the Air Force has responded to GAO determinations 
     arising from any such bid protest.
     Transfer to Government of Iraq of three C-130E tactical 
         airlift aircraft (sec. 136)
       The Senate amendment contained a provision (sec. 144) that 
     would permit the Secretary of the Air Force to transfer up to 
     three C-130E aircraft to the Government of Iraq from among 
     aircraft that the Air Force had retired during fiscal year 
     2007.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that, under the conditions of transfer 
     of surplus property, neither the Air Force nor the U.S. 
     Government will retain any responsibility for maintenance of 
     these aircraft.
     Modification of limitations on retirement of B-52 bomber 
         aircraft (sec. 137)
       The Senate amendment contained a provision (sec. 145) that 
     would amend section 131 of the John Warner National Defense 
     Authorization Act for Fiscal 2007 (Public Law 109-364) to 
     direct the Secretary of the Air Force to maintain a primary 
     aircraft inventory of not less than 63 B-52 bomber aircraft 
     in a common configuration and backup aircraft inventory of 
     not less than 11 B-52 bomber aircraft. The provision would 
     also extend to 60 days the period of time in which the 
     Secretary cannot retire B-52 bomber aircraft following 
     submission of the report required by section 131.
       The House bill contained no similar provision.
       The House recedes with an amendment that would direct the 
     Secretary of the Air Force to retain an attrition reserve of 
     not less than two B-52 bomber aircraft and prohibit any of 
     the 76 B-52 bomber aircraft from being put into a storage 
     status or in a status considered excess to the requirements 
     of the possessing command and awaiting disposition 
     instructions. The provision would also allow the Secretary of 
     the Air Force to use two retired B-52 bomber aircraft for 
     maintenance ground training. In addition, the amendment would 
     define the terms used to describe the aircraft status 
     categories.

[[Page 32822]]

       The conferees believe that a B-52 total aircraft inventory 
     of less than 76 aircraft is not sufficient to meet combatant 
     commander requirements for conventional, long-range strike 
     requirements if the need should arise to conduct near 
     simultaneous operations in two major regional conflicts. The 
     conferees strongly discourage the Secretary of the Air Force 
     from taking action to reduce the B-52 aircraft inventory 
     below 76 total aircraft prior to the next generation bomber 
     reaching initial operational capability status and strongly 
     oppose a strategy that reduces current conventional long-
     range strike capability.

                   Legislative Provisions Not Adopted

     Advance procurement for Virginia class submarine program
       The Senate amendment contained a provision (sec. 133) that 
     would authorize $400.0 million for procurement of a second 
     ship set of reactor components, and $70.0 million for advance 
     procurement of non-nuclear long lead time material in order 
     to support a reduced construction span time for the boats in 
     the next multiyear procurement program.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report in Shipbuilding and Conversion, Navy (SCN), line 
     number 4.
       The National Defense Authorization Acts for Fiscal Years 
     1998 and 2004 (Public Law 105-85 and Public Law 108-136, 
     respectively) authorized the Secretary of the Navy to enter 
     into a contract for procurement of New Attack Submarines 
     provided that the prime contractor, which was selected to be 
     General Dynamics, entered into one or more subcontracts with 
     the subcontractor, which is Northrop Grumman, for submarine 
     construction as contemplated in the New Attack Submarine Team 
     Agreement.
       The Secretary of the Navy has advised the committee that 
     the teaming arrangement has worked well for the Navy in the 
     highly unique circumstance of submarine construction and has 
     proven to be the most practical manner of maintaining two 
     viable sources for building nuclear powered submarines in 
     this low-rate production environment. The committee 
     understands that the Navy intends to continue to support 
     teaming by General Dynamics and Northrop Grumman for the 2009 
     Virginia class submarine multiyear procurement contract.
     Authority to transfer funds for submarine engineered 
         refueling overhauls and conversions and for aircraft 
         carrier refueling complex overhauls
       The House bill contained a provision (sec. 121) that would 
     authorize the Secretary of Defense to transfer to the 
     Shipbuilding and Conversion, Navy account, from funds 
     available in fiscal year 2008 or after, such funds as may be 
     necessary to cover increased costs of submarine engineered 
     refueling overhauls and conversions or aircraft carrier 
     refueling complex overhauls.
       The Senate amendment contained no similar provision.
       The House recedes.
     Consolidation of Joint Network Node program and Warfighter 
         Information Network-Tactical program into single Army 
         tactical network program
       The Senate amendment contained a provision (sec. 114) that 
     would require the Secretary of the Army to consolidate the 
     Joint Network Node (JNN) program and the Warfighter 
     Information Network-Tactical (WIN-T) program into one 
     tactical network program.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that subsequent to the Committee on 
     Armed Services of the Senate's mark-up of the National 
     Defense Authorization Act for Fiscal Year 2008, the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics certified a restructured WIN-T program consisting 
     of four distinct increments that provide increasing 
     capability. The first increment of the new program 
     consolidated the JNN program into the WIN-T program, as 
     prescribed by the Senate bill.
     General fund enterprise business system
       The Senate amendment contained a provision (sec. 115) that 
     would reallocate funding in the bill for the General Fund 
     Enterprise Business System program from the procurement and 
     operation and maintenance accounts to the research and 
     development account to reflect changes in the program 
     schedule.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report.
     Limitation on final assembly of VH-71 presidential transport 
         helicopters
       The House bill contained a provision (sec. 123) that would 
     prevent any obligation or expenditure of funds from Aircraft 
     Procurement, Navy for final assembly of more than five VH-71 
     presidential transport helicopters, unless final assembly of 
     those helicopters would be carried out in the United States.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees support the current program of record, in 
     which the Navy intends to assemble no more than five VH-71 
     presidential helicopters outside the United States.
       The conferees direct that, before making any decision to 
     change the location of final assembly for helicopters beyond 
     the first five in the VH-71 acquisition strategy, the 
     Secretary of Defense provide at least a 60-day notice to the 
     congressional defense committees before implementing any such 
     change. The conferees expect that the current acquisition 
     strategy program of record will remain in place absent an 
     extraordinary circumstance.
     Limitation on retiring C-5 aircraft
       The House bill contained a provision (sec. 131) that would 
     allow the Secretary of the Air Force to retire C-5A aircraft 
     from the inventory and replace that capability with C-17 
     aircraft if a cost analysis were to show that this would be a 
     prudent alternative in meeting strategic airlift requirements 
     and would not significantly increase costs above those 
     already planned in the out-years. The provision would also 
     repeal section 132 of the National Defense Authorization Act 
     for Fiscal Year 2004 (Public Law 108-136), which prevents 
     retiring any C-5A until testing of a C-5A aircraft with the 
     reliability enhancement and re-engining program (RERP) 
     modification is complete.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees direct the Air Force to identify options for 
     accelerating the completion of C-5 RERP operational testing, 
     including rephasing the program depot maintenance 
     availability, that would:
       (1) complete all required testing objectives;
       (2) cut no corners regarding aircraft or aircrew safety; 
     and
       (3) result in accelerating the completion of operational 
     testing and producing the required reports from that testing.
       The conferees also direct the Secretary of Defense to task 
     the Institute for Defense Analyses (IDA) to perform an 
     objectivity/sufficiency review and net present value analysis 
     of the RERP service cost position of the Air Force submitted 
     to the Department of Defense pursuant to the Nunn-McCurdy 
     breach notification, the most recent cost estimate provided 
     to the Air Force by the RERP prime contractor, and the cost 
     estimate of the Cost Analysis Improvement Group used during 
     the Nunn-McCurdy breach review and certification process. The 
     conferees direct that the Secretary forward the results of 
     that IDA review to the congressional defense committees not 
     later than March 1, 2008.
     Responsibility of the Air Force for fixed-wing support of 
         Army intra-theater logistics
       The Senate amendment contained a provision (sec. 1030) that 
     would require the Secretary of Defense, acting through the 
     Chairman of the Joint Chiefs of Staff, to prescribe 
     directives or instructions to provide that the Air Force 
     would be responsible for the missions and functions of fixed-
     wing support for Army intra-theater logistics.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree that no one should interpret this 
     action as the conferees having made a judgment as to which 
     military service should operate the Joint Cargo Aircraft or 
     provide intra-theater airlift capability to Joint Force 
     commanders. The conferees expect to make such a decision 
     after reviewing the results of the quadrennial roles and 
     missions report by the Secretary of Defense directed in title 
     IX of this Act (sec. 941). The conferees expect that the 
     mission of providing fixed-wing airlift support for intra-
     theater logistics will be specifically addressed in the 
     report to determine the appropriate allocation of the Joint 
     Cargo Aircraft platform.
       The conferees understand that it is the Department's 
     intent, irrespective of any decision on roles and missions, 
     that authority for operational control and tasking of fixed-
     wing intra-theater airlift that is allocated or apportioned 
     to support a regional combatant commander will reside with 
     the respective Joint Force Air Component Commander or 
     Combined Forces Air Component Commander to best support 
     military operations.
     Sense of Congress on rapid fielding of Associate Intermodal 
         Platform system and other innovative logistics systems
       The Senate amendment contained a provision (sec. 147) that 
     would express the sense of Congress that the Department of 
     Defense should: (1) rapidly field innovative logistics 
     systems such as the Associate Intermodal Platform system 
     (AIPS); and (2) seek to fully procure such innovative 
     logistics systems in the future.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees understand that the U.S. Transportation 
     Command and the Air Mobility Command have been evaluating the 
     AIPS and a number of other innovative logistics systems to 
     reduce operating and support costs and increase capability. 
     The conferees agree that the Department should continue these 
     reviews and provide funding in future budgets for programs 
     that show promise in these evaluations.

[[Page 32823]]


     Sense of Congress on the Air Force strategy for the 
         replacement of the aerial refueling tanker aircraft fleet
       The Senate amendment contained two provisions (secs. 143 
     and 146) that would express the sense of Congress on the Air 
     Force strategy for the replacement of the aerial refueling 
     tanker aircraft fleet. The new tanker has been called the 
     ``KC(X)''.
       (1) Section 143 would state the sense of Congress that the 
     Air Force should hold a full and open competition for KC(X) 
     and should take no action to limit the ability of the teams 
     seeking the contract from competing for the KC(X) contract.
       (2) Section 146 would state the sense of Congress that 
     tanker modernization is a vital national priority and that 
     Congress supported the Air Force strategy of buying new 
     tankers, upgrading and maintaining the remaining fleet of 
     tankers, and augmenting capability with aerial refueling fee-
     for-service.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees have included statement of managers language 
     in title X of this Act expressing the views of the conferees 
     on the multifaceted Air Force strategy to recapitalize and 
     augment the aerial refueling aircraft fleet.
     Sense of Congress regarding need to replace Army M109 155mm 
         self-propelled howitzer
       The House bill contained a provision (sec. 1052) expressing 
     the sense of Congress that the Army has not been timely in 
     procuring a replacement for the M109 self-propelled howitzer 
     and that the Army should transition to the Non-Line-of-Sight 
     Cannon (NLOS-C) as that replacement.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees reiterate congressional intent that the first 
     Future Combat Systems (FCS) manned ground vehicle fielded be 
     the NLOS-C. However, currently fielded armored vehicles, 
     including the M109 self-propelled howitzer, will have to be 
     maintained and sustained for the foreseeable future in those 
     Army and Army National Guard heavy brigade combat teams which 
     will not transition to the FCS structure. In that regard the 
     conferees support the Army's M109 Paladin Integrated 
     Management upgrade program. 

        T1TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION 

                             Budget Items 

     Research, Development, Test, and Evaluation overview
       The budget request included $75,117.2 million in Research, 
     Development, Test and Evaluation for the Department of 
     Defense.
       The House bill would authorize $73,476.3 million.
       The Senate amendment would authorize $74,718.1 million.
       The conferees agree to authorize $73,727.5 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 32824]]

     TH06DE07.110
     
      

[[Page 32825]]

                                 Army 

     Research, Development, Test, and Evaluation, Army overview
       The budget request included $10,589.6 million in Research, 
     Development, Test, and Evaluation, Army for the Department of 
     Defense.
       The House bill would authorize $10,057.5 million.
       The Senate amendment would authorize $11,328.0 million.
       The conferees agree to authorize $10,840.4 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 32826]]

     TH06DE07.111
     


[[Page 32827]]

     TH06DE07.112
     


[[Page 32828]]

     TH06DE07.113
     


[[Page 32829]]

     TH06DE07.114
     


[[Page 32830]]

     TH06DE07.115
     


[[Page 32831]]

     TH06DE07.116
     


[[Page 32832]]

     TH06DE07.117
     


[[Page 32833]]

     TH06DE07.118
     


[[Page 32834]]

     TH06DE07.119
     


[[Page 32835]]

     TH06DE07.120
     


[[Page 32836]]

     TH06DE07.121
     


[[Page 32837]]

     TH06DE07.122
     


[[Page 32838]]

     TH06DE07.123
     


[[Page 32839]]

     TH06DE07.124
     


[[Page 32840]]

     TH06DE07.125
     


[[Page 32841]]

     TH06DE07.126
     


[[Page 32842]]

     TH06DE07.127
     
      

[[Page 32843]]

     Wide-area persistent surveillance
       The budget request included a classified amount in PE 
     35206A for improvements to the Constant Hawk persistent 
     surveillance system.
       The House bill would approve the requested amount.
       The Senate amendment would authorize an additional $30.0 
     million to accelerate and broaden the scope of the Constant 
     Hawk system.
       The conferees agree to authorize the requested amount.
       The current deployment of the Army's Constant Hawk system 
     has proven the importance of large-area persistent 
     surveillance in the campaign against improvised explosive 
     device (IED) networks in Iraq. However, the coverage area is 
     limited, and the platform's endurance is also limited. The 
     system is designed to provide support only to the forensic 
     analysis mission.
       The Marine Corps is fielding a similar capability called 
     Angel Fire. Angel Fire is designed to provide real-time 
     support to ground force operations with improved sensor 
     resolution. The conferees agree that while these two systems 
     should eventually be merged into a single program with 
     improved capabilities, this merger must not hinder current 
     efforts to complete the fielding of either the Constant Hawk 
     or Angel Fire systems. The conferees also urge the Army and 
     Marine Corps to commit to integrating these systems in 
     accordance with the equipment and procedures required by Task 
     Force ODIN, and Army and Marine Corps ground forces. This 
     merger should be accomplished as soon as practicable.
       The conferees direct the Secretary of Defense to provide a 
     conceptual plan for merger of the Constant Hawk and Angel 
     Fire programs, which must include an assessment of the 
     intelligence, surveillance, and reconnaissance (ISR) impacts 
     of such a merger. The conferees also direct the Secretaries 
     of the Army and Navy to provide program management plans for 
     the Constant Hawk and Angel Fire programs, including 
     respective budget detail to the congressional defense and 
     intelligence committees within 60 days of enactment of this 
     Act. The conferees also direct the Secretary of Defense to 
     provide a study of future improvements to wide-area 
     persistent surveillance, including: an assessment of sensor 
     technology capabilities and limitations; an analysis of the 
     most suitable sensor platforms; an evaluation of the best 
     system architecture for collecting, sharing, and analyzing 
     sensor data; and analysis of the optimum use of wide-area 
     surveillance for defeating IED and other asymmetric threat 
     networks. The results of this study should be provided to the 
     congressional defense and intelligence committees within 180 
     days of enactment of this Act.


                                  Navy

     Research, Development, Test, and Evaluation, Navy overview
       The budget request included $17,075.5 million in Research, 
     Development, Test, and Evaluation, Navy for the Department of 
     Defense.
       The House bill would authorize $17,323.6 million.
       The Senate amendment would authorize $16,296.4 million.
       The conferees agree to authorize $16,980.7 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 32844]]

     TH06DE07.128
     


[[Page 32845]]

     TH06DE07.129
     


[[Page 32846]]

     TH06DE07.130
     


[[Page 32847]]

     TH06DE07.131
     


[[Page 32848]]

     TH06DE07.132
     


[[Page 32849]]

     TH06DE07.133
     


[[Page 32850]]

     TH06DE07.134
     


[[Page 32851]]

     TH06DE07.135
     


[[Page 32852]]

     TH06DE07.136
     


[[Page 32853]]

     TH06DE07.137
     


[[Page 32854]]

     TH06DE07.138
     


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     Threat D
       The budget request included $32.4 million in PE 64258N for 
     target systems development.
       The House bill would authorize $42.4 million, an increase 
     of $10.0 million, for a Threat D advanced cruise missile 
     target systems development.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $32.4 million in PE 64258N 
     for target systems development.
       The conferees are concerned about the limited effort that 
     the Navy has undertaken in developing test resources that can 
     adequately simulate emerging advanced cruise missile threats 
     to Navy platforms. The conferees are aware that the lack of 
     this test capability has been raised specifically by the 
     Director of Operational Test and Evaluation as potentially 
     impacting the operational testing of a number of major Navy 
     acquisition programs. The conferees encourage the Department 
     of Defense to program for adequate resources to ensure that 
     such cruise missile threats can be adequately simulated in a 
     timely manner, in order to avoid disruption to the 
     operational test and evaluation of major systems and to 
     ensure that such systems are operationally suitable and 
     effective at the time of deployment. 


                               Air Force 

     Research, Development, Test, and Evaluation, Air Force 
         overview
       The budget request included $26,711.9 million in Research, 
     Development, Test, and Evaluation, Air Force for the 
     Department of Defense.
       The House bill would authorize $25,739.0 million.
       The Senate amendment would authorize $25,582.0 million.
       The conferees agree to authorize $25,692.5 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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     Global positioning system III
       The budget request included $587.2 million for global 
     positioning system III (GPS III).
       The House bill would authorize $437.2 million in PE63421F 
     for GPS III.
       The Senate amendment would authorize $587.2 million, the 
     amount of the budget request.
       The conferees agree to authorize $487.2 million, a 
     reduction of $100.0 million below the budget request.
       The conferees fully support the need for the GPS III 
     program. There are indications, however, that challenges 
     between the development and acquisition plans for space 
     vehicles, ground systems, and user equipment may be 
     increasing. The conferees are concerned that GPS III space 
     systems may be ahead of the development and acquisition plans 
     for ground systems and user equipment. To avoid this 
     potential disconnect the conferees urge the Department of 
     Defense (DOD) and the Air Force to request adequate funding 
     to keep the ground operational control systems and space 
     segments fully synchronized and to support timely development 
     and fielding of the user equipment.
       The block approach adopted by the GPS III program office is 
     a good step toward reducing technical risks and ensuring that 
     the program stays on budget and schedule. However, the 
     conferees are concerned that capabilities like spot-beams and 
     cross-links may not be properly phased to support the 
     warfighter requirements or may no longer be required. The 
     conferees urge the DOD and the Secretary of the Air Force to 
     examine the GPS acquisition strategy and warfighter 
     requirements to determine the appropriate next-generation 
     capabilities to include in each subsequent block to meet user 
     needs, while maintaining schedule, cost, and appropriate 
     level of technical risk.
       The GPS satellite constellation provides accurate position, 
     navigation, and timing (PNT) to support military, civil, and 
     commercial activities and enterprises throughout the United 
     States and the world. The conferees note the budget request 
     included funds for other PNT capabilities and augmentations 
     such as the GPS extension program, commonly known as iGPS. 
     The conferees are concerned that these investment decisions 
     are being made without an integrated PNT architecture. The 
     conferees direct the DOD, as one of the co-chairs of the PNT 
     Executive Committee, to submit a report to the congressional 
     defense committees that includes future PNT-related 
     investments for the next 5 years and an integrated PNT 
     architecture plan. The report should be submitted within 6 
     months from the date of enactment of this Act.
     Transformational communication satellite system
       The budget request included $964.0 million in PE63845F for 
     the transformational communication satellite system (TSAT).
       The House bill would authorize the budget request.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $814.0 million in PE63845F 
     for the TSAT, a reduction of $150.0 million below the budget 
     request. The conferees fully support the TSAT program and 
     have made this reduction with no prejudice to the program.
     Space Radar
       The budget request included funds for the Space Radar 
     program, but the amount requested is classified.
       The House bill would authorize $30.0 million below the 
     requested amount in a classified line item for Space Radar.
       The Senate amendment would authorize $20.0 million in a 
     classified line item and would authorize $80.0 million in PE 
     63858F for a Space Radar technology study.
       The conferees agree to authorize funding for Space Radar 
     capabilities in a classified line item.
       The conferees continue to support space-based radar 
     capabilities to meet both warfighter and intelligence 
     community requirements. However, the conferees remain 
     concerned about the overall approach to radar capabilities in 
     space and, in particular, about the Space Radar program of 
     record. These concerns include requirements scope, technology 
     risk, the acquisition plan, and the affordability of a space 
     radar program. The conferees continue to strongly support a 
     joint program and a joint approach to requirements 
     development, concept of operations, and tasking, processing, 
     and exploitation regimes.
       The conferees are aware of several alternative space-based 
     radar concepts that have been proposed over the past year 
     that could lower technical risk and development costs. In 
     addition, the administration has recently proposed a new, 
     incremental acquisition strategy for the Space Radar program 
     designed to reduce program risk. As a result of these 
     developments, the conferees direct the Secretary of Defense 
     and the Director of National Intelligence to prepare a plan 
     for the analysis of space-based radar alternatives and a plan 
     for expenditure of funds for fiscal year 2008. Of the amount 
     authorized by the conferees for fiscal year 2008, only $40.0 
     million shall be available for expenditure until 30 days 
     after the submission of this plan for an analysis of 
     alternatives.
       The plan for an analysis of alternatives should bound the 
     options related to space-based radar technology and system 
     alternatives. It must consider all programs and activities 
     (at all levels of classification) that can contribute to the 
     missions that space-based radar systems would support. Once 
     the options are bounded, the plan should outline a strategy 
     for evaluating the space-based radar options. The plan should 
     describe how the Department of Defense proposes to allocate 
     the remaining fiscal year 2008 funding to achieve the 
     objectives described below and to support any other space-
     based radar related activities. The plan for an analysis of 
     alternatives should be submitted to the congressional defense 
     and intelligence committees by March 1, 2008.
       The plan for an analysis of space-based radar alternatives 
     should be a roadmap for evaluating the options for space and 
     ground segments. The conferees expect the plan to identify 
     the schedule and resources necessary to evaluate: the 
     maturity of the various radar technologies and design 
     concepts; system and architecture performance; requirements; 
     technology producibility; industry capacity; cost and risk 
     estimates for the proposed options; proposed acquisition 
     plans; concepts of operations; how other programs can be 
     leveraged to meet requirements; and any other matters 
     identified by the Secretary of Defense and the Director of 
     National Intelligence.
       The conferees expect that the Department will perform the 
     work outlined in the plan for an analysis of space-based 
     radar alternatives before establishing a new program baseline 
     for space radar capabilities and that no acquisition decision 
     will be made in fiscal year 2008.
       Additional direction and information is contained in the 
     classified annex to this report.
     Alternate infrared satellite system
       The budget request included $230.9 million in PE64443F for 
     the alternative infrared satellite system (AIRSS).
       The House bill would authorize a decrease of $200.9 million 
     in PE64443F for AIRSS.
       The Senate amendment would authorize no funding for AIRSS.
       The conferees agree to authorize $75.9 million for AIRSS in 
     PE64443F.
       The conferees understand the Space Based Infrared System 
     (SBIRS) geosynchronous (GEO) program has experienced 
     additional problems over the course of the summer. 
     Nevertheless, the conferees are still convinced that the 
     AIRSS program as it was described in the budget request is 
     not the backup program that was originally conceived to serve 
     as an alternative to SBIRS as directed in the SBIRS 
     recertification acquisition decision memorandum. In addition, 
     the current AIRSS concept is not a suitable competitor for 
     the fourth SBIRS GEO satellite.
       The conferees acknowledge that a follow-on program for 
     SBIRS will be needed in the future and believe that the AIRSS 
     program should focus on maturing technology and focus on the 
     next generation of infrared sensor technology. The conferees 
     expect the Air Force to develop AIRSS as a follow-on program 
     at an appropriate time in the future. To that end, the 
     conferees expect the budget request for AIRSS for fiscal year 
     2009 to include a clear plan to support research and 
     development on technologies that could be evolved into the 
     next generation of non-imaging infrared systems.
       Recognizing that a backup plan may still be needed for 
     SBIRS GEO, the conferees direct the Air Force to study the 
     cost and feasibility of integrating a SBIRS highly elliptical 
     orbit sensor onto a GEO satellite bus. The results of this 
     study should be provided with the fiscal year 2009 budget 
     request. 


                             Defense-wide 

     Research, Development, Test, and Evaluation, Defense-wide 
         overview
       The budget request included $20,559.9 million in Research, 
     Development, Test, and Evaluation, Defense-wide for the 
     Department of Defense.
       The House bill would authorize $20,176.0 million.
       The Senate amendment would authorize $21,331.5 million.
       The conferees agree to authorize $20,033.6 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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     National defense education Program
       The budget request included $44.4 million in PE61120D8Z for 
     the National Defense Education Program (NDEP).
       The House bill would authorize the budget request.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $44.4 million in 
     PE61120D8Z for NDEP.
       The conferees note that the budget request included $13.0 
     million for Pre-engineering Modules under NDEP, but lacked 
     sufficient justification for that level of funding. 
     Therefore, the conferees direct that funding for NDEP be 
     executed as follows: $3.5 million for Pre-engineering 
     Modules; $6.5 million for Materials World Modules; $27.0 
     million for Science, Mathematics, and Research for 
     Transformation; and $7.4 million for National Security 
     Science and Engineering Faculty Fellowships. The conferees 
     direct the Director of Defense Research and Engineering to 
     continue appropriate efforts to support science and 
     mathematics education, including at the K-12 level, and 
     recommend that the Director provide clear objectives and 
     rationale for future funding requests for new programs in 
     this area. 
     Airborne Laser
       The budget request included $548.8 million in PE63883C for 
     the Airborne Laser (ABL) boost-phase missile defense 
     technology demonstration program.
       The House bill would authorize $298.9 million in PE63883C, 
     a reduction of $250.0 million.
       The Senate amendment would authorize $348.8 million in 
     PE63883C, a reduction of $200.0 million.
       The conferees agree to authorize $513.8 million in 
     PE63883C, a reduction of $35.0 million.
       The conferees note that the ABL program remains a high risk 
     technology development and demonstration program that is 
     seeking to determine the technical feasibility of using an 
     airborne chemical laser to destroy ballistic missiles in the 
     boost-phase of their flight, within the first few minutes 
     after launch.
       The ABL program has suffered numerous delays and cost 
     increases since its inception in 1996, and it is currently 
     estimated that it will cost $5.1 billion from inception to 
     the completion of the first test to shoot down a target 
     missile, currently scheduled for 2009. The original cost 
     estimate to complete the first shoot-down test was $1.0 
     billion, which indicates the magnitude of cost growth in the 
     ABL program.
       Even if it is successful, the first shoot-down test will 
     not determine whether the ABL could be made operationally 
     effective or affordable. There are inherent operational 
     constraints in the ABL concept that would have to be 
     overcome. Much more additional testing would be required to 
     demonstrate operational capability and military utility. 
     Furthermore, even if the follow-on testing were successful, 
     the system would likely not provide an operational capability 
     until 2018 or later.
       The conferees remain concerned that the requested and 
     planned level of funding for the ABL program comes at the 
     expense of other near-term capabilities specified in section 
     223 of the John Warner National Defense Authorization Act for 
     Fiscal Year 2007 (Public Law 109-364), which places a 
     priority on the development, testing, fielding, and 
     improvement of effective near-term missile defense 
     capabilities.
       The conferees believe that missile defense resources and 
     effort need to be focused and prioritized on those near-term 
     effective capabilities that can meet our combatant 
     commanders' current operational requirements to defend 
     against existing missile threats, particularly those short- 
     and medium-range missiles that can strike forward-deployed 
     U.S. forces, allies, and other friendly nations in various 
     regions.
       It remains unclear whether the ABL system will be 
     affordable. The Congressional Budget Office has made a 
     preliminary estimate that the ABL program could cost as much 
     as $36.0 billion to develop, procure, and operate a fleet of 
     seven aircraft for 20 years. This would be a huge investment 
     in a fleet of seven aircraft that may not be able to provide 
     an operationally effective capability.
       The conferees are also concerned about the number of ABL 
     aircraft that may be required to maintain a single 
     operational ABL aircraft on combat patrol, known as an orbit. 
     According to the Department of Defense, 3 to 5 ABL aircraft 
     would be required to maintain a single orbit. Additionally, 
     to provide full coverage against geographically large 
     countries may require three or more ABL aircraft operating 
     simultaneously, which could require a total force of 15 or 
     more aircraft. That would add billions of dollars to the cost 
     of the program.
       By comparison, investing that level of funding in near-term 
     capabilities like the Aegis Ballistic Missile Defense (BMD) 
     program, the Terminal High Altitude Area Defense program, and 
     the Patriot PAC-3 program would provide a considerable 
     increase in the ability of our combatant commanders to meet 
     their operational requirements for defending our forward-
     deployed forces and our allies and friends against existing 
     missile threats.
       As the ABL program proceeds toward the planned shoot-down 
     test in 2009, the conferees believe the program should 
     receive thorough independent review, as recommended by the 
     Government Accountability Office in its March 2007 report, 
     ``Defense Acquisitions: Missile Defense Acquisition Strategy 
     Generates Results but Delivers Less at a Higher Cost.'' The 
     conferees strongly urge the Department of Defense to 
     commission an independent review of the technical, 
     operational, cost, and effectiveness aspects of the proposed 
     ABL system, particularly in comparison to the proposed 
     Kinetic Energy Interceptor program, and the Aegis BMD system 
     using the Standard Missile-3 Block IIA interceptor in an 
     ascent-phase capacity. 
     Aegis Ballistic Missile Defense
       The budget request included $1.1 billion in PE63892C for 
     the sea-based Aegis Ballistic Missile Defense (BMD) system.
       The House bill would authorize an increase of $78.0 million 
     in PE63892C.
       The Senate amendment would authorize an increase of $75.0 
     million in PE63892C.
       The conferees agree to authorize an increase of $65.0 
     million in PE63892C.
       The conferees note that the Missile Defense Agency (MDA) 
     recently informed Congress that the Aegis BMD program will 
     experience a major funding shortfall in its fiscal year 2008 
     program. This shortfall has caused MDA to modify its plans 
     for Aegis BMD for fiscal year 2008, which include, among 
     other things, delaying the introduction of the Standard 
     Missile-3 (SM-3) Block IB missile by a year, deferring the 
     upgrades of four Aegis BMD ships until 2010, and possibly 
     reducing the number of flight tests. The MDA had previously 
     told Congress that no additional money was needed for the 
     Aegis BMD program.
       As Congress made clear in section 223 of the John Warner 
     National Defense Authorization Act for Fiscal Year 2007 
     (Public Law 109-364), 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. Furthermore, in testimony 
     before Congress earlier this year, combatant commanders noted 
     the importance of attaching priority to deploying missile 
     defense systems like Aegis BMD, which are designed to provide 
     a wide-area defense capability against existing short- and 
     medium-range ballistic missile threats to our forward-
     deployed forces, allies, and other friendly nations.
       The conferees urge MDA to address the funding shortfall by 
     identifying funds to ``buy back'' schedule, with priority 
     placed on resolving technical issues with the SM-3 Block IA 
     missile program, returning the SM-3 Block IB missile to its 
     previous schedule, and ensuring that all original test 
     objectives for fiscal year 2008 are met.
       The conferees direct that no later than January 31, 2008, 
     MDA provide a report to the congressional defense committees 
     detailing the specific reasons for the funding shortfall in 
     the Aegis BMD program, its plan for identifying funds to 
     place the program back on schedule, and its plans for 
     ensuring that the Aegis BMD program is fully funded in the 
     future.
       Over the past several years, Congress has been clear on the 
     importance it attaches to the Aegis BMD program and other 
     near-term missile defense systems. The conferees expect the 
     Department's fiscal year 2009 budget request to reflect that 
     priority. 
     Prompt global strike
       The budget request included a total of $175.4 million for 
     the Conventional Trident Modification (CTM), with $126.4 
     million in hard and deeply buried target defeat systems, PE 
     64327N; $36.0 million in Trident II modifications, Weapons 
     Procurement, Navy (WPN) line 1; and $13.0 million in 
     strategic systems missile equipment, Other Procurement, Navy 
     (OPN) line 108. The budget request also included $32.8 
     million for the Common Aero Vehicle (CAV) in PE 64856F.
       The House bill would authorize a total of $142.0 million 
     for the CTM, with $126.4 million in hard and deeply buried 
     target defeat systems, PE 64327N; $6.0 million in Trident II 
     modifications, WPN line 1; and $6.0 million in strategic 
     systems missile equipment, OPN line 108. The House would 
     authorize the budget request for the CAV.
       The Senate would authorize no funding for the CTM, but 
     would authorize $208.2 million for prompt global strike (PGS) 
     concepts in PE 65104D8Z. The Senate would authorize no 
     funding for the CAV in PE 64856F but would authorize the 
     budget request for the CAV in PE 65104D8Z as part of PGS 
     concepts.
       The conferees agree to authorize $100.0 million in PE 
     64165D8Z for PGS in a new budget line that includes funding 
     for the CAV. No funds are authorized for the CTM program. A 
     further discussion of PGS is included elsewhere in this 
     conference report.
     Joint command and control
       The budget request included $70.3 million in PE33158K for 
     the joint command and control program.
       The House bill would authorize a decrease of $20.0 million 
     in PE33158K for net enabled command and control, due to 
     activity delays that raised concerns over the ability of the 
     program to execute the full fiscal year 2008 request.

[[Page 32889]]

       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $58.3 million, a decrease 
     of $12.0 million in PE33158K. The conferees recognize there 
     has been improvement in the execution of the program, and 
     remain supportive of the program's technical approach. The 
     conferees are supportive of the program's efforts to drive 
     the Department of Defense towards a service-oriented 
     architecture approach, and the use of a federated development 
     and certification environment to accelerate the process of 
     testing and certifying new capabilities. The conferees 
     believe that this program has the potential to dramatically 
     influence how the Department develops and fields software-
     intensive systems, and provide significant new capabilities 
     in shorter time frames.


                          Test and Evaluation

     Operational, Test, and Evaluation, Defense overview
       The budget request included $180.3 million in Operational, 
     Test, and Evaluation, Defense for the Department of Defense.
       The House bill would authorize $180.3 million.
       The Senate amendment would authorize $180.3 million.
       The conferees agree to authorize $180.3 million.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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                       Items of Special Interest 

     Aerial Common Sensor
       The conferees note that the restructured Aerial Common 
     Sensor (ACS) program represents the Army's second and the 
     Navy's third attempt to replace the Aerial Reconnaissance-
     Low, the Guardrail Common Sensor, and the EP-3 systems. 
     Repeated acquisition failures waste scarce investment 
     resources and deprive the combatant commands of needed 
     capabilities.
       The repeated setbacks demonstrate the need to maintain 
     discipline with respect to requirements and acquisition 
     management for the Army and Navy ACS programs.
       Given the expenditures of the previously joint ACS program, 
     the conferees stress the need for energetic oversight of both 
     the Army and Navy ACS efforts. Therefore, the conferees 
     direct both the Army and Navy ACS program managers to submit 
     to the congressional defense and intelligence committees an 
     Acquisition Program baseline, System Development and 
     Demonstration exit criteria, and a Capability Development 
     Document for each program no later than July 1, 2008. 
     Missile defense test and targets program
       The conferees note the importance of the test and targets 
     program of the Missile Defense Agency (MDA) for the 
     development and success of the ballistic missile defense 
     program. Congress has enacted legislation concerning the 
     testing program repeatedly, and has stressed the need for 
     robust and operationally realistic testing.
       For example, section 234 of the Ronald W. Reagan National 
     Defense Authorization Act for 2005 (Public Law 108-375) 
     requires operationally realistic testing of the Ballistic 
     Missile Defense System (BMDS), and section 234 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163) requires test and evaluation plans to 
     characterize the operational capability of each block of the 
     BMDS. In section 234 of the National Defense Authorization 
     Act for Fiscal Year 2002 (Public Law 107-107), Congress 
     included a requirement for ``sufficient schedule flexibility 
     and expendable test assets, including missile interceptors 
     and targets, to ensure that failed or aborted tests can be 
     repeated in a prudent, but expeditious manner.'' It also 
     included specific requirements for the Ground-based Midcourse 
     Defense (GMD) program ``to establish a flight-test capability 
     of launching not less than three missile defense interceptors 
     and not less than two ballistic missile targets to provide a 
     realistic test infrastructure.''
       Congress has also authorized additional resources for 
     enhanced testing. In the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364), 
     Congress authorized an increase of $225.0 million for 
     enhancements to the testing program of the GMD program, 
     including: $140.0 million for enhanced testing and to 
     increase the pace of GMD flight testing; $60.0 million for 
     efforts to accelerate the ability of the GMD system to 
     conduct concurrent test and operations; and $25.0 million for 
     advance procurement of an additional six flight test 
     missiles.
       In the National Defense Authorization Act for Fiscal Year 
     2006 (Public Law 109-163), Congress authorized an increase of 
     $100.0 million for the GMD program to implement the 
     recommendations of the MDA Independent Review Team and the 
     Mission Readiness Task Force to enhance the GMD testing 
     program.
       Despite these repeated and consistent efforts to improve 
     the missile defense testing program, and to make clear the 
     requirement for robust, operationally realistic testing that 
     demonstrates the operational capabilities of our missile 
     defense systems and provides confidence in the systems, the 
     conferees note with disappointment that the Missile Defense 
     Agency has failed to ensure an adequate testing program.
       The conferees note that MDA has accomplished successful 
     flight tests, including intercept tests, over the last 5 
     years in each of the near-term missile defense programs, 
     namely the Patriot PAC-3 system, the Aegis BMD system, the 
     Terminal High Altitude Area Defense (THAAD) system, and the 
     GMD system. While these test successes represent significant 
     accomplishments in extremely complex weapon systems, their 
     testing programs have also all experienced delays and 
     failures, some because of shortcomings in the testing and 
     targets program. Much more testing remains to be done, and 
     the MDA test and targets program needs to be managed so as to 
     fully support these high priority near-term programs.
       One of the most troubling aspects of the testing program is 
     the failure of MDA to ensure an adequate number of reliable 
     targets for the various flight test programs. Over the past 2 
     years, the conferees have become concerned with the health of 
     the MDA targets program. The reliability and availability of 
     the targets program has come into question as targets failed 
     during two tests, target anomalies occurred during other 
     tests, and the program was unable to deliver targets on 
     schedule or within budget, thus forcing MDA to reduce the 
     flight test schedule of the THAAD system.
       Target availability has become the pacing item in the 
     flight test program, and a target failure in a GMD test in 
     May of 2007 resulted in MDA completing only one GMD test 
     during the year. Three flight tests were removed from the 
     THAAD testing program because targets were not funded. These 
     are serious problems. Some appear due to MDA not budgeting 
     sufficient resources for targets, and some appear due to 
     insufficient management attention.
       The conferees are also concerned that MDA's planned future 
     Flexible Target Family (FTF), a program designed to increase 
     commonality in target components and subsystems thus reducing 
     costs and production times, is proceeding at a slower pace 
     and at greater cost than expected.
       For these reasons, the conferees request that the 
     Government Accountability Office (GAO) initiate a review of 
     the MDA targets program. The review should include the 
     following elements:
      (1) Determine the number of target failures and anomalies 
     that have occurred since 2002, their causes, and their impact 
     on the BMDS;
      (2) Assess whether targets are being delivered on time and 
     if not, the causes of late deliveries;
      (3) Assess how MDA estimates the cost of targets and recoups 
     those costs from BMDS elements;
      (4) Assess MDA's risk management and risk reduction 
     strategies for the targets program;
      (5) Determine whether MDA's targets program is adequately 
     funded over the future-years defense program to deliver 
     reliable targets on schedule to support the planned testing 
     program;
      (6) Determine the status of MDA's effort to establish an 
     FTF, including any issues that have slowed its progress, and 
     whether the FTF program is likely to correct any of the 
     problems that have occurred in the targets program; and
      (7) Make any recommendations for improvements to the MDA 
     targets program.
       The GAO should work with the Committees on Armed Services 
     of the Senate and the House of Representatives to define a 
     reporting timeline for this review.
       The conferees believe that MDA should consider, plan, and 
     budget for a robust testing program--including an adequate 
     number of reliable targets--that includes salvo launches, 
     multiple target engagements, multi-mission tests, liquid 
     target tests, and tests that will stress the systems to 
     determine how they would perform under real-world operational 
     conditions. The conferees plan to monitor the testing and 
     targets program carefully in the coming year.
     NSA acquisition management
       The Senate report accompanying S. 1547 (S. Rept. 110-77) 
     directs a series of actions regarding the National Security 
     Agency's (NSA) transformation programs. The conferees endorse 
     this direction, but with two modifications.
       The Senate report directs that the Director of Operational 
     Test and Evaluation (DOT&E) exercise oversight over all major 
     elements of the NSA's Transformation 3.0 activities. The 
     conferees understand that the Joint Interoperability Test 
     Command (JITC) is already supporting the NSA's test and 
     evaluation activities, and directs that JITC be substituted 
     for the DOT&E in complying with the direction in the Senate 
     report.
       The Senate report also mandates that the NSA's 
     transformation programs may not proceed to Milestone B 
     without certain certifications to Congress. The conferees 
     agree that this language should be understood to mean that 
     the certifications required can be prepared and issued as 
     part of the Milestone B approval process.

              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 2008 funding levels for 
     all research, development, test, and evaluation accounts.
       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 $11,504.3 million for defense science and 
     technology programs.
       The Senate amendment contained a similar provision (sec. 
     202) that would authorize $11,203.3 million for defense 
     science and technology programs.
       The conferees agree to include a provision that would 
     authorize $10,913.9 million for defense science and 
     technology programs.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     Operational test and evaluation of Future Combat Systems 
         network (sec. 211)
       The House Bill contained a provision (sec. 211) that would 
     require an operational test and evaluation of the Future 
     Combat Systems (FCS) network in a realistic environment 
     simulating operational conditions. No funds could be 
     obligated for low-rate initial production or full-rate 
     production of FCS manned ground vehicles until 60 days after 
     the submission of a required report on the testing by the 
     Director of Operational Test and Evaluation (DOT&E). The 
     provision would exclude the Non-Line-of-Sight Cannon from the 
     funding prohibition.

[[Page 32892]]

       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify 
     that the test and evaluation of the network would be 
     conducted in accordance with a FCS Test and Evaluation Master 
     Plan approved by the DOT&E, that the test and evaluation 
     would be conducted using prototype equipment, sensors, and 
     software for the FCS network, and that the prohibited funding 
     subject to this provision would not include funds for advance 
     procurement items for FCS manned ground vehicles.
       The conferees do not intend to require any additional 
     testing and evaluation beyond that deemed necessary by the 
     DOT&E to determine operational effectiveness and suitability 
     of the network. The conferees also do not intend for that 
     testing and evaluation to be conducted under any other 
     conditions or in any other environment than that provided by 
     the location or locations specified in an approved Test and 
     Evaluation Master Plan, and within the safety, legal, and 
     electromagnetic interference constraints of the approved 
     testing location.
       The conferees intend that the testing be conducted within 
     the development and resource constraints of the FCS program. 
     Additionally, funding for FCS Spin Outs, which do not include 
     manned ground vehicles as currently defined by the Army, 
     would not be prohibited under this provision.
     Limitation on use of funds for systems development and 
         demonstration of Joint Light Tactical Vehicle program 
         (sec. 212)
       The House bill contained a provision (sec. 212) that would 
     restrict the obligation of authorized funds for the Joint 
     Light Tactical Vehicle (JLTV) program beyond its Design 
     Readiness Review until the congressional defense committees 
     receive a progress report on the program's compliance with 
     section 2366a of title 10, United States Code.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     limit the obligation of authorized funds for the JLTV program 
     beyond the Milestone B decision and system design and 
     demonstration (SDD) phase until the congressional defense 
     committees receive and review the Milestone Decision 
     Authority's required certifications that comply with section 
     2366a of title 10, United States Code.
       The conferees strongly support the JLTV program, but are 
     concerned that the JLTV program may enter the acquisition 
     phase of SDD with insufficient knowledge of technology 
     maturity, requirements, and affordability.
     Requirement to obligate and expend funds for development and 
         procurement of a competitive propulsion system for the 
         Joint Strike Fighter (sec. 213)
       The House bill contained a provision (sec. 213) that would 
     require the Department of Defense to develop a competitive 
     propulsion system for the Joint Strike Fighter (JSF) 
     aircraft. The House language was not explicit on the issue of 
     permitting a winner-take-all down select at the time the 
     alternate engine is ready for production.
       The Senate amendment contained a similar provision (sec. 
     213). The Senate provision would explicitly require, however, 
     that competition continue throughout the production phase of 
     the JSF program.
       The conferees agree to include language that would require 
     the Department of Defense to: (1) develop a competitive 
     propulsion system for the JSF aircraft; and (2) continue 
     competition for the propulsion system throughout the 
     production phase of the JSF program.
     Limitation on use of funds for defense-wide manufacturing 
         science and technology program (sec. 214)
       The House bill contained a provision (sec. 214) that would 
     restrict the use of funds for the manufacturing science and 
     technology program, unless competitive procedures were used 
     in project awards; projects were carried out in a manner that 
     was consistent with statute and directives; and a formal 
     technology transition agreement was executed for each 
     project.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Department of Defense to solicit competitive proposals for 
     funding under the program, and would replace the requirement 
     for a formal technology transition agreement with a 
     requirement for an implementation plan.
       The conferees believe that the manufacturing science and 
     technology program should invest in higher risk efforts aimed 
     more at developing next generation or cross-cutting 
     capabilities than those currently being pursued in the 
     manufacturing technology programs of the services and 
     agencies.
     Advanced sensor applications program (sec. 215)
       The Senate amendment contained a provision (sec. 211) that 
     would require that $20.0 million in funds authorized and 
     appropriated for the Foreign Materials Acquisition and 
     Exploitation program and for activities of the Office of 
     Special Technology be allocated to the Advance Sensor 
     Applications Program (ASAP). That provision would have also 
     required that management oversight of the program be 
     transferred to the Defense Threat Reduction Agency.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     $13.0 million in funds authorized and appropriated for 
     activities of the Intelligence Systems Support Office and 
     $5.0 million of operation and maintenance funds from the 
     office of the Director of Naval Intelligence be allocated to 
     the ASAP program. The modified provision would also require 
     that the management oversight of the program remain within 
     the office of the Under Secretary of Defense for Intelligence 
     until certain conditions as specified in the classified annex 
     to this report are met.
     Active protection systems (sec. 216)
       The Senate amendment contained a provision (sec. 212) that 
     would require comparative live-fire tests and a comprehensive 
     assessment of active protection systems.
       The House bill contained no similar provision.
       The House recedes with an amendment that would emphasize 
     the need to perform live-fire tests of systems that are 
     suitable for use on tactical wheeled vehicles, especially 
     light tactical wheeled vehicles, and specify that the source 
     of funding for the test should be the Joint Improvised 
     Explosive Device Defeat Fund.

                 Subtitle C--Ballistic Missile Defense

     Participation of Director, Operational Test and Evaluation, 
         in missile defense test and evaluation activities (sec. 
         221)
       The House bill contained a provision (sec. 221) that would 
     require that the Director of Operational Test and Evaluation 
     have access to certain operational test and evaluation 
     information of the Missile Defense Agency pertaining to any 
     major defense acquisition program.
       The Senate amendment contained a similar provision (sec. 
     234) that would amend title 10, United States Code, to ensure 
     that the Director of Operational Test and Evaluation has 
     access to missile defense test and evaluation information of 
     the Missile Defense Agency.
       The House recedes with a clarifying amendment.
     Study on future roles and missions of the Missile Defense 
         Agency (sec. 222)
       The House bill contained a provision (sec. 222(d), (e), 
     (f)) that would require an independent study of the future 
     structure, roles, and missions of the Missile Defense Agency, 
     including its relationship with other entities of the 
     Department of Defense. The study would also make 
     recommendations on the future structure, roles, and missions 
     of the Missile Defense Agency.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would add several 
     matters to be included in the study, including: the operation 
     and sustainment of missile defenses; the missile defense 
     acquisition process; the missile defense requirements 
     process; and the transition and transfer of missile defense 
     capabilities to the military departments. The Senate 
     amendment would also clarify the scope of the recommendations 
     to be included in the study.
     Budget and acquisition requirements for Missile Defense 
         Agency activities (sec. 223)
       The House bill contained a provision (sec. 222(a), (b), 
     (c)) that would require the Missile Defense Agency (MDA) to 
     request operation and maintenance (O&M) funds for any 
     operation and support activities in its fiscal year 2009 
     budget request. It would also require MDA to submit a plan, 
     no later than March 1, 2008, for transitioning MDA from using 
     research, development, test, and evaluation (RDT&E) funds for 
     missile defense fielding activities to using procurement 
     funds for such activities. The provision would also require 
     an independent study of the future roles and missions of MDA.
       The Senate amendment contained a similar provision (sec. 
     233) that would require MDA, starting with its budget 
     submission for fiscal year 2009, to request separate amounts 
     for RDT&E, procurement, O&M, and military construction. The 
     provision would also establish objectives and requirements 
     for improving transparency, accountability, and oversight of 
     MDA acquisition activities.
       The House recedes with an amendment that would combine the 
     budget and acquisition provisions of the two bills to 
     establish future budget and acquisition requirements for MDA. 
     The issue of an independent study of the future roles and 
     missions of MDA is described elsewhere in this report.
       The agreed provision would require MDA to revise its budget 
     structure to transition to the use of all the normal 
     categories of funding in fiscal year 2010 (RDT&E, 
     procurement, O&M, and military construction), instead of 
     using exclusively RDT&E funds for all activities. In fiscal 
     year 2009 the MDA budget request would include, in addition 
     to RDT&E funds, military construction funds and procurement 
     funds for long lead items, including for Terminal High 
     Altitude Area Defense firing units 3 and 4, and for Standard 
     Missile-3 Block IA interceptors. The provision would provide 
     defined authority for

[[Page 32893]]

     MDA to use RDT&E funds in fiscal year 2009 for fielding of 
     missile defense capabilities previously approved by Congress.
       The provision would direct MDA to submit to Congress by 
     March 1, 2008, its plan to transition from using exclusively 
     RDT&E funding to using procurement, O&M, military 
     construction, and RDT&E funds, as well as its plan for 
     transitioning from incremental funding to full funding in 
     fiscal years after fiscal year 2010. The conferees note that 
     over the long term, it is likely more cost-effective and less 
     expensive to fully fund assets than to fund them 
     incrementally over several years.
       The conferees are aware that the missile defense 
     capabilities developed and fielded by MDA have been funded on 
     an incremental funding basis, using RDT&E funds, since 2002. 
     As MDA transitions from exclusively RDT&E funding to 
     procurement and other funding, the conferees understand that 
     it will take time for MDA to transition from incremental 
     funding to full funding of fielded capabilities. 
     Consequently, the conference agreement would provide MDA with 
     the authority to use procurement funds for fiscal years 2009 
     and 2010 to field missile defense capabilities on an 
     incremental funding basis, without any requirement for full 
     funding.
       The conferees understand that MDA may seek to use 
     incremental funding after fiscal year 2010 to continue 
     fielding specific missile defense capabilities. Congress will 
     consider a request for additional authority for incremental 
     funding of a specific program or capability in fiscal years 
     after 2010 if the Department of Defense makes such a request 
     in a future budget request. The conferees caution the 
     Department that this additional authority will be considered 
     on a limited, case-by-case basis, and expect that future 
     missile defense programs will be funded in a manner more 
     consistent with other acquisition programs of the Department 
     of Defense.
       The conferees expect MDA to continue to place high priority 
     attention and resources on fielding the near-term missile 
     defense capabilities previously approved by Congress, namely 
     Ground-based Interceptors, the Aegis Ballistic Missile 
     Defense program and its Standard Missile-3 interceptors, and 
     the Terminal High Altitude Area Defense program, and to make 
     every effort to keep these programs on schedule.
     Limitation on use of funds for replacing warhead on SM-3 
         Block IIA missile (sec. 224)
       The House bill contained a provision (sec. 223) that would 
     prohibit the use of funds authorized to be appropriated in 
     this Act to replace the currently planned unitary warhead for 
     the Standard Missile-3 (SM-3) Block IIA interceptor missile 
     with a multiple kill vehicle (MKV) warhead until after the 
     Secretary of Defense certifies that two conditions have been 
     met: (1) the United States and Japan have reached agreement 
     to replace the unitary kill vehicle with an MKV; and (2) 
     replacing the unitary kill vehicle on the SM-3 Block IIA 
     missile with an MKV will not delay the expected deployment 
     date of that SM-3 missile.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees note that the Missile Defense Agency (MDA) 
     has indicated an interest in replacing the unitary kill 
     vehicle development program, which is specified in the 
     agreement with Japan, with a new MKV development program. 
     This would have undermined the agreed program of cooperation 
     between the United States and Japan on joint development of 
     the SM-3 Block IIA interceptor missile. It is important to 
     support the joint development program in accordance with the 
     agreed program of record, which currently specifies a unitary 
     kill vehicle.
       This provision does not restrict the MDA from conducting 
     research, development, analysis, or testing of MKV 
     technologies, including those which could be used in the 
     future with the SM-3 Block IIA missile. It also does not 
     restrict MDA from conducting analysis and discussions with 
     Japanese officials to consider the possibility of including 
     MKV on the SM-3 Block IIA.
     Extension of Comptroller General assessments of ballistic 
         missile defense programs (sec. 225)
       The House bill contained a provision (sec. 224) that would 
     extend by 2 years the period for which the Government 
     Accountability Office (GAO) would review the programs of the 
     Missile Defense Agency.
       The Senate amendment contained a similar provision (sec. 
     235) that would extend by 5 years the period for which the 
     GAO would review the programs of the Missile Defense Agency.
       The House recedes.
       The conferees note that the annual reviews and reports of 
     the GAO on missile defense programs have proven very useful 
     to Congress in providing detailed oversight and 
     recommendations. The conferees value the work of the GAO, and 
     note the importance of the Department of Defense and the 
     Missile Defense Agency providing information to GAO in a 
     timely and responsive manner to facilitate their review of, 
     and reporting to Congress on, ballistic missile defense 
     programs.
     Limitation on availability of funds for procurement, 
         construction, and deployment of missile defenses in 
         Europe (sec. 226)
       The House bill contained a provision (sec. 225) that would 
     require an independent assessment of the proposed deployment 
     of Ground-based Midcourse Defense interceptors and associated 
     radars in Europe, and would require an assessment of 
     alternatives to that proposed deployment.
       The Senate amendment contained a related provision (sec. 
     231) that would limit the obligation of fiscal year 2008 
     funds for procurement, site activation, construction, 
     preparation of equipment for, or deployment of the proposed 
     European deployment until two conditions are met: (1) the 
     Governments of Poland and the Czech Republic have given final 
     approval to bilateral missile defense deployment agreements 
     negotiated with the United States; and (2) 45 days have 
     elapsed after Congress receives an independent assessment of 
     options for missile defense in Europe. The provision would 
     also limit the availability of fiscal year 2008 funds for the 
     acquisition or deployment of operational interceptor missiles 
     for the proposed European deployment until the Secretary of 
     Defense certifies that the 2-stage interceptor proposed for 
     deployment in Europe has demonstrated, through successful, 
     operationally realistic flight testing, a high probability of 
     working in an operationally effective manner. The provision 
     would also require an independent assessment of specified 
     options for missile defense in Europe. The provision would 
     not limit the availability of fiscal year 2008 funds for 
     activities not otherwise limited by the provision, including 
     site surveys, studies, analyses, and planning and design for 
     the proposed missile defense deployment in Europe.
       The House recedes with an amendment that would combine the 
     elements of the two provisions.
       The conferees note that the administration requested fiscal 
     year 2008 funds to begin construction for the proposed 
     missile defense deployment before it began negotiations on 
     deployment with either Poland or the Czech Republic. The 
     conferees believe it is premature to seek construction funds 
     before even negotiating agreements with Poland and the Czech 
     Republic, and have authorized reduced funding accordingly.
       The conferees observe that, if the Governments of Poland 
     and the Czech Republic give final approval to any 
     successfully negotiated deployment agreements during fiscal 
     year 2008, the Department of Defense will have the option of 
     submitting a reprogramming request for site activation and 
     construction funds.
       The administration's proposed deployment is intended to 
     address a potential future long-range missile threat from 
     Iran to the U.S. homeland and to Europe. While this potential 
     threat may or may not emerge by 2015, Iran already has the 
     largest inventory of short- and medium-range ballistic 
     missiles in the Middle East, and these missiles currently 
     pose a threat to forward-deployed forces of the United States 
     and to its allies and other friendly nations in the region.
       As enacted by section 223 of the John Warner National 
     Defense Authorization Act for Fiscal Year 2007 (Public Law 
     109-364), ``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.'' The conferees believe that, consistent with 
     this policy, it is essential to focus on developing, testing, 
     and deploying effective, near-term missile defense 
     capabilities to defend against these existing missile 
     threats.
       The Commander of the Joint Forces Component Command for 
     Integrated Missile Defense, a component of United States 
     Strategic Command, informed Congress that in order to fulfill 
     the combatant commanders' operational requirements to defend 
     against existing short- and medium-range missile threats the 
     U.S. would require almost twice the number of Terminal High 
     Altitude Area Defense (THAAD) and Standard Missile-3 (SM-3) 
     interceptors as currently planned for and budgeted. The 
     independent assessment required in this provision will 
     examine the full range of threats and missile defense options 
     to meet these threats, including the THAAD and SM-3 systems.
       The conferees strongly support the need to work closely 
     with our North Atlantic Treaty Organization (NATO) allies, 
     including Poland and the Czech Republic, to defend against 
     the mutual threats we face, including ballistic missile 
     threats. In this regard, there are several key principles 
     that should guide the proposed missile defense deployment in 
     Europe.
       First, NATO must play a central role with regard to future 
     discussions on European missile defense. To the extent the 
     proposed deployment is placed in a larger NATO context, NATO 
     is more likely to be supportive. The conferees encourage NATO 
     to accelerate its efforts to acquire wide area missile 
     defense capabilities against short- and medium-range missile 
     threats.
       Second, any future long-range U.S. missile defense system 
     deployed in Europe should, to the maximum extent possible, be 
     integrated and fully interoperable with the missile defense 
     systems that NATO is developing for deployment. Since NATO is 
     expected to begin deploying an initial capability in 2010, 
     this will require a clear understanding of the planned 
     capabilities and the command and control arrangements for the 
     systems of NATO and of the United States.

[[Page 32894]]

       Third, it is imperative that any U.S. missile defense 
     system deployed to protect our forward-deployed forces and 
     NATO allies in Europe be part of a larger network of systems 
     that defends all such allies, and must not leave the 
     territory of certain allies unprotected against short- and 
     medium-range missile threats. The proposed U.S. system would 
     leave parts of NATO's southeastern region unprotected, thus 
     requiring other systems, such as those mentioned above, to 
     provide full protection. As the NATO Secretary General has 
     indicated, the indivisibility of alliance security is a 
     principle on which there can be no compromise.
     Sense of Congress on missile defense cooperation with Israel 
         (sec. 227)
       The House bill contained a provision (sec. 228) that would 
     require the Secretary of Defense to expand the U.S. ballistic 
     missile defense system to better integrate with the Israeli 
     ballistic missile defense system, and also would require the 
     Secretary to submit a report on the status of integrating 
     U.S. and Israeli missile defense systems. The provision would 
     also authorize funding for a variety of missile defense 
     programs to assist Israel's defensive capability.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that expresses the 
     sense of Congress that the United States should have an 
     active program of ballistic missile defense cooperation with 
     Israel, and should take steps to improve the coordination, 
     interoperability, and integration of their missile defense 
     capabilities, and enhance their capability to defend against 
     ballistic missile threats present in the Middle East region. 
     The amendment would also require the Secretary of Defense to 
     submit to the congressional defense committees a report that 
     describes in detail the program of missile defense 
     cooperation between the United States and Israel, including 
     plans for future capability enhancement.
       The conferees note that the United States and Israel have a 
     long-standing program of cooperation on ballistic missile 
     defense, including joint development of technology like the 
     Arrow interceptor missile, and joint missile defense testing 
     and exercises. This cooperation continues to serve the 
     security interests of both nations.
       The conferees are aware that Israel is considering a 
     follow-on system for the Arrow Weapon System that would 
     provide better defensive capability against faster, higher, 
     and more challenging missiles than Arrow can currently 
     provide. The conferees encourage Israel and the Missile 
     Defense Agency to evaluate the possibility of using the U.S. 
     Terminal High Altitude Area Defense (THAAD) system, or a 
     land-based version of the Standard Missile-3, as a successor 
     to Arrow. If either or both of these systems could provide 
     the desired level of defensive protection, it would be much 
     more cost-effective and less expensive than developing a new 
     Arrow system.
     Limitation on availability of funds for deployment of missile 
         defense interceptors in Alaska (sec. 228)
       The Senate amendment contained a provision (sec. 232) that 
     would limit the availability of funds authorized in this Act 
     to deploy more than 40 Ground-Based Interceptors at Fort 
     Greely, Alaska, until the Secretary of Defense submits a 
     certification that the Block 2006 Ground-based Midcourse 
     Defense system has demonstrated, through operationally 
     realistic end-to-end flight testing, that it has a high 
     probability of working in an operationally effective manner.
       The House bill contained no similar provision.
       The House recedes.
     Policy of the United States on protection of the United 
         States and its allies against Iranian ballistic missiles 
         (sec. 229)
       The Senate amendment contained a provision (sec. 1218) that 
     would state the policy of the United States to develop and 
     deploy, in conjunction with its allies and other nations 
     whenever possible, an effective defense against Iranian 
     ballistic missiles that threaten forward-deployed forces of 
     the United States and its North Atlantic Treaty Organization 
     (NATO) allies in Europe, and which could eventually pose a 
     threat to the United States homeland. The provision would 
     also make it the policy of the United States to proceed with 
     the development of such defenses so that any missile defenses 
     fielded by the United States in Europe are integrated with or 
     complementary to missile defense capabilities fielded by 
     NATO.
       The House bill contained no similar provision.
       The House recedes with an amendment that would add a policy 
     statement to encourage NATO to accelerate its efforts to 
     acquire missile defense capabilities to defend NATO territory 
     against the existing threat of Iranian short- and medium-
     range ballistic missiles, including wide-area defense. It 
     also includes references to other allies and friendly nations 
     in the region.

                       Subtitle D--Other Matters

     Coordination of human systems integration activities related 
         to acquisition programs (sec. 231)
       The House bill contained a provision (sec. 231) that would 
     require the designation of a senior official to be 
     responsible for human systems integration (HSI) activities 
     throughout acquisition programs, supervise such activities, 
     recommend resource requirements for such activities, and 
     develop a departmental instruction, and possibly directive, 
     relating to HSI.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     designation of a senior official to coordinate HSI activities 
     related to acquisition programs and eliminate the statutory 
     requirement for the development of a specific directive or 
     instruction on HSI.
       The conferees note that the Department of Defense (DOD) 
     April 2006 report to Congress entitled ``Human Systems 
     Integration Activity in DOD Acquisition Programs'' concluded 
     that ``. . . a sound HSI strategy in acquisition is a highly 
     effective method of both saving the Department significant 
     costs during the life cycle of systems and improving system 
     performance,'' but also found that business practices in this 
     area ``. . . are not mature and consistent across DOD.'' It 
     further concluded that effectiveness of HSI is improved by 
     the ``institutionalization and standardization of assessment 
     methods and modeling tools across DOD.''
       The conferees believe that this area should continue to be 
     a high priority within the Department and believe that this 
     provision will support efforts at the effective coordination 
     and prioritization of HSI efforts. The conferees urge the 
     Department to continue to invigorate and invest in HSI 
     activities throughout acquisition programs, including in 
     science and technology programs.
       The conferees note the Department's failure to satisfy the 
     reporting requirement set out in the Committee on Armed 
     Services of the House of Representatives report to accompany 
     the National Defense Authorization Act for Fiscal Year 2006 
     (H.Rpt. 109-89), and that a comprehensive review of HSI is 
     over 1 year late. Therefore, to improve DOD responsiveness 
     and intra-departmental coordination, the conferees believe 
     designation of a senior official to coordinate and develop 
     HSI-related activities and methodologies is necessary. The 
     conferees direct the designated official to develop and 
     report on a timeline and plan to satisfy outstanding report 
     and assessment requirements.
     Expansion of authority for provision of laboratory 
         facilities, services, and equipment (sec. 232)
       The House bill contained a provision (sec. 232) that would 
     authorize defense laboratories to provide facilities, 
     services, and equipment through leases, contracts, or other 
     arrangements to private sector entities. It would also permit 
     defense laboratories to receive fees and in-kind payments for 
     these activities and to deposit those fees into appropriate 
     accounts of the laboratory.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify 
     existing authority regarding the provision of samples, 
     drawings, and other services to private sector persons or 
     entities. The amendment would broaden these existing 
     authorities to enable the Department of Defense to make 
     available, under regulations prescribed by the Secretary of 
     Defense, facilities, services, and equipment, as long as that 
     availability would not place the Department in direct 
     competition with the domestic private sector, and does not 
     involve in-kind payments for services provided.
       The conferees are supportive of efforts that will improve 
     the quality of the defense laboratories and increase their 
     ability to perform their designated missions effectively and 
     efficiently. The conferees believe that the taxpayer-funded 
     infrastructure managed by the Department of Defense should be 
     utilized to support private sector activities when in the 
     interest of national defense. The conferees expect that such 
     support should not displace defense activities or create 
     situations in which the government is in competition with 
     elements of the private sector.
       The conferees anticipate that the Secretary of Defense will 
     promulgate regulations for the utilization of this authority 
     that adequately protect both the government's and the private 
     sector's interests through the establishment of appropriate 
     safeguards. The conferees further expect to be kept informed 
     of progress in the establishment of this regulatory 
     framework, lessons learned through the use of this new 
     authority, specific benefits to the Department that are 
     resulting from its use, and any difficulties encountered in 
     its execution.
     Modification of cost sharing requirement for Technology 
         Transition Initiative (sec. 233)
       The Senate amendment contained a provision (sec. 252) that 
     would modify the cost sharing requirements in the Technology 
     Transition Initiative.
       The House bill contained no similar provision.
       The House recedes.
     Report on implementation of Manufacturing Technology Program 
         (sec. 234)
       The House bill contained a provision (sec. 235) that would 
     require a report on the implementation of the technologies 
     and processes developed under the Manufacturing Technology 
     Program.

[[Page 32895]]

       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     reporting requirement to include assessments of performance 
     enhancements attributable to the Manufacturing Technology 
     Program and related investments, and to modify the time 
     period covered by the implementation analyses.
       The conferees intend that the analyses and reporting 
     required by the report should include all projects which 
     received funding from a service or Defense Agency 
     Manufacturing Technology Program in fiscal years 2003, 2004, 
     or 2005, including projects which were initiated prior to 
     2003.
     Assessment of sufficiency of test and evaluation personnel 
         (sec. 235)
       The House bill contained a provision (sec. 236) that would 
     require an assessment of the sufficiency of the workforce of 
     the Office of the Director of Operational Test and 
     Evaluation.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees are supportive of efforts to assess 
     accurately the required size and technical skill mix of the 
     workforce necessary to fulfill the important statutory role 
     of the Office of the Director of Operational Test and 
     Evaluation. The conferees are concerned, however, that the 
     organization is heavily reliant on contractor support. 
     Therefore, the conferees expect that this assessment will 
     also address the appropriate balance between government 
     personnel and contractor support in the organization, given 
     its critical, independent oversight role.
     Repeal of requirement for separate reports on technology area 
         review and assessment summaries (sec. 236)
       The House bill contained a provision (sec. 237) that would 
     repeal the statutory requirement for a report to Congress 
     that summarizes the Director of Defense Research and 
     Engineering's Technology Area Review and Assessment (TARA).
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees note that the role of the Director of Defense 
     Research and Engineering (DDR&E) in coordinating the science 
     and technology (S&T) programs of the military services, 
     defense agencies, Special Operations Command, other 
     departmental organizations, and other federal agencies is 
     critical to the efficient and effective execution of the 
     Department of Defense's overall S&T strategy. Further, the 
     Defense Science Board in its October 2005 report ``The Roles 
     and Authorities of the Director of Defense Research and 
     Engineering'' noted that ``. . . the DDR&E should be tasked 
     to assure that all research and development organizations are 
     implementing the strategic technology guidance of the 
     Department.''
       The conferees further note that the TARA process has been 
     replaced by a combination of S&T collaborative reviews, 
     forward looking assessments, and technology focus teams, 
     under the newly established Reliance 21 process. The 
     conferees support any efforts to improve the coordination and 
     execution of the S&T program and expect the Department to 
     keep the congressional defense committees informed of the 
     maturity and effectiveness of the new processes, as well as 
     outcomes, when appropriate, of specific technical reviews and 
     assessments.
     Modification of notice and wait requirement for obligation of 
         funds for foreign comparative test program (sec. 237)
       The Senate amendment contained a provision (sec. 251) that 
     would shorten the notice and wait time required for the 
     obligation of funds in the Foreign Comparative Test program.
       The House bill contained no similar provision.
       The House recedes.
     Strategic plan for the Manufacturing Technology Program (sec. 
         238)
       The Senate amendment contained a provision (sec. 253) that 
     would require the development of a strategic plan for the 
     Manufacturing Technology Program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     time period covered by the plan and modify the requirements 
     for development of the plan and for its submission to 
     Congress.
       The conferees are supportive of the efforts of the 
     Manufacturing Technology Program to enhance the 
     producibility, improve the performance, and increase the 
     affordability of defense systems. The conferees note that the 
     Defense Science Board, in its recent study entitled, ``The 
     Manufacturing Technology Program: A Key to Affordably 
     Equipping the Future Force'' recommended that the Department 
     of Defense ``ensure implementation'' of the Manufacturing 
     Technology Program strategic plan and investment strategy 
     ``with periodic reviews of plan execution.'' The conferees 
     believe that this provision, as well as other manufacturing-
     related provisions adopted by the conferees, are consistent 
     with that recommendation and would support efforts to 
     identify best practices that can be used in making future 
     manufacturing technology investments and transitioning 
     technologies to the defense industrial base.
     Modification of authorities on coordination of Defense 
         Experimental Program to Stimulate Competitive Research 
         with similar federal programs (sec. 239)
       The Senate amendment contained a provision (sec. 254) that 
     would give the Department of Defense more flexibility in its 
     execution of the Defense Experimental Program to Stimulate 
     Competitive Research.
       The House bill contained no similar provision.
       The House recedes.
     Enhancement of defense nanotechnology research and 
         development program (sec. 240)
       The Senate amendment contained a provision (sec. 255) that 
     would update the program and reporting requirements for the 
     defense nanotechnology research program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     activities and interagency coordination efforts under the 
     program and eliminate the requirement for a Comptroller 
     General study of the program.
       The conferees believe that nanotechnology can enable novel 
     future military capabilities if research efforts can be 
     matured into battlefield applications. This type of 
     technology transition is difficult for all technologies, and 
     will be difficult for nanotechnology as well. The conferees 
     believe that the Department of Defense should begin to 
     anticipate and address future technology transition issues, 
     such as manufacturing of nanosystems and developing a 
     sustainable nanotechnology industrial base.
       The conferees further see the value in supporting 
     government-wide efforts as part of the National 
     Nanotechnology Initiative and therefore direct the Department 
     to participate in all appropriate interagency activities, 
     including providing appropriate resources to support its 
     involvement in those activities.
     Federally funded research and development center assessment 
         of the Defense Experimental Program to Stimulate 
         Competitive Research (sec. 241)
       The Senate amendment contained a provision (sec. 256) that 
     would require an assessment by the Comptroller General of the 
     Defense Experimental Program to Stimulate Competitive 
     Research.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to utilize a defense federally funded 
     research and development center for an independent assessment 
     of the Defense Experimental Program to Stimulate Competitive 
     Research.
     Cost-benefit analysis of proposed funding reduction for High 
         Energy Laser Systems Test Facility (sec. 242)
       The Senate amendment contained a provision (sec. 258) that 
     would require a cost-benefit analysis of the proposed funding 
     reduction for the High Energy Laser Test Facility.
       The House bill contained no similar provision.
       The House recedes.
     Prompt global strike (sec. 243)
       The House bill contained a provision (sec. 124) that would 
     prohibit the Department of Defense (DOD) from obligating or 
     expending any fiscal year 2008 funds for operational 
     deployment of a weapons system that uses Trident missiles 
     converted to carry conventional payloads. The provision would 
     also direct the Secretary of Defense to notify the 
     congressional defense committees within 30 days after the 
     date on which he determines such a weapons system is fully 
     functional and is necessary to meet military requirements.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary of Defense to prepare and submit to the 
     congressional defense committees a research, development, and 
     test plan for capabilities that could be used in prompt 
     global strike (PGS) sytems. Further, the amendment would 
     direct the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics to submit a plan for obligation and 
     expenditure of funds for fiscal year 2008, and would prohibit 
     implementation of that plan until at least 10 days after it 
     is submitted to the congressional defense committees.
       The conferees provide no funds for the Conventional Trident 
     Modification (CTM) program. This limitation on the CTM 
     program does not preclude continued research, development, 
     test, and evaluation on subsystems or technologies previously 
     pursued under the CTM program if applicable to other PGS 
     alternatives or use of the Trident D5 as a test platform.
       The conferees have consolidated funding requested by the 
     Navy for CTM and funds requested by the Air Force for the 
     Common Aero Vehicle (CAV) into PE 64165D8Z to be used to 
     establish an integrated PGS program. Requirements for the 
     program should be provided by the United States Strategic 
     Command as informed by the ongoing analysis of alternatives 
     for PGS and the PGS technology road map.

[[Page 32896]]

       The conferees look to the PGS program to conduct research 
     and development in a wide variety of technology areas 
     including propulsion systems, advanced payload delivery and 
     dispensing mechanisms, system command and control, and non-
     nuclear, kinetic and non-kinetic payloads.
       The conferees note the value of developing conventional 
     prompt global strike capabilities that may be needed for 
     time-sensitive operations. Conventional prompt global strike 
     capabilities would also continue the post-Cold War trend of 
     reducing U.S. reliance on nuclear weapons by providing the 
     President with a wider variety of viable non-nuclear strike 
     options.
       The conferees remain concerned about prompt global strike 
     concepts that would employ a mixed loading of nuclear and 
     non-nuclear systems and believe that DOD should carefully 
     address these ambiguity concerns.

                   Legislative Provisions Not Adopted

     Gulf War illnesses research
       The Senate amendment contained a provision (sec. 214) that 
     would authorize a $15.0 million increase for Gulf War 
     illnesses 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 63002A.
       The conferees direct the Secretary of the Army to utilize 
     the authorized funding for this program to undertake research 
     on Gulf War illnesses. The conferees direct that activities 
     under the program should include studies of treatments for 
     the complex of symptoms commonly referred to as ``Gulf War 
     Illness''; and identification of objective markers for Gulf 
     War Illness. The conferees recommend that no studies based on 
     psychiatric illness and psychological stress as the central 
     cause of Gulf War Illness be funded under the program. The 
     conferees direct that the program be conducted using 
     competitive selection and peer review for the identification 
     of research with the highest technical merit and military 
     value. Further, the conferees direct that this program be 
     coordinated with similar activities in the Department of 
     Veterans Affairs and the National Institutes of Health.
     Increased funds for X Lab battlespace laboratory
       The House bill contained a provision (sec. 227) that would 
     authorize an increase of $10.0 million for the X Lab 
     battlespace laboratory.
       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 
     (RDT&E), Defense-wide, line 30.
     Modeling, analysis, and simulation of military and non-
         military operations in complex urban environments
       The House bill contained a provision (sec. 238) that would 
     express findings of Congress relating to modeling and 
     simulation of urban environments.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees believe that modeling and simulation 
     activities hold the promise of improving defense capabilities 
     across the spectrum of missions and have adopted a provision 
     elsewhere in this bill that reflects the high priority that 
     these activities should have. The conferees believe that 
     modeling and simulation activities show significant promise 
     in improving military and non-military capabilities for 
     operating in complex urban environments.
     Reduction of amounts for Army Venture Capital Fund 
         demonstration
       The House bill contained a provision (sec. 233) that would 
     authorize a decrease of $10.0 million for the Army Venture 
     Capital Fund demonstration.
       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, Army, 
     PE 63125A.
     Sense of Congress concerning full support for development and 
         fielding of a layered ballistic missile defense
       The House bill included a provision (sec. 226) that would 
     express the sense of Congress concerning support for 
     development and fielding of a layered ballistic missile 
     defense system.
       The Senate amendment contained no similar provision.
       The House recedes.

                 TITLE III--OPERATION AND MAINTENANCE 

     Operation and maintenance overview
       The budget request included $142.8 billion for operation 
     and maintenance for the Department of Defense.
       The House bill would authorize $142.5 billion for operation 
     and maintenance.
       The Senate amendment would authorize $143.6 billion for 
     operation and maintenance.
       The conferees agree to authorize $142.8 billion for 
     operation and maintenance for the Department of Defense.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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[[Page 32932]]

              Subtitle A--Authorization of Appropriations 

     Operation and maintenance funding (sec. 301)
       The House bill contained a provision (sec. 301) that would 
     authorize fiscal year 2008 funding levels for all operation 
     and maintenance accounts.
       The Senate amendment contained a similar provision (sec. 
     301).
       The conference agreement includes this provision.

                  Subtitle B--Environmental Provisions

     Reimbursement of Environmental Protection Agency for certain 
         costs in connection with Moses Lake Wellfield Superfund 
         Site, Moses Lake, Washington (sec. 311)
       The House bill contained a provision (sec. 311) that would 
     authorize the Secretary of Defense to reimburse the 
     Environmental Protection Agency for certain costs in 
     connection with the Moses Lake Wellfield Superfund Site, 
     Moses Lake, Washington.
       The Senate amendment contained a similar provision (sec. 
     311).
       The House recedes.
     Reimbursement of Environmental Protection Agency for certain 
         costs in connection with the Arctic Surplus Superfund 
         Site, Fairbanks, Alaska (sec. 312)
       The House bill contained a provision (sec. 312) that would 
     authorize the Secretary of Defense to reimburse the 
     Environmental Protection Agency for certain costs in 
     connection with the Arctic Surplus Superfund Site, Fairbanks, 
     Alaska.
       The Senate amendment contained a similar provision (sec. 
     312).
       The House recedes.
     Payment to Environmental Protection Agency of stipulated 
         penalties in connection with Jackson Park Housing 
         Complex, Washington (sec. 313)
       The House bill contained a provision (sec. 313) that would 
     authorize the Secretary of the Navy to pay a stipulated 
     penalty assessed by the Environmental Protection Agency 
     against the Jackson Park Housing Complex, Washington.
       The Senate amendment contained a similar provision (sec. 
     313).
       The House recedes.
     Report on control of the brown tree snake (sec. 314)
       The Senate amendment contained a provision (sec. 314) that 
     would require a report from the Secretary of Defense on the 
     Department's efforts to control the brown tree snake on Guam 
     and prevent its introduction to other areas.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to include in this report the results of 
     management, control, and eradication efforts through 
     integrated natural resource management plans prepared for 
     military installations in Guam under the pilot program 
     authorized by section 670a(g) of title 16, United States 
     Code. The amendment would also require, as part of the 
     Secretary's report, information on the Department's actions 
     to implement the recommendations of the Brown Treesnake 
     Review Panel in its final report published in March 2005.
     Notification of certain residents and civilian employees at 
         Camp Lejeune, North Carolina, of exposure to drinking 
         water contamination (sec. 315)
       The Senate amendment contained a provision (sec. 1082) that 
     would require the Secretary of the Navy to take certain steps 
     with regard to individuals who may have been exposed to 
     drinking water contamination at Camp Lejeune, North Carolina.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of the Navy to use available funds to pay for 
     the health survey required by the provision.

                 Subtitle C--Workplace and Depot Issues

     Availability of funds in Defense Information Systems Agency 
         working capital fund for technology upgrades to Defense 
         Information Systems Network (sec. 321)
       The Senate amendment contained a provision (sec. 321) that 
     would authorize the Defense Information Systems Agency to use 
     up to $500,000 of working capital funds to pay for any 
     project directly related to technology upgrades to the 
     Defense Information System Network.
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide this 
     authority notwithstanding section 2208 of title 10, United 
     States Code, and clarifies the limitation on its use with 
     respect to changing a system's performance envelope.
     Modification to public-private competition requirements 
         before conversion to contractor performance (sec. 322)
       The House bill contained a provision (sec. 324) that would 
     modify the provisions of section 2461 of title 10, United 
     States Code, regarding the requirements for public-private 
     competition for the performance of a function.
       The Senate amendment contained an identical provision (sec. 
     365). The conference agreement includes this provision.
     Public-private competition at end of period specified in 
         performance agreement not required (sec. 323)
       The House bill contained a provision (sec. 325) that would 
     override the requirement in Office of Management and Budget 
     Circular A-76 that all work awarded to federal employees 
     pursuant to a public-private competition be recompeted at the 
     end of the period specified in the performance agreement.
       The Senate amendment contained a similar provision (sec. 
     370).
       The House recedes.
       The conferees note that this provision would give 
     Department of Defense managers discretion to determine 
     whether it is in the interest of the Department of Defense to 
     conduct a follow-on competition at the end of the period 
     specified in the performance agreement. Nothing in this 
     provision would prohibit the conduct of such a competition, 
     if it were determined to be in the Department's interest.
     Guidelines on insourcing new and contracted out functions 
         (sec. 324)
       The House bill contained a provision (sec. 326) that would 
     require the Under Secretary of Defense for Personnel and 
     Readiness to establish guidelines and procedures for ensuring 
     that full consideration is given to using federal employees 
     to perform new functions and other categories of work that 
     would otherwise be performed under contract.
       The Senate amendment contained a similar provision (sec. 
     368).
       The Senate recedes with an amendment that would eliminate 
     language prohibiting the Department of Defense from 
     initiating any new public-private competitions until the 
     guidelines and procedures are issued. The amendment would 
     require the Inspector General of the Department of Defense to 
     report to the Committees on Armed Services of the Senate and 
     the House of Representatives on the compliance of the 
     Secretary of Defense with the requirements of this section.
     Restriction on Office of Management and Budget influence over 
         Department of Defense public-private competitions (sec. 
         325)
       The House bill contained a provision (sec. 328) that would 
     prohibit the Office of Management and Budget (OMB) from 
     directing or requiring the Secretary of Defense or the 
     secretary of a military department to undertake a particular 
     public-private competition under OMB Circular A-76.
       The Senate amendment contained a similar provision (sec. 
     369).
       The Senate recedes with an amendment that would strike the 
     requirement that the Secretary of Defense suspend public-
     private competitions under OMB Circular A-76 and substitute a 
     requirement that the Inspector General conduct a 
     comprehensive review of the compliance of the Secretary of 
     Defense and the secretaries of the military departments with 
     the requirements of the provision.
       The conferees remain concerned about efforts by OMB to 
     intervene in internal Department of Defense (DOD) decisions 
     regarding how the Department should best be staffed to carry 
     out its vital national security functions. Most recently, the 
     Deputy Director of OMB sent a memorandum to the Deputy 
     Secretary of Defense complaining that the Department of the 
     Army had not subjected a large enough number of federal 
     employee positions to public-private competition and that DOD 
     had classified too many positions as being inappropriate for 
     public-private competition. The OMB memorandum further urged 
     DOD to actively review positions in the intelligence 
     community for possible public-private competition.
       The conferees agree that decisions about which functions 
     should be performed by DOD employees in the interest of 
     national security are best made by the Department of Defense. 
     In recent years the DOD budget has grown dramatically as the 
     Department has taken on substantial new burdens in the global 
     war on terrorism. The Department of the Army and the defense 
     intelligence agencies bear a particularly heavy share of 
     these burdens. Under these circumstances, the conferees 
     believe that DOD decisions regarding the structure of the 
     civilian workforce required to meet national defense needs 
     should be made without outside interference. Accordingly, the 
     conferees direct the Secretary of Defense to make these 
     decisions on the merits, without regard to any views that may 
     be expressed by OMB officials.
     Bid protests by federal employees in actions under Office of 
         Management and Budget Circular A-76 (sec. 326)
       The House bill contained a provision (sec. 329) that would 
     give federal employees the same right to appeal the outcome 
     of a public-private competition that contractors competing 
     against those employees already have.
       The Senate amendment contained an identical provision (sec. 
     366). The conference agreement includes this provision.
       The conferees note that this provision applies to a protest 
     of an agency decision that was made after the date of the 
     enactment of this Act, even if the competition, study, or 
     analysis which formed the basis for such decision was 
     initiated prior to the date of enactment.

[[Page 32933]]


     Public-private competition required before conversion to 
         contractor performance (sec. 327)
       The House bill contained a provision (sec. 330) that would 
     extend government-wide certain provisions regarding public-
     private competitions conducted by the Department of Defense.
       The Senate amendment contained an identical provision (sec. 
     367). The conference agreement includes this provision.
     Extension of authority for Army industrial facilities to 
         engage in cooperative activities with non-Army entities 
         (sec. 328)
       The Senate amendment contained a provision (sec. 341) that 
     would amend section 4544 of title 10, United States Code, to 
     extend until September 30, 2014, the authority for any 
     working capital funded Army industrial facility to enter into 
     a contract or cooperative arrangement with a non-Army entity 
     to carry out specified military or commercial projects. This 
     provision would also provide for an annual report by the 
     Secretary of the Army explaining how the Army is using this 
     extended authority, and would require the Army to submit a 
     business case analysis on the advisability of making this 
     authority permanent.
       The House bill contained no similar provision.
       The House recedes.
     Reauthorization and modification of multi-trades 
         demonstration project (sec. 329)
       The House bill contained a provision (sec. 331) that would 
     reauthorize and expand section 338 of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136) 
     to allow the Secretary of the Air Force and the Secretary of 
     the Navy to conduct demonstration projects through 2013 to 
     evaluate the benefits of promoting workers who perform 
     multiple trades.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would: (1) grant 
     the Secretary of the Army the same authority to establish a 
     multi-trades demonstration project; (2) limit demonstrations 
     to one industrial facility per service; and (3) require the 
     secretaries to make a recommendation on whether multi-trade 
     authority should become permanent.
       The conferees note that, in accordance with section 338 of 
     the National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136), the Comptroller General will submit a 
     report on the projects at the end of the demonstration.
     Pilot program for availability of working capital funds to 
         Army for certain product improvements (sec. 330)
       The House bill contained a provision (sec. 322) that would 
     amend section 2208 of title 10, United States Code, by adding 
     a new paragraph at the end granting limited authority to the 
     Department of Defense to use Defense Working Capital Funds to 
     make product improvements for weapon systems, major end 
     items, and components.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would grant 
     authority to the Secretary of the Army in a pilot program to 
     use working capital funds for certain product improvements. 
     The Senate amendment would also strike amendments to section 
     2208 of title 10, United States Code, and grant working 
     capital fund activities limited authority to spend up to $1.0 
     million to insert technology improvements into weapon systems 
     or major end items. The conferees agree that this authority 
     would expire in 2013.
       The conferees are concerned that Department of Defense 
     policy and regulations governing the implementation of the 
     authority provided in section 2208 of title 10, United States 
     Code, is undermining the Department's and services' ability 
     to use working capital fund activities, such as depot 
     maintenance activities and department-wide services, to 
     maximize equipment recapitalization and modernization. This 
     is particularly the case for the Army and the Marine Corps as 
     significant numbers of their tactical systems will cycle 
     through the depot maintenance systems as part of their reset 
     strategies over the next several years.
       The intent of the pilot program is to allow the Army to 
     demonstrate whether use of working capital funds could 
     decrease procurement lead times, implement steady workload 
     requirements at the depots, as well as improve supplier 
     workload coordination with the private sector. The conferees 
     are concerned that the Financial Management Regulation has 
     limited the authority, and therefore the intent, of section 
     2208 of title 10, United States Code, by restricting 
     technology refreshment and insertion to those components or 
     systems that would not ``significantly improve the 
     performance envelope'' of the end item. The conferees believe 
     that a less restrictive application of this authority would 
     allow working capital fund activities to acquire mission-
     related system upgrades and insert technologies that improve 
     major components of end items, such as large system engines, 
     as they would other parts to maximize depot capacity, 
     workload management, and flexibility. A less restrictive 
     application of this authority would also allow working 
     capital fund services to upgrade or refresh mission equipment 
     to increase performance and reduce costs.
       The conferees are aware of the services' concerns regarding 
     the potential impact of this authority. The conferees share 
     these concerns and, accordingly, sunset the authority in 
     2013. Additionally, the conferees direct the Army to address 
     these issues during the pilot program and in the report 
     mandated by this provision:
      (1) the definition of ``significant'' change to the 
     performance envelope of an end item;
      (2) the impact on cost, including training;
      (3) the distinction between investment and improvement 
     (i.e., service-life extensions, new capabilities, safety) and 
     their relationship to appropriation law and the role of 
     program managers;
      (4) the impact on depot competitiveness; and
      (5) the impact on performance-based logistics agreements.
       The conferees have included an annual reporting requirement 
     in this provision to ensure congressional oversight of the 
     pilot program. The annual reports will serve to inform the 
     congressional defense committees on whether this authority 
     should be considered for Department of Defense-wide 
     application.

              Subtitle D--Extension of Program Authorities

     Extension of Arsenal Support Program Initiative (sec. 341)
       The House bill contained a provision (sec. 341) that would 
     amend section 343 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (Public Law 106-398) 
     to extend the Arsenal Support Program Initiative (ASPI) 
     through fiscal year 2010.
       The Senate amendment contained a similar provision (sec. 
     342).
       The Senate recedes.
       The conferees agree that the Army's arsenals provide the 
     Nation critical manufacturing capabilities not available from 
     any other domestic source and, therefore, are vital to the 
     industrial capacity of the Department of Defense. The 
     conferees believe that for many years the Department has 
     neglected the arsenals in terms of capital investment to keep 
     pace with modern manufacturing requirements and retention of 
     core skills in the arsenal workforce.
       One of the central purposes for the creation of the ASPI 
     was to retain and possibly strengthen the viability of the 
     Army arsenals by leveraging the availability of military 
     industrial facilities and a skilled workforce and commercial 
     ventures related to the arsenals' mission. The conferees are 
     concerned that the ASPI has had limited success in 
     contributing to the arsenals' retention of skills in 
     manufacturing processes necessary to ensure these unique 
     skills are available for national security purposes. Unlike 
     initiatives at Army ammunition plants where the commercial 
     ventures are complementary or compatible to the plants' core 
     military mission, the arsenal initiatives appear to have 
     minimal connection to core mission skills. Some arsenals 
     appear to create force protection and security risks by 
     introducing relatively open access to the installations by 
     non-defense personnel. The conferees are also concerned about 
     reported conflicts over the availability and use of 
     Department-owned land and facilities. These conflicts between 
     the arsenals' military mission and ASPI-related commercial 
     ventures undermine control of the pace and scope of the 
     program that arsenal commanders and the Department must 
     retain.
       The conferees are aware that ASPI-related recapitalization 
     of critical arsenal plants and equipment has been limited. 
     Based on the congressionally mandated Department of the Army 
     report of October 5, 2007, the ASPI appears to be 
     contributing to the local economic development purposes laid 
     out in the enacting legislation. However, the $15.5 million 
     in congressionally directed funding that has supported the 
     program since fiscal year 2001 has produced only $3.1 million 
     in cost avoidance to the Army. The Army's October report 
     recommends permanent authority for the ASPI, but the 
     Department of Defense did not request any ASPI authority in 
     its fiscal year 2008 legislative package, nor did the Army 
     budget request include ASPI funding for fiscal year 2008 or 
     any future year.
       For the reasons noted above, the conferees expect the 
     Department of Defense to take action to increase the capital 
     investment and enhance the manufacturing processes and skills 
     of the Army's arsenals, either through an improved ASPI 
     program or by seeking additional statutory authorities. 
     During the additional 2 years of authorization that this 
     provision would provide, the conferees expect to see progress 
     in the selection and execution of projects that will enhance 
     the arsenals' core missions and workforce, and result in 
     contributions to the recapitalization of plants and 
     equipment.
       The conferees direct the Congressional Budget Office (CBO) 
     to conduct a business case analysis that examines the cost, 
     return on investment, and economic impact of the ASPI. 
     Furthermore, the conferees direct the Comptroller General to: 
     (1) review how effective ASPI has been in achieving the 11 
     purposes outlined in Public Law 106-398; (2) evaluate 
     variations in the ASPI implementation at the Army arsenals; 
     and (3) provide recommendations on how the ASPI could be 
     restructured to support the arsenals' core

[[Page 32934]]

     missions. The conferees direct CBO and the Comptroller 
     General to submit these reports to the Committees on Armed 
     Services of the House of Representatives and Senate no later 
     than September 1, 2009.
     Extension of period for reimbursement for helmet pads 
         purchased by members of the armed forces deployed in 
         contingency operations (sec. 342)
       The House bill contained a provision (sec. 342) that would 
     extend the period during which members of the armed forces 
     deployed in contingency operations may request and receive 
     reimbursement for helmet pads that were purchased at personal 
     expense. This section would cover purchases made through 
     September 30, 2007, and would give the service member up to a 
     year to submit a claim for reimbursement. This section does 
     not allow reimbursement for purchases made on behalf of a 
     service member.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Extension of temporary authority for contract performance of 
         security guard functions (sec. 343)
       The Senate amendment contained a provision (sec. 322) that 
     would continue the orderly phase-out of the temporary 
     authority for contract performance of security guard 
     functions under section 322 of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314).
       The House bill contained no similar provision.
       The House recedes.

                          Subtitle E--Reports

     Reports on National Guard readiness for emergencies and major 
         disasters (sec. 351)
       The House bill contained a provision (sec. 351) that would 
     amend section 482 of title 10, United States Code, to require 
     the Department of Defense to begin reporting on the readiness 
     of the National Guard to respond to civil support mission 
     requirements. The report would be included in the quarterly 
     readiness report to Congress provided to the congressional 
     defense committees and also reported to the State governors.
       The Senate amendment contained a similar provision (sec. 
     343) that would amend sections 482 and 10541 of title 10, 
     United States Code, to require the Department of Defense to 
     routinely measure and report on the readiness of the National 
     Guard to perform domestic support missions.
       The House recedes with an amendment that would set an 
     effective date for the first report's submission to allow a 
     reasonable amount of time for the Department to develop 
     appropriate measures and processes to implement this change 
     to the reporting systems. The House amendment would also 
     require that the Department's reports refer to the National 
     Guard's duties specified in sections 331 through 333 and 
     12304(b) of title 10, United States Code. The House amendment 
     would also specify that the terms emergency and major 
     disaster are used as defined in section 5122 of title 42, 
     United States Code.
       The conferees are concerned that increased demands on the 
     personnel and equipment of the National Guard in support of 
     operations in Iraq and Afghanistan have left the States at 
     significant risk in terms of the Guard's ability to respond 
     to domestic crises. The Government Accountability Office 
     reported in January 2007, that the Department does not 
     routinely measure or report to Congress on the readiness of 
     non-deployed National Guard forces for domestic missions. The 
     conferees believe that the degree or acceptability of 
     domestic risk cannot be appropriately managed, by either the 
     Department or the States, without an accurate and reliable 
     readiness measurement and reporting system.
       The conferees intend that this provision would result in 
     the establishment of clear lines of authority and 
     responsibility for measuring and reporting readiness that 
     helps define clear lines of federal and State responsibility 
     for strategies and investment priorities to achieve and 
     maintain the appropriate levels of readiness.
       The Department has recognized the need to have more 
     visibility over the availability and repair of the National 
     Guard's equipment provided by the Department specifically for 
     its federal mission essential tasks but that is also relevant 
     and useful for the Guard's domestic support missions. The 
     conferees understand that the Department has begun to collect 
     data on this federally provided equipment and units' 
     readiness but note that these efforts are not mature.
       The conferees are pleased with the progress of the 
     development and fielding of the Defense Readiness Reporting 
     System and expect that this system would also provide the 
     basis for the measurement and management of National Guard 
     readiness for its domestic support missions.
     Annual report on prepositioned materiel and equipment (sec. 
         352)
       The House bill contained a provision (sec. 355) that would 
     amend chapter 131 of title 10, United States Code, by adding 
     a section to require the Secretary of Defense to report to 
     the congressional defense committees annually on the materiel 
     and equipment in the prepositioned stocks.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would strike the 
     reference to the obsolete Status of Resources and Training 
     system and adds a requirement for the Government 
     Accountability Office to review the report each year for 7 
     years.
       The conferees believe in the strategic importance of the 
     collection and placement of military materiel and supplies in 
     locations around the world to facilitate and speed our 
     response to crisis or contingencies. Prepositioned stocks 
     have been a critical strategic hedge in our global response 
     strategy since the Cold War, especially for our Army and 
     Marine Corps ground forces. These stocks, both stored on land 
     and on ships afloat, become even more important if we 
     anticipate continuing conflict in the global war on terror in 
     other parts of a dangerous world.
       The conferees are aware, however, that current stocks of 
     prepositioned materiel and equipment have been largely 
     distributed or consumed in support of operations in Iraq and 
     Afghanistan. The depleted condition of these stocks reduces 
     our strategic depth and flexibility and increases risk. The 
     conferees are concerned that the Department of Defense's 
     plans and resources are not aligned and sufficient to 
     aggressively reconstitute or reset prepositioned stocks to 
     reduce risk and reestablish strategic flexibility. The 
     conferees expect that this annual report will aid in 
     addressing these concerns and will enable increased 
     congressional oversight.
       Consistent with this view and enduring congressional 
     concerns, section 1046 of the Ronald W. Reagan National 
     Defense Authorization Act for Fiscal Year 2005 (Public Law 
     108-375) directed the Department to conduct a policy review 
     of programs for prepositioned materiel and equipment. The 
     conferees note the arrival of an interim report, 2 years 
     late, and urge the Department to complete its analysis and 
     final report as rapidly as possible. Any plan to reconstitute 
     or reset prepositioned stocks, as the provision in this bill 
     would require, must be guided by strategic policy that 
     addresses current and future requirements and manages risk.
     Report on incremental cost of early 2007 enhanced deployment 
         (sec. 353)
       The Senate amendment contained a provision (sec. 323) that 
     would amend section 323 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364) 
     to include a reporting requirement on the incremental 
     increase in reset costs related to the deployment of 
     additional forces to Iraq.
       The House bill contained no similar provision.
       The House recedes with an amendment that would include the 
     incremental change in reset costs associated with the 
     redeployment of forces from Iraq.
       The conferees acknowledge that deployed and redeployed 
     force levels will increase and decrease consistent with 
     changes in strategy in both the current and next fiscal 
     years. This fluctuation will change the reset requirements 
     and costs over time. This provision requires the military 
     departments to identify and project the actual and potential 
     increase and decrease in costs of reset and report those 
     changes to Congress.
     Modification of requirements of Comptroller General report on 
         the readiness of Army and Marine Corps ground forces 
         (sec. 354)
       The Senate amendment contained a provision (sec. 357) that 
     would amend section 323 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364) 
     to include, as part of the reporting requirement, the 
     Comptroller General's assessment of (1) the ability of Army 
     and Marine Corps forces to meet the requirements of 
     operations in Iraq and Afghanistan, and (2) the strategic 
     depth of the Army and Marine Corps and their ability to meet 
     other contingency plans or requirements.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     deadline of the report to June 1, 2008, and would clarify the 
     baseline for troop increase calculations.
     Plan to improve readiness of ground forces of active and 
         reserve components (sec. 355)
       The House bill contained a provision (sec. 352) that would 
     require the Secretary of Defense to submit an annual report 
     to the congressional defense committees regarding plans for 
     the improvement of the readiness of active and reserve 
     component ground forces.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would strike 
     reference to the obsolete Status of Resources and Training 
     System and set the expiration of this reporting requirement 
     after the receipt of five annual reports.
       The conferees support the Department of Defense's efforts 
     to modernize its readiness management system and encourage 
     the Department to use the new Defense Readiness Reporting 
     System to meet the requirements of this provision.
     Independent assessment of Civil Reserve Air Fleet viability 
         (sec. 356)
       The House bill contained a provision (sec. 354) that would 
     require the Secretary of Defense to provide for an 
     independent assessment of the viability of the Civil Reserve 
     Air

[[Page 32935]]

     Fleet (CRAF) to be conducted by a federally-funded research 
     and development center. The provision would require that the 
     independent assessment examine defense planning for organic 
     lift requirements, commercial market factors, and any 
     barriers to the viability of CRAF and provide recommendations 
     for improving the CRAF program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     independent assessment to examine the efficacy of authorizing 
     the Department of Defense to establish minimum annual 
     purchase amounts for CRAF partners as a means for improving 
     the program's viability when operations transition from the 
     current tempo to peacetime operations.
     Department of Defense Inspector General report on physical 
         security of Department of Defense installations (sec. 
         357)
       The Senate amendment contained a provision (sec. 359) that 
     would require a report to Congress within 1 year from the 
     Department of Defense Inspector General on the physical 
     security of Department of Defense installations and 
     resources.
       The House bill contained no similar provision.
       The House recedes.
     Review of high-altitude aviation training (sec. 358)
       The Senate amendment contained a provision (sec. 362) that 
     would require a report by the Secretary of the Army regarding 
     potential costs and cost avoidance in permanently stationing 
     utility, cargo, and light utility helicopters at the High 
     Altitude Aviation Training Site in Colorado.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     report to be from the Secretary of Defense instead of the 
     Secretary of the Army; would change the report due date to 
     180 days after enactment; and would expand the analysis to 
     include the high-altitude and power-limited helicopter 
     training requirements, systems, and resources of all military 
     departments.
       The conferees are aware that geographic and environmental 
     conditions in Iraq and particularly the mountainous terrain 
     of Afghanistan present significant challenges to effective 
     and safe helicopter operations. The conferees note that there 
     is little evidence that the Army, or any other military 
     department, has defined a requirement for or adequately 
     resourced this type training either in basic pilot training 
     or in pre-deployment training. The conferees believe that 
     specific training in high-altitude and power-limited 
     helicopter flight can increase effectiveness and reduce 
     accident risks by ensuring that pilots and crews are properly 
     trained for these conditions.
       The conferees note that the Army National Guard provides 
     this training at the High-Altitude Aviation Training Site at 
     Gypsum, Colorado. However, because the National Guard has 
     neither the helicopters nor funds adequate to fully support 
     this training mission, units attending the training are 
     required to fund the transportation of their own equipment 
     and support personnel to Colorado. This resource shortfall 
     particularly burdens the National Guard despite the fact that 
     over 50 percent of the annual student load is active-duty 
     Army personnel.
       Furthermore, the conferees are aware that deploying 
     aviation units of all services want this training but may not 
     have the time or aircraft available to take advantage of it 
     because of the way resources are currently configured and 
     provided, or because of limitations in regulatory authorities 
     necessary to share aircraft across services.
       Accordingly, the conferees believe that the Department of 
     Defense should be responsible for a comprehensive review of 
     high-altitude and power-limited requirements and training to 
     ensure that helicopter units of all military departments 
     deploying to environments such as Iraq or Afghanistan have 
     access to appropriate and necessary pre-deployment training 
     opportunities.
     Reports on safety measures and encroachment issues and master 
         plan for Warren Grove Gunnery Range, New Jersey (sec. 
         359)
       The Senate amendment contained a provision (sec. 364) that 
     would require three annual reports on safety efforts at the 
     Warren Grove Gunnery Range by the services who use it. It 
     would also require a study by the Secretary of the Air Force 
     on encroachment issues at the range.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     requirement from a report on encroachment issues to a master 
     plan for the range.
     Report on search and rescue capabilities of the Air Force in 
         the northwestern United States (sec. 360)
       The House bill contained a provision (sec. 367) that would 
     prohibit the deactivation of the 36th Rescue Flight assigned 
     to Fairchild Air Force Base in Spokane, Washington.
       The Senate amendment contained a similar provision (sec. 
     361) that would require the Secretary of the Air Force to 
     provide a report on search and rescue requirements and 
     capabilities in the northwestern United States to support Air 
     Force operations and training as well as the National Search 
     and Rescue Plan. The Senate amendment would also require the 
     Secretary of Defense to review this report for the purposes 
     of certification regarding search and rescue capabilities in 
     the northwestern United States as required by section 1085 of 
     the Ronald W. Reagan National Defense Authorization Act for 
     Fiscal Year 2005 (Public Law 108-375).
       The House recedes with an amendment that would add an 
     element to the reporting requirement for an assessment of 
     non-Air Force search and rescue capabilities in the 
     northwestern United States.
     Report and master infrastructure recapitalization plan for 
         Cheyenne Mountain Air Station, Colorado (sec. 361)
       The House bill contained a provision (sec. 356) that would 
     prohibit the Secretary of Defense from proceeding with the 
     relocation of the North American Aerospace Defense (NORAD) 
     command center until 180 days after the Secretary submits a 
     report containing a cost-benefit analysis of the relocation, 
     and the final plans for the relocation. The provision would 
     also require the Comptroller General of the United States to 
     submit a review of the report and final plans not later than 
     60 days after the Secretary submits them.
       The Senate amendment contained a related provision (sec. 
     1050) that would require the Secretary of Defense to submit a 
     report, not later than 90 days after the date of enactment of 
     this Act, on the relocation of the NORAD command center, 
     including a cost-benefit analysis of the relocation and an 
     explanation of the functions that will remain at Cheyenne 
     Mountain Air Station, Colorado. The provision would also 
     require the Secretary of the Air Force to submit, not later 
     than March 16, 2008, a master infrastructure recapitalization 
     plan for Cheyenne Mountain Air Station.
       The Senate recedes with an amendment that would merge the 
     reporting requirements of the two provisions and require, as 
     an added element of the report of the Secretary of Defense, 
     the findings and recommendations of a security and 
     vulnerability assessment of Peterson Air Force Base, Colorado 
     and the Secretary's plans for mitigating any risks identified 
     in the assessment. The amendment would require the Secretary 
     to submit the report not later than March 1, 2008. The 
     amendment would also limit the availability of $5.0 million 
     of the fiscal year 2008 funds for Air Force operation and 
     maintenance for the Cheyenne Mountain transformation project 
     until Congress receives the report by the Secretary of 
     Defense. The amendment would also require the Comptroller 
     General to submit to Congress a review of the report by the 
     Secretary of Defense not later than 120 days after the 
     Secretary submits the report.

                       Subtitle F--Other Matters

     Enhancement of corrosion control and prevention functions 
         within Department of Defense (sec. 371)
       The House bill contained a provision (sec. 1041) that would 
     amend section 2228 of title 10, United States Code, to make 
     permanent and strengthen the Director of the Office of 
     Corrosion Policy and Oversight as an independent activity 
     within the Office of the Under Secretary of Defense for 
     Acquisition, Technology and Logistics. This section would 
     also require the Secretary of Defense to submit, with the 
     Department's annual budget request, a report detailing the 
     Department's long-term corrosion control and prevention 
     strategy; the return on investment achieved by implementing 
     the strategy; and an explanation of the funding request 
     versus the funding requirement. The Government Accountability 
     Office would be required to review the Secretary's report 
     within 60 days of submission.
       The Senate amendment contained a similar provision (sec. 
     351).
       The Senate recedes with an amendment that would grant the 
     Director of the Office of Corrosion Policy and Oversight 
     authority to interact directly with other government 
     corrosion prevention agencies and academic research and 
     educational institutions, including entering into cooperative 
     research agreements.
     Authority for Department of Defense to provide support for 
         certain sporting events (sec. 372)
       The House bill contained a provision (sec. 361) that would 
     amend section 2564 of title 10, United States Code, to 
     authorize the Secretary of Defense to support sporting events 
     sanctioned by the United States Olympic Committee (USOC) 
     through the Paralympic Military Program. The provision would 
     also authorize the Secretary to provide support for USOC-
     sanctioned national or international paralympic sporting 
     events when the events are held in the United States and when 
     participation exceeds 100 athletes.
       The Senate amendment contained a similar provision (sec. 
     358) that would additionally condition support for paralympic 
     sporting events to those in which at least 10 percent of the 
     athletes are members or former members of the armed forces 
     who are participating based upon an injury or wound incurred 
     in the line of duty and veterans who are participating based 
     on a service-connected disability.

[[Page 32936]]

       The House recedes.
     Authority to impose reasonable restrictions on payment of 
         full replacement value for lost or damaged personal 
         property transported at government expense (sec. 373)
       The House bill contained a provision (sec. 362) that would 
     authorize the Secretary of Defense to require compliance with 
     reasonable conditions for a military member or civilian 
     employee of the Department of Defense to receive full 
     replacement value for personal property lost or damaged while 
     being transported at government expense.
       The Senate amendment contained a similar provision (sec. 
     355).
       The Senate recedes with a technical amendment.
       The conferees believe that requiring service members and 
     civilian employees to submit surveys about the quality of 
     their permanent change of station moves is a reasonable 
     condition for obtaining the benefits of the full replacement 
     value standard for claims relating to lost or damaged 
     personal property. Survey data is a key factor in rating the 
     quality of service provided by individual moving companies. 
     In this regard, the conferees are concerned about potential 
     adverse effects on capable, service-oriented small business 
     movers resulting from the implementation of the full 
     replacement value standard for recovery due to higher costs 
     involved in obtaining liability insurance. The conferees 
     direct the Secretary of Defense to analyze the potential 
     effects of implementing full replacement value on small 
     businesses and, no later than April 1, 2008, to provide a 
     report to the congressional defense committees on these 
     effects and the Secretary's recommendations for improving 
     small business's ability to compete for Department of 
     Defense-related moves.
     Priority transportation on Department of Defense aircraft of 
         retired members residing in commonwealths and possessions 
         of the United States for certain health care services 
         (sec. 374)
       The House bill contained a provision (sec. 363) that would 
     increase the priority standing for space available travel of 
     TRICARE beneficiaries under the age of 65 in commonwealths or 
     possessions of the United States who are referred by a 
     primary care physician on the commonwealth or possession for 
     speciality care outside of the commonwealth or possession.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Recovery of missing military property (sec. 375)
       The House bill contained a provision (sec. 364) that would 
     amend chapter 165 of title 10, United States Code, to add new 
     sections 2788 and 2789 in order to make uniform among the 
     military departments the prohibition on unauthorized 
     disposition of military property and the authority to seize 
     improperly disposed military property.
       The Senate amendment contained a similar provision (sec. 
     354).
       The Senate recedes with an amendment that would require 
     that seizures of U.S. property take place pursuant to 
     applicable Department of Defense and service regulations and 
     that would clarify that transfers of property may take place 
     between members of the armed forces.
     Retention of combat uniforms by members of the armed forces 
         deployed in support of contingency operations (sec. 376)
       The House bill contained a provision (sec. 365) that would 
     add a new section 4566 to title 10, United States Code, 
     authorizing the Secretary of the Army to allow soldiers to 
     keep their combat uniforms if they had been deployed in 
     support of a contingency operation for at least 30 days.
       The Senate amendment contained a similar provision (sec. 
     356) that would authorize the secretaries of each of the 
     military departments to allow members of the armed forces 
     under their jurisdiction to retain their combat uniforms 
     issued as part of organizational clothing and individual 
     equipment in connection with their deployment in support of a 
     contingency operation.
       The House recedes with an amendment that would change the 
     provision to add a new section 2568 to title 10, United 
     States Code, authorizing the secretaries of each military 
     department to allow service members under their jurisdiction 
     who are deployed for at least 30 days in support of 
     contingency operations to retain combat uniforms issued as 
     organizational clothing and individual equipment.
     Issue of serviceable material of the Navy other than to armed 
         forces (sec. 377)
       The House bill contained a provision (sec. 366) that would 
     extend to all military departments the same authority 
     currently provided to the Army to issue excess arms, tentage 
     and equipment to the Junior Reserve Officers Training Corps 
     in support of training.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Reauthorization of Aviation Insurance Program (sec. 378)
       The Senate amendment contained a provision (sec. 353) that 
     would amend section 44310 of title 49, United States Code, 
     relating to the expiration of chapter 443, Aviation Insurance 
     Program. The provision would extend the authority of the 
     Secretary of Transportation to provide insurance and 
     reinsurance until December 31, 2013.
       The House bill contained no similar provision.
       The House recedes.

                   Legislative Provisions Not Adopted

     Increase in threshold amount for contracts for procurement of 
         capital assets in advance of availability of working 
         capital funds for the procurement
       The House bill contained a provision (sec. 321) that would 
     amend section 2208 of title 10, United States Code, to 
     increase the authority for the acquisition of capital assets 
     through the working capital fund from $100,000 to $300,000.
       The Senate amendment contained no similar provision.
       The House recedes based on the inclusion in the conference 
     report of a provision (sec. 330) that would make working 
     capital funds available to the Army to conduct a pilot 
     program for certain product improvements.
     Authorization of use of working capital funds for acquisition 
         of certain items
       The House bill contained a provision (sec. 323) that would 
     amend section 2208 of title 10, United States Code, by adding 
     a new paragraph at the end that would establish dollar 
     thresholds for the Defense Working Capital Funds to acquire 
     items that support maintenance and technology refreshment and 
     ensure the viability of core logistics capabilities.
       The Senate amendment contained no similar provision.
       The House recedes.
     Individual body armor
       The Senate amendment contained a provision (sec. 324) that 
     would require a joint technical assessment by the Director of 
     Defense Research and Engineering (DDR&E) and the Director of 
     Operational Test and Evaluation (DOT&E) of individual body 
     armor systems currently available in the domestic market.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the Army has published a request 
     for proposals to initiate a competition as part of a formal 
     acquisition to qualify a range of ballistic protection 
     technologies for individual body armor systems. This 
     procurement process will include extensive and comprehensive 
     first article ballistic and environmental testing by the Army 
     Test and Evaluation Command of articles submitted by all 
     potential vendors. The conferees are satisfied that, 
     consistent with the intent of section 324 in the Senate 
     amendment, the DDR&E and the DOT&E, as well as the General 
     Accountability Office, will provide procedural and technical 
     oversight of the Army's tests. The conferees also acknowledge 
     that an added benefit of this testing approach is that it 
     will result in an authoritative procurement decision upon 
     which the Army can act immediately, ensuring that the best 
     possible individual body armor capability is qualified, 
     produced, procured, and issued to our service members without 
     delay.
     Additional requirements for annual report on public-private 
         competitions
       The House bill contained a provision (sec. 327) that would 
     add additional elements to the annual report on the results 
     of public-private competitions conducted by the Department of 
     Defense.
       The Senate amendment contained no similar provision.
       The House recedes.
     Sense of Senate on the Air Force logistics centers
       The Senate amendment contained a provision (sec. 344) that 
     would express the sense of the Senate that the Air Force 
     should work closely with Congress as they develop and 
     implement the Global Logistics Support Center (GLSC) concept.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the Air Force is developing and 
     implementing enterprise-wide reorganization and modernization 
     of its logistics management systems and supporting 
     technologies. This reorganization includes the creation of 
     the Global Logistics Support Center that would consolidate 
     several enterprise approaches to supply chain management. The 
     conferees expect the Air Force to work closely with Congress 
     to ensure that management changes enhance Air Logistics 
     Centers' productivity, increase readiness, and reduce costs.
     Plan for optimal use of strategic ports by commander of 
         surface distribution and deployment command
       The House bill contained a provision (sec. 353) that would 
     require the commander of the Surface Distribution and 
     Deployment Command (SDDC) to develop a plan to ensure optimal 
     use of strategic ports.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees are encouraged that the SDDC has initiated a 
     study to address many of the concerns raised in section 353. 
     The conferees direct that the SDDC shall, not later than 
     April 1, 2008, submit to the Committees on Armed Services of 
     the House of

[[Page 32937]]

     Representatives and the Senate a plan to optimize the use of 
     strategic ports. The conferees further direct that the SDDC's 
     plan shall include:
       (1) the location, cost effectiveness, personnel and 
     equipment requirements, and utilization of resources for each 
     strategic port;
       (2) an analysis of how each strategic port is selected and 
     how the effect of limitations imposed by the Secretary of 
     Defense on commercial shipping options for certain routes and 
     cargo sizes impacts each port;
       (3) provisions for consultation with local port authorities 
     at strategic ports that do and do not have a permanent SDDC 
     presence; and
       (4) the effect of Department of Transportation policy 
     initiatives to encourage international code sharing and 
     alliances.
     Report on public-private partnerships
       The House bill contained a provision (sec. 357) that would 
     require the Secretary of Defense to submit a report on the 
     public-private partnerships at the Department of Defense 
     Centers of Industrial and Technical Excellence (CITEs).
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees direct the Secretary of Defense to submit a 
     report to the Committees on Armed Services of the House of 
     Representatives and the Senate by March 1, 2008, that 
     describes:
      (1) common approaches and procedures for Department of 
     Defense CITEs to use in the implementation of public-private 
     partnerships;
      (2) consistent cost methodologies and reimbursement guidance 
     applicable to maintenance and repair workload performed by 
     Federal Government personnel participating in public-private 
     partnerships;
      (3) implementation procedures for completing contract 
     negotiations for public-private partnerships within 12 months 
     of initiating negotiations;
      (4) the Secretary's use in a public-private partnership of 
     commercial practices to replace existing inventory and 
     component management, technical publication data, document 
     management, and equipment maintenance and calibration 
     requirements;
      (5) delegation during a public-private partnership of Class 
     2 design authority based on commercial practices to maintain 
     the form, fit, and function of a weapon system platform, 
     major end item, component of a major end item, or article; 
     and
      (6) plans to expand core capabilities through the use of 
     public-private partnerships at Department of Defense CITEs.
       The conferees direct the Comptroller General to review the 
     Department's report for completeness and submit the review to 
     the Committees on Armed Services of the House of 
     Representatives and Senate by May 1, 2008.
     Continuity of depot operations to reset combat equipment and 
         vehicles in support of wars in Iraq and Afghanistan
       The Senate amendment contained a provision (sec. 360) that 
     would require the Secretary of Defense to submit to the 
     congressional defense committees a report on the challenges 
     of implementing the transfer of depot supply, storage, and 
     distribution functions and impacts on production, including 
     parts reclamation and refurbishment.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the 2005 Base Realignment and 
     Closure (BRAC) round consolidates depot level supply, 
     storage, and distribution functions at the Defense Logistics 
     Agency (DLA). A recent Government Accountability Office 
     report raises questions about the Department of Defense's 
     business plan to implement this consolidation indicating that 
     there are depot management risks associated with the loss of 
     control of parts needed within the depots' production 
     processes.
       The conferees direct that, not later than June 1, 2008, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the implementation of the 
     consolidation of depot supply, storage, and distribution 
     functions with the DLA as required by the 2005 BRAC.
       This report shall describe:
      (1) the adequacy of the Department's business plan to:
      (a) efficiently and effectively transfer depot supply, 
     storage, and distribution functions to the DLA;
      (b) reduce the risk of disrupting depot production and parts 
     reclamation and refurbishment;
      (c) ensure the availability and responsiveness of DLA supply 
     personnel and facilities to meet depot throughput needs, 
     including potential impact on depot turnaround time; and
      (d) ensure the authority and control of depot commanders to 
     manage supply, storage, and distribution personnel and 
     facilities throughout the production process, particularly 
     with respect to overtime scheduling and meeting surge 
     requirements.
      (2) the current estimated costs and projected savings of 
     implementing the transfer:
      (3) the estimated impact of the transfer on the hourly rates 
     charged by the DLA and depots; and
      (4) the number of personnel positions affected by type and 
     depot.
       The conferees further direct that, not later than September 
     30, 2008, the Comptroller General of the United States shall 
     review the report submitted by the Secretary of Defense and 
     submit to the congressional defense committees an assessment 
     of the matters addressed in such report.
     Sense of Congress on future use of synthetic fuels in 
         military systems
       The Senate amendment contained a provision (sec. 363) that 
     would express the sense of Congress on the future use of 
     synthetic fuels in military systems.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree that the Department of Defense should 
     continue and, as appropriate, accelerate the testing and 
     certification of alternative fuels including synthetically 
     derived liquid petroleum, unconventional oil (including oil 
     shale and tar sands), biologically derived fuels (including 
     bio-jet fuel, ethanol, and biodiesel), and non-liquid fuels 
     (including hydrogen and electricity) for use in all military 
     air, ground, and sea systems.
     Limitation on the expenditure of funds for initial flight 
         screening at Pueblo Memorial Airport
       The House bill contained a provision (sec. 368) that would 
     prohibit the expenditure of funds for initial flight 
     screening at Pueblo Memorial Airport in Pueblo, Colorado, 
     until the Air Force and the City of Pueblo have developed a 
     plan to meet the Air Force crash, fire, and rescue 
     requirements to support Air Force flight training operations.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that the Air Force has reached an 
     agreement with the Pueblo Memorial Airport that establishes 
     responsibilities and proportional sharing of costs for the 
     operation and maintenance of the flying facilities jointly 
     used by military and non-military aircraft. The conferees 
     expect that the Air Force will sign this agreement without 
     delay.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       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, 2008: Army, 
     525,400; Navy, 329,098; Marine Corps, 189,000; and Air Force, 
     329,651. The House provision included increases of 36,000 and 
     9,000 for the Army and Marine Corps, respectively, to support 
     those services' growth in ground forces. The House provision 
     also included increases of 489 Navy personnel to restore a 
     reduction in end strength in Navy medicine, and it restored 
     209 and 963 military positions in the Navy and Air Force, 
     respectively, for military-to-civilian conversions programmed 
     for fiscal year 2008 by the Department of Defense.
       The Senate amendment contained a similar provision (sec. 
     401) that would authorize active-duty end strengths of 
     328,400 for the Navy and 328,600 for the Air Force, and 
     identical end strengths for the Army and Marine Corps.
       The Senate recedes with an amendment that would authorize 
     an end strength of 329,563 for the Air Force.
       The conferees recommend end strength levels for the active 
     forces for fiscal year 2007 as set forth in the following 
     table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             FY 2008                             Change from
                                                                FY 2007      ---------------------------------------------------------------------------
                         Service                               authorized                             Conferee                              FY 2007
                                                                                   Request         recommendation    FY 2008  request      authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army.....................................................            512,400            489,400            525,400             36,000             13,000
Navy.....................................................            340,700            328,400            329,098                698            -11,602
Marine Corps.............................................            180,000            180,000            189,000              9,000              9,000
Air Force................................................            334,200            328,600            329,563                963             -4,637
                                                          ----------------------------------------------------------------------------------------------
    DOD Total............................................          1,367,300          1,326,400          1,373,061             46,661             -5,761
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 32938]]

     Revision in permanent active duty end strength minimum levels 
         (sec. 402)
       The House bill contained a provision (sec. 402) that would 
     establish the following minimum end strengths for active-duty 
     personnel as of September 30, 2008: Army, 525,400; Navy, 
     329,098; Marine Corps, 189,000; and Air Force, 329,563.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would establish 
     minimum end strengths for active-duty personnel of 328,400 
     and 328,600 for the Navy and the Air Force, respectively.
       The conferees recommend minimum end strength levels for 
     active forces as set forth in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                                 FY 2008          Change from
                                                              FY 2007      -------------------------------------
                        Service                              authorized          Conferee
                                                                              recommendation        FY 2007
----------------------------------------------------------------------------------------------------------------
Army...................................................            502,400            525,400             23,000
Navy...................................................            340,700            328,400            -12,300
Marine Corps...........................................            180,000            189,000              9,000
Air Force..............................................            334,200            328,600             -5,600
                                                        --------------------------------------------------------
    DOD Total..........................................          1,357,300          1,371,400             14,100
----------------------------------------------------------------------------------------------------------------

     Additional authority for increases of Army and Marine Corps 
         active duty end strengths for fiscal years 2009 and 2010 
         (sec. 403)
       The House bill contained a provision (sec. 403) that would 
     authorize additional active-duty end strength for the Army 
     and the Marine Corps in fiscal years 2009 and 2010 above the 
     strengths authorized for those services in fiscal year 2008. 
     Over the 2-year period, the Army and Marine Corps would be 
     authorized to increase active-duty end strength above their 
     fiscal year 2008 authorizations by 22,000 and 13,000, 
     respectively.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Increase in authorized strengths for Army officers on active 
         duty in the grade of major (sec. 404)
       The House bill contained a provision (sec. 404) that would 
     amend section 523(a)(1) of title 10, United States Code, to 
     increase the number of Army officers authorized to serve in 
     the grade of major.
       The Senate amendment contained a similar provision (sec. 
     501).
       The Senate recedes.
     Increase in authorized strengths for Navy officers on active 
         duty in the grades of lieutenant commander, commander, 
         and captain (sec. 405)
       The House bill contained a provision (sec. 405) that would 
     amend the table in section 523(a)(2) of title 10, United 
     States Code, to increase the number of Navy officers 
     authorized to serve on active duty in the grades of 
     lieutenant commander, commander, and captain.
       The Senate amendment contained a similar provision (sec. 
     502).
       The Senate recedes with a technical amendment.
     Increase in authorized daily average of number of members in 
         pay grade E-9 (sec. 406)
       The Senate amendment contained a provision (sec. 521) that 
     would amend section 517(a) of title 10, United States Code, 
     to authorize an increase from 1 percent to 1.25 percent on 
     the upper limit of the authorized daily average of active-
     duty enlisted members in pay grade E-9.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                       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, 2008: the 
     Army National Guard of the United States, 351,300; the Army 
     Reserve, 205,000; the Navy Reserve, 67,800; the Marine Corps 
     Reserve, 39,600; the Air National Guard of the United States, 
     106,700; the Air Force Reserve, 67,500; and the Coast Guard 
     Reserve, 10,000.
       The Senate amendment contained a similar provision (sec. 
     411).
       The Senate recedes with a technical amendment.
       The conferees recommend end strength levels for the 
     Selected Reserve for fiscal year 2008 as set forth in the 
     following table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             FY 2008                             Change from
                                                                FY 2007      ---------------------------------------------------------------------------
                         Service                               authorized                             Conferee                              FY 2007
                                                                                   Request         recommendation    FY 2008  request      authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army National Guard......................................            350,000            351,300            351,300                  0              1,300
Army Reserve.............................................            200,000            205,000            205,000                  0              5,000
Navy Reserve.............................................             71,300             67,800             67,800                  0             -3,500
Marine Corps Reserve.....................................             39,600             39,600             39,600                  0                  0
Air National Guard.......................................            107,000            106,700            106,700                  0               -300
Air Force Reserve........................................             74,900             67,500             67,500                  0             -7,400
                                                          ----------------------------------------------------------------------------------------------
    DOD Total............................................            842,800            837,900            837,900                  0             -4,900
Coast Guard Reserve......................................             10,000             10,000             10,000                  0                  0
--------------------------------------------------------------------------------------------------------------------------------------------------------

     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, 
     2008: the Army National Guard of the United States, 29,240; 
     the Army Reserve, 15,870; the Navy Reserve, 11,579; the 
     Marine Corps Reserve, 2,261; the Air National Guard of the 
     United States, 13,944; and the Air Force Reserve, 2,721.
       The Senate amendment contained a similar provision (sec. 
     412) that would authorize end strengths of 29,204 for the 
     Army National Guard of the United States; 13,936 for the Air 
     National Guard of the United States; and identical end 
     strengths for the other services.
       The House recedes.
       The conferees recommend end strength levels for Reserves on 
     active duty in support of the reserves as set forth in the 
     following table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             FY 2008                             Change from
                                                                FY 2007      ---------------------------------------------------------------------------
                         Service                               authorized                             Conferee                              FY 2007
                                                                                   Request         recommendation    FY 2008  request      authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army National Guard......................................             27,441             29,204             29,204                  0              1,763
Army Reserve.............................................             15,416             15,870             15,870                  0                454
Navy Reserve.............................................             12,564             11,579             11,579                  0               -985
Marine Corps Reserve.....................................              2,261              2,261              2,261                  0                  0
Air National Guard.......................................             13,291             13,936             13,936                  0                645
Air Force Reserve........................................              2,707              2,721              2,721                  0                 14
                                                          ----------------------------------------------------------------------------------------------
    DOD Total............................................             73,680             75,571             75,571                  0              1,891
--------------------------------------------------------------------------------------------------------------------------------------------------------

     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, 2008: the Army 
     Reserve, 8,249; the Army National Guard of the United States, 
     26,502; the Air Force Reserve, 9,909; the Air National Guard 
     of the United States, 22,553.
       The Senate amendment contained an identical provision (sec. 
     413).
       The conference agreement includes this provision.

[[Page 32939]]

       The conferees recommend end strength levels for military 
     technicians (dual status) as set forth in the following 
     table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             FY 2008                             Change from
                                                                FY 2007      ---------------------------------------------------------------------------
                         Service                               authorized                             Conferee                              FY 2007
                                                                                   Request         recommendation    FY 2008  request      authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army Reserve.............................................              7,912              8,249              8,249                  0                337
Army National Guard......................................             26,050             26,502             26,502                  0                452
Air Force Reserve........................................             10,124              9,909              9,909                  0               -215
Air National Guard.......................................             23,255             22,553             22,553                  0               -702
                                                          ----------------------------------------------------------------------------------------------
    DOD Total............................................             67,341             67,213             67,213                  0               -128
--------------------------------------------------------------------------------------------------------------------------------------------------------

     Fiscal year 2008 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, 2008.
       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 2008 to provide operational support.
       The Senate amendment contained an identical provision (sec. 
     415).
       The conference agreement includes this provision.
     Future authorizations and accounting for certain reserve 
         component personnel authorized to be on active duty or 
         full-time National Guard duty to provide operational 
         support (sec. 416)
       The House bill contained a provision (sec. 416) that would 
     require the Secretary of Defense to review the long-term 
     operational support missions performed by reserve component 
     personnel under section 115(b) of title 10, United States 
     Code, and to submit the results of that review to the 
     congressional defense committees by March 1, 2008. The 
     provision would also require that future budget justification 
     materials provided to the Congress include data regarding the 
     numbers of reservists projected to be on active-duty or full-
     time National Guard duty for operational support under 
     section 115(b) and a summary of the missions they would be 
     performing.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Revision of variances authorized for Selected Reserve end 
         strengths (sec. 417)
       The House bill contained a provision (sec. 417) that would 
     amend section 115(f)(3) of title 10, United States Code, to 
     authorize the Secretary of Defense to vary the end strength 
     for a fiscal year for the Selected Reserve of any of the 
     reserve components by a number equal to not more than 3 
     percent of that end strength.
       The Senate amendment contained a similar provision (sec. 
     416).
       The Senate recedes.

              Subtitle C--Authorization of Appropriations

     Military personnel (sec. 421)
       The House bill contained a provision (sec. 421) that would 
     provide an overall limit on the amounts authorized to be 
     appropriated for the military personnel accounts of the 
     Department of Defense for fiscal year 2008.
       The Senate amendment contained a similar provision (sec. 
     421).
       The conference agreement includes this provision.
       The conferees agree to the following changes from the 
     budget request for the military personnel accounts:

                   [Additions in millions of dollars]

Increased military pay raise......................................308.6
Reimburse travel expenses for specialty care........................1.0
Presumption of service-connected disabilities......................17.0
Increased retiree health care costs.................................6.0
Increased accrual payments/increased retirements....................2.0
Enhanced disability severance pay..................................30.0
Transitional assistance.............................................5.0
Restore Navy medical personnel cut of 498..........................45.8
Restore mil. to civ. medical conversions--Navy.....................45.5
Restore mil. to civ. medical conversions--Air Force................67.7
Control grade officers.............................................75.0
Increase in monthly rate of Hardship Duty Pay......................79.0
Travel allowance for inactive-duty training.......................108.0
Health Professional Scholarship accession bonus....................15.0
Loan repayment for reserves.........................................1.0
Accumulated leave carryover.........................................5.0
                                                               ________
                                                               
  Total...........................................................811.5

                   Legislative Provision Not Adopted

     Offsetting transfers from the National Defense Stockpile 
         Transaction Fund
       The House bill contained a provision (sec. 423) that would 
     require the Secretary of Defense to transfer funds from the 
     National Defense Stockpile Transaction Fund.
       The Senate amendment contained no similar provision.
       The House recedes.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

     Assignment of officers to designated positions of importance 
         and responsibility (sec. 501)
       The House bill contained a provision (sec. 501) that would 
     amend section 601(b) of title 10, United States Code, to 
     authorize officers serving in the grades of lieutenant 
     general or vice admiral and general or admiral to continue 
     for up to 60 days to hold those grades following reassignment 
     from positions authorized for those grades, unless sooner 
     placed under orders to another position authorized for those 
     grades.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Enhanced authority for reserve general and flag officers to 
         serve on active duty (sec. 502)
       The Senate amendment contained a provision (sec. 508) that 
     would amend section 526(d) of title 10, United States Code, 
     to exclude from the limitations on the number of general and 
     flag officers on active duty certain reserve general and flag 
     officers serving on active duty for not more than 365 days. 
     The total number of these officers could not exceed 10 
     percent of the number of reserve component general and flag 
     officers authorized to be in an active status under section 
     12004 of title 10, United States code.
       The House bill contained no similar provision.
       The House recedes.
     Increase in years of commissioned service threshold for 
         discharge of probationary officers and for use of force 
         shaping authority (sec. 503)
       The House bill contained a provision (sec. 502) that would 
     amend sections 630, 647, and 14503 of title 10, United States 
     Code, to provide that the secretaries of the military 
     departments, under regulations prescribed by the Secretary of 
     Defense, may discharge active or reserve component officers 
     who have less than 6 years of active commissioned service or 
     service in an active-status as a commissioned officer. The 
     provision would also authorize discharge or transfer to the 
     reserve active-status list for force restructuring purposes 
     of officers with less than 6 years of service.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Mandatory retirement age for active-duty general and flag 
         officers continued on active duty (sec. 504)
       The Senate amendment contained a provision (sec. 504) that 
     would amend section 637(b)(3) of title 10, United States 
     Code, relating to deferral of retirement and continuation on 
     active duty of regular flag and general officers to conform 
     with recently enacted extended age limits for mandatory 
     retirement of general and flag officers serving on active 
     duty that were included in section 502 of the John Warner 
     National Defense Authorization Act for Fiscal Year 2007 
     (Public Law 109-364).
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Authority for reduced mandatory service obligation for 
         initial appointments of officers in critically short 
         health professional specialties (sec. 505)
       The House bill contained a provision (sec. 531) that would 
     amend section 651 of title 10, United States Code, to 
     authorize the Secretary of Defense to reduce the 8-year 
     minimum service obligation to 2 years for initial appointment 
     of a commissioned officer in a critically short health 
     professional specialty.
       The Senate amendment contained a similar provision (sec. 
     505) that would provide that the minimum period of service 
     under such a waiver would be the greater of 2 years or the 
     period of obligated service associated

[[Page 32940]]

     with receipt of an accession bonus or special pay.
       The House recedes with a clarifying amendment.
     Expansion of authority for reenlistment of officers in their 
         former enlisted grade (sec. 506)
       The House bill contained a provision (sec. 532) that would 
     amend sections 3258 and 8258 of title 10, United States Code, 
     to authorize Regular Army and Air Force officers to reenlist 
     in their former enlisted grade when separation as an officer 
     is under honorable conditions and the officer is otherwise 
     qualified for reenlistment.
       The Senate amendment contained a similar provision (sec. 
     507).
       The House recedes.
     Increase in authorized number of permanent professors at the 
         United States Military Academy (sec. 507)
       The Senate amendment contained a provision (sec. 506) that 
     would amend section 4331(b) of title 10, United States Code, 
     to increase from 22 to 28 the authorized number of permanent 
     professors at the United States Military Academy.
       The House bill contained no similar provision.
       The House recedes.
     Promotion of career military professors of the Navy (sec. 
         508)
       The House bill contained a provision (sec. 503) that would 
     amend section 641 of title 10, United States Code, to 
     authorize the promotion of an officer of the Navy or Marine 
     Corps serving as a permanent professor at the Naval Academy 
     in the grade of commander or lieutenant colonel to the grade 
     of captain or colonel upon completion of 6 years of service 
     as a permanent military professor or career military 
     professor.
       The Senate amendment contained a provision (sec. 509) that 
     would amend chapter 603 of title 10, United States Code, to 
     authorize promotion of career military professors of the Navy 
     to the grade of captain or colonel not earlier than 3 years 
     after selection as a permanent professor, pursuant to 
     regulations prescribed by the Secretary of the Navy, which 
     must include a competitive selection board process.
       The House recedes with an amendment that would require the 
     Secretary of Defense to conduct an assessment of the 
     effectiveness of the promotion system established by this 
     section and report the results of the assessment to the 
     congressional defense committees no later than December 31, 
     2009, and that would require the Secretary of the Navy to 
     submit a report regarding the need for any additional grade 
     limitation exemptions by March 31, 2008.

                Subtitle B--Reserve Component Management

     Retention of military technicians who lose dual status in the 
         Selected Reserve due to combat-related disability (sec. 
         511)
       The House bill contained a provision (sec. 514) that would 
     amend section 10216 of title 10, United States Code, to 
     authorize: (1) a military technician (dual status) to 
     continue employment as a military technician when the 
     technician loses military status as a result of a combat-
     related disability; (2) the secretary concerned to waive 
     temporarily the requirement that a military technician 
     maintain membership in the Selected Reserve to fill the 
     position of a military technician (dual status) while that 
     position is vacant as a result of the mobilization of the 
     technician normally assigned to that position; and (3) the 
     secretary concerned to defer mandatory separation of a 
     military technician (dual status) until the technician 
     attains eligibility for an unreduced annuity, but not beyond 
     age 62.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     retention until age 60 of a military technician (dual status) 
     as a military technician if the technician loses dual status 
     as the result of a combat-related disability and is otherwise 
     qualified for the position.
     Constructive service credit upon original appointment of 
         reserve officers in certain health care professions (sec. 
         512)
       The House bill contained a provision (sec. 512) that would 
     amend section 12207(b) of title 10, United States Code, to 
     authorize the granting of sufficient constructive service 
     credit to persons receiving original appointments as reserve 
     officers in critically short health care professions to be 
     appointed in the grade of captain, or in the Navy Reserve, 
     lieutenant.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Mandatory separation of reserve officers in the grade of 
         lieutenant general or vice admiral after completion of 38 
         years of commissioned service (sec. 513)
       The House bill contained a provision (sec. 511) that would 
     amend section 14508 of title 10, United States Code, to 
     require separation from active status of reserve component 
     officers serving in the grades of lieutenant general or vice 
     admiral 30 days after completion of 38 years of commissioned 
     service.
       The Senate amendment contained a similar provision (sec. 
     534) that would also require separation from active status of 
     these officers on the fifth anniversary of the date of an 
     officer's appointment in the grade of lieutenant general or 
     vice admiral, whichever is later.
       The Senate recedes with an amendment that would require 
     separation from active status of these officers upon 
     completion of 5 years of service in grade or 30 days after 
     completion of 38 years of commissioned service, whichever is 
     later.
     Maximum period of temporary federal recognition of person as 
         Army National Guard officer or Air National Guard officer 
         (sec. 514)
       The House bill contained a provision (sec. 513) that would 
     amend section 308(a) of title 32, United States Code, to 
     extend the period that members of the National Guard may be 
     granted temporary federal recognition from 6 months to 1 
     year.
       The Senate amendment contained a similar provision (sec. 
     535).
       The Senate recedes with a technical amendment.
     Advance notice to members of reserve components of deployment 
         in support of contingency operations (sec. 515)
       The House bill contained a provision (sec. 517) that would 
     require a minimum of 30 days advance notice, with a goal of 
     90 days advance notice, to a member of a reserve component 
     called or ordered to active duty for a period of more than 30 
     days in support of a contingency operation.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Report on relief from professional licensure and 
         certification requirements for reserve component members 
         on long-term active duty (sec. 516)
       The Senate amendment contained a provision (sec. 536) that 
     would amend sections 1819(b)(5) and 1919(b)(5) of the Social 
     Security Act to allow certain National Guard and reserve 
     nurse aides who are called to active duty extra time, 
     beginning July 1, 2007 and ending on September 30, 2008, to 
     complete training and competency evaluations required by law. 
     In addition, the provision would require the Secretary of 
     Defense to report on the need for legislation to provide for 
     the exemption of professional or other licensure or 
     certification requirements for National Guard and reserve 
     members who are placed on active duty for an extended period 
     of time.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     authorization for additional time for certification as 
     required by the Social Security Act. The amendment would 
     require a study by the Comptroller General of the United 
     States to: (1) identify the number and type of licensure or 
     certification requirements that could be impacted by extended 
     periods of active duty; and (2) determine means to provide 
     relief from such requirements if necessary.

                   Subtitle C--Education and Training

     Revisions to authority to pay tuition for off-duty training 
         or education (sec. 521)
       The House bill contained a provision (sec. 523) that would 
     authorize the secretaries of the military services, or the 
     Secretary of Homeland Security with respect to the Coast 
     Guard when it is not operating as a service in the Navy, to 
     pay tuition and related expenses to certain members of the 
     Ready Reserve.
       The Senate amendment contained a similar provision (sec. 
     671).
       The Senate recedes with a technical amendment.
     Reduction or elimination of service obligation in an Army 
         Reserve or Army National Guard troop program unit for 
         certain persons selected as medical students at Uniformed 
         Services University of the Health Sciences (sec. 522)
       The House bill contained a provision (sec. 521) that would 
     amend section 2107a(b) of title 10, United States Code, to 
     authorize the Secretary of the Army to modify agreements 
     entered into by cadets in the Reserve Officers' Training 
     Scholarship Program who are selected to be medical students 
     at the Uniformed Services University of the Health Sciences 
     or to participate in the Armed Forces Health Professions 
     Scholarship and Financial Assistance program. Under this 
     provision, the Secretary would be authorized to reduce or 
     eliminate troop program unit service obligations and to 
     establish, in lieu of that obligation, an active-duty service 
     obligation upon a determination that it is in the best 
     interests of the United States to modify the agreement and 
     with the consent of the member involved.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Repeal of annual limit on number of ROTC scholarships under 
         Army Reserve and Army National Guard financial assistance 
         program (sec. 523)
       The House bill contained a provision (sec. 522) that would 
     amend section 2107a(h) of

[[Page 32941]]

     title 10, United States Code, to increase from 416 to 424 the 
     limit on the number of Reserve Officer Training Corps (ROTC) 
     scholarships that may be awarded to cadets who agree to serve 
     in the reserve components of the Army.
       The Senate amendment contained a similar provision (sec. 
     557) that would amend section 2107a(h) of title 10, United 
     States Code, to repeal the limit on the number of ROTC 
     scholarships that may be awarded to cadets who agree to serve 
     in the reserve components of the Army.
       The House recedes.
     Treatment of prior active service of members in uniformed 
         medical accession programs (sec. 524)
       The Senate amendment contained a provision (sec. 551) that 
     would amend sections 2114(b) and 2121(c) of title 10, United 
     States Code, to require that medical students at the 
     Uniformed Services University of the Health Sciences and 
     persons participating in the armed forces Health Professions 
     Scholarship and Financial Assistance Programs who have prior 
     commissioned service, serve, while on active duty, in pay 
     grade O-1, or in pay grade O-2 if they meet specified 
     promotion criteria prescribed by the service secretary. The 
     provision would also amend section 2004a of title 10, United 
     States Code, to impose the same limitations regarding the pay 
     grade and service credit exclusion on officers on active duty 
     with prior commissioned service who are detailed as students 
     at medical schools under section 2004a.
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide that 
     medical students at the Uniformed Services University of the 
     Health Sciences and persons participating in the armed forces 
     Health Professions Scholarship and Financial Assistance 
     Programs with prior active service would continue to receive 
     basic pay based on their former grade and years of service if 
     that pay would be greater than the rate of basic pay for 
     regular officers in the grade of second lieutenant or ensign. 
     The provision would also amend section 2004a of title 10, 
     United States Code, to provide that any officer detailed 
     under this section to attend medical school would be required 
     to revert to the grade of ensign or second lieutenant while 
     receiving pay based on their prior grade or years of service.
     Repeal of post-2007-2008 academic year prohibition on phased 
         increase in cadet strength limit at the United States 
         Military Academy (sec. 525)
       The Senate amendment contained a provision (sec. 553) that 
     would amend section 4342 of title 10, United States Code, to 
     extend the authority of the Secretary of the Army to increase 
     by up to 100 cadets per year the size of the Corps of Cadets 
     at the United States Military Academy to a maximum of 4,400 
     cadets.
       The House bill contained no similar provision.
       The House recedes.
     National Defense University master's degree programs (sec. 
         526)
       The House bill contained a provision (sec. 524) that would 
     amend section 2163 of title 10, United States Code, to 
     authorize the President of the National Defense University to 
     award a master of arts degree in strategic security studies 
     to graduates of the School for National Security Executive 
     Education.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Authority of the Air University to confer degree of master of 
         science in flight test engineering (sec. 527)
       The Senate amendment contained a provision (sec. 555) that 
     would amend section 9317(a) of title 10, United States Code, 
     to authorize the commander of the Air University to confer 
     the degree of doctor of philosophy in strategic studies upon 
     graduates of the School of Advanced Airpower Studies; the 
     degree of master of air, space, and cyberspace studies upon 
     graduates of Air University; and the degree of master of 
     flight test engineering science upon graduates of the Air 
     Force Test Pilot School.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the commander of the Air University to confer the degree of 
     master of science in flight test engineering upon graduates 
     of the Air Force Test Pilot School.
     Enhancement of education benefits for certain members of 
         reserve components (sec. 528)
       The Senate amendment contained a provision (sec. 674) that 
     would authorize an accelerated payment program for the 
     educational benefits in chapters 1606 and 1607 of title 10, 
     United States Code. The provision would also expand the 
     eligibility criteria for attaining the maximum benefit for 
     the education benefit under chapter 1607 of title 10, United 
     States Code to 3 cumulative years of active service. Finally, 
     the provision would create a buy-up program for service 
     members eligible for the education benefit under chapter 1607 
     of title 10, United States Code.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Extension of period of entitlement to educational assistance 
         for certain members of the Selected Reserve affected by 
         force shaping initiatives (sec. 529)
       The Senate amendment contained a provision (sec. 675) that 
     would eliminate the service requirement for continued 
     eligibility for education benefits under chapter 1606 of 
     title 10, United States Code, for service members who have 
     been affected by base realignment and closure or other force 
     shaping initiatives.
       The House bill contained no similar provision.
       The House recedes.
     Time limit for use of educational assistance benefit for 
         certain members of reserve components and resumption of 
         benefit (sec. 530)
       The House bill contained a provision (sec. 530) that would 
     express the sense of Congress that the time limitation for 
     use of education benefits under chapter 1607 of title 10, 
     United States Code, should be extended to allow an individual 
     entitled to such benefits to use those benefits for 10 years 
     following separation from a reserve component.
       The Senate amendment contained a similar provision (sec. 
     676) that would authorize a service member entitled to 
     education benefits under chapter 1607 of title 10, United 
     States Code, to use those benefits for 10 years after 
     separation from a reserve component.
       The House recedes with an amendment that would allow 
     service members separated from a reserve component, who prior 
     to separation were eligible for benefits under chapter 1607 
     of title 10, United States Code, to reclaim eligibility for 
     those benefits upon rejoining a reserve component and to use 
     those benefits for 10 years following any subsequent 
     separation.
     Secretary of Defense evaluation of the adequacy of the 
         degree-granting authorities of certain military 
         universities and educational institutions (sec. 531)
       The House bill contained a provision (sec. 526) that would 
     require the Secretary of Defense to evaluate the degree-
     granting authorities of certain military universities and 
     educational institutions to assess whether the current 
     process remains adequate, appropriate, and responsive to meet 
     emerging military service education requirements. The 
     Secretary would be required to submit a report on the 
     evaluation to the Committees on Armed Services of the Senate 
     and the House of Representatives no later than April 1, 2008.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees direct the Secretary of Defense, as part of 
     the evaluation and report required under this section, to 
     thoroughly review various proposals by the United States Air 
     Force for expanded authority for the Commander of the Air 
     University to grant degrees to attendees of the schools of 
     the Air University. These proposals include, among others, 
     authority to allow the Commander of the Air University to 
     grant bachelor's and master's of arts degrees, and the degree 
     of doctor of philosophy in strategic studies. The conferees 
     believe that these Air Force initiatives raise important 
     questions about the role of the services in providing 
     advanced education and that the Department must be more 
     proactive in providing timely guidance and coordination in 
     this key area affecting retention and career progression for 
     both officer and enlisted personnel. The Secretary should 
     provide an assessment of these proposals and recommendations 
     for legislation, if required.
     Report on success of Army National Guard and Reserve Senior 
         Reserve Officers' Training Corps financial assistance 
         program (sec. 532)
       The House bill contained a provision (sec. 529) that would 
     require the Secretary of Defense to ensure that Senior 
     Reserve Officer's Training Corps (SROTC) scholarships are 
     available to students attending historically Black colleges 
     and universities, minority institutions, and Hispanic-serving 
     institutions.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of the Army to submit a report to the Committees on 
     Armed Services of the Senate and House of Representatives on 
     the success of the financial assistance program of the SROTC 
     in securing the appointment of second lieutenants in the Army 
     Reserve and the Army National Guard. The report would include 
     detailed information on the appointment of cadets enrolled in 
     historically Black colleges or universities, minority 
     institutions, and Hispanic-serving institutions and address 
     efforts to increase awareness of the availability and 
     advantages of appointment in the SROTC at these institutions 
     and to increase the number of cadets at these institutions.
       The conferees encourage the Secretary of the Army to expand 
     the Army's outreach program to students attending 
     historically Black colleges or universities, minority 
     institutions, and Hispanic-serving institutions, and to 
     ensure that SROTC scholarships are available to qualified 
     students at these institutions.

[[Page 32942]]


     Report on utilization of tuition assistance by members of the 
         armed forces (sec. 533)
       The Senate amendment contained a provision (sec. 673) that 
     would require the secretary of each of the military 
     departments to submit to the congressional defense committees 
     by April 1, 2008 a report on the utilization of tuition 
     assistance by members of the armed forces, both in the 
     regular and reserve components, during fiscal year 2007.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Navy Junior Reserve Officers' Training Corps unit for 
         Southold, Mattituck, and Greenport High Schools (sec. 
         534)
       The House bill contained a provision (sec. 527) that would 
     authorize the Southold, Mattituck, and Greenport High 
     Schools, located in Southold, New York, to be treated as a 
     single institution for the purposes of maintaining a Navy 
     Junior Reserve Officers' Training Corps unit.
       The Senate amendment contained a similar provision (sec. 
     554).
       The Senate recedes with a technical amendment.
     Report on transfer of administration of certain educational 
         assistance programs for members of the reserve components 
         (sec. 535)
       The House bill contained a provision (sec. 525) that would 
     recodify the reserve educational assistance programs in 
     chapters 1606 and 1607 of title 10, United States Code, from 
     title 10 to title 38, United States Code, and transfer 
     administration of those programs to the Department of 
     Veterans Affairs.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense, in cooperation with the Secretary of 
     Veterans Affairs, to submit to the congressional defense and 
     veterans affairs committees a report on the feasibility and 
     merits of transferring the administration of the educational 
     assistance programs for members of the reserve components 
     contained in chapters 1606 and 1607 of title 10, United 
     States Code, from the Department of Defense to the Department 
     of Veterans Affairs, no later than September 1, 2008. The 
     provision would further require both the Defense Business 
     Board, in cooperation with the Reserve Forces Policy Board, 
     and the Veterans Affairs Advisory Committee on Education to 
     review the report, and provide their independent reviews. The 
     provision would also require the Comptroller General of the 
     United States to assess the study and to report to the 
     congressional defense and veterans affairs committees the 
     results of that assessment by November 1, 2008.

       Subtitle D--Military Justice and Legal Assistance Matters

     Authority to designate civilian employees of the Federal 
         Government and dependents of deceased members as eligible 
         for legal assistance from Department of Defense legal 
         staff resources (sec. 541)
       The House bill contained a provision (sec. 541) that would 
     amend section 1044(a) of title 10, United States Code, to 
     authorize the provision of legal assistance to certain 
     civilian employees of the Federal Government serving with, or 
     preparing to serve with, an armed force in support of a 
     contingency operation.
       The Senate amendment contained a similar provision (sec. 
     572) that would clarify the authority of the service 
     secretaries to provide legal assistance to civilian employees 
     of the Department of Defense in locations where legal 
     assistance from non-military legal assistance providers is 
     not reasonably available.
       The Senate recedes with an amendment that would authorize 
     the provision of legal assistance to survivors of deceased 
     members or former members who were dependents of the member 
     or former member at the time of the member's death and to 
     civilian employees of the Federal Government serving in 
     locations where legal assistance from non-military legal 
     assistance providers is not reasonably available.
     Authority of judges of the United States Court of Appeals for 
         the Armed Forces to administer oaths (sec. 542)
       The Senate amendment contained a provision (sec. 571) that 
     would amend section 936 of title 10, United States Code, to 
     authorize judges of the United States Court of Appeals for 
     the Armed Forces to administer oaths.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Modification of authorities on senior members of the Judge 
         Advocate Generals' Corps (sec. 543)
       The Senate amendment contained a provision (sec. 573) that 
     would require that the Judge Advocates General of the Army, 
     Navy, and Air Force serve in the grade of lieutenant general 
     or vice admiral, and would exclude them from the authorized 
     number of officers serving in grades above major general or 
     rear admiral. The provision would also authorize the position 
     of Legal Counsel to the Chairman of the Joint Chiefs of 
     Staff, and would require that the officer appointed to this 
     position serve in the grade of brigadier general or rear 
     admiral (lower half) and be recommended by a board of 
     officers convened by the Secretary of Defense.
       The House bill contained no similar amendment.
       The House recedes with an amendment that would amend 
     section 525(b) of title 10, United States Code, to increase 
     from 15.7 to 16.3 the percentage of general officers or 
     admirals in a military service that may be appointed above 
     the grade of major general or rear admiral. The House 
     amendment would also require the Secretary of Defense to 
     develop a strategic plan linking the missions and 
     requirements of the Department of Defense for general and 
     flag officers to the statutory limits on the numbers of 
     general and flag officers, and current assignment, promotion, 
     and joint officer development policies for general and flag 
     officers.
     Prohibition against members of the armed forces participating 
         in criminal street gangs (sec. 544)
       The House bill contained a provision (sec. 579) that would 
     require the Secretary of Defense to revise Department of 
     Defense Directive 1325.6 to include membership in a criminal 
     street gang among the list of prohibited activities by 
     members of the armed forces.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to prescribe regulations to prohibit the 
     active participation by members of the armed forces in a 
     criminal street gang.

                       Subtitle E--Military Leave

     Temporary enhancement of carryover of accumulated leave for 
         members of the armed forces (sec. 551)
       The Senate amendment contained a provision (sec. 591) that 
     would increase for all service members the number of days of 
     accumulated leave they may carry over from 1 fiscal year to 
     the next from 60 to 90 days. The provision would also 
     increase by 1 year the length of time available to use leave 
     accumulated under the special leave accrual provisions of 
     section 701(f) of title 10, United States Code. Finally, the 
     provision would amend section 501(b) of title 37, United 
     States Code, to authorize enlisted service members who have 
     accumulated more than 120 days of leave under section 701(f) 
     of title 10, United States Code, to sell back, on a one-time 
     basis, up to 30 days of such leave in excess of 120 days.
       The House bill contained no similar provision.
       The House recedes with an amendment that would reduce the 
     enhanced leave carryover provision from 90 to 75 days, and 
     would terminate this authority after December 31, 2010.
     Enhancement of rest and recuperation leave (sec. 552)
       The Senate amendment contained a provision (sec. 594) that 
     would authorize an additional 5 days of rest and recuperation 
     leave under section 705(b) of title 10, United States Code, 
     for certain service members whose overseas tours of duty last 
     longer than 12 months.
       The House bill contained no similar provision.
       The House recedes.

                   Subtitle F--Decorations and Awards

     Authorization and request for award of Medal of Honor to 
         Leslie H. Sabo, Jr., for acts of valor during the Vietnam 
         War (sec. 561)
       The House bill contained a provision (sec. 551) that would 
     authorize the President to award the Medal of Honor to Leslie 
     H. Sabo, Jr., who served in the U.S. Army during the Vietnam 
     War.
       The Senate amendment contained a similar provision (sec. 
     593(c)).
       The Senate recedes.
     Authorization and request for award of Medal of Honor to 
         Henry Svehla for acts of valor during the Korean War 
         (sec. 562)
       The House bill contained a provision (sec. 552) that would 
     authorize the President to award the Medal of Honor to Henry 
     Svehla who served in the U.S. Army during the Korean War.
       The Senate amendment contained a similar provision (sec. 
     593(e)).
       The Senate recedes.
     Authorization and request for award of Medal of Honor to 
         Woodrow W. Keeble for acts of valor during the Korean War 
         (sec. 563)
       The House bill contained a provision (sec. 553) that would 
     authorize the President to award the Medal of Honor to 
     Woodrow W. Keeble who served in the U.S. Army during the 
     Korean War.
       The Senate amendment contained a similar provision (sec. 
     593(b)).
       The Senate recedes.
     Authorization and request for award of Medal of Honor to 
         Private Philip G. Shadrach for acts of valor as one of 
         Andrews' Raiders during the Civil War (sec. 564)
       The House bill contained a provision (sec. 554) that would 
     authorize the President to award the Medal of Honor to 
     Private Philip G. Shadrach, who served in the U.S. Army 
     during the Civil War.
       The Senate amendment contained a similar provision (sec. 
     593(d)).
       The Senate recedes with a technical amendment.

[[Page 32943]]


     Authorization and request for award of Medal of Honor to 
         Private George D. Wilson for acts of valor as one of 
         Andrews' Raiders during the Civil War (sec. 565)
       The House bill contained a provision (sec. 555) that would 
     authorize the President to award the Medal of Honor to 
     Private George D. Wilson, who served in the U.S. Army during 
     the Civil War.
       The Senate amendment contained a similar provision (sec. 
     593(f)).
       The Senate recedes with a technical amendment.

     Subtitle G--Impact Aid and Defense Dependents Education System

     Continuation of authority to assist local educational 
         agencies that benefit dependents of members of the armed 
         forces and Department of Defense civilian employees (sec. 
         571)
       The House bill contained a provision (sec. 562) that would 
     authorize $50.0 million for continuation of the Department of 
     Defense (DOD) assistance program to local agencies that are 
     impacted by enrollment of dependent children of military 
     members and civilian employees of the Department of Defense. 
     This provision would also authorize $15.0 million for 
     assistance to local educational agencies with significant 
     changes in enrollment of military and civilian school-aged 
     dependent children due to base closures, force structure 
     changes, or force relocations.
       The Senate amendment contained a similar provision (sec. 
     561) that would authorize $35.0 million and $10.0 million for 
     each assistance program, respectively.
       The Senate recedes with an amendment that would authorize 
     $30.0 million for continuation of assistance to agencies 
     impacted by enrollment of DOD military and civilian employee 
     dependents, and $10.0 million for assistance to agencies with 
     significant changes in enrollment of children due to base 
     closures, force structure changes, or force relocations.
     Impact aid for children with severe disabilities (sec. 572)
       The Senate amendment contained a provision (sec. 562) that 
     would authorize $5.0 million for impact aid payments for 
     children with disabilities for continuation of the Department 
     of Defense's assistance to local educational agencies that 
     benefit dependents with severe disabilities.
       The House bill contained no similar provision.
       The House recedes.
     Inclusion of dependents of non-Department of Defense 
         employees employed on Federal property in plan relating 
         to force structure changes, relocation of military units, 
         or base closures and realignments (sec. 573)
       The Senate amendment contained a provision (sec. 563) that 
     would amend section 574(e)(3) of the John Warner National 
     Defense Authorization Act for Fiscal Year 2007 (Public Law 
     109-364) to include dependents of personnel who work on 
     federal property but are not members of the armed forces or 
     civilian employees of the Department of Defense in the plan 
     and annual reports required to identify and assist local 
     educational agencies experiencing growth in enrollment due to 
     force structure changes, relocation of military units, or 
     base closure and realignments. The provision would make the 
     definition of ``military dependent students'' consistent with 
     the definition used for purposes of computation of payments 
     under the Federal Impact Aid program authorized in section 
     7703 of title 20, United States Code.
       The House bill contained no similar provision.
       The House recedes.
     Payment of private boarding school tuition for military 
         dependents in overseas areas not served by Defense 
         Dependents' Education System schools (sec. 574)
       The House bill contained a provision (sec. 561) that would 
     amend section 1407(b)(1) of the Defense Dependents' Education 
     Act of 1978 (20 U.S.C. 926(b)(1)) to authorize the Secretary 
     of Defense to pay tuition for attendance at private boarding 
     schools in the United States for military dependents in 
     overseas areas not served by Department of Defense schools.
       The Senate amendment contained a similar provision (sec. 
     564).
       The House recedes with a clarifying amendment.

                     Subtitle H--Military Families

     Department of Defense Military Family Readiness Council and 
         policy and plans for military family readiness (sec. 581)
       The Senate amendment contained a provision (sec. 581) that 
     would amend chapter 88 of title 10, United States Code, to 
     establish a Department of Defense Military Family Readiness 
     Council to review and make recommendations on Department of 
     Defense policy requirements for the support of military 
     family readiness; to monitor requirements for the support of 
     military family readiness; and to evaluate and assess the 
     effectiveness of military family readiness programs and 
     activities of the Department of Defense.
       The Senate amendment contained another provision (sec. 582) 
     that would amend chapter 88 of title 10, United States Code, 
     to require the Secretary of Defense to develop a policy and 
     plans for the support of military family readiness.
       The House bill contained no similar provisions.
       The House recedes with a clarifying amendment that would 
     combine the Senate provisions and include the senior enlisted 
     advisors of the Army, Navy, Marine Corps, and Air Force, or 
     the spouse of a senior enlisted member from each service as a 
     member of the Department of Defense Military Family Readiness 
     Council.
       The conferees expect the council to meet not less often 
     than twice each year, and that not more than one of these 
     meetings will be in the National Capitol Region.
     Yellow Ribbon Reintegration Program (sec. 582)
       The House bill contained a provision (sec. 515) that would 
     establish a Department of Defense working group to identify 
     and assess the reintegration needs of members of the reserve 
     components who return from overseas operational deployment.
       The House bill also contained a provision (sec. 516) that 
     would require the Secretary of Defense, in coordination with 
     the Chief of the National Guard Bureau, to establish a 
     national combat veteran reintegration program, to be known as 
     the Yellow Ribbon Reintegration Program, to provide National 
     Guard members and their families with sufficient information, 
     services, referral, and proactive approach opportunities 
     throughout the entire deployment cycle. The provision would 
     designate the National Guard Bureau as the executive agent 
     for this program, and would require establishment of a Center 
     of Excellence for Reintegration Programs, appointment of an 
     Advisory Board, and employment of personnel to implement the 
     Yellow Ribbon program at the State level.
       The Senate amendment contained a similar provision (sec. 
     683) that would require a Yellow Ribbon Reintegration Program 
     to serve both National Guard and reserve members and their 
     families, and would designate the Office of the Secretary of 
     Defense for Personnel and Readiness as the executive agent.
       The Senate amendment also contained a provision (sec. 587) 
     that would require the Secretary of Defense to carry out a 
     pilot program, to be known as the National Military Family 
     Readiness and Servicemember Reintegration Outreach Program, 
     to assess the feasibility and advisability of providing 
     assistance and support to the Adjutant General of a State or 
     territory for the purpose of creating comprehensive soldier 
     and family preparedness and reintegration outreach programs.
       The House recedes with an amendment that would authorize 
     the Secretary to create State Deployment Cycle Support Teams 
     to administer the Yellow Ribbon Reintegration Program at the 
     State level and would authorize outreach programs to educate 
     service members and their families about the Yellow Ribbon 
     Reintegration Program.
       The conferees acknowledge that the reserve component has 
     changed from a strategic reserve to an operational reserve, 
     fully engaged in the global war on terror, and that reserve 
     component members face challenges that are inherently 
     different from their counterparts in the active component. 
     One such challenge is reintegration to civilian life. The 
     Department of Defense has recognized the need for programs 
     that address similar challenges for service members in active 
     components returning from combat and has instituted such 
     programs.
       The conference outcome will ensure that members of the 
     reserve components returning to their hometowns following 
     demobilization have access to improved services and resources 
     that allow them to successfully reintegrate back into 
     society.
     Study to enhance and improve support services and programs 
         for families of members of regular and reserve components 
         undergoing deployment (sec. 583)
       The House bill contained a series of provisions that would 
     address support to families of deployed service members:
       The House bill contained a provision (sec. 580) that would 
     require the Secretary of Defense to carry out a study to 
     evaluate the feasibility and advisability of establishing a 
     pilot program on family-to-family support for families of 
     members of the National Guard and reserves undergoing 
     deployment.
       The House bill contained a provision (sec. 581) that would 
     require the Secretary of Defense to conduct a study to 
     evaluate the feasibility and advisability of contracting with 
     a private sector entity with expertise in the health and 
     well-being of families and children, infants, and toddlers to 
     enhance and develop support services for children of members 
     of the National Guard and reserve who are deployed.
       The House bill contained a provision (sec. 1034) that would 
     require the Secretary of Defense to submit a report to 
     Congress no later than 180 days after enactment of this Act 
     regarding the impact on military family members of multiple 
     deployments as part of Operation Iraqi Freedom and Operation 
     Enduring Freedom.
       The Senate amendment also contained a series of provisions 
     that would address support to families of deployed military 
     personnel:
       The Senate amendment contained a provision (sec. 583) that 
     would require the Secretary of Defense to enhance and improve 
     current programs of the Department of Defense to provide 
     family support for families

[[Page 32944]]

     of deployed members of the armed forces, including deployed 
     members of the National Guard and reserve, before, during, 
     and after their deployment cycle.
       The Senate amendment contained a provision (sec. 584) that 
     would require the Secretary of Defense to provide information 
     to parents and other caretakers of children, including 
     infants and toddlers, to assist the parents and caretakers in 
     responding to the adverse implications of the deployment of a 
     service member, including the death or injury of the service 
     member, and to develop programs and activities to increase 
     awareness in military and civilian communities of the adverse 
     implications of deployment of service members.
       The Senate amendment contained a provision (sec. 585) that 
     would require the Secretary of Defense to conduct a study to 
     evaluate the feasibility and advisability of contracting with 
     a private sector entity with expertise in the health and 
     well-being of families and children, infants, and toddlers to 
     enhance and develop support services for children of deployed 
     members of the active and reserve components.
       The Senate amendment contained a provision (sec. 586) that 
     would require the Secretary of Defense to carry out a study 
     to evaluate the feasibility and advisability of establishing 
     a pilot program on family-to-family support for families of 
     deployed members of the active and reserve components.
       The Senate recedes with an amendment that would combine the 
     House and Senate provisions to require a study to determine 
     the most effective means to enhance and improve family 
     support programs for families of the regular and reserve 
     components of the armed forces before, during, and after 
     deployment.
       In a separate provision contained elsewhere in this 
     conference report, the conferees would require the 
     establishment of a national combat veteran reintegration 
     program, to be known as the Yellow Ribbon Reintegration 
     Program, to provide families of deployed service members with 
     information, services, referrals, and proactive outreach 
     throughout the entire deployment cycle.
       The conferees are concerned about the adequacy of support 
     available to families of deployed service members, 
     particularly the support available to families of National 
     Guard and reserve personnel who are not located in the 
     vicinity of a military installation with extensive family 
     support programs. The conferees strongly encourage the 
     Secretary of Defense to expeditiously implement and improve 
     programs that will enhance the support available to these 
     families.
     Protection of child custody arrangements for parents who are 
         members of the armed forces deployed in support of a 
         contingency operation (sec. 584)
       The House bill contained a provision (sec. 577) that would 
     amend title II of the Servicemembers Civil Relief Act (SCRA) 
     (50 U.S.C. App. 521 et seq.) to limit the authority of a 
     court to modify or amend a previous order or judgment 
     regarding custody of a child of a service member while the 
     service member is deployed in support of a contingency 
     operation. The provision would also bar courts from 
     considering the absence of the service member by reason of 
     deployment in determining the best interests of a child.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify 
     sections 201 and 202 of the SCRA to clarify that the act 
     applies to child custody proceedings.
       The conferees recognize that service members who have been 
     awarded custody of minor children but who are required to 
     deploy or be absent from their children as a result of their 
     military duties are vulnerable to litigation initiated by 
     non-custodial parents. The procedural protections of the SCRA 
     apply in child custody cases and, in most cases, should 
     prevent adverse judgments until members can be present to 
     defend their interests. The modifications to the SCRA 
     included in this provision underscore the importance of SCRA 
     protections in child custody cases. While the facts in child 
     custody disputes are central to determinations of the best 
     interests of minor children, the conferees would urge judges 
     who must decide such cases not to consider the mere absence 
     of a service member who is performing military duty to 
     constitute the sole or even a major factor in a court's 
     determination about what is in the best interests of a child.
     Family leave in connection with injured members of the Armed 
         Forces (sec. 585)
       The House bill contained a provision (sec. 675) that would 
     amend the Family and Medical Leave Act (FMLA) of 1993 (29 
     U.S.C. 2611) to provide leave to an eligible employee in the 
     case of any qualifying exigency, as determined in regulation 
     by the Secretary of Labor, arising from the fact that the 
     spouse, child, or parent of the employee is on active duty or 
     has been notified of an impending call or order to active 
     duty in support of a contingency operation.
       The Senate amendment contained a provision (sec. 1093) that 
     would authorize the Office of Personnel Management to 
     establish a program under which federal civilian employees 
     designated as caregivers could use leave for the purpose of 
     caring for a family member of a member of the armed forces 
     serving on active duty in support of a contingency operation. 
     The provision would authorize the Secretary of Labor to 
     establish a similar voluntary private sector leave program.
       The Senate recedes with an amendment that would also extend 
     the FMLA to provide leave to eligible employees, including 
     federal civilian employees, who are the spouse, son, 
     daughter, parent, or next of kin of a seriously injured 
     service member, in order to care for the service member. The 
     amendment would also extend the amount of leave time 
     available for caregivers of seriously injured service members 
     from 12 workweeks to 26 workweeks.
       The conferees note that this extension of the FMLA to cover 
     caregivers of injured service members conforms with the 
     recommendation made by The President's Commission on Care for 
     America's Returning Wounded Warriors to allow up to 26 
     workweeks of leave to an eligible family member of a service 
     member who has a combat-related injury.
     Family care plans and deferment of deployment of single 
         parent or dual military couples with minor dependents 
         (sec. 586)
       The House bill contained a provision (sec. 578) that would 
     authorize a service member to request deferment from 
     deployment to an area for which imminent danger pay is 
     authorized if the member has minor dependents and a spouse 
     who is a service member deployed to an area for which 
     imminent danger pay is authorized.
       The Senate amendment contained a provision (sec. 1072) that 
     would express the sense of Congress that single parents who 
     are members of the armed forces with minor dependents, and 
     dual-military couples with minor dependents, should develop 
     and maintain effective family care plans, and that the 
     Secretary of Defense should establish procedures to ensure 
     that if a single parent and both spouses in a dual-military 
     couple are required to deploy to an area for which imminent 
     danger pay is authorized, requests for deferment from 
     deployment due to unforeseen circumstances are rapidly 
     evaluated and that appropriate steps are taken to ensure 
     adequate care for minor dependents.
       The House recedes with an amendment that would require the 
     Secretary of Defense to establish appropriate procedures to 
     ensure that an adequate family care plan is in place for a 
     member of the armed forces with minor dependents who is a 
     single parent or whose spouse is also a member of the armed 
     forces when the member may be deployed in an area for which 
     imminent danger pay is authorized. The procedures should 
     allow the member to request a deferment of deployment due to 
     unforeseen circumstances, and the request should be 
     considered and responded to promptly.
     Education and treatment services for military dependent 
         children with autism (sec. 587)
       The Senate amendment contained a provision (sec. 595) that 
     would require the Secretary of Defense to conduct one or more 
     demonstration projects to evaluate improved approaches to the 
     provision of education and treatment services to military 
     dependent children with autism. The amendment would also 
     require the assignment of case managers for both medical and 
     educational services and the voluntary development of 
     individualized autism services plans.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to conduct a comprehensive assessment of 
     the availability of federal, State, and local education and 
     treatment services on and in the vicinity of certain military 
     installations for children of service members who are 
     diagnosed with autism. The amendment would also require the 
     service secretaries to ensure that, whenever practicable, 
     eligible members are assigned only in geographic areas with 
     educational services and facilities available on or in the 
     vicinity of the military installation that provide special 
     education and related services consistent with the 
     Individuals with Disabilities Education Act (20 U.S.C. 1400 
     et seq.). The amendment would authorize one or more 
     demonstration projects to evaluate the provision of 
     educational services and treatment services to eligible 
     dependents.
     Commendation of efforts of Project Compassion in paying 
         tribute to members of the armed forces who have fallen in 
         the service of the United States (sec. 588)
       The Senate amendment contained a provision (sec. 1077) that 
     would express the sense of the Senate commending Kaziah M. 
     Hancock, other Project Compassion volunteer professional 
     portrait artists, and the entire Project Compassion 
     organization for their tireless work in paying tribute to 
     members of the armed forces who have fallen in the service of 
     the United States.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express a 
     sense of Congress that the people of the United States owe 
     the deepest gratitude to Kaziah M. Hancock and the members of 
     Project Compassion.

[[Page 32945]]



                       Subtitle I--Other Matters

     Uniform performance policies for military bands and other 
         musical units (sec. 590)
       The House bill contained a provision (sec. 572) that would 
     amend chapter 49 of title 10, United States Code, to provide 
     uniform policy for Department of Defense bands and musical 
     units regarding when public performances are permitted, the 
     conditions under which band members may perform in their 
     personal capacities, and recording of music for distribution 
     to the public.
       The Senate amendment contained a similar provision (sec. 
     592).
       The Senate recedes with a clarifying amendment.
     Transportation of remains of deceased members of the armed 
         forces and certain other persons (sec. 591)
       The House bill contained a provision (sec. 1454) that would 
     require the secretaries of the military services to provide 
     for the delivery of the remains of deceased service members 
     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, to the 
     commercial, general aviation, or military airport, when air 
     transportation is utilized, nearest to the place selected by 
     the person designated to direct the disposition of the 
     remains.
       The Senate amendment contained a similar provision (sec. 
     657).
       The Senate recedes.
     Expansion of number of academies supportable in any State 
         under STARBASE program (sec. 592)
       The House bill contained a provision (sec. 573) that would 
     amend section 2193b of title 10, United States Code, to 
     repeal the limitation on the number of STARBASE academies in 
     each State.
       The Senate amendment contained a provision (sec. 552) that 
     would increase from two to four the maximum number of 
     STARBASE academies in a State that could be supported with 
     Department of Defense funds.
       The House recedes with a technical amendment.
     Gift acceptance authority (sec. 593)
       The House bill contained a provision (sec. 571) that would 
     amend section 2601(b)(4) of title 10, United States Code, to 
     extend from December 31, 2007 to December 31, 2010, the 
     authority for the Secretary of Defense to accept gifts for 
     the benefit of members of the armed forces, civilian 
     employees of the Department of Defense (DOD), and dependents 
     of such members or employees.
       The Senate amendment contained a similar provision (sec. 
     1025) that would make this gift acceptance authority 
     permanent and require the Secretary of Defense to prescribe 
     regulations prohibiting the solicitation of any gift by any 
     DOD employee if the nature or circumstances of the 
     solicitation would compromise the integrity or the appearance 
     of integrity of any DOD program or official.
       The House recedes.
     Conduct by members of the Armed Forces and veterans out of 
         uniform during hoisting, lowering, or passing of United 
         States flag (sec. 594)
       The Senate amendment contained a provision (sec. 1073) that 
     would amend section 9 of title 4, United States Code, to 
     authorize members of the armed forces and veterans not 
     wearing a uniform to render a salute during the ceremony of 
     hoisting or lowering the flag, or when the flag is passing in 
     a parade or in review.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Annual report on cases reviewed by National Committee for 
         Employer Support of the Guard and Reserve (sec. 595)
       The Senate amendment contained a provision (sec. 1044) that 
     would amend section 4332 of title 38, United States Code, to 
     require the Secretary of Veterans Affairs to include in an 
     annual report to Congress the number of cases regarding 
     veterans' employment or reemployment rights reviewed by the 
     Secretary of Defense under the National Committee for 
     Employer Support of the Guard and Reserve of the Department 
     of Defense during the fiscal year for which the report is 
     made.
       The House bill contained no similar provision.
       The House recedes.
     Modification of Certificate of Release or Discharge from 
         Active Duty (DD Form 214) (sec. 596)
       The Senate amendment contained a provision (sec. 596) that 
     would require the Secretary of Defense, in consultation with 
     the Secretary of Veterans Affairs, to modify the Certificate 
     of Release or Discharge from Active Duty (DD Form 214) to 
     permit a service member, upon discharge or release from 
     active duty, to elect that the DD 214 be forwarded to the 
     Central Office of the Department of Veterans Affairs or to 
     the appropriate office of the Department of Veterans Affairs 
     for the State or locality where the member will reside.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees direct the Secretary of Defense to assess the 
     feasibility of issuing the DD Form 214 containing only the 
     last four digits of a service member's Social Security 
     account number. If the Secretary determines that it is 
     feasible, the Secretary should also determine a timeline for 
     implementing such a change. The Secretary should submit a 
     report of the assessment to the Committees on Armed Services 
     of the Senate and the House of Representatives no later than 
     180 days after the date of enactment of this Act.
     Reports on administrative separations of members of the Armed 
         Forces for personality disorder (sec. 597)
       The Senate amendment contained a provision (sec. 597) that 
     would require the Secretary of Defense to report to the 
     congressional defense committees by April 1, 2008 on all 
     cases of administrative separation from the armed forces of 
     any service member who had served in Iraq or Afghanistan 
     since October 2001 for personality disorder. Additionally, 
     the provision would prohibit the administrative separation of 
     any such service member until such time as the Secretary of 
     Defense submits that report, unless a clinical review is 
     first conducted in the office of the surgeon general of the 
     military department concerned. The provision would also 
     require the Comptroller General of the United States to 
     report to the congressional defense committees by June 1, 
     2008 on the policies and procedures of the Department of 
     Defense and the military departments relating to the 
     separation of members of the armed forces for personality 
     disorder.
       The House bill contained no similar provision.
       The House recedes with an amendment that would eliminate 
     the prohibition against administrative separation for 
     personality disorder without a review, but would retain the 
     reports required of the Secretary of Defense and the 
     Comptroller General.
     Program to commemorate 50th anniversary of the Vietnam War 
         (sec. 598)
       The House bill included a provision (sec. 576) that would 
     require the Secretary of Defense to conduct a program to 
     commemorate the 50th anniversary of the Vietnam War and to 
     coordinate and support programs of the federal, State, and 
     local governments, and the activities of other persons and 
     organizations, for this purpose. This provision would 
     authorize the establishment of a fund to be administered by 
     the Secretary of Defense and would authorize $3.0 million to 
     be appropriated for deposit in the fund in fiscal year 2008. 
     The provision would also authorize acceptance of voluntary 
     services in support of commemoration activities and direct 
     the program to continue through 2025 with the Secretary 
     determining the schedule of events and priority of efforts 
     for the duration of the program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the Secretary to carry out such a program and to determine 
     the duration of the commemoration, and would authorize $1.0 
     million for program planning and activities. The amendment 
     would omit provisions relating to protections to be afforded 
     to volunteers pending further study, planning, and evaluation 
     of the appropriate functions to be performed by volunteers 
     and the conditions under which their services would be 
     accepted.
     Recognition of members of the Monuments, Fine Arts, and 
         Archives program of the Civil Affairs and Military 
         Government Sections of the Armed Forces during and 
         following World War II (sec. 599)
       The House bill contained a provision (sec. 575) that would 
     recognize the men and women who served in the Monuments, Fine 
     Arts, and Archives program under the Civil Affairs and 
     Military Government sections of the United States armed 
     forces for their role in the preservation, protection, and 
     restitution of monuments, works of art, and other artifacts 
     of cultural importance in Europe and Asia during and 
     following World War II.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                   Legislative Provisions Not Adopted

     Cold War Victory Medal
       The House bill contained a provision (sec. 556) that would 
     require the service secretaries to issue a Cold War Victory 
     Medal to former service members who served during the Cold 
     War.
       The Senate amendment contained no similar provision.
       The House recedes.
     Combat veterans mentoring program for current members of the 
         Armed Forces
       The House bill contained a provision (sec. 574) that would 
     require the Secretary of Defense to establish a program that 
     would provide combat veterans the opportunity to meet and 
     mentor current members of the Armed Forces before, during, 
     and after deployments.
       The Senate amendment contained no similar provision.
       The House recedes.

[[Page 32946]]


     Emergency assistance for local educational agencies enrolling 
         military dependent children
       The Senate amendment contained a provision (sec. 566) that 
     would authorize the Secretary of Defense to provide 
     assistance to eligible local educational agencies for the 
     additional education, counseling, and other needs of military 
     dependent children who are affected by war-related action.
       The House bill contained no similar provision.
       The Senate recedes.
     Establishment of Combat Medevac Badge
       The House bill contained a provision (sec. 557) that would 
     amend chapter 537 of title 10, United States Code, to require 
     the service secretaries to issue a badge to be known as the 
     Combat Medevac Badge to service members who served in combat 
     after June 25, 1950, as a pilot or crew member of a 
     helicopter medical evacuation ambulance and who meet the 
     requirements for the award of that badge, as prescribed by 
     the secretary concerned.
       The Senate amendment contained no similar provision.
       The House recedes.
     Expansion of exclusion of military permanent professors from 
         strength limitations for officers below general and flag 
         grades
       The Senate amendment contained a provision (sec. 503) that 
     would amend section 523(b) of title 10, United States Code, 
     to increase from 50 to 85 the number of permanent professors 
     for each of the United States Military Academy, and the 
     United States Air Force Academy and professors of the United 
     States Navy who are career military professors who may be 
     excluded from the authorized number of commissioned officers 
     who may be serving on active duty in that grade.
       The House bill contained no similar provision.
       The Senate recedes.
     Heavily impacted local educational agencies
       The Senate amendment contained a provision (sec. 565) that 
     would require the Secretary of Education to deem each local 
     educational agency that was eligible to receive a fiscal year 
     2007 basic support payment for heavily impacted local 
     educational agencies under section 8003(b)(2) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7703(b)(2)) as eligible to receive a basic support payment 
     for heavily impacted local educational agencies for the 
     fiscal year for which the determination is made.
       The House bill contained no similar provision.
       The Senate recedes.
     Navy Senior Reserve Officers' Training Corps program at 
         University of Miami, Coral Gables, Florida
       The House bill contained a provision (sec. 528) that would 
     authorize the Secretary of the Navy to establish and maintain 
     a Navy Senior Officers' Training Corps program at the 
     University of Miami, Coral Gables, Florida.
       The Senate amendment contained no similar provision.
       The House recedes.
     Prohibition on the unauthorized use of names and images of 
         members of the Armed Forces
       The House bill contained a provision (sec. 582) that would, 
     except when authorized by an individual or the individual's 
     survivor, prohibit the knowing use of the name or picture of 
     a current or former service member in connection with any 
     merchandise, retail product, impersonation, solicitation, or 
     commercial activity in a manner reasonably calculated to 
     connect the protected individual with that individual's 
     service in the armed forces.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees direct the Secretary of Defense to conduct a 
     study on the issue of protecting the use of names and images 
     of current and former members of the armed services, both 
     living and deceased. This study should include an analysis of 
     the legal issues related to the limitations placed on the use 
     of the names and images of these current and former military 
     personnel by non-U.S. Government entities. This study should 
     specifically address the use of these names and images on 
     commercial products and merchandise as well as the privacy 
     rights of the service members and their family and next of 
     kin in association with this use. The study should also 
     include options and recommendations for protecting service 
     members' names and images. The Secretary shall submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives a report on the results of this study not 
     later than 90 days after the enactment of this Act. In 
     addition, the conferees have asked the Congressional Research 
     Service to do a similar study in order to obtain multiple 
     legal viewpoints on this important topic.
       It is the sense of the conferees that the commercial use of 
     names and images of deceased service members should be 
     treated with respect and dignity, and that individuals should 
     take into account the feelings of the family and next-of-kin 
     of those service members when using their names and images, 
     especially if the family members have requested that their 
     son or daughter's name and/or image not be used.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

     Fiscal year 2008 increase in military basic pay (sec. 601)
       The House bill contained a provision (sec. 601) that would 
     authorize a pay raise for the members of the uniformed 
     services of 3.5 percent effective on January 1, 2008. This 
     across-the-board pay raise is 0.5 percent above the budget 
     request.
       The Senate amendment contained a similar provision (sec. 
     601).
       The House recedes.
     Basic allowance for housing for reserve component members 
         without dependents who attend accession training while 
         maintaining a primary residence (sec. 602)
       The House bill contained a provision (sec. 602) that would 
     authorize unmarried reserve component members without 
     dependents to receive basic allowance for housing while 
     attending initial training following accession, provided that 
     the member maintains a permanent residence.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Extension and enhancement of authority for temporary lodging 
         expenses for members of the armed forces in areas subject 
         to major disaster declaration or for installations 
         experiencing sudden increase in personnel levels (sec. 
         603)
       The Senate amendment contained a provision (sec. 605) that 
     would increase from 20 to 60 the maximum number of days the 
     secretary of a military department may pay temporary lodging 
     expenses associated with changes of permanent station 
     involving installations located in an area subject to a 
     declaration of major disaster or experiencing a sudden 
     increase in personnel moving to or from that installation.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Income replacement payments for reserve component members 
         experiencing extended and frequent mobilization for 
         active duty service (sec. 604)
       The House bill contained a provision (sec. 603) that would 
     clarify the eligibility criteria for payments under the 
     reserve income replacement program. The provision would 
     change the method for measuring cumulative periods of 
     qualifying service by counting cumulative days, rather than 
     months. The provision would also authorize the continuation 
     of income replacement payments in the case of service members 
     who are retained on active duty to receive authorized medical 
     care or to be evaluated for disability.
       The Senate amendment contained a similar provision (sec. 
     681).
       The Senate recedes with a technical amendment.
     Midmonth payment of basic pay for contributions of members of 
         the uniformed services participating in Thrift Savings 
         Plan (sec. 605)
       The House bill contained a provision (sec. 604) that would 
     authorize the Department of Defense to make midmonth 
     contributions to the Thrift Savings Fund on behalf of members 
     of the uniformed services who participate in the Thrift 
     Savings Plan.
       The Senate amendment contained a similar provision (sec. 
     603).
       The Senate recedes with a technical amendment.

           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 2 years the authority to pay the Selected Reserve 
     reenlistment 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) that would extend for 1 year the authority to pay the 
     same bonus and special pay authorities.
       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 for 2 years the authority to pay the nurse officer 
     candidate accession bonus; the repayment of education loans 
     for certain health professionals who serve in the Selected 
     Reserve; the accession bonus for registered nurses; incentive 
     special pay for nurse anesthetists; special pay for Selected 
     Reserve health professionals in critically short wartime 
     specialities; the accession bonus for dental officers; the 
     accession bonus for pharmacy officers; the accession bonus

[[Page 32947]]

     for medical officers in critically short wartime specialties; 
     and the accession bonus for dental specialist officers in 
     critically short wartime specialities.
       The Senate amendment contained a similar provision (sec. 
     612) that would extend for 1 year the authority to pay the 
     same bonus and special pay authorities.
       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 2 years 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 a similar provision (sec. 
     613) that would extend for 1 year the authority to pay the 
     same special pay and bonus authorities.
       The House recedes.
     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 2 years the authority to pay the aviation officer 
     retention bonus; the reenlistment bonus for active members; 
     the enlistment bonus; the retention bonus for members with 
     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 
     speciality to ease personnel shortage; the accession bonus 
     for officer candidates; and the Army referral bonus. The 
     provision would extend for 1 year the authority to pay the 
     assignment incentive pay and the incentive bonus for transfer 
     between the armed forces.
       The Senate amendment contained a similar provision (sec. 
     614) that would extend for 1 year the authority to pay the 
     aviation officer retention bonus; the reenlistment bonus for 
     active members; the enlistment bonus; the retention bonus for 
     members with 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 speciality to ease personnel shortage; 
     and the accession bonus for officer candidates. The Senate 
     extended for 1 year the authority to pay the Army referral 
     bonus in a separate provision (sec. 622).
       The House recedes with an amendment that would extend for 1 
     year the prohibition against requiring certain injured 
     service members to pay for meals provided by military 
     treatment facilities.
     Increase in incentive special pay and multiyear retention 
         bonus for medical officers (sec. 615)
       The House bill contained a provision (sec. 615) that would 
     increase the maximum annual rate of incentive special pay and 
     the multiyear retention bonus for medical officers from 
     $50,000 to $75,000.
       The Senate amendment contained a similar provision (sec. 
     615).
       The Senate recedes with a technical amendment.
     Increase in dental officer additional special pay (sec. 616)
       The House bill contained a provision (sec. 616) that would 
     increase the maximum annual amounts of additional special pay 
     for dental officers to $10,000 for officers with less than 3 
     years of creditable service and $12,000 for officers with 
     more than 3 but less than 10 years of creditable service.
       The Senate amendment contained a similar provision (sec. 
     616).
       The House recedes with a technical amendment.
     Increase in maximum monthly rate of hardship duty pay and 
         authority to provide hardship duty pay in a lump sum 
         (sec. 617)
       The House bill contained a provision (sec. 624) that would 
     raise the maximum monthly amount of hardship duty pay to 
     $1500. The provision would also authorize the payment of 
     hardship duty pay in a lump sum.
       The Senate amendment contained a similar provision (sec. 
     617).
       The House recedes with a technical amendment.
     Definition of sea duty for career sea pay to include service 
         as off-cycle crewmembers of multi-crew ships (sec. 618)
       The House bill contained a provision (sec. 617) that would 
     authorize off-cycle crewmembers of multi-crewed ships to be 
     eligible for career sea pay.
       The Senate amendment contained a similar provision (sec. 
     618).
       The Senate recedes with a technical amendment.
     Reenlistment bonus for members of the Selected Reserve (sec. 
         619)
       The House bill contained a provision (sec. 618) that would 
     provide the Department of Defense with more flexibility in 
     administering the reenlistment bonus. The provision would 
     eliminate the 3- and 6-year options currently in law and 
     require only that the period of reenlistment be at least 3 
     years. Similarly, the provision would eliminate the tiered 
     bonus structure and require only that the bonus not exceed 
     $15,000.
       The Senate amendment contained a similar provision (sec. 
     619).
       The Senate recedes with a technical amendment.
     Availability of Selected Reserve accession bonus for persons 
         who previously served in the armed forces for a short 
         period (sec. 620)
       The House bill contained a provision (sec. 619) that would 
     authorize payment of a Selected Reserve enlistment bonus to 
     persons who had enlisted previously, but were unable to 
     complete basic training requirements due to circumstances 
     beyond their control and were separated under conditions 
     characterized as either honorable or uncharacterized.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees believe that the Department of Defense should 
     limit its use of this authority to cases where the former 
     service member was separated from the military through no 
     fault of his or her own, such as an injury, family medical 
     emergency, or other case of hardship that forced the service 
     member to separate prematurely.
     Availability of nuclear officer continuation pay for officers 
         with more than 26 years of commissioned service (sec. 
         621)
       The House bill contained a provision (sec. 620) that would 
     extend eligibility for nuclear officer continuation pay from 
     26 to 30 years of commissioned service.
       The Senate amendment contained a similar provision (sec. 
     620).
       The Senate recedes with an amendment that would authorize 
     revision of agreements for nuclear officer continuation pay 
     that were entered into before the date of the enactment of 
     this Act.
     Waiver of years-of-service limitation on receipt of critical 
         skills retention bonus (sec. 622)
       The House bill contained a provision (sec. 621) that would 
     authorize the Secretary of Defense, or the Secretary of 
     Homeland Security with respect to the Coast Guard when it is 
     not operating as a service in the Navy, to waive the 25-year 
     service limitation on eligibility to receive the retention 
     bonus for certain members with designated critical military 
     skills.
       The Senate amendment contained a similar provision (sec. 
     621).
       The Senate recedes.
     Accession bonus for participants in the Armed Forces Health 
         Professions Scholarship and Financial Assistance Program 
         (sec. 623)
       The House bill contained a provision (sec. 622) that would 
     authorize the Secretary of Defense to pay an accession bonus 
     of not more than $20,000 to participants in the Armed Forces 
     Health Professions Scholarship and Financial Assistance 
     Program (HPSP).
       The Senate amendment contained a similar provision (sec. 
     624).
       The House recedes with a technical amendment.
       The conferees direct the Comptroller General of the United 
     States to report to the congressional defense committees by 
     April 1, 2008 on the number of HPSP participants who do not 
     enter onto active duty following completion of the program of 
     studies for which they were enrolled under HPSP, including 
     the extent to which the military departments have sought and 
     received reimbursement for stipends paid under section 
     2121(d) of title 10, United States Code, or annual grants 
     paid for specialized training under section 2127(e) of title 
     10, United States Code.
     Payment of assignment incentive pay for reserve members 
         serving in combat zone for more than 22 months (sec. 624)
       The House bill contained a provision (sec. 623) that would 
     authorize the secretaries of the military departments to pay 
     $1,000 per month in assignment incentive pay to members of 
     the reserve components serving in combat zones associated 
     with Operations Enduring Freedom and Iraqi Freedom once the 
     member exceeds 22 cumulative months of service on active duty 
     under either a voluntary mobilization authority, the 
     presidential Selected Reserve call-up authority, or the 
     partial mobilization authority. Qualifying service under this 
     provision would include cumulative mobilized service during 
     the period beginning on January 1, 2003 through the end of 
     the member's most recent period of mobilization to active 
     duty beginning before January 19, 2007.
       The Senate amendment contained no similar provision.
       The Senate recedes.

            Subtitle C--Travel and Transportation Allowances

     Payment of inactive duty training travel costs for certain 
         Selected Reserve members (sec. 631)
       The House bill contained a provision (sec. 635) that would 
     authorize the secretary of a military service to reimburse 
     members of the Selected Reserve who occupy a specialty 
     designated by the secretary concerned for travel expenses 
     while performing inactive duty training outside the commuting 
     limits of the member's station. The maximum rate would not 
     exceed $300.
       The Senate amendment contained a similar provision (sec. 
     604) that would authorize reimbursement for travel expenses 
     to an inactive duty training location outside of normal 
     commuting distances for members of the Selected Reserve who 
     are (1) qualified in a skill designated as critically short; 
     (2) assigned to a unit of the Selected Reserve, or

[[Page 32948]]

     in a pay grade, with a critical manpower shortage; or (3) 
     assigned to a unit or position that is disestablished or 
     relocated as a result of defense base closure or realignment 
     or other force structure allocation.
       The House recedes with a technical amendment.
     Survivors of deceased members eligible for transportation to 
         attend burial ceremonies (sec. 632)
       The Senate amendment contained a provision (sec. 656) that 
     would extend the travel and transportation allowance to 
     attend burial ceremonies of deceased service members under 
     section 411f of title 37, United States Code, to minor 
     siblings of deceased service members and the person who 
     directs the disposition of the remains of the deceased 
     service member.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend the 
     travel and transportation allowance to the child or children 
     of the deceased member and to the sibling or siblings of the 
     deceased service member, regardless of age.
     Allowance for participation of reserves in electronic 
         screening (sec. 633)
       The House bill contained a provision (sec. 631) that would 
     authorize the secretaries of the military services to pay a 
     member of the Individual Ready Reserve a stipend for 
     participation in electronic screening performed pursuant to 
     the continuous screening required by section 10149 of title 
     10, United States Code. The aggregate amount of the stipend 
     paid to a member may not exceed $50 in any calendar year.
       The Senate amendment contained a similar provision (sec. 
     602).
       The House recedes.
     Allowance for civilian clothing for members of the armed 
         forces traveling in connection with medical evacuation 
         (sec. 634)
       The House bill contained a provision (sec. 632) that would 
     authorize service members to use some or all of the civilian 
     clothing allowance authorized by section 1047 of title 10, 
     United States Code, to purchase luggage at government expense 
     when traveling in connection with a medical evacuation.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Payment of moving expenses for Junior Reserve Officers' 
         Training Corps instructors in hard-to-fill positions 
         (sec. 635)
       The House bill contained a provision (sec. 633) that would 
     authorize the secretary of a military department to reimburse 
     educational institutions for moving expenses paid to Junior 
     Reserve Officers' Training Corps instructors when the 
     secretary concerned determines the position is hard-to-fill 
     for geographic or economic reasons, and the instructor agrees 
     to serve in the position for 2 years.
       The Senate amendment contained a similar provision (sec. 
     642).
       The House recedes with a technical amendment.

             Subtitle D--Retired Pay and Survivor Benefits

     Expansion of combat-related special compensation eligibility 
         (sec. 641)
       The House bill contained a provision (sec. 645) that would 
     authorize disabled military retirees with fewer than 20 years 
     of service to receive combat-related special compensation 
     under section 1413a of title 10, United States Code, provided 
     they served a minimum of 15 years of creditable service and 
     have a disability rated at least 60 percent disabling.
       The Senate amendment contained a similar provision (sec. 
     653) that would expand eligibility of combat-related special 
     compensation to all service members eligible for retirement 
     pay who have a combat-related disability, including service 
     members who were retired under chapter 61 of title 10, United 
     States Code.
       The House recedes with a technical amendment.
     Inclusion of veterans with service-connected disabilities 
         rated as total by reason of unemployability under 
         termination of phase-in of concurrent receipt of retired 
         pay and veterans' disability compensation (sec. 642)
       The Senate amendment contained a provision (sec. 660) that 
     would authorize veterans with service-connected disabilities 
     rated as total due to unemployability to receive concurrent 
     receipt of retired pay and veterans' disability compensation 
     as of December 31, 2004.
       The House bill contained no similar provision.
       The House recedes with an amendment that would restrict 
     payments under this provision until October 1, 2008.
     Recoupment of annuity amounts previously paid, but subject to 
         offset for Dependency and Indemnity Compensation (sec. 
         643)
       The House bill contained a provision (sec. 643) that would 
     require that any Survivor Benefit Plan (SBP) payments 
     previously paid to a surviving spouse or former spouse that 
     are subject to the mandatory offset associated with payments 
     of Dependency and Indemnity Compensation by the Department of 
     Veterans Affairs be recouped only to the extent that the 
     amount exceeds any SBP premiums to be refunded by the 
     Department of Defense. In addition, the provision would 
     specify a series of actions to protect the interests of 
     surviving spouses who are subject to the offset, including: 
     (1) a single written notice of the net amount to be recouped; 
     (2) a written explanation of the statutory requirements for 
     recoupment; (3) a detailed accounting of the calculations 
     used to determine the amount to be recouped; and (4) contact 
     information for a person who can provide information and 
     respond to questions regarding the recoupment action.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Special survivor indemnity allowance for persons affected by 
         required Survivor Benefit Plan annuity offset for 
         Dependency and Indemnity Compensation (sec. 644)
       The House bill contained a provision (sec. 644) that would 
     authorize a survivor indemnity allowance to surviving spouses 
     or former spouses of deceased service members who are denied 
     the full amount of their annuity under the Survivor Benefit 
     Plan (SBP) due to the offset required by the receipt of 
     Dependency and Indemnity Compensation (DIC) from the 
     Department of Veterans Affairs. The provision would authorize 
     monthly payments equal to the lesser amount of $40 or the 
     amount of the SBP annuity subject to the DIC offset. The 
     House provision would take effect October 1, 2008.
       The Senate amendment contained a provision (sec. 658) that 
     would eliminate the offset of the SBP annuity by the amount 
     of DIC.
       The Senate recedes with an amendment that would limit the 
     survivor indemnity allowance to survivors of service members 
     who were entitled to retired pay, or would be entitled to 
     reserve component retired pay but for the fact they were not 
     yet 60 years of age, would increase the monthly allowance for 
     fiscal year 2009 to $50, and would increase the monthly 
     allowance by $10 every year through fiscal year 2013.
     Modification of authority of members of the armed forces to 
         designate recipients for payment of death gratuity (sec. 
         645)
       The House bill contained a provision (sec. 642) that would 
     amend section 1477 of title 10, United States Code, to allow 
     a service member to designate any individual to receive up to 
     50 percent of the death gratuity benefit in 10 percent 
     increments.
       The Senate amendment contained a provision (sec. 651) that 
     would allow a service member to designate in writing any 
     individual to receive the death gratuity benefit. In the 
     absence of such a designation, the death gratuity would be 
     paid in accordance with the succession set forth in section 
     1970 of title 38, United States Code, relating to 
     Servicemembers' Group Life Insurance (SGLI).
       The House recedes with an amendment that would make the 
     provision effective no later than July 1, 2008; provide for 
     spousal notification if an election were made under this 
     authority that would exclude a current spouse from any 
     portion of the death gratuity benefit; provide for partial 
     designations in 10 percent increments; and provide that 
     elections made under section 1477 of title 10, United States 
     Code, before the enactment of this provision, or before 
     enactment of the amendments to that section by section 1316 
     of the U.S. Troop Readiness, Veterans' Care, Katrina 
     Recovery, and Iraq Accountability Appropriations Act, 2007 
     (Public Law 110-28), would remain lawful and effectual.
       The conferees believe that service members have the duty 
     and should have the discretion to designate beneficiaries of 
     their choosing for receipt of the death gratuity. The 
     conferees view the SGLI and its statutory basis, as set forth 
     in section 1970 of title 38, United States Code, as the 
     appropriate model for the administration of the death 
     gratuity benefit. The conferees expect the Department of 
     Defense and the services to implement these changes swiftly 
     and to use all appropriate measures to ensure that service 
     members are informed about this important survivor benefit 
     and receive the assistance necessary to make this important 
     designation.
     Clarification of application of retired pay multiplier 
         percentage to members of the uniformed services with over 
         30 years of service (sec. 646)
       The Senate amendment contained a provision (sec. 654) that 
     would authorize, in the case of an individual who became a 
     member of the armed services prior to September 8, 1980, and 
     who was recalled to active duty for a period of more than 2 
     years, recomputation of that member's retired pay according 
     to the provisions of section 1409 of title 10, United States 
     Code. The provision would also amend section 6333 of title 
     10, United States Code, to conform that section to the 
     provisions of section 1409 of title 10, United States Code.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

[[Page 32949]]


     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 (sec. 647)
       The Senate amendment contained a provision (sec. 655) that 
     would reduce the age at which a member of the Ready Reserve 
     could draw retired pay below the age of 60 by 3 months for 
     every aggregate 90 days of active duty performed since 
     September 11, 2001 under certain mobilization authorities. 
     Under this provision, a member of the Ready Reserve could not 
     reduce the age at which they draw retired pay below the age 
     of 50.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     applicability of the provision to service performed after the 
     date of enactment of this Act.
     Computation of years of service for purposes of retired pay 
         for non-regular service (sec. 648)
       The Senate amendment contained a provision (sec. 661) that 
     would increase to 130 the annual number of inactive duty 
     points that may be credited toward the computation of retired 
     pay for non-regular service.
       The House bill contained no similar provision.
       The House recedes.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

     Authority to continue commissary and exchange benefits for 
         certain involuntarily separated members of the armed 
         forces (sec. 651)
       The House bill contained a provision (sec. 652) that would 
     authorize members involuntarily separated from active duty or 
     the Selected Reserve to continue to use commissary and 
     exchange stores for 2 years after separation. This authority 
     would expire on December 31, 2012.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authorization of installment deductions from pay of employees 
         of nonappropriated fund instrumentalities to collect 
         indebtedness to the United States (sec. 652)
       The House bill contained a provision (sec. 653) that would 
     clarify that executive branch instrumentalities have the same 
     access to procedures for collection of debts from federal 
     civilian employees as do judicial and legislative branch 
     instrumentalities under section 5514 of title 5, United 
     States Code.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify 
     that nonappropriated fund instrumentalities have access to 
     the debt collection procedures of section 5514 of title 5, 
     United States Code, and that employees of nonappropriated 
     fund instrumentalities are subject to those provisions.

  Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus 
                              Authorities

     Consolidation of special pay, incentive pay, and bonus 
         authorities of the uniformed services (sec. 661)
       The House bill contained a provision (sec. 661) that would 
     reform and consolidate over 60 special pays and incentive 
     pays into the following eight categories: (1) bonuses for 
     enlisted members; (2) bonuses for officers; (3) bonuses and 
     incentive pays for nuclear officers; (4) bonuses and 
     incentive pays for aviation officers; (5) bonuses and 
     incentive pays for officers in health professions; (6) 
     hazardous duty pays; (7) assignment pays and special duty 
     pays; and (8) skill incentive pays and proficiency bonuses. 
     The provision would also retain separate authorities for 15-
     year career status bonuses, critical skill retention bonuses, 
     and the continuation of combat zone-related pays and 
     allowances for members hospitalized as a result of combat-
     related wounds, injuries, or illnesses.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would set 
     expiration dates of December 31, 2009 for all the new 
     categories of pays and would clarify the maximum amounts 
     allowable for the various pays under the new authority.
     Transitional provisions (sec. 662)
       The House bill contained a provision (sec. 662) that would 
     require the Secretary of Defense to develop, in coordination 
     with the Secretary of Homeland Security, the Secretary of 
     Health and Human Services, and the Secretary of Commerce, a 
     plan to implement the consolidation of special pays, 
     incentive pays, and bonus authorities and to submit the plan 
     to the congressional defense committees within 1 year of the 
     date of enactment of this Act. The provision would also 
     provide for an orderly transfer to the new authorities that 
     would be implemented on a pace set by the Secretary of 
     Defense with full implementation required within 10 years 
     after the date of enactment of this Act.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to submit to the congressional defense 
     committees a notice of the implementation of any new 
     authority at least 30 days before the new authority is first 
     used.

                       Subtitle G--Other Matters

     Referral bonus authorities (sec. 671)
       The House bill contained a provision (sec. 605) that would 
     authorize an Army referral bonus to be paid to a service 
     member or civilian employee of the Department of the Army who 
     refers an officer candidate who is later appointed as an 
     officer in a health profession designated by the Secretary of 
     the Army.
       The Senate amendment contained similar provisions (secs. 
     622 and 623) that would authorize the service secretaries to 
     approve a referral bonus for officer candidates in the health 
     professions for all the military services, codify existing 
     authority for the Army to pay a referral bonus to a service 
     member or civilian employee who refers a person to the Army 
     who enlists in a regular or reserve component, and extend the 
     authority to pay this bonus through December 31, 2008.
       The House recedes with an amendment that would give the 
     Secretary of Defense discretionary authority to approve 
     payment by the Army, Navy, or Air Force of a bonus to 
     encourage Department of Defense personnel to refer persons 
     for appointment as officers to serve in a health profession.
     Expansion of education loan repayment program for members of 
         the Selected Reserve (sec. 672)
       The House bill contained a provision (sec. 671) that would 
     include additional types of loans incurred for educational 
     purposes by members of the Selected Reserve that would be 
     eligible for repayment by the Department of Defense. The 
     provision would also make both officer and enlisted personnel 
     eligible for loan repayment under this program.
       The Senate amendment contained a similar provision (sec. 
     672).
       The Senate recedes.
     Ensuring entry into United States after time abroad for 
         permanent resident alien military spouses and children 
         (sec. 673)
       The House bill contained a provision (sec. 672) that would 
     allow permanent resident alien spouses and children of 
     service members stationed abroad under official orders to 
     gain readmission to the United States without their time 
     overseas being treated under the Immigration and Nationality 
     Act as abandonment or relinquishment of lawful permanent 
     resident status or as an absence for the purposes of 
     establishing citizenship.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Overseas naturalization for military spouses and children 
         (sec. 674)
       The House bill contained a provision (sec. 673) that would 
     allow certain permanent-resident spouses and children of 
     members of the armed forces who reside in foreign countries 
     to be naturalized. Under the provision, upon compliance with 
     other requirements of the Immigration and Nationality Act, 
     the spouse or child's physical presence in a foreign country 
     while accompanying the member would be treated as residence 
     in the United States or any State for the purpose of 
     satisfying the continuous presence requirements of the Act.
       The Senate amendment contained a similar provision (sec. 
     682).
       The Senate recedes with a technical amendment.
     Modification of amount of back pay for members of Navy and 
         Marine Corps selected for promotion while interned as 
         prisoners of war during World War II to take into account 
         changes in Consumer Price Index (sec. 675)
       The Senate amendment contained a provision (sec. 686) that 
     would amend section 667 of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 (Public Law 
     106-398) to modify the method by which the Secretary of the 
     Navy calculates back pay owed to former service members who 
     by reason of being interned as prisoners of war were unable 
     to accept a promotion for which they had been selected. The 
     provision would require the calculation to account for 
     changes in the Consumer Price Index.
       The House bill contained no similar amendment.
       The House recedes.

                   Legislative Provisions Not Adopted

     Access to defense commissary and exchange system by surviving 
         spouse and dependents of certain disabled veterans
       The House bill contained a provision (sec. 651) that would 
     require the Secretary of Defense to revise regulations to 
     ensure access to the defense commissary and exchange system 
     by the surviving spouse and dependents of a veteran who had a 
     service-connected disability rated at 100 percent or total, 
     although the disability rating was awarded posthumously.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees believe that the change in the regulations 
     needed to appropriately recognize surviving spouses and 
     dependents of veterans who are posthumously determined to 
     have service-connected disabilities rated at 100 percent can 
     be accomplished without legislation. Accordingly, the 
     conferees direct the Secretary of Defense to revise the 
     Department of Defense regulations to provide such family 
     members access to the defense commissary and exchange system.

[[Page 32950]]


     Annuities for guardians or caretakers of dependent children 
         under Survivor Benefit Plan
       The Senate amendment contained a provision (sec. 652) that 
     would allow an unmarried service member with a dependent 
     child or children to elect, at the time of retirement, a 
     guardian or caretaker of that dependent child or children as 
     the beneficiary of the service member's Survivor Benefit Plan 
     annuity.
       The House bill contained no similar provision.
       The Senate recedes.
     Disregarding periods of confinement of member in determining 
         benefits for dependents who are victims of abuse by the 
         member
       The House bill contained a provision (sec. 641) that would 
     amend section 1408 of title 10, United States Code, to 
     require the secretary concerned to consider as credible 
     service for purposes of determining retirement eligibility 
     any periods of confinement served by a member before 
     convening authority action on a record of trial regarding the 
     member's conviction of an offense involving abuse of a spouse 
     or dependent child
       The Senate amendment contained no similar provision.
       The House recedes.
     Effective date of paid-up coverage under Survivor Benefit 
         Plan
       The Senate amendment contained a provision (sec. 659) 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, 
     2007.
       The House bill contained no similar provision.
       The Senate recedes.
     Guaranteed pay increase for members of the armed forces of 
         one-half of one percentage point higher than Employment 
         Cost Index
       The House bill contained a provision (sec. 606) that would 
     mandate that pay raises for all service members during fiscal 
     years 2009 through 2012 be one-half of 1 percent higher than 
     the annual rise in the Employment Cost Index.
       The Senate amendment contained no similar provision.
       The House recedes.
     Payment of expenses of travel to the United States for 
         obstetrical purposes of dependents located in very remote 
         locations outside the United States
       The Senate amendment contained a provision (sec. 641) that 
     would authorize the Secretary of Defense to pay travel 
     expenses for purposes of childbirth to a location in the 
     United States of a pregnant dependent of a service member 
     assigned to a very remote location outside the United States.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees direct the Secretary of Defense to conduct a 
     review, in consultation with the Chairman of the Joint Chiefs 
     and the combatant commanders, of the quality of life 
     challenges confronted by military families at remote overseas 
     locations. The review should include a review of current 
     policies and procedures regarding the delivery of obstetrical 
     care provided to medical beneficiaries. In particular, the 
     Secretary should compare and contrast the current policy of 
     transporting pregnant women to centrally located government 
     medical facilities with a policy of providing women the 
     opportunity to return to the United States to give birth. The 
     Secretary should report the findings and recommendations to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives not later than June 30, 2008.
     Postal benefits program for members of the armed forces 
         serving in Iraq or Afghanistan
       The House bill contained a provision (sec. 674) that would 
     require the Secretary of Defense, in consultation with the 
     United States Postal Service, to provide a postal benefits 
     program to service members serving in Iraq or Afghanistan, or 
     who are hospitalized in a Department of Defense facility as a 
     result of service in Iraq or Afghanistan.
       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. 634) that would 
     authorize service members with at least one dependent of 
     driving age to ship two privately owned vehicles during 
     permanent change of station moves to nonforeign duty 
     locations outside the continental United States.
       The Senate amendment contained no similar provision.
       The House recedes.

                   TITLE VII--HEALTH CARE PROVISIONS

          Subtitle A--Improvements to Military Health Benefits

     One-year extension of prohibition on increases in certain 
         health care costs for members of the uniformed services 
         (sec. 701)
       The House bill contained a provision (sec. 701) that would 
     extend the prohibition established by the John Warner 
     National Defense Authorization Act for Fiscal Year 2007 
     (Public Law 109-364) on the Department of Defense from 
     increasing the premium, deductible, and copayment for TRICARE 
     Prime; the charge for inpatient care for TRICARE Standard; 
     and the premium for TRICARE Reserve Select and TRICARE 
     Standard for members of the Selected Reserve during the 
     period from October 1, 2007, to September 30, 2008.
       The Senate amendment contained a similar provision (sec. 
     713).
       The House recedes with a technical amendment.
       The conferees believe that the Department of Defense and 
     the Nation have an obligation to provide health care benefits 
     to active duty, National Guard, reserve, and retired members 
     of the uniformed services and their families, disabled 
     eligibles, and survivors. Additionally, the Department has 
     options to constrain the growth of health care spending in 
     ways that do not disadvantage retired members of the 
     uniformed services who have faithfully fulfilled the demands 
     of 20 to 30 year careers.
       The conferees urge the Department to continue to identify 
     opportunities to improve the quality and effectiveness of the 
     military health care system through improved performance and 
     health care outcomes. The conferees believe that any increase 
     in TRICARE program cost sharing should be made only after 
     implementation of improvements in the health care program, 
     after consideration of the comprehensive reports mandated by 
     Congress in sections 711 and 713 of the John Warner National 
     Defense Authorization Act for Fiscal Year 2007 (Public Law 
     109-364), and following consultation with military 
     beneficiary advocates.
     Temporary prohibition on increase in copayments under retail 
         pharmacy system of pharmacy benefits program (sec. 702)
       The House bill contained a provision (sec. 702) that would 
     limit the cost sharing requirements for drugs provided 
     through the TRICARE retail pharmacy program to amounts not 
     more than $3 for generic drugs, $9 for formulary drugs, and 
     $22 for non-formulary drugs during fiscal year 2008.
       The Senate amendment contained an identical provision (sec. 
     714). The conference agreement includes this provision.
     Inclusion of TRICARE retail pharmacy program in federal 
         procurement of pharmaceuticals (sec. 703)
       The House bill contained a provision (sec. 703) that would 
     authorize the Secretary of Defense to exclude from the 
     pharmacy benefits program any pharmaceutical agent that is 
     not priced consistent with the pricing set forth under 
     section 8126 of title 38, United States Code.
       The Senate amendment contained a provision (sec. 701) that 
     would require that any prescription filled on or after 
     October 1, 2007 through the TRICARE retail pharmacy network 
     will be covered by the federal pricing limits applicable to 
     covered drugs under section 8126 of title 38, United States 
     Code.
       The House recedes with an amendment that would change the 
     implementation date from October 1, 2007 to the date of 
     enactment of this Act.
     Stipend for members of reserve components for health care for 
         certain dependents (sec. 704)
       The House bill contained a provision (sec. 708) that would 
     authorize the Secretary of Defense to pay a stipend for 
     continuing health care coverage to reserve members called to 
     active duty with a dependent possessing a special health care 
     need that would best be met by remaining in the member's 
     civilian health plan.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     program to be implemented pursuant to regulations issued by 
     the Secretary.
       The conferees intend that the stipend should be available 
     to eligible dependents regardless of whether their civilian 
     health plan is provided by private employers or the Federal 
     Government.
     Authority for expansion of persons eligible for continued 
         health benefits coverage (sec. 705)
       The Senate amendment contained a provision (sec. 706) that 
     would authorize the Secretary of Defense to expand 
     eligibility for continued health benefits coverage authorized 
     in section 1078a of title 10, United States Code, for 
     additional persons specified in regulations by the Secretary 
     for not more than 36 months after such persons lose 
     entitlement to Department of Defense health care benefits.
       The House bill contained no similar provision.
       The House recedes.
     Continuation of eligibility for TRICARE Standard coverage for 
         certain members of the Selected Reserve (sec. 706)
       The Senate amendment contained a provision (sec. 707) that 
     would allow federal employees already enrolled in TRICARE 
     Reserve Select under an existing program to remain in TRICARE 
     Reserve Select through the enrollment period for which they 
     qualified under the program as in effect on October 16, 2006.
       The House bill contained no similar provision.

[[Page 32951]]

       The House recedes.
     Extension of pilot program for health care delivery (sec. 
         707)
       The House bill contained a provision (sec. 707) that would 
     extend the pilot program established by the Ronald W. Reagan 
     National Defense Authorization Act for Fiscal Year 2005 
     (Public Law 108-375) to test initiatives that build 
     cooperative health care arrangements and agreements between 
     military installations and local, regional non-military 
     health care systems.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       Two sites were selected to test the pilot program, the 
     installations at Fort Drum, New York, and Yuma, Arizona. The 
     Department of Defense provided the Committees on Armed 
     Services of the Senate and the House of Representatives with 
     an interim report on the status of these programs. The 
     conferees are pleased that the results of the report are 
     favorable and indicate that the collaborative relationships 
     created through the pilots are benefitting both military and 
     civilian health care beneficiaries and providers. The 
     conferees expect the Department to share the lessons learned 
     from these collaborative efforts with other installations and 
     expand such programs where appropriate.
     Inclusion of mental health care in definition of health care 
         and report on mental health care services (sec. 708)
       The Senate amendment contained a provision (sec. 708) that 
     would clarify the Secretary of Defense's authority to 
     determine the appropriate payment amounts for mental health 
     services under the TRICARE program. This provision would also 
     require the Secretary to report to the Committees on Armed 
     Services of the Senate and the House of Representatives on 
     the adequacy of access to mental health services under the 
     TRICARE program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     mental health care is in the definition of health care under 
     section 1072 of title 10, United States Code.
       The conferees intend that the Secretary will carefully 
     examine the adequacy of mental health payments under 
     contracts for care so as to ensure that TRICARE payment rates 
     are not a barrier to access to mental health services for 
     eligible Department of Defense beneficiaries.

                    Subtitle B--Studies and Reports

     Surveys on continued viability of TRICARE Standard and 
         TRICARE Extra (sec. 711)
       The Senate amendment contained a provision (sec. 702) that 
     would extend through 2011 the requirement for the Secretary 
     of Defense to conduct surveys to determine health care and 
     mental health care provider acceptance of the TRICARE 
     Standard and TRICARE Extra benefit. The provision would 
     require surveys of beneficiaries in addition to surveys of 
     providers and would require the Secretary to establish 
     benchmarks for primary and specialty care providers, to 
     determine the adequacy of providers available. The provision 
     would also require the Comptroller General of the United 
     States to review the processes, procedures, and analyses used 
     by the Department of Defense to determine the adequacy of the 
     number of health care and mental health care providers 
     available to beneficiaries, and to report on the results of 
     this review to the Committees on Armed Services of the Senate 
     and the House of Representatives on a biannual basis.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     requirement for a supervising official to be designated to 
     oversee the adequacy and accessibility of the TRICARE 
     Standard and TRICARE Extra programs. The amendment would also 
     require the Comptroller General to give a high priority to 
     studying areas with high concentrations of members of the 
     Selected Reserve.
       The conferees note that TRICARE Regional Offices (TRO) are 
     responsible for overseeing the adequacy and accessibility of 
     health care and mental health care services to TRICARE 
     beneficiaries in their areas. The conferees expect the TROs 
     to perform these oversight duties, paying specific attention 
     to the needs of beneficiaries in TRICARE Standard and TRICARE 
     Reserve Select.
     Report on training in preservation of remains under combat or 
         combat-related conditions (sec. 712)
       The House bill contained a provision (sec. 710) that would 
     require the Secretary of Defense to submit to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives a report on the training in preservation of 
     remains in combat or combat-related conditions required by 
     section 567 of the John Warner National Defense Authorization 
     Act for Fiscal Year 2007 (Public Law 109-364).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report on patient satisfaction surveys (sec. 713)
       The Senate amendment contained a provision (sec. 703) that 
     would require the Secretary of Defense to submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives a report on the ongoing patient satisfaction 
     surveys taking place in inpatient and outpatient settings at 
     military treatment facilities.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Report on medical physical examinations of members of the 
         armed forces before their deployment (sec. 714)
       The Senate amendment contained a provision (sec. 712) that 
     would require the Secretary of Defense to report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives by April 1, 2008, on: (1) the results of a 
     study of the frequency of medical examinations conducted by 
     the armed forces prior to deployment; (2) a comparison of 
     policies among the military departments of such medical 
     examinations; and (3) a business case analysis for a single 
     pre-deployment physical and single system for tracking 
     medical examinations.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     requirement to report on the frequency of medical 
     examinations. The amendment would require an assessment of 
     current policies and the feasibility of implementing a single 
     examination and tracking system.
     Report and study on multiple vaccinations of members of the 
         armed forces (sec. 715)
       The House bill contained a provision (sec. 713) that would 
     require the Secretary of Defense to report to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives on the Department's policies for 
     administering and evaluating multiple vaccinations of members 
     of the armed forces in a 24-hour period, including an 
     assessment of procedures to provide current information on 
     such immunizations to State Adjutants General. The provision 
     would also require the Secretary to study the safety and 
     efficacy of administering multiple vaccinations within a 24-
     hour period.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delete the 
     requirement for the Secretary to conduct a safety and 
     efficacy study.
     Review of gender- and ethnic group-specific mental health 
         services and treatment for members of the armed forces 
         (sec. 716)
       The Senate amendment contained a provision (sec. 1634) that 
     would require the Secretary of Defense and the Secretary of 
     Veterans Affairs to jointly conduct a comprehensive review 
     of: (1) the need for mental health treatment and services for 
     female members of the armed forces and veterans; and (2) the 
     efficacy and adequacy of existing mental health treatment 
     programs and services for female members of the armed forces 
     and veterans.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to conduct a comprehensive review of: 
     (1) the need for gender- and ethnic group-specific mental 
     health treatment and services for members of the armed 
     forces; and (2) the efficacy and adequacy of existing gender- 
     and ethnic group-specific mental health treatment programs 
     and services for members of the armed forces.
     Licensed mental health counselors and the TRICARE program 
         (sec. 717)
       The House bill contained a provision (sec. 706) that would 
     amend section 1079 of title 10, United States Code, to 
     authorize licensed or certified mental health counselors to 
     be reimbursed for services provided to TRICARE beneficiaries 
     without prior physician referral or supervision.
       The Senate amendment contained a provision (sec. 704) that 
     would require the Secretary of Defense to enter into a 
     contract with the Institute of Medicine of the National 
     Academy of Sciences or a similar organization to conduct an 
     independent study of individuals practicing as licensed 
     mental health counselors, social workers, and marriage and 
     family therapists under the TRICARE program and make 
     recommendations for permitting such professionals to practice 
     independently under the TRICARE program.
       The Senate recedes with an amendment that would require a 
     study of the credentials, preparation, and training of 
     individuals practicing as licensed mental health counselors 
     and would require the Secretary of Defense to establish 
     criteria that licensed or certified mental health counselors 
     would have to meet in order to be able to independently 
     provide care to TRICARE beneficiaries and receive payment 
     under the TRICARE program for such services.
       The conferees are aware that mental health counselors, in 
     contrast to the licensing practices of other health care 
     disciplines, have multiple routes to licensure. While the 
     conferees encourage the profession to work toward a single 
     certifying body or joint certification agreement, the 
     conference outcome would allow the Department of Defense to 
     create opportunities for the independent practice of licensed 
     mental health professionals who meet criteria established by 
     the

[[Page 32952]]

     Department in order to meet the immediate mental health needs 
     of service members and their families.
     Report on funding of the Department of Defense for health 
         care (sec. 718)
       The Senate amendment contained a provision (sec. 1008) that 
     would require the President to submit a report to Congress in 
     any year that the armed forces are involved in a major 
     conflict if the budget for the Department of Defense for 
     health care is less than the amount provided by Congress for 
     the preceding fiscal year or if the allocation from the 
     Defense Health Program to any military department is less 
     than the allocation in the preceding fiscal year. The report 
     would include the reason for the lesser amount or allocation 
     and the anticipated effects of the reduction.
       The House bill contained no similar provision.
       The House recedes with an amendment that would terminate 
     this provision on December 31, 2017 and would remove the 
     condition that the armed forces be involved in a major 
     conflict.

                       Subtitle C--Other Matters

     Prohibition on conversion of military medical and dental 
         positions to civilian medical and dental positions (sec. 
         721)
       The House bill contained a provision (sec. 704) that would 
     establish a permanent prohibition on the secretaries of the 
     military departments from converting any military medical or 
     dental position to a civilian medical or dental position on 
     or after October 1, 2007. This provision would also require a 
     report to the congressional defense committees on such 
     conversions made during fiscal year 2007.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     prohibition to end on September 30, 2012. The amendment would 
     also require that any military medical or dental position 
     that has been converted to a civilian medical or dental 
     position from October 1, 2004 through September 30, 2008 be 
     restored to a military medical or dental position if the 
     position is not filled by a civilian by September 30, 2008.
       The conferees are concerned that the military departments 
     have not fully addressed the certification requirements 
     contained in section 724 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364), 
     and thus lack assurance that planned conversions will not 
     increase costs, decrease access to care, decrease quality of 
     care, or negatively impact recruitment and retention of 
     military personnel.
       In addition, the conferees have learned that military to 
     civilian conversions have had a negative impact on the 
     ability of the military health system to provide health care 
     to service members and their families, have compounded the 
     impact of multiple deployments on military medical personnel, 
     and could impact adequate staffing of wounded warrior 
     transition units. The conferees are concerned that, despite 
     these concerns, the military departments have continued to 
     convert military medical positions to civilian medical 
     positions. Therefore, the conferees prohibit the conversion 
     of military medical positions to civilian positions until 
     September 30, 2012.
     Establishment of Joint Pathology Center (sec. 722)
       The House bill contained a provision (sec. 709) that would 
     require the Secretary of Defense to establish a Joint 
     Pathology Center located on the National Naval Medical Center 
     in Bethesda, Maryland. The center would function as the 
     reference center in pathology for the Department of Defense 
     and the Department of Veterans Affairs, providing services 
     in: diagnostic pathology consultation in medicine, dentistry, 
     and veterinary sciences; pathology education, to include 
     graduate medical education, including residency and 
     fellowship programs, and continuing medical education; and 
     diagnostic pathology research.
       The Senate amendment contained a similar provision (sec. 
     1095) that would allow the Secretary to establish a Joint 
     Pathology Center, to the extent that establishing such a 
     center is consistent with the recommendations of the 2005 
     Defense Base Closure and Realignment Commission.
       The Senate recedes with an amendment that would require the 
     President to establish a Joint Pathology Center.
       The conferees believe that having a Joint Pathology Center 
     performing second opinion consults is integral to pathology 
     education and residency programs and that the Federal 
     Government should continue to perform this essential mission.
       The conferees find that the recommendations of the 2005 
     Defense Base Closure and Realignment Commission Final Report 
     provide the flexibility to establish a Joint Pathology Center 
     as a Department of Defense or federal entity. The President 
     would be required to make a determination as to whether to 
     establish the Joint Pathology Center inside the Department of 
     Defense or in another agency such as the Department of Health 
     and Human Services. The conferees expect the President to 
     consider, in making his determination, whether establishing 
     the center within the Department of Defense is consistent 
     with the recommendations of the 2005 Defense Base Closure and 
     Realignment Commission.

                   Legislative Provisions Not Adopted

     Establishment of nurse practitioner program
       The House bill contained a provision (sec. 705) that would 
     require the Secretary of Defense to establish a graduate 
     education program for advanced-practice nursing at the 
     Uniformed Services University of the Health Sciences.
       The Senate amendment contained no similar provision.
       The House recedes.
     Sense of Congress on fees and adjustments under the TRICARE 
         program
       The Senate amendment contained a provision (sec. 715) that 
     would state the sense of Congress on fees and adjustments 
     under the TRICARE program.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that portions of this provision have 
     been included elsewhere in this report.
     Implementation of recommendations of Department of Defense 
         Mental Health Task Force
       The Senate amendment contained a provision (sec. 709) that 
     would require the Secretary of Defense to implement the 
     recommendations of the Department of Defense Task Force on 
     Mental Health (Task Force) as soon as practicable, but not 
     later than May 31, 2008.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees understand that the Secretary of Defense 
     intends to implement nearly all of the 95 recommendations of 
     the Task Force for improvements in the psychological health 
     of members of the armed forces and their families.
       The conferees will closely monitor the Department's efforts 
     to implement these recommendations, especially those focused 
     on access to mental health services for deployed members and 
     their families and on ensuring an adequate supply of highly 
     qualified uniformed mental health care providers.
       The conferees direct the Secretary of Defense to submit to 
     the congressional defense committees not later than March 1, 
     2008, a report on the implementation of each recommendation. 
     The report will include: (1) the expected date of 
     implementation of each recommendation that will be fully 
     implemented; (2) a description of and reason for any 
     modification of a recommendation and the expected date of 
     implementation of the modified recommendation; and (3) the 
     reason for not implementing any recommendation that will not 
     be implemented.

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

     Short title (sec. 800)
       The conferees agree to a provision that would provide that 
     this title may be cited as the ``Acquisition Improvement and 
     Accountability Act of 2007''.

             Subtitle A--Acquisition Policy and Management

     Internal controls for procurements on behalf of the 
         Department of Defense by certain non-defense agencies 
         (sec.801)
       The House bill contained a provision (sec. 803) that would 
     require the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics to issue guidelines on the use of 
     interagency contracting by the Department of Defense.
       The Senate amendment contained a provision (sec. 846) that 
     would require inspector general reviews to determine whether 
     procurements conducted by certain non-defense agencies on 
     behalf of the Department have been conducted in compliance 
     with defense procurement requirements.
       The Senate recedes with an amendment that would combine the 
     requirements of the two provisions.
     Lead systems integrators (sec. 802)
       The House bill contained a provision (sec. 806) that would 
     prohibit the Department of Defense from awarding new 
     contracts for lead systems integrator functions, effective 
     October 1, 2011.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     the Department of Defense from awarding new contracts for 
     lead systems integrator functions, effective October 1, 2010, 
     to any entity that was not performing lead system integrator 
     functions for the same system prior to the date of the 
     enactment of this Act. The provision would also prohibit the 
     award of any new contract for lead system integrator 
     functions for a major system that has proceeded beyond low-
     rate initial production, effective upon the date of enactment 
     of this Act, absent a written waiver by the Secretary of 
     Defense that meets conditions specified in the provision.
     Reinvestment in domestic sources of strategic materials (sec. 
         803)
       The House bill contained a provision (sec. 808) that would 
     require that all Department of Defense solicitations for 
     major weapon systems include an evaluation criteria 
     addressing the extent to which suppliers of

[[Page 32953]]

     strategic materials demonstrate a record of sustained 
     reinvestment in domestic production of such materials.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Strategic Materials Protection Board established pursuant to 
     section 187 of title 10, United States Code, to perform an 
     assessment of the extent to which sources of strategic 
     materials are reinvesting in domestic production of such 
     materials.
     Clarification of the protection of strategic materials 
         critical to national security (sec. 804)
       The House bill contained a provision (sec. 809) that would 
     address the use of domestic non-availability determinations 
     and commercial item exceptions with regard to the requirement 
     to buy strategic materials from American sources pursuant to 
     section 2533b of title 10, United States Code.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would revise 
     section 2533b to address the availability and use of domestic 
     non-availability determinations, commercial item exceptions, 
     purchases of fasteners, purchases of high-performance 
     magnets, purchases of electronic components, de minimis 
     purchases, purchases of commercial derivative military 
     articles, and national security waivers. The conferees intend 
     the revised provision to ensure that defense contractors 
     comply with requirements to purchase domestic specialty 
     metals without impeding the ability of the Department of 
     Defense to acquire weapon systems when and as needed.
       The conferees agree that the term ``electronic 
     components'', as used in this provision, does not include any 
     assembly, such as a radar, that incorporates structural or 
     mechanical parts. In addition, the conferees agree that the 
     term ``high performance magnet'', as used in the provision, 
     means permanent magnets containing 10 or more percent by 
     weight of materials such as cobalt, samarium, or nickel. The 
     conferees note that high performance magnets have been fully 
     or partially excluded from some of the exceptions added by 
     this section. The conferees intend in doing so to ensure that 
     the Department continues to procure such magnets from 
     domestic sources whenever possible and consistent with this 
     section.
       Section 2533b, as amended, would authorize streamlined 
     compliance for commercial derivative military articles, based 
     on a contractor's certification that minimum threshold 
     quantities are being purchased during the period of contract 
     performance. The provision specifies that the speciality 
     metal must be purchased for use during the period of contract 
     performance in the production of the commercial derivative 
     military article and the related commercial article. 
     Domestically-melted specialty metal that is purchased for use 
     in the production of commercial derivative military articles 
     acquired under one contract may not be used as a basis for an 
     exception to the requirements of this section for the 
     acquisition of the same or other commercial derivative 
     military articles under a different contract.
       The conferees note that commercially available off-the-
     shelf fasteners would be exempt from the requirements of 
     subsection (a) of section 2533b of title 10, United States 
     Code, only to the limited extent provided in paragraph 
     (h)(2)(D). However, nothing in this section precludes the use 
     of other exceptions or waivers available to the Secretary 
     with regard to such fasteners, to the extent that they are 
     applicable.
       The conferees direct the Secretary of Defense to ensure, in 
     promulgating rules to implement the minimum threshold in 
     subsection (j) of section 2533b, as amended, that such 
     threshold applies to the specialty metals contained in an 
     item delivered to the Department of Defense and may not be 
     applied on a piecemeal basis to a subsystem or component of 
     such item.
       Finally, the conferees understand that the recently 
     published rule regarding commercially available off-the-shelf 
     items, and other recent domestic non-availability 
     determinations that apply to multiple contracts and which 
     were based on the availability of components, rather than 
     speciality metals, will have to be reviewed and amended to 
     comply with section 2533b of title 10, United States Code, as 
     amended by this provision. The conferees encourage the 
     Department to ensure that the exceptions provided by 
     subsections (b) through (k) of the revised section 2533b are 
     utilized through an open and transparent process, to the 
     extent consistent with the protection of national security 
     information and confidential business information.
     Procurement of commercial services (sec. 805)
       The House bill contained a provision (sec. 801) that would 
     require the Administrator for Federal Procurement Policy to 
     modify the Federal Acquisition Regulation to narrow the 
     regulatory definition of commercial services.
       The Senate amendment contained a provision (sec. 823) that 
     would limit the use of time and materials contracts to 
     purchase commercial services for or on behalf of the 
     Department of Defense.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to modify the regulations of the 
     Department of Defense to: (1) authorize the contracting 
     officer in the procurement of certain commercial services to 
     require offerors to submit sufficient information to 
     evaluate, through price analysis, the reasonableness of the 
     proposed price; and (2) address the categories of services 
     which may be purchased for or on behalf of the Department of 
     Defense pursuant to commercial time and materials contracts.
     Specification of amounts requested for procurement of 
         contract services (sec. 806)
       The Senate amendment contained a provision (sec. 843) that 
     would require the Department of Defense (DOD) to clearly and 
     separately identify in its budget justification materials the 
     amounts requested in each budget account for the procurement 
     of contract services.
       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) require 
     that the materials submitted clearly identify amounts 
     requested for each category of service for each DOD 
     component, installation, or activity; and (2) provide that 
     the provision takes effect for fiscal years after fiscal year 
     2009.
       The conferees note that the military services currently 
     identify certain categories of services--such as engineering 
     and technical services and advisory and assistance services--
     in their budget justification documents. The conferees expect 
     that these and other categories of services will be 
     identified separately in the budget justification materials 
     submitted in accordance with this provision. In addition, the 
     conferees expect the budget justification materials to 
     identify the total amount in each account for contract 
     services for each DOD component, installation, or activity 
     for which funding for such services is requested.
       The conferees further note that section 2330a of title 10, 
     United States Code requires the Secretary of Defense to 
     establish a data collection system to provide management 
     information on DOD purchases of contract services. The 
     conferees encourage the Department to utilize the required 
     data collection system and ensure that budget information is 
     collected and reported in a manner that is consistent with 
     the collection and reporting of information on expenditures.
     Inventories and reviews of contracts for services (sec. 807)
       The House bill contained a provision (sec. 326(b)) that 
     would require the Secretary of Defense to establish an 
     inventory of work performed by contractors.
       The Senate amendment contained a provision (sec. 845) that 
     would require the secretary of each military department and 
     the head of each defense agency to maintain an inventory of 
     activities performed pursuant to contracts for services based 
     on cost or time of performance.
       The House recedes with an amendment that would codify a 
     requirement for the Secretary of Defense to maintain an 
     annual inventory of activities performed pursuant to 
     contracts for services for or on behalf of the Department of 
     Defense. The provision would require the secretaries of the 
     military departments and the heads of defense agencies to 
     conduct certain review and planning activities on the basis 
     of the annual inventories.
     Independent management reviews of contracts for services 
         (sec. 808)
       The Senate amendment contained a provision (sec. 847) that 
     would require the Secretary of Defense to issue guidance to 
     provide for independent management reviews of contracts for 
     services.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend the 
     amount of time for the Secretary to issue the required 
     guidance and add additional matters to be addressed in the 
     guidance. In addition to the matters required in the Senate 
     provision, the independent management reviews would be 
     required to specifically address issues raised by contracts 
     under which an agency uses one contractor to perform program 
     management and other acquisition services with regard to 
     services performed by other contractors.
       The conferees note the military services and defense 
     agencies are beginning to rely on a single contractor to 
     oversee program management of large services contracts, in a 
     manner similar to that of the ``lead systems integrator'' 
     concept on hardware programs.
       For example, the conferees understand that the program 
     structure for the Defense Logistics ``tire privatization'' 
     program places extensive control for the management, supply, 
     and distribution of military tires into the hands of a single 
     contractor. Similarly, the Army's Warfighter Field Operations 
     Customer Support (Warfighter FOCUS) consolidates several 
     existing contracts for training aids, simulators, and ranges 
     used by the active, reserve, and Guard components of the Army 
     into a single contract for life cycle support to be managed 
     by a single large prime contractor over a 10 year period.
       The conferees are concerned that the trend toward large 
     single contracts for the procurement of services may 
     undermine competition and result in unequal access to 
     information about future government needs. The conferees 
     expect the Department of Defense to review these issues and 
     take appropriate action to ensure that, to the extent

[[Page 32954]]

     that the Department continues to rely upon such contracts, 
     they do not result in the exclusion or unequal treatment of 
     competing contractors.
     Implementation and enforcement of requirements applicable to 
         undefinitized contractual actions (sec. 809)
       The Senate amendment contained a provision (sec. 848) that 
     would require the Secretary of Defense to issue guidance, 
     with detailed implementation instructions, for the Department 
     of Defense (DOD) to ensure the implementation and enforcement 
     of requirements applicable to undefinitized contractual 
     actions (UCAs).
       The House bill contained no similar provision.
       The House recedes with an amendment clarifying the issues 
     to be addressed in the guidance.
       The conferees note that the DOD already has requirements in 
     place regarding the use of UCAs. However, the Government 
     Accountability Office (GAO) reported in June 2007 that DOD 
     has frequently failed to comply with these requirements.
       For example, the Defense Federal Acquisition Regulation 
     Supplement (DFARS) states that when the final price of a UCA 
     is negotiated after a substantial portion of the required 
     performance has been completed, the negotiated profit rate 
     should reflect any reduced cost risk to the contractor for 
     costs incurred during contract performance before negotiation 
     of the final price. Section 215.404-71-3(d)(2) of the DFARS 
     states: ``When costs have been incurred prior to 
     definitization, generally regard the contract type risk to be 
     in the low end of the designated range. If a substantial 
     portion of the costs have been incurred prior to 
     definitization, the contracting officer may assign a value as 
     low as 0 percent, regardless of contract type.'' However, GAO 
     found no evidence that DOD contracting officers have been 
     observing these requirements in the negotiation of contract 
     fees. The conferees expect the guidance issued pursuant to 
     this section to include procedures for ensuring compliance 
     with these and other requirements regarding UCAs.
     Clarification of limited acquisition authority for Special 
         Operations Command (sec. 810)
       The House bill contained a provision (sec. 817) that would 
     clarify the authorities available to U.S. Special Operations 
     Command (SOCOM) by codifying the position of acquisition 
     executive and senior procurement executive, respectively, by 
     amending section 167(e)(4) of title 10, United States Code.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that codifies the 
     position of the SOCOM command acquisition executive, and 
     deletes language stating that the acquisition executive shall 
     have the same duties and authorities as the service 
     acquisition executives. Furthermore, this provision states 
     that the command acquisition executive is responsible for 
     supervising all SOCOM acquisition matters regardless of 
     whether or not such an activity is carried out by the command 
     or by a military department (MILDEP) pursuant to a delegation 
     of authority by the command. The provision further authorizes 
     the command acquisition executive to negotiate acquisition-
     related memoranda of agreement with the MILDEPs, to ensure 
     proper representation of the command in acquisition 
     discussions, and to receive acquisition directives and 
     instructions of the department.

 Subtitle B--Provisions Relating to Major Defense Acquisition Programs

     Requirements applicable to multiyear contracts for the 
         procurement of major systems of the Department of Defense 
         (sec. 811)
       The Senate amendment contained a provision (sec. 801) that 
     would define the term ``substantial savings'' for the 
     purposes of authorizing multiyear contracts.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to certify in writing by no later than 
     March 1 of a year in which the Secretary requests legislative 
     authority to enter into a multiyear contract for which such 
     authority is required that he has made certain determinations 
     with regard to such contract.
       The conferees agree that ``substantial savings'' under 
     section 2306b(a)(1) of title 10, United States Code, means 
     savings that exceed 10 percent of the total costs of carrying 
     out the program through annual contracts, except that 
     multiyear contracts for major systems providing savings 
     estimated at less than 10 percent should only be considered 
     if the Department presents an exceptionally strong case that 
     the proposal meets the other requirements of section 
     2306b(a), as amended. The conferees agree with a Government 
     Accountability Office finding that any major system that is 
     at the end of its production line is unlikely to meet these 
     standards and therefore would be a poor candidate for a 
     multiyear procurement contract.
       The conferees further agree that the Cost Analysis 
     Improvement Group must be tasked and resourced to perform the 
     cost estimates required by this section in a timely manner to 
     ensure compliance with this section.
     Changes to Milestone B certifications (sec. 812)
       The Senate amendment contained a provision (sec. 802) that 
     would: (1) require that the milestone decision authority 
     (MDA) receive a business case analysis before making a 
     Milestone B certification under section 2366a of title 10, 
     United States Code; and (2) require the program manager for a 
     major defense acquisition program (MDAP) to immediately 
     notify the MDA of significant changes to the MDAP after a 
     Milestone B certification is made.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     requirements for Milestone B certifications.
     Comptroller General report on Department of Defense 
         organization and structure for major defense acquisition 
         programs (sec. 813)
       The Senate amendment contained a provision (sec. 803) that 
     would require the Comptroller General to report to the 
     congressional defense committees on potential modifications 
     to the Department of Defense organization and structure for 
     major defense acquisition programs.
       The House bill contained no similar provision.
       The House recedes with an amendment striking two of the 
     elements of the study and adding a new element: a review of 
     whether, and how, the combatant commands should participate 
     in long-term planning for future capabilities.
       The conferees agree that the review of shorter, more 
     frequent acquisition milestones should include appropriate 
     consideration of: (1) separate milestones at the time of 
     approval of a mission need statement, approval of a 
     capability need definition, technology development and 
     assessment, system development and demonstration, final 
     design, production prototyping and testing, limited 
     production, and full-rate production; and (2) a requirement 
     that appropriate officials certify to the Milestone Decision 
     Authority that exit criteria related to cost, schedule, 
     technological maturity, and performance factors have been met 
     prior to a program proceeding to the next milestone.
     Clarification of submission of cost or pricing data on 
         noncommercial modifications of commercial items (sec. 
         814)
       The House bill contained a provision (sec. 812) that would 
     clarify certain thresholds in the Truth in Negotiations Act 
     (10 U.S.C. 2306a).
       The Senate amendment contained a similar provision (sec. 
     822(c)).
       The Senate recedes with a technical amendment.
     Clarification of rules regarding the procurement of 
         commercial items (sec. 815)
       The House bill contained a provision (sec. 811) that would 
     amend the Truth in Negotiations Act, section 2306a of title 
     10, United States Code, to require the submission of cost or 
     pricing data for sole-source contracts for commercial items 
     if needed to determine that a price is fair and reasonable.
       The Senate amendment contained a provision (sec. 822) that 
     would amend section 2379 of title 10, United States Code, to 
     narrow the categories of subsystems, components, and spare 
     parts of major weapon systems that may be purchased as 
     commercial items.
       The House recedes with an amendment that would authorize 
     the contracting officer in the procurement of a major weapon 
     system, or subsystems, components, or spare parts for a major 
     weapon system to require offerors to submit sufficient 
     information to evaluate, through price analysis, the 
     reasonableness of the proposed price. The information 
     required to be submitted may include information on prices 
     paid for the same or similar items under comparable terms and 
     conditions and, if the contracting officer determines that 
     price information is not sufficient to determine the 
     reasonableness of price, other relevant information regarding 
     the basis of price or cost, including information on labor 
     costs, material costs, and overhead rates.
       The conferees expect that a contracting officer's written 
     determination under this section will include an explanation 
     of the basis for the contracting officer's determination 
     that: (1) the item is a commercial item; and (2) the 
     information provided by the contractor is sufficient to 
     evaluate the reasonableness of price.
     Review of systemic deficiencies on major defense acquisition 
         programs (sec. 816)
       The House bill contained a provision (sec. 847) that would 
     require each component of the Department of Defense that has 
     multiple programs experiencing excessive cost growth in any 
     fiscal year to identify and report on systemic deficiencies 
     in its acquisition policies and practices that may have 
     contributed to such cost growth.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Under Secretary of Defense for Acquisition, Technology, and 
     Logistics to conduct an annual review of systemic 
     deficiencies in major defense acquisition programs that have 
     led to critical cost threshold breaches or required 
     recertification of programs by the Joint Requirements 
     Oversight Council.

[[Page 32955]]


     Investment strategy for major defense acquisition programs 
         (sec. 817)
       The Senate amendment contained a provision (sec. 804) that 
     would require the Secretary of Defense to submit a report to 
     the congressional defense committees on the strategies of the 
     Department of Defense for balancing the allocation of funds 
     and other resources among major defense acquisition programs. 
     The report would also address the role of the Tri-Chair 
     Committee of the Department of Defense in the resource 
     allocation process for major defense acquisition programs.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     the report also address, to the maximum extent practicable, 
     any changes to the budget, acquisition, and requirements 
     processes of the Department of Defense that the Department 
     has undertaken or plans to undertake as a result of changes 
     in law made by provisions of this Act.
     Report on implementation of recommendations on total 
         ownership cost for major weapon systems (sec. 818)
       The Senate amendment contained a provision (sec. 805) that 
     would require the Secretary of Defense to report to the 
     congressional defense committees on the implementation of 
     recommendations by the Comptroller General regarding total 
     ownership cost for major weapon systems.
       The House bill contained no similar provision.
       The House recedes.

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

     Plan for restricting government-unique contract clauses on 
         commercial contracts (sec. 821)
       The House bill contained a provision (sec. 813) that would 
     require the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics to develop and implement a plan to 
     minimize the number of government-unique contract clauses 
     used in commercial contracts.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Extension of authority for use of simplified acquisition 
         procedures for certain commercial items (sec. 822)
       The House bill contained a provision (sec. 814) that would 
     extend the authority of the Department of Defense to use 
     simplified acquisition procedures for the acquisition of 
     certain commercial items.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require a 
     report on the use of the authority.
     Five-year extension of authority to carry out certain 
         prototype projects (sec. 823)
       The House bill contained a provision (sec. 816) that would 
     extend for 5 years the authority of the Secretary of Defense 
     to carry out certain prototype projects.
       The Senate amendment contained an identical provision (sec. 
     825). The conference agreement includes this provision.
     Exemption of Special Operations Command from certain 
         requirements for certain contracts relating to vessels, 
         aircraft, and combat vehicles (sec. 824)
       The House bill contained a provision (sec. 818) that would 
     exempt U.S. Special Operations Command from leasing 
     limitations as required in section 2401 of title 10, United 
     States Code.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would permit the 
     Secretary of Defense to exempt U.S. Special Operations 
     Command from leasing limitations regarding substantial 
     termination liability, as required in section 2401 of title 
     10, United States Code, if he or she can certify that 
     specified conditions have been met, and informs Congress in 
     advance of the certification.
     Provision of authority to maintain equipment to Unified 
         Combatant Command for Joint Warfighting (sec. 825)
       The House bill contained a provision (sec. 819) that would 
     clarify the acquisition authority of the Unified Combatant 
     Command for Joint Warfighting.
       The Senate amendment contained a similar provision (sec. 
     874).
       The Senate recedes with an amendment that would extend the 
     authority for two years.
     Market research (sec. 826)
       The House bill contained a provision (sec. 820) that would 
     require the Secretary of Defense to take certain steps to 
     ensure that the Department of Defense and its prime 
     contractors conduct appropriate market research before making 
     purchases for or on behalf of the Department.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would provide 
     additional flexibility to the Secretary in providing for 
     market research.
       The conference agreement directs the Secretary to work to 
     develop market research tools to assist contracting officers 
     and prime contractors in performing market research. In 
     developing such tools, the conferees expect the Secretary to 
     give appropriate consideration to the use of web-based tools 
     such as search engines.
     Modification of competition requirements for purchases from 
         Federal Prison Industries (sec. 827)
       The Senate amendment contained a provision (sec. 824) that 
     would tighten requirements for competition in Department of 
     Defense purchases from Federal Prison Industries.
       The House bill contained no similar provision.
       The House recedes.
     Multiyear contract authority for electricity from renewable 
         energy sources (sec. 828)
       The Senate amendment contained a provision (sec. 826) that 
     would authorize the Secretary of Defense to enter contracts 
     for up to 10 years for the purchase of electricity from 
     sources of renewable energy.
       The House bill contained no similar provision.
       The House recedes with an amendment clarifying that the 
     authority provided in this provision does not preclude the 
     use of any other multiyear contracting authority available to 
     the Department of Defense for the purchase of electricity 
     from renewable sources.
     Procurement of fire resistant rayon fiber for the production 
         of uniforms from foreign sources (sec. 829)
       The Senate amendment contained a provision (sec. 827) that 
     would authorize the continued procurement of fire resistant 
     rayon fiber for the production of uniforms from foreign 
     sources under certain conditions. The provision would expire 
     5 years after the date of the enactment of this Act.
       The House bill contained no similar provision.
       The House recedes.
     Comptroller General review of noncompetitive awards of 
         congressional and executive branch interest items (sec. 
         830)
       The Senate amendment contained a provision (sec. 828) that 
     would establish special competition rules for contracts 
     awarded by the Department of Defense to implement new 
     programs or projects pursuant to congressional initiatives.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Comptroller General of the United States to compare the 
     procedures used by the Department of Defense for contracts to 
     implement new programs or projects pursuant to congressional 
     initiatives with the procedures used for contracts to 
     implement new programs or projects of special interest to 
     senior executive branch officials.

               Subtitle D--Accountability in Contracting

     Commission on Wartime Contracting in Iraq and Afghanistan 
         (sec. 841)
       The Senate amendment contained a provision (sec. 1539(a)) 
     that would establish a Commission on Wartime Contracting to 
     review federal contracting for the reconstruction of Iraq and 
     Afghanistan, logistical support of coalition forces operating 
     in Iraq and Afghanistan, and the performance of security and 
     intelligence functions in Iraq and Afghanistan.
       The House bill contained no similar provision.
       The House recedes with an amendment deleting the review of 
     contracting for intelligence functions from the Commission's 
     responsibilities and making certain modifications to the 
     structure of the Commission.
     Investigation of waste, fraud, and abuse in wartime contracts 
         and contracting processes in Iraq and Afghanistan (sec. 
         842)
       The Senate amendment contained a provision (sec. 1539(b)) 
     that would require the Special Inspector General for Iraq 
     Reconstruction to conduct a series of audits of contracts for 
     the logistical support of coalition forces in Iraq and 
     Afghanistan and contracts for the performance of security and 
     reconstruction functions in Iraq and Afghanistan.
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide for 
     the audits to be conducted by the inspectors general with 
     jurisdiction over the relevant contracts. The audits would be 
     conducted pursuant to audit plans developed by the Department 
     of Defense Inspector General, the Special Inspector General 
     for Iraq Reconstruction, and the Special Inspector General 
     for Afghanistan Reconstruction, and would be coordinated 
     through councils and working groups composed of the relevant 
     inspectors general.
       The conferees do not intend for the audits conducted 
     pursuant to this section to duplicate audit work previously 
     performed under other authority.
     Enhanced competition requirements for task and delivery order 
         contracts (sec. 843)
       The House bill contained a provision (sec. 821) that would 
     address the issue of competition in contracting on a 
     government-wide basis.
       The Senate amendment contained a provision (sec. 821) that 
     would encourage the use

[[Page 32956]]

     of multiple-award task and delivery order contracts in lieu 
     of single-award contracts, enhance requirements for the 
     competition of task orders and delivery orders under 
     multiple-award contracts, and authorize bid protests for task 
     or delivery orders in excess of $5.0 million under such 
     contracts.
       The House bill contained no similar provision.
       The House recedes with an amendment that would address the 
     competition issues in the Senate provision on a government-
     wide basis. The provision would raise the threshold for bid 
     protests to $10.0 million and sunset the authorization for 
     bid protests after 3 years. The conferees expect that the 
     sunset date will provide Congress with an opportunity to 
     review the implementation of the provision and make any 
     necessary adjustments.
     Public disclosure of justification and approval documents for 
         noncompetitive contracts (sec. 844)
       The House bill contained a provision (sec. 823) that would 
     require public disclosure of justification and approval 
     documents for noncompetitive contracts.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     disclosure of such documents through appropriate websites, 
     rather than through the Federal Procurement Data System.
     Disclosure of government contractor audit findings (sec. 845)
       The House bill contained a provision (sec. 824) that would 
     require the head of each federal agency to submit quarterly 
     reports to Congress on completed audits of contractors 
     performed by the agency or department.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     inclusion of significant findings in final, completed audits 
     of contractors in the semiannual reports submitted to 
     Congress by Inspectors General pursuant to section 5 of the 
     Inspector General Act (Public Law 95-452, as amended). The 
     provision would provide for the redaction from such reports 
     of information that is exempt from public disclosure under 
     the Freedom of Information Act (section 552(b) of title 5, 
     United States Code).
     Protection of contractor employees from reprisal for 
         disclosure of certain information (sec. 846)
       The Senate amendment contained a provision (sec. 861) that 
     would provide enhanced protection for contractor employees 
     who disclose evidence of waste, fraud, or abuse on Department 
     of Defense contracts.
       The House bill contained no similar provision.
       The House recedes with an amendment that would: expand the 
     categories of government officials to whom a protected 
     communication may be made; expand the categories of waste, 
     fraud, and abuse about which a protected communication may be 
     made; and establish a de novo right of action in federal 
     district court for contractor employees who have exhausted 
     their administrative remedies under the provision.
     Requirements for senior Department of Defense officials 
         seeking employment with defense contractors (sec. 847)
       The Senate amendment contained a provision (sec. 862) that 
     would require contractors that receive defense contracts in 
     excess of $10.0 million to report to the Department of 
     Defense (DOD) on an annual basis on certain former senior DOD 
     officials who receive compensation from the contractor.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require 
     certain former senior DOD officials to obtain written 
     opinions from the appropriate DOD ethics officials before 
     accepting compensation from DOD contractors.
       The conferees encourage covered DOD officials to request 
     the required written opinion from an ethics counselor 
     regarding post-employment restrictions that may apply to the 
     official prior to leaving the Department whenever possible.
     Report on contractor ethics programs of major defense 
         contractors (sec. 848)
       The Senate amendment contained a provision (sec. 863) that 
     would require the Comptroller General to report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives on the internal ethics programs of major 
     defense contractors.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       In conducting the required review, the conferees direct the 
     Comptroller General to report on the extent to which the 
     internal ethics programs of major defense contractors 
     include: (1) disclosure of personal financial interests and 
     outside employment by key personnel performing work for the 
     government; (2) conflict mitigation measures for addressing 
     any personal conflicts of interest of employees in connection 
     with their work on Department of Defense contracts; and (3) 
     procedures for reporting these personal conflicts of interest 
     and any mitigation measures to the Department of Defense.
     Contingency contracting training for personnel outside the 
         acquisition workforce and evaluations of Army Commission 
         recommendations (sec. 849)
       The Senate amendment contained a provision (sec. 865) that 
     would require the Secretary of Defense to provide for 
     appropriate training of military personnel outside the 
     acquisition workforce who are expected to have acquisition 
     responsibilities during combat operations, post-conflict 
     operations, and contingency operations.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense and the Secretary of the Army to review 
     the recommendations of the Commission on Army Acquisition and 
     Program Management in Expeditionary Operations and report to 
     the congressional defense committees on steps that they have 
     taken or plan to take to implement those recommendations. The 
     conferees agree with the Commission's conclusion that 
     acquisition failures in expeditionary operations urgently 
     require a systemic fix of Army contracting and urge the 
     Secretary of Defense and the Secretary of the Army to act on 
     the Commission's recommendations as expeditiously as 
     possible.

              Subtitle E--Acquisition Workforce Provisions

     Requirement for section on defense acquisition workforce in 
         strategic human capital plan (sec. 851)
       The House bill contained a provision (sec. 802(b)) that 
     would require the Secretary of Defense to include a section 
     on the acquisition workforce in annual updates of the 
     strategic human capital plan required under section 1122 of 
     the National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163).
       The Senate amendment contained a similar provision (sec. 
     844(h)).
       The Senate recedes with an amendment clarifying the issues 
     to be addressed in the plan.
     Department of Defense acquisition workforce development fund 
         (sec. 852)
       The Senate amendment contained a provision (sec. 844) that 
     would establish an acquisition workforce development fund to 
     ensure that the Department of Defense (DOD) has the capacity, 
     in both personnel and skills, needed to properly perform its 
     mission, provide appropriate oversight of contractor 
     performance, and provide the best value for the expenditure 
     of public resources in DOD acquisitions. The fund would be 
     financed through quarterly remittances by the military 
     departments and defense agencies.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to reduce the percentages on which 
     remittances to the fund are based, if the Secretary 
     determined that credits to the fund would otherwise exceed 
     amounts reasonably needed for the development of the DOD 
     acquisition workforce. The provision would establish minimum 
     levels, below which the Secretary would not be permitted to 
     reduce annual remittances to the fund.
       The conferees note that the final report of the Commission 
     on Army Acquisition and Program Management in Expeditionary 
     Operations, released on October 31, 2007, found that the Army 
     has failed to recognize the importance of the contracts 
     requirement development process, failed to allocate resources 
     needed for contract management, and failed to provide defined 
     clear paths for contracting professionals. The report 
     concluded that ``contracting, from requirements definition to 
     contract management, is not an Army Core Competence. The Army 
     has excellent, dedicated people, but they are understaffed, 
     overworked, under-trained, under-supported and, most 
     important, under-valued.''
       Unfortunately, these shortcomings, which have increased the 
     Army's vulnerability to fraud, waste, and abuse, are not 
     limited to the Department of the Army. The Acquisition 
     Advisory Panel chartered pursuant to section 1423 of the 
     National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136) reported that the failure of DOD and 
     other federal agencies to adequately fund the acquisition 
     workforce is ```penny wise and pound foolish,' as it 
     seriously undermines the pursuit of good value for the 
     expenditure of public resources.'' The fund established by 
     this provision is intended to address this problem by making 
     the investments needed to reinvigorate the DOD acquisition 
     workforce.
     Extension of authority to fill shortage category positions 
         for certain federal acquisition positions (sec. 853)
       The House bill contained a provision (sec. 815) that would 
     amend section 1413 of the National Defense Authorization Act 
     for Fiscal Year 2004 (Public Law 108-136) to extend the 
     authority of federal agencies to treat certain acquisition 
     positions as shortage category positions.
       The Senate amendment contained a provision (sec. 844(g)) 
     that would have provided a similar extension, applicable only 
     to the Department of Defense.

[[Page 32957]]

       The Senate recedes.
     Repeal of sunset of acquisition workforce training fund (sec. 
         854)
       The House bill contained a provision (sec. 802(a)) that 
     would repeal the sunset of the acquisition workforce training 
     fund established pursuant to section 37(h) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 433(h)).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Federal acquisition workforce improvements (sec. 855)
       The House bill contained a provision (sec. 825) that would 
     require the Administrator for Federal Procurement Policy to 
     conduct a study of the composition, scope, and functions of 
     the government-wide acquisition workforce and develop a 
     comprehensive definition of, and method of measuring the size 
     of, such workforce.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment directing the 
     Administrator to: designate a member of the Senior Executive 
     Service as Associate Administrator for Acquisition Workforce 
     Programs; work with agency heads to establish acquisition 
     training programs; develop performance standards for 
     acquisition workforce training; ensure that agency heads 
     collect and maintain standardized information on the 
     acquisition workforce; work with agency heads to develop 
     acquisition workforce human capital plans; and work with the 
     Office of Personnel Management to encourage agencies to 
     utilize existing personnel authorities to recruit and retain 
     qualified acquisition personnel.

             Subtitle F--Contracts in Iraq and Afghanistan

     Memorandum of understanding on matters relating to 
         contracting (sec. 861)
       The House bill contained a provision (sec. 831) that would 
     require the Secretary of Defense and other relevant agency 
     heads to sign a memorandum of understanding (MOU) regarding 
     matters relating to contracting in Iraq and Afghanistan and 
     prohibit the award of any new contracts in Iraq and 
     Afghanistan after January 1, 2008, until the MOU has been 
     signed.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment eliminating the 
     prohibition on the award of new contracts.
     Contractors performing private security functions in areas of 
         combat operations (sec. 862)
       The Senate amendment contained a provision (sec. 871) that 
     would: (1) require the Secretary of Defense to prescribe 
     regulations on the selection, training, equipment, and 
     conduct of personnel performing private security functions in 
     an area of combat operations; and (2) ensure that contractors 
     and subcontractors of all federal agencies are subject to 
     such regulations and to directives issued by combatant 
     commanders in accordance with such regulations.
       The House bill contained no similar provision.
       The House recedes with an amendment clarifying that the 
     requirements of this provision do not apply to contracts 
     entered into by the intelligence community in support of 
     intelligence activities.
       The conferees have agreed to provide the Secretary of 
     Defense the authority to require contractors to comply with 
     the regulations issued under this section in areas where 
     there is the potential for combat operations. The conferees 
     intend that the Secretary use this authority with discretion 
     to designate areas with a high potential for combat 
     operations with a commensurate likelihood that private 
     security contractors in such areas would come into regular 
     contact with members of the armed forces.
     Comptroller General reviews and reports on contracting in 
         Iraq and Afghanistan (sec. 863)
       The House bill contained a provision (sec. 832) that would 
     require the Comptroller General to report to review data on 
     contracts in Iraq and Afghanistan and report to Congress 
     every 6 months.
       The Senate amendment contained a provision (sec. 878) that 
     would require agency heads to report to Congress on similar 
     issues.
       The Senate recedes with an amendment that would require 
     reports to Congress on an annual basis, instead of every 6 
     months.
     Definitions and other general provisions (sec. 864)
       The House bill contained a provision (sec. 833) that would 
     define certain terms used in provisions on contracting in 
     Iraq and Afghanistan.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would add 
     definitions of the terms ``covered contract'' and ``private 
     security functions'' and clarify that nothing in this 
     subtitle shall be interpreted to require the handling of 
     classified information or information relating to 
     intelligence sources and methods in a manner inconsistent 
     with the requirements of applicable provisions of law, 
     regulation, executive order, or legislative branch rules.

              Subtitle G--Defense Materiel Readiness Board

     Establishment of Defense Materiel Readiness Board (sec. 871)
       The House bill contained a provision (sec. 1702) that would 
     require the Secretary of Defense to establish a Defense 
     Readiness Production Board and define the membership and 
     functions of the Board.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to establish a Defense Materiel 
     Readiness Board. The Board would be required to provide 
     independent assessments of materiel readiness, readiness 
     shortfalls, and readiness plans to the Secretary of Defense 
     and Congress.
     Critical materiel readiness shortfalls (sec. 872)
       The House bill contained a series of provisions (secs. 
     1705, 1706, and 1708) that would provide the Secretary of 
     Defense with authorities to address critical materiel 
     readiness shortfalls.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would consolidate 
     the authorities provided to the Secretary into a single 
     provision. The provision would authorize the Secretary to: 
     designate certain requirements of the Department of Defense 
     as critical materiel readiness shortfalls; ensure that 
     relevant officials of the Department of Defense prioritize 
     and address such shortfalls in requirements, budgets, and 
     acquisition; authorize the transfer of up to $2.0 billion in 
     authorizations in fiscal year 2008, subject to established 
     procedures, to address such shortfalls; establish a Strategic 
     Readiness Fund to address such shortfalls; and provide for 
     the secretaries of the military departments to report whether 
     multiyear contracts should be used to address critical 
     material readiness shortfalls. The conferees note that 
     nothing in this provision modifies existing statutory 
     requirements regarding the use of multiyear contracts.

                       Subtitle H--Other Matters

     Clearinghouse for rapid identification and dissemination of 
         commercial information technologies (sec. 881)
       The House bill contained a provision (sec. 841) that would 
     require the Assistant Secretary of Defense for Networks and 
     Information Integration to establish a demonstration project 
     to identify, assess, stimulate investment in, rapidly 
     acquire, and coordinate the use of information technologies 
     (with an emphasis on commercial off-the-shelf information 
     technologies).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Assistant Secretary to establish a clearinghouse to identify, 
     assess, and disseminate knowledge about commercial 
     information technologies (with an emphasis on commercial off-
     the-shelf information technologies, but also including 
     government off-the-shelf information technologies).
     Authority to license certain military designations and 
         likenesses of weapons systems to toy and hobby 
         manufacturers (sec. 882)
       The House bill contained a provision (sec. 843) that would 
     require the secretaries of the military departments to 
     license trademarks, service marks, certification marks, and 
     collective marks relating to military designations and 
     likenesses of military weapons systems to toy or hobby 
     manufacturers.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify 
     that the licenses apply to trademarks owned or controlled by 
     the Department of Defense, and give the secretaries of the 
     military departments discretion over granting such licenses.
     Modifications to limitation on contracts to acquire military 
         flight simulator (sec. 883)
       The House bill contained a provision (sec. 844) that would 
     modify the waiver standard in section 832 of the John Warner 
     National Defense Authorization Act for Fiscal Year 2007 
     (Public Law 109-364), which placed limitations on the use of 
     service contracts to acquire military flight simulators.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     applicability of section 832 to contracts that were entered 
     into prior to October 17, 2006.
     Requirements relating to waivers of certain domestic source 
         limitations relating to specialty metals (sec. 884)
       The House bill contained a provision (sec. 846) that would 
     require that any domestic non-availability determination 
     pursuant to section 2533b(b) of title 10, United States Code, 
     that would apply to more than one prime contract of the 
     Department of Defense be made on the basis of a formal 
     rulemaking process.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that the Secretary of Defense solicit information from 
     interested parties, including producers of specialty

[[Page 32958]]

     metal mill products, to the maximum extent practicable and in 
     a manner consistent with the protection of national security 
     information and confidential business information before 
     making a domestic non-availability determination that would 
     apply to more than one prime contract. The provision would 
     also require that the Secretary's determination and the 
     rationale for the determination be made publicly available to 
     the maximum extent practicable consistent with the protection 
     of national security information and confidential business 
     information.
     Telephone services for military personnel serving in combat 
         zones (sec. 885)
       The House bill contained a provision (sec. 848) that would 
     require the Secretary of Defense to: (1) use competitive 
     procedures in entering new contracts to provide morale, 
     welfare, and recreation telephone service for personnel 
     serving in combat zones; and (2) ensure that such contracts 
     provide individual users the flexibility of using phone cards 
     from multiple phone service providers.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to use competitive procedures when contracting for 
     morale, welfare, and recreation telephone services and to 
     review and determine whether it is in the best interest of 
     the Department of Defense (DOD) to provide individual users 
     the flexibility of using multiple phone service providers 
     under such contracts.
       The conferees expect the Secretary to take appropriate 
     steps to ensure that the cost of phone cards, both to DOD and 
     to DOD personnel, is as low as possible under both existing 
     and future contracts. In general, contracts for morale, 
     welfare, and recreation phone services should recognize the 
     contractor's demonstrable and reasonable costs of access when 
     providing individual users the flexibility of using phone 
     cards from providers other than the contractor.
     Enhanced authority to acquire products and services produced 
         in Iraq and Afghanistan (sec. 886)
       The Senate amendment contained a provision (sec. 872) that 
     would authorize the Secretary of Defense to establish a 
     preference for the acquisition of products and services in 
     Iraq and Afghanistan for the purpose of providing a stable 
     source of jobs and employment in Iraq and Afghanistan in 
     cases where the preference will not have an adverse effect on 
     U.S. military operations or the U.S. industrial base.
       The House bill contained no similar provision.
       The House recedes.
       The conferees direct the Secretary of Defense to report to 
     the congressional defense committees on the use of this 
     authority six months after the date of the enactment of this 
     Act and every six months thereafter until the end of fiscal 
     year 2009. Each such report should address the dollar amounts 
     and purposes of procurements made under the authority of this 
     section during the preceding six-month period.
     Defense Science Board review of Department of Defense 
         policies and procedures for the acquisition of 
         information technology (sec. 887)
       The Senate amendment contained a provision (sec. 873) that 
     would require the Secretary of Defense to direct the Defense 
     Science Board to carry out a review of Department of Defense 
     policies and procedures for the acquisition of information 
     technology.
       The House bill contained no similar provision.
       The House recedes.
     Green procurement policy (sec. 888)
       The Senate amendment contained a provision (sec. 876) that 
     would require the Secretary of Defense to report to Congress 
     on plans to increase the usage of environmentally friendly 
     products at Department of Defense facilities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     findings included in the Senate provision and would require 
     the report to cover consideration of the budgetary impact of 
     implementation of the plan.
       The conferees support the efforts of the Department of 
     Defense to purchase environmentally friendly products and 
     urge the Department to take additional steps to increase the 
     usage of these products, and to document and track such 
     usage.
     Comptroller General review of use of authority under the 
         Defense Production Act of 1950 (sec. 889)
       The Senate amendment contained a provision (sec. 877) that 
     would require the Comptroller General to review the 
     application of the Defense Production Act of 1950 over the 
     last 5 years.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     issues to be addressed in the review.
     Prevention of export control violations (sec. 890)
       The House bill contained a provision (sec. 810) that would 
     provide for the debarment of any contractor or prospective 
     contractor who has been convicted of a criminal violation of 
     any provision of the Arms Export Control Act (section 2751 of 
     title 22, United States Code, et seq.).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to promulgate regulations requiring 
     Department of Defense contractors to comply with applicable 
     export control laws and regulations, develop a contract 
     clause enforcing such requirement, and ensure that 
     contractors are made aware of resources available to assist 
     in compliance with such requirements.
     Procurement goal for native Hawaiian-serving institutions and 
         Alaska native-serving institutions (sec. 891)
       The House bill contained a provision (sec. 807) that would 
     clarify that the minority-serving institutions covered by the 
     goal established in section 2323 of title 10, United States 
     Code, includes native Hawaiian-serving institutions and 
     Alaska native-serving institutions.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Competition for procurement of small arms supplied to Iraq 
         and Afghanistan (sec. 892)
       The House bill contained a provision (sec. 834) that would 
     require competition for the procurement of small arms 
     supplied to Iraq and Afghanistan.
       The Senate amendment contained an identical provision (sec. 
     1534). The conference agreement includes this provision.

                   Legislative Provisions Not Adopted

     Clarification of jurisdiction of the United States district 
         courts to hear bid protest disputes involving maritime 
         contracts
       The House bill contained a provision (sec. 850) that would 
     limit bid protests arising out of maritime contracts to the 
     U.S. Court of Federal Claims.
       The Senate amendment contained no similar provision.
       The House recedes.
     Defense Production Industry Advisory Council
       The House bill contained a provision (sec. 1703) that would 
     require the Secretary of Defense to establish a Defense 
     Production Industry Advisory Council.
       The Senate amendment contained no similar provision.
       The House recedes.
     Evaluation of cost of compliance with requirement to buy 
         certain articles from American sources
       The House bill contained a provision (sec. 845) that would 
     require that costs related to compliance with requirements 
     related to the purchase of specialty metals from non-domestic 
     sources be excluded from consideration in the evaluation of 
     offers for Department of Defense contracts.
       The Senate amendment contained no similar provision.
       The House recedes.
     Jurisdiction under Contract Disputes Act of 1978 over claims, 
         disputes, and appeals arising out of maritime contracts
       The House bill contained a provision (sec. 849) that would 
     extend the coverage of the Contract Disputes Act of 1978 (41 
     U.S.C. 601 et seq.) to maritime contracts.
       The Senate amendment contained no similar provision.
       The House recedes.
     Management structure for the procurement of contract services
       The Senate amendment contained a provision (sec. 842) that 
     would authorize the military departments to establish 
     Contract Support Acquisition Centers.
       The House bill contained no similar provision.
       The Senate recedes.
     Maximizing fixed-price procurement contracts
       The House bill contained a provision (sec. 822) that would 
     require the head of each executive branch agency to develop 
     and implement a plan to maximize the use of fixed-price type 
     contracts for the procurement of goods and services.
       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. 804) that would 
     prohibit the Secretary of Defense from entering into a 
     contract with a foreign person who has received a subsidy 
     from the government of a foreign country, 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.
     Prohibition on procurement from companies in violation of the 
         Iran and Syria Nonproliferation Act
       The House bill contained a provision (sec. 805) that would 
     prohibit the use of funds for the procurement of goods or 
     services at a prime contract or subcontract level from any 
     source that is owned or controlled by an entity that is 
     subject to sanctions for violations of the Iran and Syria 
     Nonproliferation Act (Public Law 106-178).

[[Page 32959]]

       The Senate amendment contained no similar provision.
       The House recedes.
     Purpose
       The House bill contained a provision (sec. 1701) that would 
     establish the purpose of the Defense Readiness Production 
     Board.
       The Senate amendment contained no similar provision.
       The House recedes.
     Repeal of requirement for identification of essential 
         military items and military system essential item 
         breakout list
       The Senate amendment contained a provision (sec. 875) that 
     would repeal the requirement for the Secretary of Defense to 
     submit an annual report to the congressional defense 
     committees listing essential items, assemblies, and 
     components of military systems.
       The House bill contained no similar provision.
       The Senate recedes.
     Report on Department of Defense contracting with contractors 
         or subcontractors employing members of the Selected 
         Reserve
       The Senate amendment contained a provision (sec. 864) that 
     would require the Secretary of Defense to conduct a study on 
     contracting with the Department of Defense by contractors and 
     subcontractors who employ members of the Selected Reserve.
       The House bill contained no similar provision.
       The Senate recedes.
     Report to Congress
       The House bill contained a provision (sec. 826) that would 
     require the Director of the Office of Government Ethics to 
     submit a report to Congress that contains the Director's 
     recommendations on requiring certain government contractor 
     employees to comply with restrictions relating to personal 
     financial interests such as those that apply to federal 
     employees.
       The Senate amendment contained no similar provision.
       The House recedes.
     Report to Congress required on delays in major phases of 
         acquisition process for major automated information 
         system programs
       The House bill contained a provision (sec. 842) that would 
     require the Secretary of Defense to report to Congress if 
     there is a delay in meeting any deadline for a phase of the 
     acquisition process in the case of a major automated 
     information system program.
       The Senate amendment contained no similar provision.
       The House recedes.
     Role of Chairman of Board in certain reporting processes
       The House bill contained a provision (sec. 1704) that would 
     establish the role of the Chairman of the Defense Readiness 
     Production Board in certain Department of Defense processes.
       The Senate amendment contained no similar provision.
       The House recedes.
     Special authority for use of working capital funds for 
         critical readiness requirements
       The House bill contained a provision (sec. 1707) that would 
     provide special authority for the Secretary of Defense to 
     transfer funds from one working capital fund to another for 
     the purpose of addressing critical readiness programs.
       The Senate amendment contained no similar provision.
       The House recedes.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       Items of Special Interest

     Operationally responsive space
       The conferees continue to strongly support the concept of 
     operationally responsive space (ORS) and note that the joint 
     ORS program office was recently established with an Air Force 
     director and a deputy director that will rotate among the 
     services or other federal agencies. There are many 
     opportunities for work in the ORS office and the conferees 
     believe that the Department of Defense (DOD) decision to 
     categorize the potential work into three tiers is a good way 
     to begin to establish priorities for the office. Tier 1 
     activities focus on utilizing existing assets in new ways; 
     Tier 2 activities focus on payload and satellite bus work to 
     support rapid replacement, reconstitution, and quick reaction 
     capabilities that could be delivered in days to weeks. Tier 3 
     activities focus on the rapid development and deployment of 
     capabilities that are capable of delivery within months to a 
     year. Development of low-cost launch is embedded within these 
     tiers.
       The conferees urge the ORS office, working with the U.S. 
     Strategic Command and the Joint Staff, to develop a balanced, 
     integrated program that will include activities in all three 
     tiers. The conferees are concerned that the balance at 
     present may be too heavily focused in the direction of Tier 
     1. In the conference report accompanying the John Warner 
     National Defense Authorization Act for Fiscal Year 2007 
     (Conf. Rpt. 109-702), the conferees directed the Secretary of 
     Defense to establish the ORS office ``to facilitate the 
     development of low-cost, rapid reaction payloads, buses, 
     space-lift, and launch control capabilities to fulfill joint 
     military operational requirements for on-demand space support 
     and reconstition.'' Keeping in mind this guidance, the ORS 
     office should work to find the right niche for small, low-
     cost satellites and launch vehicles that will deliver the 
     most capability for the warfighter and focus activities in a 
     few high pay-off areas.
     Space acquisition
       The conferees continue to be concerned about the high 
     costs, the requirements process, and the priorities that have 
     been established in the space acquisition process. In many 
     instances capability decisions are made too quickly and on 
     the basis of a specific technology rather than as a result of 
     evaluating a range of technologies that could be used to 
     provide a desired capability. Programs have been terminated 
     early to free up funding for the next-generation satellite 
     systems, and new programs have been started with immature 
     technologies and without clear and feasible requirements. 
     Programs often have overly aggressive schedules, insufficient 
     funding, and inadequate personnel resources. When one or more 
     of these elements are combined the result has been a national 
     security space program plagued with schedule delays, 
     technical difficulties, and cost overruns, many of which are 
     quite large.
       While the conferees share the desire of the Department of 
     Defense (DOD) and the military services to provide the best 
     space capabilities to the warfighter as quickly as possible, 
     in many instances haste, inadequate planning, and overly 
     optimistic assumptions have in fact delayed programs, and 
     have made space system architectures fragile and vulnerable 
     to capability gaps. On the other hand, the conferees 
     recognize the challenge of designing, developing, and 
     launching satellites.
       In response to these programs the DOD, the Air Force, the 
     intelligence community, and the Navy have recently taken 
     steps to provide sufficient funding, focus on the 
     requirements process, and development of a sequential 
     approach to improving capability. This back-to-basics 
     approach is off to a good start, but more remains to be done 
     to improve the acquisition of space systems.
       The conferees believe the military and intelligence 
     communities need to work together to identify opportunities 
     for more joint programs that support both communities. In 
     addition to the black-white space integration, the conferees 
     stress the need for evolutionary acquisition strategies that 
     leverage mature technology. The conferees support and urge 
     the space community to carefully phase new programs and to 
     manage scarce resources, including funding, people, and 
     production capabilities.

                     Legislative Provisions Adopted

              Subtitle A--Department of Defense Management

     Repeal of limitation on major Department of Defense 
         headquarters activities personnel and related report 
         (sec. 901)
       The House bill contained a provision (sec. 901) that would 
     authorize the Secretary of Defense to waive the limitation in 
     section 130a of title 10, United States Code, on the number 
     of major Department of Defense headquarters activities 
     personnel.
       The Senate amendment contained a provision (sec. 901) that 
     would repeal the limitation in section 130a.
       The House recedes with an amendment that would require the 
     Secretary of Defense to include information on military and 
     civilian personnel assigned to major Department of Defense 
     headquarters activities in the materials submitted to 
     Congress by the Secretary of Defense in support of the budget 
     request for each fiscal year.
     Flexibility to adjust the number of deputy chiefs and 
         assistant chiefs (sec. 902)
       The House bill contained a provision (sec. 902) that would 
     amend sections 3035(b), 5036(a), and 5037(a) of title 10, 
     United States Code, to provide the service secretaries with 
     greater flexibility to determine the number of Deputy Chiefs 
     of Staff and Assistant Chiefs of Staff or, in the case of the 
     Navy, Deputy Chiefs of Naval Operations and Assistant Chiefs 
     of Naval Operations, not to exceed eight total positions for 
     each service.
       The Senate amendment contained a similar provision (sec. 
     906) that would provide this flexibility to the Secretary of 
     the Army.
       The Senate recedes.
     Change in eligibility requirements for appointment to 
         Department of Defense leadership positions (sec. 903)
       The House bill contained a provision (sec. 903) that would 
     amend sections 113, 132, and 134 of title 10, United States 
     Code, to reduce from 10 years to 5 years the period of time 
     following active duty military service before a commissioned 
     officer of a regular component can be appointed as Secretary 
     of Defense, Deputy Secretary of Defense, or Under Secretary 
     of Defense for Policy.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would reduce from 
     10 years to 7 years the period of time following active duty 
     military service before a commissioned officer of a regular 
     component could be appointed as Secretary of Defense, Deputy 
     Secretary of Defense, or Under Secretary of Defense for 
     Policy.

[[Page 32960]]


     Management of the Department of Defense (sec. 904)
       The House bill contained a provision (sec. 906) that would 
     require the Secretary of Defense to adopt a management 
     structure for the Department of Defense (DOD) and to assign 
     duties for significant management issues to a senior official 
     of a rank not lower than Under Secretary of Defense.
       The Senate amendment contained a provision (sec. 902) that 
     would: (1) designate the Deputy Secretary of Defense as the 
     Chief Management Officer (CMO) of the Department; (2) 
     establish a new position of Under Secretary of Defense for 
     Management (Deputy Chief Management Officer); (3) designate 
     the under secretaries of the military departments as the CMOs 
     of those departments; and (4) assign specific duties to the 
     CMOs of DOD and the military departments.
       The House recedes with an amendment that would: (1) 
     designate the Deputy Secretary of Defense as CMO of the 
     Department; (2) establish a new position of Deputy Chief 
     Management Officer of the Department of Defense; and (3) 
     require the Secretary of Defense and the secretaries of the 
     military departments to assign duties and authorities 
     relating to the management of the business operations for DOD 
     and the military departments.
       The conferees note that their intent in establishing a 
     Deputy CMO for DOD is to ensure that a senior official of the 
     Department has formal responsibility, on a full-time basis, 
     for assisting the CMO in accomplishing his or her duties in 
     the development, approval, integration and oversight of 
     policies, procedures, processes, and systems for the 
     management of the Department. In the view of the conferees, 
     the implementation of these policies, procedures, processes, 
     and systems should be left to other officials and components 
     of the Department.
       This section codifies the position of Deputy CMO in title 
     10, United States Code, at a level on the Executive Schedule 
     equivalent with the Under Secretaries of Defense for Policy, 
     Personnel and Readiness, Comptroller, and Intelligence. 
     However, the conferees do not intend for the Deputy CMO to 
     have a staff or office structure of a size equivalent to that 
     of an Under Secretary. Rather, the Deputy CMO's primary role 
     should be to assist the CMO in planning and oversight of 
     activities carried out by other offices. The conferees 
     believe strongly that the Deputy CMO's office should not be 
     of a size that could distract from that role.
     Revision in guidance relating to combatant command 
         acquisition authority (sec. 905)
       The House bill contained a provision (sec. 907) that would 
     modify existing law to eliminate the requirement that the 
     acquisition programs of U.S. Special Operations Command 
     support the acquisition priorities of the respective 
     services. The House provision would also revise the 
     consultation requirement between defense agencies and 
     military departments.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would strike the 
     revision in the consultation requirement contained in section 
     907(b).
     Department of Defense Board of Actuaries (sec. 906)
       The House bill contained a provision (sec. 908) that would 
     consolidate the Department of Defense Retirement Board of 
     Actuaries and the Department of Defense Education Benefits 
     Board of Actuaries into the Department of Defense Board of 
     Actuaries.
       The Senate amendment contained a similar provision (sec. 
     904).
       The House recedes.
     Modification of background requirement of individuals 
         appointed as Under Secretary of Defense for Acquisition, 
         Technology, and Logistics (sec. 907)
       The Senate amendment contained a provision (sec. 903) that 
     would delete the requirement that a nominee for the position 
     of Under Secretary of Defense for Acquisition, Technology, 
     and Logistics have extensive management background ``in the 
     private sector.''
       The House bill contained no similar provision.
       The House recedes.
       The conferees agree that management experience in the 
     private sector can be an extremely valuable asset for an 
     individual serving in the position of Under Secretary of 
     Defense for Acquisition, Technology, and Logistics. However, 
     the conferees conclude that other experience--including 
     management experience in the public sector--may also be 
     highly relevant to service in this position.
     Assistant secretaries of the military departments for 
         acquisition matters; principal military deputies (sec. 
         908)
       The Senate amendment contained a provision (sec. 905) that 
     would require the appointment of a three-star officer as the 
     principal deputy to the service acquisition executive in each 
     of the military departments. The provision would exclude the 
     principal deputies from distribution limitations on flag and 
     general officers.
       The House bill contained no similar provision.
       The House recedes with an amendment that would designate 
     the three-star officers as principal military deputies, 
     rather than principal deputies, to the service acquisition 
     executives. The conferees recommend this change to preserve 
     the option for the military departments to appoint principal 
     civilian deputies to the service acquisition executives in 
     addition to the principal military deputies.
       The provision would not address the distribution 
     limitations on flag and general officers. This issue is 
     addressed by a provision elsewhere in the conference report 
     that would amend section 525 of title 10, United States Code, 
     to authorize an increase in the number of flag or general 
     officers in each of the military services serving in a grade 
     above rear admiral or major general.
     Sense of Congress on term of office of the Director of 
         Operational Test and Evaluation (sec. 909)
       The Senate amendment contained a provision (sec. 907) that 
     would express the sense of Congress that the term of office 
     of the Director of Operational Test and Evaluation should be 
     not less than five years.
       The House bill contained no similar provision.
       The House recedes.

                      Subtitle B--Space Activities

     Space Protection Strategy (sec. 911)
       The House bill contained a provision (sec. 911) that would 
     set forth the policy of the United States with respect to the 
     priority within the Nation's space programs on the protection 
     of national security space systems. The provision would also 
     require the Secretary of Defense to develop a Space 
     Protection Strategy for four, 5-fiscal year periods beginning 
     in fiscal year 2008, and continuing through fiscal year 2025. 
     The first report on the strategy would be due March 15, 2008 
     with updated reports to be submitted biennially in every 
     even-numbered year thereafter. The provision would also 
     repeal section 911 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 set forth 
     the sense of Congress that the United States should place 
     greater priority on the protection of national security space 
     systems, direct that the strategy be developed in conjunction 
     with the Director of National Intelligence (DNI), and change 
     the due date of the first report on the strategy to no later 
     than 6 months after the date of enactment of this Act. The 
     report would also be prepared in conjunction with the DNI. In 
     addition, the amendment would clarify the elements to be 
     included in the strategy. The report on the strategy would be 
     submitted to the congressional defense committees and the 
     Committees on Intelligence in the Senate and the House of 
     Representatives.
       The conferees remain concerned about the growing threat to 
     and vulnerability of our Nation's space capabilities, 
     highlighted by the January 11, 2007 Chinese anti-satellite 
     test and other counterspace developments. Key protection and 
     space situational awareness (SSA) capabilities could mitigate 
     such vulnerabilities but continue to be underfunded. 
     Moreover, no clear strategy exists to guide SSA investments.
       Furthermore, the conferees believe that better coordination 
     of protection and SSA technology investments must occur and 
     that the Defense Advanced Research Projects Agency should be 
     consulted in the development of the strategy, to assist in 
     the development of suitable protection technologies.
       The committees with jurisdiction over the subject matter 
     requested will work with the respective executive branch 
     organizations to determine the proper recipients of all 
     information requested by Congress. This determination will be 
     made in accordance with House and Senate rules and with 
     respect to proper protections of sources and methods.
     Biennial report on management of space cadre within the 
         Department of Defense (sec. 912)
       The House bill contained a provision (sec. 912) that would 
     require the Secretary of Defense and each secretary of a 
     military department to develop and use metrics to identify, 
     track, and manage space cadre personnel within the Department 
     of Defense (DOD) and to ensure that there are enough people 
     with the necessary expertise, training, and experience to 
     meet current and future national security space needs. The 
     provision would also require a detailed report and assessment 
     on the management of the space cadre and DOD efforts to 
     ensure that the space cadre is appropriate to meet current 
     and future national security space needs.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
       The conferees note that many of the DOD and military 
     service members of the space cadre serve, over the course of 
     their careers, in a variety of space positions and in a 
     variety of defense and intelligence agencies, such as the 
     National Reconnaissance Office and other intelligence 
     organizations with space-related responsibilities. The 
     conferees believe that the report and assessment should also 
     include the requirements of these entities and the ability of 
     the space cadre to

[[Page 32961]]

     meet the current and future needs of these entities. 
     Therefore, the conferees urge the Secretary to coordinate and 
     consult with the Director of National Intelligence in the 
     preparation of this report.
     Additional report on oversight of acquisition for defense 
         space programs (sec. 913)
       The Senate amendment contained a provision (sec. 922) that 
     would extend the due date for the report on the oversight of 
     defense space acquisition programs required by section 911 of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003 (Public Law 107-314).
       The House bill contained no similar provision.
       The House recedes.

             Subtitle C--Chemical Demilitarization Program

     Chemical demilitarization citizens advisory commissions (sec. 
         921)
       The House bill contained a provision (sec. 921) that would 
     modify the termination requirements for the chemical 
     demilitarization citizens advisory commissions to permit the 
     commissions to remain in existence, at the discretion of the 
     Governor of the respective State, until either the closure of 
     that State's chemical agent destruction facility, or upon the 
     request of the Governor, whichever comes first.
       The Senate amendment contained a similar provision (sec. 
     1431).
       The Senate recedes.
     Sense of Congress on completion of destruction of United 
         States chemical weapons stockpile (sec. 922)
       The House bill contained a provision (sec. 922) that would 
     express the sense of Congress that the Department of Defense 
     should continue to plan for on-site disposal of chemical 
     stockpiles located at Pueblo Chemical Depot, Colorado, and 
     Blue Grass Army Depot, Kentucky, and that the Department 
     should ensure extensive consultation and notification 
     processes between representatives of the Department and 
     representatives of relevant States and local communities.
       The Senate amendment contained a provision (sec. 1433) that 
     would express the sense of Congress that the United States 
     must remain committed to making every effort to safely 
     destroy its chemical weapons stockpile by the Chemical 
     Weapons Convention deadline of April 2012, or as soon 
     thereafter as possible, and that the Secretary of Defense 
     should make every effort to plan for and request adequate 
     funding to complete such destruction in accordance with U.S. 
     obligations under the Chemical Weapons Convention. The 
     provision would also require biannual reports describing the 
     status of chemical weapons destruction; the options and 
     funding required for accelerating such destruction; and the 
     actions being taken to accelerate such destruction.
       The Senate amendment also contained a provision (sec. 2406) 
     that would, among other things, require the completion of the 
     destruction of the U.S. chemical weapons stockpile by no 
     later than December 31, 2017, and would require biannual 
     reports on progress to implement this destruction deadline.
       The House recedes with an amendment that would add several 
     findings and would add two elements to the required reports: 
     a description of the options and funding required to complete 
     chemical stockpile destruction by December 2017; and a life 
     cycle cost estimate for each facility included in the 
     descriptions of accelerated funding options.
     Repeal of certain qualifications requirement for director of 
         chemical demilitarization management organization (sec. 
         923)
       The Senate amendment contained a provision (sec. 1432) that 
     would repeal the requirement that the Army's Director of the 
     Chemical Materials Agency must be trained in chemical warfare 
     defense operations.
       The House bill contained no similar provision.
       The House recedes.
     Modification of termination of assistance to State and local 
         governments after completion of the destruction of the 
         United States chemical weapons stockpile (sec. 924)
       The Senate amendment contained a provision (sec. 1434) that 
     would permit the Chemical Stockpile Emergency Preparedness 
     Program to provide assistance to State and local governments 
     until existing grants or cooperative agreements are 
     completed, but not beyond 6 months after the date of 
     completion of the destruction of lethal chemical agents and 
     munitions at each chemical demilitarization installation or 
     facility.
       The House bill contained no similar provision.
       The House recedes.

                Subtitle D--Intelligence-Related Matters

     Technical amendments to title 10, United States Code, arising 
         from enactment of the Intelligence Reform and Terrorism 
         Prevention Act of 2004 (sec. 931)
       The House bill contained a provision (sec. 932) that would 
     make technical corrections to title 10, United States Code, 
     to reflect enactment of the Intelligence Reform and Terrorism 
     Prevention Act of 2004.
       The Senate amendment contained a similar provision (sec. 
     1068).
       The Senate recedes.

                Subtitle E--Roles and Missions Analysis

     Requirement for quadrennial roles and missions review (sec. 
         941)
       The House bill contained provisions (secs. 941-943) that 
     would require the Secretary of Defense to conduct a 
     quadrennial roles and missions review, to identify core 
     competencies of the military departments and other entities 
     within the Department of Defense, and to review the 
     capabilities that such departments and entities are 
     performing or developing.
       The Senate amendment contained no similar provisions.
       The Senate recedes with an amendment that would consolidate 
     these provisions into a single section. This provision would 
     require the Secretary to conduct a quadrennial roles and 
     missions review after receiving an independent military 
     assessment of roles and missions from the Chairman of the 
     Joint Chiefs of Staff.
     Joint Requirements Oversight Council additional duties 
         relating to core mission areas (sec. 942)
       The House bill contained a provision (sec. 944) that would 
     amend section 181 of title 10, United States Code, to revise 
     the mission of the Joint Requirements Oversight Council 
     (JROC) and address the participation of senior civilian 
     leaders of the Department of Defense in JROC proceedings.
       The Senate amendment contained a provision (sec. 841) that 
     would address the issue of participation by senior civilian 
     leaders in JROC proceedings.
       The Senate recedes with an amendment that would combine the 
     requirements of the two provisions.
     Requirement for certification of major systems prior to 
         technology development (sec. 943)
       The House bill contained a provision (sec. 945) that would 
     require the Joint Requirements Oversight Council (JROC) to 
     make certain certifications before the start of technology 
     development for a major system.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment requiring that the 
     Milestone Decision Authority for a major defense acquisition 
     program (MDAP) make the required certifications, after 
     consultation with the JROC, before the program may receive 
     Milestone A approval. The provision would also direct the 
     Secretary of Defense to ensure that the Department of Defense 
     does not commence a technology development program for a 
     major weapon system without Milestone A approval.
     Presentation of future-years mission budget by core mission 
         area (sec. 944)
       The House bill contained a provision (sec. 946) that would 
     amend section 222 of title 10, United States Code, to require 
     that the future-years mission budget of the Department of 
     Defense be organized by core mission area.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                       Subtitle F--Other Matters

     Department of Defense consideration of effect of climate 
         change on department facilities, capabilities, and 
         missions (sec. 951)
       The House bill contained a provision (sec. 951) that would 
     require that the first national security strategy, national 
     defense strategy, and quadrennial defense review prepared 
     after the date of the enactment of this Act include 
     consideration of the effect of climate change on Department 
     of Defense facilities, capabilities, and missions.
       The Senate amendment contained a similar provision (sec. 
     931).
       The Senate recedes with an amendment that would clarify the 
     conferees' expectation that this aspect of the national 
     security strategy and the national defense strategy, like 
     other aspects of those strategies, will be implemented in a 
     manner that is consistent with the national security 
     interests of the United States.
     Interagency policy coordination (sec. 952)
       The House bill contained a provision (sec. 952) that would 
     require the Secretary of Defense to develop and submit, not 
     later than 180 days after the date of enactment of this Act, 
     a plan to Congress to improve and reform the interagency 
     coordination process on national security issues.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify 
     that the plan required would be to improve the Department of 
     Defense's participation and contribution to the interagency 
     coordination process on national security issues.
       The conferees urge the President to require other relevant 
     agencies and departments to establish similar plans to 
     improve the overall interagency process for national 
     security, and to ensure that the Department of Defense, 
     simply by virtue of having a plan, does not become the de 
     facto dominant organization in the interagency coordination 
     process.
     Expansion of employment creditable under service agreements 
         under National Security Education Program (sec. 953)
       The House bill contained a provision (sec. 953) that would 
     modify the David L. Boren National Security Education Act of 
     1991 (50 U.S.C. 1902) to allow a recipient of support under 
     that Act to repay that service by working in an educational 
     area related to

[[Page 32962]]

     the discipline for which the support was provided. Such 
     educational service would only be permitted if the Secretary 
     of Defense were to determine that no position is available in 
     departments, agencies, or offices covered by Act.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Board of Regents for the Uniformed Services University of the 
         Health Sciences (sec. 954)
       The Senate amendment contained a provision (sec. 932) that 
     would amend chapter 104 of title 10, United States Code, to 
     authorize the Secretary of Defense to appoint the members of 
     the Board of Regents for the Uniformed Services University of 
     the Health Sciences (USUHS) without a requirement for the 
     advice and consent of the Senate, and would redesignate the 
     Dean of USUHS as the President of USUHS.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     require the Board to meet at least once a quarter.
       The conferees believe that this provision should not alter 
     the well-established role of the Board of Regents under its 
     charter to assist the Secretary of Defense in an advisory 
     capacity in carrying out the Secretary's responsibility to 
     conduct the business of USUHS and to provide advice and 
     recommendations to the Secretary of Defense on academic and 
     administrative matters critical to the full accreditation and 
     successful operation of the USUHS. The conferees value the 
     contributions and voluntary service of the members of the 
     Board and believe that the Board can best perform its 
     functions in coordination with the President of USUHS and the 
     Assistant Secretary of Defense for Health Affairs.
     Establishment of Department of Defense School of Nursing 
         (sec. 955)
       The Senate amendment contained a provision (sec. 556) that 
     would authorize the Secretary of Defense to create several 
     programs to address a national shortage of nursing 
     instructors at accredited nursing schools and aid in the 
     recruiting and retention of military nurses. The programs 
     could include: (1) authorizing active duty military nurse 
     officers with a graduate degree in nursing or a related field 
     to serve as full-time faculty at an accredited civilian 
     school of nursing in exchange for a commitment to additional 
     service in the armed forces; (2) authorizing active duty 
     military nurse officers with a graduate degree in nursing or 
     a related field to serve as full-time faculty at an 
     accredited civilian school of nursing in exchange for 
     scholarships provided by the nursing school to military nurse 
     officer candidates; (3) providing scholarships to retirement-
     eligible active duty military nurse corps officers who agree 
     to serve not less than 2 years as a full-time faculty member 
     of an accredited civilian school of nursing; (4) providing 
     career placement assistance, continuing education, and 
     stipends to retirement-eligible active duty military nurse 
     corps officers with a doctoral or master degree in nursing or 
     a related field who agree, in return, to serve as a full-time 
     faculty member of an accredited school of nursing; and (5) 
     supplemental salary payments to a retired military nurse 
     corps officer serving as a full-time faculty member of a 
     civilian accredited school of nursing to compensate for any 
     difference between base pay to which the retired officer was 
     entitled immediately before retirement and the sum of the 
     officer's retired pay and the salary received from the 
     nursing school.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to develop a detailed plan to establish a 
     Department of Defense School of Nursing within the Uniformed 
     Services University of Health Sciences (USUHS). The amendment 
     would also authorize the Secretary to establish a school of 
     nursing within USUHS that could lead to the award of a 
     bachelor of science or graduate degree in nursing. The 
     conferees note the shortage of nurses in the military, and 
     encourage the Department to establish a Department of Defense 
     school of nursing as soon as practicable.
       The conferees direct the Secretary to conduct a study to 
     determine whether a program to provide incentives to retired 
     military nurse corps officers to serve as faculty at civilian 
     nursing schools, sometimes referred to as ``Retired Troops to 
     Nurse Teachers,'' could help to alleviate the current and 
     projected nursing shortage in the military services. The 
     conferees believe that an essential part of any such program 
     should ensure that the Department would receive a tangible 
     benefit in exchange for partially funding the program. The 
     study should include the following elements: (1) the number 
     of retired military nurse corps officers who have at least 20 
     years of active federal commissioned service who would be 
     eligible to participate in such a program; (2) whether 
     colleges or universities at which retired military nurse 
     instructors would serve would award and fund at least two 
     full scholarships per academic year to military nurse corps 
     candidates in return for a commitment to serve in the armed 
     forces as a military nurse corps officer; (3) for each 
     nursing student awarded such a scholarship that fails to 
     access into the armed forces as a military nurse, the 
     recourse that would be available to the Department; (4) 
     whether the retired military nurse corps officer instructor 
     should be paid by the college or university at a comparable 
     rate, as determined by the Secretary, to other faculty at the 
     school based upon their skills, experience, and 
     certification(s); (5) when the sum of the comparable salary 
     offered to the retired military nurse corps officer 
     instructor and the instructor's retired pay is less than the 
     amount that the member's base pay (based on grade and time in 
     service) would be if the member was still on active duty, 
     should the Secretary reimburse the retired military nurse 
     corps officer for any difference; and (6) any other relevant 
     factors, as determined by the Secretary. The Secretary should 
     submit a report on the findings and recommendations of this 
     study to the Committees on Armed Services of the Senate and 
     the House of Representatives by March 1, 2008.
     Inclusion of commanders of Western Hemisphere combatant 
         commands in Board of Visitors of Western Hemisphere 
         Institute for Security Cooperation (sec. 956)
       The Senate amendment contained a provision (sec. 935) that 
     would authorize all combatant commanders, or their directed 
     designees, who have responsibility in the Western Hemisphere 
     to be members of the Western Hemisphere Institute for 
     Security Cooperation Board of Visitors.
       The House bill contained no similar provision.
       The House recedes.
     Comptroller General assessment of reorganization of the 
         office of the Under Secretary of Defense for Policy (sec. 
         957)
       The Senate amendment contained a provision (sec. 936) that 
     would require the Comptroller General to submit to the 
     congressional defense committees, not later than March 1, 
     2008, a report assessing the most recent reorganization of 
     the office of the Under Secretary of Defense for Policy 
     (USDP).
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that, among 
     other things, would require the report to be submitted by 
     June 1, 2008.
       The conferees note the concerns expressed in the report 
     accompanying the Senate amendment (S. Rpt. 110-77). While the 
     conferees understand that the office of the USDP plans on 
     evaluating the reorganization in terms of stakeholder input, 
     internal assessment, and performance metrics in February 
     2008, they also note that they have been made aware of other 
     concerns, which that review may not address, including: (1) 
     the possible absence of a dissent channel within the 
     Department of Defense (DOD) and, in particular, the USDP's 
     office that personnel may use to present alternative views, 
     analyses, and policy recommendations at variance with those 
     in place or being submitted to senior leadership for 
     consideration; (2) the impact of the process, as conducted in 
     November 2006 and implemented in early 2007, whereby career 
     civil servants ``bid'' on positions within the USDP's office 
     on overall levels of personnel morale, expertise, and 
     effectiveness. Of specific concern are those positions that 
     deal with policy towards Iraq, Afghanistan, Pakistan, and 
     other regional and functional areas critical to national 
     security; and (3) the fact that foreign affairs specialists 
     (i.e., GS-130 series) from those field agencies and offices 
     associated with the office of the USDP--i.e., the Defense 
     Security Cooperation Agency, the Defense Technology Security 
     Administration, and the Defense Prisoner of War/Missing 
     Personnel Office--were not included in the personnel 
     assignment bidding system, even though they are eligible to 
     apply for vacancies in the office of the USDP. The conferees 
     recommend that the Comptroller General also assess the impact 
     of these issues on the overall effectiveness and efficiency 
     of the office of the USDP.
     Reports on foreign language proficiency (sec. 958)
       The House bill contained a provision (sec. 931) that would 
     require the Secretary of Defense and the secretaries of the 
     military departments to submit annual reports on the foreign 
     language proficiencies of the military departments and the 
     Department of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that, among 
     other things, terminates the reporting requirement on 
     December 31, 2013.

                   Legislative Provisions Not Adopted

     Future capability planning by Joint Requirements Oversight 
         Council
       The House bill contained a provision (sec. 947) that would 
     require that each operational and contingency plan of the 
     Department of Defense include an extended planning annex 
     assessing capabilities required to perform the planned 
     missions.
       The Senate amendment contained no similar provision.
       The House recedes.
       The issue of whether, and how, the combatant commands 
     should participate in long-term planning for future 
     capabilities is addressed in a separate provision.

[[Page 32963]]


     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 
     redesignate the Department of the Navy as the Department of 
     the Navy and Marine Corps and the position of the Secretary 
     of the Navy as the Secretary of the Navy and Marine Corps.
       The Senate amendment contained no similar provision.
       The House recedes.
     Revisions in functions and activities of special operations
       The House bill contained a provision (sec. 904) that would 
     amend section 167(a) of title 10, United States Code, to 
     modify the authorities governing U.S. Special Operations 
     Command (SOCOM) to accurately reflect current mission 
     requirements.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees will work with the Department of Defense and 
     SOCOM to ensure that title 10 continues to accurately reflect 
     the missions of SOCOM and the activities of special 
     operations forces. In addition, the conferees remain 
     concerned about the evolving requirements associated with the 
     concepts of irregular and unconventional warfare, especially 
     as they pertain to the Department's personnel management 
     programs. The conferees support the concerns raised in House 
     Report 110-146 calling for a full spectrum analysis on 
     irregular warfare. The conferees direct the Secretary of 
     Defense to initiate the requirements of this study and 
     deliver the results to the congressional defense committees 
     by June 1, 2008.
     Space posture review
       The Senate amendment contained a provision (sec. 921) that 
     would direct the Secretary of Defense and the Director of 
     National Intelligence to conduct a comprehensive review of 
     the space posture of the United States.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the space posture review previously 
     required was submitted.
     United States Military Cancer Institute
       The Senate amendment contained a provision (sec. 933) that 
     would require the Secretary of Defense to establish a United 
     States Military Cancer Institute in the Uniformed Services 
     University of the Health Sciences.
       The House bill contained no similar provision.
       The Senate recedes.
     Western Hemisphere Center for Excellence in Human Rights
       The Senate amendment contained a provision (sec. 934) that 
     would authorize the Secretary of Defense to establish a 
     Western Hemisphere Human Rights Center to continue and expand 
     the work that began under U.S. Southern Command's Human 
     Rights Initiative.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees support the U.S. Southern Command's 
     activities on behalf of human rights in the Western 
     Hemisphere. However, rather than authorize the creation of a 
     new institution, the conferees prefer that the Southern 
     Command work out an arrangement, with the Center for 
     Hemispheric Defense Studies, which would provide for gifts 
     and donations to be directed from the regional center to the 
     human rights activities of Southern Command through the gift 
     and donation authority that Congress has already provided to 
     the regional centers.

                      TITLE X--GENERAL PROVISIONS

                       Items of Special Interest

     Ship disposal
       The Senate report (S. Rept. 110-77) accompanying the 
     National Defense Authorization Act for Fiscal Year 2008 (S. 
     1547) contained direction for the Navy to maintain 
     decommissioned LHA-1 class amphibious assault ships in a 
     reduced operating status until such time that the active 
     fleet could deliver 2.0 Marine Expeditionary Brigade forcible 
     entry lift capability in response to a national emergency. 
     Total forcible lift entry capability was to be assessed under 
     the assumption that no less than 10 percent of the force will 
     be unavailable due to extended duration maintenance 
     availabilities.
       The conferees agree with the intent of this provision. The 
     conferees understand that the Navy's preferred method of 
     meeting this intent would be to retain decommissioned LHA-1 
     class amphibious assault ships in a mobilization category B 
     status.
       The conferees agree to direct the Navy to: (1) maintain 
     these ships in mobilization category B status until such time 
     that the active fleet could deliver 2.0 Marine Expeditionary 
     Brigade forcible entry lift capability in response to a 
     national emergency; and (2) assess total forcible lift entry 
     capability under the assumption that no less than 10 percent 
     of the force will be unavailable due to extended duration 
     maintenance availabilities.
     Table of congressionally directed spending and related items
       In accordance with the requirements of Rule XLIV of the 
     Standing Rules of the Senate and Rules XXI and XXIII of the 
     Rules of the House of Representatives, this joint statement 
     of managers includes a table listing congressionally-directed 
     spending items, congressional earmarks, limited tax benefits, 
     or limited tariff benefits requested by Senators and Members, 
     regardless whether the expenditure is directed to a 
     particular entity or targeted to a specific State, locality, 
     or congressional district. By including this table in the 
     statement of managers, the conferees do not take the position 
     that all of the items meet the definitions of an earmark or a 
     congressionally-directed spending item in the Rules of the 
     Senate or the House of Representatives.
       The conferees direct the Department of Defense to use all 
     applicable competitive, merit-based procedures in the 
     awarding of any new contract, grant, or other agreement which 
     is entered into with funds that are authorized to be 
     appropriated by this conference report and statement of 
     managers. No provision in the conference report or statement 
     of managers shall be construed to direct funds to any 
     particular location or entity unless the provision expressly 
     so provides.

                     Subtitle A--Financial Matters

     General transfer authority (sec. 1001)
       The House bill contained a provision (sec. 1001) that would 
     provide for the transfer of up to $4.5 billion of funds 
     authorized in Division A of this Act to unforeseen higher 
     priority needs in accordance with normal reprogramming 
     procedures.
       The Senate amendment contained a similar provision (sec. 
     1001) that would provide for the transfer of up to $5.0 
     billion in authorizations and would exempt transfers of funds 
     between military personnel authorizations from the dollar 
     limitation in this provision.
       The House recedes.
     United States contribution to NATO common-funded budgets in 
         fiscal year 2008 (sec. 1002)
       The House bill contained a provision (sec. 1002) that would 
     authorize the U.S. contribution to North Atlantic Treaty 
     Organization (NATO) common-funded budgets for fiscal year 
     2008, including the use of unexpended balances.
       The Senate amendment contained an identical provision (sec. 
     1004).
       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.
     Authorization of additional emergency supplemental 
         appropriations for fiscal year 2007 (sec. 1003)
       The Senate amendment contained a provision (sec. 1002) that 
     would authorize the additional supplemental appropriations 
     for operations in Iraq and Afghanistan, and for other 
     purposes, for fiscal year 2007 that were enacted in Public 
     Law 110-28.
       The House bill contained no similar provision.
       The House recedes.
     Modification of fiscal year 2007 general transfer authority 
         (sec. 1004)
       The Senate amendment contained a provision (sec. 1003) that 
     would modify the transfer authority provided in section 1001 
     of the John Warner National Defense Authorization Act for 
     Fiscal Year 2007 (Public Law 109-364) by exempting the 
     transfer of funds previously approved by the committees in 
     two reprogramming actions from the dollar limitation in that 
     provision.
       The House bill contained no similar provision.
       The House recedes.
     Financial management transformation initiative for the 
         Defense Agencies (sec. 1005)
       The Senate amendment contained a provision (sec. 1005) that 
     would require the Director of the Business Transformation 
     Agency of the Department of Defense to carry out an 
     initiative for financial management transformation in the 
     Defense Agencies.
       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) require 
     the Director to consult with the Comptroller of the 
     Department of Defense to ensure that the initiative is 
     carried out in a manner that is consistent with the financial 
     standards and requirements of the Department of Defense; and 
     (2) provide greater specificity on the requirements for the 
     plan on development and implementation of the initiative.
     Repeal of requirement for two-year budget cycle for the 
         Department of Defense (sec. 1006)
       The Senate amendment contained a provision (sec. 1006) that 
     would repeal the requirement enacted in the National Defense 
     Authorization Act for Fiscal Year 1986 (Public Law 99-145) 
     for the Department of Defense to submit a biennial budget as 
     part of the President's budget request for even-numbered 
     fiscal years.

[[Page 32964]]

       The House bill contained no similar provision.
       The House recedes.

          Subtitle B--Policy Relating to Vessels and Shipyards

     Limitation on leasing of vessels (sec. 1011)
       The House bill contained a provision (sec. 1011) that would 
     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. This would include 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 Senate recedes with an amendment that would require the 
     secretary of a military department to notify the 
     congressional defense committees 30 days prior to making a 
     contract for lease of a vessel, or for the provision of a 
     service through use by a contractor of a vessel, if the term 
     of the lease is for a period of greater than 2 years. The 
     secretary's notification is to include a description of the 
     terms of the lease, a justification for leasing rather than 
     purchasing a vessel for such service, a determination that 
     the lease contract provides the most cost-effective means for 
     obtaining such service, and a plan for meeting the 
     requirements provided by the leased vessel upon completion of 
     the term of the lease.
     Policy relating to major combatant vessels of the strike 
         forces of the United States Navy (sec. 1012)
       The House bill contained a provision (sec. 1012) that would 
     require that all new ship classes of submarines, aircraft 
     carriers and cruisers and large escorts for carrier strike 
     groups, expeditionary strike groups, and vessels comprising a 
     sea base have integrated nuclear power systems. The provision 
     would allow a single exception to the requirement: if the 
     Secretary of Defense were to submit, with the budget request 
     for such a vessel, a notification that the inclusion of an 
     integrated nuclear power system is not in the national 
     interest.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The Navy's next opportunity to apply this guidance will be 
     the next generation cruiser, or ``CG(X)''. Under the current 
     future-years defense program (FYDP), the Navy plans to award 
     the construction contract for CG(X) in fiscal year 2011. 
     Under this provision, the next cruiser would be identified as 
     ``CGN(X)'' to designate the ship as nuclear powered. Under 
     the Navy's normal shipbuilding schedule for the two programs 
     that already have nuclear power systems (aircraft carriers 
     and submarines), the Navy seeks authorization and 
     appropriations for long lead time nuclear components for 
     ships 2 years prior to full authorization and appropriation 
     for construction.
       The conferees recognize that the milestone decision for the 
     Navy's CG(X) is only months away. After that milestone 
     decision, the Navy and its contractors will begin a 
     significant design effort, and, in that process, will be 
     making significant tradeoff decisions and discarding major 
     options (such as propulsion alternatives). This is the normal 
     process for the Navy and the Department of Defense (DOD) to 
     make choices that will lead to producing a contract design 
     that will be the basis for awarding the construction contract 
     for the lead ship in 2011.
       In order for the Navy to live by the spirit of this 
     guidance, the conferees agree that:
       (1) the Navy would be required to proceed through the 
     contract design phase of the program with a comprehensive 
     effort to design a CGN(X) independent of the outcome of 
     decisions that the Navy or the DOD will make at the next 
     milestone decision point regarding any preferred propulsion 
     system for the next generation cruiser;
       (2) if the Navy intends to maintain the schedule in the 
     current FYDP and award a vessel in fiscal year 2011, the Navy 
     would need to request advance procurement for nuclear 
     components in the fiscal year 2009 budget request; and
       (3) the Navy must consider options for:
       (a) maintaining the segment of the industrial base that 
     currently produces the conventionally powered destroyer and 
     amphibious forces of the Navy;
       (b) certifying yards which comprise that segment of the 
     industrial base to build nuclear-powered vessels; or
       (c) seeking other alternatives for building non-nuclear 
     ships in the future if the Navy is only building nuclear-
     powered surface combatant ships for some period of time as it 
     builds CGN(X) vessels; and
       (d) identifying sources of funds to pay for the additional 
     near-term costs of the integrated nuclear power system, 
     either from offsets within the Navy's budget, from elsewhere 
     within the Department's resources, or from gaining additional 
     funds for DOD overall.
       The conferees recognize that these considerations will 
     require significant additional near-term investment by the 
     Navy. Some in the Navy have asserted that, despite such added 
     investment, the Navy would not be ready to award a 
     shipbuilding contract for a CGN(X) in fiscal year 2011 as in 
     the current FYDP.
       Section 128 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364) 
     required that the Navy include nuclear power in its Analysis 
     of Alternatives (AOA) for the CG(X) propulsion system. The 
     conferees are aware that the CG(X) AOA is nearing completion, 
     in which case the Navy should have some indications of what 
     it will require to design and construct a CGN(X) class.
       Accordingly, the conferees direct the Secretary of the Navy 
     to submit a report to the congressional defense committees 
     with the budget request for fiscal year 2009 providing the 
     following information:
       (1) the set of next generation cruiser characteristics, 
     such as displacement and manning, which would be affected by 
     the requirement for including an integrated nuclear power 
     system;
       (2) the Navy's estimate for additional costs to develop, 
     design, and construct a CGN(X) to fill the requirement for 
     the next generation cruiser, and the optimal phasing of those 
     costs in order to deliver CGN(X) most affordably;
       (3) the Navy's assessment of any effects on the delivery 
     schedule for the first ship of the next generation cruiser 
     class that would be associated with shifting the design to 
     incorporate an integrated nuclear propulsion system, options 
     for reducing or eliminating those schedule effects, and 
     alternatives for meeting next generation cruiser requirements 
     during any intervening period if the cruiser's full 
     operational capability were delayed;
       (4) the Navy's estimate for the cost associated with 
     certifying those shipyards that currently produce 
     conventionally powered surface combatants, to be capable of 
     constructing and integrating a nuclear-powered combatant;
       (5) any other potential effects on the Navy's 30-year 
     shipbuilding plan as a result of implementing these factors;
       (6) such other considerations that would need to be 
     addressed in parallel with design and construction of a 
     CGN(X) class, including any unique test and training 
     facilities, facilities and infrastructure requirements for 
     potential CGN(X) homeports, and environmental assessments 
     that may require long-term coordination and planning; and
       (7) an assessment of the highest risk areas associated with 
     meeting this requirement, and the Navy's alternatives for 
     mitigating such risk.

                  Subtitle C--Counter-Drug Activities

     Extension of authority for joint task forces to provide 
         support to law enforcement agencies conducting counter-
         terrorism activities (sec. 1021)
       The House bill contained a provision (sec. 1021) that would 
     amend section 1022(b) of the National Defense Authorization 
     Act for Fiscal Year 2004 (Public Law 108-136) to extend the 
     authority for joint task forces to provide support to law 
     enforcement agencies conducting counterterrorism activities 
     through fiscal year 2008.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees support the use of counternarcotics funds to 
     concurrently conduct counterterrorist and counternarcotics 
     activities, but urge the Department of Defense to be mindful 
     of the original intent of the Counternarcotics Central 
     Transfer Account, and to ensure that adequate resources 
     continue to be available for counternarcotics activities 
     where there is no nexis with counterterrorism. The conferees 
     will closely scrutinize the use of this authority over the 
     next fiscal year to determine whether it should be extended 
     in future years.
     Expansion of authority to provide additional support for 
         counterdrug activities in certain foreign countries (sec. 
         1022)
       The House bill contained a provision (sec. 1022) that would 
     expand additional counterdrug support to the Government of 
     Mexico and the Government of the Dominican Republic.
       The Senate amendment contained a similar provision.
       The Senate recedes with a technical amendment.
     Report on counternarcotics assistance for the Government of 
         Haiti (sec. 1023)
       The Senate amendment contained a provision (sec. 1012) that 
     would require the President to submit to Congress a report on 
     counternarcotics assistance to the Government of Haiti.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

         Subtitle D--Miscellaneous Authorities and Limitations

     Provision of Air Force support and services to foreign 
         military and state aircraft (sec. 1031)
       The Senate amendment contained a provision (sec. 1028) that 
     would provide permanent authority for the Secretary of the 
     Air Force to furnish supplies and services to foreign 
     military and other state aircraft.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

[[Page 32965]]


     Department of Defense participation in Strategic Airlift 
         Capability Partnership (sec. 1032)
       The Senate amendment contained a provision (sec. 1029) that 
     would permit the Secretary of Defense to enter into a 
     multilateral memorandum of understanding authorizing the 
     Strategic Airlift Capability Partnership for the purpose of 
     acquiring, operating, and supporting strategic airlift 
     aircraft. The provision would also provide the Secretary of 
     Defense the authority to transfer one strategic airlift 
     aircraft to the Strategic Airlift Capability Partnership.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees provide this authority with the expectation 
     that in allocating use of this shared strategic airlift 
     capability, the Partnership will give priority to airlift 
     support for North Atlantic Treaty Organization (NATO) 
     missions.
       The conferees are concerned that they do not have 
     sufficient visibility into the Department of Defense's plans 
     for seeking these kinds of authorities in the future. If the 
     Department is considering other similar multilateral 
     arrangements for the acquisition or operation of aircraft 
     under mutually beneficial relationships with foreign 
     partners, the Department should consider, in consultation 
     with Congress, whether it would be appropriate to develop an 
     overarching legal structure for multilateral procurement and 
     operations and how best to ensure appropriate transparency 
     and congressional oversight.
     Improved authority to provide rewards for assistance in 
         combating terrorism (sec. 1033)
       The House bill contained a provision (sec. 1043) that would 
     amend section 127b of title 10, United States Code, to 
     increase the size of payments allowed under the Department of 
     Defense's combating terrorism rewards program and provide new 
     authority for U.S. Government personnel to provide rewards 
     through government personnel of coalition or partnered 
     nations.
       The Senate amendment contained a similar provision (sec. 
     1021).
       The Senate recedes with an amendment that would: (1) permit 
     the expansion of the authority to cover information provided 
     to allied forces; and, (2) grant the authority for 2 years.
     Support for non-federal development and testing of material 
         for chemical agent defense (sec. 1034)
       The House bill contained a provision (sec. 1045) that would 
     authorize the Secretary of Defense, in coordination with the 
     heads of other elements of the Federal Government, to provide 
     small quantities of toxic chemicals or their precursors to a 
     State or local government, or a private entity incorporated 
     in the United States, for development or testing of material 
     designed to be used for defensive purposes. The provision 
     would require that any such transfer must be consistent with 
     the provisions of the Chemical Weapons Convention, and 
     subject to any terms and conditions required by the 
     Secretary.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to provide Congress with an annual report 
     describing each use of the authority, including a description 
     of what material was made available and to whom it was made 
     available.
     Prohibition on sale of F-14 fighter aircraft and related 
         parts (sec. 1035)
       The House bill contained a provision (sec. 1049) that would 
     prohibit the Department of Defense from selling F-14 parts to 
     any entity other than a museum or similar organization in the 
     United States acquiring the parts to preserve aircraft for 
     historical purposes. The provision would also prohibit the 
     granting of an export license for any F-14 part.
       The Senate amendment contained a similar provision (sec. 
     1031).
       The House recedes with an amendment that would clarify that 
     this provision applies to F-14 aircraft, parts unique to the 
     F-14 aircraft, and tooling or dies used in the manufacture of 
     F-14s or F-14-unique parts.
       The conferees encourage the Department of Defense to 
     consider destroying F-14s, F-14-unique parts, and the tooling 
     and dies used in the manufacture of F-14s, except as noted in 
     the legislative provision. Any contract for destruction 
     should require the reduction of these items into scrap 
     pieces, thereby rendering the parts and materials useless for 
     the originally intended purpose and incapable of being 
     duplicated, copied, or reverse engineered. If the Department 
     chooses to destroy these items, the Department could then 
     sell the resultant scrap as appropriate.

                          Subtitle E--Reports

     Extension and modification of report relating to hardened and 
         deeply buried targets (sec. 1041)
       The House bill contained a provision (sec. 1031) that would 
     extend the reporting requirement on weapons for hardened and 
     deeply buried targets until 2013, change the nature of the 
     report from an annual report to a biennial report, and modify 
     the scope of the report to cover capabilities to defeat 
     hardened and deeply buried targets rather than just weapons. 
     In addition, the provision would direct that each report 
     cover activities for 4 fiscal years rather than 1 fiscal 
     year.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would retain the 
     requirement to focus on weapons in the report.
     Report on joint modeling and simulation activities (sec. 
         1042)
       The House bill contained a provision (sec. 1033) that would 
     require a report on a national joint modeling and simulation 
     (M&S) development strategy.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     reporting requirements and submission date. The conferees 
     agree to require a report that would include a description of 
     ongoing and planned joint M&S activities and a description of 
     how they support defense missions, strategies, and goals; a 
     description of the M&S capabilities of defense organizations 
     and how they will be modernized or divested over time as 
     appropriate; a description of how non-defense organizations 
     can utilize joint M&S capabilities; budget and resource 
     estimates for the M&S capabilities; and a description of 
     coordination activities between the Department of Defense's 
     M&S activities and other federal, non-federal, and private 
     sector M&S activities.
       Further, the conferees note the promise of M&S to enhance 
     urban operations capabilities. The conferees believe that it 
     is important for the Department to study and understand the 
     effect of warfare and natural disasters on urban environments 
     and to develop M&S capabilities to support consequence 
     management missions in complex urban environments.
     Renewal of submittal of plans for prompt global strike 
         capability (sec. 1043)
       The Senate amendment contained a provision (sec. 1041) that 
     would amend section 1032(b) of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136) 
     to extend the due dates for the annual report on prompt 
     global strike capability through 2009.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that the report required by section 1032 
     is a broad report covering both global and long-range strike 
     plans as well as prompt global strike.
     Report on workforce required to support the nuclear missions 
         of the Navy and the Department of Energy (sec. 1044)
       The Senate amendment contained a provision (sec. 1045) that 
     would require the Secretary of Defense and the Secretary of 
     Energy to each submit to Congress a report on the 
     requirements for a workforce to support the nuclear missions 
     of the Navy and the Department of Energy for a 10-year period 
     beginning on the date of the report. The report would be due 
     1 year from the date of enactment of this Act.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Comptroller General report on Defense Finance and Accounting 
         Service response to Butterbaugh v. Department of Justice 
         (sec. 1045)
       The Senate amendment contained a provision (sec. 1046) that 
     would require the Comptroller General of the United States to 
     submit a report to the congressional defense committees 
     assessing the response of the Defense Finance and Accounting 
     Service to the 2003 decision in the case of Butterbaugh v. 
     Department of Justice, 336 F.3d 1332 (Fed. Cir. 2003).
       The House bill contained no similar amendment.
       The House recedes.
     Study on size and mix of airlift force (sec. 1046)
       The Senate amendment contained a provision (sec. 1049) that 
     would require the Secretary of Defense to conduct a study on 
     the size and mix of various assets for the Air Force 
     intertheater airlift force, with a particular focus on 
     current and planned capabilities and costs of the C-5 
     aircraft and the C-17 aircraft fleets.
       The House bill contained no similar provision.
       The House recedes with an amendment that would broaden the 
     review to cover a review of alternatives on the size and mix 
     of intertheater and intratheater airlift assets to meet the 
     national military strategy. The provision would require that 
     the study also evaluate the contribution of both organic and 
     commercial assets, the latter coming primarily from the Civil 
     Reserve Airlift Fleet.
       Within the analysis of the optimal mix of the C-5 and C-17 
     aircraft for the strategic airlift, the conferees expect that 
     the report will:
       (1) Provide a thorough review of an internal Air Force 
     briefing that posited a retirement of 30 C-5A aircraft, and a 
     purchase of 30 more C-17 aircraft, sometimes called the ``30/
     30 Plan.''

[[Page 32966]]

       (2) Include a full range of options for making C-5 upgrades 
     and buying additional C-17 aircraft to include doing both 
     (upgrading all C-5s and purchasing more C-17s) and doing 
     neither (upgrading none of the C-5s and buying no more C-
     17s).
     Report on feasibility of establishing a domestic military 
         aviation national training center (sec. 1047)
       The Senate amendment contained a provision (sec. 1096) that 
     would require the Secretary of Defense to submit to the 
     congressional defense committees a report to determine the 
     feasibility of establishing a Border State Aviation Training 
     Center to support the current and future requirements of the 
     existing RC-26 training site for counterdrug activities 
     located at the Fixed Wing Army National Guard Aviation 
     Training Site.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     require the Secretary of Defense to assess the training 
     requirements associated with a multitude of Guard and reserve 
     missions.
     Limited field user evaluations for combat helmet pad 
         suspension systems (sec. 1048)
       The House bill contained a provision (sec. 234) that would 
     require the Secretary of Defense to carry out a test and 
     evaluation of combat helmet pad suspension systems that meet 
     current military specifications by a certified and qualified 
     independent laboratory as well as an operational user 
     assessment of the qualified pad suspension systems that would 
     consider key parameters of form, fit, function, cost, 
     schedule, performance, and vendor production capacity.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the use of funds from the Operation and Maintenance, Army 
     appropriation and would change the required test to a limited 
     field user evaluation that compares form, fit, and function 
     among the several pad suspension systems that are already 
     qualified as part of combat helmet procurement for the 
     military services.
       The conferees note that the Army and Marine Corps have 
     recently increased the technical performance standards of the 
     combat helmet system to improve protection against blunt 
     trauma and non-ballistic impacts in order to further reduce 
     risk of traumatic brain injury. Pad suspension systems are a 
     critical feature of the combat helmet related to this 
     protection. The conferees also note anecdotal evidence that 
     pad suspension systems vary with respect to comfort and 
     function while worn that could influence service members' 
     wearing habits. A limited field user evaluation would provide 
     the Army and Marine Corps with valuable feedback on the 
     different pad systems' relative advantages and disadvantages 
     beyond their technical performance specifications and 
     capability.
     Study on national security interagency system (sec. 1049)
       The House bill contained a provision (sec. 954) that would 
     authorize the Secretary of Defense to enter into an agreement 
     with an independent, nonpartisan, nonprofit organization to 
     conduct a study on the national security interagency system.
       The Senate amendment contained a similar provision (sec. 
     1043) that would require the Secretary to enter into an 
     agreement for such a study.
       The House recedes with an amendment that would require the 
     Secretary of Defense to enter into an agreement for the study 
     within 30 days of enactment of this Act, eliminate the 
     requirement that the organization conducting the study secure 
     matching funds from private sources, and set a reporting 
     deadline of September 1, 2008.
       The conferees believe that the interagency coordination and 
     integration of the United States Government for the training 
     for, planning of, support for, and execution of overseas 
     post-conflict contingency relief and reconstruction 
     operations requires reform and that recent operations, most 
     notably in Iraq, lacked the necessary consistent and 
     effective interagency coordination and integration in 
     planning and execution. As a result, the conferees note that 
     the study conducted under the authority of this section 
     should include, but not be limited to, the following 
     elements: a synthesis of past studies evaluating the 
     successes and failures of previous interagency efforts at 
     training for, planning, and executing post-conflict 
     contingency relief and reconstruction operations, including 
     relief and reconstruction operations in Iraq; an analysis of 
     the division of authorities, duties, responsibilities, 
     functions, and resources among executive branch agencies for 
     such operations and recommendations for administrative and 
     regulatory changes to enhance integration to include planning 
     capabilities, personnel policies and systems, information-
     sharing policies and systems, and acquisition authorities; 
     recommendations for legislation that would improve 
     interagency cooperation and integration and the efficiency of 
     the United States Government in the planning and execution of 
     such operations; and recommendations for improvements in 
     congressional, executive, and other oversight structures and 
     procedures that would enhance accountability within such 
     operations.
     Report on solid rocket motor industrial base (sec. 1050)
       The Senate amendment contained a provision (sec. 1086) that 
     would direct the Secretary of Defense to submit a report to 
     the congressional defense committees on the status, 
     viability, and capacity of the solid rocket motor industrial 
     base. The provision would also direct the Comptroller General 
     of the United States to assess the report and set forth the 
     Comptroller General's assessment of the matters contained in 
     the report.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     requirement for the Comptroller General to assess the matters 
     in the report submitted by the Secretary of Defense and make 
     clarifications in elements of the reporting requirement.
       The conferees believe that the congressional defense 
     committees should first receive and review the report 
     submitted by the Secretary of Defense and make a 
     determination at that time if there is a need for the 
     Comptroller to review the report.
     Reports on establishment of a memorial for members of the 
         Armed Forces who died in the air crash in Bakers Creek, 
         Australia, and establishment of other memorials in 
         Arlington National Cemetery (sec. 1051)
       The House bill included a provision (sec. 1055) that would 
     express the sense of Congress that an appropriate site in 
     Arlington National Cemetery (ANC) should be provided for a 
     memorial marker to honor the memory of the 40 members of the 
     Armed Forces of the United States who lost their lives in the 
     air crash at Bakers Creek, Australia, on June 14, 1943.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of the Army, not later than April 1, 2008, to 
     submit a report on locations outside of ANC that would serve 
     as a suitable site for the establishment of a memorial to 
     these service members. The amendment would also require the 
     Secretary of the Army to provide a report and, if needed, 
     proposed legislation by April 1, 2008, that would implement 
     the Secretary's recommendations regarding the construction of 
     new memorials or monuments at ANC.

                       Subtitle F--Other Matters

     Reimbursement for National Guard support provided to federal 
         agencies (sec. 1061)
       The House bill contained a provision (sec. 1042) that would 
     amend chapter 1 of title 32, United States Code, to authorize 
     the Governor of a State to employ units or members of the 
     National Guard of that State to provide defense support of 
     civil authorities when requested by a federal department or 
     agency and authorized by the Secretary of Defense, and would 
     require the Department of Defense to be reimbursed for costs 
     incurred unless waived by the Secretary of Defense.
       The Senate amendment contained a provision (sec. 352) that 
     would amend section 377 of title 10, United States Code, to 
     require federal agencies that receive law enforcement support 
     or support to a national special security event provided by 
     National Guard personnel under section 502(f) of title 32, 
     United States Code, to reimburse the Department of Defense 
     for the costs of that support.
       The House recedes with a clarifying amendment that would 
     authorize the Secretary of Defense to waive the requirement 
     for reimbursement if the support is provided in the normal 
     course of military training or operations or results in a 
     benefit substantially equivalent to the benefit that would 
     otherwise be obtained from military operations or training.
     Congressional commission on the strategic posture of the 
         United States (sec. 1062)
       The House bill contained a provision (sec. 1046) that would 
     establish a 12 member congressional commission on the 
     strategic posture of the United States to examine and make 
     recommendations with respect to the long-term strategic 
     posture of the United States. The review and assessment to be 
     conducted by the commission would include a threat 
     assessment, a detailed review of nuclear weapons policy and 
     strategy of the United States, and recommendations as to the 
     most appropriate strategic posture and most effective nuclear 
     weapons strategy. The commission's report would be due to 
     Congress and the Executive Branch no later than December 1, 
     2008. The term of the commission would expire on June 1, 
     2009. In addition, the provision would repeal section 1051 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 clarify 
     that the vice chairman of the commission would be jointly 
     appointed by the ranking minority members of the Committees 
     on Armed Services of the House of Representatives and the 
     Senate. In addition, the amendment would clarify that the 
     commission should look at a non-nuclear alternatives to 
     nuclear weapons and systems in making recommendations with 
     respect to the most appropriate strategic posture and most 
     effective nuclear weapons policies of the United States.

[[Page 32967]]

       The conferees urge the commission to look at the strategic 
     posture of the United States in the broadest sense. Strategic 
     policy and posture is not synonymous with nuclear policy. 
     Conventional force structures, as well as nuclear force 
     structures, must be included in the overall review and 
     assessment of the strategic posture of the United States.
       In addition, the conferees believe that many of the nuclear 
     missions of the United States could be served by non-nuclear, 
     conventional systems. In their examination of the strategic 
     posture of the United States, the conferees expect the 
     commission to look not only at nuclear capabilities, but at 
     the full array of non-nuclear capabilities, including kinetic 
     and non-kinetic capabilities.
       The conferees have included a separate provision addressing 
     the repeal of section 1051 of the National Defense 
     Authorization Act for Fiscal Year 2006 elsewhere in this Act.
     Technical and clerical amendments (sec. 1063)
       The House bill contained a provision (sec. 1047) that would 
     make technical and clerical amendments to various provisions 
     of law.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would make 
     additional technical and clerical amendments.
     Repeal of certification requirement (sec. 1064)
       The House bill contained a provision (sec. 1048) that would 
     repeal the certification requirement regarding an airport in 
     Illinois contained in section 1063 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Maintenance of capability for space-based nuclear detection 
         (sec. 1065)
       The House bill contained a provision (sec. 1050) that would 
     require the Secretary of Defense to maintain the capability 
     for space-based nuclear detection at a level that meets or 
     exceeds the current level of capability.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Sense of Congress regarding detainees at Naval Station, 
         Guantanamo Bay, Cuba (sec. 1066)
       The House bill contained a provision (sec. 1053) that would 
     express the sense of Congress that: (1) The Nation extends 
     its gratitude to the military personnel at Naval Station, 
     Guantanamo Bay, Cuba; (2) the international community should 
     work with the Department of Defense to facilitate and 
     expedite the repatriation of detainees at Guantanamo; (3) 
     Guantanamo detainees, to the maximum extent possible, should 
     be charged and expeditiously prosecuted; and (4) operations 
     at Guantanamo should be conducted in a way that upholds the 
     U.S. national interest and the American people's core values.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     A report on transferring individuals detained at Naval 
         Station, Guantanamo Bay, Cuba (sec. 1067)
       The House bill contained a provision (sec. 1057) that would 
     require the Secretary of Defense to report to the 
     congressional defense committees on the Secretary's plans for 
     each detainee currently held by the Joint Task Force 
     Guantanamo at Guantanamo Bay, Cuba.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Repeal of provisions in section 1076 of Public Law 109-364 
         relating to use of Armed Forces in major public 
         emergencies (sec. 1068)
       The House bill contained a provision (sec. 1054) that would 
     repeal section 1076 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364) 
     and revive the provisions of sections 333 and 12304(c) of 
     title 10, United States Code, as they were in effect prior to 
     the effective date of that Act, and repeal section 2567 of 
     title 10.
       The Senate amendment contained a similar provision (sec. 
     1022).
       The Senate recedes.
     Standards required for entry to military installations in 
         United States (sec. 1069)
       The House bill contained a provision (sec. 1056) that would 
     prohibit any unescorted civilian from entering a military 
     installation or facility unless a background investigation 
     has been conducted on such individual.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to establish standards for access to 
     military installations, including screening standards 
     appropriate to the type of installation, security level, 
     category of individual seeking access, and level of access 
     granted.
       The conferees recognize that commanders of military 
     installations must balance security concerns with the need to 
     maintain rapid access to the installations for Department of 
     Defense personnel, employees, and other authorized visitors, 
     including commercial vendors. While commanders are in the 
     best position to assess and respond to local threat 
     conditions, the conferees believe that the Secretary should 
     establish standards to assist military commanders in taking 
     such actions.
       The conferees believe the Secretary should work toward 
     fielding Department-wide technologies that will allow base 
     commanders to check installation visitors against an updated 
     database containing relevant information provided by the 
     Federal Bureau of Investigation, the terrorist watch list, 
     and other pertinent law enforcement records. The conferees 
     understand that technology has been developed and fielded at 
     several military installations that will identify individuals 
     with outstanding warrants for their arrest, felony 
     convictions, and similar issues. Further, the conferees 
     understand that available commercial technology may be able 
     to perform instant background checks in fewer than 10 seconds 
     per individual, be deployed at multiple military entry 
     control points, and record entry information into an 
     electronic log. The conferees direct the Secretary to give 
     full consideration to the availability of such technologies 
     in developing standards under this provision.
       The conferees believe that base security is a government 
     responsibility and that, for that reason, identity checks 
     should be carried out at no cost to vendors or other visitors 
     to military installations.
     Revised nuclear posture review (sec. 1070)
       The Senate amendment contained a provision (sec. 1061) that 
     would require the Secretary of Defense to conduct a 
     comprehensive review of the nuclear posture of the United 
     States for the next 5 to 10 years. The Secretary shall 
     conduct the review in consultation with the Secretary of 
     Energy and the Secretary of State. The review would be 
     submitted concurrently with the quadrennial defense review 
     required to be submitted under section 118 of title 10, 
     United States Code.
       The House bill contained no similar provision.
       The House recedes.
     Termination of Commission on the Implementation of the New 
         Strategic Posture of the United States (sec. 1071)
       The Senate amendment contained a provision (sec. 1062) that 
     would repeal section 1051 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163), 
     (2006 NDAA), which established a Commission on the 
     Implementation of the New Strategic Posture of the United 
     States.
       The House bill contained a provision (sec. 1046) that would 
     establish a congressional Commission on the Strategic Posture 
     of the United States. Section 1046(h) would also repeal 
     section 1051 of the 2006 NDAA. Section 1062 in the Senate 
     amendment and section 1046(h) of the House bill are 
     identical.
       The conference agreement includes this provision.
     Security clearances; limitations (sec. 1072)
       The Senate amendment contained a provision (sec. 1064) that 
     would: (1) repeal section 986 of title 10, United States 
     Code, which establishes mandatory standards for the 
     disqualification of individuals from the issuance of security 
     clearances; (2) substitute a new government-wide provision 
     establishing standards for such disqualifications; and (3) 
     increase the flexibility available to executive branch 
     officials in administering these standards.
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide 
     agency heads the same flexibility with regard to individuals 
     who are determined to be mentally incompetent that the Senate 
     bill would provide with regard to individuals who have been 
     convicted of crimes or discharged from the Armed Forces under 
     dishonorable conditions. This change should address concerns 
     about the potential disqualification of disabled individuals 
     working for the Federal Government under the Javits Wagner 
     O'Day (JWOD) Act, section 48 of title 41, United States Code.
       The conferees understand that under current law and 
     Department of Defense practice, if an individual who posesses 
     a security clearance cannot meet the statutory criteria, the 
     security clearance is revoked pending a waiver decision. 
     Unless a position can be identified that does not require a 
     security clearance during the waiver process, the individual 
     cannot work and is separated.
       The conferees direct the Secretary of Defense and other 
     agency heads to implement the new provision in a manner that 
     does not result in the unnecessary loss of employment to 
     individuals during the waiver process. A current employee who 
     has received a clearance, and may even have undergone 
     subsequent reinvestigation and renewal, should not be 
     separated simply because he or she must now undergo a waiver 
     process. Such uninterrupted employment may be particularly 
     important in the case of disabled individuals working for the 
     Federal Government under the JWOD Act. The conferees agree 
     that the Department of Defense has a commendable track record 
     of employing the disabled and that this provision should not 
     be applied in a manner that would undermine that record.

[[Page 32968]]


     Improvements in the process for the issuance of security 
         clearances (sec. 1073)
       The Senate amendment contained a provision (sec. 1065) that 
     would require the Secretary of Defense and the Director of 
     National Intelligence to conduct a demonstration project 
     using new and innovative approaches to improve the processing 
     of requests for security clearances.
       The House bill contained no similar provision.
       The House recedes.
       The conferees are encouraged that the Secretary and the 
     Director have designated the United States Air Force to lead 
     a task force that will review initiatives to develop a 
     process to deliver high-assurance security clearance 
     determinations in a shorter period of time. The Air Force 
     expects to have a new system in place by December 31, 2008. 
     The conferees note that improving the clearance process is 
     critical to our national security.
     Protection of certain individuals (sec. 1074)
       The Senate amendment contained a provision (sec. 1075) that 
     would authorize the Secretary of Defense to provide physical 
     protection and personal security within the United States to 
     certain persons.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     application of the provision to former or retired officials 
     of the Department of Defense and foreign visitors to the 
     United States, require the Secretary to provide additional 
     information to the congressional defense committees, and make 
     additional clarifying changes.
     Modification of authorities on Commission to Assess the 
         Threat to the United States from Electromagnetic Pulse 
         Attack (sec. 1075)
       The Senate amendment contained a provision (sec. 1076) that 
     would extend the due date of the final report of the 
     Commission to Assess the Threat to the United States from 
     Electromagnetic Pulse Attack (EMP) to November 30, 2008. The 
     provision would also direct the Commission and the Secretary 
     of Homeland Security to ensure that the work of the 
     Commission with respect to EMP attacks on electricity 
     infrastructure is coordinated with the infrastructure 
     protection work of the Department of Homeland Security. The 
     provision would also provide that the amount of funds 
     provided to the Commission to prepare and submit the final 
     report shall not exceed $5.6 million.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that the $5.6 million is in addition to 
     funding previously provided to the Commission. This is the 
     second deadline extension granted to the Commission for 
     delivery of a final report. The conferees urge the Commission 
     to submit its final report by the November 30, 2008 deadline.
     Sense of Congress on Small Business Innovation Research 
         program (sec. 1076)
       The Senate amendment contained a provision (sec. 1088) that 
     would reauthorize the Small Business Innovation Research 
     program for an additional 2 years.
       The House bill contained no similar provision.
       The House recedes with an amendment that would eliminate 
     the reauthorization of the program, and include a sense of 
     Congress expressing views on the value of the program to the 
     Department of Defense and on the need to reauthorize the 
     program to ensure its seamless execution.
     Revision of proficiency flying definition (sec. 1077)
       The House bill contained a provision (sec. 1044) that would 
     modify the definition of proficiency flying within the 
     Department of Defense (DOD).
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees do not intend this language to prohibit the 
     Department from cancelling outdated guidance on flying 
     proficiency and its related elements for participating rated 
     personnel, and believe the Department should proceed with 
     cancelling DOD Directive 1340.4, dated July 17, 1972.
     Qualifications for public aircraft status of aircraft under 
         contract with the Armed Forces (sec. 1078)
       The Senate amendment contained a provision (sec. 1070) that 
     would provide the Secretary of Defense the flexibility to 
     determine whether an operational support mission can be 
     conducted as a civil operation in compliance with the Federal 
     Aviation Regulations. The Secretary of Defense would have the 
     authority to determine whether a chartered aircraft 
     performing operational support missions is performing a civil 
     or public aircraft operation.
       The House bill contained no similar provision.
       The House recedes with an amendment that would further 
     clarify the definition of ``public aircraft,'' such that the 
     term `other commercial air service' would be limited to an 
     aircraft operation that:
       (1) is within the United States territorial airspace;
       (2) the Administrator of the Federal Aviation 
     Administration determines is available for compensation or 
     hire to the public; and
       (3) must comply with all applicable civil aircraft rules 
     under title 14, Code of Federal Regulations.
     Communications with the Committees on Armed Services of the 
         Senate and the House of Representatives (sec. 1079)
       The Senate amendment contained a provision (sec. 1063) that 
     would require that offices within the intelligence community 
     respond to requests by the Committees on Armed Services of 
     the Senate and the House of Representatives for intelligence 
     assessments, reports, estimates, legal opinions, or other 
     information within 15 days, unless the President were to 
     certify that he was asserting privilege pursuant to the 
     Constitution of the United States. The provision would also 
     require that intelligence officials be able to provide 
     testimony before these committees without having to seek 
     approval or clearance of such testimony as a way of ensuring 
     that Congress receives the independent views of such 
     officials.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make several 
     changes:
       (1) The provision would exclude ``other information'' to 
     make it clear that the requests would be for existing 
     assessments, reports, estimates, or legal opinions;
       (2) The provision would require that the request be in 
     writing from the Chair or Ranking Member of the committee;
       (3) The time limit for providing the information would be 
     extended to 45 days;
       (4) Any decision of the President to assert privilege would 
     have to be conveyed to Congress in writing by the Counsel to 
     the President; and
       (5) The requirements regarding review of testimony would be 
     deleted.
     Retention of reimbursement for provision of reciprocal fire 
         protection services (sec. 1080)
       The Senate amendment contained a provision (sec. 1090) that 
     would permit Department of Defense entities that provide fire 
     protection services to local entities to retain the proceeds 
     of any reimbursement for such services.
       The House bill contained no similar provision.
       The House recedes.
     Pilot program on commercial fee-for-service air refueling 
         support for the Air Force (sec. 1081)
       The Senate amendment contained a provision (sec. 1094) that 
     would require the Secretary of the Air Force to conduct a 
     pilot program to assess the feasibility and advisability of 
     utilizing commercial fee-for-service air refueling tanker 
     aircraft for Air Force operations.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the pilot program, but would not mandate the scope or scale 
     of the program and would add an annual reporting requirement 
     by the Air Force, along with reviews by the Comptroller 
     General.
       The conferees support the timely modernization of the Air 
     Force aerial refueling tanker fleet. In furtherance of this, 
     the Secretary of the Air Force initiated, and Congress 
     approves of, a comprehensive strategy for replacing the 
     aerial refueling tanker aircraft fleet, which includes the 
     following elements:
       (1) replacement of the aging tanker aircraft fleet with 
     newer and improved capabilities under the KC-X program of 
     record which supports the tanker replacement strategy, 
     through the purchase of new commercial derivative aircraft;
       (2) sustainment and extension of the legacy tanker aircraft 
     fleet until replacement through depot-type modifications and 
     upgrades of KC-135R and KC-10 aircraft; and
       (3) augmentation of the aerial refueling capability through 
     aerial refueling fee-for-service.
       The conferees note that several studies have been conducted 
     that indicate a potential for cost savings and other benefits 
     of a fee-for-service air refueling program. Executing a pilot 
     program for fee-for-service air refueling should be given 
     full and fair consideration in order to test the costs, 
     benefits, and appropriateness of such actions. To ensure the 
     viability of such a program, it should be based on an 
     appropriate business model, utilizing sufficient aircraft and 
     flying hours to support a program that will meet the needs 
     and best interests of the Air Force to meet air refueling 
     requirements. The conferees direct that the pilot program be 
     enacted as soon as practicable, and be incorporated into the 
     operations of the Air Mobility Command.
     Advisory panel on Department of Defense capabilities for 
         support of civil authorities after certain incidents 
         (sec. 1082)
       The Senate amendment contained a provision (sec. 1066) that 
     would establish an advisory panel to assess and make 
     recommendations on Department of Defense capabilities to 
     support civil authorities in the event of a chemical, 
     biological, radiological, nuclear, or high-yield explosive 
     incident.
       The House bill contained no similar provision.
       The House recedes with an amendment that would add a 
     requirement for the advisory panel to assess and make 
     recommendations on whether there should be additional

[[Page 32969]]

     Weapons of Mass Destruction Civil Support Teams (WMD-CSTs) 
     and, if so, how many and where they should be located. It 
     would also require the advisory panel to assess and make 
     recommendations on what criteria and considerations are 
     appropriate for determining whether additional WMD-CSTs are 
     needed and, if so, where they should be located.
     Terrorism exception to immunity (sec. 1083)
       The Senate amendment contained a provision (sec. 1087) that 
     would amend the Foreign Sovereign Immunities Act (FSIA) to 
     allow victims of terrorism to seek redress in U.S. courts 
     against foreign states that commit or provide material 
     support to acts of terrorism, by clarifying subject matter 
     jurisdiction over these claims and establishing a private 
     cause of action under the exception for state sponsors of 
     terrorism to sovereign immunity.
       The provision would consolidate provisions relating to the 
     exception to sovereign immunity for state sponsors of 
     terrorism in a new section 1605A to the FSIA, and repeal the 
     previous exception set out in section 1605(a)(7). The 
     provision would permit claims to be brought for money 
     damages, including punitive damages, against a foreign state 
     designated as a state sponsor of terrorism, for acts of 
     torture, extrajudicial killing, aircraft sabotage, hostage 
     taking, or providing material support or resources for these 
     acts, committed by any official, employee, or agent of that 
     state acting within the scope of his or her office, 
     employment, or agency. The provision would also expand the 
     ability of claimants to seek recourse against the property of 
     that foreign state, both by permitting a lien to be placed on 
     the foreign state's property during litigation and, once a 
     judgment has been obtained, by permitting any property in 
     which the foreign state has a beneficial ownership to be 
     subject to execution of that judgment. The provision would 
     allow any case previously brought under the state sponsor of 
     terrorism exception to the FSIA under section 1605(a)(7), or 
     under section 101(c) of Public Law 104-208, and which is 
     still before a court, to be refiled as if the original claim 
     had been filed under the provisions of this section.
       The House bill contained no similar provision.
       The House recedes with an amendment that would establish a 
     private cause of action under the state sponsor of terrorism 
     exception to the FSIA. Courts would have jurisdiction to hear 
     a claim brought against a foreign state that was designated 
     as a state sponsor of terrorism at the time of the terrorist 
     act, or was so designated as a result of the act, and which 
     remains designated as a state sponsor of terrorism at the 
     time a claim is filed. Claims brought prior to the enactment 
     of this Act against a foreign state that at the time was 
     designated as a state sponsor of terrorism, or an action 
     related to such a claim, would still be heard under this 
     section. The conferees intend that the amendments made under 
     this section shall apply to any claim filed or refiled under 
     the new section 1605A of the FSIA, and any execution or 
     attachment in aid of execution of a judgment relating to such 
     a claim under section 1610(g) of the FSIA.
       The provision would also provide for courts to hear a claim 
     under this section if the terrorist act is related to Case 
     Number 1:00CV03110 (EGS) in the United States District Court 
     for the District of Columbia. The conferees intend that 
     nothing in this section would prejudice the claimants or 
     their representatives in that case.
       The provision would allow claimants to establish a lien of 
     lis pendens, upon the filing of a notice that an action is 
     pending, on a foreign state's real property or tangible 
     personal property that is subject to execution or attachment 
     in aid of execution under the FSIA. The conferees intend that 
     property used for purposes of maintaining a diplomatic or 
     consular mission or the residence of the Chief of Mission, 
     which is not subject to execution or attachment in aid of 
     execution of a judgment, should not be subject to a lien of 
     lis pendens under this provision.
       The provision would also give claimants who obtain a 
     judgment against a foreign state recourse to property of the 
     foreign state in execution or attachment in aid of execution 
     of the judgment. While the provision is written to subject 
     any property interest in which the foreign state enjoys a 
     beneficial ownership to attachment and execution, the 
     provision would not supersede the court's authority to 
     appropriately prevent impairment of interests in property 
     held by other persons who are not liable to the claimants in 
     connection with the terrorist act. The court would fully 
     retain its authority to take whatever steps it finds 
     warranted to preserve the value of an ongoing business 
     enterprise in which a third party may be a joint venture 
     partner, for example. The conferees encourage the courts to 
     protect the property interests of such innocent third parties 
     by using their inherent authority, on a case-by-case basis, 
     under the applicable procedures governing execution on 
     judgment and attachment in anticipation of judgment.
       The provision would further provide that a foreign state's 
     property would not be immune from execution upon a judgment 
     due to the property being regulated by the United States 
     Government under the Trading With the Enemy Act or the 
     International Emergency Economic Powers Act due to the 
     sovereign immunity of the United States.
       The provision would clarify that nothing in section 1503 of 
     the Emergency Supplemental Appropriations Act, 2003 (Public 
     Law 108-11) has ever authorized making any provision of the 
     Foreign Sovereign Immunities Act inapplicable, or the removal 
     of the jurisdiction of any court of the United States. The 
     conferees stress that this provision should not be construed 
     in any way as support for the use of United States 
     appropriated funds to satisfy a claim brought under this 
     section.

                   Legislative Provisions Not Adopted

     Hate crimes
       The Senate amendment contained a provision (sec. 1023) that 
     would address hate crimes.
       The House bill contained no similar provision.
       The Senate recedes.
     Comprehensive study and support for criminal investigations 
         and prosecutions by State and local law enforcement 
         officials
       The Senate amendment contained a provision (sec. 1024) that 
     would require a comprehensive study and support for certain 
     criminal investigations and prosecutions by State and local 
     law enforcement officials.
       The House bill contained no similar provision.
       The Senate recedes.
     Extension of period for transfer of funds to Foreign Currency 
         Fluctuations, Defense account
       The Senate amendment contained a provision (sec. 1007) that 
     would extend from 2 to 4 fiscal years the length of time 
     after the end of the period of availability of obligation in 
     which funds can be transferred back to the ``Foreign Currency 
     Fluctuations, Defense'' (FCFD) appropriation account to 
     offset losses caused by fluctuations in foreign currency 
     exchange rates.
       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. 1027) that 
     would allow the Department of Defense to guarantee higher 
     minimum levels of business for all air carriers participating 
     in the Civil Reserve Air Fleet (CRAF) program of up to 80 
     percent of the average annual expenditure of the Department 
     of Defense for airlift during the preceding 5 years.
       The House bill contained no similar provision.
       The Senate recedes.
       The voluntary agreements between the U.S. Government and 
     the commercial air carriers in the CRAF program provide the 
     Nation with a large reserve of airlift capacity to move 
     troops and cargo within a few hours of activation. The 
     conferees recognize the importance of the CRAF program to the 
     national military strategy since the overall airlift 
     capability of the Department of Defense depends on a 
     significant contribution by the CRAF program.
       Therefore, the conferees fully support the CRAF program. 
     The conferees also recognize that there may be problems for 
     CRAF participants when airlift demands shift from wartime to 
     peacetime levels. However, the conferees agree that, before 
     establishing any type of assured business model, a full 
     assessment of the CRAF program should be performed. The 
     conferees have adopted a provision in title III of this Act 
     directing such an assessment. The conferees expect that the 
     Department's assessment will provide the analysis necessary 
     to guide any changes to current relationships with the CRAF 
     participants.
     Comptroller General review of the Joint Improvised Explosive 
         Device Defeat Organization
       The House bill contained a provision (sec. 1032) that would 
     require the Comptroller General to conduct a review of the 
     Joint Improvised Explosive Device Defeat Organization 
     (JIEDDO)
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees direct the Comptroller General to provide the 
     congressional defense committees, not later than 180 days 
     after the date of the enactment of this Act, with an 
     assessment of the JIEDDO to include the following items: (1) 
     the tools and processes in place to enable the Organization 
     to determine the appropriateness and efficacy of its efforts 
     to achieve its mission, including strategy, plans, 
     technologies developed, and programs funded; (2) the process 
     used by the Organization to select appropriate and effective 
     technologies and other solutions to achieve its mission; (3) 
     the ability of the Organization to respond to rapidly 
     changing threats and to anticipate future threats; (4) the 
     performance of the Organization in leading, advocating, and 
     coordinating all of the activities of the Department of 
     Defense to defeat improvised explosive devices and an 
     assessment of the Organization's authority to do so; (5) the 
     efforts of the Organization to target enemy networks and how 
     the Organization is leveraging and coordinating such

[[Page 32970]]

     efforts with the efforts of other elements of the Department 
     and other elements of the United States Government; (6) the 
     feedback from the warfighter with respect to the efforts of 
     the Organization; (7) the oversight and direction over the 
     activities of the Organization by the Office of the Secretary 
     of Defense; and (8) other matters as appropriate.
       The conferees remain concerned about the effectiveness of 
     JIEDDO and its ability to effectively coordinate the 
     Department's and intelligence community's response to the 
     improvised explosive device and asymmetric threats faced by 
     the warfighter in Iraq and Afghanistan.
     Commercial aviation technologies
       The House bill contained a provision (sec. 1035) that would 
     require the Secretary of Defense to conduct a study to 
     examine the methods by which air carriers and aviation 
     technology companies research, develop, and deploy commercial 
     aviation technologies.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that the Department of Defense provides 
     substantial funding for independent research and development 
     conducted by major aerospace contractors. Contractors 
     leverage this investment to advance aviation technology that 
     is useful for both commercial and defense purposes. In 
     addition, the Department routinely leverages its science and 
     technology budget to take advantage of promising technologies 
     developed in the commercial sector. This effort is furthered 
     by the National Aeronautics Research and Development policy, 
     issued in December 2006, which provides improved coordination 
     for aeronautics research and development across the Federal 
     Government. The conferees applaud these efforts and encourage 
     the Department to continue to seek opportunities to improve 
     synergy in the development of military and commercial 
     aviation technologies.
     Review of Department of Defense procedures to classify excess 
         defense articles and defense services with military 
         technology components
       The House bill contained a provision (sec. 1036) that would 
     require the Secretary of Defense, with the concurrence of the 
     Secretary of State, to conduct a review of, and report on: 
     (1) the procedures by which the Department of Defense 
     classifies defense articles and defense services with 
     military technology components as excess to the needs of the 
     Department; and, (2) the extent to which any of the 
     classification procedures led to the transfer of defense 
     article or services with military technology components to 
     terrorists or unfriendly states or groups.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees urge the Department to take all measures 
     necessary to ensure adequate controls over surplus defense 
     materials.
     Additional Weapons of Mass Destruction Civil Support Teams
       The House bill contained a provision (sec. 1051) that would 
     authorize two additional Weapons of Mass Destruction Civil 
     Support Teams.
       The Senate amendment contained no similar provision.
       The House recedes.
     Study and report on use of power management software
       The House bill contained a provision (sec. 1058) that would 
     require a report on the use of power management software.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees recommend that the Secretary of Defense 
     undertake an analysis of the cost and environmental benefits 
     of adopting energy efficient information technologies and 
     computing practices, including, but not limited to, energy-
     efficient data centers, servers and workstations; power 
     management software for computers and monitors; and 
     telecommuting for appropriate personnel. The conferees 
     further recommend that the Secretary of Defense keep Congress 
     and the public aware of progress to achieve these potential 
     energy savings and environmental benefits and of 
     opportunities for industry and academia to support efforts in 
     this area.
     Establishment of National Foreign Language Coordination 
         Council
       The Senate amendment contained a provision (sec. 1069) 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.
       The conferees direct the President to report to the 
     conferees, no later than 90 days after the enactment of this 
     Act, on the extent to which the executive branch has 
     developed a strategy for developing foreign language 
     capability in the United States, and a plan for implementing 
     it. The report should also contain a description of the goals 
     and achievements of the National Security Language 
     Initiative, and indicate what additional steps, if any, the 
     President intends to take to address the need for greater 
     foreign language capability in the United States. The 
     conferees expect that the report will include a description 
     of any additional authorities that the executive branch would 
     require from Congress in order to implement future plans.
     Grant of federal charter to Korean War Veterans Association, 
         Incorporated
       The Senate amendment contained a provision (sec. 1078) that 
     would amend part B of subtitle II of title 36, United States 
     Code, to grant a federal charter to the Korean War Veterans 
     Association, Incorporated.
       The House bill contained no similar provision.
       The Senate recedes.
     Sense of Senate on General David Petraeus
       The Senate amendment contained a provision (sec. 1079) 
     expressing that it is the sense of the Senate to reaffirm its 
     support for all the men and women of the United States armed 
     forces, including General David H. Petraeus, Commanding 
     General, Multi-National Force--Iraq; to strongly condemn any 
     effort to attack the honor and integrity of General Petraeus 
     and all the members of the United States armed forces; and to 
     specifically repudiate the unwarranted personal attack on 
     General Petraeus by the liberal activist group Moveon.org.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that a similar provision was contained 
     in House Joint Resolution 52, making continuing 
     appropriations for fiscal year 2008, which was subsequently 
     passed by the Senate without amendment and signed into law by 
     the President as Public Law 110-92 on September 29, 2007.
     Sense of Congress on equipment for the National Guard to 
         defend the homeland
       The Senate amendment contained a provision (sec. 1081) that 
     would express the sense of Congress that the National Guard 
     should have sufficient equipment available to accomplish 
     their missions inside the United States and defend the 
     homeland.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees remain concerned that the overall readiness 
     of the National Guard to respond to domestic emergencies has 
     been undermined by equipment shortages resulting from 
     inadequate funding and extended commitments to operations in 
     Iraq and Afghanistan. Equipment shortages and poor existing 
     equipment readiness increases the risk for States that Guard 
     units will not have the necessary equipment on-hand and fully 
     operational to meet the mission requirements of homeland 
     defense, domestic support, crisis response, and consequence 
     management. The conferees are aware that the Army National 
     Guard has only 40 percent of its required equipment in the 
     United States; and, that the Chief, National Guard Bureau has 
     submitted to Congress a fiscal year 2008 unfunded equipment 
     list of $2.0 billion.
       The conferees recommend elsewhere in this report provisions 
     that would authorize appropriation of an additional $980.0 
     million for the procurement of high-priority equipment to 
     address National Guard and reserve component unfunded 
     shortfalls. These additional funds would procure items 
     particularly relevant and necessary to the National Guard's 
     domestic support missions, such as aircraft, wheeled and 
     tracked combat vehicles, tactical wheeled vehicles, 
     communications equipment, ammunition, and other weapons.
       The conferees also expect that the Secretary of Defense 
     will take the actions necessary, including determination of 
     requirements and prioritization of equipment repair, 
     procurement, and fielding, to improve National Guard 
     readiness for its domestic support missions and reduce risks 
     to public safety within the United States.
     Sense of the Senate on Air Force use of towbarless aircraft 
         ground equipment
       The Senate amendment contained a provision (sec. 1083) that 
     would express the sense of Senate encouraging the Air Force 
     to consider towbarless ground support equipment for towing 
     aircraft.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note the potential operational utility, cost 
     savings, and increased safety afforded by the utilization of 
     towbarless aircraft ground equipment, and encourage the Air 
     Force to consider their use.
     Designation of Charlie Norwood Department of Veterans Affairs 
         Medical Center
       The Senate amendment contained a provision (sec. 1084) that 
     would designate the Department of Veterans Affairs Medical 
     Center in Augusta, Georgia as the ``Charlie Norwood 
     Department of Veterans Affairs Medical Center''.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that separate legislation making this 
     designation was signed into law (Public Law 110-112) on 
     November 8, 2007.
     Commercialization pilot program
       The Senate amendment contained a provision (sec. 1085) that 
     would extend the Small

[[Page 32971]]

     Business Innovation Research (SBIR) program commercialization 
     pilot program that was originally established by section 252 
     of the National Defense Authorization Act for Fiscal Year 
     2006 (Public Law 109-163), that would authorize the Secretary 
     of Defense to establish insertion incentives for SBIR 
     technologies; and would authorize the Secretary of Defense to 
     establish goals for the insertion of SBIR technologies into 
     programs of record or fielded systems.
       The House bill contained no similar provision.
       The Senate recedes.
     National center for human performance
       The Senate amendment contained a provision (sec. 1091) that 
     would designate a scientific institute at the Texas Medical 
     Center as the National Center for Human Performance.
       The House bill contained no similar provision.
       The Senate recedes.
     Veteran small business
       The Senate amendment contained a division (Division D) that 
     would provide for the Small Business Administration to 
     provide assistance to military reservist and veteran small 
     business.
       The House bill contained no similar provision.
       The Senate recedes.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

     Extension of authority to waive annual limitation on total 
         compensation paid to federal civilian employees working 
         overseas under areas of United States Central Command 
         (sec. 1101)
       The Senate amendment contained a provision (sec. 1105) that 
     would authorize the head of an executive agency to waive 
     limitations on total compensation to an employee who performs 
     certain work while in an overseas location within the area of 
     responsibility of the United States Central Command. The 
     total compensation would be limited to $212,100 per calendar 
     year.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Continuation of life insurance coverage for federal employees 
         called to active duty (sec. 1102)
       The Senate amendment contained a provision (sec. 1103) that 
     would authorize federal civilian employees who are members of 
     a reserve component of the armed forces called or ordered to 
     active duty to continue coverage under Federal Employees 
     Group Life Insurance for a period not to exceed 24 months.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     an eligible employee who elects to continue this life 
     insurance coverage would be responsible for the premium 
     payments after the initial 12 months of coverage.
     Transportation of dependents, household effects, and personal 
         property to former home following death of federal 
         employee where death resulted from disease or injury 
         incurred in the Central Command area of responsibility 
         (sec. 1103)
       The House bill contained a provision (sec. 1109) that would 
     allow the dependents of a federal civilian employee who dies 
     while on deployment in a combat zone to be relocated to their 
     home of record at the government's expense, whether the 
     dependents are living overseas or in the continental United 
     States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would narrow the 
     scope to cover dependents of a federal civilian employee who 
     dies while performing duties within the area of 
     responsibility of the Commander of the United States Central 
     Command. The amendment would also clarify that the provision 
     would apply to an employee who was a party to a mandatory 
     mobility agreement that was in effect when the employee died.
     Special benefits for civilian employees assigned on 
         deployment temporary change of station (sec. 1104)
       The House bill contained a provision (sec. 1102) that would 
     authorize the head of an agency to provide quarters, rations, 
     and storage of a personal motor vehicle without charge to a 
     civilian employee of an executive agency of a military 
     department who is assigned on a temporary change of station 
     in support of a contingency operation.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify 
     that the time period during which a personal motor vehicle 
     may be stored cannot exceed the period of the employee's 
     temporary assignment.
     Death gratuity authorized for federal employees (sec. 1105)
       The House bill contained a provision (sec. 1105) that would 
     require the United States to pay a death gratuity of $100,000 
     to civilian employees of the Department of Defense who died 
     as a result of wounds, injuries, or illness while on duty in 
     a combat zone or from a terrorist incident.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the payment of the death gratuity in the amount of up to 
     $100,000, and would limit the condition of receipt of this 
     gratuity to duty in a contingency operation. In addition, the 
     amendment would require that the death gratuity would be 
     offset by any amount received from any other federally 
     provided death gratuity.
     Modifications to the National Security Personnel System (sec. 
         1106)
       The House bill contained a provision (sec. 1106) that would 
     modify the authority of the Secretary of Defense to establish 
     a National Security Personnel System (NSPS) pursuant to 
     section 9902 of title 5, United States Code.
       The Senate amendment contained several provisions (secs. 
     684, 1074, and 1104) that would make similar changes to NSPS.
       The Senate recedes with an amendment that would restore the 
     collective bargaining and appeal rights of employees of the 
     Department of Defense, while preserving the ability of the 
     Department to implement a pay-for-performance system. The 
     provision would prohibit the Secretary from adding more than 
     100,000 civilian employees to the system in any calendar year 
     and require periodic reviews by the Comptroller General 
     during the implementation period. The phased implementation 
     and regular reviews should ensure that Congress has an 
     opportunity to make any additional adjustments that may be 
     needed to ensure that NSPS is implemented in a manner that is 
     transparent, accountable, and fair to the civilian employees 
     of the Department of Defense.
     Requirement for full implementation of personnel 
         demonstration project (sec. 1107)
       The House bill contained a provision (sec. 1111) that would 
     require the Secretary of Defense to fully implement the 
     authorities provided under section 342(b) of the National 
     Defense Authorization Act for Fiscal Year 1995 (Public Law 
     103-337), as amended by section 1114 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 
     (Public Law 106-398) to carry out personnel management 
     demonstration projects at certain Department of Defense 
     laboratories.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     requirement for the Secretary to implement a process and 
     implementation plan to fully utilize the authorities provided 
     under the sections noted above in order to enhance the 
     performance of the missions of the laboratories.
       The conferees believe that it is essential that defense 
     laboratories have personnel systems that allow them to 
     attract, hire, and retain the top quality scientists and 
     engineers necessary to discharge their unique missions 
     efficiently and effectively.
       The conferees believe that the authorities established 
     under the sections noted above, if fully utilized, would 
     enable laboratories to experiment with and demonstrate novel 
     personnel management flexibilities which may enhance their 
     performance and capabilities. The conferees anticipate that 
     if these demonstrations are successful, the authorities may 
     then be adopted by other laboratories or organizations within 
     the Department of Defense, if appropriate to support their 
     missions.
     Authority for inclusion of certain Office of Defense Research 
         and Engineering positions in experimental personnel 
         program for scientific and technical personnel (sec. 
         1108)
       The Senate amendment contained a provision (sec. 1106) that 
     would authorize the inclusion of 20 technical positions in 
     the Office of the Director of Defense Research and 
     Engineering (DDR&E) in the experimental personnel program for 
     scientific and technical personnel established by section 
     1101 of the Strom Thurmond National Defense Authorization Act 
     for Fiscal Year 1999 (Public Law 105-261).
       The House bill contained no similar provision.
       The House recedes with an amendment that would reduce the 
     total number of authorized positions to 10.
       The conferees note that the DDR&E's technical staff plays 
     an important role in the oversight and coordination of the 
     Department of Defense's science and technology program. This 
     involves initiatives in rapidly developing scientific areas 
     such as hypersonics, societal and behavioral modeling, and 
     nanotechnology. The conferees believe that the utilization of 
     the personnel authority provided by the provision can enhance 
     the ability of the DDR&E to recruit and retain a staff with 
     the diverse technical competencies necessary to oversee these 
     initiatives.
     Pilot program for the temporary assignment of information 
         technology personnel to private sector organizations 
         (sec. 1109)
       The House bill contained a provision (sec. 1112) that would 
     extend the Information Technology Exchange Program (ITEP) 
     established in chapter 37 of the E-Government Act of 2002 
     (Public Law 107-347). ITEP allows employees from federal and 
     private sector information technology (IT) organizations to 
     participate in temporary assignments to another organization. 
     The authorization for the program ends on December 17, 2007. 
     This provision would extend the program only in

[[Page 32972]]

     relation to the Department of Defense for an additional 3 
     years.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would create a 3-
     year pilot program for the temporary assignment of Department 
     of Defense IT personnel in private sector organizations. The 
     amendment would also require the Secretary of Defense to 
     report to the Committees on Armed Services of the Senate and 
     the House of Representatives on the potential benefits of a 
     similar exchange program in which IT personnel from the 
     private sector are assigned to the Department of Defense, as 
     well as any recommendations for legislation that may be 
     necessary to create such a program.
       The conferees acknowledge that legislation is pending 
     before congressional committees that would extend authority 
     for the E-Government Act of 2002 beyond its current 
     expiration date.
     Compensation for federal wage system employees for certain 
         travel hours (sec. 1110)
       The House bill contained a provision (sec. 1101) that would 
     amend section 5544(a) of title 5, United States Code, to 
     authorize compensation of federal wage system employees for 
     hours spent traveling while returning from an event that 
     cannot be scheduled or controlled administratively.
       The Senate amendment contained a similar provision (sec. 
     1101).
       The Senate recedes with a technical amendment.
     Travel compensation for wage grade personnel (sec. 1111)
       The House bill contained a provision (sec. 1104) that would 
     amend section 5550b(a) of title 5, United States Code, to 
     allow wage grade employees to receive compensatory time off 
     for each hour spent on official travel, provided the time is 
     not otherwise compensable.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Accumulation of annual leave by senior level employees (sec. 
         1112)
       The House bill contained a provision (sec. 1103) that would 
     authorize employees classified above the GS-15 level and 
     Intelligence Senior Level positions in the Department of 
     Defense to accrue annual leave accrual in the same manner 
     currently authorized for certain other senior government 
     officials, including members of the Senior Executive Service 
     and the Defense Intelligence Senior Executive Service.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Uniform allowances for civilian employees (sec. 1113)
       The Senate amendment contained a provision (sec. 1107) that 
     would repeal section 1593 of title 10, United States Code, in 
     order to remove the $400 limitation on uniform allowances for 
     civilian employees.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to prescribe by regulation an amount 
     higher than $400.
     Flexibility in setting pay for employees who move from a 
         Department of Defense or Coast Guard nonappropriated fund 
         instrumentality position to a position in the general 
         schedule pay system (sec. 1114)
       The House bill contained a provision (sec. 1108) that would 
     authorize flexibility in setting pay for an employee of a 
     Department of Defense (DOD) or U.S. Coast Guard 
     nonappropriated fund instrumentality who voluntarily 
     transfers to a DOD or Coast Guard civil service appropriated 
     fund position without a break in service of more than 3 days.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Retirement service credit for service as cadet or midshipman 
         at a military service academy (sec. 1115)
       The Senate amendment contained a provision (sec. 1102) that 
     would amend sections 8331(13) and 8401(31) of title 5, United 
     States Code, to clarify an existing practice of awarding 
     retirement service credit for time in service as a cadet or 
     midshipman at a military service academy.
       The House bill contained no similar provision.
       The House recedes.
     Authorization for increased compensation for faculty and 
         staff of the Uniformed Services University of the Health 
         Sciences (sec. 1116)
       The Senate amendment contained a provision (sec. 1108) that 
     would provide the Secretary of Defense greater flexibility in 
     setting salary levels for faculty and staff at the Uniformed 
     Services University of the Health Sciences. In no event would 
     the total amount of compensation exceed the amount specified 
     in section 102 of title 3, United States Code.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Report on establishment of a scholarship program for civilian 
         mental health professionals (sec. 1117)
       The Senate amendment contained a provision (sec. 711) that 
     would require the Secretary of Defense, in consultation with 
     the Assistant Secretary of Defense for Health Affairs and 
     each of the surgeons general of the armed forces, to submit 
     to Congress a report on the feasibility and advisability of 
     establishing a scholarship program for civilian mental health 
     professionals. This report would be due not later than 180 
     days after the date of enactment of this Act.
       The House bill contained no similar provision.
       The House recedes.

                   Legislative Provisions Not Adopted

     Annuity commencing dates
       The House bill contained a provision (sec. 1107) that would 
     allow federal retirement annuities to commence either on the 
     day after retirement or the day after age and service 
     requirements are met.
       The Senate amendment contained no similar provision.
       The House recedes.
     Physicians and health care professionals comparability 
         allowances
       The Senate amendment contained a provision (sec. 937) that 
     would increase the amount of allowance the Secretary of 
     Defense is authorized to give to current or new Department of 
     Defense physicians or health care professionals under service 
     agreements. The provision would also require the Secretary of 
     Defense to report to the appropriate committees of Congress 
     annually on the operation of this section with regards to 
     recruiting and retention problems and other issues.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees direct the Secretary of Defense, in 
     consultation with the Director, Office of Personnel 
     Management, to report to the Committees on Armed Services of 
     the Senate and the House of Representatives by February 1, 
     2008, on the utilization of all bonus authorities for 
     purposes of recruitment and retention of Department of 
     Defense civilian health care professionals from fiscal year 
     2002 through fiscal year 2007.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                  Subtitle A--Assistance and Training

     Military-to-military contacts and comparable activities (sec. 
         1201)
       The House bill contained a provision (sec. 1201) that would 
     allow personnel exchange programs with foreign governments to 
     be conducted on a non-reciprocal basis if the Secretary of 
     Defense determines that it would be in the interests of the 
     United States to do so.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority for support of military operations to combat 
         terrorism (sec. 1202)
       The House bill contained a provision (sec. 1202) that would 
     extend the authority provided in section 1208 of the Ronald 
     W. Reagan National Defense Authorization Act for Fiscal Year 
     2005 (Public Law 108-375), and amend the annual reporting 
     requirements contained in subsection (f) of section 1208.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Medical care and temporary duty travel expenses for liaison 
         officers of certain foreign nations (sec. 1203)
       The House bill contained a provision (sec. 1203) that would 
     authorize the Secretary of Defense to pay medical and 
     temporary duty travel expenses incurred by a liaison officer 
     from a developing country who is temporarily assigned to a 
     headquarters of a combatant command, component command, or 
     subordinate operational command in connection with the 
     planning for, or conduct of, a military operation.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Extension and expansion of Department of Defense authority to 
         participate in multinational military centers of 
         excellence (sec. 1204)
       The House bill contained a provision (sec. 1204) that would 
     extend the authority provided under section 1205 of the John 
     Warner National Defense Authorization Act for Fiscal Year 
     2007 (Public Law 109-364) for the Department of Defense to 
     participate in multinational military centers of excellence. 
     The provision would expand the definition of multinational 
     military centers of excellence in which Department personnel 
     may participate beyond those entities accredited or approved 
     by the North Atlantic Treaty Organization (NATO), to include 
     centers accredited or approved by the Secretary of Defense. 
     The provision would also raise the limitation on expenditures 
     for the U.S. share of the operating expenses of multinational 
     military centers of excellence under this section from $3.0 
     million to $5.0 million.
       The Senate amendment contained a provision (sec. 1214) that 
     would extend, but not expand, the authority for Department of 
     Defense participation in multinational military centers of 
     excellence.

[[Page 32973]]

       The Senate recedes with an amendment that would maintain 
     the current definition of a multinational military center of 
     excellence as an entity accredited and approved by NATO. The 
     conferees note the Department's stated interest in 
     participating in multinational military centers of excellence 
     beyond the NATO context. To aid consideration of this 
     proposal, the conferees urge the Department to provide 
     additional information on how expanded authority under this 
     section would be implemented, including how it would define a 
     ``military center of excellence'' outside the NATO context; 
     where such centers are or would be located; the purposes of 
     such centers; and the costs associated with U.S. 
     participation in such centers.
     Reauthorization of Commanders' Emergency Response Program 
         (sec. 1205)
       The House bill contained a provision (sec. 1205) that would 
     extend the authority provided in section 1202 of the National 
     Defense Authorization Act for Fiscal Year 2006 (Public Law 
     109-163) for the Commanders' Emergency Response Program 
     (CERP) through fiscal years 2008 and 2009. The CERP is 
     intended to provide commanders in Iraq and Afghanistan funds 
     for use in small humanitarian and reconstruction projects in 
     their area of responsibility that provide immediate 
     assistance to the local population.
       The Senate amendment contained a provision (sec. 1203) that 
     would authorize the CERP through fiscal year 2008 and 
     increase the authorized level for CERP funding up to 
     $977,441,000.
       The Senate recedes with an amendment that would authorize 
     up to $977,441,000 to be used for CERP during each of fiscal 
     years 2008 and 2009.
       The conferees note that the Under Secretary of Defense 
     (Comptroller) issued revised guidance for the CERP on May 9, 
     2007. The conferees are concerned by the failure of the 
     Department of Defense to comply with the requirement of 
     section 1202 that the Secretary of Defense submit to the 
     congressional defense committees any modification to the 
     guidance regarding the allocation of CERP funds not later 
     than 15 days after the guidance is issued. The conferees 
     strongly urge the Department to comply with this requirement 
     of section 1202 in the future.
       The conferees also highlight that the revised May 2007 CERP 
     guidance expands the listed uses of CERP funds, to include 
     making payments, sometimes called ``martyr payments,'' to the 
     family members of Iraqi or Afghan ``defense or police 
     personnel who were killed as a result of U.S., coalition or 
     supporting military operations'' in Iraq or Afghanistan. The 
     conferees question the Department's characterization of 
     martyr payments as a subset of condolence payments--payments 
     made to civilians for death or physical injury resulting from 
     U.S., coalition, or supporting military operations. Further, 
     the conferees have concerns over whether martyr payments are 
     an appropriate expansion of the uses of CERP funds on both 
     policy and legal grounds.
       The conferees direct the Department to review its decision 
     to expand the use of CERP to include martyr payments and 
     submit a report on the results of that review to the 
     congressional defense committees not later than 60 days after 
     enactment of this Act. The report should include: a review of 
     the relevant policy considerations, including whether such 
     payments should be the responsibility of the Government of 
     Iraq or Afghanistan, respectively, rather than U.S. 
     commanders; the legal considerations associated with making 
     martyr payments, including whether such payments are 
     consistent with the prohibition in the CERP guidance on using 
     CERP funds to provide services or funds to national security 
     forces in Iraq and Afghanistan; and whether other funding 
     accounts, such as the Iraq Security Forces Fund or the 
     Afghanistan Security Forces Fund, would be a more appropriate 
     source of funds for making martyr payments. The report should 
     also include information on the amount of CERP funds used for 
     martyr payments in each of fiscal years 2006, 2007, and 2008 
     up to the date of the report. The conferees direct the 
     Department to specify in the quarterly reports required under 
     section 1202 the amount of CERP funds used for martyr 
     payments separate from the amount specified for condolence 
     payments.
     Authority to build the capacity of the Pakistan Frontier 
         Corps (sec. 1206)
       The House bill contained a provision (sec. 1206) that would 
     expand the authority provided under section 1206 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163) for training and equipping foreign 
     military forces to allow the Secretary of Defense, with the 
     concurrence of the Secretary of State, to build the capacity 
     of Pakistan security forces, other than its military forces, 
     to conduct counterterrorist operations.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the Secretary of Defense, with the concurrence of the 
     Secretary of State, to use up to $75.0 million of funds 
     available for operation and maintenance during fiscal year 
     2008 to enhance the ability of the Pakistan Frontier Corps to 
     conduct counterterrorist operations along the border between 
     Pakistan and Afghanistan. Authorized assistance may include 
     equipment, supplies, and training. The amendment would 
     require the Secretary of Defense to notify the congressional 
     defense committees and the Committee on Foreign Affairs of 
     the House of Representatives and the Committee on Foreign 
     Relations of the Senate not less than 15 days prior to 
     providing assistance under this section.
     Authority to equip and train foreign personnel to assist in 
         accounting for missing United States Government personnel 
         (sec. 1207)
       The House bill contained a provision (sec. 1207) that would 
     authorize the Secretary of Defense to provide assistance to 
     foreign nations to aid/help in recovery and accounting 
     activities for missing U.S. Government personnel. The 
     Secretary of Defense would be required to submit an annual 
     report on the assistance provided under this authority.
       The Senate amendment contained a similar provision (sec. 
     1201).
       The House recedes with a clarifying amendment.
     Authority to provide automatic identification system data on 
         maritime shipping to foreign countries and international 
         organizations (sec. 1208)
       The House bill contained a provision (sec. 1208) that would 
     permit the Secretary of Defense to authorize secretaries of 
     the military departments and geographic combatant commanders 
     to provide foreign nations and international organizations 
     with information on the location of merchant vessels.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report on foreign-assistance related programs carried out by 
         the Department of Defense (sec. 1209)
       The House bill contained a provision (sec. 1209) that would 
     require the Secretary of Defense to submit a report not later 
     than 180 days after enactment of this Act describing, on a 
     country-by-country basis, all foreign-assistance related 
     programs, projects, and activities of the Department of 
     Defense during the prior fiscal year.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to submit a report specifying, on a 
     country-by-country basis, each program carried out by the 
     Department of Defense during the prior fiscal year under the 
     foreign-assistance related authorities specified in the 
     provision. The report would be unclassified, but may include 
     a classified annex. The report would be submitted to the 
     congressional defense committees, and the Committee on 
     Foreign Affairs of the House of Representatives and the 
     Committee on Foreign Relations of the Senate.
     Extension and enhancement of authority for security and 
         stabilization assistance (sec. 1210)
       The Senate amendment contained a provision (sec. 1202) that 
     would extend until September 30, 2008, the authority provided 
     under section 1207 of the National Defense Authorization Act 
     of Fiscal Year 2006 (Public Law 109-163) for the Secretary of 
     Defense to provide the Secretary of State services, defense 
     articles, or funding to support Department of State programs 
     for reconstruction, security, or stabilization assistance. 
     The provision would also increase the total amount of all 
     services, defense articles, and funding that may be provided 
     under section 1207 from $100.0 million to $200.0 million. The 
     provision would require the Department of State (DOS) to 
     coordinate with the Department of Defense (DOD) in the 
     formulation and implementation of any program of 
     reconstruction, security, or stabilization assistance that 
     involves the provision of services, defense articles, or 
     funds by the DOD to the DOS under this section.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     increase under the Senate provision in the aggregate value of 
     all services, defense articles, and funding that may be 
     provided under this section, thereby keeping the funding 
     limitation under section 1207 at $100.0 million during fiscal 
     year 2008.
     Government Accountability Office report on Global Peace 
         Operations Initiative (sec. 1211)
       The Senate amendment contained a provision (sec. 1204) that 
     would direct the Government Accountability Office to submit a 
     report not later than March 1, 2008, to the congressional 
     defense committees, the Committee on Foreign Relations of the 
     Senate, and the Committee on Foreign Affairs of the House of 
     Representatives, assessing the President's Global Peace 
     Operations Initiative.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     stipulate that the report be unclassified to the maximum 
     extent possible, and would require it to be submitted by June 
     1, 2008.
     Repeal of limitations on military assistance under the 
         American Servicemembers' Protection Act of 2002 (sec. 
         1212)
       The Senate amendment contained a provision (sec. 1205) that 
     would repeal some of the remaining limitations on providing 
     military

[[Page 32974]]

     assistance under the American Servicemembers' Protection Act 
     of 2002 (22 U.S.C. 7426).
       The House bill contained no similar provision.
       The House recedes.

          Subtitle B--Matters Relating to Iraq and Afghanistan

     Modification of authorities relating to the office of the 
         Special Inspector General for Iraq Reconstruction (sec. 
         1221)
       The House bill contained a provision (sec. 1221) that would 
     extend the authority for the office of the Special Inspector 
     General for Iraq Reconstruction and clarify certain 
     authorities of the office.
       The Senate amendment contained a similar provision (sec. 
     1540).
       The House recedes with an amendment that would extend the 
     authority for the office and combine the authorities provided 
     in the House and Senate provisions.
     Limitation on availability of funds for certain purposes 
         relating to Iraq (sec. 1222)
       The House bill contained a provision (sec. 1222) that would 
     prohibit the obligation of funds authorized in this or any 
     other act to establish permanent bases in Iraq or exercise 
     United States control over Iraq's oil resources.
       The Senate amendment contained a provision (sec. 1531) that 
     would continue such a prohibition for fiscal year 2008 only.
       The House recedes.
     Report on United States policy and military operations in 
         Iraq (sec. 1223)
       The House bill contained a provision (sec. 1224) that would 
     require a report on the implementation of the Multi-National 
     Forces-Iraq/United States Embassy Baghdad Joint Campaign Plan 
     and efforts to achieve political reform in Iraq.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment to the United States 
     Policy in Iraq Act, section 1227(c) of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163), 
     that would require a detailed description of the Joint 
     Campaign Plan, including those conditions which could prompt 
     changes to levels of United States armed forces or missions, 
     and the status of planning for those changes.
     Report on a comprehensive set of performance indicators and 
         measures for progress toward military and political 
         stability in Iraq (sec. 1224)
       The House bill contained a provision (sec. 1225) that would 
     require a report on training of the Iraqi Security Forces.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment to section 9010 of the 
     Department of Defense Appropriations Act for Fiscal Year 2007 
     (Public Law 109-289) that would require additional 
     information on the Iraqi Security Forces in the report 
     required by that Act.
     Report on support from Iran for attacks against coalition 
         forces in Iraq (sec. 1225)
       The Senate amendment contained a provision (sec. 1535) that 
     would require, not later than 30 days after the date of 
     enactment of this Act and every 60 days thereafter, that the 
     Commander, Multi-National Forces, Iraq, and the U.S. 
     Ambassador to Iraq, in coordination with the Director of 
     National Intelligence, submit a report to Congress on: any 
     support provided to anti-coalition forces in Iraq by Iran or 
     its agents; Iran's strategy in Iraq; and any strategy or 
     efforts by the United States to counter the activities of 
     Iran in Iraq. The provision also contained a rule of 
     construction that nothing in this section would authorize or 
     speak to the use of armed forces against Iran.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     the report be submitted by the Secretary of Defense, in 
     coordination with the Director of National Intelligence, not 
     later than 60 days after the date of enactment of this Act 
     and every 180 days thereafter. The amendment would also 
     provide that the reporting requirement would terminate when 
     the Secretary of Defense, in coordination with the Director 
     of National Intelligence, certifies to the congressional 
     defense committees that Iran has ceased to provide military 
     support to anti-coalition forces in Iraq.
       The conferees are deeply concerned by reports of Iranian 
     activity in Iraq, including that the Iranian Qods Force is 
     providing training and support to anti-coalition forces in 
     Iraq. The conferees call on Iran to cease any training, 
     equipping, funding, advising, or any other support that it or 
     its agents are providing to Iraqi militia and insurgents and 
     that is counter to Iraqi and coalition interests. The 
     conferees strongly support U.S. diplomatic efforts with Iran 
     to stop any actions by Iran or its agents against U.S. or 
     other coalition forces in Iraq.
     Sense of Congress on the consequences of a failed state in 
         Iraq (sec. 1226)
       The Senate amendment contained a provision (sec. 1536) that 
     would express the sense of the Senate that the Senate should 
     commit itself to a strategy that will not leave a failed 
     state in Iraq, and the Senate should not pass legislation 
     that will undermine our military's ability to prevent a 
     failed state in Iraq.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express the 
     sense of Congress that a failed state in Iraq will have a 
     negative impact on the Middle East and American interests in 
     the region, and that the United States should pursue 
     strategies to prevent a failed state in Iraq or contain the 
     negative effects of a failed state in Iraq.
     Sense of Congress on federalism in Iraq (sec. 1227)
       The Senate amendment contained a provision (sec. 1537) that 
     would express the sense of Congress that the United States 
     should actively support a political settlement in Iraq based 
     on the final provisions of the Constitution of Iraq that 
     create a federal system of government and allow for the 
     creation of federal regions, consistent with the wishes of 
     the Iraqi people and their elected leaders. This provision 
     would also express the sense of Congress on other steps the 
     United States should take in that regard.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express the 
     sense of Congress that policies supported by the United 
     States in the pursuit of a political settlement in Iraq 
     should be consistent with the wishes of the Iraqi people and 
     should not violate the sovereignty of the nation of Iraq.
     Tracking and monitoring of defense articles provided to the 
         Government of Iraq and other individuals and groups in 
         Iraq (sec. 1228)
       The Senate amendment contained a provision (sec. 1541) that 
     would require the President to implement a policy to control 
     the export and transfer of defense articles into Iraq, 
     including implementation of a registration and monitoring 
     system.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make 
     clarifying changes, and would also require the provision to 
     take effect 180 days after the enactment of this Act, with 
     one 90-day waiver option, and does not direct enhanced end-
     use monitoring.
       The conferees fully expect the President to delegate this 
     authority.
       The conferees urge the relevant Secretaries to consider 
     whether enhanced end-use monitoring may be desirable in the 
     cases of some of the lethal defense articles provided to 
     Iraq.
       The conferees understand, based on information provided by 
     the Departments of State and Defense, that this provision 
     will not have the effect of slowing the delivery of defense 
     articles and services to Iraq under the Foreign Military 
     Sales program. The conferees urge the Department of Defense 
     to inform the conferees immediately in the event that 
     implementation of this provision would have such an 
     unintended and undesired effect.
     Special Inspector General for Afghanistan Reconstruction 
         (sec. 1229)
       The House bill contained a provision (sec. 1231) that would 
     establish an office of the Special Inspector General for 
     Afghanistan Reconstruction (SIGAR) to conduct independent and 
     objective audits and investigations of programs and 
     operations funded by the Department of Defense for 
     Afghanistan reconstruction. The President would appoint the 
     SIGAR. The provision would require the SIGAR to provide 
     quarterly and semiannual reports to the congressional defense 
     committees. The Office of the SIGAR would terminate 10 months 
     after 80 percent of the Department of Defense funds for 
     Afghanistan reconstruction have been expended.
       The Senate amendment contained a provision (sec. 1542) that 
     would establish an office of the SIGAR to conduct audits and 
     investigations of United States Government programs and 
     operations for Afghanistan reconstruction.
       The Senate recedes with an amendment that would establish 
     an office of the SIGAR to conduct independent and objective 
     audits and investigations of United States Government 
     programs and operations for Afghanistan reconstruction. The 
     President would appoint the SIGAR and may appoint the Special 
     Inspector General for Iraq Reconstruction (SIGIR) to serve as 
     the SIGAR. The SIGAR would report on a quarterly basis to the 
     congressional defense committees and the Committee on Foreign 
     Affairs of the House of Representatives and the Committee on 
     Foreign Relations of the Senate. The provision would provide 
     $20.0 million from the Afghanistan Security Forces Fund to 
     carry out this section during fiscal year 2008. The Office of 
     the SIGAR would terminate 180 days after the amount of 
     unexpended funds appropriated or otherwise made available for 
     Afghanistan is less than $250.0 million.
     Report on progress toward security and stability in 
         Afghanistan (sec. 1230)
       The House bill contained a provision (sec. 1232) that would 
     require the Secretary of Defense, in coordination with the 
     relevant U.S. Government agencies and departments, to report 
     not later than 90 days after enactment of this Act on 
     progress toward security and stability in Afghanistan. The 
     report would include a description of the strategic

[[Page 32975]]

     direction of U.S. activities related to security and 
     stability in Afghanistan. The report would also include a 
     comprehensive set of performance indicators and measures of 
     progress toward long-term security and stability in 
     Afghanistan. The Secretary of Defense would be required to 
     provide updates of the report every 90 days.
       The Senate amendment contained a provision (sec. 1231) that 
     would require the President to report to the congressional 
     defense committees semiannually through fiscal year 2009 on 
     U.S. policy and military operations in Afghanistan. The 
     provision would require each report to contain a 
     comprehensive, interagency-coordinated strategy in support of 
     U.S. policy and military operations in Afghanistan, and 
     detailed information on key elements of that strategy.
       The Senate recedes with an amendment that would require the 
     President, acting through the Secretary of Defense, to submit 
     a report not later than 90 days after enactment of this Act, 
     and every 180 days thereafter through the end of fiscal year 
     2010, on progress toward security and stability in 
     Afghanistan. The provision would require the Secretary of 
     Defense to coordinate with the relevant U.S. Government 
     agencies and departments in preparing the report. The report 
     would include a description of a comprehensive U.S. strategy 
     for security and stability in Afghanistan, and detailed 
     information on key elements of that strategy, including U.S. 
     efforts to: strengthen the North Atlantic Treaty Organization 
     International Security Assistance Forces; build the capacity 
     of the Afghanistan National Security Forces; promote the 
     reconstruction and development of Afghanistan, including 
     through U.S.-led Provincial Reconstruction Teams; define the 
     overall strategy and activities of the Department of Defense 
     counternarcotics program; aid the Government of Afghanistan 
     in fighting public corruption and promoting the rule of law; 
     and increase cooperation with Afghanistan's neighboring 
     countries. The provision would also require that the report 
     include a comprehensive set of performance indicators and 
     measures of progress toward long-term security and stability 
     in Afghanistan. The report would be provided to the 
     congressional defense committees, and the Committee on 
     Foreign Affairs of the House of Representatives and the 
     Committee on Foreign Relations of the Senate.
     United States plan for sustaining the Afghanistan National 
         Security Forces (sec. 1231)
       The House bill contained a provision (sec. 1234) that would 
     require the Secretary of Defense, in coordination with the 
     Secretary of State and the Attorney General, to submit a 
     report detailing a long-term plan for sustaining the 
     Afghanistan National Security Forces (ANSF). The provision 
     would require the Secretary of Defense to update the plan 
     every 90 days. The initial report and the updates would be 
     submitted to the congressional defense committees, and the 
     Committee on Foreign Affairs and the Committee on the 
     Judiciary of the House of Representatives and the Committee 
     on Foreign Relations and the Committee on the Judiciary of 
     the Senate.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense, in coordination with the Secretary of 
     State, to submit not later than 90 days after enactment of 
     this Act and annually thereafter through fiscal year 2010, a 
     report detailing a long-term plan for sustaining the ANSF, 
     with the objective of ensuring that the ANSF will be able to 
     conduct operations independently and effectively and maintain 
     long-term security and stability in Afghanistan. The report 
     would include: a comprehensive strategy and budget, with 
     defined objectives; mechanisms for tracking funding, 
     equipment, training, and services provided to the ANSF; and 
     any actions necessary to assist the Government of Afghanistan 
     to achieve a number of specified goals, and the results of 
     such actions. The report would be submitted to the 
     congressional defense committees, and the Committee on 
     Foreign Affairs of the House of Representatives and the 
     Committee on Foreign Relations of the Senate.
     United States strategy for enhancing security and stability 
         in the border region between Afghanistan and Pakistan 
         (sec. 1232)
       The Senate amendment contained a provision (sec. 1232) that 
     would require the President to report to the congressional 
     defense committees on the U.S. strategy for working with 
     Pakistan to prevent the movement of violent extremist forces 
     across the Pakistan border into Afghanistan and to eliminate 
     safe havens for extremist forces on the territory of 
     Pakistan. The provision would also restrict reimbursements to 
     Pakistan, using Coalition Support Funds, for logistical, 
     military, or other support provided by Pakistan to U.S. 
     military operations unless the President determined that 
     Pakistan was making substantial and sustained efforts to 
     eliminate any safe havens for extremists on its territory.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense, in consultation with the Secretary of 
     State, to submit a report not later than March 31, 2008, on 
     enhancing security and stability in the region along the 
     border of Afghanistan and Pakistan. The report would include 
     a detailed description of the efforts by Pakistan to 
     eliminate safe havens for the Taliban, Al Qaeda, or other 
     violent extremist forces on its territory and prevent the 
     movement of those forces across Pakistan's border into 
     Afghanistan, and an assessment by the Secretary of Defense 
     regarding whether Pakistan is making substantial and 
     sustained efforts to achieve these objectives.
       The provision would also require the Secretary of Defense 
     to provide a notification to the congressional defense 
     committees not less than 15 days before making any 
     reimbursement to Pakistan using Coalition Support Funds for 
     logistical, military, or other support provided by Pakistan 
     to U.S. military operations. The notification would include 
     an itemized description of the logistical, military, or other 
     support to be reimbursed. The notification would be required 
     with respect to reimbursements for support provided by 
     Pakistan during the period beginning on February 1, 2008 and 
     ending on September 30, 2009. The notification would be 
     submitted in unclassified form, but may include a classified 
     annex if necessary.
       The conferees are concerned by the lack of transparency 
     regarding the kinds of logistical, military, or other support 
     provided by Pakistan to U.S. military operations and being 
     reimbursed using Coalition Support Funds. The conferees 
     expect that the notifications provided under this section 
     would itemize in detail the logistical support that the 
     Department of Defense has approved for reimbursement using 
     Coalition Support Funds. The conferees note that for the 
     purposes of this section, the term ``logistic support, 
     supplies and services'' as defined in section 2350 of title 
     10, United States Code, means ``food, billeting, 
     transportation (including airlift), petroleum, oils, 
     lubricants, clothing, communications services, medical 
     services, ammunition, base operations support (and 
     construction incident to base operations support), storage 
     services, use of facilities, training services, spare parts 
     and components, repair and maintenance services, calibration 
     services, and port services.'' The conferees also expect that 
     the notifications would itemize the military support and 
     equipment, if any, and any other support or services that the 
     Department has approved for reimbursement using Coalition 
     Support Funds.
     Reimbursement of certain coalition nations for support 
         provided to United States military operations (sec. 1233)
       The Senate amendment contained a provision (sec. 1532) that 
     would authorize the Secretary of Defense to reimburse any key 
     cooperating nation for logistical and military support 
     provided by that nation to United States military operations 
     in Operation Iraqi Freedom or Operation Enduring Freedom. The 
     total amount of reimbursements made under this authority 
     during fiscal year 2008 may not exceed $1.2 billion. Not 
     later than 30 days after the date of enactment of this Act, 
     the Secretary of Defense would be required to prescribe 
     standards for determining what kinds of logistical and 
     military support may be considered reimbursable under this 
     section. The prescribed standards would not take effect until 
     15 days after the Secretary reports the standards to the 
     congressional defense committees. The Secretary would be 
     required to notify the congressional defense committees not 
     less than 15 days before making any reimbursement under this 
     section.
       The House bill contained no similar provision.
       The House recedes.
     Logistical support for coalition forces supporting operations 
         in Iraq and Afghanistan (sec. 1234)
       The Senate amendment contained a provision (sec. 1533) that 
     would authorize the Secretary of Defense to provide up to 
     $400.0 million in supplies, services, and other logistical 
     support to coalition forces supporting U.S. military and 
     stabilization operations in Iraq and Afghanistan.
       The House bill contained no similar provision.
       The House recedes.

                    Subtitle C--Iraq Refugee Crisis

     Refugee Crisis in Iraq Act (sec. 1241-1249)
       The Senate amendment contained a series of provisions that 
     would: name the subtitle the Iraq Refugee Crisis Act of 2007 
     (sec. 1571); require the Secretary of State to establish a 
     refugee processing program in Iraq and in countries in the 
     region for Iraqis threatened because of their association 
     with the United States Government (sec. 1572); create a 
     Priority 2 category under the refugee resettlement program 
     for Iraqi refugees of special humanitarian concern (sec. 
     1573); expand the current special immigrant visa program 
     (sec. 1574); require the Secretary of State to designate a 
     Minister Counselor in the U.S. Embassy in Iraq and in U.S. 
     embassies in certain other countries in the region to oversee 
     processing of Priority 2 refugees and refugees of special 
     humanitarian concern (sec. 1575); require the Secretary of 
     State to consult with countries with significant populations 
     of Iraqi refugees throughout the implementation of this Act 
     (sec. 1576); allow Iraqis who were denied asylum or had their 
     asylum

[[Page 32976]]

     status terminated after March 1, 2003, solely based on 
     changed country conditions to file a motion to reopen their 
     claim (sec. 1577); require several reports from the executive 
     branch on the implementation of this Act (sec. 1578); and 
     authorize the appropriation of funds necessary to carry out 
     this Act (sec. 1579).
       The House bill contained no similar provisions.
       The House recedes with an amendment which would consolidate 
     these provisions into one subtitle and would make several 
     technical and clarifying amendments. The two most significant 
     amendments are: (1) a provision which would provide 8 months 
     of resettlement assistance to those individuals granted 
     special immigrant visas; and (2) a modification that would 
     require the Secretary of State to designate a Senior 
     Coordinator, rather than a Minister Counselor, in the U.S. 
     Embassy in Iraq and in U.S. embassies in certain other 
     countries in the region to oversee the processing of Priority 
     2 refugees and refugees of special humanitarian concern.
       The conferees note that they do not intend implementation 
     of this subtitle to have an adverse impact on the quantity or 
     quality of skilled local Iraqi personnel available to support 
     those operations. However, they also recognize that working 
     for the U.S. Government can prove to be a dangerous decision 
     for Iraqi nationals, and express appreciation to those Iraqis 
     for their contributions to the U.S. mission in that country. 
     Therefore, the conferees urge executive branch officials to: 
     consider the length and capacity of service when providing 
     preference in awarding special immigrant visas to Iraqi 
     citizens and nationals who have been working for the U.S. 
     Government; and consider giving higher priority in the 
     processing of refugee status to qualified applicants facing 
     the most immediate or severe risk of harm and Iraqi nationals 
     whose contracts with the U.S. Government constitute a 
     significant portion of their income since June 2003.
       The conferees believe that the Secretary of State should 
     conduct the processing of refugees in Iraq with reasonable 
     consideration of the security situation. In addition, the 
     conferees recognize that the security situation might at 
     times adversely affect the ability of the U.S. Government to 
     carry out the necessary vetting requirements of Iraqi 
     nationals seeking entry into the United States under this 
     subtitle. Nonetheless, it remains critical that U.S. 
     Government officials perform the appropriate level of 
     background checks and fulfill other necessary vetting 
     requirements for each Iraqi national processed.
       The conferees believe that the United States has a moral 
     responsibility to help those Iraqis who have helped the 
     United States and believe these provisions take a step toward 
     meeting that responsibility.
       Finally, the conferees note that no assistance authorized 
     under this subtitle shall be provided to any person, agent, 
     instrumentality, representative, or official of a country 
     that is found to support international terrorism pursuant to 
     the Export Administration Act, the Arms Export Control Act, 
     the Foreign Assistance Act, or any other provision of law.

             Subtitle D--Other Authorities and Limitations

     Cooperative opportunities documents under cooperative 
         research and development agreements with NATO 
         organizations and other allied and friendly foreign 
         countries (sec. 1251)
       The House bill contained a provision (sec. 1241) that would 
     modify the timing of the preparation of cooperative 
     opportunities documents for acquisition programs and update 
     the terminology used in statute to describe the documents.
       The Senate amendment contained a similar provision (sec. 
     1211).
       The House recedes.
     Extension and expansion of temporary authority to use 
         acquisition and cross-servicing agreements to lend 
         military equipment for personnel protection and 
         survivability (sec. 1252)
       The Senate amendment contained a provision (sec. 1212) that 
     would extend through September 30, 2008, the temporary 
     authority provided under section 1202 of the John Warner 
     National Defense Authorization Act for Fiscal Year 2007 
     (Public Law 109-364) for the Secretary of Defense to loan 
     under acquisition and cross-servicing agreements equipment 
     for personnel protection and survivability to foreign 
     military forces participating in combined operations with the 
     United States in Iraq and Afghanistan. The provision would 
     also expand to whom these loans of equipment may be made, to 
     include foreign military forces participating in combined 
     operations with the United States as part of a peacekeeping 
     operation under the United Nations Charter or another 
     international agreement.
       The House bill contained no similar provision.
       The House recedes.
       The conferees emphasize that the authority for section 1202 
     is intended to permit the temporary loan of equipment to 
     foreign military forces that are participating in a specified 
     combined operation with the United States Armed Forces, for 
     the purpose of providing personnel protection or aiding in 
     the personnel survivability of such foreign military forces 
     during those operations. The conferees note that equipment 
     loaned under this authority may be used by the military 
     forces of the recipient country for not longer than 1 year, 
     at which time the equipment will be returned to the United 
     States under the terms of the acquisition and cross-servicing 
     agreement between the United States and the recipient 
     country.
     Acceptance of funds from the Government of Palau to defray 
         expenditures attendant to the operation of United States 
         military Civic Action Team in Palau (sec. 1253)
       The Senate amendment contained a provision (sec. 1213) that 
     would amend section 1933(a) of title 48, United States Code, 
     to allow the Secretary of Defense to accept funds from the 
     Government of Palau to defray expenditures that the 
     Department of Defense makes in connection with the United 
     States military Civic Action Team in Palau.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Repeal of requirement relating to North Korea (sec. 1254)
       The Senate amendment contained a provision (sec. 1217) that 
     would prohibit the Secretary of Defense from obligating or 
     expending any funds authorized to be appropriated under 
     section 1207 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163) until the 
     administration has fully implemented section 1211 of the John 
     Warner National Defense Authorization Act for Fiscal Year 
     2007 (Public Law 109-364).
       The House bill contained no similar provision.
       The House recedes with an amendment that would repeal 
     subsection (a) of section 1211 of the John Warner National 
     Defense Authorization Act for Fiscal Year 2007 (Public Law 
     109-364).
       The conferees note that section (a) of section 1211 
     mandated the appointment of a North Korea Policy Coordinator 
     because of the conferees' concern that the administration 
     lacked a coordinated approach to addressing the North Korean 
     nuclear threat. However, more recently, the conferees have 
     noted progress in the Six-Party Talks with North Korea, and 
     are satisfied that the Assistant Secretary of State for East 
     Asian and Pacific Affairs has sufficient authority in these 
     negotiations. Therefore, the conferees deem that the intent 
     of section 1211 (a) has been met.
     Justice for Osama bin Laden and other leaders of al Qaeda 
         (sec. 1255)
       The Senate amendment contained a provision (sec. 1219) that 
     would authorize the Secretary of State to offer a reward of 
     $50.0 million for the capture, death, or information leading 
     to the capture or death of Osama bin Laden.
       The Secretary of State and the Secretary of Defense, in 
     coordination with the Director of National Intelligence, 
     shall jointly submit to Congress, not later than 90 days 
     after enactment of this Act, and every 90 days thereafter, a 
     report on the progress made in bringing Osama bin Laden and 
     other leaders of al Qaeda to justice.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     report requirement to two reports: (1) the initial report due 
     90 days after enactment of this Act; and, (2) a report a year 
     later.
       The conferees believe that a foremost objective of U.S. 
     counterterrorist policy should be protecting U.S. persons and 
     property by capturing or killing Osama bin Laden, and other 
     leaders of the al Qaeda network, and destroying the al Qaeda 
     network.
     Extension of Counterproliferation Program Review Committee 
         (sec. 1256)
       The House bill contained a provision (sec. 1242) that would 
     extend the Counterproliferation Program Review Committee 
     (CPRC) established by section 1605 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 108-136) 
     through 2013. This provision would also add additional 
     members to the committee and change the requirement that the 
     committee submit a report annually to a biennial reporting 
     requirement with the first biennial report due on March 1, 
     2009 and each odd-numbered year thereafter through 2013.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     new members of the CPRC to the Department of State and the 
     Department of Homeland Security and would require the first 
     biennial report to be submitted on May 1, 2009.
     Sense of Congress on the Western Hemisphere Institute for 
         Security Cooperation (sec. 1257)
       The House bill contained a provision (sec. 1243) that would 
     express the sense of Congress supporting the Department of 
     Defense's education and training facility, the Western 
     Hemisphere Institute for Security Cooperation.
       The Senate amendment (sec. 1067) contained a similar 
     provision.
       The Senate recedes with a technical amendment.
     Sense of Congress on Iran (sec. 1258)
       The Senate amendment contained a provision (sec. 1538) that 
     would state the sense of

[[Page 32977]]

     the Senate that Iran's Islamic Revolutionary Guards Corps 
     (IRGC) should be designated as a foreign terrorist 
     organization and placed on the list of Specially Designated 
     Global Terrorists established by the International Emergency 
     Economic Powers Act.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     it is in the U.S. national interest that the Government of 
     Iran not use extremists in Iraq to subvert or co-opt the 
     institutions of the legitimate Government of Iraq.
       The conferees are concerned by reports, including the 
     testimony to Congress in September 2007 of General David 
     Petraeus, Commander, Multi-National Forces, Iraq, and 
     Ambassador Ryan Crocker, U.S. Ambassador to Iraq, regarding 
     Iranian activity in Iraq that is harmful to the Iraqi state 
     and coalition forces in Iraq. The conferees strongly endorse 
     the administration's pursuit of a diplomatic approach to 
     address this Iranian threat. The conferees note that on 
     October 25, 2007, the Department of State announced that it 
     designated the IRGC an entity of proliferation concern under 
     Executive Order 13382, and the Department of the Treasury 
     designated the IRGC's Qods Force under Executive Order 13224 
     for providing material support to the Taliban and other 
     terrorist organizations.

                          Subtitle E--Reports

     One-year extension of update on report on claims relating to 
         the bombing of the Labelle Discotheque (sec. 1261)
       The Senate amendment contained a provision (sec. 1233) that 
     would provide for a 1-year extension of the requirement to 
     provide an update on the report on claims related to the 
     bombing of the Labelle Discotheque.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Report on United States policy toward Darfur, Sudan (sec. 
         1262)
       The House bill contained a provision (sec. 1235) that would 
     require the Secretary of Defense to submit a report on the 
     operational status of the airfield located in Abeche, Chad.
       The Senate amendment contained a similar provision (sec. 
     1235).
       The House recedes with an amendment that would incorporate 
     elements of a report on U.S. policy toward Darfur, Sudan that 
     was in the Senate amendment (sec. 1234). The amendment would 
     also make other clarifying and technical changes, and would 
     repeal a similar reporting requirement on the situation in 
     Darfur, Sudan required by section 1227 of the John Warner 
     National Defense Authorization Act for Fiscal Year 2007 
     (Public Law 109-364).
     Inclusion of information on asymmetric capabilities in annual 
         report on military power of the People's Republic of 
         China (sec. 1263)
       The Senate amendment contained a provision (sec. 1236) that 
     would amend section 1202(b) of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65) to 
     include information on asymmetric capabilities in the annual 
     report on the military power of the People's Republic of 
     China.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Report on application of the Uniform Code of Military Justice 
         to civilians accompanying the armed forces during a time 
         of declared war or contingency operation (sec. 1264)
       The Senate amendment contained a provision (sec. 1237) that 
     would require the Secretary of Defense to report to Congress 
     on the status of implementing a requirement to make the 
     Uniform Code of Military Justice applicable to military 
     contractors during a time of war or a contingency operation.
       The House bill contained no similar provision.
       The House recedes with an amendment that would specify 
     matters to be addressed in the report.
     Report on family reunions between United States citizens and 
         their relatives in North Korea (sec. 1265)
       The Senate amendment contained a provision (sec. 1238) that 
     would require the President to submit to Congress, not later 
     than 180 days after the date of enactment of this Act, a 
     report on family reunions between United States citizens and 
     their relatives in North Korea.
       The House bill contained no similar provision.
       The Senate recedes with an amendment that would modify 
     elements of the required report.
       The conferees expect the report to include information 
     regarding what additional actions, if any, the President 
     considers desirable and feasible in order to facilitate safe 
     and transparent reunions of U.S. citizens and their relatives 
     in North Korea, wherever those reunions may take place.
       The conferees support the ongoing Six-Party Talks with 
     North Korea and placing the priority on the de-nuclearization 
     of the Korean peninsula, but note that normalization, which 
     would encompass a number of issues, is also being addressed 
     within the talks.
     Reports on prevention of mass atrocities (sec. 1266)
       The Senate amendment contained a provision (sec. 1239) that 
     would require both the Secretary of State and the Secretary 
     of Defense to submit a report not later than 120 days after 
     the date of enactment of this Act, to the congressional 
     defense committees, the Committee on Foreign Relations of the 
     Senate, and the Committee on Foreign Affairs of the House of 
     Representatives assessing their respective capabilities to 
     provide training and guidance to the command of an 
     international intervention force that seeks to prevent mass 
     atrocities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     report to be due 180 days after the date of enactment of this 
     Act.
     Report on threats to the United States from ungoverned areas 
         (sec. 1267)
       The Senate amendment contained a provision (sec. 1042) that 
     would require the Secretary of Defense and the Secretary of 
     State, in coordination with the Director of National 
     Intelligence, to report on the threat posed to the United 
     States by ungoverned areas, especially as they relate to 
     terrorist groups and individuals who aim their activities at 
     the United States and its allies.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

                   Legislative Provisions Not Adopted

     Limitation on assistance to the Government of Thailand
       The Senate amendment contained a provision (sec. 1215) that 
     would require the Secretary of Defense to notify the 
     Committees on Armed Services of the Senate and the House of 
     Representatives, the Senate Foreign Relations Committee, and 
     the House Foreign Affairs Committee 15 days prior to 
     obligating or expending funds to initiate any new types of 
     military assistance activities with Thailand.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the administration appears to have 
     conducted a judicious review of all ongoing assistance to the 
     Government of Thailand, and urge the administration to apply 
     a uniform standard when considering the provision of military 
     and other types of foreign assistance to that Government.
       The conferees also note that Thailand appears to be making 
     progress towards restoring civilian democracy in the country 
     via elections scheduled for December 2007, and urge the 
     current Government of Thailand to lift martial law 
     countrywide and take all necessary measures to ensure that 
     the elections are free and fair.
     Presidential report on policy objectives and United States 
         strategy regarding Iran
       The Senate amendment contained a provision (sec. 1216) that 
     would prohibit not more than 75 percent of the amount 
     authorized for the Office of the Under Secretary of Defense 
     for Policy from being obligated until the report required by 
     section 1213(b) of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364) 
     is submitted to Congress.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the report was submitted.
     Report on Department of Defense efforts to build the capacity 
         of the Government of Iraq to carry out reconstruction 
         activities in Iraq
       The House bill contained a provision (sec. 1223) requiring 
     the Secretary of Defense to submit a report to Congress on 
     efforts of the Department of Defense to build the capacity of 
     the Government of Iraq to carry out reconstruction activities 
     in Iraq.
       The Senate amendment contained no similar provision.
       The House recedes.
     Sense of Congress on responsibilities of the Iraqi Council of 
         Ministers to enact laws to achieve political reform and 
         diminish support for the insurgency in Iraq
       The House bill contained a provision (sec. 1226) expressing 
     the sense of Congress that the Iraqi Council of 
     Representatives should not recess for an extended period of 
     time without first making substantial progress toward 
     enacting certain laws, other legislation, and constitutional 
     amendments.
       The Senate amendment contained no similar provision.
       The House recedes.
     Report on planning and implementation of the United States 
         engagement and policy toward Darfur
       The Senate amendment contained a provision (sec. 1234) that 
     would require a report on planning and implementation of the 
     United States engagement and policy toward Darfur.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that this reporting requirement has been 
     incorporated into another provision in title XII of this act.

[[Page 32978]]


     Report on progress of the Department of Defense's 
         counternarcotics program for Afghanistan
       The House bill contained a provision (sec. 1233) that would 
     require the Secretary of Defense to submit to Congress, not 
     later than 90 days after the date of enactment of this Act, a 
     report on the progress of the Department of Defense's 
     counternarcotics program for Afghanistan.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that House section 1233 and the 
     counternarcotics component of Senate section 1231 were 
     reconciled and incorporated in a larger report on U.S. policy 
     in Afghanistan that is included in another provision of this 
     Act.
       The conferees note with concern the administration's 
     renewed focus on aerial spraying as an option to be 
     considered by the Government of Afghanistan for non-
     negotiated forced eradication of opium poppies. The conferees 
     recommend that the Secretary of Defense evaluate the 
     potential consequences of aerial spraying, including the 
     impact on perceptions of the Afghan population, and on 
     achieving the larger strategic goals of the U.S. military in 
     Afghanistan.
     Sense of Congress concerning the strategic military 
         capabilities and intentions of the People's Republic of 
         China
       The House bill contained a provision (sec. 1244) that would 
     express the sense of Congress concerning the strategic 
     military capabilities and intentions of the People's Republic 
     of China.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note China's continued investment in 
     strategic military capabilities that could be used to support 
     power projection and access denial operations beyond the Asia 
     Pacific region, and the lack of transparency surrounding the 
     strategic military capabilities and intentions relating to 
     China's military modernization. The Pentagon's 2006 
     Quadrennial Defense Review Report (QDR) found that China is 
     at a strategic crossroads and that, ``of the major and 
     emerging powers, China has the greatest potential to compete 
     militarily with the United States.'' The conferees note that 
     during the last year, China demonstrated such potential, 
     including the October 2006 broach of a Chinese SONG-class 
     diesel-electric submarine in close proximity to the USS Kitty 
     Hawk aircraft carrier in international waters and the January 
     2007 test of a direct ascent anti-satellite missile against a 
     Chinese weather satellite in low-earth orbit.
       The conferees encourage the Secretary of Defense to expand 
     efforts to develop an accurate assessment and understanding 
     of China's strategic military modernization and strategic 
     intentions, particularly with regard to its sea- and space-
     based strategic capabilities.
     Sense of Congress on the capture of Osama bin Laden and the 
         al Qaeda leadership
       The Senate amendment contained a provision (sec. 1544) that 
     would express the sense of Congress that it should be the 
     policy of the United States Government that the foremost 
     objective of United States counterterrorist operations is to 
     protect United States persons and property from terrorist 
     attacks by capturing or killing Osama bin Laden, Ayman al-
     Zawahiri, and other leaders of al Qaeda and destroying the al 
     Qaeda network.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the underlying concern motivating 
     this provision is addressed by another provision elsewhere in 
     this Act, and that the statement of managers accompanying 
     that provision contains the concerns expressed in the Senate 
     amendment.

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

     Specification of Cooperative Threat Reduction programs and 
         funds (sec. 1301)
       The Senate amendment contained a provision (sec. 1301) that 
     would specify the Cooperative Threat Reduction programs and 
     funds.
       The House bill contained a similar provision (sec. 1301).
       The House recedes.
     Funding allocations (sec. 1302)
       The House bill contained a provision (sec. 1302) that would 
     authorize $398.0 million for the Cooperative Threat Reduction 
     (CTR) program. The provision would also authorize a specific 
     amount for each CTR program element, require notification to 
     Congress 30 days before the Secretary of Defense obligates 
     and expends fiscal year 2008 funds for purposes other than 
     those specifically authorized, and provide limited authority 
     to vary the individual CTR program amounts. The authority to 
     vary the amount of funds for three of the program elements 
     would be limited to increases of no more than 125 percent of 
     the specific amount authorized. The Secretary would be 
     required to notify Congress 15 days in advance of varying the 
     amounts for any CTR program.
       The Senate amendment contained a similar provision (sec. 
     1302) that would authorize $448.0 million for the CTR 
     program; would not include the 125 percent limit on the 
     authority of the Secretary to vary the amounts in the CTR 
     program elements; and would include the 15 day notification 
     requirement.
       The House recedes with an amendment that would authorize 
     $428.0 million for the CTR program, an increase of $80.0 
     million above the budget request. The conferees agree to 
     provide $10.0 million for new CTR initiatives outside the 
     former Soviet Union to support the new authority for such 
     initiatives provided elsewhere in this Act. The conferees 
     agree to provide $5.0 million for chemical weapons 
     destruction in Libya, and $1.0 million for chemical weapons 
     destruction in Shchuch'ye, Russia. In the event the Secretary 
     is unable to use all or part of the authorized funding in 
     furtherance of this new authority, the Secretary may use such 
     funds for any other CTR program elements after the required 
     15 day notification period.
     Specification of Cooperative Threat Reduction programs in 
         states outside the former Soviet Union (sec. 1303)
       The Senate amendment contained a provision (sec. 1303) that 
     would amend section 1501 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201) 
     to permit the Department of Defense to conduct Cooperative 
     Threat Reduction programs outside the former Soviet Union 
     (FSU). The provision would specify the nature of the programs 
     that could be carried out.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     nature of the programs that could be carried out outside the 
     FSU and would include programs to facilitate safe and secure 
     transportation and storage of nuclear weapons, weapons 
     components and their delivery vehicles, and programs to 
     expand military-to-military and other defense contacts.
     Repeal of restrictions on assistance to states of the former 
         Soviet Union for Cooperative Threat Reduction (sec. 1304)
       The Senate amendment contained a provision (sec. 1305) that 
     would repeal certain provisions of the Soviet Nuclear Threat 
     Reduction Act of 1991 (Public Law 102-228), the Cooperative 
     Threat Reduction Act of 1993 (Public Law 103-160), and 
     section 1305 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65) that require a number of 
     annual certifications before any Cooperative Threat Reduction 
     funds may be obligated in any fiscal year. In addition, the 
     provision would repeal section 1303 of the Ronald W. Reagan 
     National Defense Authorization Act for Fiscal Year 2005 
     (Public Law 108-375), which authorized the President to waive 
     the annual certification requirements. The provision would 
     also clarify application of certain other provisions of law.
       The House bill contained a similar provision (sec. 1305).
       The House recedes.
     Modification of authority to use Cooperative Threat Reduction 
         funds outside the former Soviet Union (sec. 1305)
       The House bill contained a provision (sec. 1306) that would 
     amend section 1308 of the National Defense Authorization Act 
     for Fiscal Year 2004 (2004 NDAA) (Public Law 108-136). 
     Section 1308 authorizes the President to utilize the 
     Cooperative Threat Reduction (CTR) program funds for 
     emergency or other short-term projects outside the former 
     Soviet Union (FSU). The House provision would amend section 
     1308 to allow the Secretary of Defense, with the concurrence 
     of the Secretary of State, to: utilize the CTR program funds 
     for an emergency; repeal the $50.0 million funding limitation 
     on the amount that could be obligated for an emergency; and 
     require the Secretary of Defense to notify Congress 15 days 
     prior to exercising this authority, unless such advance 
     notification would severely undermine the national security 
     of the United States, in which case the notification would be 
     made within 10 days of obligating CTR funds.
       The Senate amendment contained a similar provision (sec. 
     1304) but would not repeal the $50.0 million funding 
     limitation and would not modify the notification 
     requirements.
       The Senate recedes with an amendment that would make 
     clarifying changes and would permit the Secretary of Defense 
     and the Secretary of State to notify Congress no later than 
     10 days after the funds were obligated.
       The conferees note that prior to the enactment of the 2004 
     NDAA, CTR authority was limited to programs conducted in the 
     states of the FSU. Section 1308 of the 2004 NDAA provided 
     authority for the CTR program to address emergency or other 
     short-term projects outside the FSU. Elsewhere in this Act, 
     the conferees have included a provision that would provide 
     new authority for the CTR program to expand its programmatic 
     authority on a regular, non-emergency basis to states outside 
     the FSU. With this new authority, the utility of the section 
     1308 emergency authority may diminish. The conferees direct 
     the Secretary of Defense to submit, with the budget request 
     for the CTR program for fiscal year 2010, an assessment as to 
     whether there is a continued need for the emergency authority 
     provided by section 1308 of the 2004 NDAA.

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     New initiatives for the Cooperative Threat Reduction program 
         (sec. 1306)
       The House bill contained a provision (sec. 1303) that would 
     set forth the sense of Congress that the Department of 
     Defense (DOD) should expand and strengthen the Cooperative 
     Threat Reduction (CTR) program. This would include expansion 
     of the scope of CTR program activities within Russia and the 
     former Soviet Union (FSU) as well as in states outside the 
     FSU, including those in Asia and the Middle East, and 
     specifically on the Korean Peninsula. In addition, the 
     provision would require the Secretary of Defense to enter 
     into an arrangement with the National Academy of Sciences 
     (NAS) under which the NAS would conduct a study that would 
     analyze possible options for strengthening and expanding the 
     CTR program and make related recommendations. The provision 
     would also require the Secretary to develop and submit to 
     Congress by March 31, 2008, a report on the NAS study 
     including the Secretary's assessment of the study together 
     with a specific action plan for new CTR initiatives.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would make 
     clarifying changes and would focus the scope of the NAS study 
     on identification of threats that are most appropriately 
     addressed by the CTR program. In addition, the amendment 
     would allow additional time for both the NAS study and the 
     report to be prepared by the Secretary.
       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 
     any necessary classification reviews of the study or related 
     documents.
       The conferees recognize that there are a wide variety of 
     global threats arising from the proliferation of nuclear, 
     chemical, and biological weapons and weapons-related 
     materials, technologies, and expertise. The conferees 
     emphasize that addressing these threats will require the 
     resources of many agencies of the United States Government, 
     which in turn must be well coordinated with other states and 
     international entities working in broad partnerships. The 
     partnerships should also focus on national programs that can 
     be sustained in the long-term.
       The conferees expect that the NAS study and the Secretary's 
     report will provide an analysis of the threats that could be 
     addressed by the CTR program both within and outside the FSU. 
     The conferees hope that the NAS study will identify potential 
     opportunities for Russia and other states to work together 
     with the United States to establish deeper partnerships to 
     address these threats.
       The conferees support strengthening and expanding, as much 
     as possible, the programs designed to address these threats, 
     including the CTR program. The CTR program is critical to 
     U.S. national security and should be a top priority. 
     Significant progress has been made over the last 10 years, 
     but much remains to be done. The conferees believe the CTR 
     program would benefit from additional funding to support new 
     and expanded activities both within and outside the FSU. 
     Elsewhere in this Act, the conferees have included a number 
     of provisions and additional funding for the CTR program to 
     ensure that wherever possible, actions are taken to address 
     threats involving nuclear, chemical, and biological weapons 
     and weapons-related materials, technologies, and expertise.
     Report relating to chemical weapons destruction at 
         Shchuch'ye, Russia (sec. 1307)
       The House bill contained a provision (sec. 1304) that would 
     require the Secretary of Defense to notify the congressional 
     defense committees within 30 days of the commencement of 
     negotiations on, or the signing or finalization of, an 
     agreement with the Russian Federation that would change 
     implementation of the Shchuch'ye chemical weapons destruction 
     project, under the Cooperative Threat Reduction (CTR) 
     program, in any manner inconsistent with the purpose and 
     intent of the amounts authorized and appropriated for the 
     project. The provision would also require the Secretary to 
     submit a report to the congressional defense committees on 
     the Shchuch'ye chemical weapons destruction project, setting 
     forth a current and detailed cost estimate for project 
     completion and a specific strategic and operating plan for 
     project completion, which includes contractual arrangements, 
     plans for project management and oversight, quality assurance 
     and sustainability measures, metrics for measuring project 
     progress, coordination plans, and a project completion date. 
     In addition, the provision would prohibit the Secretary from 
     implementing any new or modified agreement with Russia 
     relating to the Shchuch'ye project, as described in the 
     provision, until 90 days after the report and the signed and 
     finalized agreement have been submitted to the congressional 
     defense committees, and the Secretary makes a series of 
     certifications with respect to the project.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to submit a report to the congressional defense 
     committees only on the Shchuch'ye chemical weapons 
     destruction project. This report would include: a current and 
     detailed cost estimate for project completion; and a specific 
     strategic and operating plan for project completion setting 
     forth plans for project management and oversight, quality 
     assurance and sustainability measures, metrics for measuring 
     project progress, and a projected project completion date. 
     This report would be due no later than 90 days after the date 
     of enactment of this Act.
       The conferees believe that completion of the chemical 
     weapons destruction project at Shchuch'ye, Russia, should be 
     a high priority for the CTR program and urge the Secretary to 
     take necessary steps to ensure that the facility is 
     adequately supported so that it can begin to destroy the 
     stockpile of Russian chemical weapons as soon as possible.
     National Academy of Sciences study of prevention of 
         proliferation of biological weapons (sec. 1308)
       The Senate amendment contained a provision (sec. 1306) that 
     would require the Secretary of Defense to enter into an 
     arrangement with the National Academy of Sciences (NAS) under 
     which the NAS would carry out a study to identify areas for 
     cooperation with states outside the former Soviet Union under 
     the Cooperative Threat Reduction program to prevent the 
     proliferation of biological weapons and dual-use materials. 
     The provision would also require the Secretary to submit a 
     report on the NAS study, including the Secretary's assessment 
     of the NAS report and any actions the Secretary plans to take 
     to implement its recommendations, to the Committees on Armed 
     Services of the Senate and the House of Representatives on 
     December 31, 2008.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make 
     clarifying changes and would modify the reporting requirement 
     so that the Secretary's report would be provided to Congress 
     90 days after receipt of the NAS report.
       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 
     any necessary classification reviews of the study or related 
     documents.

                   Legislative Provision Not Adopted

     Clarification of amounts for Cooperative Threat Reduction 
         programs
       The House bill contained a provision (sec. 1307) that would 
     increase the amounts for the Cooperative Threat Reduction 
     program by $480,000.
       The Senate amendment contained no similar provision.
       The House recedes.

                    TITLE XIV--OTHER AUTHORIZATIONS

                     Subtitle A--Military Programs

     Summary and explanation of tables
       This title contains funding authorizations for working 
     capital and revolving funds, the National Defense Sealift 
     Fund, the Defense Health Program, the destruction of chemical 
     munitions, drug interdiction and counterdrug activities, and 
     funding for the Department of Defense Inspector General and 
     other programs which contain elements of more than one type 
     of traditional funding account (such as procurement or 
     operation and maintenance) inside a single account.
       The conference agreement also includes funding for a 
     Strategic Readiness Fund which was included in title XVII of 
     the House bill and is included in title XIV of the conference 
     agreement.
       This title includes legislative proposals regarding the 
     national defense stockpile, and authorizes trust fund 
     expenditures for the Armed Forces Retirement Home, which is a 
     Department of Defense civil program funded outside the 
     national defense budget function.
       The following tables provide the program-level detailed 
     guidance for the funding authorized in title XIV of this Act. 
     The tables also display the funding requested by the 
     administration in the fiscal year 2008 budget request for 
     these programs, and indicate those programs for which the 
     conferees either increased or decreased the requested 
     amounts. Unless noted in this report, funding changes to the 
     budget request are made without prejudice.

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     Working capital funds (sec. 1401)
       The House bill contained a provision (sec. 302) that would 
     authorize fiscal year 2008 funds for Defense Working Capital 
     Funds and the National Defense Sealift Fund.
       The Senate amendment contained a similar provision for 
     working capital funds (sec. 1401).
       The conference agreement includes this provision.
     National Defense Sealift Fund (sec. 1402)
       The House bill contained a provision (sec. 302) that would 
     authorize fiscal year 2008 funds for the National Defense 
     Sealift Fund and for working capital funds.
       The Senate amendment contained a similar provision 
     authorizing appropriations for the National Defense Sealift 
     Fund (sec. 1402).
       The conference agreement includes this provision.
     Defense Health Program (sec. 1403)
       The House bill contained a provision (sec. 303) that would 
     authorize fiscal year 2008 funds for the Defense Health 
     Program and other programs.
       The Senate amendment contained a similar provision 
     authorizing appropriations for the Defense Health Program 
     (sec. 1403).
       The conference agreement includes this provision.
     Chemical agents and munitions destruction, Defense (sec. 
         1404)
       The House bill contained a provision (sec. 303) that would 
     authorize fiscal year 2008 funds for chemical agents and 
     munitions destruction and other programs.
       The Senate amendment contained a similar provision 
     authorizing appropriations for chemical agents and munitions 
     destruction (sec. 1404).
       The conference agreement includes this provision.
     Drug Interdiction and Counter-Drug Activities, Defense-wide 
         (sec. 1405)
       The House bill contained a provision (sec. 303) that would 
     authorize fiscal year 2008 funds for drug interdiction and 
     counterdrug activities and other programs.
       The Senate amendment contained a similar provision 
     authorizing appropriations for drug interdiction and 
     counterdrug activities (sec. 1405).
       The conference agreement includes this provision.
     Defense Inspector General (sec. 1406)
       The House bill contained a provision (sec. 303) that would 
     authorize fiscal year 2008 funds for the Department of 
     Defense Inspector General and other programs.
       The Senate amendment contained a similar provision 
     authorizing appropriations for the Inspector General (sec. 
     1406).
       The conference agreement includes this provision.

                 Subtitle B--National Defense Stockpile

     Authorized uses of National Defense Stockpile funds (sec. 
         1411)
       The House bill contained a provision (sec. 3301) that would 
     authorize the use of funds from the National Defense 
     Stockpile Transaction Fund for the operation and maintenance 
     of the National Defense Stockpile for fiscal year 2008.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Revisions to required receipt objectives for previously 
         authorized disposals from the National Defense Stockpile 
         (sec. 1412)
       The House bill contained a provision (sec. 3302) that would 
     authorize revisions on limitations in asset sales from the 
     National Defense Stockpile.
       The Senate amendment contained a similar provision (sec. 
     1413).
       The Senate recedes with an amendment that would amend 
     section 3402(b) of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65) to increase the 
     Department of Defense's stockpile commodity disposal 
     authority from $600.0 million to $710.0 million. The Senate 
     amendment would further amend section 3303(a) of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (Public Law 105-261), as amended by section 3302 of the 
     Ronald W. Reagan National Defense Authorization Act for 
     Fiscal Year 2005 (Public Law 108-375), and section 3302(a) of 
     the National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163) to increase the Department's disposal 
     authority from $1,016.0 million to $1,066.0 million.
     Disposal of ferromanganese (sec. 1413)
       The Senate amendment contained a provision (sec. 1411) that 
     would require the Secretary of Defense to certify that 
     disposal of ferromanganese from the National Defense 
     Stockpile above 50,000 and 75,000 tons in fiscal year 2008 is 
     in the national defense interest, will not disrupt markets, 
     and is consistent with stockpile requirements. The Senate 
     amendment would also require the Department of Defense to 
     wait 30 days after certification before disposing of 
     additional ferromangangese.
       The House bill contained no similar provision.
       The House recedes with an amendment that would allow for 
     certification when the Department has contracts for 50,000 
     and 75,000 tons and would eliminate the 30-day wait period.
     Disposal of chrome metal (sec. 1414)
       The Senate amendment contained a provision (sec. 1412) that 
     would require the Secretary of Defense to certify that 
     disposal of chrome metal from the National Defense Stockpile 
     above 500 and 750 short tons in fiscal year 2008 is in the 
     national defense interest, will not disrupt markets, and is 
     consistent with stockpile requirements. The Senate amendment 
     would also require the Department of Defense to wait 30 days 
     after certification before disposing of additional chrome 
     metal.
       The House bill contained no similar provision.
       The House recedes.

                Subtitle C--Armed Forces Retirement Home

     Authorization of appropriations for Armed Forces Retirement 
         Home (sec. 1421)
       The House bill contained a provision (sec. 422) that would 
     authorize $61.6 million to be appropriated for fiscal year 
     2008 from the Armed Forces Retirement Home Trust Fund for 
     operation of the Armed Forces Retirement Home.
       The Senate amendment contained an identical provision (sec. 
     1421).
       The conference agreement includes this provision.
     Administration and oversight of the Armed Forces Retirement 
         Home (sec. 1422)
       The Senate amendment contained a provision (sec. 1422) that 
     would amend the Armed Forces Retirement Home Act of 1991 to 
     require: (1) treatment of the Armed Forces Retirement Home as 
     a military facility of the Department of Defense for the 
     purpose of entering into contracts, agreements, or 
     transactions regarding real property; (2) accreditation by a 
     nationally recognized civilian accrediting organization for 
     each aspect of each facility of the Retirement Home; (3) 
     appointment of a Chief Medical Officer of the Retirement 
     Home; and (4) the Inspector General of the Department of 
     Defense to inspect the Retirement Home every 2 years.
       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) provide 
     that the administration of the Retirement Home remains under 
     the direct authority, control, and administration of the 
     Secretary of Defense, (2) require the Secretary of Defense to 
     designate the Deputy Director of the TRICARE Management 
     Activity to serve as the senior medical advisor for the 
     Retirement Home; and (3) require the Inspector General of the 
     Department of Defense to inspect the Retirement Home in any 
     year in which a facility of the Retirement Home is not 
     inspected by a nationally recognized civilian accrediting 
     organization. The amendment deleted the requirement that the 
     Retirement Home be treated as a military facility of the 
     Department of Defense for the purpose of entering into 
     contracts, agreements, or transactions regarding real 
     property.

                   Legislative Provisions Not Adopted

     Additional amount for drug interdiction and counterdrug 
         activities with respect to Afghanistan
       The Senate amendment contained a provision (sec. 1405A) 
     that would transfer funding for drug interdiction and 
     counterdrug activities in Afghanistan between titles of this 
     Act.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report.
     Reduction in certain authorizations due to savings from lower 
         inflation
       The Senate amendment contained a provision (sec. 1407) that 
     would reduce the amounts authorized in Division A of this Act 
     by $1.6 billion to bring the inflation assumptions applicable 
     to purchases by the Department of Defense for fiscal year 
     2008 in line with the economic assumptions previously adopted 
     by Congress in the budget resolution for fiscal year 2008.
       The House bill contained no similar provision.
       The Senate recedes.
     Pilot program to establish an Army Wounded Warrior battalion 
         at an appropriate active duty base
       The House bill contained a provision (sec. 1419) that would 
     require the Secretary of the Army to establish a pilot 
     program, known as the Army Wounded Warrior Program, based on 
     the Wounded Warrior Regiment program of the Marine Corps.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferrees are aware that the Army has already 
     established Warrior Transition Units that are similar in 
     function to the Marine Wounded Warrior Regiment program.
     Establishment of medical support fund for support of members 
         of the armed forces returning to military service or 
         civilian life
       The House bill contained a provision (sec. 1422) that would 
     require the establishment of a medical support fund on the 
     books of the Treasury to support programs and activities 
     relating to the medical treatment, care, rehabilitation, 
     recovery, and support of wounded and injured service members 
     and their

[[Page 32985]]

     families, and authorized $50.0 million for the fund.
       The Senate amendment contained no similar provision.
       The House recedes.
     Oversight Board for Wounded Warriors
       The House bill contained a provision (sec. 1423) that would 
     require the establishment of a 12 member board to be known as 
     the Oversight Board for Wounded Warriors to provide oversight 
     of medical care, quality of life, administrative processing, 
     and family programs supporting wounded warriors and to 
     provide advice and counsel to Congress and the Department of 
     Defense about how the programs can be made more efficient and 
     effective.
       The Senate amendment contained no similar provision.
       The House recedes.
     Study and report of waiting periods for appointments at 
         Department of Veterans Affairs medical facilities
       The House bill contained a provision (sec. 1438) that would 
     require the Secretary of Veterans Affairs to conduct a study 
     on the average length of time between the desired date for 
     which a veteran seeks to schedule an appointment for health 
     care at a Department of Veterans Affairs medical facility and 
     the date on which such appointment is completed.
       The Senate amendment contained no similar provision.
       The House recedes.
     Increase in physicians at hospitals of the Department of 
         Veterans Affairs
       The House bill contained a provision (sec. 1453) that would 
     require the Secretary of Veterans Affairs to increase the 
     number of resident physicians at hospitals of the Department 
     of Veterans Affairs.
       The Senate amendment contained no similar provision.
       The House recedes.

  TITLE XV--AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR OPERATION 
              IRAQI FREEDOM AND OPERATION ENDURING FREEDOM

     Overview
       The President's budget as submitted in February requested 
     $141.7 billion in emergency funding for the Department of 
     Defense for Operation Iraqi Freedom (OIF), Operation Enduring 
     Freedom (OEF), and for other purposes, including some of the 
     ``grow the force'' costs of increasing Army and Marine Corps 
     active-duty personnel levels. The Concurrent Resolution on 
     the Budget for Fiscal Year 2008 fully funded this amount.
       After the House and Senate bills had been reported, and the 
     Concurrent Resolution on the Budget had been adopted, the 
     President submitted two additional budget amendments. On July 
     31, 2007, the President requested an additional $5.3 billion 
     for Mine-Resistant Ambush Protected (MRAP) vehicles. On 
     October 22, 2007, the President requested an additional $42.3 
     billion for operations in Iraq and Afghanistan and for other 
     purposes, bringing the total requested for war-related 
     purposes for fiscal year 2008 to $189.3 billion.
       The summary table and detailed tables that follow summarize 
     the funding requested in February, July, and October as 
     emergency spending for these operations, together with the 
     conferee's actions on these requests. Funding for Department 
     of Defense operations in Iraq and Afghanistan, with the 
     exception of funding for military construction projects to 
     support these operations, is included in title XV of this 
     Act. Funding for military construction projects in Iraq and 
     Afghanistan is included in title XXIX of this Act.

                         Explanation of Tables

     Explanation of tables
       The following tables provide the program-level detailed 
     guidance for the funding authorized in title XV of this Act. 
     The tables also display the funding requested by the 
     administration in the fiscal year 2008 budget request for 
     war-related programs, and indicate those programs for which 
     the conferees either increased or decreased the requested 
     amounts. Unless noted in this report, funding changes to the 
     budget request are made without prejudice.

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                     Legislative Provisions Adopted

     Purpose (sec. 1501)
       The House bill contained a provision (sec. 1501) that would 
     state the purpose of the funds provided in this title and 
     would also state a policy with respect to the provision of 
     such funds.
       The Senate amendment contained a similar provision (sec. 
     1521).
       The Senate recedes with an amendment to delete the 
     statement of policy.
     Army procurement (sec. 1502)
       The House bill contained a provision (sec. 1502) that would 
     authorize additional fiscal year 2008 funds for Army 
     procurement to support operations in Iraq and Afghanistan.
       The Senate amendment contained a similar provision (sec. 
     1501).
       The conference agreement includes this provision.
       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 additional fiscal year 2008 funds for Navy and 
     Marine Corps procurement to support operations in Iraq and 
     Afghanistan.
       The Senate amendment contained a similar provision (sec. 
     1502).
       The conference agreement includes this provision.
       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 additional fiscal year 2008 funds for Air Force 
     procurement to support operations in Iraq and Afghanistan.
       The Senate amendment contained a similar provision (sec. 
     1503).
       The conference agreement includes this provision.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Joint Improvised Explosive Device Defeat Fund (sec. 1505)
       The House bill contained a provision (sec. 1505) that would 
     authorize additional fiscal year 2008 funds for the Joint 
     Improvised Explosive Device Defeat Fund to support operations 
     in Iraq and Afghanistan.
       The Senate amendment contained a similar provision (sec. 
     1510).
       The conference agreement includes this provision.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Defense-wide activities procurement (sec. 1506)
       The House bill contained a provision (sec. 1506) that would 
     authorize additional fiscal year 2008 funds for defense-wide 
     procurement to support operations in Iraq and Afghanistan.
       The Senate amendment contained a similar provision (sec. 
     1504).
       The conference agreement includes this provision.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Research, Development, Test, and Evaluation (sec. 1507)
       The House bill contained a provision (sec. 1507) that would 
     authorize additional fiscal year 2008 funds for Research, 
     Development, Test, and Evaluation to support operations in 
     Iraq and Afghanistan.
       The Senate amendment contained a similar provision (sec. 
     1505).
       The conference agreement includes this provision.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Operation and maintenance (sec. 1508)
       The House bill contained a provision (sec. 1508) that would 
     authorize additional fiscal year 2008 funds for operation and 
     maintenance programs.
       The Senate amendment contained a similar provision (sec. 
     1506).
       The conference agreement includes this provision.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Working capital funds (sec. 1509)
       The House bill contained a provision (sec. 1509) that would 
     authorize additional fiscal year 2008 funds for Defense 
     Working Capital Funds and the National Defense Sealift Fund 
     to support operations in Iraq and Afghanistan.
       The Senate amendment contained a similar provision for 
     working capital funds (sec. 1514) and for the National 
     Defense Sealift Fund (sec. 1515).
       The conference agreement includes this provision.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Other Department of Defense programs (sec. 1510)
       The House bill contained a provision (sec. 1510) that would 
     authorize additional fiscal year 2008 funds for the Defense 
     Health Program, drug interdiction and counterdrug activities, 
     and the Inspector General to support operations in Iraq and 
     Afghanistan.
       The Senate amendment contained similar separate provisions 
     (sects. 1508, 1509, and 1516) for these programs.
       The conference agreement includes this provision.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Iraq Freedom Fund (sec. 1511)
       The House bill contained a provision (sec. 1511) that would 
     authorize additional fiscal year 2008 funds for the Iraq 
     Freedom Fund.
       The Senate amendment contained a similar provision (sec. 
     1513).
       The conference agreement includes this provision.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Iraq Security Forces Fund (sec. 1512)
       The House bill contained a provision (sec. 1512) that would 
     authorize additional fiscal year 2008 funds for the Iraq 
     Security Forces Fund.
       The Senate amendment contained a similar provision (sec. 
     1511).
       The House recedes with an amendment that would require 
     notification to the Committee on Foreign Relations of the 
     Senate and the Committee on Foreign Affairs of the House of 
     Representatives of any contributions to this fund from 
     foreign governments or other outside entities.
     Afghanistan Security Forces Fund (sec. 1513)
       The House bill contained a provision (sec. 1513) that would 
     authorize additional fiscal year 2008 funds for the Iraq 
     Security Forces Fund.
       The Senate amendment contained a similar provision (sec. 
     1512).
       The House recedes with an amendment that would require 
     notification to the Committee on Foreign Relations of the 
     Senate and the Committee on Foreign Affairs of the House of 
     Representatives of any contributions to this fund from 
     foreign governments or other outside entities.
     Military personnel (sec. 1514)
       The House bill contained a provision (sec. 1514) that would 
     authorize additional fiscal year 2008 funds for active and 
     reserve component military personnel programs to support 
     operations in Iraq and Afghanistan.
       The Senate amendment contained a similar provision (sec. 
     1507).
       The conference agreement includes this provision.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
       [Addition in millions of dollars]
       Yellow Ribbon Reintegration Program 73.0
     Strategic Readiness Fund (sec. 1515)
       The House bill contained a provision (sec. 1708) that would 
     authorize $1.0 billion for a Strategic Readiness Fund.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Treatment as additional authorizations (sec. 1516)
       The House bill contained a provision (sec. 1518) that would 
     state that the amounts authorized to be appropriated in title 
     XV of this Act are in addition to any other amounts 
     authorized in this Act.
       The Senate amendment contained an identical provision (sec. 
     1522).
       The conference agreement includes this provision.
     Special transfer authority (sec. 1517)
       The Senate amendment included a provision (sec. 1523) that 
     would authorize the transfer of up to $3.5 billion of war-
     related funding authorizations in this title among the 
     accounts in this title. This special transfer authority is in 
     addition to the general transfer authority contained in 
     section 1001 of this Act, but the same reprogramming 
     procedures applicable to transfers under section 1001 would 
     also apply to transfers under this section.
       The House bill contained no similar provision.
       The House recedes.

                              Budget Items

     Army tactical radio modernization plans
       The budget request included $2.3 billion in Other 
     Procurement, Army for single channel ground and airborne 
     radios (SINCGARS).
       The House bill would decrease this amount by $754.0 
     million.
       The Senate bill would decrease this amount by $375.0 
     million.
       The conference outcome is reflected in the tables of this 
     report in Other Procurement, Army, line 34.
       The conferees strongly support the goal of providing more 
     communications capability to all echelons of the Army. Based 
     on current operational experience, it is clear to the 
     conferees that in order to maintain the Army's current 
     dominance in land warfare, the Army must significantly 
     increase its tactical communications capability.
       While the conferees are supportive of the overall effort to 
     improve Army communications and properly equip near-term 
     deploying units, the conferees believe that the Army's long-
     term tactical modernization plan lacks

[[Page 33085]]

     sufficient analysis of future Army communications needs, is 
     not synchronized with other Army and Department of Defense 
     programs, and does not account for future Army modernization 
     funding projections.
       Specifically, the conferees are concerned that the Army's 
     continued desire to procure thousands more SINCGARS radios is 
     not consistent with the Army's plan for a future battlefield 
     network that requires: dramatic increases in bandwidth for 
     data transmission; significantly better network security; 
     more flexible systems that can operate across a wider 
     electronic spectrum; and systems that increase joint and 
     coalition interoperability.
       In addition, the conferees note that the Army continues to 
     request funding for SINCGARS radios in spite of an Army 
     Science Board study that recommended the Army stop SINCGARS 
     procurement and that the Army cannot execute the full amount 
     of SINCGARS funding requested due to limited production 
     capacity. Further, the conferees are concerned that the 
     Army's plans for continued SINCGARS radio procurement do not 
     fully address the National Security Agency's goals for 
     encryption modernization and are inconsistent with the Marine 
     Corps decision to cease procurement of SINCGARS radios.
       The conferees also believe that the Army's plan to acquire 
     additional legacy tactical radios is not aligned with the 
     goals of the Joint Tactical Radio System (JTRS) program. The 
     conferees are concerned that the acquisition of thousands 
     more SINCGARS radios will seriously undermine the Army's 
     investment in the JTRS program. By reducing its future demand 
     for the more capable JTRS radio, the Army will significantly 
     increase the unit cost of JTRS systems for the Army and other 
     services. Finally, the conferees note that the Army's plan to 
     continue procurement of thousands of SINCGARS radios will 
     impede efforts of the JTRS program to move the military 
     services toward a standards-based acquisition model for 
     tactical radios that encourages competition and avoids sole-
     source production dependency.
       The conferees urge the Army and the Assistant Secretary of 
     Defense for Networks and Information Integration (ASD(NII)) 
     to reexamine the Army's current tactical radio modernization 
     plan. Specifically, the conferees strongly encourage the Army 
     and ASD (NII) to develop a strategy for tactical radio 
     modernization that focuses on the future. The conferees 
     strongly support continued research and development 
     investments in the JTRS program. However, the conferees 
     understand that JTRS will not be available in large numbers 
     for several more years and that the Army's plan for 
     procurement of JTRS radios is not fully defined.
       In the interim, the conferees agree that the Army should 
     invest in a limited number of tactical radio systems that 
     meet JTRS Software Communications Architecture (SCA) 
     standards, and provide improvements in bandwidth capacity, 
     programmable encryption, spectrum flexibility, and 
     interoperability necessary for the Army to realize its future 
     battlefield network plan. The conferees believe that over-
     investment in legacy systems will not give the Army 
     flexibility to properly integrate JTRS radios and build its 
     future network. If the Army procures any additional legacy 
     radio systems prior to the fielding of the JTRS radio, it 
     should only procure the minimum number needed to fill urgent 
     short-term needs for deploying units. As it makes these 
     limited investments, the conferees encourage the Army to 
     avoid new or extended, long-term sole-source tactical radio 
     procurement contracts that may limit the Army's options in 
     the future.
     Blast injury research
       Blast injury from improvised explosive devices (IEDs) 
     continues to be the most significant cause of American 
     casualties in Iraq. The conferees are concerned that the 
     Department of Defense has not appropriately allocated 
     resources provided for the defeat of IEDs to the full range 
     of efforts necessary to defeat the IED threat, including much 
     needed research and training on the prevention, mitigation, 
     and treatment of blast injuries. Section 256 of the National 
     Defense Authorization Act for Fiscal Year 2006 (Public Law 
     109-163) established a Department of Defense-wide program to 
     prevent, mitigate, and treat blast injuries. The conferees 
     expect that the Joint Improvised Explosive Device Defeat 
     Office (JIEDDO), in accordance with the 2006 Act, will be a 
     partner in the Department-wide efforts to coordinate, manage, 
     and fund research efforts for medical blast research.
       To support these efforts, the conferees direct that JIEDDO 
     fund, through interagency transfer of resources as 
     appropriate, blast-related research, training, and 
     programmatic activities which have been identified as high 
     priorities by the DOD executive agent and the centers of 
     excellence established under section 1621 of this Act, at a 
     level of not less than $50.0 million in fiscal year 2008. 
     These include, but are not limited to: research and 
     development of diagnostics, training, and treatment for 
     traumatic brain injury and post-traumatic stress disorder; 
     collection, storage, and integration of operational, medical, 
     and protective equipment performance data associated with 
     wounding and non-wounding events; body surface wound mapping 
     for investigation of wounding patterns to be included in body 
     armor design; research and training to prevent traumatic eye 
     injury and cranial-facial injury; research to enhance 
     prevention, healing, and quality of life relating to burns; 
     advanced prosthetics; and enhanced research on hemorrhage 
     control.
       Further, the conferees direct JIEDDO to report to the 
     congressional defense committees on the actions taken, 
     including funding, to fulfill these requirements, no later 
     than March 1, 2008.
     Grow the force transfer
       The budget request for the global war on terror included 
     $689.4 million in Operation and Maintenance, Army (OMA) to 
     fund the planned growth of the Army's end strength for fiscal 
     year 2008.
       The House bill would authorize $689.4 million in OMA of 
     title XV.
       The Senate amendment would authorize $689.4 million in OMA 
     of title III.
       The conferees agree to authorize $689.4 for growth of the 
     Army's end strength in OMA of title XV of this Act.

                       Items of Special Interest

     Reactive armor for EFP protection
       The amended budget request for the war-related budget 
     includes $27.5 million in PE 62618A for ballistics 
     technology. Of that amount, $20.0 million is for development 
     of armor capable of countering explosively formed projectiles 
     (EFPs).
       The conferees understand that reactive armor technology may 
     provide an effective solution at lower weight than existing 
     designs. Furthermore, modeling and design tools are available 
     that would allow a candidate reactive armor system to be 
     designed and evaluated rapidly, followed by fabrication and 
     testing. The conferees direct that the Under Secretary of 
     Defense for Acquisition, Technology, and Logistics 
     (USD(AT&L)) ensure that the Army and the Joint Improvised 
     Explosive Defeat Organization conduct a robust technology 
     analysis as rapidly as possible to determine whether reactive 
     armor would provide superior protection against EFPs and to 
     determine the potential for weight reduction with a longer-
     term effort to optimize the reactive armor system. The 
     conferees direct the USD(AT&L) to inform the congressional 
     defense committees by letter within 60 days of enactment of 
     this Act of his findings and plans on this matter.

                   Legislative Provision Not Adopted

     Improvised explosive device protection for military vehicles
       The Senate amendment contained a provision (sec. 1543) that 
     would authorize $23.6 billion for the procurement of mine 
     resistant ambush protected military vehicles.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report in Other Procurement, Army, line 9a.
     Reports on mitigation of effects of explosively formed 
         projectiles and mines
       The Senate amendment contained a provision (sec. 1517) that 
     would require the Secretary of Defense to submit to the 
     congressional defense committees reports on four items: (1) 
     explosively formed projectiles (EFPs); (2) Mine Resistant 
     Ambush Protected (MRAP) vehicles; (3) tactical wheeled 
     vehicle strategy; and (4) long-term armoring strategy.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees direct the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics to report to the 
     congressional defense committees no later than 120 days after 
     enactment of this Act, on the following items: (1) a plan for 
     improving capabilities to mitigate the effects of EFPs; (2) 
     plans for armor upgrades, and their impact on system 
     performance and sustainment; (3) the impact of the MRAP 
     vehicle program on the current acquisition strategies and 
     procurement plans of the Army and Marine Corps for the 
     tactical wheeled vehicle fleet, including inventory mix, 
     overall sustainment cost, and logistical and industrial base 
     issues; and (4) plans for the Joint Light Tactical Vehicle 
     program, including an assessment of the continued validity of 
     previously adopted key performance parameters.
       The conferees note that the MRAP has been designated the 
     Department's highest acquisition priority by the Secretary of 
     Defense. The conferees believe this designation is 
     appropriate and will continue to work with the Department to 
     ensure this critical force protection program is adequately 
     funded. The conferees urge the Department to protect to the 
     maximum extent possible the current engineering and 
     technology of the MRAP vehicle, as well as subsequent 
     improvements to the survivability of MRAP vehicles. Further, 
     the conferees note that the MRAP is not the final solution to 
     combat the improvised explosive devices and other asymmetric 
     threats to tactical vehicles faced by the warfighter in Iraq 
     and Afghanistan, and the conferees urge the Department to be 
     ready to respond quickly as these threats evolve.

                   TITLE XVI--WOUNDED WARRIOR MATTERS

     Wounded Warrior Act--overview
       ``The willingness with which our young people are likely to 
     serve in any war, no

[[Page 33086]]

     matter how justified, shall be directly proportional as to 
     how they perceive the Veterans of earlier wars were treated 
     and appreciated by their country.''--General and President 
     George Washington 1789
       In fulfillment of President Washington's vision, American 
     soldiers, sailors, airmen, and marines receive the finest 
     medical care available in the world. Through advances in 
     medicine and battlefield care, the U.S. military has achieved 
     the lowest war mortality rate in history in Operation Iraqi 
     Freedom and Operation Enduring Freedom. An Independent Review 
     Group appointed by Secretary of Defense Robert Gates to 
     investigate inadequacies at Walter Reed Army Medical Center 
     in February 2007 confirmed that, ``. . . the evolution of 
     rapid joint battlefield medical response, rapid evacuation 
     with intensive care, quality air transportation, and 
     unsurpassed trauma care have yielded unprecedented survival 
     rates for our combat forces.''
       Yet despite this remarkable record of accomplishment, 
     reports beginning on February 18, 2007 by the Washington Post 
     illuminated inadequacies and failures at Walter Reed Army 
     Medical Center. Subsequent independent investigations and 
     hearings by congressional committees revealed the need for 
     system-wide improvements in outpatient care, transition of 
     recovering service members between the Department of Defense 
     and Department of Veterans Affairs health care systems, and 
     performance of the Departments' physical disability 
     evaluation systems. In addition, as a consequence of improved 
     battlefield care, increasing numbers of service members are 
     surviving with complex, multiple injuries, traumatic brain 
     injury, post-traumatic stress disorder, and other mental 
     health conditions.
       Following the revelations at Walter Reed, both the House of 
     Representatives and the Senate adopted bills to improve the 
     management of medical care, disability evaluations, personnel 
     actions, and quality of life for members of the armed forces 
     recovering from illness or injury received during the war. On 
     March 28, 2007, the House of Representatives adopted the 
     ``Wounded Warrior Assistance Act of 2007''. The Senate 
     adopted the ``Dignified Treatment of Wounded Warriors Act'' 
     on July 25, 2007.
       This conference report includes provisions from each bill. 
     Taken as a whole, it advances the care, management, and 
     transition of recovering service members, enhances health 
     care and benefits for families, and begins the process of 
     fundamental reform of the Department of Defense and 
     Department of Veterans Affairs disability evaluation systems. 
     The conference report is the result of bipartisan efforts in 
     the Senate and the House of Representatives by both the 
     Committees on Armed Services and the Committees on Veterans 
     Affairs. It also includes, in particular, many 
     recommendations of the President's Commission on Care for 
     America's Returning Wounded Warriors.
       In completing its work on the National Defense 
     Authorization Act for 2008, the conferees express deep 
     gratitude to U.S. service members and their families for 
     their sacrifice and courage in service to their country. We 
     are grateful for the work of outstanding medical personnel 
     whose skill and dedication have saved or prolonged the lives 
     of more than 30,000 service members who, as of this date, 
     have benefitted from their care.
       The conferees acknowledge that additional work remains to 
     be done in order to achieve permanent improvements for 
     wounded and ill service members. The conferees are committed 
     to continued progress toward that goal, through oversight of 
     actions now underway within the executive branch, 
     consideration of findings of public and independent 
     organizations, dialogue with recovering service members and 
     their families, and enactment of additional laws as they are 
     needed.
       Together with all who share the goal of improving care for 
     ill and injured service members and veterans, we will work to 
     achieve the vision of our Nation's founders--to manifest not 
     only appreciation and gratitude toward those who have borne 
     the battle, but also to provide the highest quality care to 
     U.S. service members and their families.
     Short title (sec. 1601)
       The Senate amendment contained a provision (sec. 1601) that 
     would provide that this title may be cited as the ``Dignified 
     Treatment of Wounded Warriors Act''.
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide that 
     this title may be cited as the ``Wounded Warrior Act''.
     General definitions (sec. 1602)
       The House bill contained a provision (sec 1401) that would 
     define terms used in the title on wounded warrior assistance.
       The Senate amendment contained a provision (sec. 1602) that 
     would define the terms used in the Dignified Treatment of 
     Wounded Warriors Act.
       The House recedes with an amendment that would define terms 
     used in the Wounded Warrior Act.
     Consideration of gender-specific needs of recovering service 
         members and veterans (sec. 1603)
       The Senate amendment contained a provision (sec. 1612) that 
     would require the Secretary of Defense and the Secretary of 
     Veterans Affairs to take into account and fully address any 
     unique specific needs of women members of the armed forces 
     and women veterans in developing and implementing a 
     comprehensive policy on care, management, and transition of 
     members of the armed forces with serious injuries or 
     illnesses.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense and the Secretary of Veterans Affairs to 
     take into account and fully address any unique gender-
     specific needs of recovering servicemembers and veterans when 
     developing and implementing the policy required by the 
     Wounded Warrior Act.

Subtitle A--Policy on Improvements to Care, Management, and Transition 
                     of Recovering Service Members

     Comprehensive policy on improvements to care, management, and 
         transition of recovering service members (sec. 1611)
       The House bill contained a series of provisions that would 
     make improvements to medical and dental care for members of 
     the armed forces assigned to hospitals in an outpatient 
     basis.
       The House bill contained a provision (sec. 1411) that would 
     amend chapter 55 of title 10, United States Code, to 
     establish requirements for the duties, training, supervision, 
     and workload of medical care case managers and service member 
     advocates. The provision would also require the secretary 
     concerned to conduct semiannual surveys of members in an 
     outpatient status.
       The House bill contained a provision (sec. 1418) that would 
     require the Secretary of Defense to report to appropriate 
     congressional committees on recommendations to improve 
     training provided to health care professionals, medical care 
     case managers, and service member advocates, in particular to 
     ensure that such personnel were adequately trained to detect 
     the early warning signs of post-traumatic stress disorder, 
     suicidal or homicidal thoughts or behaviors, and other 
     behavioral health conditions. The provision would require an 
     annual review of such training, and development of a system 
     to track any notifications made by care managers regarding 
     the early warning signs of post-traumatic stress disorder.
       The House bill contained a provision (sec. 1424) that would 
     require the Secretary of Defense to expand the opportunities 
     for recovering service members of the reserve components in 
     an outpatient status to receive care at a military treatment 
     facility closest to the member's home, rather than closest to 
     the base from which the member was deployed.
       The House bill contained a provision (sec. 1437) that would 
     require the Secretary of Defense to conduct a study on the 
     feasibility of developing a joint soldier patient tracking 
     system that would provide transparency at all times on the 
     location and status of recovering service members.
       The House bill contained a provision (sec. 1439) that would 
     require the Secretary of Defense to conduct a study on the 
     feasibility of measuring family members' satisfaction with 
     health care services.
       The Senate amendment contained a provision (sec. 1611) that 
     would require the Secretary of Defense and the Secretary of 
     Veterans Affairs to develop and implement, by January 1, 
     2008, a comprehensive policy on the care, management, and 
     transition of members of the armed forces with serious 
     injuries or illnesses. The provision would require that the 
     policy address detailed requirements concerning: (1) the care 
     and management of covered service members in a medical hold 
     status or on the temporary disability retired list (including 
     specific standards for access to medical care services); (2) 
     the medical evaluation and disability evaluation systems for 
     severely injured and ill service members; (3) the return of 
     recovered service members to active duty when appropriate; 
     and (4) the transition of service members from the Department 
     of Defense to the Department of Veterans Affairs.
       The provision also would require that the Secretaries 
     complete a review of all applicable policies and procedures 
     of the Departments to identify potential shortfalls in those 
     policies, and to consider the findings and recommendations of 
     numerous commissions established to examine Department of 
     Defense and veterans health care and compensation. The 
     provision also would require a report on any reduction in 
     disability ratings by the Department of Defense.
       The Senate amendment contained a provision (sec. 257) that 
     would require a study of a standard soldier tracking system 
     in conjunction with pilot projects to be conducted to improve 
     the disability evaluation systems of the Departments of 
     Defense and Veterans Affairs.
       The Senate amendment contained a provision (sec. 705) that 
     would express the sense of the Senate that the Department of 
     Defense should encourage continuing collaboration between the 
     Army and the Department of Veterans Affairs in treating 
     America's wounded warriors and, when appropriate and 
     available, provide additional support and resources for the 
     development of such collaborations.

[[Page 33087]]

       The conference agreement includes a provision that would 
     integrate these provisions into a single requirement to 
     develop and implement a comprehensive policy by July 1, 2008, 
     on improvements to the care, management, and transition of 
     recovering service members. The agreement would add a 
     requirement for recovery plans and recovery coordinators, and 
     require the Secretary of Defense to establish maximum 
     workload amounts for recovery coordinators, medical and non-
     medical care managers, and minimum standards for access to 
     health care services. The conference agreement would also add 
     a requirement for policy on the relocation of any military 
     personnel found to be housed in substandard outpatient 
     facilities. Other areas included in the conference report 
     would require procedures for referral of recovering service 
     members to appropriate public and private entities for needed 
     health care services, and care and job placement services for 
     family members of recovering service members. The conference 
     agreement would authorize the Secretary of Defense to apply 
     policies for the care, management, and transition of members 
     on the temporary disability retired list to those members as 
     the Secretary deems appropriate.
       The conferees acknowledge that the Secretaries of Defense 
     and Veterans Affairs have established a Senior Oversight 
     Committee and specific subgroups to address many of the 
     policy improvements required by this section. The conferees 
     intend that the improvements identified be established in 
     consistent policies throughout the Department of Defense, and 
     to the extent feasible, with the Department of Veterans 
     Affairs. The conferees intend that this policy will be 
     established and implemented in the near future, and expect 
     that it will be periodically updated as best practices and 
     improved approaches are discovered.
       The conferees direct that the Secretary of Defense provide 
     a report to the Committees on Armed Services of the Senate 
     and the House of Representatives within 30 days of enactment 
     of this Act, and every 90 days thereafter, which describes:
       (1) the standards for maximum case workloads for recovery 
     coordinators, and medical and non-medical managers which are 
     in effect for recovering service members;
       (2) the standards in effect for the frequency of periodic 
     face-to-face reviews of the medical status of recovering 
     service members;
       (3) the standards in effect setting forth minimum periods 
     of time for access to health care services for recovering 
     service members;
       (4) the performance of the Department in maintaining all 
     such standards; and
       (5) any deviation from the standard and the reasons for 
     such deviation.
       The conferees will closely monitor the performance of the 
     Departments in achieving improvements in policy and practices 
     related to recovering service members and will take into 
     consideration such performance in development of future 
     legislative requirements.
     Medical evaluations and physical disability evaluations of 
         recovering service members (sec. 1612)
       The House bill contained a provision (sec. 1415) that would 
     add a requirement to section 1222 of title 10, United States 
     Code, to require the secretary of each military department to 
     appoint an independent medical advocate for members before a 
     medical evaluation board to serve as an advocate for the best 
     interests of the member and to advise the member regarding 
     the member's medical condition and recommendations of the 
     medical evaluation board.
       The House bill contained a provision (sec. 1416) that would 
     amend section 1222 of title 10, United States Code, to 
     require the Secretary of Defense to establish the maximum 
     workload that could be assigned to physical evaluation board 
     liaison officers, and would require a standardized training 
     program for such officers.
       The House bill contained a provision (sec. 1417) that would 
     amend section 1216 of title 10, United States Code, to 
     require the Secretary of Defense to establish a standardized 
     training program and curriculum for the Department's 
     disability evaluation system for commanders, enlisted 
     members, health care professionals, and others involved in 
     the disability evaluation system.
       The House bill contained a provision (sec. 1433) that would 
     require the Secretary of Defense and the Secretary of 
     Veterans Affairs to conduct a joint evaluation of the 
     disability evaluation systems used by the Departments in 
     order to improve the consistency of the two systems, and to 
     evaluate the feasibility of consolidating them into a single 
     system.
       The Senate amendment contained a provision (sec. 
     1611(d)(2)) that would require that the comprehensive policy 
     on the care and management of covered members provide 
     processes, procedures, and standards for medical evaluations 
     and physical disability evaluations of covered service 
     members.
       The House recedes with an amendment that would require the 
     Secretary of Defense to develop a policy on: improvements for 
     the conduct by the military departments of medical 
     evaluations of recovering service members that include 
     uniform processes; standard criteria and definitions for 
     determining achievement of the maximum medical benefit from 
     treatment and rehabilitation; standard timelines for 
     determinations of fitness for duty, specialty care 
     consultations, preparation of medical documents, and appeals 
     of medical evaluation determinations; review of the findings 
     and recommendations of the medical evaluation board upon 
     request of the member by a health care professional 
     independent of the medical evaluation board; standards for 
     qualifications and training of medical evaluation board 
     personnel; and standards for information for recovering 
     service members and their families on the medical evaluation 
     board process.
       The amendment would require a similar policy on 
     improvements for the conduct of physical disability 
     evaluations that include: a clearly defined process for 
     disability determinations; procedures to eliminate 
     unacceptable discrepancies and improve consistency of 
     disability ratings; uniform timelines for appeals of 
     disability determinations; uniform standards for 
     qualifications and training of physical disability evaluation 
     board personnel; uniform standards for the number of cases 
     pending before a disability evaluation board; uniform 
     standards and procedures for provision of legal counsel to 
     recovering service members; and uniform standards on the 
     roles and responsibilities of non-medical care managers. The 
     amendment would also require the Secretary of Defense and the 
     Secretary of Veterans Affairs to report to Congress on the 
     feasibility and advisability of consolidating the disability 
     evaluation systems of the military departments and of the 
     Department of Veterans Affairs into a single disability 
     evaluation system.
     Return of recovering service members to active duty in the 
         Armed Forces (sec. 1613)
       The Senate amendment contained a provision (sec. 
     1611(d)(2)(C)) that would require that the comprehensive 
     policy on the care and management of covered members provide 
     standards for determinations by the military departments on 
     the return of covered service members to active duty.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Transition of recovering service members from care and 
         treatment through the Department of Defense to care, 
         treatment, and rehabilitation through the Department of 
         Veterans Affairs (sec. 1614)
       The House bill contained a provision (sec. 1421) that would 
     amend chapter 58 of title 10, United States Code, to require 
     the Secretary of Defense to provide each service member being 
     separated or retired for physical disability with a written 
     plan for transition to programs operated by the Department of 
     Veterans Affairs. The provision would amend section 1145 of 
     title 10, United States Code, to require establishment of a 
     joint separation and evaluation physical examination for use 
     by both Departments, and would require establishment and 
     implementation of a process to ensure an interoperable, bi-
     directional, real time exchange of critical medical 
     information.
       The Senate amendment contained a provision (sec. 685) that 
     would require the Secretary of Defense and the Secretary of 
     Veterans Affairs to submit to Congress a plan to maximize 
     access to the benefits delivery at discharge program for 
     members of the reserve components who have been ordered to 
     active duty since September 11, 2001.
       The Senate amendment contained a provision (sec. 1032) that 
     would require the Secretary of Defense to provide for each 
     service member separating from the armed forces or who 
     detaches from the member's regular unit while awaiting 
     medical separation or retirement, upon the request of the 
     member, the address and other appropriate contact information 
     of the member to the State veterans agency in the State in 
     which the member will first reside after separation or the 
     State in which the member resides while awaiting medical 
     separation or retirement.
       The Senate amendment contained a provision (sec. 
     1611(d)(2)(D)) that would require that the comprehensive 
     policy on the care and management of covered service members 
     provide processes, procedures, and standards for the 
     transition of covered service members from care and treatment 
     by the Department of Defense to care and treatment by the 
     Department of Veterans Affairs before, during, and after 
     separation from the armed forces.
       The Senate amendment also contained a provision (sec. 1662) 
     that would require the Secretary of Defense and the Secretary 
     of Veterans Affairs to jointly develop and implement a 
     mechanism to provide for the electronic transfer from the 
     Department of Defense to the Department of Veterans Affairs 
     of any Department of Defense documents (including Department 
     of Defense form DD 214) necessary to establish or support the 
     eligibility of a service member for benefits administered by 
     the Department of Veterans Affairs.
       The House recedes with an amendment that would require the 
     Secretary of Defense and the Secretary of Veterans Affairs to 
     jointly develop and implement processes, procedures, and 
     standards for the transition of recovering service members 
     from care and treatment through the Department of Defense to 
     care, treatment, and rehabilitation through the Department of 
     Veterans Affairs.

[[Page 33088]]

     These processes, procedures, and standards would require the 
     provision for the electronic transfer of documents and the 
     member's address and contact information to the Department of 
     Veterans Affairs.
     Reports (sec. 1615)
       The Senate amendment contained a provision (sec. 1611(e)) 
     that would require the Secretary of Defense and the Secretary 
     of Veterans Affairs to jointly submit to Congress a report on 
     the comprehensive policy on the care and management of 
     covered service members not later than January 1, 2008.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense and the Secretary of Veterans Affairs to 
     jointly submit to the appropriate committees of Congress a 
     report on the comprehensive policy upon completion of the 
     policy, but not later than July 1, 2008, and an interim 
     report not later than February 1, 2008. The amendment would 
     also require the Comptroller General of the United States to 
     submit to the appropriate committees of Congress not later 
     than 6 months after the date of enactment of this Act, and 
     every year thereafter through 2010, a report setting forth 
     the Comptroller General's assessment of the progress of the 
     Secretary of Defense and the Secretary of Veterans Affairs in 
     developing and implementing the policy.
     Establishment of a wounded warrior resource center (sec. 
         1616)
       The House bill contained a provision (sec. 1412) that would 
     establish a Department of Defense-wide Ombudsman Office 
     within the office of the Secretary of Defense to provide 
     policy guidance to, and oversight of, the ombudsman offices 
     in the military departments.
       The House bill also contained a provision (sec. 1413) that 
     would amend chapter 80 of title 10, United States Code, to 
     require the Secretary of Defense to establish and maintain a 
     toll-free hot line to collect, maintain, and update 
     information regarding possible deficiencies in the adequacy, 
     quality, and state of repair of medical-related support 
     facilities.
       The Senate amendment contained a provision (sec. 1611 
     (d)(1)(Q)) that would require the Secretary of Defense to 
     include establishment of a Department of Defense-wide 
     Ombudsman Office within a comprehensive policy on 
     responsibility for members in a medical hold status.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to establish a wounded warrior resource 
     center to provide wounded warriors, their families, and their 
     primary caregivers with a single point of contact for 
     assistance with reporting deficiencies in certain military 
     facilities, obtaining health care services, receiving 
     benefits information, and any other difficulties encountered 
     while supporting wounded warriors. The center would provide 
     multiple methods of access, including at a minimum an 
     Internet website and a toll-free telephone number. 
     Individuals who provide information to the center would be 
     informed of their option to have their identity remain 
     confidential.
       The conferences intend that the resources of the Wounded 
     Warrior Resource Center shall also be available to residents 
     of the Armed Forces Retirement Home.
     Notification to Congress of hospitalization of combat wounded 
         service members (sec. 1617)
       The House bill contained a provision (sec. 1414) that would 
     amend chapter 55 of title 10, United States Code, to require 
     the service secretaries, if the member consents, to notify 
     appropriate members of Congress of the hospitalization of any 
     member of the armed forces evacuated from a theater of 
     combat.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     notification to appropriate members of Congress of the 
     hospitalization of any member of the armed forces evacuated 
     from a theater of combat and admitted to a military treatment 
     facility within the United States.
     Comprehensive plan on prevention, diagnosis, mitigation, 
         treatment, and rehabilitation of, and research on, 
         traumatic brain injury, post-traumatic stress disorder, 
         and other mental health conditions in members of the 
         armed forces (sec. 1618)
       The House bill contained a provision (sec. 1425) that would 
     require the Secretary of Defense to develop a plan to 
     incorporate into training, combat theater operations, and 
     post-deployment service evidence-based preventive and early-
     intervention measures, practices, or procedures that reduce 
     the likelihood that personnel in combat will develop post-
     traumatic stress disorder (PTSD) or other stress-related 
     psychopathologies.
       The Senate amendment contained a provision (sec. 1631) that 
     would require the Secretary of Defense, in consultation with 
     the Secretary of Veterans Affairs, to submit to the 
     congressional defense committees comprehensive plans for 
     programs and activities of the Department of Defense to 
     prevent, diagnose, mitigate, treat, and otherwise respond to 
     traumatic brain injury and PTSD in members of the armed 
     forces.
       The House recedes with a clarifying amendment that would 
     include in the plan a requirement to incorporate into 
     training, combat theater operations, and post-deployment 
     service evidence-based preventive and early-intervention 
     measures, practices, or procedures that reduce the likelihood 
     that personnel in combat will develop PTSD or other stress-
     related conditions.

    Subtitle B--Centers of Excellence in the Prevention, Diagnosis, 
 Mitigation, Treatment, and Rehabilitation of Traumatic Brain Injury, 
            Post-Traumatic Stress Disorder, and Eye Injuries

     Center of excellence in the prevention, diagnosis, 
         mitigation, treatment, and rehabilitation of traumatic 
         brain injury (sec. 1621)
       The Senate amendment contained a provision (sec. 1633(a)) 
     that would require the Secretary of Defense to establish a 
     center of excellence in the prevention, diagnosis, 
     mitigation, treatment, and rehabilitation of traumatic brain 
     injury (TBI), including mild, moderate, and severe TBI. The 
     amendment would ensure collaboration to the maximum extent 
     practicable with the Department of Veterans Affairs and other 
     appropriate public and private entities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     the center would be responsible for implementation of the 
     elements of the comprehensive plan required by section 1631 
     of this Act that relate to traumatic brain injury.
     Center of excellence in prevention, diagnosis, mitigation, 
         treatment, and rehabilitation of post-traumatic stress 
         disorder and other mental health conditions (sec. 1622)
       The Senate amendment contained a provision (sec. 1633(b)) 
     that would require the Secretary of Defense to establish a 
     center of excellence in the prevention, diagnosis, 
     mitigation, treatment, and rehabilitation of post-traumatic 
     stress disorder (PTSD), including mild, moderate, and severe 
     PTSD. The amendment would require collaboration with the 
     National Center for Post-Traumatic Stress Disorder of the 
     Department of Veterans Affairs, institutions of higher 
     learning, and other appropriate public and private entities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     the center shall also address other mental health conditions 
     and would be responsible for implementation of elements of 
     the comprehensive plan required by section 1631 of this Act 
     that relate to PTSD and other mental health conditions.
     Center of excellence in prevention, diagnosis, mitigation, 
         treatment, and rehabilitation of military eye injuries 
         (sec. 1623)
       The Senate amendment contained a provision (sec. 710) that 
     would require the Secretary of Defense to establish a center 
     of excellence in the prevention, diagnosis, mitigation, 
     treatment, and rehabilitation of military eye injuries. The 
     amendment would require collaboration with the Department of 
     Veterans Affairs and establishment of a military eye injury 
     registry.
       The House bill contained no similar provision.
       The House recedes with several clarifying amendments.
     Report on establishment of centers of excellence (sec. 1624)
       The Senate amendment contained two provisions (secs. 710 
     and 1633) that would require the Secretary of Defense to 
     establish centers of excellence for traumatic brain injury, 
     post-traumatic stress disorder, and military eye injuries.
       The House bill contained no similar provisions.
       The House recedes with an amendment that would require the 
     Secretary of Defense to submit a report to Congress no later 
     than 180 days after the date of enactment of this Act on the 
     establishment of the centers of excellence as required 
     elsewhere in this conference report.

                    Subtitle C--Health Care Matters

     Medical care and other benefits for members and former 
         members of the armed forces with severe injuries or 
         illnesses (sec. 1631)
       The Senate amendment contained a provision (sec. 1621) that 
     would authorize medical benefits equivalent to those 
     available to members on active duty for members and former 
     members of the armed forces with severe injuries or illnesses 
     and who may also be eligible for health and disability 
     benefits from the Department of Veterans Affairs (VA) during 
     the 3 years from the date of injury or illness or date of 
     enactment of this Act, whichever is later. The amendment 
     would also authorize a service member with a severe injury or 
     illness to receive rehabilitation and vocational benefits 
     from the VA in the same manner that the Secretary of Veterans 
     Affairs provides medical care to members of the armed forces 
     receiving care in medical facilities of the VA.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to provide any former service member 
     with a severe injury or illness the same medical and dental 
     care as an active duty service member when such care is not 
     reasonably available from the VA. The amendment

[[Page 33089]]

     would also authorize a member of the armed forces with a 
     severe injury or illness to receive benefits (including 
     rehabilitation and vocational benefits, but not compensation) 
     from the VA. Both authorities would expire on December 31, 
     2012.
       Senior Department of Defense officials have acknowledged 
     that the health care benefit for service members on active 
     duty includes limited health care benefits that are not 
     available to service members in a retired status. This has 
     created an incentive for some seriously wounded service 
     members to remain on active duty solely for the increased 
     medical benefit. The conferees intend that this provision 
     would be implemented by the Secretary of Defense in a manner 
     that will ensure that severely wounded or ill service members 
     who are medically retired experience no gap in health care 
     coverage due to lack of reasonably available capacity of the 
     Veterans Health Administration or any limitation in current 
     health care benefits required by the member.
     Reimbursement of travel expenses of retired members with 
         combat-related disabilities for follow-on specialty care, 
         services, and supplies (sec. 1632)
       The Senate amendment contained a provision (sec. 1622) that 
     would require the Secretary of Defense to provide 
     reimbursement for reasonable travel expenses for follow-on 
     specialty care at a military treatment facility more than 100 
     miles from where the member resides for a service member and 
     any eligible accompanying family member when the member has 
     incurred a combat-related disability and is entitled to 
     retired or retainer pay, or equivalent pay.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to implement an outreach program for such members 
     in order to ensure that eligible members are medically 
     monitored and receiving travel reimbursement for specialty 
     care when necessary.
     Respite care and other extended care benefits for members of 
         the uniformed services who incur a serious injury or 
         illness on active duty (sec. 1633)
       The Senate amendment contained a provision (sec. 1627) that 
     would amend section 1079(d) of title 10, United States Code, 
     to provide that the program of extended benefits would 
     include extended benefits, including respite care, for the 
     primary caregivers of members of the uniformed services who 
     incur a serious injury or illness on active duty.
       The House bill contained no similar provision.
       The House recedes with an amendment that would amend 
     section 1074(c) of title 10, United States Code, to authorize 
     extended benefits to members of the uniformed services who 
     incur a serious injury or illness on active duty in a manner 
     consistent with extended health care benefits authorized for 
     eligible dependents in sections 1079(d) and (c) of title 10, 
     United States Code.
     Reports (sec. 1634)
       The Senate amendment contained a provision (sec. 1636) that 
     would require the Secretary of Defense, not later than 90 
     days after the date of enactment of this Act, to submit to 
     the congressional defense committees a report describing the 
     progress in completing studies and reports on: (1) a 
     longitudinal study on traumatic brain injury incurred by 
     members of the armed forces in Operation Iraqi Freedom and 
     Operation Enduring Freedom; (2) enhanced mental health 
     screening and services for members of the armed forces; and 
     (3) pilot projects on early diagnosis and treatment of post-
     traumatic stress disorder and other mental health conditions. 
     The provision would also require annual reports on 
     expenditures for activities on traumatic brain injury and 
     post-traumatic stress disorder.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require a 
     report on the longitudinal study on traumatic brain injury 
     and the pilot projects on early diagnosis and treatment of 
     post-traumatic stress disorder and other mental health 
     conditions, and would require annual reports on expenditures 
     for activities on traumatic brain injury and post-traumatic 
     stress disorder.
     Fully interoperable electronic personal health information 
         for the Department of Defense and Department of Veterans 
         Affairs (sec. 1635)
       The House bill contained a provision (sec. 1421(c)) that 
     would require the Secretary of Defense and the Secretary of 
     Veterans Affairs to jointly establish and implement a process 
     to ensure an interoperable, bi-directional, real-time 
     exchange of critical medical information.
       The Senate amendment contained a provision (sec. 1641) that 
     would require the Secretary of Defense and the Secretary of 
     Veterans Affairs to jointly develop and implement a joint 
     electronic health record and accelerate the exchange of 
     health care information between the Department of Defense and 
     the Department of Veterans Affairs. The amendment would also 
     establish a Department of Defense-Department of Veterans 
     Affairs interagency program office for a joint electronic 
     health record.
       The House recedes with an amendment that would require the 
     Secretary of Defense and the Secretary of Veterans Affairs to 
     jointly develop and implement electronic health record 
     systems or capabilities that would allow for full 
     interoperability of personal health care information between 
     the Department of Defense and the Department of Veterans 
     Affairs, and would modify elements of the Department of 
     Defense-Department of Veterans Affairs interagency program 
     office.
     Enhanced personnel authorities for the Department of Defense 
         for health care professionals for care and treatment of 
         wounded and injured members of the armed forces (sec. 
         1636)
       The Senate amendment contained a provision (sec. 1642) that 
     would amend section 1599c of title 10, United States Code, to 
     authorize the Secretary of Defense to exercise any authority 
     for the appointment and pay of health care personnel under 
     chapter 74 of title 38, United States Code, for purposes of 
     recruitment, employment, and retention of civilian health 
     care professionals for the Department of Defense, and to 
     require the service secretaries to develop and implement a 
     strategy to disseminate the authorities and best practices 
     for the recruitment of medical and health professionals.
       The House bill contained no similar provision.
       The House recedes with an amendment that would terminate 
     the authority of the Secretary of Defense to exercise the 
     authorities available under chapter 74 of title 38 on 
     September 30, 2010.
     Continuation of transitional health benefits for members of 
         the armed forces pending resolution of service-related 
         medical conditions (sec. 1637)
       The Senate amendment contained a provision (sec. 716) that 
     would authorize a service member entitled to transitional 
     health care benefits under section 1145 of title 10, United 
     States Code, to receive medical and dental care for a 
     specific medical condition related to the member's military 
     service as if the member were an active duty member until the 
     condition is resolved.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     service-related medical condition to be identified during the 
     member's 6 month transition period, and would provide health 
     care for such condition as if the member were still on active 
     duty for 6 months following the diagnosis of the condition.

                     Subtitle D--Disability Matters

     Utilization of veterans' presumption of sound condition in 
         establishing eligibility of members of the armed forces 
         for retirement for disability (sec. 1641)
       The Senate amendment contained a provision (sec. 1651) that 
     would amend sections 1201 and 1203 of title 10, United States 
     Code, to establish a presumption that a disability is 
     incurred while on active duty for a service member with 6 
     months or more of active military service whose disability 
     was not noted at the time of the member's entrance on active 
     duty, unless compelling evidence or medical judgment is such 
     to warrant a finding that the disability existed before the 
     member's entrance on active duty.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that section 1207a of title 10, United 
     States Code, which provides that disabilities of service 
     members with at least 8 years of active service will be 
     deemed to have been incurred while on active duty, remains in 
     effect.
     Requirements and limitations on Department of Defense 
         determinations of disability with respect to members of 
         the armed forces (sec. 1642)
       The Senate amendment contained a provision (sec. 1652) that 
     would amend chapter 61 of title 10, United States Code, to 
     require the Secretary of Defense to utilize, to the extent 
     feasible, the schedule for rating disabilities in use by the 
     Department of Veterans Affairs, including any applicable 
     interpretation of the schedule by the United States Court for 
     Veterans Claims and would require the Secretary, when making 
     a determination of a disability rating, to take into account 
     all medical conditions, whether individually or collectively, 
     that render a member unfit to perform the duties of the 
     member's office, grade, rank, or rating.
       The House bill contained no similar provision.
       The House recedes.
     Review of separation of members of the armed forces separated 
         from service with a disability rating of 20 percent 
         disabled or less (sec. 1643)
       The Senate amendment contained a provision (sec. 1653) that 
     would amend chapter 79 of title 10, United States Code, to 
     require the Secretary of Defense to establish a board to 
     review the cases of former service members who were separated 
     with disability ratings of 20 percent or less and to 
     authorize the secretary concerned to correct the military

[[Page 33090]]

     records of the former member in accordance with the 
     recommendation of the board.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     board to notify the former member, or the former member's 
     surviving spouse, next of kin, or legal representative, that 
     consideration of the former member's case by the board, 
     whether in response to a request or self-generated by the 
     board, will preclude further consideration of the former 
     member's case by the Board for Correction of Military 
     Records.
       The conferees believe that the recommendation of the 
     Veterans' Disability Benefits Commission in its report of 
     October 3, 2007, to reassess the ratings of service members 
     who were discharged as unfit but given low ratings should be 
     implemented. The Commission's analysis of service disability 
     ratings from 2000 to 2006 set forth in chapter V of its 
     report reflected disturbing and ``counterintuitive'' 
     differences between the Army and Marine Corps and the Navy 
     and Air Force that must be addressed. The conferees expect 
     the Secretary of Defense to ensure that cases before the 
     Physical Disability Board of Review receive equitable ratings 
     as recommended by the Commission.
     Authorization of pilot programs to improve disability 
         evaluation system for members of the armed forces (sec. 
         1644)
       The Senate amendment contained a provision (sec. 1654) that 
     would require the Secretary of Defense to carry out three 
     pilot programs and authorize the Secretary to carry out 
     additional pilot programs with respect to the disability 
     evaluation system of the Department of Defense (DOD). The 
     required pilot programs would include use of a disability 
     rating assigned by the Department of Veterans Affairs (VA), 
     use of a joint DOD/VA assigned disability rating, and use of 
     a single Internet Web site for the DOD disability system.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to establish and conduct pilot 
     programs with respect to the disability evaluation system of 
     the Department of Defense for the evaluation of the 
     disabilities of members of the armed forces who are being 
     separated or retired from the armed forces for disability 
     under chapter 61, United States Code.
     Reports on Army Medical Action Plan in response to 
         deficiencies in the Army physical disability evaluation 
         system (sec. 1645)
       The Senate amendment contained a provision (sec. 1655) that 
     would require the Secretary of Defense to report to the 
     congressional defense committees on the implementation of 
     corrective measures by the Department of Defense with respect 
     to the Physical Disability Evaluation System in response to 
     several different reports.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     reports to be submitted by June 1, 2008 and June 1, 2009.
     Enhancement of disability severance pay for Members of the 
         armed forces (sec. 1646)
       The Senate amendment contained a provision (sec. 1661) that 
     would amend section 1212 of title 10, United States Code, to 
     increase the minimum severance pay to 12 month's basic pay 
     for service members separated for a disability incurred in a 
     combat zone and 6 month's basic pay for other members, and 
     increasing the maximum severance pay from 24 month's basic 
     pay to 38 month's basic pay. The provision would also remove 
     the requirement that severance pay received by members for a 
     disability incurred in a combat zone be deducted from 
     disability compensation received from the Department of 
     Veterans Affairs.
       The House bill contained no similar provision.
       The House recedes.
     Assessments of continuing utility and future role of 
         temporary disability retired list (sec. 1647)
       The House bill contained a provision (sec. 1420) that would 
     amend section 1210(e) of title 10, United States Code, to 
     require that a service member's medical condition be 
     permanent and stable before the service member can be removed 
     from the temporary disabled retired list (TDRL).
       The Senate amendment contained a provision (sec. 1663) that 
     would require the Secretary of Defense and the Comptroller 
     General of the United States to submit a report to the 
     congressional defense committees assessing the continuing 
     utility of the TDRL.
       The House recedes with an amendment that would require the 
     Secretary of Defense to submit to the congressional defense 
     committees, no later than 180 days after the date of 
     enactment of this Act, a report containing a statistical 
     history regarding the TDRL and an assessment of: (1) the 
     continuing utility of the TDRL; (2) the need to require that 
     the condition of a member be permanent and stable before the 
     member is separated with less than a 30 percent disability 
     rating; and (3) the future role of the TDRL in the disability 
     evaluation system of the Department of Defense and the 
     changes in policy and law required to fulfill the future role 
     of the TDRL.
     Standards for military medical treatment facilities, 
         specialty medical care facilities, and military quarters 
         housing patients and annual report on such facilities 
         (sec. 1648)
       The House bill contained a provision (sec. 1431) that would 
     require the Secretary of Defense to submit an annual report 
     beginning with the budget submission for fiscal year 2009 on 
     the adequacy, suitability, and quality of military medical 
     facilities and medical-related support facilities. This 
     section would also require that the report include any 
     facility deficiencies and accompanying response plans 
     identified through the toll-free hot line made available to 
     service members and families residing in medical-related 
     support facilities.
       The Senate amendment contained a provision (sec. 1671) that 
     would require the Secretary to establish standards for 
     medical treatment facilities and quarters or leased housing 
     for patients, and to set a deadline for compliance with such 
     standards. The amendment would also require a report to the 
     congressional defense committees on actions taken to meet 
     these standards.
       The House recedes with an amendment that would combine the 
     annual report and the requirement to establish standards.
     Reports on Army Medical Action Plan in response to 
         deficiencies identified at Walter Reed Army Medical 
         Center (sec. 1649)
       The Senate amendment contained a provision (sec. 1672) that 
     would require the Secretary of Defense to submit reports to 
     the congressional defense committees on the implementation of 
     the action plan of the Army to correct deficiencies 
     identified in the condition of facilities, and in the 
     administration of outpatients in medical hold or medical 
     holdover status, at Walter Reed Army Medical Center and at 
     other applicable Army installations.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to submit to the congressional defense 
     committees a report no later than 30 days after the date of 
     enactment of this Act, and every 180 days thereafter until 
     March 1, 2009, on the implementation of the Army Medical 
     Action Plan to correct deficiencies identified in the 
     condition of facilities and patient administration.
     Required certifications in connection with closure of Walter 
         Reed Army Medical Center, District of Columbia (sec. 
         1650)
       The Senate amendment contained a provision (sec. 1673) that 
     would require the Secretary of Defense to submit to the 
     congressional defense committees no later than 90 days after 
     enactment of this Act certain certifications regarding the 
     closure of Walter Reed Army Medical Center, District of 
     Columbia. The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Handbook for members of the armed forces on compensation and 
         benefits available for serious injuries and illnesses 
         (sec. 1651)
       The Senate amendment contained a provision (sec. 1681) that 
     would require the Secretary of Defense to develop and 
     maintain, in handbook and electronic form, a comprehensive 
     description of the compensation and other benefits to which a 
     service member and their family would be entitled when the 
     member separates or retires from the armed forces. The 
     Secretary of Defense would be required to do this in 
     consultation with the Secretary of Veterans Affairs, the 
     Secretary of Health and Human Service, and the Commissioner 
     of Social Security.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to develop the handbook and electronic form no 
     later than October 1, 2008.

                    Subtitle E--Studies and Reports

     Study on physical and mental health and other readjustment 
         needs of members and former members of the armed forces 
         who deployed in Operation Iraqi Freedom and Operation 
         Enduring Freedom and their families (sec. 1661)
       The Senate amendment contained a provision (sec. 1691) that 
     would require the Secretary of Defense, in consultation with 
     the Secretary of Veterans Affairs, to enter into an agreement 
     with the National Academy of Sciences for a study on the 
     physical and mental health and other readjustment needs of 
     members and former members of the armed forces who deployed 
     in Operation Iraqi Freedom or Operation Enduring Freedom and 
     their families as a result of such deployment. The amendment 
     would require the Secretary of Defense and the Secretary of 
     Veterans Affairs to develop a joint plan to address the 
     findings and recommendations of the National Academy of 
     Sciences study within 90 days of receiving the report. The 
     amendment would also require the Comptroller General of the 
     United States to submit to Congress a report assessing the 
     Department of Defense-Department of Veterans Affairs plan.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     preliminary phase of the study to be completed not later than 
     1 year after the date of enactment of this Act,

[[Page 33091]]

     and an assessment of gender- and ethnic group-specific needs 
     and concerns. The amendment would also remove the requirement 
     for the review by the Comptroller General of the United 
     States of the Department of Defense-Department of Veterans 
     Affairs plan.
     Access of recovering service members to adequate outpatient 
         residential facilities (sec. 1662)
       The House bill contained a provision (sec. 1432) that would 
     require the Inspectors General of the regional medical 
     commands to conduct semi-annual inspections of facilities 
     housing recovering service members for the first two years 
     following the date of enactment of this Act and annually 
     thereafter. This section would require the inspection results 
     to be coordinated with local and service medical and civilian 
     leadership, reported to the Congress, and posted on the 
     Internet website of the regional medical command.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Study and report on support services for families of 
         recovering service members (sec. 1663)
       The House bill contained a provision (sec. 1434) that would 
     require the Secretary of Defense to conduct a study of the 
     provision of support services for families of recovering 
     service members. The study would include a determination of 
     the types of support services currently provided, a 
     determination of additional types of support services that 
     would be feasible, an estimate of the number of family 
     members to whom the support services would be provided, and a 
     determination of discrimination in employment that family 
     members experience.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     include job placement services as an element of the 
     determination of additional types of support services that 
     would be feasible.
     Report on traumatic brain injury classifications (sec. 1664)
       The House bill contained a provision (sec. 1435) that would 
     require the Secretary of Defense to submit to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives an interim report not later than 90 days 
     after enactment of this Act describing the changes undertaken 
     within the Department of Defense to ensure that traumatic 
     brain injury victims receive a proper medical designation 
     concomitant with their injury, and a final report not later 
     than 180 days after the date of enactment of this Act 
     concerning traumatic brain injury classification.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense and the Secretary of Veterans Affairs to 
     jointly submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report describing 
     the changes undertaken within the Department of Defense and 
     the Department of Veterans Affairs to ensure that traumatic 
     brain injury victims receive a medical designation 
     concomitant with their injury rather than a medical 
     designation that assigns a generic classification (such as 
     ``organic psychiatric disorder''). The report would be due 
     not later than 90 days after the date of enactment of this 
     Act.
     Evaluation of the Polytrauma Liaison Officer/Non-Commissioned 
         Officer Program (sec. 1665)
       The House bill contained a provision (sec. 1436) that would 
     require the Secretary of Defense to conduct an evaluation of 
     the Polytrauma Liaison Officer/Non-Commissioned Officer 
     program, operated by the military departments and the 
     Department of Veterans Affairs, to assist the transition of 
     members from the Department of Defense health care system to 
     the Department of Veterans Affairs system. The Secretary of 
     Defense would be required to submit a report to Congress 
     containing the results of the evaluation and recommendations 
     for improvement not later than 90 days after the date of 
     enactment of this Act.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                       Subtitle F--Other Matters

     Prohibition on transfer of resources from medical care (sec. 
         1671)
       The House bill contained a provision (sec. 1452) that would 
     prohibit the transfer of funds or personnel from medical care 
     functions within the Department of Defense to support the 
     administrative requirements imposed by this Act.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Medical care for families of members of the armed forces 
         recovering from serious injuries or illnesses (sec. 1672)
       The Senate amendment contained a provision (sec. 1626) that 
     would authorize medical care on a space available basis at 
     military medical treatment facilities or medical facilities 
     of the Department of Veterans Affairs for certain family 
     members caring for service members in a medical hold or 
     holdover status or on the temporary disability retired list. 
     Family members must be on invitational travel orders, a non-
     medical attendee caring for certain injured service members, 
     or receiving per diem while caring for certain injured 
     service members. The provision would also authorize job 
     placement services for family members on invitational travel 
     orders or non-medical attendees caring for certain injured 
     service members for more than 45 days during a 1-year period, 
     and require the Secretary of Defense to submit to the 
     congressional defense committees a report on the need for 
     additional employment services and protections for certain 
     family members who are placed on leave from employment or 
     otherwise displaced from employment while caring for an 
     injured service member.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     authorize medical care on a space available basis at military 
     medical treatment facilities or medical facilities of the 
     Department of Veterans Affairs for certain family members not 
     otherwise eligible for medical care who are caring for a 
     recovering service member. Job placement services and the 
     report on the need for additional services are contained 
     elsewhere in this conference report.
     Improvement of medical tracking system for members of the 
         armed forces deployed overseas (sec. 1673)
       The House bill contained a provision (sec. 711) that would 
     require the Secretary of Defense to establish a computer-
     based program that assesses the cognitive functioning, in a 
     pre- and post-deployment environment, of all members of the 
     armed forces who are deployed in support of the global war on 
     terror, including Operation Iraqi Freedom and Operation 
     Enduring Freedom.
       The Senate amendment contained a provision (sec. 1632) that 
     would amend section 1074f of title 10, United States Code, to 
     require the Secretary of Defense to establish a protocol for 
     the pre-deployment assessment and documentation of the 
     cognitive functioning of a member who is deployed outside the 
     United States in order to facilitate the assessment of the 
     post-deployment cognitive functioning of the member. The 
     amendment would require the Secretary to conduct up to three 
     pilot projects to evaluate various mechanisms for use in the 
     protocol, and to establish a means to implement any mechanism 
     that is selected for incorporation in the protocol not later 
     than 180 days after completion of the pilot projects.
       The House recedes with an amendment to clarify the 
     characteristics of a computer-based assessment tool to be 
     evaluated under the pilot projects.
     Guaranteed funding for Walter Reed Army Medical Center, 
         District of Columbia (sec. 1674)
       The House bill contained a provision (sec. 712) that would 
     require that the amount of funds available for the commander 
     of Walter Reed Army Medical Center shall not be less than the 
     amount expended in fiscal year 2006 until the first fiscal 
     year beginning after the date on which the Secretary of 
     Defense certifies to the Committees on Armed Services of the 
     Senate and the House of Representatives that the expanded 
     facilities at the National Naval Medical Center and DeWitt 
     Army Community Hospital are completed, equipped, and staffed 
     with sufficient capacity to accept and provide at least the 
     same level of care as patients received at Walter Reed Army 
     Medical Center during fiscal year 2006.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that the amount of funds available shall not be less than the 
     amount expended by the commander of Walter Reed Army Medical 
     Center in fiscal year 2006 until the first fiscal year 
     beginning after the date on which the Secretary of Defense 
     submits to the congressional defense committees a plan for 
     the provision of health care for military beneficiaries and 
     their dependents in the National Capital Region. After 
     submission of this plan, the amendment would require the 
     Secretary to certify to the congressional defense committees 
     on a quarterly basis that patients, staff, bed capacity, 
     functions, or parts of functions at Walter Reed Army Medical 
     Center have not been moved or disestablished until the 
     expanded facilities at the National Naval Medical Center and 
     DeWitt Army Community Hospital are completed, equipped, and 
     staffed with sufficient capacity to accept and provide, at a 
     minimum, the same level of and access to care as patients 
     received at Walter Reed Army Medical Center during fiscal 
     year 2006.
     Use of leave transfer program by wounded veterans who are 
         federal employees (sec. 1675)
       The House bill contained a provision (sec. 1110) that would 
     allow federal employees who sustain a combat-related injury 
     while on active duty to accept donated leave without having 
     to deplete their own leave allocations while they are 
     undergoing medical treatment for the disability, for up to 5 
     years.
       The Senate amendment contained no similar provision.

[[Page 33092]]

       The Senate recedes with a technical amendment.
     Moratorium on conversion to contractor performance of 
         Department of Defense functions at military medical 
         facilities (sec. 1676)
       The House bill contained a provision (sec. 1451) that 
     would: (1) prohibit the Department of Defense from initiating 
     any new public-private competitions for the performance of 
     functions at military medical facilities for a period of 1 
     year; and (2) require the Secretary of Defense to report to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives on public-private competitions currently 
     being carried out at such facilities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment prohibiting the 
     Department of Defense from initiating any new public-private 
     competitions for the performance of functions at military 
     medical facilities until the Secretary: (1) certifies that 
     appropriate steps have been taken to ensure that such 
     competitions will not have an adverse impact on the quality 
     of military medical care; and (2) submits the required 
     report.

                   Legislative Provisions Not Adopted

     Establishment of medical support fund for support of members 
         of the armed forces returning to military service or 
         civilian life
       The House bill contained a provision (sec. 1422) that would 
     require the establishment of a medical support fund on the 
     books of the Treasury to support programs and activities 
     relating to the medical treatment, care, rehabilitation, 
     recovery, and support of wounded and injured service members 
     and their families, and authorized $50.0 million for the 
     fund.
       The Senate amendment contained no similar provision.
       The House recedes.
     Funding for improved diagnosis, treatment, and rehabilitation 
         of members of the armed forces with traumatic brain 
         injury or post-traumatic stress disorder
       The Senate amendment contained a provision (sec. 1635) that 
     would authorize $50.0 million for activities relating to the 
     improved diagnosis, treatment, and rehabilitation of members 
     of the armed forces with traumatic brain injury or post-
     traumatic stress disorder. Of that amount, $17.0 million 
     would be available for the Defense and Veterans Brain Injury 
     Center of the Department of Defense.
       The Senate recedes.
       The conference outcome is reflected in the tables of this 
     report.
     Personnel shortages in the mental health workforce of the 
         Department of Defense, including personnel in the mental 
         health workforce
       The Senate amendment contained a provision (sec. 1643) that 
     would require the Secretary of Defense to submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives a report setting forth the recommendations of 
     the Secretary for such legislative or administrative actions 
     as the Secretary considers appropriate to address shortages 
     in health care professionals within the Department of 
     Defense, including personnel in the mental health workforce. 
     The amendment would also require the Secretary to implement, 
     not later than 180 days after the date of enactment of this 
     Act, programs to recruit qualified individuals in health care 
     fields (including mental health) to serve in the armed 
     forces.
       The House bill contained no similar provision.
       The Senate recedes.
       The conference agreement includes a requirement for the 
     Secretary of Defense to report on implementation of the 
     recommendations of the Department of Defense Task Force on 
     Mental Health, which include improving access to mental 
     health services by increasing the number of mental health 
     personnel.
     Pilot program to establish an Army Wounded Warrior battalion 
         at an appropriate active duty base
       The House bill contained a provision (sec. 1419) that would 
     require the Secretary of the Army to establish a pilot 
     program, known as the Army Wounded Warrior Program, based on 
     the Wounded Warrior Regiment program of the Marine Corps.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferrees are aware that the Army has already 
     established Warrior Transition Units that are similar in 
     function to the Marine Wounded Warrior Regiment program.
     Oversight Board for Wounded Warriors
       The House bill contained a provision (sec. 1423) that would 
     require the establishment of a 12 member board to be known as 
     the Oversight Board for Wounded Warriors to provide oversight 
     of medical care, quality of life, administrative processing, 
     and family programs supporting wounded warriors and to 
     provide advice and counsel to Congress and the Department of 
     Defense about how the programs can be made more efficient and 
     effective.
       The Senate amendment contained no similar provision.
       The House recedes.

                      TITLE XVII--VETERANS MATTERS

                     Legislative Provisions Adopted

     Sense of Congress on Department of Veterans Affairs efforts 
         in the rehabilitation and reintegration of veterans with 
         traumatic brain injury (sec. 1701)
       The Senate amendment contained a provision (sec. 1701) that 
     would express the sense of Congress that:
       (1) the Department of Veterans Affairs is a leader in the 
     field of traumatic brain injury and coordination of such 
     care;
       (2) the Department of Veterans Affairs should have the 
     capacity and expertise to provide veterans who have traumatic 
     brain injury with patient-centered health care, 
     rehabilitation, and community integration services that are 
     comparable to or exceed similar care and services available 
     to persons with such injuries in the academic and private 
     sector;
       (3) rehabilitation for veterans who have a traumatic brain 
     injury should be individualized, comprehensive, and 
     interdisciplinary with the goals of optimizing the 
     independence of such veterans and reintegrating them into 
     their communities;
       (4) family support is integral to the rehabilitation and 
     community reintegration of veterans who have sustained a 
     traumatic brain injury, and the Department should provide the 
     families of such veterans with education and support;
       (5) the Department of Defense and the Department of 
     Veterans Affairs have made efforts to provide a smooth 
     transition of medical care and rehabilitative services to 
     individuals as they transition from the health care system of 
     the Department of Defense to that of the Department of 
     Veterans Affairs, but more can be done to assist veterans and 
     their families in the continuum of the rehabilitation, 
     recovery, and reintegration of wounded or injured veterans 
     into their communities;
       (6) in planning for rehabilitation and community 
     reintegration of veterans who have a traumatic brain injury, 
     it is necessary for the Department of Veterans Affairs to 
     provide a system for life-long case management for such 
     veterans; and
       (7) in such a system for life-long case management, it is 
     necessary to conduct outreach and to tailor specialized 
     traumatic brain injury case management and outreach for the 
     unique needs of veterans with traumatic brain injury who 
     reside in urban and non-urban settings.
       The House bill contained no similar provision.
       The House recedes.
     Individual rehabilitation and community reintegration plans 
         for veterans and others with traumatic brain injury (sec. 
         1702)
       The Senate amendment contained a provision (sec. 1702) that 
     would amend subchapter II of chapter 17 of title 38, United 
     States Code, to require the Secretary of Veterans Affairs to 
     develop an individualized rehabilitation and reintegration 
     plan for each veteran or member of the armed forces who 
     receives inpatient or outpatient rehabilitation care from the 
     Department of Veterans Affairs (VA) for a traumatic brain 
     injury and to provide the plan in writing to the veteran or 
     service member before discharge from inpatient care.
       The House bill contained no similar provision.
       The House recedes with an amendment that would add a 
     requirement for the Secretary to develop and carry out a 
     comprehensive program of long-term care for post-acute 
     traumatic brain injury rehabilitation at each VA polytrauma 
     center. The program would include residential, community, and 
     home-based components utilizing interdisciplinary treatment 
     teams.
     Use of non-Department of Veterans Affairs facilities for 
         implementation of rehabilitation and community 
         reintegration plans for traumatic brain injury (sec. 
         1703)
       The Senate amendment contained a provision (sec. 1703) that 
     would amend subchapter II of chapter 17 of title 38, United 
     States Code, to require the Secretary of Veterans Affairs to 
     provide rehabilitative treatment or services at non-
     Department of Veterans Affairs facilities to veterans or 
     members of the armed forces who receive inpatient or 
     outpatient care from the Department of Veterans Affairs (VA) 
     for a traumatic brain injury when the VA is unable to provide 
     treatment or services at the frequency or for the duration 
     prescribed in the individual treatment plans or for whom the 
     Secretary determines that it is optimal with respect to the 
     recovery and rehabilitation of such individual.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary to provide health care and services through 
     cooperative agreements with appropriate public or private 
     entities with expertise in neurobehavioral rehabilitation and 
     recovery programs.
     Research, education, and clinical care program on traumatic 
         brain injury (sec. 1704)
       The Senate amendment contained a provision (sec. 1704) that 
     would amend subchapter II of chapter 73 of title 38, United 
     States

[[Page 33093]]

     Code, to require the Secretary of Veterans Affairs to 
     establish a program on research, education, and clinical care 
     to provide neuro-rehabilitation to veterans with a severe 
     traumatic brain injury, including veterans in a minimally 
     conscious state who would otherwise receive only long-term 
     residential care.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to establish and maintain a registry of names of 
     each individual who: (1) served as a member of the armed 
     forces in Operation Enduring Freedom or Operation Iraqi 
     Freedom; (2) exhibits symptoms associated with traumatic 
     brain injury; (3) applies for care and services from the 
     Department of Veterans Affairs or files a claim for 
     compensation for disability associated with such service; and 
     (4) grants permission to the Secretary to include such 
     information in the registry.
     Pilot program on assisted living services for veterans with 
         traumatic brain injury (sec. 1705)
       The Senate amendment contained a provision (sec. 1705) that 
     would require the Secretary of Veterans Affairs, in 
     collaboration with the Defense and Veterans Brain Injury 
     Center, to carry out a pilot program to assess the 
     effectiveness of providing assisted living services to 
     eligible veterans to enhance the rehabilitation, quality of 
     life, and community integration of such veterans.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Provision of age-appropriate nursing home care (sec. 1706)
       The Senate amendment contained a provision (sec. 1707) that 
     would require the Secretary of Veterans Affairs to ensure 
     that nursing home care provided to young veterans who are 
     injured or disabled through military service and require 
     long-term care is provided in an age-appropriate manner.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Extension of period of eligibility for health care for 
         veterans of combat service during certain periods of 
         hostilities and war (sec. 1707)
       The Senate amendment contained a provision (sec. 1708) that 
     would amend section 1710 of title 38, United States Code, to 
     extend from 2 to 5 years the period of automatic eligibility 
     for health care benefits from the Department of Veterans 
     Affairs (VA) for veterans who served in a combat theater of 
     operations.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 3 
     years of automatic eligibility for health care from the VA 
     for veterans who served in a combat theater of operations and 
     were discharged after 1998, but more than 5 years before the 
     date of enactment of this Act, and who have not enrolled in 
     the health care program of the VA.
     Service-connection and assessments for mental health 
         conditions in veterans (sec. 1708)
       The Senate amendment contained a provision (sec. 1709) that 
     would amend section 1702 of title 38, United States Code, to 
     require the Secretary of Veterans Affairs to provide a 
     preliminary general mental health assessment to certain 
     veterans within 30 days of such a request.
       The House recedes with an amendment that would clarify that 
     an eligible veteran is one who served on active duty in a 
     theater of combat operations during a period of war after the 
     Persian Gulf War, or in combat against a hostile force during 
     a period of hostilities after November 11, 1998.
     Modification of requirements for furnishing outpatient dental 
         services to veterans with service-connected dental 
         conditions or disabilities (sec. 1709)
       The Senate amendment contained a provision (sec. 1710) that 
     would amend section 1712 of title 38, United States Code, to 
     extend from 90 to 180 days after discharge or release from 
     active duty the application period for dental benefits for 
     veterans.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Clarification of purpose of outreach services program of 
         Department of Veterans Affairs (sec. 1710)
       The Senate amendment contained a provision (sec. 1712) that 
     would amend section 6301 of title 38, United States Code, to 
     clarify that the outreach services program of the Department 
     of Veterans Affairs includes members of the reserve 
     components.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Designation of fiduciary or trustee for purposes of Traumatic 
         Servicemembers' Group Life Insurance (sec. 1711)
       The Senate amendment contained a provision (sec. 1071) that 
     would require the Secretary of Defense, in consultation with 
     the Secretary of Veterans Affairs, to develop a form for the 
     designation of a fiduciary to receive the funds distributed 
     under section 1980A of title 38, United States Code, in the 
     case of a service member who is medically incapacitated or 
     experiencing an extended loss of consciousness.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Veterans Affairs, in consultation with the 
     military service secretaries, to develop a process for the 
     designation of a fiduciary or trustee of a member of the 
     uniformed services insured against traumatic injury under 
     section 1980A of title 38, United States Code.

                   Legislative Provisions Not Adopted

     Demonstration program on preventing veterans at risk of 
         homelessness from becoming homeless
       The Senate amendment contained a provision (sec. 1711) that 
     would require the Secretary of Veterans Affairs to carry out 
     a demonstration program for the purpose of: (1) identifying 
     members of the armed forces on active duty who are at risk of 
     becoming homeless after they are discharged or released from 
     active duty; and (2) providing referral, counseling, and 
     supportive services, as appropriate, to help prevent such 
     members, upon becoming veterans, from becoming homeless.
       The House bill contained no similar provision.
       The Senate recedes.
     Increase in physicians at hospitals of the Department of 
         Veterans Affairs
       The House bill contained a provision (sec. 1453) that would 
     require the Secretary of Veterans Affairs to increase the 
     number of resident physicians at hospitals of the Department 
     of Veterans Affairs.
       The Senate amendment contained no similar provision.
       The House recedes.
     Research on traumatic brain injury
       The Senate amendment contained a provision (sec. 1706) that 
     would require the Secretary of Veterans Affairs, when 
     carrying out certain research programs and activities, to 
     ensure that such programs and activities include research on 
     the sequelae of mild to severe forms of traumatic brain 
     injury.
       The House bill contained no similar provision.
       The Senate recedes.
     Study and report of waiting periods for appointments at 
         Department of Veterans Affairs medical facilities
       The House bill contained a provision (sec. 1438) that would 
     require the Secretary of Veterans Affairs to conduct a study 
     on the average length of time between the desired date for 
     which a veteran seeks to schedule an appointment for health 
     care at a Department of Veterans Affairs medical facility and 
     the date on which such appointment is completed.
       The Senate amendment contained no similar provision.
       The House recedes.

     TITLE XVIII--NATIONAL GUARD BUREAU MATTERS AND RELATED MATTERS

     Short title (sec. 1801)
       The House bill contained a provision (sec. 1601) that would 
     provide that this title may be cited as the ``National Guard 
     Empowerment Act''.
       The Senate amendment contained a provision (sec. 1801) that 
     would provide that this title may be cited as the ``National 
     Guard Empowerment Act of 2007''.
       The House recedes.

                   Subtitle A--National Guard Bureau

     Appointment, grade, duties, and retirement of the Chief of 
         the National Guard Bureau (sec. 1811)
       The House bill contained a provision (sec. 1611) that would 
     amend section 10502 of title 10, United States Code, to 
     require that an officer appointed as the Chief of the 
     National Guard Bureau (CNGB) serve in the grade of general 
     and be the principal advisor to the Secretary of Defense, 
     through the Chairman of the Joint Chiefs of Staff (CJCS), on 
     National Guard matters. The provision would also designate 
     the CNGB as an advisor on National Guard matters to the 
     commanders of the United States Northern Command and to the 
     Secretary of Homeland Security. Additionally, the provision 
     would describe the appointment process by which officers 
     would be recommended to the President for appointment as 
     CNGB.
       The Senate amendment contained similar provisions (secs. 
     533 and 1802(b)) that would establish additional criteria for 
     appointment of CNGB in the grade of general, repeal the age 
     64 limitation on service of an officer serving as CNGB, 
     designate the CNGB as an advisor to the Secretary of Defense 
     through the CJCS on matters involving non-federalized 
     National Guard forces and on other matters as determined by 
     the Secretary of Defense, and authorize the President to 
     defer the retirement of an officer serving as CNGB until the 
     first day of the month following the month in which the 
     officer becomes 68 years of age.
       The House recedes with an amendment that would designate 
     the CNGB as a principal advisor to the Secretary of Defense, 
     through CJCS, on matters involving non-federalized National 
     Guard forces and on other matters as determined by the 
     Secretary of Defense. The CNGB would also serve as principal 
     advisor to the Secretary and Chief of

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     Staff of the Army and the Secretary and Chief of Staff of the 
     Air Force on matters relating to the National Guard, the Army 
     National Guard of the United States, and the Air National 
     Guard of the United States. The amendment would also delete 
     as unnecessary the provision relating to the deferral of 
     retirement by the CNGB in view of the revisions contained 
     elsewhere in this conference report.
     Establishment of National Guard Bureau as joint activity of 
         Department of Defense (sec. 1812)
       The House bill contained a provision (sec. 1612) that would 
     amend section 10501 of title 10, United States Code, to 
     establish the National Guard Bureau (NGB) as a joint activity 
     of the Department of Defense, and would amend chapter 1011 of 
     title 10, United States Code, to require that the manpower 
     requirements of the NGB as a joint activity of the Department 
     of Defense be determined in accordance with regulations 
     prescribed by the Secretary of Defense, in consultation with 
     the Chairman of the Joint Chiefs of Staff.
       The Senate amendment contained a similar provision (sec 
     1802(a)).
       The Senate recedes.
       The conferees concur with the views and recommendations of 
     the Commission on the National Guard and Reserves as set 
     forth in its report of March 1, 2007, with respect to the 
     designation of the NGB as a joint activity. Specifically, 
     this statutory amendment is intended to reflect the structure 
     of the NGB and should not result in any change in the day-to-
     day relationship between the Chief of the NGB and the 
     Secretaries of the Army and Air Force and their respective 
     staffs. The conferees encourage the Secretary of Defense to 
     modify the charter of the NGB accordingly and to consult with 
     the Secretary of the Army and the Secretary of the Air Force, 
     as well as the Chairman of the Joint Chiefs of Staff, in 
     developing regulations to determine the manpower requirements 
     of the NGB.
     Enhancement of functions of National Guard Bureau (sec. 1813)
       The House bill contained a provision (sec. 1613) that would 
     amend section 10503 of title 10, United States Code, to 
     expand the National Guard Bureau (NGB) charter to include 
     facilitation and coordination with other federal agencies, 
     the adjutants general of the States, United States Northern 
     Command, and United States Joint Forces Command on the use of 
     National Guard personnel and resources in the conduct of 
     operations under title 32 of the United States Code, or in 
     support of State missions, and would require the Secretary of 
     Defense, in consultation with the Secretary of the Army and 
     Secretary of the Air Force, to develop the charter for the 
     NGB.
       The House bill contained another provision (sec. 1616) that 
     would make conforming and clerical amendments regarding 
     section 10503 of title 10, United States Code.
       The Senate amendment contained similar provisions (secs. 
     532 and 1802(c)).
       The Senate recedes with an amendment that would expand the 
     NGB charter to include assisting the Secretary of Defense in 
     facilitating and coordinating with other federal agencies, 
     the adjutants general of the States, United States Northern 
     Command, and United States Joint Forces Command on the use of 
     National Guard personnel and resources in the conduct of 
     operations under title 32 of the United States Code, or in 
     support of State missions.
       The conferees agree with the view of the Commission on the 
     National Guard and Reserves that the charter of the NGB does 
     not reflect some of the NGB's key roles and responsibilities 
     and needs to be updated. The conferees also concur with the 
     Commission that the NGB should continue to report to and work 
     with the Secretaries and Chiefs of Staff of the Army and Air 
     Force in coordinating the use of National Guard units.
     Requirement for Secretary of Defense to prepare plan for 
         response to natural disasters and terrorist events (sec. 
         1814)
       The House bill contained a provision (sec. 1614) that would 
     require the Secretary of Defense to prepare and submit to 
     Congress an annual plan for coordinating the use of the 
     National Guard and members of the armed forces on active duty 
     when responding to natural disasters, acts of terrorism, and 
     other man-made disasters. The Secretary of Defense would be 
     required to prepare and submit the plan to Congress not later 
     than March 1, 2008, and each March 1 thereafter.
       The Senate amendment contained a similar provision (sec. 
     1806).
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to consult with the Secretary of 
     Homeland Security, the Chairman of the Joint Chiefs of Staff, 
     the Commander of the United States Northern Command, and the 
     Chief of the National Guard Bureau in the preparation of the 
     plan, and would require the Secretary of Defense to submit an 
     update of the plan no later than June 1, 2010.
       The conferees urge the Secretary of Defense, as part of the 
     response planning required by this provision, to address the 
     nature of command relationships under which troops will 
     operate during particular contingencies and ensure, as 
     recommended by the Commission on the National Guard and 
     Reserves, that necessary agreements are entered into as soon 
     as practicable.
     Determination of Department of Defense civil support 
         requirements (sec. 1815)
       The House bill contained a provision (sec. 1615) that would 
     require the Secretary of Defense to determine the military-
     unique capabilities needed to be provided by the Department 
     of Defense to support civil authorities in an incident of 
     national significance or a catastrophic incident, and, in 
     coordination with the secretaries of the military departments 
     and the Chairman of the Joint Chiefs of Staff, to develop and 
     implement a plan for providing the necessary funds and 
     resources.
       The Senate amendment contained a provision (sec. 
     1802(b)(3)) that would amend section 10504 of title 10, 
     United States Code, to require the Chief of the National 
     Guard Bureau to submit a report to Congress on the validated 
     requirements for military assistance to civil authorities.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to consult with the Secretary of 
     Homeland Security in determining the required military-unique 
     capabilities.

          Subtitle B--Additional Reserve Component Enhancement

     United States Northern Command (sec. 1821)
       The House bill contained a provision (sec. 1621) that would 
     require the Chairman of the Joint Chiefs of Staff to review 
     the civilian and military positions, job descriptions, and 
     assignments within the United States Northern Command 
     (NORTHCOM). The provision would also require the Secretary of 
     Defense to establish procedures under which an officer who is 
     on active duty or an officer who is on full-time National 
     Guard duty may command mixed-status forces for homeland 
     defense missions, domestic emergency responses, and providing 
     military support to civil authorities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Chairman of the Joint Chiefs of Staff to conduct the manpower 
     review of NORTHCOM with a goal of assessing the feasibility 
     of significantly increasing the number of reserve component 
     members assigned to, and civilians employed by, NORTHCOM who 
     have experience in the planning, training, and employment of 
     forces for homeland defense missions, domestic emergency 
     response, and providing military support to civil 
     authorities.
     Council of Governors (sec. 1822)
       The House bill contained a provision (sec. 1622) that would 
     require the President to establish a bipartisan Council of 
     Governors to advise the Secretary of Defense, the Secretary 
     of Homeland Security, and the White House Homeland Security 
     Council on matters related to the National Guard and civil 
     support missions.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Plan for Reserve Forces Policy Board (sec. 1823)
       The House bill contained a provision (sec. 1623) that would 
     amend section 10301 of title 10, United States Code, to 
     replace the Reserve Forces Policy Board with a Reserve 
     Components Policy Board consisting of 15 members appointed 
     from civilian life by the Secretary of Defense to provide 
     independent advice and recommendations on strategies, 
     policies, and practices designed to improve and enhance the 
     capabilities, efficiency, and effectiveness of the reserve 
     components of the United States.
       The Senate amendment contained a similar provision (sec 
     531).
       The House recedes with an amendment that would require the 
     Secretary of Defense to develop a plan to implement revisions 
     that the Secretary determines necessary in the designation, 
     organization, membership, functions, procedures, and 
     legislative framework of the Reserve Forces Policy Board. The 
     plan must be consistent with the findings, conclusions, and 
     recommendations included in the report of the Commission on 
     the National Guard and Reserves of March 1, 2007, and, to the 
     extent possible, take into account the views and 
     recommendations of civilian and military leaders, past 
     chairmen of the Reserve Forces Policy Board, private 
     organizations with expertise and interest in Department of 
     Defense organization, and other individuals or groups in the 
     discretion of the Secretary.
     High-level positions authorized or required to be held by 
         reserve component general or flag officers (sec. 1824)
       The House bill contained a provision (sec. 1624) that would 
     amend section 526(b)(2) of title 10, United States Code, to 
     increase from 10 to 15 the number of general and flag officer 
     positions on the staffs of the commanders of combatant 
     commands that may be held by reserve component officers. The 
     provision would also require the Chairman of the Joint Chiefs 
     of Staff to designate up to three general and flag officer 
     positions in the grade of lieutenant general or vice admiral 
     that must be held by reserve component officers and provide 
     that one of these positions must be the deputy commander of 
     the combatant command whose geographic area of responsibility 
     includes the United States.
       The Senate amendment contained a provision (sec. 1803) that 
     would express the sense

[[Page 33095]]

     of Congress that, whenever officers are considered for 
     promotion to lieutenant general or vice admiral, qualified 
     officers in the reserve components should be considered for 
     promotion to that grade. The Senate amendment also contained 
     a provision (sec. 1805) that would require that a position of 
     Deputy Commander of United States Northern Command (NORTHCOM) 
     be filled by a qualified officer of the National Guard 
     eligible for promotion to the grade of lieutenant general.
       The Senate recedes with an amendment that would: (1) 
     express the sense of Congress that whenever officers are 
     considered for promotion to lieutenant general or vice 
     admiral, qualified officers in the reserve components should 
     be considered for promotion to that grade; (2) amend section 
     164(e) of title 10, United States Code, to require that at 
     least one deputy commander of NORTHCOM be a National Guard 
     officer who is eligible for promotion to the grade of O-9 
     unless a National Guard officer is the commander of NORTHCOM; 
     and (3) increase from 10 to 15 the number of general and flag 
     officer positions on the staffs of the commanders of 
     combatant commands that may be held by reserve component 
     officers below the grade of lieutenant general or vice 
     admiral.
     Retirement age and years of service limitations on certain 
         reserve general and flag officers (sec. 1825)
       The House bill contained a provision (sec. 1625) that would 
     amend section 14511 of title 10, United States Code, to 
     specify the age at which reserve officers in the rank of 
     general or admiral would be required to retire and limit 
     their total service to 40 years. The provision would also 
     amend section 14512 of title 10, United States Code, to 
     exclude the Chief of the National Guard Bureau from its 
     coverage and to require waiver by the President to allow the 
     Chief of the Navy Reserve or the Commander of the Marine 
     Forces Reserve to serve beyond age 64.
       The Senate amendment contained a provision (sec. 533(e)) 
     that would amend section 14512(a) of title 10, United States 
     Code, to authorize the President to defer until age 68 the 
     retirement of a reserve officer of the Army or Air Force 
     serving as Chief of the National Guard Bureau, Chief of the 
     Army Reserve, Chief of the Air Force Reserve, Director of the 
     Army National Guard, Director of the Air National Guard, an 
     adjutant general, or the commanding general of the troops of 
     a State.
       The Senate recedes with an amendment that would modify 
     section 14511 of title 10, United States Code, to provide 
     that reserve officers in the grade of major general or rear 
     admiral and above must retire at age 64 unless waivers to age 
     66 or 68 are authorized by the Secretary of Defense or the 
     President respectively. The amendment would also modify 
     section 14512 to authorize the Secretary of Defense to defer 
     the retirement until age 66 of the Chief of the Navy Reserve 
     and the Commander of the Marine Forces Reserve.
     Additional reporting requirements relating to National Guard 
         equipment (sec. 1826)
       The House bill contained a provision (sec. 1626) that would 
     amend section 10541 of title 10, United States Code, to add 
     two additional reporting requirements to the annual report to 
     Congress on National Guard and reserve component equipment: 
     (1) a statement of the accuracy of the previous inventory 
     projection, and if the projection was not met, an explanation 
     of why it was not met, and (2) a certification from the Chief 
     of the National Guard Bureau setting forth an inventory for 
     the preceding fiscal year of each item of equipment for which 
     funds were appropriated and which was due to be procured 
     during that fiscal year which has not been received by a 
     National Guard unit as of the close of that fiscal year.
       The Senate amendment contained an identical provision (sec. 
     1807).
       The conference agreement includes this provision.

                   Legislative Provision Not Adopted

     Promotion of reserve officers to lieutenant general grade
       The Senate amendment contained a provision (sec. 1804) that 
     would amend section 10506(a)(3) of title 10, United States 
     Code, to require that service of an officer as adjutant 
     general be treated as joint duty experience, and would 
     require the Secretaries of the Army and Air Force to review 
     and report to the congressional defense committees on the 
     promotion practices of their military departments for the 
     promotion of reserve officers from major general to 
     lieutenant general.
       The House bill contained no similar provision.
       The Senate recedes.

            Division B--Military Construction Authorizations

                              Budget Items

     Summary and explanation of funding tables
       Division B of this Act authorizes funding for military 
     construction projects of the Department of Defense. It 
     includes funding authorizations for the construction and 
     operation of military family housing as well as military 
     construction for the reserve components, the defense 
     agencies, and the North Atlantic Treaty Organization (NATO) 
     Security Investment program. It also provides authorization 
     for the base closure accounts that fund military 
     construction, environmental cleanup, and other activities 
     required to implement the decisions in base closure rounds.
       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. Funding for base closure projects is 
     explained in additional detail in the table included in title 
     XXVII of this report.
       The budget request for fiscal year 2008 included 
     authorization of appropriations for military construction and 
     housing programs totaling $21.2 billion. Of this amount: $9.8 
     billion was requested for military construction; $2.9 billion 
     for the construction and operation of family housing; and 
     $8.4 for base closure activities, including $8.2 billion to 
     implement the results of the 2005 Base Realignment and 
     Closure (BRAC) round.
       The original budget request also proposed an additional 
     $907.9 million in emergency spending for Army military 
     construction projects in Iraq and Afghanistan and Navy 
     military construction projects in the United States related 
     to the administration's proposal to grow the size of the 
     Marine Corps. The President's October budget amendment 
     requested an additional $1.5 billion in emergency funding for 
     military construction and base closure, for a total emergency 
     request of $2.4 billion in addition to the $21.2 billion 
     request in the base budget, bringing the total military 
     construction request to $23.6 billion.
       Authorizations for which emergency funding was requested 
     and additional appropriations for domestic and overseas 
     projects are contained in title XXIX of this Act.
       Including all funding in Division B of this Act, the 
     conferees recommend authorization of appropriations for 
     military construction and housing programs totaling $23.7 
     billion. The total amount authorized for appropriations 
     reflects the continuing commitment of Congress to invest in 
     the recapitalization of Department of Defense facilities and 
     infrastructure to improve the quality of life and quality of 
     work of our service members and their families.
       Included in this conference report are projects not 
     contained in either bill which were not included in the 
     normal authorization and appropriation legislation as a 
     result of a decision by the Committee on Appropriations of 
     the House of Representatives to modify their traditional 
     procedures. These projects were eventually voted on and 
     approved by the House of Representatives in appropriations 
     legislation on November 6, 2007, approximately 5 weeks after 
     the Senate requested a conference and appointed conferees on 
     this legislation. Because these projects have been approved 
     by the House of Representatives, and as a matter of comity, 
     the conferees agreed to consider and authorize them in this 
     legislation. But the conferees consider the process that was 
     followed in this case to be an exception and by authorizing 
     these projects do not intend to establish a precedent or 
     commit to following such a process in the future.

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                     Legislative Provisions Adopted

     Short title (sec. 2001)
       The House bill contained a provision (sec. 2001) that would 
     designate Division B of this Act as the Military Construction 
     Authorization Act for Fiscal Year 2008.
       The Senate amendment contained an identical provision (sec. 
     2001).
       The conference agreement includes this provision.
     Expiration of authorizations and amounts required to be 
         specified by law (sec. 2002)
       The House bill contained a provision (sec. 2701) that would 
     establish the expiration date for authorizations in this Act 
     for military construction projects, repair of real property, 
     land acquisition, family housing projects, and contributions 
     to the North Atlantic Treaty Organization infrastructure 
     program, as of October 1, 2010, or the date of enactment of 
     an act authorizing funds for military construction for fiscal 
     year 2011, whichever is later.
       The Senate amendment contained a similar provision (sec. 
     2802).
       The House recedes.

                   Legislative Provision Not adopted

     Effective date
       The House bill contained a provision (sec. 2704) that would 
     provide that titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of 
     this Act shall take effect on October 1, 2007, or the date of 
     enactment of this Act, whichever is later.
       The Senate amendment contained an identical provision (sec. 
     2801).
       Because the conference report was not adopted prior to 
     October 1, 2007, this provision is no longer required and was 
     not included in the conference agreement.

                            TITLE XXI--ARMY

                              Budget Items

     Summary
       The fiscal year 2008 budget request for Army military 
     construction included ``placeholders'' of $2.4 billion 
     related to facilities to support the administration's ``Grow 
     the Force'' proposal to increase the size of the Army. On 
     March 30, 2007, the Army provided a detailed breakout and 
     supporting budget justification materials to Congress 
     requesting a specific allocation of these funds. While this 
     was not an official administration budget amendment, the 
     conferees have reviewed this request and included these 
     proposed changes in the conference agreement. These projects 
     are identified in the State list table included in this 
     report.
       The conferees have reduced the amounts authorized to be 
     appropriated for fiscal year 2008 for projects for which a 
     substantial amount of the full cost of the project cannot be 
     executed in fiscal year 2008, including projects to support 
     the stationing of a full brigade complex at Vicenza, Italy, 
     and the funding requested for a new headquarters facility for 
     the U.S. Southern Command in Miami, Florida. The conferees 
     have provided full project authorizations for these projects, 
     and these reductions to the authorization of appropriations 
     were made without prejudice to the projects. The conferees 
     encourage the Army to request the balance of the funding for 
     these projects in the fiscal year 2009 budget.
       Funding for a project at Eglin Air Force Base, Florida was 
     eliminated because the project could not be executed in 
     fiscal year 2008 based on the current schedule for the 
     required environmental analysis.
       The congressional defense committees and the Department of 
     Defense have traditionally analyzed requirements and funding 
     for mission projects and quality of life projects as 
     important and distinct categories. Two projects requested by 
     the Army blur these distinctions. The first is a headquarters 
     facility for the U.S. Southern Command in Miami, which 
     included funding for a child development center inside the 
     overall project cost for the headquarters. The second is a 
     brigade complex maintenance facility at Fort Drum, New York 
     that combined funding for a dining facility with funding for 
     mission-oriented projects such as vehicle maintenance shops. 
     The conferees have authorized the mission and quality of life 
     elements as separate projects in these cases. However, the 
     conferees direct the Army, and the other elements of the 
     Department of Defense, to refrain from combining mission 
     facilities and quality of life facilities into single project 
     requests in future budget submissions.
       The conferees also separately authorized funding requested 
     within a project for Vicenza that is actually intended for a 
     separate installation. The conferees also direct the 
     Department to refrain from including projects at disparate 
     installations in a single project line in the future.

                        Item of Special Interest

     Unspecified minor construction, Army
       The conferees agree that of the funds authorized for 
     appropriation for unspecified minor construction for the 
     Army, the following amounts may be made available: Hawthorne 
     Army Depot, Nevada-Wabuska rail spur, $1.4 million; and Camp 
     Rudder, Eglin Air Force Base, Florida, dining facility, $1.5 
     million.

                     Legislative Provisions Adopted

     Authorized Army construction and land acquisition projects 
         (sec. 2101)
       The House bill contained a provision (sec. 2101) that would 
     authorize military construction projects for the active 
     component of the Army for fiscal year 2008.
       The Senate amendment contained a similar provision (sec. 
     2101).
       The conference agreement includes this provision.
       The authorized amounts are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of the statement of 
     managers of Division B of this conference report 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 for fiscal year 2008. It would 
     also authorize funds for facilities that support family 
     housing, including housing management offices and housing 
     maintenance and storage facilities.
       The Senate amendment contained a similar provision (sec. 
     2102).
       The Senate recedes.
     Improvements to military family housing units (sec. 2103)
       The House bill contained a provision (sec. 2103) that would 
     authorize funding for fiscal year 2008 to improve existing 
     Army family housing units.
       The Senate amendment contained an identical 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 appropriations for the active component military 
     construction and family housing projects of the Army for 
     fiscal year 2008. This provision would also provide an 
     overall limit on the cost of the fiscal year 2008 military 
     construction and family housing projects authorized for the 
     active-duty component of the Army.
       The Senate amendment contained a similar provision (sec. 
     2204).
       The conference agreement includes this provision.
     Termination of authority to carry out fiscal year 2007 Army 
         projects for which funds were not appropriated (sec. 
         2105)
       The Senate amendment contained a provision (sec. 2105) that 
     would repeal the project authorizations and authorization of 
     appropriations for Army military construction projects 
     authorized in fiscal year 2007 for which no funds were 
     appropriated. No appropriations were provided in fiscal year 
     2007 for projects that were authorized but were not included 
     in the President's original budget request.
       The House bill contained no similar provision.
       The House recedes.
       The entire list of fiscal year 2007 active-component Army 
     projects for which the authorizations would be repealed 
     follows. The conferees have provided new authorizations for 
     some of these projects for fiscal year 2008. Those projects 
     that received new fiscal year 2008 authorizations can be 
     found in the State list of fiscal year 2008 projects 
     contained in this report.
       The conferees urge the Department of Defense and the 
     military departments to review any projects on this list that 
     are not authorized and appropriated in fiscal year 2008 and 
     re-insert those projects, if the requirements are still 
     valid, in the fiscal year 2009 future-years defense program.

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     Technical amendments to Military Construction Authorization 
         Act for Fiscal Year 2007 (sec. 2106)
       The Senate amendment contained a provision (sec. 2108) that 
     would make two corrections to the table of project 
     authorizations in section 2101 of the Military Construction 
     Authorization Act for Fiscal Year 2007 (Division B of Public 
     Law 109-364). One amendment would modify the name of a 
     specific location of a project in Romania to reflect a 
     modification of the original plan. This modification was 
     proposed by the Army and understood by the conferees prior to 
     the adoption of the fiscal year 2007 legislation. The second 
     amendment would correct an enrolling error and align the text 
     of the public law with the text of the conference report.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Modification of authority to carry out certain fiscal year 
         2006 projects (sec. 2107)
       The House bill contained a provision (sec. 2105) that would 
     amend section 2101 of the Military Construction Authorization 
     Act for Fiscal Year 2006 (Division B of Public Law 109-163) 
     to increase the project authorizations for Fort Bragg, North 
     Carolina by $7.0 million. This increase was requested by the 
     Department of Defense in its legislative proposal to 
     Congress.
       The Senate amendment contained an identical provision (sec. 
     2106).
       The conference agreement includes this provision.
     Extension of authorization of certain fiscal year 2005 
         project (sec. 2108)
       The Senate amendment contained a provision (sec. 2107) that 
     would extend the authorization for an Army fiscal year 2005 
     military construction project at Schofield Barracks, Hawaii, 
     until October 1, 2008, or the date of enactment of an act 
     authorizing funds for military construction for fiscal year 
     2009, whichever is later.
       The House bill contained this extension in a broader 
     provision extending authorizations for certain fiscal year 
     2005 projects across the Department of Defense (sec. 2702).
       The House recedes with a technical amendment.
       The conferees note that this extension was requested by the 
     Department of Defense in their legislative proposal to 
     Congress.
     Ground lease, SOUTHCOM headquarters facility, Miami-Doral, 
         Florida (sec. 2109)
       The Senate amendment contained a provision (sec. 2109) that 
     would require amendments to the existing ground lease 
     agreement between the United States Government and the State 
     of Florida for the land proposed as the site of a new 
     headquarters for the U.S. Southern Command (SOUTHCOM) before 
     the Secretary of the Army could begin construction of the 
     headquarters. The amendment would allow flexibility for the 
     use of this facility by other federal agencies in the event 
     future requirements change, and would require the lease term 
     to extend to 2055 rather than for 20 years.
       The House bill contained a similar provision (sec. 2834).
       The House recedes.
       The conferees understand the State of Florida is willing to 
     make these modifications to the lease agreement.

                            TITLE XXII--NAVY

                              Budget Items

     Summary
       The budget request for Navy military construction included 
     ``placeholders'' of $382.9 million related to facilities to 
     support the administration's ``Grow the Force'' proposal to 
     increase the size of the Marine Corps. On April 20, 2007, the 
     Navy provided a detailed breakout and supporting budget 
     justification materials to Congress requesting a specific 
     allocation of these funds. While this was not an official 
     administration budget amendment, the conferees have reviewed 
     this request and included these proposed changes in the 
     conference agreement. These projects are identified in the 
     State list table included in this report.
       The conferees have reduced the amounts authorized to be 
     appropriated for fiscal year 2008 for projects for which a 
     substantial amount of the full cost of the project cannot be 
     executed in fiscal year 2008, including a submarine magnetic 
     silencing facility at Pearl Harbor, Hawaii, and the Kilo 
     Wharf project in Guam. The conferees have provided full 
     project authorizations for these projects, and these 
     reductions to the authorization of appropriations were made 
     without prejudice to the projects. The conferees encourage 
     the Navy to request the balance of the funding for these 
     projects in the fiscal year 2009 budget.

                     Legislative Provisions Adopted

     Authorized Navy construction and land acquisition projects 
         (sec. 2201)
       The House bill contained a provision (sec. 2201) that would 
     authorize military construction projects for the active 
     component of the Navy and Marine Corps for fiscal year 2008.
       The Senate amendment contained a similar provision (sec. 
     2201).
       The conference agreement includes this provision.
       The authorized amounts are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of the statement of 
     managers of Division B of this conference report 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 for fiscal year 2008. It would 
     also authorize funds for facilities that support family 
     housing, including housing management offices and housing 
     maintenance and storage facilities.
       The Senate amendment contained a similar provision (sec. 
     2202).
       The conference agreement includes this provision.
     Improvements to military family housing units (sec. 2203)
       The House bill contained a provision (sec. 2203) that would 
     authorize funding for fiscal year 2008 to improve existing 
     Navy and Marine Corps family housing units.
       The Senate amendment contained an identical 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 appropriations for the active component military 
     construction and family housing projects of the Department of 
     the Navy for fiscal year 2008. This provision would also 
     provide an overall limit on the cost of the fiscal year 2008 
     military construction and family housing projects authorized 
     for the active-duty component of the Navy and Marine Corps.
       The Senate amendment contained a similar provision (sec. 
     2204).
       The conference agreement includes this provision.
     Termination of authority to carry out fiscal year 2007 Navy 
         projects for which funds were not appropriated (sec. 
         2205)
       The Senate amendment contained a provision (sec. 2205) that 
     would repeal the project authorizations and authorization of 
     appropriations for Navy military construction projects 
     authorized in fiscal year 2007 for which no funds were 
     appropriated. No appropriations were provided in fiscal year 
     2007 for projects that were authorized but were not included 
     in the President's original budget request.
       The House bill contained no similar provision.
       The House recedes.
       The entire list of fiscal year 2007 active-component Navy 
     projects for which the authorizations would be repealed 
     follows. The conferees have provided new authorizations for 
     some of these projects for fiscal year 2008. Those projects 
     that received new fiscal year 2008 authorizations can be 
     found in the State list of fiscal year 2008 projects 
     contained in this report.
       The conferees urge the Department of Defense and the 
     military departments to review any projects on this list that 
     are not authorized and appropriated in fiscal year 2008 and 
     re-insert those projects, if the requirements are still 
     valid, in the fiscal year 2009 future-years defense program.

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[[Page 33125]]

     Modification of authority to carry out certain fiscal year 
         2005 project (sec. 2206)
       The Senate amendment contained a provision (sec. 2206) that 
     would amend section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 2005 (Public Law 108-375) 
     as amended by section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163), 
     and further amended by section 2201(a) of the Military 
     Construction Authorization Act for Fiscal Year 2007 (Public 
     Law 109-364), to increase the authorized cost for a project 
     at the Strategic Weapons Facility, Bangor, Washington.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that this increase was requested by the 
     Department of the Navy.
     Repeal of authorization for construction of Navy outlying 
         landing field, Washington County, North Carolina (sec. 
         2207)
       The House bill contained a provision (sec. 2205) that would 
     amend section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136), 
     as amended, and section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 2005 (Public Law 108-375), 
     as amended, to repeal the authority for construction of an 
     outlying landing field at Washington County, North Carolina.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees expect the Department of the Navy to request 
     new authorization for an outlying field once a study of the 
     impact to the environment is completed and a site is 
     selected.

                         TITLE XXIII--AIR FORCE

                     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 for fiscal 
     year 2008.
       The Senate amendment contained a similar provision (sec. 
     2301).
       The conference agreement includes this provision.
       The authorized amounts are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of the statement of 
     managers of Division B of this conference report 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 for fiscal year 2008. It 
     would also authorize funds for facilities that support family 
     housing, including housing management offices and housing 
     maintenance and storage facilities.
       The Senate amendment contained an identical provision (sec. 
     2302).
       The conference agreement includes this provision.
     Improvements to military family housing units (sec. 2303)
       The House bill contained a provision (sec. 2303) that would 
     authorize funding for fiscal year 2008 to improve existing 
     Air Force family housing units.
       The Senate amendment contained an identical 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 appropriations for the active component military 
     construction and family housing projects of the Air Force for 
     fiscal year 2008. This provision would also provide an 
     overall limit on the cost of the fiscal year 2008 military 
     construction and family housing projects authorized for the 
     active-duty component of the Air Force.
       The Senate amendment contained a similar provision (sec. 
     2304).
       The conference agreement includes this provision.
     Termination of authority to carry out fiscal year 2007 Air 
         Force projects for which funds were not appropriated 
         (sec. 2305)
       The Senate amendment contained a provision (sec. 2305) that 
     would repeal the project authorizations and authorization of 
     appropriations for Air Force military construction projects 
     authorized in fiscal year 2007 for which no funds were 
     appropriated. No appropriations were provided in fiscal year 
     2007 for projects that were authorized but were not included 
     in the President's original budget request.
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide an 
     exception for projects for which a contract was awarded 
     during fiscal year 2007. The conferees note that this would 
     apply only to a project at Robins Air Force Base, Georgia.
       The entire list of fiscal year 2007 active-component Air 
     Force projects for which the authorizations would be repealed 
     follows. The conferees have provided new authorizations for 
     some of these projects for fiscal year 2008. Those projects 
     that received new fiscal year 2008 authorizations can be 
     found in the State list of fiscal year 2008 projects 
     contained in this report.
       The conferees urge the Department of Defense and the 
     military departments to review any projects on this list that 
     are not authorized and appropriated in fiscal year 2008 and 
     re-insert those projects, if the requirements are still 
     valid, in the fiscal year 2009 future-years defense program.

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[[Page 33127]]

     Modification of authority to carry out certain fiscal year 
         2006 project (sec. 2306)
       The House bill 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 increase project authorizations for MacDill Air Force 
     Base, Florida by $25.0 million.
       The Senate amendment contained a similar provision (sec. 
     2306).
       The Senate recedes.
       The conferees note that this increase was requested by the 
     Department of Defense in its legislative proposal to 
     Congress.
     Extension of authorizations of certain fiscal year 2005 
         projects (sec. 2307)
       The Senate amendment contained a provision (sec. 2307) that 
     would extend the authorization for several fiscal year 2005 
     Air Force military construction projects until October 1, 
     2008, or the date of enactment of an act authorizing funds 
     for military construction for fiscal year 2009, whichever is 
     later.
       The House bill contained a similar list of extensions in a 
     broader provision extending authorizations for certain fiscal 
     year 2005 projects across the Department of Defense (sec. 
     2702).
       The House recedes with a technical amendment.
       The conferees note that these extensions were requested by 
     the Air Force.
     Extension of authorizations of certain fiscal year 2004 
         projects (sec. 2308)
       The Senate amendment contained a provision (sec. 2308) that 
     would extend the authorization for certain fiscal year 2005 
     Air Force military construction projects until October 1, 
     2008, or the date of enactment of an act authorizing funds 
     for military construction for fiscal year 2009, whichever is 
     later.
       The House bill contained an identical list of extensions in 
     a broader provision extending authorizations for certain 
     fiscal year 2004 projects across the Department of Defense 
     (sec. 2703).
       The House recedes with a technical amendment.
       The conferees note that these extensions were requested by 
     the Department of Defense in their legislative proposal to 
     Congress.

                      TITLE XXIV--DEFENSE AGENCIES

                              Budget Items

     Summary
       The Department of Defense requested funding for chemical 
     demilitarization as a new separate funding title. The 
     conference agreement continues to fund this program in title 
     XXIV, as in previous years.
       The conferees have reduced the amounts authorized to be 
     appropriated for fiscal year 2008 for projects for which a 
     substantial amount of the full cost of the project cannot be 
     executed in fiscal year 2008, including a Special Operations 
     facility at Dam Neck, Virginia, and a Defense Logistics 
     Agency project at Point Loma, California. The conferees have 
     provided full project authorizations for these projects, and 
     these reductions to the authorization of appropriations were 
     made without prejudice to the projects. The conferees 
     encourage the Department to request the balance of the 
     funding for these projects in the fiscal year 2009 budget.
       No authorization was provided for a Special Operations 
     Forces headquarters facility at Little Creek, Virginia, based 
     on information from the Commander, United States Special 
     Operations Command, that this project is not required at this 
     time.

                     Legislative Provisions Adopted

     Authorized defense agencies construction and land acquisition 
         projects (sec. 2401)
       The House bill contained a provision (sec. 2401) that would 
     authorize military construction projects for the defense 
     agencies for fiscal year 2008.
       The Senate amendment contained a similar provision (sec. 
     2401).
       The conference agreement includes this provision.
       The authorized amounts are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of the statement of 
     managers of Division B of this conference report provides the 
     binding list of specific construction projects authorized at 
     each location.
     Energy conservation projects (sec. 2402)
       The House bill contained a provision (sec. 2402) that would 
     authorize the Secretary of Defense to carry out energy 
     conservation projects.
       The Senate amendment contained a similar provision (sec. 
     2402).
       The House recedes with a technical amendment.
     Authorization of appropriations, defense agencies (sec. 2403)
       The House bill contained a provision (sec. 2404) that would 
     authorize appropriations for the military construction 
     projects of the defense agencies for fiscal year 2008. This 
     provision would also provide an overall limit on the cost of 
     the fiscal year 2008 military construction projects 
     authorized for the defense agencies.
       The Senate amendment contained a similar provision (sec. 
     2403).
       The conference agreement includes this provision.
     Termination or modification of authority to carry out fiscal 
         year 2007 defense agencies projects (sec. 2404)
       The Senate amendment contained a provision (sec. 2404) that 
     would repeal the project authorizations and authorization of 
     appropriations for defense agency military construction 
     projects authorized in fiscal year 2007 for which no funds 
     were appropriated. No appropriations were provided in fiscal 
     year 2007 for projects that were authorized but were not 
     included in the President's original budget request.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The entire list of fiscal year 2007 defense agency projects 
     for which the authorizations would be repealed follows. The 
     conferees have provided new authorizations for some of these 
     projects for fiscal year 2008. Those projects that received 
     new fiscal year 2008 authorizations can be found in the State 
     list of fiscal year 2008 projects contained in this report.
       The conferees urge the Department of Defense to review any 
     projects on this list that are not authorized and 
     appropriated in fiscal year 2008 and re-insert those 
     projects, if the requirements are still valid, in the fiscal 
     year 2009 future-years defense program.

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[[Page 33129]]

     Munitions demilitarization facilities, Blue Grass Army Depot, 
         Kentucky, and Pueblo Chemical Activity, Colorado (sec. 
         2405)
       The Senate amendment contained a provision (sec. 2406) that 
     would permit the Secretary of Defense to transfer, subject to 
     certain certifications, authorizations in this Act for 
     military construction for the defense agencies in order to 
     provide additional funds to accelerate the construction of 
     previously authorized facilities for the destruction of 
     chemical weapons at Blue Grass Army Depot, Kentucky, and 
     Pueblo Chemical Activity, Colorado. The amendment would set 
     forth a maximum amount that could be transferred for each 
     facility.
       The House bill contained no similar provision.
       The House recedes with a technical amendment. The conferees 
     expect any authorizations transferred under the authority of 
     this section to be derived from bid savings, not from the 
     cancellation of other projects.
     Extension of authorizations of certain fiscal year 2005 
         projects (sec. 2406)
       The Senate amendment contained a provision (sec. 2405) that 
     would extend the authorization for certain fiscal year 2005 
     military construction projects until October 1, 2008, or the 
     date of enactment of an act authorizing funds for military 
     construction for fiscal year 2009, whichever is later.
       The House bill contained an identical list of extensions in 
     a broader provision extending authorizations for certain 
     fiscal year 2005 projects across the Department of Defense 
     (sec. 2702).
       The House recedes with a technical amendment.

                   Legislative Provision Not Adopted

     Wounded warrior facility support
       The House bill contained a provision (sec. 2405) that would 
     reallocate funding in the base closure account to accelerate 
     or enhance medical care facilities related to the 
     establishment of the Walter Reed National Medical Center.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conference outcome is reflected in the tables in this 
     conference report. The conferees note that the elements of 
     this provision were incorporated in the budget amendment 
     submitted by the President on October 22, 2007, and are 
     authorized in title XXIX of this Act.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

                     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 (NATO) Security 
     Investment Program in an amount equal to the sum of the 
     amount specifically authorized in section 2502 of this title 
     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 appropriations of $201.4 million for the United 
     States' contribution to the North Atlantic Treaty 
     Organization (NATO) Security Investment Program for fiscal 
     year 2008.
       The Senate amendment contained an identical provision (sec. 
     2502).
       The conference agreement includes this provision.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

                              Budget Items

       The conference agreement includes specific project 
     authorizations for Guard and reserve projects, in accordance 
     with the long-standing process used for active component 
     construction projects, in addition to the traditional 
     authorization of appropriations for Guard and reserve 
     projects.

                       Items of Special Interest

     Unspecified minor construction, Army National Guard
       The conferees agree that of the funds authorized for 
     appropriation for unspecified minor construction for the Army 
     National Guard, the following amounts may be made available: 
     Marana, Arizona, fire station, Silverbell Army Heliport, $2.0 
     million; Camp Dodge, Iowa, main entrance, $1.5 million; Camp 
     Perry, Ohio, base engineering, operations, and classroom 
     facility, $1.5 million; Newton Falls, Ohio, training building 
     (#813) alteration, Ravenna Training and Logistics Site, $1.5 
     million; Kenai, Alaska, add/alter readiness center, $1.4 
     million; and Northfield, Vermont, billeting, regional 
     readiness tech center, $1.5 million.
     Unspecified minor construction, Air National Guard
       The conferees agree that of the funds authorized for 
     appropriation for unspecified minor construction for the Air 
     National Guard, the following amounts may be made available: 
     Duluth, Minnesota, replace storage facilities, $1.5 million; 
     and Rapid City, South Dakota, joint force headquarters, 
     $900,000.

                     Legislative Provisions Adopted

     Authorized Army National Guard construction and land 
         acquisition projects (sec. 2601)
       The Senate amendment contained a provision (sec. 2601) that 
     would authorize military construction projects for the Army 
     National Guard for fiscal year 2008.
       The House bill contained no similar provision.
       The House recedes with an amendment modifying the list of 
     projects authorized in this Act.
       The authorized amounts are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of the statement of 
     managers of Division B of this conference report provides the 
     binding list of specific construction projects authorized at 
     each location.
     Authorized Army Reserve construction and land acquisition 
         projects (sec. 2602)
       The Senate amendment contained a provision (sec. 2602) that 
     would authorize military construction projects for the Army 
     Reserve for fiscal year 2008.
       The House bill contained no similar provision.
       The House recedes with an amendment modifying the list of 
     projects authorized in this Act.
       The authorized amounts are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of the statement of 
     managers of Division B of this conference report provides the 
     binding list of specific construction projects authorized at 
     each location.
     Authorized Navy Reserve and Marine Corps Reserve construction 
         and land acquisition projects (sec. 2603)
       The Senate amendment contained a provision (sec. 2603) that 
     would authorize military construction projects for the Navy 
     Reserve and Marine Corps Reserve for fiscal year 2008.
       The House bill contained no similar provision.
       The House recedes with an amendment modifying the list of 
     projects authorized in this Act.
       The authorized amounts are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of the statement of 
     managers of Division B of this conference report provides the 
     binding list of specific construction projects authorized at 
     each location.
     Authorized Air National Guard construction and land 
         acquisition projects (sec. 2604)
       The Senate amendment contained a provision (sec. 2604) that 
     would authorize military construction projects for the Air 
     National Guard for fiscal year 2008.
       The House bill contained no similar provision.
       The House recedes with an amendment modifying the list of 
     projects authorized in this Act.
       The authorized amounts are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of the statement of 
     managers of Division B of this conference report provides the 
     binding list of specific construction projects authorized at 
     each location.
     Authorized Air Force Reserve construction and land 
         acquisition projects (sec. 2605)
       The Senate amendment contained a provision (sec. 2605) that 
     would authorize military construction projects for the Air 
     Force Reserve for fiscal year 2008.
       The House bill contained no similar provision.
       The House recedes.
       The authorized amounts are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of the statement of 
     managers of Division B of this conference report provides the 
     binding list of specific construction projects authorized at 
     each location.
     Authorization of appropriations, National Guard and Reserve 
         (sec. 2606)
       The House bill contained a provision (sec. 2601) that would 
     authorize appropriations for reserve component military 
     construction projects for fiscal year 2008.
       The Senate amendment contained a similar provision (sec. 
     2606).
       The conference agreement includes this provision.
     Termination of authority to carry out fiscal year 2007 Guard 
         and Reserve projects for which funds were not 
         appropriated (sec. 2607)
       The Senate amendment contained a provision (sec. 2607) that 
     would repeal the project authorizations and authorization of 
     appropriations for reserve component military construction 
     projects authorized in fiscal year 2007 for which no funds 
     were appropriated. No appropriations were provided in

[[Page 33130]]

     fiscal year 2007 for projects that were authorized but were 
     not included in the President's original budget request.
       The House bill contained no similar provision.
       The House recedes.
       The entire list of fiscal year 2007 reserve component 
     projects for which the authorizations would be repealed 
     follows. The conferees have provided new authorizations for 
     some of these projects for fiscal year 2008. Those projects 
     that received new fiscal year 2008 authorizations can be 
     found in the State list of fiscal year 2008 projects 
     contained in this report.
       The conferees urge the Department of Defense and the 
     military departments to review any projects on this list that 
     are not authorized and appropriated in fiscal year 2008 and 
     re-insert those projects, if the requirements are still 
     valid, in the fiscal year 2009 future-years defense program.

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[[Page 33133]]

     Modification of authority to carry out fiscal year 2006 Air 
         Force Reserve construction and acquisition projects (sec. 
         2608)
       The Senate amendment contained a provision (sec. 2608) that 
     would reduce the authorization of appropriations for fiscal 
     year 2006 Air Force Reserve projects. The provision would 
     eliminate the authorization to convert a hanger into a 
     headquarters for a C-17 unit at Elmendorf Air Force Base, 
     Alaska.
       The House bill included no similar provision.
       The House recedes.
     Extension of authorizations of certain fiscal year 2005 
         projects (sec. 2609)
       The Senate amendment contained a provision (sec. 2609) that 
     would extend the authorization of certain fiscal year 2005 
     military construction projects until October 1, 2008, or the 
     date of enactment of an act authorizing funds for military 
     construction for fiscal year 2009, whichever is later.
       The House bill contained an identical list of extensions in 
     a broader provision extending authorizations for certain 
     fiscal year 2005 projects across the Department of Defense 
     (sec. 2702).
       The House recedes with a technical amendment.
     Extension of authorizations of certain fiscal year 2004 
         projects (sec. 2610)
       The Senate amendment contained a provision (sec. 2610) that 
     would extend the authorization for certain fiscal year 2005 
     Army National Guard military construction projects until 
     October 1, 2008, or the date of enactment of an act 
     authorizing funds for military construction for fiscal year 
     2009, whichever is later.
       The House bill contained an identical list of extensions in 
     a broader provision extending authorizations for certain 
     fiscal year 2004 projects across the Department of Defense 
     (sec. 2703).
       The House recedes with a technical amendment.
       The conferees note that these extensions were requested by 
     the Department of Defense in their legislative proposal to 
     Congress.

          TITLE XXVII--BASE CLOSURE AND REALIGNMENT ACTIVITIES

                              Budget Items

     Summary and explanation of tables
       The budget request included $220.7 million for the ongoing 
     cost of environmental remediation and other activities 
     necessary to continue implementation of the 1988, 1991, 1993, 
     and 1995 Base Realignment and Closure (BRAC) rounds. The 
     conference agreement authorizes funding for these activities 
     in section 2701 of this Act, including an increase of $75.0 
     million to accelerate the cleanup of BRAC properties.
       In addition, the budget requested an authorization of 
     appropriations of $8.2 billion for implementation of the 2005 
     BRAC round. Section 2703 of this Act authorizes 
     appropriations requested for BRAC activities in fiscal year 
     2008. Included in the $8.2 billion requested for BRAC is an 
     authorization of appropriations for $6.4 billion in military 
     construction projects that would be initiated in fiscal year 
     2008. The full project authorization amount of these projects 
     is $8.7 billion. Section 2702 of this Act provides the 
     authorization for these projects.
       The conference agreement includes a general reduction to 
     the BRAC 2005 account that does not reduce the amount 
     authorized for any specific project.
       The following table provides the specific amount authorized 
     for each BRAC military construction project as well as the 
     amount authorized for appropriations for all BRAC activities, 
     including military construction, environmental costs, 
     relocation and other operation and maintenance costs, 
     permanent change of station costs for military personnel, and 
     other BRAC costs.

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[[Page 33135]]

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[[Page 33136]]

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[[Page 33137]]

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[[Page 33141]]

                     Legislative Provisions Adopted

     Authorization of appropriations for base closure and 
         realignment activities funded through Department of 
         Defense Base Closure Account 1990 (sec. 2701)
       The Senate amendment contained a provision (sec. 2701) that 
     would authorize appropriations for fiscal year 2008 for 
     ongoing activities that are required to implement the 
     decisions of the 1988, 1991, 1993, and 1995 base realignment 
     and closure (BRAC) rounds.
       The House bill contained a similar provision (section 
     2404(a)(8)).
       The House recedes with an amendment to the amount 
     authorized.
     Authorized base closure and realignment activities funded 
         through Department of Defense base closure account 2005 
         (sec. 2702)
       The House bill contained a provision (sec. 2403) that would 
     authorize military construction projects for fiscal year 2008 
     that are required to implement the decisions of the 2005 
     Defense Base Realignment and Closure round.
       The Senate amendment contained a similar provision (sec. 
     2702).
       The House recedes with an amendment to the amounts 
     authorized.
       The table included in this title of the report lists the 
     specific amounts authorized at each location.
     Authorization of appropriations for base closure and 
         realignment activities funded through Department of 
         Defense Base Closure Account 2005 (sec. 2703)
       The House bill contained a provision (sec. 2404(a)(9)) that 
     would authorize appropriations for the Department of Defense 
     for military construction projects for fiscal year 2008 that 
     are required to implement the decisions of the 2005 Defense 
     Base Realignment and Closure round.
       The Senate amendment contained a similar provision (sec. 
     2703) that would also specify the amount authorized for each 
     military department and for the defense agencies.
       The House recedes with an amendment to the amounts 
     authorized.
       The State list contained in this report is the binding list 
     of the specific projects authorized at each location for the 
     purposes of notifications under section 2704 of this Act.
     Authorized cost and scope of work variations (sec. 2704)
       The Senate amendment contained a provision (sec. 2704) that 
     would require that each Base Realignment and Closure (BRAC) 
     military construction project carried out with amounts 
     authorized for appropriations by sections 2701 and 2703 of 
     this title be subject to the limits on cost and scope 
     variations contained in section 2853 of title 10, United 
     States Code. Furthermore, this provision would establish, as 
     a baseline for the determination of variations, the cost and 
     scope contained in the military construction project data for 
     each project provided to the congressional defense committees 
     annually in justification material accompanying each 
     President's budget request.
       The House bill contained no similar provision.
       The House recedes with an amendment to the thresholds that 
     trigger cost variation reports and would require a one-time 
     report on cost or scope variations on existing BRAC 
     construction projects for the 2005 base closure round. The 
     amendment would also establish the amount specified for such 
     projects in the annual military construction authorization 
     act as the baseline for reporting.
     Transfer of funds from Department of Defense Base Closure 
         Account 2005 to Department of Defense Housing Funds (sec. 
         2705)
       The House bill contained a provision (sec. 2821) that would 
     authorize the Secretary of Defense to transfer funds from the 
     Department of Defense (DOD) Base Closure and Realignment 
     (BRAC) account to the DOD Family Housing Improvement Fund 
     (FHIF), enabling the use of the privatization authorities to 
     meet the family housing requirements associated with the 2005 
     BRAC recommendations. It also would allow similar transfers 
     of funds to the Military Unaccompanied Housing Improvement 
     Fund (MUHIF).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would add a 
     certification to the notice of transfer. This notice would 
     require the Department of Defense Base Closure Account 2005 
     funds, used in the transfer to the FHIF or the MUHIF, to be 
     specified for that purpose in the conference report that 
     accompanies the most recent Military Construction 
     Authorization Act.
     Comprehensive accounting of funding required to ensure timely 
         implementation of 2005 Defense Base Closure and 
         Realignment Commission recommendations (sec. 2706)
       The Senate amendment contained a provision (sec. 2842) that 
     would require the Secretary of Defense to submit to Congress 
     a comprehensive accounting of the funding required to ensure 
     all decisions of the 2005 Defense Base Closure and 
     Realignment round remain on schedule to be completed by 
     September 15, 2011.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Relocation of units from Roberts United States Army Reserve 
         Center and Navy-Marine Corps Reserve Center, Baton Rouge, 
         Louisiana (sec. 2707)
       The Senate amendment contained a provision (sec. 2611) that 
     would permit the Secretary of the Army to use land in the 
     vicinity of the Baton Rouge airport in Baton Rouge, Louisiana 
     to site an Army Reserve Center and a Navy-Marine Corps 
     Reserve Center, if such location was determined by the 
     Secretary to be in the national security and public interest 
     of the Nation.
       The House bill contained no similar provision.
       The House recedes with an amendment clarifying that the 
     funds authorized to be appropriated for base closure in this 
     Act may be used to locate the reserve centers on a more 
     suitable piece of property in the same vicinity as the 
     airport. The conferees understand that the Department of the 
     Army agrees that an alternate parcel not adjacent to the 
     airport is more suitable for carrying out the intent of the 
     2005 Defense Base Closure and Realignment Commission's 
     recommendation for reserve component transformation in 
     Louisiana.
     Acquisition of real property, Fort Belvoir, Virginia, as part 
         of the realignment of the installation (sec. 2708)
       The House bill contained a provision (sec. 2837) that would 
     direct the Secretary of the Army to enter into an agreement 
     with the Administrator of the General Services Administration 
     (GSA) to exchange property for the purpose of making a parcel 
     of GSA property in Springfield, Virginia, available for 
     incorporation into Fort Belvoir, Virginia.
       The Senate amendment contained a similar provision (sec. 
     2853) that would permit the Secretary to enter into an 
     agreement to transfer jurisdiction of the Springfield parcel 
     to the Army. The Senate amendment would also allow the Army 
     to provide additional forms of compensation to the 
     Administrator.
       The Senate recedes with an amendment that would allow the 
     Secretary to consider and purchase other parcels in the 
     vicinity of Fort Belvoir, in addition to the GSA property, 
     for the purpose of relocating personnel to that installation. 
     The conferees agree to require the Secretary to select any 
     additional parcel of property not currently part of Fort 
     Belvoir on the basis of best value and to use competitive 
     procedures to acquire any such parcel of privately held land 
     and real property.
       The conferees note that the Army has already begun the 
     process of evaluating alternate sites and support the Army's 
     goal of relocating employees of the Washington Headquarters 
     Service to Fort Belvoir in a way that minimizes costs and 
     traffic congestion and facilitates compliance with the 
     September 2011 deadline.
     Report on availability of traffic infrastructure and 
         facilities to support base realignments (sec. 2709)
       The House bill contained a provision (sec. 2822) that would 
     prohibit the relocation of members of the armed forces and 
     civilian employees of the Department of Defense who are 
     scheduled to be relocated to Fort Belvoir, Virginia, as a 
     result of the closure of leased-office space in Arlington, 
     Virginia, pursuant to the recommendations of the 2005 Defense 
     Base Closure and Realignment Commission. This limitation 
     would be obviated when the Secretary of the Army certified 
     that the necessary transportation infrastructure, as 
     identified by the Fort Belvoir Environmental Impact 
     Statement, to accommodate the total number of military 
     members, military dependents, and civilian employees to be 
     assigned to Fort Belvoir is substantially completed.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would state the 
     sense of Congress that the Department should consider roads 
     at military installations significantly impacted by a 
     realignment of forces for designation as defense access roads 
     and that the Secretary of Defense should ensure that the full 
     range of permanent facilities are in place and ready for use 
     prior to the movement of members of the armed forces, 
     civilian employees, and their families. The amendment would 
     also direct the Comptroller General to submit to the 
     congressional defense committees, not later than April 1, 
     2008, an assessment of significantly impacted installations 
     for the purpose of determining whether military facility 
     requirements will be met before the arrival of forces and 
     whether sufficient funding has been programmed in the Defense 
     Access Roads program to mitigate community traffic 
     congestion.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

     Authority to use operation and maintenance funds for 
         construction projects outside the United States (sec. 
         2801)
       The House bill contained a provision (sec. 2806) that would 
     further amend section 2808 of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136), 
     as amended, to extend for 1 year, through the end of fiscal 
     year 2008, the temporary authority provided to the Secretary 
     of Defense to

[[Page 33142]]

     use funds appropriated for operation and maintenance to carry 
     out construction projects intended to satisfy certain 
     operational requirements in support of a declaration of war, 
     national emergency, or other contingency. The House bill 
     would require advance notification to Congress of such 
     projects.
       The Senate amendment contained a similar provision (sec. 
     2814) that would also extend the authority for 1 year and 
     would remove the Secretary's authority to waive the annual 
     dollar limitation on this authority.
       The Senate recedes with an amendment that would remove the 
     authority to waive the dollar limitation and would also allow 
     the Department of Defense to use this authority retroactively 
     for nine fiscal year 2007 projects the Department intended to 
     execute in September 2007, but which they were precluded from 
     executing due to the suspension of this authority resulting 
     from the failure to provide timely notification to Congress 
     regarding the obligation of funds for other such fiscal year 
     2007 projects. The nine projects are:
       (1) MUNS storage area, Balad Air Base (AB), $22.0 million;
       (2) MNSTC-I beddown barracks, Camp Phoenix, $37.0 million;
       (3) CSAR helicopter ramp, Balad AB, $9.7 million;
       (4) Airfield overruns, Balad AB, $15.5 million;
       (5) Strategic fuel reserve, Camp Speicher, $19.0 million;
       (6) Aeromedical evacuation compound, Balad AB, $15.3 
     million;
       (7) DS Maintenance facility (FY2005), Balad AB, $10.8 
     million;
       (8) Dining facility #5 (FY2004), Balad AB, $15.2 million; 
     and
       (9) Pave Aspen connectors, Kuwait, various sites, $11.6 
     million.
       All nine of these projects are in Iraq except as noted.
       The conferees believe the Department requires some 
     flexibility to meet emerging war-related facility needs, but 
     expect the Department to use this authority more judiciously 
     in the future.
     Clarification of requirement for authorization of military 
         construction (sec. 2802)
       The Senate amendment contained a provision (sec. 2818) that 
     would amend sections 2801(a) and 2802(a) of title 10, United 
     States Code, to add land acquisitions and defense access road 
     projects to the definition of military construction and to 
     the types of projects for which the Secretary of Defense and 
     the secretaries of the military departments would be 
     permitted to carry out once authorized by law.
       The House bill contained no similar provision.
       The House recedes.
       The conferees intend for the Secretary of Defense or the 
     secretaries of the military departments to include in each 
     annual budget submission a request for specific authorization 
     for each land acquisition and defense access road project to 
     be carried out using appropriations for military 
     construction. The request should be listed either as a 
     separate project, or clearly indicated in the military 
     construction project data in the justification material in 
     support of the budget request if the land acquisition or 
     defense access road is proposed to be carried out as part of 
     a larger military construction project. The conferees intend 
     this provision to clarify what they believe to be the 
     requirements under existing law.
     Increase in thresholds for unspecified minor military 
         construction projects (sec. 2803)
       The Senate amendment contained a provision (sec. 2813) that 
     would amend section 2805(a)(1) of title 10, United States 
     Code, by raising the threshold of the cost of a minor 
     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 House recedes with an amendment that would raise the 
     threshold of the cost of a minor construction project 
     authorized by section 2805(a)(1) of title 10, United States 
     Code, from $1.5 million to $2.0 million.
     Temporary authority to support revitalization of Department 
         of Defense laboratories through unspecified minor 
         military construction projects (sec. 2804)
       The House bill contained a provision (sec. 2801) that would 
     provide the Department of Defense (DOD) with additional 
     authority to improve DOD laboratories using minor 
     construction authorities similar to those already contained 
     in section 2805 of title 10, United States Code. The 
     temporary authority would expire on September 30, 2012.
       The Senate amendment contained a similar provision (sec. 
     2815).
       The Senate recedes with a clarifying amendment.
     Extension of authority to accept equalization payments for 
         facility exchanges (sec. 2805)
       The House bill contained a provision (sec. 2805) that would 
     extend the authority provided in section 2809 of the Ronald 
     W. Reagan National Defense Authorization Act for Fiscal Year 
     2005 (Public Law 108-375) by an additional 3 years, until 
     September 30, 2010.
       The Senate amendment contained a similar provision (sec. 
     2817).
       The House recedes.
     Modifications of authority to lease military family housing 
         (sec. 2806)
       The House bill contained a provision (sec. 2802) that would 
     amend section 2828 of title 10, United States Code, by 
     raising from $500,000 to $1.0 million in annual rental 
     payments the threshold for which prior congressional 
     notification of overseas leases is required.
       The Senate amendment contained a similar provision (sec. 
     2851) that would also modify section 2828 of title 10, United 
     States Code, to grant the Secretary of the Army additional 
     authority to enter into high-cost leases for up to 600 units 
     in the United States and set an annual per unit ceiling of 
     $100,000 on the cost of any overseas leased unit. The 
     provision would also combine and consolidate the existing 
     authorities for high-cost leases in Italy for the Army and 
     the Navy into a single limit applicable to the entire 
     Department of Defense.
       The House recedes with an amendment that would delete the 
     proposed maximum cost ceiling on a foreign leased unit but 
     would require the Secretary of Defense to report to the 
     congressional defense committees on leases in foreign 
     countries costing in excess of $60,000 per unit per year. The 
     report would include the requirement for such high-cost 
     leases and the options available to decrease those costs. The 
     conferees note that the military departments have already 
     identified to the committees leases costing in excess of 
     $100,000 per unit per year and intend to use this report to 
     evaluate options for addressing this issue in the future.
       The conferees believe the administration's proposal to 
     increase the per unit cost ceiling on leased units in Korea 
     is unaffordable. The conferees support the continued 
     consolidation of forces in Korea and urge the Department of 
     Defense to pursue other means to provide adequate family 
     housing in Korea.
     Expansion of authority to exchange reserve component 
         facilities (sec. 2807)
       The House bill contained a provision (sec. 2804) that would 
     expand the authority of the Secretary of Defense to exchange 
     reserve component facilities with other federal agencies 
     including the United States Postal Service.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Limitation on use of alternative authority for acquisition 
         and improvement of military housing for privatization of 
         temporary lodging facilities (sec. 2808)
       The House bill contained a provision (sec. 2803) that would 
     limit the privatization of Army lodging to 13 installations. 
     The provision would also direct the Secretary of the Army to 
     submit a report not later than June 1, 2009 that would 
     describe the implementation of the pilot program and evaluate 
     its efficiency, and would direct the Comptroller General to 
     submit to the congressional defense committees an assessment 
     of the pilot program and of the Secretary's report.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that limits the 
     privatization of Army lodging to 13 military installations 
     until 120 days after the Secretary of the Army submits a 
     report to the congressional defense committees and the 
     Comptroller General. The Secretary of the Army's report shall 
     be submitted no earlier than 8 months after a notice of 
     transfer associated with the 13 military installations, and 
     shall describe the implementation of the privatization of 
     temporary lodging facilities, evaluate the efficiency of the 
     program, and include any recommendations the Secretary of the 
     Army considers appropriate regarding the expansion of the 
     program.
       The amendment would also direct the Comptroller General to 
     submit a report to the congressional defense committees 
     within 90 days of the Secretary of the Army's report that 
     reviews both the privatization of temporary lodging 
     facilities and the report of the Secretary.
       Additional solicitations for the privatization of temporary 
     lodging facilities would be permitted 120 days after Congress 
     receives the report from the Secretary of the Army.
     Two-year extension of temporary program to use minor military 
         construction authority for construction of child 
         development centers (sec. 2809)
       The Senate amendment contained a provision (sec. 2816) that 
     would amend section 2810 of the Military Construction 
     Authorization Act for Fiscal Year 2006 (Division B of Public 
     Law 109-163) to extend by 2 years the temporary authority 
     provided to the Secretary of Defense to use higher minor 
     construction thresholds for the construction of child 
     development centers.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

[[Page 33143]]


     Report on housing privatization initiatives (sec. 2810)
       The Senate amendment contained a provision (sec. 2866) that 
     would require the Comptroller General to submit to the 
     Committees on Armed Services of the Senate and House of 
     Representatives a report containing information on housing 
     privatization transactions carried out by the Department of 
     Defense that are behind schedule or in default. The report 
     would describe remedies available to address the problems 
     with these projects.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

        Subtitle B--Real Property and Facilities Administration

     Requirement to report real property transactions resulting in 
         annual costs of more than $750,000 (sec. 2821)
       The Senate amendment contained a provision (sec. 2831) that 
     would amend section 2662 of title 10, United States Code, to 
     require the Secretary of Defense, the secretaries of the 
     military departments, or their designees, to notify Congress 
     prior to entering into a transaction or contract action that 
     results in or includes the acquisition, lease or license, or 
     any other use by entities of the Department of Defense of 
     real property if the estimated annual rental or cost is more 
     than $750,000.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Consolidation of real property provisions without substantive 
         change (sec. 2822)
       The House bill contained a provision (sec. 2811) that would 
     consolidate the real property authorities provided under 
     sections 2663 and 2677 of title 10, United States Code, as 
     requested by the Department of Defense.
       The Senate amendment contained a similar provision (sec. 
     2835).
       The Senate recedes.
     Modification of authority to lease non-excess property of the 
         military departments (sec. 2823)
       The Senate amendment contained a provision (sec. 2832) that 
     would amend section 2667 of title 10, United States Code, to 
     require the secretary of a military department to use 
     competitive procedures to select lessees for transactions 
     authorized by paragraph (a) of section 2667. The provision 
     would also eliminate the authority for the secretary 
     concerned to receive in-kind consideration or to use rental 
     and other proceeds for facility operation support.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the secretary concerned to use procedures other than open 
     competition to enter into certain transactions that would 
     result in a benefit to the public. The amendment would also 
     clarify the use by the secretary concerned of in-kind 
     consideration, rental, or other proceeds received as a result 
     of the transaction.
       The conferees intend the definition of real property 
     maintenance services used in the provision to be limited to 
     pavement clearance, refuse collection and disposal, grounds 
     and landscape maintenance, and pest control.
     Cooperative agreement authority for management of cultural 
         resources on certain sites outside military installations 
         (sec. 2824)
       The House bill contained a provision (sec. 2812) that would 
     expand the authority of the Department of Defense to enter 
     into agreements for the management of cultural resources on 
     sites outside as well as inside the boundaries of military 
     installations if such agreements would relieve or eliminate 
     current or anticipated restrictions on military operations.
       The Senate amendment contained a similar provision (sec. 
     1026).
       The Senate recedes.
     Agreements to limit encroachments and other constraints on 
         military training, testing, and operations (sec. 2825)
       The House bill contained a provision (sec. 2813) that would 
     allow agreements to limit encroachment to provide for the 
     ongoing upkeep and management of buffer zones bordering 
     defense installations, in addition to the authority to 
     acquire the property provided under current law. The House 
     bill would also allow the fair market value of a group of 
     related properties or interest to be calculated cumulatively.
       The Senate amendment contained a similar provision (sec. 
     2833) that would permit Department of Defense entities to 
     acquire an interest in property where the cost of acquiring 
     the interest exceeds the fair market value of the property, 
     if the Secretary of Defense or the secretary of a military 
     department certifies that the military value of the 
     acquisition provides benefits that justify a payment in 
     excess of the fair market value.
       The Senate recedes with an amendment that would also 
     provide the authority to acquire interests at greater than 
     fair market value if the military value of the property 
     justifies such acquisition.
     Expansion to all military departments of Army pilot program 
         for purchase of certain municipal services for military 
         installations (sec. 2826)
       The House bill contained a provision (sec. 2814) that would 
     expand the authority of the Secretary of the Army to purchase 
     local government services for Department of Defense 
     installations from the neighboring local governments. This 
     expansion would allow each of the military services to 
     conduct a pilot program with three military installations and 
     extend the pilot program until September 30, 2012.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Prohibition on commercial flights into Selfridge Air National 
         Guard Base (sec. 2827)
       The House bill contained a provision (sec. 2816) that would 
     prohibit the use of commercial service aircraft at Selfridge 
     Air National Guard Base, Michigan.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Sense of Congress on Department of Defense actions to protect 
         installations, ranges, and military airspace from 
         encroachment (sec. 2828)
       The Senate amendment contained a provision (sec. 2864) that 
     would include findings and state the sense of Congress 
     regarding development near military installations and the 
     Readiness and Environmental Protection Initiative (REPI) 
     program of the Department of Defense. The provision would 
     also require a report on ways the Department can improve or 
     make greater use of the REPI program.
       The House bill contained no similar provision.
       The House recedes with an amendment to modify the sense of 
     Congress.
     Reports on Army and Marine Corps operational ranges (sec. 
         2829)
       The Senate amendment contained a provision (sec. 2834) that 
     would expand a reporting requirement on changing requirements 
     for Army training ranges that was contained in section 2827 
     of the Military Construction Authorization Act for Fiscal 
     Year 2007 (Division B of Public Law 109-364), to include the 
     impact of the proposal contained in the fiscal year 2008 
     budget to permanently increase the size of the active-duty 
     component of the Army by 65,000 personnel. The report by the 
     Secretary of the Army would also include an assessment of the 
     potential expansion of the Joint Readiness Training Center at 
     Fort Polk, Louisiana, and an assessment of the available 
     training capacity in Germany.
       The provision would also add a similar reporting 
     requirement with respect to the proposal in the fiscal year 
     2008 budget request to expand the size of the Marine Corps by 
     27,000 personnel. This report would include an analysis of a 
     proposal under consideration by the Marine Corps to expand 
     the training range at Marine Corps Base Twentynine Palms, 
     California.
       The House bill contained no similar provision.
       The House recedes with an amendment to create a 
     freestanding report rather than a modification to a prior 
     report, and to add a requirement for the Secretary of Defense 
     to review and analyze the separate reports regarding the Army 
     and the Marine Corps and inform the congressional defense 
     committees of the steps the Office of the Secretary of 
     Defense is taking to coordinate the activities of the Army 
     and the Marine Corps on these matters.
       The conferees expect the report by the Secretary of the 
     Army to be informed by the programmatic environmental impact 
     statement that the Army has conducted on the growth of the 
     Army and, to the extent possible, by the subsequent site-
     specific assessments. The conferees are concerned that the 
     Army does not have a plan in place to provide for adequate 
     training for an additional six brigades, and that recent 
     statements of intent to accelerate the growth of the Army 
     ahead of the schedule in the fiscal year 2008 budget will 
     exacerbate this problem. The conference agreement therefore 
     modifies the Senate provision to require the report by the 
     Secretary of the Army to address the impact of any 
     acceleration plan that is included in the fiscal year 2009 
     budget request.
     Niagara Air Reserve Base, New York, basing report (sec. 2830)
       The House bill contained a provision (sec. 2817) that would 
     require the Secretary of the Air Force to submit a report 
     containing a plan of the aviation assets anticipated to be 
     based at Niagara Air Reserve Base, New York.
       The Senate amendment contained an identical provision (sec. 
     2841).
       The House recedes with an amendment that would change the 
     date on which the report is due. The plan should review C-130 
     aircraft which could be available in the future as additional 
     Primary Assigned Aircraft at Niagara Air Reserve Base, beyond 
     the 12 currently programmed for the installation, and should 
     contain an analysis of the support structure available at 
     Niagara Air Reserve Base to accommodate such additional force 
     structure.
     Report on the Pinon Canyon Maneuver Site, Colorado (sec. 
         2831)
       The House bill contained a provision (sec. 2831) that would 
     place conditions on any expansion of the Pinon Canyon 
     Maneuver Site, Colorado.

[[Page 33144]]

       The Senate amendment contained a provision (sec. 2867) that 
     would require the Secretary of the Army to provide a report 
     to the congressional defense committees on the requirement 
     for and impacts of an expansion of the Pinon Canyon Maneuver 
     Site.
       The House recedes.

                      Subtitle C--Land Conveyances

     Modification of conveyance authority, Marine Corps Base, Camp 
         Pendleton, California (sec. 2841)
       The House bill contained a provision (sec. 2838) that would 
     repeal the amendment made by section 2867 of the National 
     Defense Authorization Act for Fiscal Year 2002 (Public Law 
     107-107) to the underlying authority granted to the Secretary 
     of the Navy by section 2851 of the Strom Thurmond National 
     Defense Authorization Act for Fiscal Year 1999 (Public Law 
     105-261) to grant an easement for a road through Camp 
     Pendleton, California. The House bill would remove language 
     that limited the effect of State law with respect to this 
     road.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Grant of easement, Eglin Air Force Base, Florida (sec. 2842)
       The House bill contained a provision (sec. 2832) that would 
     grant to the Mid Bay Bridge Authority an easement for a road 
     right-of-way over land at Eglin Air Force Base, Florida to 
     facilitate the construction of a road connecting the northern 
     landfall of the Mid Bay Bridge to Florida State Highway 85.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment to provide the 
     Secretary of the Air Force the discretion to convey the 
     property for the intended purpose.
     Land conveyance, Lynn Haven Fuel Depot, Lynn Haven, Florida 
         (sec. 2843)
       The House bill contained a provision (sec. 2833) that would 
     direct the Secretary of the Air Force to convey to Florida 
     State University a parcel of land consisting of approximately 
     40 acres at Lynn Haven Fuel Depot, Lynn Haven, Florida, for 
     the purpose of permitting the university to develop the 
     property as a new satellite campus. The House bill would 
     further authorize the Secretary to accept reduced tuition or 
     scholarships for military personnel as in-kind consideration 
     for the recovery of costs to convey the property.
       The Senate amendment contained a similar provision (sec. 
     2851) that would allow the Secretary of the Air Force to 
     convey the property. The Senate amendment would further 
     provide for the reversion of the property if at any time the 
     Secretary determines that the property conveyed is not being 
     used in accordance with the purpose as specified in the 
     provision.
       The House recedes with an amendment that would replace the 
     reversionary clause with a requirement that if the property 
     is not used for the intended purpose, the university would 
     have to pay the Secretary the fair market value of the 
     property, excluding any improvements made by the university.
     Modification of lease of property, National Flight Academy at 
         the National Museum of Naval Aviation, Naval Air Station, 
         Pensacola, Florida (sec. 2844)
       The Senate amendment contained a provision (sec. 2857) that 
     would amend section 2850(a) of the Military Construction 
     Authorization Act for Fiscal Year 2001 (Public Law 106-398) 
     by authorizing additional educational purposes to the list of 
     uses for which the Secretary of the Navy would be permitted 
     to lease certain real property, without consideration, to the 
     Naval Aviation Museum Foundation.
       The House bill contained no similar provision.
       The House recedes.
     Land exchange, Detroit, Michigan (sec. 2845)
       The Senate amendment contained a provision (sec. 2855) that 
     would authorize the Commandant of the Coast Guard to enter 
     into an equal-value land exchange with the City of Detroit, 
     Michigan.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment regarding the 
     environmental remediation of the parcels to be exchanged.
     Transfer of jurisdiction, former Nike missile site, Grosse 
         Ile, Michigan (sec. 2846)
       The House bill contained a provision (sec. 2835) that would 
     transfer jurisdiction over property comprising a former Nike 
     missile site on Grosse Ile, Michigan, from the Environmental 
     Protection Agency to the Department of the Interior to 
     incorporate the site into the Detroit River International 
     Wildlife Refuge.
       The Senate amendment contained a similar provision (sec. 
     2856).
       The Senate recedes with an amendment that would clarify the 
     process used to determine the standard of remediation 
     activities to be conducted and would delete the requirement 
     that a specific Corps of Engineers district carry out the 
     remediation of the property.
     Modification to land conveyance authority, Fort Bragg, North 
         Carolina (sec. 2847)
       The Senate amendment contained a provision (sec. 2852) that 
     would amend section 2836 of the Military Construction 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85) to 
     authorize the Secretary of the Army to convey, without 
     consideration, to Harnett County, North Carolina, a parcel of 
     real property totaling 137 acres at Fort Bragg, North 
     Carolina, for educational purposes and the construction of 
     public school structures. The provision would also authorize 
     the Secretary to require the County to cover administrative 
     and other costs for the conveyance.
       The House bill contained no similar provision.
       The House recedes.
     Land conveyance, Lewis and Clark United States Army Reserve 
         Center, Bismarck, North Dakota (sec. 2848)
       The Senate amendment contained a provision (sec. 2854) that 
     would permit the Secretary of the Army to convey, without 
     consideration, approximately 2 acres of real property, 
     including improvements, at a reserve center in Bismarck, 
     North Dakota, to the United Tribes Technical College, to 
     support education and training at the college.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Land exchange, Fort Hood, Texas (sec. 2849)
       The House bill contained a provision (sec. 2836) that would 
     authorize the Secretary of the Army to convey approximately 
     200 acres at Fort Hood, Texas, to the City of Copperas Cove, 
     Texas, to permit the City of Copperas Cove, Texas, to improve 
     local roads for the installation and the community.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                      Subtitle D--Energy Security

                       Items of Special Interest

     Energy Conversation Forum
       The conferees are aware that, in the spring of 2006, the 
     Secretary of Defense initiated and continues to lead a 
     monthly interagency seminar program known as the Energy 
     Conversation Forum. The conferees are very encouraged that 
     other departments and agencies such as the Department of 
     Energy, the Department of State, the Department of 
     Agriculture, the Environmental Protection Agency, and the 
     intelligence community have agreed to actively participate in 
     this important initiative.
       The conferees acknowledge the considerable efforts of the 
     Energy Conversation Forum and continue to support the 
     Secretary's interagency energy education program including 
     the energy seminar program and energy interagency networks. 
     The conferees recognize that the energy security challenges 
     faced by the Department of Defense, the U.S. Government as a 
     whole, and the Nation cannot be solved by a single agency. 
     The conferees strongly believe that all federal agencies must 
     work together to achieve necessary national energy objectives 
     of conservation and efficiency. Therefore, the conferees 
     encourage the Secretary to continue efforts such as the 
     Energy Conversation Forum to enhance information exchange as 
     a necessary first step in addressing the complex energy 
     issues facing this nation.
     Report on water conservation projects
       The conferees direct the Secretary of Defense to submit to 
     the congressional defense committees a report on water 
     conservation efforts and methods in the Department of 
     Defense. The report should describe the Department's 
     investment, by type, in water conservation programs in fiscal 
     years 2006, 2007, and 2008; the investment levels necessary 
     to meet the Department's water conservation requirements 
     under Executive Order 13423 of January 24, 2007; an 
     assessment of whether water conservation projects should 
     continue to be funded inside the Energy Conservation 
     Investment Program or should instead be financed in a 
     separate water conservation program; and an assessment of the 
     demonstrated or potential return on investment of various 
     water conservation technologies including metering, water 
     control systems, xeriscaping, waterless urinals, utility 
     system upgrades, and water efficiency standards for new or 
     replacement equipment and appliances in Department of Defense 
     facilities. The report should also include any proposed 
     legislative changes the Secretary believes to be necessary to 
     allow the Department to meet its water conservation goals. 
     The report should be submitted not later than March 31, 2008.

                     Legislative Provisions Adopted

     Repeal of congressional notification requirement regarding 
         cancellation ceiling for Department of Defense energy 
         savings performance contracts (sec. 2861)
       The House bill contained a provision (sec. 2851) that would 
     repeal section 2853 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364), 
     which lowered the notification ceiling for the Department of 
     Defense to $7.0 million, and would thereby restore the 
     notification ceiling to $10.0 million, consistent with the 
     ceiling established for all other government agencies in 
     section 8287(a)(2)(D)(iii) of title 42, United States Code.
       The Senate amendment contained no similar provision.

[[Page 33145]]

       The Senate recedes.
     Definition of alternative fueled vehicle (sec. 2862)
       The Senate amendment contained a provision (sec. 1092) that 
     would revise the definition of alternative fueled vehicle in 
     section 303(3) of the Energy Policy Act of 1992 (42 U.S.C. 
     13211(3)).
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Use of energy efficient lighting fixtures and bulbs in 
         Department of Defense facilities (sec. 2863)
       The House bill contained a provision (sec. 2853) that would 
     require that each building constructed or significantly 
     altered by the Department of Defense is equipped, to the 
     maximum extent feasible, with lighting fixtures and bulbs 
     that are energy efficient. Further, the provision would 
     require that each lighting fixture or bulb that is replaced 
     in the normal course of maintenance of buildings under the 
     jurisdiction of the Secretary of Defense or the secretary of 
     a military department is replaced, to the maximum extent 
     feasible, with a lighting fixture or bulb that is energy 
     efficient. The provision would allow the Secretary of Defense 
     to waive the requirements of the section under certain 
     conditions.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Reporting requirements relating to renewable energy use by 
         Department of Defense to meet Department electricity 
         needs (sec. 2864)
       The House bill contained a provision (sec. 2854) that would 
     require the Secretary of Defense to ensure that the 
     Department of Defense produces or procures, from renewable 
     energy sources, 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. The House provision would also prohibit the 
     use of leases, privatization, service contracts, or other 
     third-party financing means to achieve the 25 percent goal.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Under Secretary of Defense for Acquisition, Technology, and 
     Logistics to report annually on progress made by the 
     Department toward meeting the goal of producing or procuring 
     at least 25 percent renewable energy to meet the Department's 
     electricity needs by 2025. These reports would include a 
     description of the financing methods used to procure 
     renewable energy in the previous fiscal year and a projection 
     of the Department's future use of renewable energy through 
     fiscal year 2025.

                       Subtitle E--Other Matters

     Revised deadline for transfer of Arlington Naval Annex to 
         Arlington National Cemetery (sec. 2871)
       The House bill contained a provision (sec. 2861) that would 
     extend the current deadline for the transfer of approximately 
     36 acres of land at the Arlington Naval Annex to the 
     Secretary of the Army for incorporation into Arlington 
     National Cemetery from January 1, 2010 to no later than 
     January 1, 2013.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment to extend the existing 
     deadline for 1 additional year, to January 1, 2011.
     Transfer of jurisdiction over Air Force Memorial to 
         Department of the Air Force (sec. 2872)
       The House bill contained a provision (sec. 2862) that would 
     require the Secretary of the Army to transfer the 
     administrative jurisdiction, custody, and control of the Air 
     Force Memorial to the Secretary of the Air Force.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the Secretary of the Army to transfer the administrative 
     jurisdiction, custody, and control of the Air Force Memorial 
     to the Secretary of the Air Force and would provide that if 
     the Air Force Memorial is transferred to the Secretary of the 
     Air Force, the United States shall not pay any costs to 
     maintain or repair the Air Force Memorial.
       The conferees remain concerned about the requests by both 
     private foundations and the military services to use 
     appropriated funds for the maintenance of military memorials 
     and museums at the expense of other military requirements. 
     The conferees expect that original agreements signed by the 
     private foundations for the design, construction, and 
     maintenance of military memorials are carried out in good 
     faith without transferring a perpetual cost for maintenance 
     and repair of the memorial to the military services.
     Report on plans to replace the monument at the Tomb of the 
         Unknowns at Arlington National Cemetery, Virginia (sec. 
         2873)
       The Senate amendment contained a provision (sec. 1048) that 
     would require the Secretary of the Army and the Secretary of 
     Veterans Affairs to submit a report to Congress evaluating 
     the feasibility and advisability of repairing or replacing 
     the monument at the Tomb of the Unknowns in Arlington 
     National Cemetery, Virginia. The Senate amendment would 
     prohibit either Secretary from taking any action to replace 
     the monument until 180 days after the report had been 
     submitted to Congress.
       The House bill contained no similar provision.
       The House recedes.
     Increased authority for repair, restoration, and preservation 
         of Lafayette Escadrille Memorial, Marnes-la-Coquette, 
         France (sec. 2874)
       The Senate amendment contained a provision (sec. 1089) that 
     would amend section 1065 of the National Defense 
     Authorization Act for fiscal year 2002 (Public Law 107-107) 
     to increase by $500,000 the amount the Secretary of the Air 
     Force is authorized to contribute towards the ongoing repair, 
     restoration, and preservation of the Lafayette Escadrille 
     Memorial in Marnes-la-Coquette, France.
       The House bill contained no similar provision.
       The House recedes.
     Addition of Woonsocket local protection project (sec. 2875)
       The Senate amendment contained a provision (sec. 2863) that 
     would require the Secretary of the Army to assume 
     responsibility for the operation and maintenance of the 
     Woonsocket local protection project in Rhode Island.
       The House bill contained no similar provision.
       The House recedes with an amendment requiring the city of 
     Woonsocket to convey the property to the Secretary of the 
     Army at no cost as a condition of the Secretary's assumption 
     of responsibility for the project.
     Repeal of moratorium on improvements at Fort Buchanan, Puerto 
         Rico (sec. 2876)
       The Senate amendment contained a provision (sec. 2868) that 
     would repeal those aspects of the moratorium on construction 
     at Fort Buchanan, Puerto Rico that remain in effect after 
     exceptions to that moratorium were enacted in section 2871 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.
     Establishment of national military working dog teams monument 
         on suitable military installation (sec. 2877)
       The House bill contained a provision (sec. 2863) that would 
     authorize the Secretary of Defense to enter into an agreement 
     with National War Dogs Monument, Inc., to establish and 
     maintain, at a suitable location at Fort Belvoir, Virginia, 
     or another military installation in the United States, a 
     national monument to honor the sacrifice and service of 
     United States Armed Forces working dog teams that have 
     participated in military operations of the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report regarding removal of missiles from 564th Missile 
         Squadron (sec. 2878)
       The Senate amendment contained a provision (sec. 1033) that 
     would direct the Secretary of Defense to submit a report on 
     the feasibility of establishing an association between the 
     120th Fighter Squadron of the Montana Air National Guard and 
     active duty personnel stationed at Malmstrom Air Force Base. 
     The provision would also prevent more than 40 missiles from 
     being removed from the 564th Missile Squadron until 15 days 
     after the report was submitted.
       The House bill contained no similar provision.
       The House recedes.
     Report on condition of schools under jurisdiction of 
         Department of Defense education activity (sec. 2879)
       The Senate amendment contained a provision (sec. 2861) that 
     would require the Secretary of Defense to submit to the 
     congressional defense committees a report, by March 1, 2008, 
     on the condition of schools under the jurisdiction of the 
     Department of Defense Education Activity (DODEA).
       This provision would require the Secretary of Defense to 
     report on the standards for acceptable sizes and conditions 
     of DODEA school facilities, to assess the existing inventory 
     of facilities, to develop a master plan and investment 
     strategy to correct deficiencies, and to submit this plan to 
     the congressional defense committees.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Report on facilities and operations of Darnall Army Medical 
         Center, Fort Hood Military Reservation, Texas (sec. 2880)
       The Senate amendment contained a provision (sec. 1047) that 
     would require the Secretary of Defense to submit to the 
     congressional defense committees a report assessing the 
     facilities and operations of the Darnall Army Medical Center 
     at Fort Hood Military Reservation, Texas, including a plan 
     for correcting any deficiencies identified in the report.
       The House bill contained no similar provision.
       The House recedes.

[[Page 33146]]


     Report on feasibility of establishing a regional disaster 
         response center at Kelly Air Field, San Antonio, Texas 
         (sec. 2881)
       The Senate amendment contained a provision (sec. 1080) that 
     would require the Secretary of Defense, in coordination with 
     the Secretary of Homeland Security, to submit to Congress a 
     report on the feasibility of establishing a national disaster 
     response center at Kelly Air Field in San Antonio, Texas, to 
     plan, coordinate, and direct the federal, State, and local 
     response to regional disasters.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require a 
     report on a regionally oriented disaster response center at 
     Kelly Air Field. The amendment would also add findings on the 
     need for increased disaster response capabilities and would 
     make clarifying changes.
     Naming housing facility at Fort Carson, Colorado, in honor of 
         the Honorable Joel Hefley, a former member of the United 
         States House of Representatives (sec. 2882)
       The House bill contained a provision (sec. 2864) that would 
     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, United States Code, in honor of 
     former Representative Joel Hefley.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Naming Navy and Marine Corps Reserve Center at Rock Island, 
         Illinois, in honor of the Honorable Lane Evans, a former 
         member of the United States House of Representatives 
         (sec. 2883)
       The House bill contained a provision (sec. 2865) that would 
     designate the Navy and Marine Corps Reserve Center at Rock 
     Island, Illinois, in honor of former Representative Lane 
     Evans.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Naming a research laboratory at Air Force Rome Research Site, 
         Rome, New York, in honor of the Honorable Sherwood L. 
         Boehlert, a former member of the United States House of 
         Representatives (sec. 2884)
       The House bill contained a provision (sec. 2866) that would 
     designate a new laboratory building at the Air Force Rome 
     Research Site, Rome, New York, as the ``Sherwood L. Boehlert 
     Engineering Center''.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Naming an administrative building at Joint Systems 
         Manufacturing Center, Lima, Ohio, in honor of the 
         Honorable Michael G. Oxley, a former member of the United 
         States House of Representatives (sec. 2885)
       The House bill contained a provision (sec. 2867) 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 Senate amendment contained no similar provision.
       The Senate recedes.
     Naming of Logistics Automation Training Facility, Army 
         Quartermaster Center and School, Fort Lee, Virginia, in 
         honor of General Richard H. Thompson (sec. 2886)
       The House bill contained a provision (sec. 2868) that would 
     designate the Logistics Automation Training Facility of the 
     Army Quartermaster Center and School at Fort Lee, Virginia, 
     as the ``General Richard H. Thompson Logistics Automation 
     Training Facility''.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority to relocate Joint Spectrum Center to Fort Meade, 
         Maryland (sec. 2887)
       The Senate amendment contained a provision (sec. 2843) that 
     would authorize the Secretary of Defense to carry out an 
     agreement to relocate the Joint Spectrum Center (JSC) from 
     Annapolis, Maryland to Fort Meade, Maryland or another 
     military installation if the Secretary determined that the 
     relocation would be in the best interest of national security 
     and the agreement provided equitable terms to facilitate the 
     relocation.
       The House bill contained no similar provision.
       The House recedes with an amendment that would designate 
     any new construction required as part of the agreement to be 
     authorized in accordance with section 2802 of title 10, 
     United States Code.
       The conferees encourage the Department of Defense to 
     initiate discussions with Anne Arundel county and their 
     developer to attempt to reach consensus on equitable terms 
     for such relocation.
       The conferees recognize that critical missions at the JSC 
     at Annapolis are being conducted in leased facilities that 
     may not meet the anti-terrorism and force protection (AT-FP) 
     standards adopted by the Department of Defense in 2005. 
     Therefore, the conferees direct the Secretary of Defense to 
     submit to the congressional defense committees by May 30, 
     2008, a report on the facility at Annapolis containing the 
     following:
       (1) the results of a security and vulnerability assessment 
     for the facility;
       (2) a description of the plan to ensure the facility meets 
     all of the Department's AT-FP standards; and
       (3) an analysis of the investment required for the facility 
     to meet AT-FP standards.

                   Legislative Provisions Not Adopted

     General military construction transfer authority
       The Senate amendment contained a provision (sec. 2811) that 
     would provide an authority to transfer up to $200.0 million 
     in military construction authorizations between projects for 
     fiscal year 2008.
       The House bill contained no similar provision.
       The Senate recedes.
     Modification of land management restrictions applicable to 
         Utah national defense lands
       The Senate amendment contained a provision (sec. 2862) that 
     would sunset the restrictions contained in section 2815 of 
     the National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65) on October 1, 2013, and would also 
     clarify the definition of Utah national defense lands in that 
     Act.
       The House bill contained no similar provision.
       The Senate recedes.
     Report on opportunities for leveraging funds of the 
         Department of Defense and States to prevent disruption in 
         event of electric grid or pipeline failures
       The House bill contained a provision (sec. 2852) that would 
     require the Secretary of Defense, acting through the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics, to submit to the congressional defense committees 
     a report on approaches by which the Department of Defense may 
     leverage federal and State resources to harden critical 
     infrastructure to prevent disruptions in the event of major 
     electric grid, natural gas, or petroleum pipeline failures.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees direct the Secretary of Defense, acting 
     through the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics, to submit a report on approaches 
     by which the Department of Defense may contribute or receive 
     funds and other resources, which when combined with resources 
     from other funding sources, such as State System Benefit 
     Trust Funds, Clean Air Act State Implementation Funds, and 
     State Homeland Security Critical Infrastructure Grants, will 
     accelerate efforts to harden critical functions on and around 
     military and security facilities to prevent disruptions in 
     the event of major electric grid, natural gas, or petroleum 
     pipeline failures. This report should be submitted to the 
     congressional defense committees not later than 180 days 
     after the date of the enactment of this Act.
     Report on water conservation projects
       The Senate amendment contained a provision (sec. 2865) that 
     would require the Secretary of Defense to submit to the 
     congressional defense committees a report on water 
     conservation efforts and methods in the Department of Defense 
     and the investment levels necessary to meet the Department's 
     water conservation requirements under Executive Order 13423.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to direct the Secretary of Defense to 
     submit a report on this matter. That reporting requirement is 
     contained elsewhere in the statement of managers.
     Retention of proceeds from enhanced use leases at Selfridge 
         Air National Guard Base
       The House bill contained a provision (sec. 2815) that would 
     direct that all proceeds derived from the execution of an 
     enhanced use lease (EUL) at Selfridge Air National Guard Base 
     (ANGB), Michigan be retained by that installation.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees understand that the proceeds of the proposed 
     EUL at Selfridge ANGB are currently anticipated to be 
     provided entirely on an in-kind basis rather than in cash. 
     The conferees have been assured that the Air Force intends to 
     use the proceeds from this lease at Selfridge ANGB and that 
     if the benefit received by the Air Force ever exceeds what 
     Selfridge ANGB could put to effective use, the remainder 
     would be applied to other Air National Guard facilities 
     within the State of Michigan.

      TITLE XXIX--WAR RELATED AND EMERGENCY MILITARY CONSTRUCTION 
                             AUTHORIZATIONS

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                     Legislative Provisions Adopted

     Authorized Army construction and land acquisition projects 
         (sec. 2901)
       The House bill contained a provision (sec. 1515) that would 
     authorize $526.5 million in fiscal year 2008 for Army 
     military construction projects related to operations in Iraq 
     and Afghanistan.
       The Senate amendment contained a similar provision (sec. 
     2901) that would authorize $752.7 million for such projects.
       The Senate recedes with an amendment that would authorize 
     $1.26 billion in fiscal year 2008 for Army military 
     construction projects.
       The conference agreement includes funding for additional 
     projects not included in the House bill or the Senate 
     amendment that were requested by the President in his budget 
     amendment submitted on October 22, 2007.
       The conferees agree to the reductions in the House bill to 
     power plants proposed for construction in Iraq. The conferees 
     do not believe such projects, which would provide mainly 
     long-term benefits or return on investment, should be 
     included in the absence of any agreement for a long-term 
     United States presence in Iraq.
       The conferees also agree to prohibit the obligation of 
     funds for a communication center at Camp Arifjan, Kuwait and 
     a brick factory at Camp Cropper, Iraq until the Secretary of 
     Defense provides a report to the congressional defense 
     committees describing the rationale for and policy 
     implications of these projects. The conferees note that the 
     legal implications of having detainees under the control of 
     the United States performing labor in a brick factory have 
     not been explained to Congress to date.
     Authorized Navy construction and land acquisition projects 
         (sec. 2902)
       The House bill contained a provision (sec. 1515) that would 
     authorize $169.1 million in fiscal year 2008 for Navy 
     military construction projects to support increasing the size 
     of the Marine Corps inside the United States.
       The Senate amendment contained no similar provision, but 
     included funding for those projects in title XXII.
       The Senate recedes with an amendment that would authorize 
     $198.8 million in fiscal year 2008 for Navy military 
     construction projects.
       The conference agreement includes funding for additional 
     projects not included in the House bill or the Senate 
     amendment that were requested by the President in his budget 
     amendment submitted on October 22, 2007.
       The conferees did not authorize funding requested for two 
     projects in Djibouti. The conferees share the concerns 
     expressed in the Senate report accompanying the Military 
     Construction and Veterans Affairs and Related Agencies 
     Appropriations Bill, 2008, that large investments in military 
     construction in Djibouti are not justified at this time given 
     the absence of a strategy for the new Africa Command or a 
     long-term lease for the land these facilities in Djibouti 
     would be built on. Furthermore, the conferees note that the 
     determination to place a project in a supplemental request 
     should not be determined by the location of the installation, 
     but rather on the enduring nature of the investment. 
     Considering Djibouti's long-term strategic interest to the 
     United States and the size of the investment proposed, the 
     Department of Defense should generally insert future military 
     construction projects for Djibouti into the normal base 
     budget request. The conferees urge the Department to address 
     these concerns and resubmit these projects in a future budget 
     request, if appropriate.
     Authorized Air Force construction and land acquisition 
         projects (sec. 2903)
       The conferees agree to a provision that would authorize 
     $258.7 million in military construction projects for the Air 
     Force in support of operations in Iraq and Afghanistan.
       The House and Senate bills included no similar provisions.
       The conference agreement includes funding for additional 
     projects that were requested by the President in his budget 
     amendment submitted on October 22, 2007.
       The conferees have not authorized funding of $40.0 million 
     requested for replacement of expeditionary facilities at Al 
     Udeid Air Base, Qatar. The conferees are concerned that 
     permanent facilities for the same purpose were constructed 
     and completed in March 2007 from amounts provided in 2004 for 
     emergency supplemental appropriations, but currently cannot 
     be inhabited due to a lack of electricity. The conferees note 
     that the Department of the Air Force may be in violation of 
     section 2801 of title 10, United States Code, which states, 
     ``a military construction project includes all construction 
     work, or any contribution authorized by this chapter, 
     necessary to produce a complete and useable facility. . .'' 
     The conferees note that the Air Force predicts that the new 
     dormitories, dining halls, and support facilities at Al Udeid 
     Air Base may not be ready for occupancy until March 2008, and 
     may require the use of portable electrical generators at 
     significant further expense to the Air Force. The conferees 
     direct the Secretary of the Air Force to ensure the current 
     facilities are complete and useable with a permanent power 
     source before requesting any further authorizations for new 
     facilities at Al Udeid Air Base, Qatar.
       The conferees have not authorized funding of $6.3 million 
     requested to relocate an expeditionary force site at Masirah 
     Island Air Base, Oman. The conferees note that the project is 
     required to relocate a current expeditionary site per the 
     request of the host nation, and that according to the budget 
     justification documents for this project, the ``current U.S. 
     mission requirements dictate the need for planned troop 
     beddowns in the near term at Masirah Island.'' The conferees 
     note that other statutory authorities exist to permit field 
     commanders to meet such operational requirements.
     Authorized defense agencies construction and land acquisition 
         projects (sec. 2904)
       The conferees agree to a provision that would authorize 
     $27.6 million in military construction projects for the 
     defense agencies in support of operations in Iraq and 
     Afghanistan and to provide facilities for the treatment of 
     wounded service members.
       The House and Senate bills included no similar provisions.
       The conference agreement includes funding for additional 
     projects that were requested by the President in his budget 
     amendment submitted on October 22, 2007.
     Authorized base closure and realignment activities funded 
         through Department of Defense Base Closure Account 2005 
         and related authorization of appropriations (sec. 2905)
       The conferees agree to a provision that would authorize 
     $415.9 million for military construction projects, planning, 
     and design, and operation and maintenance for base closure 
     activities related to the construction of new medical 
     facilities at the National Naval Medical Center, Bethesda, 
     Maryland, and Fort Belvoir, Virginia.
       The House bill and Senate amendment included no similar 
     provisions.
       This funding was requested by the President in his budget 
     amendment submitted to Congress on October 22, 2007 and is in 
     addition to the funding for these same projects authorized in 
     title XXVII of this Act, which reflects the original February 
     budget request.

 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

     Overview
       Title XXXI authorizes appropriations for atomic energy 
     defense activities of the Department of Energy for fiscal 
     year 2008, including: the purchase, construction, and 
     acquisition of plant and capital equipment; research and 
     development; nuclear weapons activities; nuclear 
     nonproliferation 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 five categories: (1) National 
     Nuclear Security Administration (NNSA); (2) defense 
     environmental cleanup; (3) other defense activities; (4) 
     defense nuclear waste disposal; and (5) energy security and 
     assurance.
       The budget request for atomic energy defense activities at 
     the Department included $15.9 billion for atomic energy 
     defense activities, a less than 1 percent increase above the 
     fiscal year 2007 operating plan level. Of the total amount 
     requested:
       (1) $9.4 billion is for NNSA, of which
       (a) $6.5 billion is for weapons activities,
       (b) $1.7 billion is for defense nuclear nonproliferation 
     activities, including $50.0 million for fiscal year 2008 war-
     related funding,
       (c) $808.2 million is for naval reactors, and
       (d) $394.7 million is for the Office of the Administrator;
       (2) $5.4 billion is for defense environmental cleanup;
       (3) $764.0 million is for other defense activities; and
       (4) $292.0 million is for defense nuclear waste disposal.
       The budget request also included $5.9 million for energy 
     security and assurance within energy supply.
       The conferees agree to authorize $16.1 billion for atomic 
     energy defense activities, an increase of $193.3 million 
     above the budget request.
       Of this amount, the conferees agree to authorize:
       (1) $9.6 billion for NNSA, of which
       (a) $6.5 billion would be for weapons activities, a 
     decrease of $45.7 million below the budget request,
       (b) $2.0 billion would be for defense nuclear 
     nonproliferation, an increase of $230.0 million above the 
     budget request,
       (c) $808.2 million would be for naval reactors, the amount 
     of the budget request, and
       (d) $400.0 million would be for the Office of the 
     Administrator, an increase of $5.0 million above the budget 
     request;
       (2) $5.4 billion would be for defense environmental cleanup 
     activities, an increase of $4.0 million above the budget 
     request;
       (3) $764.0 million would be for other defense activities, 
     the amount of the budget request; and
       (4) $292.0 million would be for defense nuclear waste 
     disposal, the amount of the budget request.

[[Page 33152]]

       The conferees agree to authorize $5.9 million for energy 
     security and assurance, the amount of the budget request.
       The following table summarizes the budget request and the 
     authorizations:

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[[Page 33170]]

                        Item of Special Interest

     International Atomic Energy Agency nuclear fuel bank
       The conferees support the creation of an international 
     nuclear fuel bank under the auspices of the International 
     Atomic Energy Agency (IAEA). Some countries--including Iran--
     have justified the need for developing their own uranium 
     enrichment and reprocessing facilities, which could make 
     nuclear reactor fuel or nuclear weapons-usable materials, 
     based on the claim that they could not trust foreign 
     countries to reliably supply nuclear fuel for their reactors. 
     The creation of international mechanisms to supplement the 
     international nuclear fuel market could remove the need for 
     national enrichment and reprocessing capabilities in states 
     that do not currently possess them, and support global 
     nonproliferation efforts and discourage new countries from 
     developing national uranium enrichment facilities.
       The conferees note that the House has already passed H.R. 
     885, the International Nuclear Fuel for Peace and 
     Nonproliferation Act, and note that the Senate Committee on 
     Foreign Relations has reported S. 1138, the Nuclear 
     Safeguards and Supply Act of 2007. Conferees note that 
     additional work will be required in order to provide 
     appropriate guidance to the executive branch regarding 
     criteria for access by foreign countries to any fuel bank 
     established at the IAEA with materials or funds provided by 
     the United States.

                     Legislative Provisions Adopted

     National Nuclear Security Administration (sec. 3101)
       The House bill contained a provision (sec. 3101) that would 
     authorize $9.5 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, an increase of $100.0 million 
     above the budget request.
       The Senate amendment contained a similar provision (sec. 
     3101) that would authorize $9.5 billion, an increase of 
     $102.9 million above the budget request.
       The conferees agree to authorize $9.6 billion for NNSA, an 
     increase of $189.3 million above the budget request.
       The budget request included $6.5 billion for weapons 
     activities. The House bill would authorize $6.5 billion, the 
     amount of the budget request. The Senate amendment would 
     authorize $6.5 billion, a decrease of $39.1 million below the 
     budget request. The conferees agree to authorize $6.5 
     billion, a decrease of $45.7 million below the budget 
     request.
       Within weapons activities, the conferees agree to authorize 
     $66.0 million for the Reliable Replacement Warhead, a 
     decrease of $22.8 million below the budget request. The 
     conferees agree to authorize an increase of $20.0 million 
     above the budget request for weapons dismantlement and 
     disposition. The budget request included $14.9 million for 
     responsive infrastructure. The conferees agree to authorize 
     no funds for this item. The conferees agree to authorize an 
     increase of $15.1 million above the budget request in 
     inertial confinement fusion ignition and high yield campaign 
     as follows: a $3.3 million increase for ignition; a $2.5 
     million increase for National Ignition Facility (NIF) 
     diagnostics, cryogenics, and experimental support; and a $9.3 
     million increase in facility operations and target 
     production. The conferees also agree to authorize an increase 
     of $5.0 million above the budget request in the advanced 
     simulation and computing campaign to support NIF 
     computational needs. The budget request included $24.9 
     million for the consolidated plutonium center. The conferees 
     agree to authorize no funds for this item. In readiness in 
     technical base and facilities, the conferees agree to 
     authorize the following increases above the budget request in 
     operations of facilities: a $36.8 million increase for 
     infrastructure repair at the Pantex Plant; and a $10.0 
     million increase for the Y-12 complex, composed of $5.0 
     million for infrastructure repair and $5.0 million for 
     activities in support of the Uranium Processing Facility. The 
     conferees agree to authorize $262.7 million for the 
     facilities and infrastructure recapitalization program, a 
     decrease of $31.0 million below the budget request. Within 
     safeguards and security, the conferees agree to authorize an 
     increase of $20.0 million above the budget request to address 
     training and equipment shortages at NNSA sites. Within 
     weapons activities, the conferees agree to authorize the use 
     of $55.0 million of prior year unobligated balances as a 
     funding adjustment to offset fiscal year 2008 requirements.
       The budget request included $1.7 billion for defense 
     nuclear nonproliferation, including $50.0 million for fiscal 
     year 2008 war-related funding. The conferees agree to 
     authorize $2.0 billion, an increase of $180.0 million above 
     the base budget request and the amount requested for fiscal 
     year 2008 war-related funding (the authorization of $50.0 
     million for fiscal year 2008 war-related funding is provided 
     elsewhere in Division C of this Act). The conferees agree to 
     authorize an additional $50.0 million in funding for the 
     Nonproliferation and Verification Research and Development 
     program for proliferation detection including next-generation 
     nuclear detection technologies, nuclear explosion monitoring, 
     and technologies to support improved nuclear material 
     forensic capabilities. The conferees agree to authorize an 
     additional $13.0 million in funding for the Nonproliferation 
     and International Security program as follows: an increase of 
     $8.0 million for Global Initiatives for Proliferation 
     Prevention; and an increase of $5.0 million for Dismantlement 
     and Transparency, including technical support to the Six 
     Party process on the denuclearization of the Korean 
     Peninsula. The conferees agree to authorize an additional 
     $30.0 million in funding for the International Nuclear 
     Materials Protection and Cooperation program as follows: an 
     increase of $20.0 million for the Second Line of Defense Core 
     program and Megaports; an increase of $3.0 million to reduce 
     the risk of theft and proliferation of weapons-usable nuclear 
     materials from the Russian Federation; and an increase of 
     $7.0 million to ensure the sustainability of weapons of mass 
     destruction nonproliferation programs in Russia. The 
     conferees agree to authorize an additional $10.0 million in 
     funding for the Elimination of Weapons-Grade Plutonium 
     Production program to accelerate shutdown of the plutonium 
     producing reactor at Zheleznogorsk, Russia. The conferees 
     agree to authorize an additional $77.0 million in funding for 
     the Global Threat Reduction Initiative as follows: an 
     increase of $5.0 million for Reduced Enrichment for Research 
     and Test Reactors, including the conversion of research and 
     test reactors from the use of highly-enriched uranium to low-
     enriched uranium; an increase of $2.0 million for U.S. 
     Radiological Threat Reduction; an increase of $40.0 million 
     for International Radiological Threat Reduction; and an 
     increase of $30.0 million for Emerging Threats and Gap 
     Material. The conferees agree to authorize $50.0 million for 
     the International Atomic Energy Agency nuclear fuel bank.
       The budget request included $808.2 million for the naval 
     reactors program. The conferees agree to authorize this 
     program at the requested level. The budget request included 
     $394.7 million for the Office of the Administrator. The 
     conferees agree to authorize an increase of $5.0 million 
     above the budget request within the Office of the 
     Administrator program direction account for the purposes of 
     expanding and strengthening staff capacity, capabilities, and 
     resources in support of defense nuclear nonproliferation 
     activities.
     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 2008, the 
     amount of the budget request.
       The Senate amendment contained a similar provision (sec. 
     3102) that would authorize $5.4 billion for defense 
     environmental cleanup, an increase of $47.0 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 $4.0 million above the budget request. The 
     conferees agree to authorize $9.0 million for project 08-D-
     414/PED 08-01, the plutonium vitrification facility at the 
     Savannah River Site, a decrease of $6.0 million below the 
     budget request. The conferees agree to authorize an 
     additional $10.0 million for technology development and 
     deployment.
     Other defense activities (sec. 3103)
       The House bill contained a provision (sec. 3103) that would 
     authorize $764.0 million for the Department of Energy for 
     other defense activities for fiscal year 2008, the amount of 
     the budget request.
       The Senate amendment contained a similar provision (sec. 
     3103) that would authorize $664.1 million for the Department 
     of Energy for other defense activities, a decrease of $100.9 
     million below the budget request.
       The conferees agree to include a provision that would 
     authorize $764.0 million, the amount of the budget request.
     Defense nuclear waste disposal (sec. 3104)
       The House bill contained a provision (sec. 3104) that would 
     authorize $292.0 million for defense nuclear waste disposal, 
     the amount of the budget request.
       The Senate amendment contained a similar provision (sec. 
     3104) that would authorize $242.0 million, a decrease of 
     $50.0 million below the budget request.
       The conferees agree to include a provision that would 
     authorize $292.0 million, the amount of the budget request.
     Energy security and assurance (sec. 3105)
       The House bill contained a provision (sec. 3105) that would 
     authorize $6.0 million for the Department of Energy for other 
     atomic energy defense activities for fiscal year 2008 for 
     energy security and assurance programs, an increase of 
     $140,000 above the budget request.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     $5.9 million for energy security and assurance programs, the 
     amount of the budget request.
       The conferees reluctantly provide the funds requested in 
     acknowledgment of the national security nexus for a limited 
     set of activities conducted within the Department of Energy 
     Office of Electricity Delivery and

[[Page 33171]]

     Energy Reliability. If the Department intends to continue to 
     request some portion of funds for this office within budget 
     code 050, the conferees expect a fulsome description of and 
     justification for this funding; items absent from prior 
     budget requests.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

     Reliable Replacement Warhead program (sec. 3111)
       The Senate amendment contained a provision (sec. 3111) that 
     would place a cap on the funding available for the Reliable 
     Replacement Warhead (RRW) program and prohibit funding for 
     any RRW activities beyond phase 2A.
       The House bill contained no similar provision.
       The House recedes with an amendment that would prohibit the 
     National Nuclear Security Administration (NNSA) from using 
     fiscal year 2008 funds to support activities under the RRW 
     program beyond phase 2A of the phased nuclear weapons 
     acquisition process.
       The conferees note that House Report 110-146 set forth the 
     view of Committee on Armed Services of the House of 
     Representatives that the NNSA RRW program activities should 
     not exceed phase 2A activities in fiscal year 2008. The 
     conferees have provided $66.0 million for RRW phase 2A 
     activities.
       The conferees believe clarification of the United States' 
     long-term nuclear weapons policy is a prerequisite to any 
     major decisions on the size and composition of the nuclear 
     weapons stockpile and the complex that supports it. To that 
     end, the conference agreement includes section 1062 
     establishing a congressionally appointed bipartisan 
     commission to examine U.S. nuclear policy and strategic 
     posture, and section 1070, requiring that a new Nuclear 
     Posture Review be submitted to Congress in December 2009.
       On September 7, 2007, JASON completed a technical review of 
     the RRW with a focus on the Lawrence Livermore National 
     Laboratory (LLNL)/Sandia National Laboratory design, now 
     known as WR1. The review was undertaken at the request of the 
     NNSA. In this review, JASON made four findings with 
     accompanying recommendations. The four findings are:
       (1) Certification for WR1 will require new experiments, 
     enhanced computational tools, and improved scientific 
     understanding of the connection of the results from such 
     experiments and simulations to the existing nuclear explosive 
     test data.
       (2) The physical understanding of the enhanced surety 
     features, which address a top requirement for WR1, is still 
     under development.
       (3) New fabrication processes are proposed for WR1 with the 
     intent of simplifying manufacturing and achieving cost 
     savings but their impact on performance must be further 
     understood.
       (4) In the absence of new nuclear-explosive testing, the 
     challenges to certification must be met in a peer review 
     regime that establishes confidence in the WR1 design. Peer 
     review is essential to establishing the technical credibility 
     of new designs. Peer review for RRW certification must play a 
     larger role than provided for by current NNSA guidelines or 
     envisaged in the LLNL plans.
       The JASON findings begin to identify the challenges of the 
     RRW program and the scientific work and general processes 
     that need substantial focus and attention. The conferees 
     believe that the RRW program will present many scientific 
     challenges and urge the NNSA to ensure that the stockpile 
     stewardship scientific, computational, and experimental 
     capabilities and tools are maintained and expanded as 
     necessary to support RRW.
       The conferees urge the NNSA to approach the RRW program 
     cautiously, with a commitment to address and resolve all 
     issues as completely as possible. Using an outside technical 
     review mechanism, such as JASON, is necessary to fully 
     understand the technical issues associated with RRW. The 
     conferees urge the NNSA to consider how a regularized 
     external review could be undertaken.
     Nuclear test readiness (sec. 3112)
       The Senate amendment contained a provision (sec. 3121) that 
     would repeal section 3113 of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136) 
     and extend the requirement for a test readiness report 
     required by section 4208 of the Atomic Energy Defense Act (50 
     U.S.C. 2528), but require the Secretary of Energy to submit 
     the report biennially on March 1 of each odd-numbered year 
     beginning on March 1, 2009.
       The House bill contained no similar provision.
       The House recedes.
     Modification of reporting requirement (sec. 3113)
       The Senate amendment contained a provision (sec. 3136) that 
     would modify the report required by section 3111 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163). Section 3111 required the Secretary of 
     Energy to submit a report on the Reliable Replacement Warhead 
     (RRW) by March 2007. The amendment would make the report a 
     biennial report through 2013. In addition, the provision 
     would require that the report be submitted in a classified 
     form with an unclassified summary.
       The House bill contained no similar provision.
       The House recedes with an amendment that would eliminate 
     the requirement for a biennial report through 2013 and retain 
     the requirement that the report be submitted in a classified 
     form with a detailed unclassified summary.
       The conferees note that the Secretary of Energy has failed 
     to submit the report required by section 3111, and remind the 
     Secretary that the report was due to Congress on March 1, 
     2007. The conferees believe that this report is important to 
     future decisions about the RRW program.
     Limitation on availability of funds for fissile materials 
         disposition program (sec. 3114)
       The Senate amendment contained a provision (sec. 3112) that 
     would require the Secretary of Energy to certify to the 
     congressional defense committees what portions of the fiscal 
     year 2008 and prior fiscal years' funds for the fissile 
     materials disposition program will be obligated and expended 
     in fiscal years 2008 and 2009, before any of the fiscal year 
     2008 funds are obligated or expended. In the event that any 
     of the fiscal year 2008 funds will not be obligated in fiscal 
     years 2008 or 2009, the provision would authorize the 
     Secretary to use such fiscal year 2008 funds for obligation 
     to any other nonproliferation program in which the funds 
     could be obligated and expended in fiscal years 2008 or 2009.
       The House bill contained no similar provision.
       The House recedes with an amendment that would prohibit the 
     Secretary of Energy from obligating more than 75 percent of 
     the funds authorized to be appropriated for the fissile 
     materials disposition program for fiscal year 2008 until the 
     Secretary, in consultation with the Administrator for Nuclear 
     Security, submits a report to the congressional defense 
     committees setting forth a plan for obligating and expending 
     prior year funds that remain available for obligation after 
     January 1, 2008, as well as fiscal year 2008 funds.
       The conferees continue to fully support the goals of the 
     United States Surplus Fissile Materials Disposition program, 
     which include disposition of U.S. surplus weapons-grade 
     plutonium and use of the mixed oxide fuel fabrication 
     facility for such plutonium disposition. The conferees 
     emphasize that the program has important nonproliferation 
     benefits and is consistent with the national security 
     interests of the United States. The disposition of surplus 
     weapons-grade plutonium will demonstrate to the international 
     community our commitment to permanently eliminating materials 
     that could be used for nuclear weapons.
       The conferees also continue to fully support the goals of 
     the Russian Surplus Fissile Materials Disposition program, 
     which include disposition of the Russian Federation's surplus 
     weapons-grade plutonium. However, the conferees are concerned 
     by the remaining lack of certainty on issues relating to the 
     path forward for Russian plutonium disposition.
       The conferees request an update from the Secretary of 
     Energy at the earliest possible date on the subjects covered 
     in the report the Secretary submitted to the congressional 
     defense committees relating to the Russian Surplus Fissile 
     Materials Disposition program, in response to the requirement 
     under section 3121 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364).
     Modification of limitations on availability of funds for 
         waste treatment and immobilization plant (sec. 3115)
       The Senate amendment contained a provision (sec. 3113) that 
     would amend section 3120a of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364) 
     to require an independent review and certification by the 
     Secretary of Energy of the earned value management system for 
     the waste treatment and immobilization plant at the 
     Department of Energy's Hanford Site.
       The House bill contained no similar provision.
       The House recedes.
     Modification of sunset date of the Office of the Ombudsman of 
         the Energy Employees Occupational Illness Compensation 
         program (sec. 3116)
       The Senate amendment contained a provision (sec. 3137) that 
     would extend the sunset date for the Office of the Ombudsman 
     for the Energy Employees Occupational Illness Compensation 
     program for 5 years to October 28, 2012.
       The House bill contained a similar provision (sec. 3118) 
     that would permanently establish the Office of the Ombudsman, 
     provide the Office of the Ombudsman with contracting 
     authority, and expand the scope of the duties of the office. 
     In addition, the provision would change the nature of the 
     funding that supports the office from mandatory to 
     discretionary.
       The House recedes.
     Technical amendments (sec. 3117)
       The Senate amendment contained a provision (sec. 3125) that 
     would make technical amendments to the Atomic Energy Defense 
     Act (50 U.S.C. 2521 et seq.)
       The House bill contained no similar provision.

[[Page 33172]]

       The House recedes.

                       Subtitle C--Other Matters

     Study on using existing pits for the Reliable Replacement 
         Warhead program (sec. 3121)
       The House bill contained a provision (sec. 3111) that would 
     require the Administrator for Nuclear Security, in 
     consultation with the Nuclear Weapons Council, to analyze and 
     then report on the feasibility of using existing plutonium 
     pits to remanufacture warheads in the Reliable Replacement 
     Warhead (RRW) program. The report to the congressional 
     defense committees would be due no later than February 1, 
     2008. The report would be unclassified but may include a 
     classified annex.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify the 
     scope of the study and the report to look at the feasibility 
     of using existing plutonium pits in the RRW program, in lieu 
     of newly manufactured pits. The study would include an 
     analysis of certification, manufacturing, and technical 
     issues relating to the use of existing plutonium pits and 
     would be due to the congressional defense committees no later 
     than 6 months after the date of enactment of this Act.
     Report on retirement and dismantlement of nuclear warheads 
         (sec. 3122)
       The House bill contained a provision (sec. 3113) that would 
     direct the Administrator for Nuclear Security, in 
     consultation with the Nuclear Weapons Council, to submit to 
     the congressional defense committees a report on the 
     retirement and dismantlement of the nuclear warheads that are 
     not part of the enduring stockpile but that have not been 
     dismantled. The report would be due no later than February 1, 
     2008 and would include a plan to accelerate the dismantlement 
     of such nuclear warheads and an assessment of the feasibility 
     of implementing an accelerated schedule.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would change the 
     due date of the report to March 1, 2008. Further, the 
     amendment would specify that the nuclear warheads that are 
     the subject of the report would be those warheads that will 
     not be part of the enduring stockpile as of December 31, 
     2012, but that have not yet been dismantled. In addition, the 
     amendment would require the Administrator to include in the 
     report an assessment of the capacity of the nuclear weapons 
     complex and the resources needed to accommodate an 
     accelerated schedule.
     Plan for addressing security risks posed to nuclear weapons 
         complex (sec. 3123)
       The House bill contained a provision (sec. 3114) that would 
     direct the Administrator for Nuclear Security to conduct an 
     assessment of the physical security and cyber security risks 
     posed to the nuclear weapons complex at the Department of 
     Energy (DOE) and the security technologies employed within 
     the complex. The report on the assessment would be submitted 
     to the congressional defense committees and would include a 
     site- specific description of security technologies, a 
     description of how DOE establishes investment priorities, and 
     a multi-year plan for replacement and maintenance of 
     technologies.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that the plan be prepared in consultation with the Director 
     of the Office of Health, Safety, and Security of the DOE. The 
     amendment would also add the report as an additional element 
     to the National Nuclear Security Administration annual 
     future-years nuclear security program plan.
     Department of Energy protective forces (sec. 3124)
       The House bill contained a provision (sec. 3112) that would 
     require the Administrator for Nuclear Security to conduct a 
     review of the protective forces at the National Nuclear 
     Security Administration (NNSA) sites and submit a report to 
     the congressional defense committees setting forth the 
     results of the review. The report would be due no later than 
     March 1, 2008 and would include an assessment of the 
     potential risks associated with contractual incentives and 
     mechanisms to provide protective forces. In addition, the 
     report would require an assessment of specific alternative 
     management options for managing the protective forces.
       The Senate amendment contained a similar provision (sec. 
     3124) that would require the Comptroller General of the 
     United States to report to the Committees on Armed Services 
     of the Senate and the House of Representatives on the 
     management of protective forces at the Department of Energy 
     (DOE) sites with category I nuclear material. This would 
     include the relevant NNSA sites. The report would be due 180 
     days after the date of enactment of this Act and would 
     include a discussion of the management, contractual 
     structure, training, benefits, and alternative management 
     options for the DOE protective forces.
       The Senate recedes with an amendment that would combine the 
     elements of each report into companion assessments and 
     reviews of the protective forces at the DOE and NNSA sites 
     with category I nuclear materials. These assessments and 
     reviews would be included in sequential reports, first by the 
     Comptroller General and then the Administrator for Nuclear 
     Security. The amendment would require the Comptroller General 
     report to be submitted 180 days after the date of enactment 
     of this Act. No later than 90 days following the receipt of 
     the Comptroller General report the Secretary of Energy, in 
     conjunction with the Administrator for Nuclear Security and 
     the Assistant Secretary for Environmental Management, would 
     submit to the Committees on Armed Services a report on the 
     management of the protective forces, using the Comptroller 
     General report as a starting point. The DOE review would 
     include an assessment of the options for management 
     identified by the Comptroller General, as well as other 
     options that the Secretary may identify. In addition, the DOE 
     report would include an analysis and assessment of the role 
     contractor incentives play in the management and performance 
     of the protective forces.
     Evaluation of National Nuclear Security Administration 
         strategic plan for advanced computing (sec. 3125)
       The Senate amendment contained a provision (sec. 3138) that 
     would require the Secretary of Energy to enter into an 
     agreement with an independent entity to conduct an evaluation 
     of the strategic plan for advanced computing of the National 
     Nuclear Security Administration (NNSA). The report would be 
     due 180 days after the date of enactment of this Act. The 
     report would include: an assessment of the role played by 
     NNSA high performance computing research in maintaining U.S. 
     leadership in computer capabilities and the impact of funding 
     reductions to such leadership; the way in which NNSA uses 
     computational capabilities to support the Stockpile 
     Stewardship programs; the NNSA relationship with private 
     industry; and the efforts of the Department of Energy (DOE) 
     to coordinate supercomputing work within the DOE, with other 
     government agencies, and with private industry.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     elements of the assessment. Included in the report would be: 
     an assessment of the adequacy of the strategic plan in 
     supporting the Stockpile Stewardship program; the role of 
     research and development in high performance computing in 
     fulfilling the missions of the NNSA and maintaining U.S. 
     leadership in this area; and the impact of changes in 
     investment levels or strategies to fulfill the missions of 
     the NNSA. The amendment would also require an assessment of 
     DOE efforts to coordinate supercomputing work within the DOE, 
     to develop joint strategies with other federal agencies and 
     private industry, and to share developments and capitalize on 
     innovations with private industry. This amendment would also 
     require the report to be submitted by the Secretary of Energy 
     1 year after the date of enactment of this Act.
     Sense of Congress on the nuclear nonproliferation policy of 
         the United States and the Reliable Replacement Warhead 
         program (sec. 3126)
       The Senate amendment contained a provision (sec. 3122) that 
     would set forth the sense of Congress that the United States 
     should take a number of actions with respect to 
     nonproliferation matters. The provision would also set forth 
     the sense of Congress that any decision to manufacture or 
     deploy a Reliable Replacement Warhead should be formulated in 
     the broader context of the progress made by the United States 
     toward each of the enumerated goals.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify 
     several of the actions enumerated in the Senate provision. 
     The amendment would also modify item number five with respect 
     to the Comprehensive Test Ban Treaty by replacing it with a 
     sense of Congress that the United States should sustain the 
     Science-Based Stockpile Stewardship program, which provides 
     the basis for certifying the U.S. nuclear deterrent and 
     maintaining the moratorium on underground nuclear weapons 
     testing.
     Department of Energy report on plan to strengthen and expand 
         International Radiological Threat Reduction program (sec. 
         3127)
       The House bill contained a provision (sec. 3115) that would 
     require the Secretary of Energy to submit a report to 
     Congress that sets forth a specific plan for strengthening 
     and expanding the Department of Energy (DOE) International 
     Radiological Threat Reduction (IRTR) program within the 
     Global Threat Reduction Initiative. The plan would include 
     actions to address the issues raised and recommendations made 
     in the March 13, 2007 Government Accountability Office report 
     titled ``Focusing on the Highest Priority Radiological 
     Sources Could Improve DOE's Efforts to Secure Sources in 
     Foreign Countries.'' The report would be due no later than 60 
     days after the date of enactment of this Act.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary of Energy to

[[Page 33173]]

     submit the report to Congress no later than 120 days after 
     the date of enactment of this Act and would modify several of 
     the elements required to be in the report. This would include 
     a clarification that the Secretary should give high priority 
     to materials that present the highest risk.
       The conferees support the idea that the IRTR program should 
     concentrate on securing the radiological materials that 
     present the highest risk, but also encourage the DOE to take 
     advantage of opportunities, as they arise, to increase the 
     security of radiological materials, even if the materials to 
     be secured represent a lower comparative risk.
     Department of Energy report on plan to strengthen and expand 
         Materials Protection, Control, and Accounting program 
         (sec. 3128)
       The House bill contained a provision (sec. 3116) that would 
     require the Secretary of Energy to submit to Congress a 
     report that sets forth a specific plan for strengthening and 
     expanding the Department of Energy Materials Protection, 
     Control, and Accounting program. The plan would include 
     actions to address the issues raised and recommendations made 
     in the February 2007 Government Accountability Office report 
     titled ``Progress Made in Improving Security at Russian 
     Nuclear Sites, but the Long-Term Sustainability of U.S. 
     Funded Security Upgrades is Uncertain.'' The plan would also 
     include a long-term operational plan to secure all weapons-
     usable material and warhead sites as quickly and effectively 
     as possible and ensure that sufficient funding is available 
     to carry out these activities. The report would be due 60 
     days after the date of enactment of this Act.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify 
     several of the elements required to be in the report, and 
     would direct the Secretary to submit the report to Congress 
     no later than 120 days after the date of enactment of this 
     Act.
     Agreements and reports on nuclear forensics capabilities 
         (sec. 3129)
       The Senate amendment contained a provision (sec. 3139) that 
     would authorize the Secretary of Energy, with the concurrence 
     of the Secretary of State, and in coordination with the 
     Secretary of Defense, the Secretary of Homeland Security, and 
     the Director of National Intelligence, to enter into 
     agreements with countries or other entities to collect data 
     and conduct such analysis as is needed to determine the 
     source of components or fissile materials used or attempted 
     to be used in a nuclear device or weapon. The provision would 
     also require the Secretary of Energy, in coordination with 
     the Secretary of State, to submit a report to Congress 
     identifying the progress made on entering into such 
     agreements, including the identification of any major 
     obstacles to such agreements. The provision would also 
     require the President to submit a report to Congress setting 
     forth the procedures and standards to be used to determine 
     the source of the nuclear weapons, material, or component, 
     and whether the country or group knowingly or negligently 
     provided the material or component used or attempted to be 
     used. This report would also assess the capability to make 
     such a determination and a plan for addressing any capability 
     shortfalls.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees urge the Secretary of Energy to identify in 
     the portion of the report dealing with international 
     agreements, in the section identifying any obstacles to 
     completing such agreements, any additional legal or 
     administrative authorities that are needed to implement such 
     agreements, if such additional authorities are needed.
     Report on status of environmental management initiatives to 
         accelerate the reduction of environmental risks and 
         challenges posed by the legacy of the Cold War (sec. 
         3130)
       The Senate amendment contained a provision (sec. 3123) that 
     would require the Secretary of Energy to prepare a report on 
     the status of environmental management initiatives, including 
     the progress made in reducing environmental risks and 
     challenges, the status of enforceable milestones and plans 
     for the future, any proposals for legislation to carry out 
     environmental management initiatives, and an estimate of the 
     life cycle cost of the environmental management program. The 
     report would be submitted to the congressional defense 
     committees concurrent with the budget justification materials 
     in support of the Department of Energy's budget for fiscal 
     year 2009. The provision would also require the Secretary to 
     submit the report to the Government Accountability Office for 
     review. The Comptroller General would be allotted 180 days to 
     review and assess the required report and then submit a 
     report to the congressional defense committees setting forth 
     the results of the review.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     date for submittal of the report and the elements to be 
     included. The amendment would require the Secretary to submit 
     the report to the congressional defense committees and the 
     Government Accountability Office not later than September 30, 
     2008. The amendment would require a listing of major 
     mandatory milestones and commitments, together with a summary 
     providing a more general description of milestones or types 
     of milestones that are projected to be or are in jeopardy of 
     being missed at each site. The amendment would also require a 
     description of the process currently being instituted by the 
     Department in its Order 430.1A for the nomination and 
     acceptance of new work scope into the environmental 
     management program, as well as a listing of pending 
     nominations, and life cycle cost estimates and schedules to 
     address them. The amendment would further require an estimate 
     of the life cycle cost of the current program scope. Finally, 
     the amendment would require the Comptroller General to submit 
     a review of the report to the congressional defense 
     committees not later than March 30, 2009.

                Subtitle D--Nuclear Terrorism Prevention

     Definitions (sec. 3131)
       The Senate amendment contained a provision (sec. 3131) that 
     would define terms used in sections 3132 through 3135 of the 
     Senate amendment. These provisions relate to nuclear 
     terrorism prevention.
       The House bill contained no similar provision.
       The House recedes.
     Sense of Congress on the prevention of nuclear terrorism 
         (sec. 3132)
       The Senate amendment contained a provision (sec. 3133) that 
     would set forth the sense of Congress that the President 
     should: make the prevention of a nuclear terrorist attack on 
     the United States of the highest priority; request additional 
     funding to accelerate programs to prevent nuclear terrorism; 
     and work with the international community to reduce the 
     dangers of nuclear terrorism. The provision would further 
     state that the United States and the international community 
     should make additional efforts to ensure that all nuclear 
     weapons worldwide are secure and accounted for and that 
     formula quantities of strategic special nuclear material 
     worldwide are eliminated, removed, or secure and accounted 
     for. The provision would also specify that the International 
     Atomic Energy Agency should be funded appropriately to 
     fulfill its role in protecting nuclear material and combating 
     nuclear smuggling.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Minimum security standard for nuclear weapons and formula 
         quantities of strategic special nuclear material (sec. 
         3133)
       The Senate amendment contained a provision (sec. 3134) that 
     would set forth the policy of the United States to work with 
     the international community to ensure that nuclear weapons 
     around the world are secure and accounted for and that all 
     formula quantities of strategic special nuclear material are 
     eliminated, removed, or are secure and accounted for. In 
     furtherance of this policy, the provision would set forth 
     actions that the President should take to seek the broadest 
     possible international agreement on a global standard for 
     nuclear security and to work with other countries and the 
     International Atomic Energy Agency to ensure that security of 
     nuclear weapons and formula quantities of strategic special 
     nuclear material is upgraded to meet the global standard. 
     Actions that the United States takes in support of this goal 
     would include providing appropriate financial and technical 
     support to support security upgrades, and working with other 
     governments to ensure that appropriate security rules, 
     regulations, and enforcement measures are in place.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     the statements urging presidential action reflect the sense 
     of Congress.
     Annual report (sec. 3134)
       The Senate amendment contained a provision (sec. 3135) that 
     would require the President, in consultation with relevant 
     federal departments and agencies, to submit an annual report 
     to Congress on the security of nuclear weapons, formula 
     quantities of strategic special nuclear material, 
     radiological material, and related equipment around the 
     world. The report would include a section on relevant 
     programs and would specifically include: a list of facilities 
     and sites that are determined to be the highest priority for 
     security and accounting of nuclear weapons and related 
     equipment, or the elimination, removal or security and 
     accounting of formula quantities of strategic special nuclear 
     material and radiological materials; a related prioritized 
     diplomatic and technical plan that includes the role that the 
     international community is playing and could play, including 
     a plan for securing contributions; and an assessment of the 
     progress made in implementing the plan. The report would be 
     due annually on September 1, beginning on September 1, 2008.
       The House bill contained no similar provision.

[[Page 33174]]

       The House recedes with an amendment that would limit the 
     report to nuclear weapons and related equipment and formula 
     quantities of strategic nuclear material. In addition, the 
     amendment would clarify that the report would not cover such 
     weapons, material, and equipment in the United States. The 
     amendment would sunset the reporting requirement after 
     calendar year 2012.

                   Legislative Provisions Not Adopted

     Authority to use International Nuclear Materials Protection 
         and Cooperation program funds outside the former Soviet 
         Union
       The House bill contained a provision (sec. 3117) that would 
     amend section 3124 of the National Defense Authorization Act 
     for Fiscal Year 2004 (Public Law 108-136) to modify certain 
     emergency authorities relating to the use of Department of 
     Energy International Nuclear Materials Protection and 
     Cooperation program funds outside the former Soviet Union.
       The Senate amendment contained no similar provision.
       The House recedes.
     Findings
       The Senate amendment contained a provision (sec. 3132) that 
     would set forth a number of findings concerning: the 
     possibility that terrorists may acquire and use a nuclear 
     weapon against the United States; the programs and 
     international mechanisms designed to address that threat; and 
     the recognition that additional efforts are needed to address 
     that threat.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the ``National Strategy for 
     Combating Terrorism'' states that ``[w]eapons of mass 
     destruction in the hands of terrorists is one of the gravest 
     threats we face.'' Similarly, former Senator Sam Nunn has 
     stated that ``[s]tockpiles of loosely guarded nuclear weapons 
     material are scattered around the world, offering inviting 
     targets for theft or sale.''
       The conferees support strengthening and expanding, as much 
     as possible, the programs designed to address these threats 
     and other threats arising from the proliferation of nuclear, 
     as well as radiological, weapons and weapons-related 
     materials, technologies, and expertise. Such programs include 
     the nonproliferation programs of the Department of Energy 
     (DOE). These programs are critical to U.S. national security 
     and should be a top priority. Significant progress has been 
     made over the last 15 years, but much remains to be done. The 
     DOE nonproliferation programs would benefit from additional 
     funding to support new and expanded program activities. 
     Elsewhere in this Act, the conferees have included a number 
     of provisions and additional funding for these programs to 
     ensure that, wherever possible, actions are taken to address 
     threats involving nuclear and radiological weapons, and 
     weapons-related materials, technologies, and expertise, 
     including actions to reduce the possibility that a terrorist 
     could ever acquire and use a nuclear weapon against the 
     United States.

   TITLE XXXII--WAR RELATED NATIONAL NUCLEAR SECURITY ADMINISTRATION 
                             AUTHORIZATIONS

                     Legislative Provision Adopted

     Additional war-related authorization of appropriations for 
         National Nuclear Security Administration (sec. 3201)
       The House bill contained a provision (sec. 1517) that would 
     authorize $50.0 million in additional fiscal year 2008 
     funding for Operation Iraqi Freedom and Operation Enduring 
     Freedom for defense nuclear nonproliferation, the amount of 
     the fiscal year 2008 war-related budget request for that 
     purpose.
       The Senate amendment contained a similar provision (sec. 
     3101) that would include in the overall amount authorized for 
     defense nuclear nonproliferation an additional $50.0 million 
     for the defense nuclear nonproliferation programs requested 
     in the fiscal year 2008 war-related budget.
       The Senate recedes with an amendment that would specify 
     that of the amounts authorized, $30.0 million is for the 
     International Nuclear Materials Protection and Cooperation 
     program and $20.0 million is for the Global Threat Reduction 
     Initiative.

         TITLE XXXIII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

                     Legislative Provision Adopted

     Authorization (sec. 3301)
       The House bill contained a provision (sec. 3201) that would 
     authorize $22.5 million for fiscal year 2008 for the Defense 
     Nuclear Facilities Safety Board (DNFSB).
       The Senate amendment contained a similar provision (sec. 
     3201) that would authorize $27.5 million for the DNFSB.
       The Senate recedes.
       The conferees are concerned that in the future the DNFSB 
     may not have the resources to attract and retain the 
     technical staff needed to meet its statutory 
     responsibilities.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

                     Legislative Provisions Adopted

     Authorization of appropriations (sec. 3401)
       The House bill contained a provision (sec. 3401) that would 
     authorize $17.3 million for the operation and maintenance of 
     the Naval Petroleum and Oil Shale Reserves.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Remedial action at Moab Uranium milling site (sec. 3402)
       The House bill contained a provision (sec. 3402) that would 
     require the Secretary of Energy to complete remediation at 
     the Moab site and remove the tailings to the Crescent 
     Junction site in Utah no later than October 1, 2019.
       The Senate amendment contained a similar provision (sec. 
     879) that would require the Secretary to develop a strategy 
     to complete the remediation of the Moab site no later than 
     January 1, 2019. In addition, the provision would direct the 
     Secretary of Energy to submit a report to the Committee on 
     Energy and Natural Resources of the Senate, the Committee on 
     Energy and Commerce of the House of Representatives, and the 
     Committee on Appropriations of each of the Senate and the 
     House of Representatives on how the existing cost, scope, and 
     schedule for remediation would be changed to meet the 
     implementation plan
       The Senate recedes with an amendment that would direct the 
     Secretary of Energy to submit a report to Congress no later 
     than October 2, 2019, if the Secretary will not be able to 
     complete the remediation at the Moab site by October 1, 2019.
       The conferees urge the Secretary to submit any such report 
     notifying Congress of any delay as soon as the Secretary of 
     Energy is aware of any delay.

                  TITLE XXXV--MARITIME ADMINISTRATION

                     Legislative Provisions Adopted

     Authorization of appropriations for fiscal year 2008 (sec. 
         3501)
       The House bill contained a provision (sec. 3501) that would 
     authorize a total of $135.3 million for fiscal year 2008, 
     equal to the President's budget request. Of the amount 
     authorized, $20.0 million would be available for the disposal 
     of obsolete vessels; $13.8 million for capital improvements 
     at the United States Merchant Marine Academy; and $8.3 
     million for maintenance and repair of school ships at the 
     State Maritime Academies.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would increase 
     the amount authorized by an additional $9.0 million. Of the 
     additional amount authorized, $1.5 million would be for 
     maintenance and repair of school ships at the State Maritime 
     Academies; and $2.5 million would be for expenses and capital 
     improvements at the United States Merchant Marine Academy.
       The amendment would further clarify the amounts currently 
     authorized in law for expenses: to maintain and preserve a 
     U.S. flag merchant fleet under chapter 531 of title 46, 
     United States Code, $156.0 million; for paying reimbursement 
     under section 3517 of the Maritime Security Act of 2003 (46 
     U.S.C. 53101 note), $19.5 million; for assistance to small 
     shipyards and maritime communities under section 54101 of 
     title 46, United States Code, $25.0 million; and for the cost 
     (as defined in section 502(5) of the Federal Credit Reform 
     Act of 1990 (2 U.S.C. 661a(5)) of loan guarantees under the 
     program authorized by chapter 537 of title 46, United States 
     Code, $30.0 million.
     Temporary authority to transfer obsolete combatant vessels to 
         the Navy for disposal (sec. 3502)
       The House bill contained a provision (sec. 3502) that would 
     allow the Secretary of Transportation to transfer no fewer 
     than three combatant vessels in the non-retention fleet of 
     the Maritime Administration to the Navy for disposal.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Vessel disposal program (sec. 3503)
       The House bill contained a provision (sec. 3503) that would 
     require the Secretary of Transportation to submit a 
     comprehensive report on the current plan for disposal of 
     vessels in the non-retention fleet of the Maritime 
     Administration.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Transportation to convene a working group 
     composed of representatives from the Department of the Navy, 
     the Maritime Administration, the Coast Guard, the 
     Environmental Protection Agency, and the National Oceanic and 
     Atmospheric Administration, and any other federal or State 
     organizations who deal with the disposal of obsolete vessels. 
     The Secretary is directed to charter the working group to 
     make recommendations for the best practices that meet or 
     exceed, and harmonize, the requirements of federal and State 
     environmental laws and regulations applicable to the storage, 
     disposal, and interim transportation of such vessels. The 
     amendment would further require the Secretary to report the 
     results of the working group to the Senate Committee on 
     Commerce, Science, and Transportation, and the

[[Page 33175]]

     Committees on Armed Services of the Senate and the House of 
     Representatives.

                          Subtitle B--Programs

     Commercial vessel chartering authority (sec. 3511)
       The Senate amendment contained a provision (sec. 5101) that 
     would amend chapter 575 of title 46, United States Code, to 
     allow the Secretary of Transportation to enter into contracts 
     or other agreements on behalf of the United States to 
     purchase, charter, operate, or otherwise acquire the use of 
     any vessels documented under chapter 121 of title 46, United 
     States Code. The amendment would authorize the Secretary to 
     use this authority as the Secretary deems appropriate.
       The House bill contained no similar provision.
       The House recedes.
     Maritime Administration vessel chartering authority (sec. 
         3512)
       The Senate amendment contained a provision (sec. 5102) that 
     would amend section 50303 of title 46, United States Code, to 
     allow the Administrator of the Maritime Administration to 
     charter vessels under the control of the Administrator. The 
     consent of the Secretary of Defense would be required for 
     vessels in the Ready Reserve Force or in the National Defense 
     Reserve Fleet maintained in a retention status.
       The House bill contained no similar provision.
       The House recedes.
     Chartering to State and local governmental instrumentalities 
         (sec. 3513)
       The Senate amendment contained a provision (sec. 5103) that 
     would amend section 11(b) of the Merchant Ship Sales Act of 
     1946 (50 U.S.C. App. 1744(b)), which would allow for 
     chartering of vessels of the Ready Reserve Fleet on a 
     reimbursable basis to States, localities, or territories of 
     the United States.
       The House bill contained no similar provision.
       The House recedes.
     Disposal of obsolete Government vessels (sec. 3514)
       The Senate amendment contained a provision (sec. 5104) that 
     would amend section 6(c)(1) of the National Maritime Heritage 
     Act of 1994 (16 U.S.C. 5404(c)(1)), which would require the 
     establishment of a priority system for the disposal of 
     obsolete vessels consistent with their material condition and 
     their subsequent danger to the environment.
       The House bill contained no similar provision.
       The House recedes.
     Vessel transfer authority (sec. 3515)
       The Senate amendment contained a provision (sec. 5105) that 
     would amend section 50304 of title 46, United States Code, to 
     allow for the Secretary of Transportation to charter to other 
     departments of the United States Government vessels under the 
     jurisdiction of the Secretary, with prior consent required by 
     the Secretary of Defense for vessels in the Ready Reserve 
     Force or the National Defense Reserve Fleet.
       The House bill contained no similar provision.
       The House recedes.
     Sea trials for the Ready Reserve force (sec. 3516)
       The Senate amendment contained a provision (sec. 5106) that 
     would amend section 11(c)(1)(B) of the Merchant Ship Sales 
     Act of 1946 (50 U.S.C. App. 1744(c)(1)(B)) to change the 
     period of activation and sea trials of vessels of the Ready 
     Reserve Force to every 30 months, which would conform with 
     current Coast Guard regulations.
       The House bill contained no similar provision.
       The House recedes.
     Review of applications for loans and guarantees (sec. 3517)
       The Senate amendment contained a provision (sec. 5107) that 
     would require the Administrator of the Maritime 
     Administration to develop a comprehensive plan for the review 
     of traditional and non-traditional applications for loans and 
     guarantees under chapter 537 of title 46, United States Code.
       The House bill contained no similar provision.
       The House recedes with an amendment that contains a 
     statement of findings and would require, within 90 days of 
     receipt of all required documentation for a loan or 
     guarantee, defined as a traditional loan, under chapter 537 
     of title 46, United States Code, the Administrator to either 
     accept or reject such application. The amendment would also 
     require that within 180 days of receipt of all required 
     documentation for a loan or guarantee, defined as a non-
     traditional loan under chapter 537 of title 46, United States 
     Code, the Administrator to either accept or reject such 
     application.

                   Subtitle C--Technical Corrections

     Technical corrections (secs. 3521-3529)
       The Senate amendment contained a Title (Title LII--
     Technical Corrections) including a series of provisions 
     (secs. 5201-5210) that would make corrections to various 
     sections of title 46, United States Code.
       The House bill contained no similar provision.
       The House recedes to the following provisions of the Senate 
     amendment: section 5202 (as amended); section 5203; section 
     5204; section 5205; section 5206; section 5207; section 5208, 
     with the exception of subsection (c), (Oceanographic Research 
     Vessels); section 5209; and section 5210.
       The conferees understand that these provisions are 
     technical or clarifying in nature and are part of the ongoing 
     work of the Office of Law Revision Counsel to complete the 
     re-codification of title 46, United States Code. The 
     Committee on the Judiciary has reported legislation, H.R. 
     3387, with an accompanying report (H. Rept. 110-437) that 
     would make substantially the same technical and clarifying 
     changes to title 46.

                   Legislative Provisions Not Adopted

     Short title
       The Senate amendment contained a provision (sec. 5001) that 
     would name the division of the bill as the ``Maritime 
     Administration Authorities Act of 2007''.
       The House bill contained no similar provision.
       The Senate recedes.
     Technical corrections
       The Senate amendment contained a Title (Title LII--
     Technical Corrections) including a series of provisions 
     (secs. 5201-5210) that would make corrections to various 
     sections of title 46, United States Code.
       The House bill contained no similar provision.
       The Senate recedes to the following provisions: section 
     5201; subsection (a) of section 5202, Personal Injury to or 
     Death of Seamen; and subsection (c) of section 5208, 
     Oceanographic Research Vessels.
       The conferees were advised by the Committee on the 
     Judiciary of the House of Representatives and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives that these provisions would not be necessary 
     in connection with the re-codification and could have 
     unintended substantive effect.

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     From the Committee on Armed Services, for consideration of 
     the House bill and the Senate amendment, and modifications 
     committed to conference:
     Ike Skelton,
     John M. Spratt,
     Gene Taylor,
     Neil Abercrombie,
     Silvestre Reyes,
     Vic Snyder,
     Adam Smith,
     Loretta Sanchez,
     Mike McIntyre,
     Ellen O. Tauscher,
     Robert A. Brady,
     Robert E. Andrews,
     Susan A. Davis,
     Richard Larsen,
     Jim Cooper,
     Jim Marshall,
     Madeleine Z. Bordallo,
     Mark Udall,
     Duncan Hunter,
     Jim Saxton,
     John M. McHugh,
     Terry Everett,
     Roscoe Bartlett,
     Howard ``Buck'' McKeon,
     Mac Thornberry,
     Walter B. Jones,
     Robin Hayes,
     W. Todd Akin,
     J. Randy Forbes,
     Joe Wilson,
     Michael R. Turner,
     John Kline,
     Thelma Drake,
     From the Permanent Select Committee on Intelligence, for 
     consideration of matters within the jurisdiction of that 
     committee under clause 11 of rule X:
     Leonard L. Boswell,
     Pat J. Murphy,
     From the Committee on Education and Labor, for consideration 
     of secs. 561, 562, 675, 953, and 3118 of the House bill, and 
     secs. 561, 562, 564, 565, and 3137 of the Senate amendment, 
     and modifications committed to conference:
     Joe Courtney,
     Timothy Walberg,
     From the Committee on Energy and Commerce, for consideration 
     of secs 311-313 and 1082 of the Senate amendment, and 
     modifications committed to conference:
     John D. Dingell,
     Albert R. Wynn,
     From the Committee on Foreign Affairs, for consideration of 
     secs. 831, 833, 1022, 1201, 1203, 1204, 1206-1208, 1221, 
     1222, 1231, 1241, 1242, Title XIII, and sec. 3117 of the 
     House bill, and secs. 871, 934, 1011, 1201-1203, 1205, 1211, 
     1212, 1214, 1215, 1217, 1219, 1232, Title XIII, secs. 1511, 
     1512, 1532, 1533, 1539-1542, 1571, 1574-1576, 1579, 3134, and 
     3139 of the Senate amendment, and modifications committed to 
     conference:
     Tom Lantos,
     Gary Ackerman,
     Ileana Ros-Lehtinen,
     From the Committee on Homeland Security, for consideration of 
     sec. 1076 of the Senate amendment, and modifications 
     committed to conference:
     Bennie G. Thompson,
     Christopher P. Carney,
     Daniel E. Lungren,
     From the Committee on Oversight and Government Reform, for 
     consideration of secs. 325, 326, 328-330, 604, 653, 674, 801, 
     802, 814, 815, 821-824, 1101-1112, 1221, 1231, and 1451 of 
     the House bill, and secs. 366-370, 603, 684, 821, 823, 842, 
     845, 846, 871, 902, 937, 1064, 1069, 1074, 1093, 1101-1106, 
     1108, 1540, 1542, and 2851 of the Senate amendment, and 
     modifications committed to conference:
     Henry A. Waxman,
     From the Committee on Science and Technology, for 
     consideration of secs. 846, 1085, and 1088 of the Senate 
     amendment, and modifications committed to conference:
      Bart Gordon,
     Gabrielle Giffords,
     Vernon J. Ehlers,
     From the Committee on Small Business, for consideration of 
     secs. 828, 1085, 1088, 4001, 4002, 4101-4103, 4201-4203, and 
     4301-4305 of the Senate amendment, and modifications 
     committed to conference:
     Nydia M. Velazquez,
     Jason Altmire,
     From the Committee on Transportation and Infrastructure, for 
     consideration of secs. 523 and 1048 of the House bill, and 
     sec. 311-313, 353, 1070, 2853, 2855, 2863, 5101, 5202, and 
     5208 of the Senate amendment, and modifications committed to 
     conference:
     Sam Graves,
     From the Committee on Veterans Affairs, for consideration of 
     secs. 525, 1421, 1433, and 1453 of the House bill, and secs 
     701, 710, 1084, 1611, 1612, 1621, 1626, 1634, 1641, 1654, 
     1662, and 1702-1712 of the Senate amendment, and 
     modifications committed to conference:
     Bob Filner,
     Mike Michaud,
     Steve Buyer,
     From the Committee on Ways and Means, for consideration of 
     sec. 536 of the Senate amendment, and modifications committed 
     to conference:
     Dave Camp,
                                Managers on the Part of the House.

     Carl Levin,
     Ted Kennedy,
     J. Lieberman,
     Jack Reed,
     Daniel K. Akaka,
     Bill Nelson,
     Ben Nelson,
     Evan Bayh,
     Mark Pryor,
     Jim Webb,
     Claire McCaskill,
     J. Warner,
     James M. Inhofe,
     Jeff Sessions,
     Susan M. Collins,
     Saxby Chambliss,
     Lindsey Graham,
     Elizabeth Dole,
     John Cornyn,
     Mel Martinez,
     Managers on the Part of the Senate.

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