[Congressional Record (Bound Edition), Volume 154 (2008), Part 15]
[House]
[Pages 20336-20703]
[From the U.S. Government Publishing Office, www.gpo.gov]




 JOINT EXPLANATORY STATEMENT SUBMITTED BY MR. SKELTON, CHAIRMAN OF THE 
 COMMITTEE ON ARMED SERVICES, REGARDING THE AMENDMENT OF THE HOUSE OF 
                       REPRESENTATIVES TO S. 3001

       The Chairman of the Committee on Armed Services of the 
     House of Representatives offers an amendment to S. 3001, the 
     National Defense Authorization Act for Fiscal Year 2009, as 
     received in the House on September 18, 2008. The amendment 
     consists of an agreement between the managers of the bill in 
     the House of Representatives and the Senate on the 
     reconciliation of H.R. 5658 and S. 3001, as passed by the 
     respective chambers from which each bill originated. This 
     agreement is memorialized in the offered amendment and 
     described in the remainder of this Joint Explanatory 
     Statement submitted on behalf of Mr. Skelton and Mr. Hunter 
     for the House Committed on Armed Services and Mr. Levin and 
     Mr. Warner for the Senate Committee on Armed Services.
       Although not required by the Rules of the House of 
     Representatives and the Senate, the Joint Explanatory 
     Statement includes the disclosure of member earmarks and 
     congressionally directed spending items as defined in clause 
     9 of rule XXI of the Rules of the House of Representatives 
     and rule XLIV of the Standing Rules of the Senate.
       In this statement, the provisions of H.R. 5658, the House 
     passed version of the National Defense Authorization Act for 
     Fiscal Year 2009, are generally referred to as ``the House 
     bill.'' The provisions of S. 3001, the Senate passed version 
     of the National Defense Authorization Act for Fiscal Year 
     2009, are generally referred to as ``the Senate bill.'' The 
     final form of the agreements reached during an informal 
     conference between the managers of the bill in the House and 
     the Senate are referred to as ``the agreement.''
       The House amendment strikes the text of the S. 3001 and 
     inserts the Duncan Hunter National Defense Authorization Act 
     for Fiscal Year 2009, as amended by the agreement between the 
     managers of H.R. 5658 and S. 3001, as passed by the 
     respective chambers from which each bill originated.
       This Joint Explanatory Statement fulfills the authority 
     granted to the Chairman of the Committee on Armed Services by 
     H. Res. 1476 to file explanatory material for the Duncan 
     Hunter National Defense Authorization Act for Fiscal Year 
     2009. Mr. Skelton, the Chairman of the Committee on Armed 
     Services, does not intend to file any additional material 
     pursuant to H. Res. 1476 beyond this Joint Explanatory 
     Statement.
       Submitted by Mr. Skelton, Chairman of the House Committee 
     on Armed Services (for himself, Mr. Hunter, ranking Member of 
     the House Committee on Armed Services, Mr. Levin, Chairman of 
     the Senate Committee on Armed Services and Mr. Warner, Acting 
     Ranking Member of the Senate Committee on Armed Services).

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                    CONGRESSIONAL DEFENSE COMMITTEES

       The term ``congressional defense committees'' is often used 
     in this joint explanatory statement. 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 2009 included an 
     authorization of $102,694.3 million for procurement for the 
     Department of Defense.
       The House bill would authorize $102,711.9 million.
       The Senate bill would authorize $104,168.5 million.
       The agreement recommends an authorization of $103,969.9 
     million. Unless noted explicitly in the joint explanatory 
     statement, all changes are made without prejudice. 

                              Budget Items

     Shipbuilding
       The budget request contained $2.5 billion for the third 
     DDG-1000 class destroyer, $103.2 million for close out costs 
     associated with discontinuing the LPD-17 amphibious ship 
     production line, and no funding for the DDG-51 class program 
     which had ceased new production funding with the three ships 
     bought in fiscal year 2005. Additionally, the budget request 
     contained $920.0 million for two Littoral Combat Ships (LCS) 
     and $348.3 million in the National Defense Sealift Fund 
     (NDSF) designated for advance procurement for the first of a 
     class of Maritime Preposition Force-Future (MPF(F)) aviation 
     vessels.
       The agreement would authorize full funding for the third 
     DDG-1000 class destroyer without prejudice to any potential 
     future Department of Defense decision to truncate the DDG-
     1000 class acquisition program in favor of a return to DDG-51 
     class destroyers.

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       However, the agreement would authorize $349.0 million for 
     surface ship advance procurement which would permit the Navy 
     to acquire major spares for DDG-51 destroyers or buy advance 
     procurement should the Secretary of Defense determine that 
     there is a validated requirement to produce more of these 
     ships.
       The agreement also would authorize $600.0 million in 
     advance procurement to extend the LPD-17 amphibious 
     acquisition program to a total of 11 ships. The Marine Corps 
     considers the tenth and eleventh ships of this class to be 
     vital to the future expeditionary force.
       The agreement would authorize the budget request of $920.0 
     million for two LCS vessels. Elsewhere in the agreement, we 
     recommend a provision that would delay implementation of the 
     cost cap for the LCS program until fiscal year 2010. We note 
     that the Navy has taken delivery of the first ship of this 
     class and anticipates taking delivery of the second by the 
     end of the calendar year. While these are significant 
     milestones, we remain concerned that the Navy has not taken 
     sufficient actions to control costs for follow-on vessels. 
     Moreover, in repeated testimony before the Committees on 
     Armed Services of the Senate and the House of 
     Representatives, we have been told that a primary benefit of 
     utilizing mid-tier shipyards is that such yards can easily 
     balance commercial and government workload to ensure that the 
     Navy does not have to pay overhead costs to maintain 
     capability during periods of limited government funding. 
     Nevertheless, the Navy has requested, for the second year in 
     a row, an adjustment to the cost cap in order to preserve 
     industrial capability because the Navy is unable to purchase 
     a ship at or below its budgetary estimate and lacks a 
     coherent acquisition strategy for the program. We strongly 
     encourage the Navy to take steps to procure follow-on vessels 
     with required warfighting capability, while prioritizing the 
     aggressive management of cost and the most efficient 
     utilization of the industrial base. Likewise, we direct the 
     Secretary to develop and submit to the Congress a long-term 
     acquisition strategy for LCS vessels with the submission of 
     the fiscal year 2010 budget request.
       Finally, consistent with a change in the definition of the 
     vessels appropriately funded within the NDSF, the agreement 
     would transfer $348.3 million from the NDSF to the 
     Shipbuilding and Conversion, Navy (SCN) account to buy MPF(F) 
     vessels which are non-combatant versions of assault echelon 
     vessels of the Navy's amphibious force.


                       Items of Special Interest

     Intelligence, surveillance, and reconnaissance task force
       The Senate report (110-335) accompanying S. 3001 included 
     recommendations for authorization of funding and direction 
     for multiple programs and activities to immediately 
     strengthen intelligence, surveillance, and reconnaissance 
     (ISR) capabilities for deployed forces. Since the publication 
     of that report, the Secretary of Defense established an ISR 
     Task Force to recommend immediate actions to field additional 
     capabilities. The Secretary of Defense subsequently submitted 
     a prior-approval reprogramming request to the Congress of 
     $1.2 billion for fiscal year 2008 (which Congress approved), 
     and indicated that another $1.4 billion or more would be 
     requested for fiscal year 2009.
       We applaud the Secretary's decisive action. However, based 
     on past experience with countering improvised explosive 
     devices and fielding large numbers of Mine-Resistant Ambush 
     Protected armored vehicles, we are concerned that the 
     Department of Defense will encounter difficulties in 
     executing the approved initiatives as rapidly as needed 
     unless the Department establishes a high-level organization 
     and process to manage, oversee, and report regularly to the 
     Secretary on the initiative. In addition, we expect that 
     additional requirements for immediate ISR support will arise, 
     suggesting the need for sustaining an organization and 
     process for evaluating theater needs and potential solutions.
       Therefore, we urge the Secretary of Defense to create and 
     sustain an organization, led by a senior official, to manage 
     the implementation of the ISR initiatives and to evaluate and 
     make recommendations to the Secretary on new ISR requirements 
     as they arise. We request that the Secretary submit a report 
     to the congressional defense and intelligence committees 
     within 30 days of the date of enactment on the Secretary's 
     plans for managing the multi-billion dollar ISR enhancement 
     effort.


                     LEGISLATIVE PROVISIONS ADOPTED

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 101-105)
       The House bill contained provisions (secs. 101-106) that 
     would authorize the recommended fiscal year 2009 funding 
     levels for procurement for the Army, Navy, Marine Corps, Air 
     Force, Defense-wide activities, and National Guard and 
     reserve equipment.
       The Senate bill contained provisions (secs. 101-104) that 
     would authorize the recommended fiscal year 2009 funding 
     levels for procurement for the Army, Navy, Marine Corps, Air 
     Force, and Defense-wide activities.
       The agreement includes the House provisions with technical 
     amendments.

                       Subtitle B--Army Programs

     Separate procurement line items for Future Combat Systems 
         program (sec. 111)
       The House bill contained a provision (sec. 111) that would 
     require, beginning with the fiscal year 2010 President's 
     budget request, separate procurement lines for five classes 
     of equipment planned for procurement under the Future Combat 
     Systems (FCS) program. These classes would be FCS manned 
     ground vehicles, FCS unmanned ground vehicles, FCS unmanned 
     aerial vehicles, FCS unattended ground systems, and other FCS 
     elements.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the use of dedicated procurement 
     line items for the FCS program beginning with the Fiscal Year 
     2011 President's Budget Request submitted to Congress under 
     section 1105(a) of title 31, United States Code.
     Clarification of status of Future Combat Systems program lead 
         system integrator (sec. 112)
       The House bill contained a provision (sec. 112) that would 
     prohibit the Army from awarding a contract for low-rate 
     initial production or full-rate production for major elements 
     of the Future Combat Systems (FCS) program to entities 
     serving in the role of a lead systems integrator for the FCS 
     program.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would amend section 802 of the National 
     Defense Authorization Act for Fiscal Year 2008 (Public Law 
     110-181) to clarify the prime contractor for the Future 
     Combat Systems program is a lead system integrator under such 
     section and will remain so until 45 days after the Secretary 
     of the Army certifies in writing that such contractor is no 
     longer serving as a lead system integrator. The specific 
     functions performed by the prime contractor for the FCS 
     program under the current FCS program contract, including 
     major roles in system and subsystem integration, requirements 
     definition, program scope adjustments, and program 
     management, constitute ``acquisition functions closely 
     associated with inherently governmental functions'' for the 
     purposes of this provision. The provision would also clarify 
     the definition of ``new contract'' to include certain FCS 
     contract modifications.
     Restriction on obligation of funds for Army tactical radio 
         pending report (sec. 113)
       The House bill contained a provision (sec.113) that would 
     restrict obligation of 25 percent of the total funds 
     authorized for Army tactical radio systems pending a report 
     on Army tactical radio system fielding plans from the 
     Assistant Secretary for Defense for Networks and Information 
     Integration.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a technical 
     amendment.
       The agreement specifies that the restriction on obligation 
     of funds in paragraph (b) of the provision refers only to 
     Army radios procured through the following Other Procurement, 
     Army budget lines: ``SINCGARS family,'' and ``Radio, Improved 
     HF (COTS) family.''
     Restriction on obligation of procurement funds for Armed 
         Reconnaissance Helicopter program pending certification 
         (sec. 114)
       The House bill contained a provision (sec. 114) that would 
     limit the obligation of funds for the Armed Reconnaissance 
     Helicopter (ARH) for fiscal year 2009 to not more than 20 
     percent of the authorized amounts until 30 days after the 
     Under Secretary of Defense for Acquisition, Technology, and 
     Logistics (USD-ATL) certifies to the congressional defense 
     committees that the ARH has satisfactorily completed a 
     Limited User Test and has been approved by the USD-ATL to 
     enter production.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would add requirements for the ARH program to 
     achieve certification as required by section 2433 of title 
     10, United States Code, and restructuring of its acquisition 
     strategy.
     Stryker Mobile Gun System (sec. 115)
       The Senate bill contained a provision (sec.111) that would 
     require the Secretary of Defense, through the Director of 
     Operational Test and Evaluation (DOT&E), to ensure that the 
     Stryker Mobile Gun System (MGS) is subject to testing to 
     confirm the efficacy of any actions taken to mitigate 
     operational deficiencies identified in Initial Operational 
     Test and Evaluation and Live Fire Test and Evaluation. The 
     provision would also require the Secretary of the Army to 
     provide quarterly updates to the congressional defense 
     committees on the status of the corrective measures and 
     expand section 117(a) of the National Defense Authorization 
     Act for Fiscal Year 2008 (Public Law 110-181) to future 
     fiscal years.
       The House bill contained no similar provision.

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       The agreement includes the Senate provision with a 
     clarifying amendment that updates the provision based on 
     developments relating to the program since Senate committee 
     action.
       We remain concerned by the Army's deployment of low-rate 
     initial production Stryker MGS vehicles to Iraq given the 
     performance and survivability issues noted during testing and 
     urge the Army to take the actions necessary to ensure Stryker 
     MGS vehicles meet all requirements before deploying any 
     additional Stryker MGS vehicles to theater.

                       Subtitle C--Navy Programs

     Refueling and complex overhaul of the U.S.S. Theodore 
         Roosevelt (sec. 121)
       The House bill contained a provision (sec. 121) that would 
     provide a one-time exemption to the normal full funding 
     policy to allow for contracting of a 3 year incrementally-
     funded aircraft carrier refueling complex overhaul (RCOH) 
     from the Shipbuilding and Conversion, Navy (SCN) account. 
     This language would provide the Navy with the authority to 
     commence the refueling overhaul in fiscal year 2009.
       The Senate bill contained a similar provision (sec. 132).
       The agreement includes a provision incorporating this one-
     time exemption.
     Littoral Combat Ship (LCS) program (sec. 122)
       The House bill contained a provision (sec. 123) that would 
     amend section 124 of the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163), as amended by 
     section 125 of the National Defense Authorization Act for 
     Fiscal Year 2008 (Public Law 110-181), to permit the 
     Secretary of the Navy to make adjustments in the cost cap for 
     the Littoral Combat Ship (LCS) to reflect: (1) economic 
     inflation, up to a total of $10.0 million per ship; and (2) 
     cost increases or decreases for insertion of new technology, 
     owing to lower life cycle costs or increased capability 
     required to meet emerging threats.
       The Senate bill contained no similar provision.
       The agreement includes a provision that would amend section 
     125 of the National Defense Authorization Act for Fiscal Year 
     2008 to delay implementation of the existing cost cap until 
     fiscal year 2010.
     Report on F/A-18 procurement costs, comparing multiyear to 
         annual (sec. 123)
       The House bill contained a provision (sec. 124) that would 
     require the Secretary of Defense to submit a report on F/A-18 
     procurement, comparing multiyear procurement costs to those 
     of annual procurements. The provision would also authorize 
     the Secretary of the Navy to obligate up to $100.0 million 
     from within F/A-18 procurement funds to pay for cost 
     reduction initiatives, either for single year procurement or 
     multiyear procurement.
       The Senate bill contained no similar provision.
       The agreement includes a requirement that the Secretary of 
     Defense submit a report comparing F/A-18 annual and multiyear 
     procurement alternatives, and that he submit appropriate 
     certifications required by section 2306b of title 10, United 
     States Code if he finds that a multiyear procurement is the 
     preferable alternative.
     Authority for advanced procurement and construction of 
         components for the Virginia-class submarine program (sec. 
         124)
       The Senate bill contained a provision (sec. 131) that would 
     modify the multiyear authority provided in section 121 of the 
     National Defense Authorization Act for Fiscal Year 2008 
     (Public Law 110-181).
       The House bill contained no similar provision.
       The agreement includes the Senate provision.

                     Subtitle D--Air Force Programs

     Maintenance of retired KC-135E aircraft (sec. 131)
       The House bill contained a provision (sec. 132) that would 
     require the Secretary of the Air Force to maintain a minimum 
     of 46 KC-135E tanker aircraft in Type-1000 storage, rather 
     than all of those KC-135E tanker aircraft that have been or 
     would be retired under section 135(b) of the John Warner 
     National Defense Authorization Act for Fiscal Year 2007 
     (Public Law 109-364).
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that requires the Secretary of the Air Force 
     maintain at least 74 aircraft in Type-1000 storage.
     Repeal of multi-year contract authority for procurement of 
         tanker aircraft (sec. 132)
       The House bill contained a provision (sec. 133) that would 
     repeal section 135 of the National Defense Authorization Act 
     for Fiscal Year 2004 (Public Law 108-136) that, among other 
     things, authorized multi-year procurement of up to 80 
     aircraft as part of a tanker leasing pilot program to acquire 
     100 tanker aircraft, with 20 coming from a long-term lease.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Report on processes used for requirements development for KC-
         (X) tanker aircraft (sec. 133)
       The House bill contained a provision (sec. 134) that would 
     require the Secretary of the Air Force to report on: (1) an 
     evaluation of the process for deriving KC-(X) requirements; 
     (2) the justification for using the KC-135R as the 
     comparative baseline for the KC-(X) competition; and (3) and 
     evaluation of potential aerial refueling platforms derived 
     from commercial aircraft in the range of maximum gross take-
     off weights from 750,000 to 1,000,000 pounds.
       The Senate bill contained no similar provision.
       The agreement includes the House provision amended to 
     require the Secretary of Defense to report on:
       (1) an examination of the requirements for aerial 
     refueling, including an explanation for the use of the KC-
     135R as the baseline for the last KC-(X) solicitation; and
       (2) a summary of commercial derivative or commercial, off-
     the-shelf aircraft available for use as potential aerial 
     refueling platforms using aerial refueling capabilities 
     within the capability bands identified within the KC-(X) 
     Analysis of Alternatives.
       The agreement also includes a requirement that the 
     Secretary of Defense reassess the requirements for aerial 
     refueling that have been most recently validated by the Joint 
     Requirements Oversight Council, and submit the complete 
     results of that reassessment to the congressional defense 
     committees.
     F-22A fighter aircraft (sec. 134)
       The Senate bill contained a provision (sec. 151) that would 
     authorize $497.0 million for Aircraft Procurement, Air Force 
     (APAF) for either (1) advance procurement for F-22A aircraft 
     in fiscal year 2010; or (2) winding down the production line 
     for F-22A aircraft. The next President of the United States 
     would have to decide which alternative would be in the best 
     interests of the Nation and submit a certification of that 
     decision to the congressional defense committees before any 
     of these funds could be spent.
       The House bill contained no similar provision.
       The agreement authorizes $523.0 million in APAF for advance 
     procurement for the F-22A aircraft. The agreement also 
     includes a provision that would prohibit obligating more than 
     $140.0 million of those funds until the next President of the 
     United States: (1) decides whether continuing F-22 production 
     or terminating production would be in the best interests of 
     the Nation; and (2) submits a certification of that decision 
     before March 1, 2009, to the congressional defense 
     committees.

               Subtitle E--Joint and Multiservice Matters

     Annual long-term plan for the procurement of aircraft for the 
         Navy and the Air Force (sec. 141)
       The Senate bill contained a provision (sec. 171) that would 
     require the Secretary of Defense to submit an annual long-
     term plan for procurement of aircraft for the Departments of 
     the Navy and Air Force. The provision would require that the 
     plan project procurement, inventories, retirements, and 
     losses for the following 30-year period.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Report on body armor acquisition strategy (sec. 142)
       The House bill contained a provision (sec. 141) that would 
     require the Secretary of Defense to establish an executive 
     agent for individual body armor and associated components and 
     establish a procurement budget line item for body armor and 
     personnel protection enhancements. This provision would also 
     require the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics to report to the congressional 
     defense committees by March 15, 2009, detailing an assessment 
     of the body armor industrial base and a strategic plan for 
     its sustainment, and to specify the objective technical 
     capabilities intended for the body armor system.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the Secretary of Defense to 
     submit a report to the congressional defense committees, not 
     later than 120 days after enactment, that includes an 
     assessment of the feasibility and advisability of 
     establishing a dedicated procurement line item for body 
     armor; an assessment of the feasibility and advisability of 
     designating one executive agent for the acquisition of body 
     armor for the military departments; and an assessment of all 
     current initiatives implemented by the Secretary of Defense 
     and the military departments that provide improvements to the 
     body armor acquisition process.
     Small arms acquisition strategy and requirements review (sec. 
         143)
       The House bill contained a provision (sec. 142) that would 
     require the Comptroller General of the United States 
     Government Accountability Office to audit the Department of 
     Defense small arms requirements generation process and report 
     to the congressional defense committees by October 1, 2009, 
     on any statutory, regulatory, or procedural barriers that may 
     affect the ability of the military services to rapidly field 
     small arms.

[[Page 20430]]

     This section would also require the Under Secretary of 
     Defense for Acquisition, Technology, and Logistics to provide 
     a report to the congressional defense committees that details 
     small arms inventory, research and development programs, 
     joint acquisition strategy, an analysis of any ongoing small 
     arms capability gap assessments.
       The Senate bill contained a similar provision (sec. 112) 
     that would require the Secretary of the Army to submit a 
     report on the Army's small arms Capabilities Based 
     Assessment. The provision would also recommend that in the 
     event the Army requires a new individual weapon, that the 
     acquisition of such weapons should result from a full and 
     open competition. The provision would also require that the 
     Secretary of Defense submit a report on the feasibility and 
     advisability of conducting a full and open competition for 
     carbine-type rifles.
       The agreement includes the House provision with an 
     amendment that would require the Secretary of Defense to 
     report to the congressional defense committees on the 
     Department's assessments of small arms requirements, 
     modernization plans, and the United States small arms 
     industrial base. The amendment would further direct that in 
     the event that the Secretary of the Army determines that 
     there is a gap in small arms capabilities and that a new 
     individual weapon is required, the Secretary shall procure 
     the new individual weapon using a full and open competition.
     Requirement for common ground stations and payloads for 
         manned and unmanned aerial vehicle systems (sec. 144)
       The House bill contained a provision (sec. 143) that would 
     require the Secretary of Defense to establish a policy for 
     acquisition of intelligence, surveillance, and reconnaissance 
     payloads and ground stations for manned and unmanned aerial 
     vehicle systems that would have as its objective obtaining 
     commonality throughout the Department.
       The Senate bill contained no similar provision.
       The amendment contains the House provision with a 
     clarifying amendment.
     Report on future jet carrier training requirements of the 
         Navy (sec. 145)
       The House bill contained a provision (sec. 144) that would 
     require the Secretary of the Navy to submit a report to the 
     congressional defense committees within 120 days after the 
     date of enactment of this Act on future jet carrier training 
     requirements.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.


                   legislative provisions not adopted

     Rapid acquisition fund
       The House bill contained a provision (sec. 106) that would 
     authorize funds for a rapid acquisition fund.
       The Senate bill did not contain a similar provision.
       The agreement does not include the House provision.
     Applicability of previous teaming agreements for Virginia-
         class submarine program
       The House bill contained a provision (sec. 122) that would 
     amend the multiyear contracting authority contained in 
     section 121 of the National Defense Authorization Act for 
     Fiscal Year 2008 (Public Law 110-181) to require that the 
     Secretary of the Navy certify that the contract to be awarded 
     under such authority comports with the Team Agreement between 
     the two submarine building yards, dated February 16, 1997, 
     which was submitted to the Congress on March 31, 1997.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.
     Limitation on retiring C-5 aircraft
       The House bill contained a provision (sec. 131) that would 
     repeal section 132 of the National Defense Authorization Act 
     for Fiscal Year 2004 (Public Law 108-136) relating to a 
     prohibition on retiring C-5A aircraft until certain testing 
     had been completed. Instead, the provision would prohibit 
     retiring C-5A aircraft until 45 days after the Secretary of 
     the Air Force had submitted a certification that retiring 
     aircraft would not increase operational risk, and a cost 
     analysis assessing different approaches for meeting strategic 
     airlift requirements.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.

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


                              Budget Items

     Research, Development, Test and Evaluation overview
       The budget request included $79.7 billion in Research, 
     Development, Test and Evaluation for the Department of 
     Defense.
       The House bill would authorize $79.8 billion.
       The Senate bill would authorize $79.8 billion.
       The agreement would authorize $77.8 billion.
       Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice. 

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[[Page 20505]]

     Network science, technology and experimentation center
       The budget request included $10.0 million in PE 61104A for 
     the establishment of a network science and technology 
     research center. This is an example of the Army's continued 
     commitment to investments in basic research, especially in 
     the face of severe budget constraints due to the current 
     operations and reset of the force. In particular, it is 
     widely expected that new investments in network science can 
     lead to significant enhancements in operational capabilities.
       The fact that the current Army plan for this effort calls 
     for the majority of funding to go to the establishment of a 
     single research center is a cause for concern. The National 
     Research Council's 2007 report entitled ``Strategy for an 
     Army Center for Network Science, Technology, and 
     Experimentation'' concluded that, ``based on Army needs, the 
     NSTEC [Network Science, Technology, and Experimentation 
     Center] should be a hybrid operation consisting of two or 
     three centralized facilities having interconnectivity to a 
     variety of distributed supporting elements.'' The current 
     Army proposed plan and budget is not consistent with this 
     recommended hybrid approach.
       The Army is directed to ensure that the network science and 
     technology research center be established so as to leverage 
     the benefits of a distributed and networked research 
     community. Clearly, some funding should be retained to 
     support in-house research efforts, but the majority of 
     funding should continue to go to a networked group of 
     investigators selected on the basis of technical merit of 
     proposed research.
       The Army is further directed to ensure that none of the 
     $10.0 million authorized in PE 61104A for the establishment 
     of a network science and technology research center shall be 
     available for the purpose of infrastructure and facilities 
     development. The fact that basic research funding is a 
     precious and scarce resource places a great emphasis on 
     ensuring its use for designated research purposes. Such funds 
     should not be utilized for infrastructure and facilities 
     development, save for the most exceptional circumstances.


                       Items of Special Interest

     Executive helicopter program (VH-71A)
       The budget request included $1,047.8 million in PE 64273N 
     for continued development of the executive helicopter, VH-
     71A. The VH-71A program is intended to provide the 
     replacement helicopter for transportation of the President 
     and Vice President of the United States, heads of state, and 
     other dignitaries. The House report (H. Rept. 110-652) 
     observed that the reported cost increases in the program were 
     sufficient to exceed the 25 percent unit cost increase that 
     would invoke the certification requirements levied by section 
     2433 (e)(2)(A) of title 10, United States Code, commonly 
     referred to as a ``Nunn-McCurdy Breach.'' The House report 
     directed the Secretary of Defense to submit an analysis of 
     potential advantages and disadvantages of conducting a re-
     competition of the program when the Secretary submits that 
     certification.
       The Senate report (S. Rept. 110-335) directed the Secretary 
     of the Navy to submit a VH-71A report to the congressional 
     defense committees outlining VH-71A program:
       (1) performance requirements;
       (2) revised cost estimates;
       (3) causes for cost growth;
       (4) detailed breakout of cost growth related to under-
     estimated requirements; and
       (5) actions being implemented to reduce and control 
     development and production costs.
       The Senate report would also prohibit the Secretary from 
     obligating fiscal year 2009 funds for VH-71A Executive 
     Helicopter Development (PE 64273N) for Increment Two efforts 
     until: (1) the Defense Department completes VH-71A unit cost 
     reporting requirements as prescribed by section 2433 of title 
     10, United States Code; and (2) the Secretary of the Navy 
     submits the VH-71A report described above to the 
     congressional defense committees.
       Additionally, the Senate report directed the Secretary to 
     identify alternatives for extending the service life of 
     Increment One aircraft and increasing their utility in the 
     effort to provide greater return on this investment.
       The agreement directs the Secretary to submit the reports 
     requested in both the House and Senate reports, removes the 
     prohibition on obligating any fiscal year 2009 funding, and 
     directs the Secretary not to restructure the existing VH-71 
     contract until the completion of the Nunn-McCurdy 
     certification process.
     Missile defense force structure and Joint Capabilities Mix 
         studies
       We note that the Joint Integrated Air and Missile Defense 
     Organization, a component of the Joint Staff, has conducted a 
     number of studies over several years concerning the 
     operational requirements of combatant commanders for upper 
     tier ballistic missile defense. These Joint Capabilities Mix 
     (JCM) studies have consistently concluded that U.S. combatant 
     commanders need about twice as many Standard Missile-3 (SM-3) 
     and Terminal High Altitude Area Defense (THAAD) interceptors 
     as the number planned by the Missile Defense Agency (MDA), 
     just to meet their minimum inventory requirements to defend 
     against existing levels of short- and medium- range ballistic 
     missiles.
       We are deeply disappointed that the Department of Defense 
     has not planned or budgeted for even this minimum 
     requirement, and believe that achieving at least this minimum 
     inventory should be the highest priority for MDA. We expect 
     the Department of Defense to budget accordingly starting with 
     the budget submission for fiscal year 2010.
       We are concerned that there is no adequate requirements 
     process in place for MDA to determine the force structure and 
     inventory levels to meet the needs of the combatant 
     commanders. This is a fundamental shortcoming of the 
     Department of Defense's approach to missile defense, and one 
     that needs to be resolved. We expect the Department of 
     Defense to establish an adequate requirements process for 
     missile defense force structure and inventory that ensures 
     that the operational requirements of the regional combatant 
     commanders are fully taken into account in MDA's budget and 
     planning process.
     Missile defense tests and targets
       We are discouraged to note that the Missile Defense Agency 
     (MDA) Test and Targets program has had another disappointing 
     year. MDA failed to conduct a single intercept flight test of 
     the Ground-based Midcourse Defense (GMD) system during fiscal 
     year 2008, and canceled a planned and budgeted GMD flight 
     test, designated FTG-04. Instead, it conducted a sensor 
     flight test, FTX-03. Over the last several years, MDA has not 
     managed to conduct an average of even one GMD intercept 
     flight test per year, despite the fact that Congress has 
     authorized and appropriated over $200.0 million per year to 
     conduct two flight tests each year.
       In addition, a test of the GMD system was aborted in May 
     2007 when the target failed to reach the necessary altitude, 
     and a flight test of the Terminal High Altitude Area Defense 
     (THAAD) system was aborted on September 17, 2008, when the 
     target missile failed shortly after launch.
       We are disappointed to note that MDA chose to cancel FTG-04 
     without first consulting with any of the key stakeholders, 
     including the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics (USD/AT&L), the Director of 
     Operational Test and Evaluation (DOT&E), or the Commander of 
     United States Strategic Command.
       We direct MDA to consult with these organizations, or their 
     designees, prior to any future decision to cancel a flight 
     test, and to report in writing to the congressional defense 
     committees within 1 week of a decision to cancel such a test, 
     indicating the following information: (1) the reasons for the 
     cancellation; (2) the implications and risks for the testing 
     and development program that will result from cancelling the 
     test; (3) a plan describing how the original objectives of 
     the flight test will still be met, notwithstanding the 
     cancellation; (4) the views and recommendations of the 
     organizations consulted; and (5) any modifications in the 
     allocation of budget and testing resources as a result of the 
     cancellation of the flight test.
     Upper tier follow-on to Arrow
       The United States is engaged in a cooperative program with 
     Israel to provide an upper-tier follow-on to the Arrow Weapon 
     System for Israel. There are two systems being pursued under 
     this cooperative program: a land-based version of the 
     existing Standard Missile 3 (SM-3) using an AN/TPY-2 forward-
     based X-band radar, and the development of a new Arrow-3 
     interceptor. The SM-3 interceptor and the AN/TPY-2 radar, 
     which is derived from the radar for the Terminal High 
     Altitude Area Defense (THAAD) system, have already been 
     developed and demonstrated. The Arrow-3 has not yet been 
     developed, and its design has changed several times.
       After a number of changes to Israeli requirements and the 
     planned performance of the Arrow-3 missile, the Missile 
     Defense Agency (MDA) has chosen to pursue development of the 
     Arrow-3 as the primary approach to developing an upper tier 
     missile defense capability for Israel. However, this would be 
     a technically challenging undertaking, involving a number of 
     critical and complex technologies that Israel has never 
     produced previously. Consequently, it is not certain that 
     Israel can succeed in the development of all the Arrow-3 
     technologies in time to meet Israel's required fielding 
     schedule.
       We are concerned that MDA has chosen a technically risky 
     path forward, and is not providing sufficient risk mitigation 
     through the land-based SM-3 option. MDA has indicated it 
     intends to pursue an Arrow-3 development strategy based on 
     knowledge points, with the stated intention of being able to 
     curtail or stop the program if it does not meet its knowledge 
     points on schedule.
       However, MDA has not demonstrated an ability to reduce 
     funding for other programs that have not met their knowledge 
     points on schedule. This suggests that an Arrow-3 development 
     program could continue to be the primary path even if it does 
     not meet its knowledge points or its schedule, thus 
     precluding the option of having the proven SM-3 and AN/TPY-2 
     technology serve as a suitable upper tier option on schedule.

[[Page 20506]]

       Therefore, we direct the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics to review MDA's 
     proposed approach and submit to the congressional defense 
     committees, no later than April 15, 2009, a report providing 
     a plan for risk mitigation for the U.S.-Israel upper tier 
     program of cooperation that provides a cost-effective path to 
     providing an upper tier missile defense capability for 
     Israel.
     Wide area airborne surveillance
       The Senate report (110-335) accompanying S. 3001 urged the 
     Department of Defense to rapidly define and acquire next 
     generation wide area airborne surveillance (WAAS) 
     capabilities to augment existing and planned full motion 
     video (FMV) platform deployments, and possibly to help limit 
     the number of additional orbits of FMV aircraft needed in the 
     future.
       We are encouraged that the Defense Department at senior 
     levels is focused on the WAAS requirement and the range of 
     potential solutions. However, a number of concerns persist.
       While significant funds have been allocated for development 
     of the WAAS collection system, very little money is available 
     for the processing, exploitation, and dissemination of the 
     vast amount of imagery that the WAAS system will produce. 
     This imbalance will prevent effective fielding of a WAAS 
     capability in the timeframe required.
       There is confusion as to whether the WAAS system is 
     intended to complement or replace existing and planned 
     deployments of narrow-field-of-view FMV assets. This 
     confusion creates concern and opposition from deployed 
     forces. If it is possible for a WAAS system to substitute for 
     FMV assets, the required performance level (in terms of 
     resolution, frame rate, look angles, and the like) cannot be 
     fielded at least for a period of years. While it is important 
     for the Department to evaluate now what levels of performance 
     might be achievable in subsequent increments of a WAAS 
     program, the near-term focus must be on fielding capabilities 
     that complement existing assets and operate with them in a 
     systems-of-systems network.
       In this regard, we are concerned that insufficient 
     attention and resources are being devoted to rapidly fielding 
     a command and control capability that will permit, on a 
     large-scale, integrated operations involving WAAS platforms, 
     FMV assets, and signals intelligence systems across services, 
     national agencies, and various echelons of command. We 
     support the recent initiative by the Air Force WAAS program 
     office to utilize the Network-Centric Collaborative Targeting 
     system, now reaching Initial Operational Capability, as the 
     basis for this important command and control capability.
       We direct that, within 90 days of the date on which there 
     is a down select by the WAAS prime integrator, the Deputy 
     Secretary of Defense submit a report to the congressional 
     defense and intelligence committees that characterizes WAAS 
     collection and exploitation requirements, the program 
     increments and funding to meet the requirements, the 
     operational concept for WAAS increments, and the means by 
     which WAAS, FMV systems, and other sensors will be operated 
     together to support the find, fix, and finish targeting 
     process.

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (sec. 201)
       The House bill contained a provision (sec. 201) that would 
     authorize appropriations for fiscal year 2009 for the use of 
     the Department of Defense for research, development, test and 
     evaluation.
       The Senate bill contained a similar provision (sec. 201).
       The agreement includes a provision that would authorize 
     appropriations for fiscal year 2009 for the use of the 
     Department of Defense for research, development, test and 
     evaluation.
     Authorization for defense science and technology (sec. 202)
       The House bill contained a provision (sec. 202) that would 
     authorize appropriations for fiscal year 2009 for the use of 
     the Department of Defense for science and technology 
     activities.
       The Senate bill contained a similar provision (sec. 202).
       The agreement includes a provision that would authorize 
     appropriations for fiscal year 2009 for the use of the 
     Department of Defense for science and technology activities.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     Additional determinations to be made as part of Future Combat 
         Systems milestone review (sec. 211)
       The House bill contained a provision (sec. 211) that would 
     amend section 214 of the John Warner National Defense 
     Authorization Act for 2007 (Public Law 109-364) by adding 
     additional determinations to be made by the Secretary of 
     Defense during the Future Combat Systems (FCS) program 
     review.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
       We intend that the additional determinations required 
     during the FCS program review should be applied with respect 
     to threshold FCS system of system technologies, not 
     surrogates.
     Analysis of Future Combat Systems communications network and 
         software (sec. 212)
       The House bill contained a provision (sec. 212) that would 
     require the Assistant Secretary of Defense, Networks and 
     Information Integration (ASD NII), to conduct an independent 
     study and report to the congressional defense committees by 
     July 1, 2009, on possible vulnerabilities of the Future 
     Combat Systems (FCS) communications network. The purpose of 
     this study is to inform the review of the FCS program 
     mandated by section 214 of the John Warner National Defense 
     Authorization Act for 2007 (Public Law 109-364).
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would provide the Department with additional 
     time to complete the analysis and require the ASD NII to 
     assess, in coordination with the Director of Operational Test 
     and Evaluation, the synchronization of the funding, schedule, 
     and technology maturity of the Warfighter Information 
     Network-Tactical and Joint Tactical Radio System in programs 
     in relation to the FCS program.
     Future Combat Systems manned ground vehicle selected 
         acquisition reports (sec. 213)
       The House bill contained a provision (sec. 213) that would 
     require the Secretary of the Army to submit to the 
     congressional defense committees selected acquisition reports 
     as defined in section 2432(c) of title 10, United States 
     Code, on each of the eight Future Combat Systems (FCS) manned 
     ground vehicle variants. The reports are required by February 
     15 of each year from 2009 to 2015.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment that would include any additional manned 
     ground vehicle variants designated in FCS Acquisition Reports 
     after the date of enactment.
     Separate procurement and research, development, test, and 
         evaluation line items and program elements for Sky 
         Warrior unmanned aerial systems (sec. 214)
       The House bill contained a provision (sec. 214) that would 
     require the Secretary of Defense to ensure that the 
     Department of Defense program and budget exhibits for the 
     Army's Sky Warrior unmanned aerial system break out that 
     program into separate program elements and line items.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Restriction on obligation of funds for the Warfighter 
         Information Network-Tactical program (sec. 215)
       The House bill contained a provision (sec. 215) that would 
     restrict obligation of 80 percent of research and development 
     funds authorized for appropriation for the Warfighter 
     Information Network-Tactical, Increment 3 program until 15 
     days after receipt by the congressional defense committees of 
     certification from the Under Secretary of Defense for 
     Acquisition, Technology and Logistics that the program has an 
     approved acquisition program baseline, a new independent cost 
     estimate, and the Director, Defense Research and Engineering 
     has completed a technology readiness assessment.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that reduces the amount of funding restricted 
     pending the certification from 80 percent to 50 percent and 
     makes other clarifications.
     Limitation on source of funds for certain Joint Cargo 
         Aircraft expenditures (sec. 216)
       The House bill contained a provision (sec. 216) that would 
     require the Secretary of the Army to fund certain 
     expenditures for the Joint Cargo Aircraft (JCA) through 
     procurement or research, development, test and evaluation 
     accounts, rather than from other appropriations accounts.
       The Senate bill contained no similar provision.
       The agreement included the House provision with an 
     amendment that would modify the provision to place the same 
     requirement on the Secretary of the Air Force.
       The report (H. Rept. 110-652) accompanying the House bill 
     noted that, at the time of the report, the Air Force was 
     reporting a unit cost for JCA of $60.7 million, and was 
     reporting a unit cost for C-130J aircraft of $56.7 million. 
     After further discussion with the Air Force acquisition 
     officials and clarification of terminology, we believe that a 
     fairer, apples-to-apples comparison of such costs would raise 
     the comparable average procurement unit cost for a C-130J to 
     $84.2 million, in terms of fiscal year 2007 dollars.
     Requirement for plan on overhead nonimaging infrared systems 
         (sec. 217)
       The Senate bill contained a provision (sec. 211) that would 
     direct the Secretary of the Air Force to develop a 
     comprehensive plan to conduct and support research, 
     development, and demonstration of technologies that could 
     evolve into the next generation of overhead nonimaging 
     systems. The plan

[[Page 20507]]

     would also include an explanation of how such systems would 
     be tested, including any flight or on-orbit testing as well 
     as how and when the technologies would transition to an 
     acquisition program. In addition, the provision would 
     prohibit appropriation of more than 50 percent of the funds 
     authorized to be appropriated for the third generation 
     infrared surveillance program until the plan is submitted to 
     the congressional defense committees.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would direct the Secretary of Defense and the 
     Director of National Intelligence to conduct the plan. In 
     addition the amendment would add a description of the 
     research, development and demonstration activities, as an 
     additional element to the plan.
     Advanced energy storage technology and manufacturing (sec. 
         218)
       The Senate bill contained a provision (sec. 212) that would 
     require the Department of Defense to develop a technology and 
     manufacturing roadmap for battery technologies.
       The House bill contained no similar provision.
       The agreement includes a provision that would expand the 
     scope of the roadmapping exercise to include all relevant 
     energy storage technologies, such as, but not limited to, 
     batteries, fuel cells and capacitors. The provision would 
     further add a requirement for the Department to provide a 
     detailed report of the investment levels in energy storage 
     technologies.
       The roadmap development should be primarily lead by the 
     Director of Defense Research and Engineering, the Deputy 
     Under Secretary of Defense for Industrial Policy, and Service 
     Acquisition Executives, so that the roadmap accurately 
     reflects technology development, industrial base, program 
     requirements, and cost drivers. It is further expected that 
     Service acquisition program offices with significant energy 
     storage technology requirements, the Joint Defense 
     Manufacturing Technology Panel, the Defense Logistics Agency, 
     and appropriate organizations within the Department of Energy 
     will all participate in the roadmap development. The roadmap 
     should not focus solely on science and technology activities 
     and existing investments.
       It is expected that a thorough understanding of resource 
     allocation and current investment in advanced energy storage 
     technologies will help clarify the investment shortfalls and 
     capability gaps that should be emphasized in the technology 
     and manufacturing roadmap.
     Mechanisms to provide funds for defense laboratories for 
         research and development of technologies for military 
         missions (sec. 219)
       The Senate bill contained a provision (sec. 213) that would 
     authorize the Secretary of Defense to permit laboratory 
     directors to utilize up to 3 percent of laboratory funds for 
     research and development, technology transition, and 
     workforce development activities.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would terminate the authority after 4 years.
       The utilization of this authority and its impact on the 
     mission performance and technical capabilities of the 
     laboratories will be closely monitored by the congressional 
     defense committees. All efforts to supply the needed 
     authorities and resources to the defense laboratories to 
     enable them to effectively and efficiently perform their 
     designated missions are supported and encouraged.
     Requirements for certain airborne intelligence collection 
         systems (sec. 220)
       The Senate bill contained a provision (sec. 215) that would 
     require that each airborne collection system within the 
     Department of Defense that is connected to the Distributed 
     Common Ground/Surface System to have the ability to operate 
     with the Network-Centric Collaborative Targeting System, 
     unless the Chairman of the Joint Requirements Oversight 
     Council waives the requirement on a case-by-case basis.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Limitation on obligation of funds for enhanced AN/TPQ-36 
         Radar System pending submission of report (sec. 221)
       The House bill contained a provision (sec. 236) that would 
     limit the amount of funds provided to the program until the 
     Secretary of the Army provides the congressional defense 
     committees with a plan to transition the Counter-Rockets, 
     Artillery, and Mortars (C-RAM) program to a program of 
     record.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.

                  Subtitle C--Missile Defense Programs

     Annual Director of Operational Test and Evaluation 
         characterization of operational effectiveness, 
         suitability, and survivability of the Ballistic Missile 
         Defense System (sec. 231)
       The Senate bill contained a provision (sec. 234) that would 
     require the annual report of the Director of Operational Test 
     and Evaluation on the testing of the Ballistic Missile 
     Defense System (BMDS) to include a characterization of the 
     operational effectiveness, suitability, and survivability of 
     the BMDS and its elements that have been fielded or tested 
     before the end of the preceding fiscal year.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Independent study of boost-phase missile defense (sec. 232)
       The House bill contained a provision (sec. 221) that would 
     require an independent study of boost-phase missile defense 
     programs, specifically the Airborne Laser and the Kinetic 
     Energy Interceptor. The study would assess a variety of 
     relevant factors and compare the results to non-boost-phase 
     missile defense systems. The provision would require the 
     independent study to be submitted to the congressional 
     defense committees.
       The Senate bill contained a similar provision (sec. 235).
       The agreement includes the House provision with an 
     amendment that would combine elements of the Senate provision 
     with the House provision.
     Limitation on availability of funds for procurement, 
         construction, and deployment of missile defenses in 
         Europe (sec. 233)
       The House bill contained a provision (sec. 222) that would 
     limit the availability of fiscal year 2009 and future funds 
     for procurement, site activation, construction, preparation 
     of equipment for, or deployment of a long-range missile 
     defense system until the following conditions have been met: 
     (1) the Governments of Poland and the Czech Republic have 
     each signed and ratified the necessary agreements allowing 
     for such deployment; and (2) 45 days have elapsed after 
     Congress receives the independent assessment required in 
     section 226 of the National Defense Authorization Act for 
     Fiscal Year 2008 (Public Law 110-181). The provision would 
     also limit the availability of funds for the acquisition and 
     deployment of operational interceptor missiles for the 
     planned European deployment until the Secretary of Defense 
     certifies, after receiving the views of the Director of 
     Operational Test and Evaluation, that the interceptor has 
     demonstrated, through successful, operationally realistic 
     flight testing, a high probability of working in an 
     operationally effective manner and the ability to accomplish 
     its mission.
       The Senate bill contained a similar provision (sec. 232), 
     with the differences being that it would: (1) limit the 
     effect of the general limitation to the availability of 
     fiscal year 2009 funds; (2) clarify that each host nation 
     would need to give final approval to any missile defense 
     agreements concerning the deployment of missile defense 
     components on its territory; and (3) authorize the initial 
     long lead procurement funds for the proposed European 
     interceptors, since the long-lead components are 100 percent 
     common to the three-stage variant of the interceptor.
       The agreement includes a combined provision that would 
     limit the availability of fiscal year 2009 and future funds 
     for procurement, site activation, construction, preparation 
     of equipment for, or deployment of a long-range missile 
     defense system until the following conditions have been met: 
     (1) in the case of the proposed midcourse radar element, the 
     host nation has signed and ratified the agreements needed to 
     allow for the deployment of such radar in the host nation; 
     (2) in the case of the proposed long-range missile defense 
     interceptor element, the condition in paragraph (1) has been 
     met, and the host nation has signed and ratified the 
     agreements needed to allow for the deployment of such 
     interceptor element in the host nation; and (3) 45 days have 
     elapsed after Congress has received the report required by 
     section 226(c)(6) of the National Defense Authorization Act 
     for Fiscal Year 2008 (Public Law 110-181). The provision 
     would also limit the availability of fiscal year 2009 funding 
     for acquisition (other than initial long-lead funding) or 
     deployment of the proposed interceptor until the Secretary 
     provides the certification required in both bills.
     Review of the ballistic missile defense policy and strategy 
         of the United States (sec. 234)
       The Senate bill contained a provision (sec. 231) that would 
     require the Secretary of Defense to conduct a review of the 
     ballistic missile defense policy and strategy of the United 
     States. The provision would require the Secretary to submit a 
     report to Congress not later than January 31, 2010, setting 
     forth the results of the review.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would add several elements to be required in 
     the review.
     Airborne Laser System (sec. 235)
       The Senate bill contained a provision (sec. 233) that would 
     require the Director of Operational Test and Evaluation 
     (DOT&E) to assess and report on the operational 
     effectiveness, suitability, and survivability of the Airborne 
     Laser (ABL) System. The provision would also limit the 
     availability of funds for procurement of a second or 
     subsequent ABL

[[Page 20508]]

     aircraft until the Secretary of Defense, after receiving the 
     DOT&E assessment, submits a certification that the ABL system 
     has demonstrated a high probability of being operationally 
     effective, suitable, survivable, and affordable.
       The House bill contained a provision (sec. 221) that would, 
     among other things, prohibit the use of funds to acquire a 
     second ABL aircraft until 60 days after Congress receives an 
     independent study on boost-phase missile defense programs 
     required by the provision.
       The agreement includes the Senate provision with an 
     amendment that would incorporate the House funding 
     prohibition into the Senate provision.
     Activation and deployment of AN/TPY-2 forward-based X-band 
         radar (sec. 236)
       The Senate bill contained a provision (sec. 237) that would 
     authorize the use of up to $89.0 million in funds for 
     defense-wide research, development, test, and evaluation for 
     the activation and deployment of an AN/TPY-2 X-band radar to 
     a classified location. It would also require the Secretary of 
     Defense to submit a report to Congress on such deployment 
     before the funds would be available for the deployment.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.

                          Subtitle D--Reports

     Biennial reports on joint and service concept development and 
         experimentation. (sec. 241)
       The Senate bill contained a provision (sec. 252) that would 
     reduce the reporting requirement on Department of Defense 
     concept development and experimentation activities and 
     include reporting on related activities of the military 
     services.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would clarify the reporting requirements.
       The joint and service level for concept development and 
     experimentation activities can support efforts at innovation 
     and transformation in doctrine, training, materiel 
     acquisition and other areas of Departmental activity. As the 
     executive agent for joint warfighting experimentation, the 
     Commander of United States Joint Forces Command has a unique 
     ability and responsibility to use the results of the 
     Department's various concept development and experimentation 
     activities to advocate for the transformation of investment 
     strategies, defense acquisition policies, requirements 
     generation, doctrine development, and force structure to 
     enhance joint warfighting capabilities.
     Report on the participation of the historically black 
         colleges and universities and minority serving 
         institutions in research and educational programs and 
         activities of the Department of Defense (sec. 242)
       The House bill contained a provision (sec. 232) that would 
     require an assessment of the Historically Black Colleges and 
     Universities (HBCU/MI) and Minority Serving Institutions 
     program.
       The Senate bill contained no similar provision.
       The agreement includes a provision that would require an 
     independent assessment of the participation of HBCU/MI, 
     Hispanic Serving Institutions, Tribal Colleges and 
     Universities, and other minority postsecondary institutions 
     in Department of Defense research, training, and educational 
     activities.
       At a time when the Department and the nation are facing a 
     shortage of personnel in growing areas of science and 
     engineering, this community of educational institutions and 
     the population they serve can make a valuable contribution to 
     the missions of the Department of Defense.
     Report on Department of Defense response to findings and 
         recommendations of the Defense Science Board Task Force 
         on Directed Energy Weapons (sec. 243)
       The Senate bill contained a provision (sec. 255) that would 
     require the Department of Defense to report on responses to 
     the findings and recommendations of the Defense Science Board 
     Task Force on Directed Energy Weapons.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with a 
     clarifying amendment.

                       Subtitle E--Other Matters

     Modification of systems subject to survivability testing 
         oversight by the Director of Operational Test and 
         Evaluation (sec. 251)
       The House bill contained a provision (sec. 231) that would 
     clarify the responsibilities of the Secretary of Defense and 
     the Director of Operational Test and Evaluation with respect 
     to oversight and reporting on survivability testing for 
     personnel protective equipment and other defense systems.
       The Senate bill contained a similar provision (sec. 251).
       The agreement includes the House provision with an 
     amendment that would allow the Secretary of Defense to 
     authorize the Director of Operational Test and Evaluation to 
     perform statutorily mandated monitoring and reporting on a 
     broader range of defense systems. The amendment makes 
     additional clarifying amendments to sections 2366 and 139 of 
     title 10, United States Code. This provision will enable the 
     Secretary and Director to have appropriate levels of 
     oversight of systems that require survivability and lethality 
     testing, including certain items of personnel protective 
     equipment and non lethal weapons. It is expected that the 
     acquisition and testing community should continue to work 
     together to develop and adequately test systems to validate 
     their operational effectiveness, suitability and 
     survivability, but still deliver new capabilities in a rapid 
     and efficient fashion.
     Technology-neutral information technology guidelines and 
         standards to support fully interoperable electronic 
         personal health information for the Department of Defense 
         and Department of Veterans Affairs (sec. 252)
       The House bill contained a provision (sec. 233) that would 
     amend section 1635 of the National Defense Authorization Act 
     for Fiscal Year 2008 (Public Law 110-181) to add additional 
     reporting requirements to the annual report required by that 
     section. The provision would also require the Director of the 
     Department of Defense-Department of Veterans Affairs 
     Interagency Program Office to report within 12 months after 
     the date of enactment of this Act on the development of 
     information technology infrastructure guidelines and 
     standards for use by the Departments of Defense and Veterans 
     Affairs to enable fully interoperable electronic personal 
     health information.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would eliminate the requirement for reporting 
     to the appropriate congressional committees on the specific 
     guidelines and standards developed or adopted under this 
     provision.
       The Department of Defense and Department of Veterans 
     Affairs should, to the extent practicable, pursue guidelines 
     and standards that are consistent with other similar ongoing 
     federal efforts and with relevant guidance and directives for 
     the development of information technology (IT) systems in the 
     Department of Defense and Department of Veterans Affairs.
       Within the Department of Defense, the medical IT community 
     should work closely with Assistant Secretary of Defense for 
     Networks and Information Integration and the Business 
     Transformation Agency, both of which have valuable experience 
     in evaluating and selecting standards for large-scale 
     enterprise systems.
     Assessment of technology transition programs and repeal of 
         reporting requirement (sec. 253)
       The House bill contained a provision (sec. 234) that would 
     require the Department of Defense to assess the feasibility 
     of consolidating various technology transition accounts into 
     a unified effort. The House provision would also repeal the 
     requirement for the Technology Transition Initiative (TTI).
       The Senate bill contained a provision (sec. 253) which 
     would repeal the recurring reporting requirement relating to 
     the TTI program.
       The agreement includes a provision which requires the Under 
     Secretary of Defense for Acquisition, Technology and 
     Logistics (USD (AT&L)) to assess the feasibility of 
     consolidating technology transition accounts into one account 
     to be managed at the Department-level. The agreement also 
     requires the USD (AT&L) to submit a report to Congress on the 
     aforementioned assessment and include recommendations 
     concerning the streamlining and improvement of technology 
     transition activities throughout the Department. Finally, the 
     agreement repeals the Department's annual TTI reporting 
     requirement.
       Efficient technology transition is a mainstay of the 
     Department's ability to deliver military advantage to the 
     operational force. Continued employment of the current regime 
     of initiatives and programs may not be the most effective 
     approach to transitioning promising technologies to the 
     force. The USD (AT&L) is expected to characterize the 
     limitations of the existing transition activities and provide 
     recommendations to improve the process of transitioning 
     technologies. The overall goals of the various Department of 
     Defense technology transition programs are laudable, but 
     there is a need to better understand the Department's 
     requirements for additional authorities or for the repeal of 
     unnecessary authorities that could improve technology 
     transition.
     Trusted defense systems (sec. 254)
       The House bill contained a provision (sec. 235) that would 
     require the Department of Defense to perform an assessment, 
     develop a strategy, issue interim policy guidance, and 
     provide a report to Congress related to assuring trust in the 
     supply chain for certain defense systems.
       The Senate bill contained a related provision (sec. 256) 
     that required an assessment of the capabilities of the 
     Department to assess trust in semiconductor technologies.
       The agreement includes a provision that requires the 
     Secretary of Defense to assess the trust in, and 
     vulnerabilities within the supply chain of key electronic 
     components of major defense acquisition programs; to assess 
     methods for verifying trust of DoD semiconductors; to produce 
     a strategy for managing supply chain risk and trust

[[Page 20509]]

     verification for semiconductors; to establish policies 
     necessary to support these activities; and to report to 
     Congress on the assessment and policies.
       There is growing concern that major manufacturing for many 
     mission-critical semiconductors have moved offshore, 
     primarily to Asia. The inherent risks associated with 
     procuring electronic components that have been designed, 
     fabricated, tested, or packaged in unsecure facilities abroad 
     demand a well planned and structured response.
       Therefore, the Secretary is instructed to coordinate the 
     various current efforts designed to study and protect 
     mission-critical electronic components and create an 
     integrated strategy for managing supply chain risk and 
     ensuring trust of semiconductors used in applications across 
     all services. Only by engaging in consultation with industry, 
     academia and other agencies will the Department be able to 
     fashion the cross-cutting strategy needed to address a 
     challenge that confronts the most complicated and important 
     acquisition programs and threatens every part of the 
     operational force.
     Capabilities-based assessment to outline a joint approach for 
         future development of vertical lift aircraft and 
         rotorcraft (sec. 255)
       The House bill contained a provision (sec. 237) that would 
     require the Secretary of Defense and the Chairman of the 
     Joint Chiefs of Staff to develop an assessment of a joint 
     approach to developing future vertical lift aircraft and 
     rotorcraft, and to submit a report on that assessment.
       The Senate bill contained no similar provision.
       The agreement includes the House provision, with the 
     understanding that the current program for modernizing the 
     Marine Corps' heavy lift rotorcraft fleet shall not be 
     subsumed within any joint program office that might emerge 
     from this assessment.
     Executive agent for printed circuit board technology (sec. 
         256)
       The Senate bill contained a provision (sec. 254) that would 
     require the establishment of an executive agent to oversee 
     Department of Defense activities related to printed circuit 
     board technologies.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that requires the Secretary of Defense to designate 
     an executive agent for printed circuit board and interconnect 
     technologies. The provision specifies roles and 
     responsibilities that the Secretary of Defense will charge to 
     the executive agent.
       The Secretary may include further duties, especially as 
     they may pertain to ensuring that the Department maintains 
     and grows its capability for establishing trust in 
     interconnect technologies. While it is critical that the 
     executive agent designated by the Secretary develop a well-
     planned roadmap which details current and future technologies 
     needed and the logistics network necessary to provide them, 
     the executive agent should also draw together the specific 
     timeline that must be realized and funding that must be 
     obtained to successfully implement the roadmap going forward.
       Finally, the provision directs the Secretary of Defense to 
     ensure that the executive agent is properly resourced to 
     implement the task and is supported throughout the military 
     departments.
     Review of conventional prompt global strike technology 
         applications and concepts (sec. 257)
       The House bill contained a provision (sec. 238) that would 
     limit the use of funds for conventional prompt global strike 
     (PGS) in fiscal year 2009 to only those activities expressly 
     delineated in the expenditure plan for fiscal years 2008 and 
     2009, which was required by section 243 of the National 
     Defense Authorization Act for Fiscal Year 2008 (Public Law 
     110-181) or activities otherwise expressly authorized by 
     Congress. The expenditure plan was transmitted to the 
     congressional defense committees on March 24, 2008. The 
     provision would also require the Secretary of Defense to 
     submit a report on PGS concepts with the fiscal year 2010 
     budget request.
       The Senate bill contained a similar provision (sec. 1054) 
     that would direct the Secretary of Defense, in consultation 
     with the Secretary of State, to conduct a review of the 
     prompt global strike technologies that will be demonstrated 
     beginning in fiscal year 2010. The report would set forth the 
     cost of the demonstration, identify any legal, treaty, or 
     policy related issues that might be associated with the 
     concept demonstrated or the demonstration itself, and whether 
     and to what extent there is a possibility that the concept or 
     the demonstration itself could be confused with a nuclear 
     weapons system. In addition, the report would set forth a 
     description of the types of targets against which the concept 
     demonstrated might be used. The report would be submitted to 
     the congressional defense committees no later than 30 days 
     after the date on which the budget is submitted.
       The agreement includes the Senate provision with an 
     amendment that would limit the use of funds for conventional 
     PGS in fiscal year 2009. The amendment would also direct the 
     Secretary of Defense to submit a report to the congressional 
     defense committees that describes the technologies planned to 
     be developed during fiscal year 2009 and how those 
     technologies relate to PGS options and concepts. The due date 
     for this report would be April 1, 2009.
       In addition, the amendment would modify the review and 
     assessment to be conducted by the Secretary of Defense in 
     consultation with the Secretary of State, to include 
     recommendations that would mitigate such risk in the 
     assessment as to whether a PGS concept could be misconstrued 
     as a nuclear weapon or delivery system. The amendment would 
     further modify the assessment to include an assessment of the 
     intelligence needed to support the use of any PGS concept. A 
     report on this review and assessment would be due no later 
     than September 1, 2009.
       We note that the Department of Defense has expressed 
     interesting in examining biconic technology as part of an 
     alternative re-entry system/warhead engineering and delivery 
     vehicle options/development but included no plan to 
     manufacture a biconic vehicle in the expenditure plan for 
     fiscal years 2008 and 2009. As a result no funds are 
     available in fiscal year 2009 to manufacture such a vehicle.
       We note that the Department is approaching a PGS concept 
     definition milestone in the fiscal year 2010 timeframe. We 
     encourage the Department to weigh carefully all aspects of 
     PGS concept alternatives, including the technical, cost, 
     operational, and policy considerations associated with each 
     option.
       We note that the National Research Council of the National 
     Academy of Sciences has recently completed a report titled 
     ``U.S. Prompt Global Strike: Issues for 2008 and Beyond.'' 
     This report was prepared at the request of Congress. The 
     Department should review this and other PGS related reports 
     as part of the process to determine which PGS concept 
     alternatives to pursue.
       We direct the Secretary to submit a copy of the report to 
     the Committee on Foreign Affairs of the House of the 
     Representatives and the Committee on Foreign Relations of the 
     Senate.


                   Legislative Provisions Not Adopted

     Assured funding for certain information security and 
         information assurance programs of the Department of 
         Defense
       The Senate bill contained a provision (sec.214) that would 
     provide a source of funding for a new technology development 
     activity for information security.
       The House bill contained no similar provision.
       The agreement does not include the provision.
     Study on space-based interceptor element of ballistic missile 
         defense system
       The Senate bill contained a provision (sec. 236) that would 
     require an independent entity to conduct an assessment of the 
     feasibility and advisability of developing a space-based 
     interceptor element to the ballistic missile defense system.
       The House bill contained no similar provision.
       The agreement does not include the Senate provision.
     Visiting National Institutes of Health senior neuroscience 
         fellowship program
       The House bill contained a provision (sec. 239) that would 
     establish a visiting National Institutes of Health 
     neuroscience fellowship within the Department of Defense.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
       Neuroscience can play an important role in improving 
     capabilities in combat casualty care, addressing traumatic 
     brain injuries and post traumatic stress disorders, decision 
     making, and human-machine interfaces, among other areas. The 
     Department of Defense is directed to continue to support 
     research in this area, including expanding collaboration with 
     the National Institutes of Health on research, personnel 
     exchanges, technology transition, and other activities.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

     Operation and maintenance funding (sec. 301)
       The House bill contained a provision (sec. 301) that would 
     authorize fiscal year 2009 funding levels for all operation 
     and maintenance accounts.
       The Senate bill contained a similar provision (sec. 301).
       The agreement includes this provision.

                  Subtitle B--Environmental Provisions

     Authorization for Department of Defense participation in 
         conservation banking programs (sec. 311)
       The House bill contained a provision (sec. 311) that would 
     authorize the Department of Defense to participate in 
     conservation mitigation bank programs.
       The Senate bill contained a similar provision (sec. 2811).
       The agreement includes the House provision.
     Reimbursement of Environmental Protection Agency for certain 
         costs in connection with Moses Lake Wellfield Superfund 
         Site, Moses Lake, Washington (sec. 312)
       The House bill contained a provision (sec. 312) that would 
     authorize the Department of

[[Page 20510]]

     Defense to reimburse the Environmental Protection Agency for 
     certain costs in connection with Moses Lake Wellfield 
     Superfund Site, Moses Lake, Washington.
       The Senate bill contained a similar provision (sec. 312).
       The agreement includes the House provision. 
     Expand cooperative agreement authority for management of 
         natural resources to include off-installation mitigation 
         (sec. 313)

[[Page 20511]]

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[[Page 20546]]

       The House bill contained a provision (sec. 313) that would 
     expand the authority of the Department of Defense to enter 
     cooperative agreements for the management of natural 
     resources to cover off-installation mitigation efforts.
       The Senate bill contained a similar provision (sec. 311).
       The agreement includes the House provision.
     Expedited use of appropriate technology related to unexploded 
         ordnance detection (sec. 314)
       The House bill contained a provision (sec. 314) that would 
     require research on, deployment of, and training with 
     unexploded ordnance (UXO) detection instrument technologies.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the expedited operational use of 
     appropriate UXO detection technologies developed inside or 
     outside the Department of Defense and further require the 
     Secretary of Defense to report on activities related to the 
     development and deployment of UXO detection technologies.
     Closed loop re-refining of used motor vehicle lubricating oil 
         (sec. 315)
       The House bill contained a provision (sec. 315) that would 
     require a report on Department of Defense policies concerning 
     the sale and disposal of used motor vehicle lubricating oil.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the Secretary of Defense, rather 
     than the Comptroller General to submit the report; extend the 
     deadline for the report to one year; delete the requirement 
     to implement closed loop policies; and make certain 
     clarifying changes.
     Comprehensive program for the eradication of the brown tree 
         snake population from military facilities in Guam (sec. 
         316)
       The Senate bill contained a provision (sec. 313) that would 
     direct the Department of Defense to establish a comprehensive 
     program to control and, to the extent practicable, eradicate 
     the brown tree snake (Boiga irregularis) population from 
     military facilities in Guam and prevent their spread to other 
     areas.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
       We are concerned about the adverse effects of the brown 
     tree snake on native species on Guam and the ecological and 
     economic risks posed by its inadvertent introduction to other 
     areas in the Pacific region and the United States. We 
     recommend that the Department of Defense place appropriate 
     emphasis on brown tree snake interdiction and population 
     reduction for the dual purposes of preventing inadvertent 
     introduction outside of Guam and supporting programs to 
     protect and restore native species on Guam. We further 
     recommend that the Department execute this program in 
     cooperation with the Government of Guam and consistent with 
     its Integrated Natural Resources Management Plans.

                 Subtitle C--Workplace and Depot Issues

     Comprehensive analysis and development of single government-
         wide definition of inherently governmental function and 
         criteria for critical functions (sec. 321)
       The House bill contained a provision (sec. 322) that would 
     require the Office of Management and Budget, in consultation 
     with appropriate representatives of federal agencies, to 
     conduct a comprehensive analysis of existing definitions of 
     inherently governmental functions and other functions that 
     should be performed by government employees, and to clarify 
     those definitions as determined appropriate.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Study on future depot capability (sec. 322)
       The House bill contained a provision (sec. 323) that would 
     require the Secretary of Defense to provide the Committees on 
     Armed Services of the Senate and the House of Representatives 
     an independent, quantitative assessment of the organic 
     capability that will be required to provide depot-level 
     maintenance in the post-reset environment. The provision 
     would require that the Comptroller General review the report 
     and provide findings within 90 days of submission.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the independent assessment to 
     review budget displays and the current visibility of reported 
     depot workload to Congress.
       We were made aware by a recent reprogramming action, FY 08-
     37 PA, that certain depot maintenance is not being reported 
     in the military departments' depot budget lines. In addition, 
     the military departments' inflexibility in budgeting between 
     depot and operations budget lines may cause them to make less 
     than optimal budgeting and maintenance workload decisions. 
     The additional study requirement on the adequacy of 
     maintenance workload visibility in reports and budget 
     displays to Congress addresses these concerns.
     Government Accountability Office review of high-performing 
         organizations (sec. 323)
       The House bill contained a provision (sec. 324) that would 
     restrict the authority of the Department of Defense to 
     establish high-performing organizations through business 
     process reengineering.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment requiring the Government Accountability Office to 
     review the Department's use of high-performing organizations.
     Consolidation of Air Force and Air National Guard aircraft 
         maintenance (sec. 324)
       The House bill contained a provision (sec. 326) that would 
     prohibit the Secretary of the Air Force from consolidating 
     Air National Guard with active-duty Air Force maintenance 
     activities and facilities without first consulting with, and 
     obtaining the consent of, the National Guard Bureau. It would 
     require the Secretary of the Air Force to report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives on the assumptions and criteria used to 
     evaluate the feasibility of consolidation.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the Secretary of the Air Force 
     to submit reports to the Committees on Armed Services of the 
     Senate and the House of Representatives prior to the 
     consolidation of any active and Air National Guard aircraft 
     repair facilities and personnel. Additionally, the agreement 
     would require that an assessment by the Chief of the National 
     Guard Bureau accompany the Secretary of the Air Force's 
     reports and that the Secretary of Defense certify that any 
     consolidation is in the national interest and would not 
     adversely affect Air National Guard missions.
     Report on Air Force civilian personnel consolidation plan 
         (sec. 325)
       The House bill contained a provision (sec. 327) that would 
     prohibit the consolidation of certain civilian personnel 
     functions.
       The Senate bill contained no similar provision.
       The agreement contains the House provision with an 
     amendment that would require the Secretary of the Air Force 
     to submit a report on the Air Force civilian personnel 
     consolidation plan. In implementing the plan, we urge the 
     Secretary to ensure that the Air Force retains the capability 
     to manage appropriate personnel management and advisory 
     functions at the large civilian centers where operations 
     missions are complex and may be dependent upon the 
     productivity of locally-managed civilian personnel numbering 
     in the thousands. These large civilian centers include Hill 
     Air Force Base, Utah; Warner Robins Air Force Base, Georgia; 
     Tinker Air Force Base, Oklahoma; and Wright Patterson Air 
     Force Base, Ohio. These large civilian centers are critical 
     to the national security.
     Report on reduction in number of firefighters on Air Force 
         bases (sec. 326)
       The House bill contained a provision (sec. 328) that would 
     require the Secretary of the Air Force to submit a report to 
     Congress on the effects of a reduction in the number of 
     firefighters on Air Force bases.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Minimum capital investment for certain depots (sec. 327)
       The Senate bill contained a provision (sec. 322) that would 
     amend section 332 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364) 
     to require the Department of Defense to report the separate 
     levels of capital investment for Navy and Marine Corps 
     depots. The provision would also add the following Army 
     arsenals to the list of covered depots: Watervliet Arsenal, 
     New York; Rock Island Arsenal, Illinois; and Pine Bluff 
     Arsenal, Arkansas.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.

                      Subtitle D--Energy Security

     Annual report on operational energy management and 
         implementation of operational energy strategy (sec. 331)
       The House bill contained a provision (sec. 331) that would 
     require the Secretary of Defense to submit an annual 
     operational energy management report to the congressional 
     defense committees on operational energy consumption and 
     initiatives.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Consideration of fuel logistics support requirements in 
         planning, requirements development, and acquisition 
         processes (sec. 332)
       The House bill contained a provision (sec. 332) that would 
     require the Secretary of Defense to develop a methodology for 
     including the fully-burdened cost of fuel and energy 
     efficiency in planning, capability requirements

[[Page 20547]]

     development, and acquisition processes. This section would 
     require the Secretary, not later than 180 days after the date 
     of enactment of this Act, to prepare an implementation plan 
     and, within three years of enactment, certify to the Congress 
     that the Department has complied with this section's 
     requirements.
       The Senate bill contained a similar provision that would 
     require the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics to develop and report on an 
     implementation plan for the incorporation of energy 
     efficiency requirements into key performance parameters for 
     fuel consuming systems.
       The agreement includes the House provision with an 
     amendment that would require a progress report after two 
     years of implementation and that the Secretary of Defense 
     notify Congress on the Department's compliance with the 
     requirements of this section.
     Study on solar and wind energy for use for expeditionary 
         forces (sec. 333)
       The House bill contained a provision (sec. 333) that would 
     require the Secretary of Defense to submit a report, not 
     later than March 1, 2009, on the feasibility of using solar 
     energy to provide electricity at forward operating locations.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would add requirements to also study wind 
     energy, the potential for experimenting with solar and wind 
     energy during training, and change the due date of the report 
     to not later than 120 days after enactment of the bill.
     Study on alternative and synthetic fuels (sec. 334)
       The House bill contained a provision (sec. 334) that would 
     require the Secretary of Defense to conduct a study on 
     alternatives to reduce the life cycle emissions of coal-to-
     liquid fuels.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the Secretary to study 
     alternatives to reduce the life-cycle emissions of 
     alternative and synthetic fuels (including coal-to-liquid 
     fuels).
     Mitigation of power outage risks for Department of Defense 
         facilities and activities (sec. 335)
       The Senate bill contained a provision (sec. 341) that would 
     direct the Secretary of Defense to conduct a comprehensive 
     energy technical and operational risk assessment for mission 
     critical Department installations, facilities, and 
     activities; to develop integrated prioritized plans to 
     eliminate or mitigate risks; and to establish goals to 
     mitigate or eliminate the greatest and most urgent risks. The 
     provision would also require that the Secretary provide the 
     defense committees an annual report on the Department's 
     integrated prioritized plans and progress on efforts to 
     mitigate or eliminate energy risks.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would add consideration of cost effectiveness 
     to the development of risk mitigation plans.

                          Subtitle E--Reports

     Comptroller General report on readiness of armed forces (sec. 
         341)
       The House bill contained a provision (sec. 341) that would 
     require the Comptroller General of the United States to 
     submit to the Committees on Armed Services of the Senate and 
     the House of Representatives a report on the readiness of the 
     regular and reserve components of the armed forces.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Report on plan to enhance combat skills of Navy and Air Force 
         personnel (sec. 342)
       The House bill contained a provision (sec. 342) that would 
     require the Secretary of Defense to submit a report on the 
     plans of the Secretary of the Navy and the Secretary of the 
     Air Force to improve the combat skills of the members of the 
     Navy and the Air Force, respectively.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Comptroller General report on the use of the Army Reserve and 
         National Guard as an operational reserve (sec. 343)
       The House bill contained a provision (sec. 343) that would 
     require the Comptroller General of the United States to 
     submit a report to the Committees on Armed Services of the 
     Senate and the House of Representatives on the use of Army 
     Reserve and National Guard forces as an operational reserve.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Comptroller General report on link between preparation and 
         use of Army reserve component forces to support ongoing 
         operations (sec. 344)
       The House bill contained a provision (sec. 344) that would 
     require the Comptroller General of the United States to 
     analyze and report to the Committees on Armed Services of the 
     Senate and the House of Representatives on the preparation 
     and operational use of the Army's reserve component forces.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Comptroller General report on adequacy of funding, staffing, 
         and organization of Department of Defense military 
         munitions response program (sec. 345)
       The House bill contained a provision (sec. 345) that would 
     require the Comptroller General to report to Congress on the 
     adequacy of the funding, staffing, and organization of the 
     military munitions response program of the Department of 
     Defense.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.

                       Subtitle F--Other Matters

     Extension of enterprise transition plan reporting requirement 
         (sec. 351)
       The House bill contained a provision (sec. 351) that would 
     extend through 2013 the requirement in section 2222(i) of 
     title 10, United States Code, for the Secretary of Defense to 
     submit an annual report to the congressional defense 
     committees on the progress of the Department of Defense in 
     transforming and improving its business systems.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Demilitarization of loaned, given, or exchanged documents, 
         historical artifacts, and condemned or obsolete combat 
         materiel (sec. 352)
       The House bill contained a provision (sec. 352) that would 
     require the demilitarization of military equipment donated to 
     museums and other entities under section 2572 of title 10, 
     United States Code.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment to ensure that the Secretary concerned has 
     flexibility to determine the level of demilitarization 
     required.
     Repeal of requirement that Secretary of Air Force provide 
         training and support to other military departments for A-
         10 aircraft (sec. 353)
       The House bill contained a provision (sec. 353) that would 
     repeal outdated language regarding fleet support and depot 
     maintenance for A-10 aircraft.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Display of annual budget requirements for air sovereignty 
         alert mission (sec. 354)
       The House bill contained a provision (sec. 354) that would 
     require the Secretary of Defense to submit budget 
     justification material that displays funds requested for all 
     programs and activities of the air sovereignty alert mission 
     of the Air Force.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Revision of certain Air Force regulations required (sec. 355)
       The House bill contained a provision (sec. 356) that would 
     require the Secretary of the Air Force to bring the Air 
     Freight Transportation Regulation Number 5, issued by the Air 
     Mobility Command, into full compliance with Department of 
     Defense transportation regulations requiring commercial best 
     practices.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Transfer of C-12 aircraft to California Department of 
         Forestry and Fire Protection (sec. 356)
       The House bill contained a provision (sec. 357) that would 
     authorize the Secretary of the Army to convey to the 
     California Department of Forestry and Fire Protection, all 
     right, title, and interest of the Federal Government in three 
     C-12 aircraft that the Secretary has determined are surplus 
     to need.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
       We understand from the Department of the Army and the 
     Department of the Air Force that: (1) these three C-12 
     aircraft have no residual value to the Army; (2) they are not 
     sufficiently capable that they would represent any value to 
     the Air Force in meeting its emerging needs for manned 
     reconnaissance aircraft; and (3) the Army would otherwise 
     dispose of these aircraft as scrap.
     Limitation on treatment of retired B-52 aircraft for Air 
         Combat Command Headquarters (sec. 357)
       The House bill contained a provision (sec. 360) that would 
     prohibit the Commander of

[[Page 20548]]

     Air Combat Command from obligating more than 80 per cent of 
     the operation and maintenance funds available for Air Combat 
     Command Management Headquarters, Sub-Activity Group 012E 
     until the Secretary of Defense certifies that the future 
     years defense program includes funding for 76 B-52 aircraft.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would prohibit the Commander of Air Combat 
     Command from utilizing more than four of the 18 retired B-52 
     aircraft, which were retired pursuant to section 131 of the 
     John Warner National Defense Authorization Act for Fiscal 
     Year 2007 (Public Law 109-364) as maintenance ground training 
     aircraft.
     Increase of domestic breeding of military working dogs used 
         by the Department of Defense (sec. 358)
       The House bill contained a provision (sec. 361) that would 
     establish require the Secretary of Defense to work toward the 
     goal of procuring all military working dogs from domestic 
     breeders.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the Secretary of Defense to 
     identify Department of Defense requirements for military 
     working dogs and take steps to ensure that these requirements 
     are met, including encouraging increased domestic breeding.


                   Legislative Provisions Not Adopted

     Time limitation on duration of public-private competitions
       The House bill contained a provision (sec. 321) that would 
     place a time limit on the duration of public-private 
     competitions for any function performed by Department of 
     Defense employees.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Authority to consider depot-level maintenance and repair 
         using contractor furnished equipment or leased facilities 
         as core logistics
       The Senate bill contained a provision (sec. 321) that would 
     authorize the military departments to count workload 
     performed by government employees using contractor furnished 
     equipment, or in facilities leased to the government, as 
     sustaining a core logistics capability under section 2464 of 
     title 10, United States Code, if that work is being performed 
     pursuant to a public-private partnership as defined by 
     section 2474 of title 10, United States Code.
       The House bill contained no similar provision.
       The agreement does not include the provision.
     Temporary suspension of studies and public-private 
         competitions regarding conversion of functions of the 
         Department of Defense performed by civilian employees to 
         contractor performance
       The House bill contained a provision (sec. 325) that would 
     place a 3-year moratorium on public-private competitions 
     within the Department of Defense.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
       Over the last decade, the number of contractor employees 
     performing services for the Department of Defense (DOD) has 
     nearly doubled, while the number of DOD civilian employees 
     has remained essentially unchanged. Shortages of qualified 
     civilian personnel in key functional areas have raised 
     questions about the Department's ability to manage its 
     operations. At the same time, the Department's aggressive 
     effort to privatize functions currently performed by civilian 
     employees has led to turbulence and low morale in some 
     segments of the Department's workforce. In addition, we are 
     concerned that the savings generated from such competitions 
     may not justify the turmoil generated at a time when the 
     military services are stressed by ongoing operations in Iraq 
     and Afghanistan, transformation initiatives, and actions 
     being taken to implement the 2005 base closure and 
     realignment. These problems may be further exacerbated when 
     the process of conducting public-private competitions drags 
     out over a period of years, while the threat of job loss 
     continues to hang over the heads of impacted employees. We 
     believe that these factors require a serious reconsideration 
     of the Department's strategy regarding public-private 
     competitions of functions performed by the Department's 
     civilian employees.
     Exception to alternative fuel procurement requirement
       The House bill contained a provision (sec. 335) that would 
     amend section 526 of the Energy Independence and Security Act 
     of 2007 (Public Law 110-140) to specify that federal agencies 
     are not prohibited from entering into contracts to purchase 
     generally-available fuel that is not an alternative or 
     synthetic fuel or predominantly produced from a 
     nonconventional petroleum source in certain circumstances.
       The Senate bill contained no similar provision.
       The agreement does not include the provision. Section 526 
     was not intended to preclude the Department of Defense from 
     purchasing the fuel that it needs for the national defense 
     from the generally-available fuel supply. We expect the 
     Department to continue making such purchases.
     Study of consideration of greenhouse gas emissions
       The House bill contained a provision (sec. 336) that would 
     require the Secretary of Defense to study processes and 
     methods for the consideration of greenhouse gas emissions in 
     the acquisition process and develop a timeline for the 
     implementation of such processes and methods.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Increased authority to accept financial and other incentives 
         related to energy savings and new authority related to 
         energy systems
       The Senate bill contained a provision (sec. 342) that would 
     authorize the Secretary of Defense to accept financial and 
     other incentives in connection with the construction of an 
     energy system using solar energy or other renewable forms of 
     energy.
       The House bill contained no similar provision.
       The agreement does not include the provision.
     Recovery of improperly disposed of Department of Defense 
         property
       The Senate bill contained a provision (sec. 343) that would 
     enable the Department of Defense to recover military or 
     Department of Defense property that has been disposed of in 
     violation of applicable statutes and regulatory requirements.
       The House bill contained no similar provision.
       The agreement does not include the provision.
     Report on options for providing ship repair capabilities to 
         support ships operating near Guam
       The House bill contained a provision (sec. 346) that would 
     require the Secretary of the Navy to submit a report on the 
     best option or options for providing voyage repair 
     capabilities to support United States Navy ships operating at 
     or near Guam.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Sense of Congress that air sovereignty alert mission should 
         receive sufficient funding and resources
       The House bill contained a provision (sec. 355) that would 
     express the sense of Congress that air sovereignty alert 
     mission should receive sufficient funding and resources.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.
     Availability of funds for Irregular Warfare Support program
       The House bill contained a provision (sec. 358) that would 
     require as much as $75.0 million to be made available for the 
     Irregular Warfare Support (IWS) program from funds made 
     available for the Joint Improvised Explosive Device Defeat 
     Organization (JIEDDO) in fiscal year 2009.
       The Senate bill contained no similar provision.
       The agreement does not include this provision. However, the 
     agreement does include funding for the IWS program in title 
     XV.
     Sense of Congress regarding procurement and use of munitions
       The House bill contained a provision (sec. 359) that would 
     express the sense of Congress regarding the procurement of 
     military munitions.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.

              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, 2009: Army, 
     532,400; Navy, 326,323; Marine Corps, 194,000; and Air Force, 
     317,050. The House provision included increases of 7,000 and 
     5,000 for the Army and Marine Corps, respectively, to support 
     those services' growth in ground forces.
       The Senate bill contained a similar provision (sec. 401) 
     that would authorize active-duty end strengths of 325,300 for 
     the Navy and 316,771 for the Air Force, and identical end 
     strengths for the Army and Marine Corps.
       The agreement includes the House provision.
       The Secretary of Defense has stated that he will support 
     the Air Force's request to maintain its active-duty end 
     strength well above the 316,000 level previously approved in 
     connection with its recapitalization planning. While 
     excessive and poorly managed

[[Page 20549]]

     manpower cuts aimed primarily at saving money must be 
     avoided, the Department of Defense must demonstrate in the 
     next budget cycle how it intends to balance these competing, 
     readiness-related goals. We do not oppose the Air Force's 
     efforts to maintain a higher end strength, and expect the 
     Department and the Air Force to work with the Congress in 
     finding appropriate funding sources in 2009.
       End strength levels for the active forces for fiscal year 
     2009 are set forth in the following table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             FY 2009                             Change from
                                                                FY 2008      ---------------------------------------------------------------------------
                         Service                               authorized                                                                   FY 2008
                                                                                   Request         Recommendation    FY 2009 request       authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army.....................................................            525,400            532,400            532,400                  0              7,000
Navy.....................................................            329,098            325,300            326,323              1,023             -2,775
Marine Corps.............................................            189,000            194,000            194,000                  0              5,000
Air Force................................................            329,563            316,600            317,050                450            -12,513
                                                          ----------------------------------------------------------------------------------------------
    DOD Total............................................          1,373,061          1,368,300          1,369,773              1,473             -3,288
--------------------------------------------------------------------------------------------------------------------------------------------------------

     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, 2009: Army, 532,400; Navy, 
     326,323; Marine Corps, 194,000; and Air Force 317,050.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would establish a minimum end strength of 
     325,300 active-duty personnel for the Navy.
       Minimum end strength levels for active forces are set forth 
     in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                                 FY 2009          Change from
                        Service                               FY 2008      -------------------------------------
                                                             authorized       Recommendation        FY 2008
----------------------------------------------------------------------------------------------------------------
Army...................................................            525,400            532,400              7,000
Navy...................................................            328,400            325,300             -3,100
Marine Corps...........................................            189,000            194,000              5,000
Air Force..............................................            328,600            317,050            -11,550
                                                        --------------------------------------------------------
    DOD Total..........................................          1,371,400          1,368,750             -2,650
----------------------------------------------------------------------------------------------------------------

                       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, 2009: the 
     Army National Guard of the United States, 352,600; the Army 
     Reserve, 205,000; the Navy Reserve, 66,700; the Marine Corps 
     Reserve, 39,600; the Air National Guard of the United States, 
     106,700; the Air Force Reserve, 67,400; and the Coast Guard 
     Reserve, 10,000.
       The Senate bill contained a similar provision (sec. 411) 
     that would authorize an end strength of 106,756 for the Air 
     National Guard of the United States and identical end 
     strengths for the other services.
       The agreement includes the Senate provision.
       End strength levels for the Selected Reserve for fiscal 
     year 2009 are set forth in the following table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             FY 2009                             Change from
                                                                FY 2008      ---------------------------------------------------------------------------
                         Service                               authorized                            Conference                             FY 2008
                                                                                   Request         recommendation    FY 2009 request       authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army National Guard......................................            351,300            352,600            352,600                  0              1,300
Army Reserve.............................................            205,000            205,000            205,000                  0                  0
Navy Reserve.............................................             67,800             66,700             66,700                  0             -1,100
Marine Corps Reserve.....................................             39,600             39,600             39,600                  0                  0
Air National Guard.......................................            106,700            106,700            106,756                 56                 56
Air Force Reserve........................................             67,500             67,400             67,400                  0               -100
                                                          ----------------------------------------------------------------------------------------------
    DOD Total............................................            837,900            838,000            838,056                  0                156
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, 
     2009: the Army National Guard of the United States, 32,060; 
     the Army Reserve, 17,070; the Navy Reserve, 11,099; the 
     Marine Corps Reserve, 2,261; the Air National Guard of the 
     United States, 14,337; and the Air Force Reserve, 2,733.
       The Senate bill contained a similar provision (sec. 412) 
     that would authorize end strengths of 29,950 for the Army 
     National Guard of the United States; 16,170 for the Army 
     Reserve; 14,360 for the Air National Guard of the United 
     States; and identical end strengths for the other components.
       The agreement includes the House provision with an 
     amendment that would authorize end strengths of 16,170 for 
     the Army Reserve and 14,360 for the Air National Guard of the 
     United States.
       End strength levels for reserves on active duty in support 
     of the reserves are set forth in the following table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             FY 2009                             Change from
                                                                FY 2008      ---------------------------------------------------------------------------
                         Service                               authorized                                                                   FY 2008
                                                                                   Request         Recommendation    FY 2009 request       authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army National Guard......................................             29,204             29,950             32,060               2110              2,856
Army Reserve.............................................             15,870             16,170             16,170                  0                300
Navy Reserve.............................................             11,579             11,099             11,099                  0               -480
Marine Corps Reserve.....................................              2,261              2,261              2,261                  0                  0
Air National Guard.......................................             13,936             14,337             14,360                 23                424
Air Force Reserve........................................              2,721              2,733              2,733                  0                 12
                                                          ----------------------------------------------------------------------------------------------
    DOD Total............................................             75,571             76,550             78,683               2133              3,112
--------------------------------------------------------------------------------------------------------------------------------------------------------

     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, 2009: the Army 
     Reserve, 8,395; the Army National Guard of the United States, 
     27,210; the Air Force Reserve, 10,003; and the Air National 
     Guard of the United States, 22,452.
       The Senate bill contained a similar provision (sec. 413) 
     that would authorize an end

[[Page 20550]]

     strength of 22,459 for the Air National Guard of the United 
     States, and identical end strengths for the other components.
       The agreement includes the House provision.
       End strength levels for military technicians (dual status) 
     are set forth in the following table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             FY 2009                             Change from
                                                                FY 2008      ---------------------------------------------------------------------------
                         Service                               authorized                                                                   FY 2008
                                                                                   Request         Recommendation    FY 2009 request       authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army Reserve.............................................              8,249              8,395              8,395                  0                146
Army National Guard......................................             26,502             27,210             27,210                  0                708
Air Force Reserve........................................              9,909             10,003             10,003                  0                 94
Air National Guard.......................................             22,553             22,452             22,452                  0               -101
                                                          ----------------------------------------------------------------------------------------------
    DOD Total............................................             67,213             68,060             68,060                  0                847
--------------------------------------------------------------------------------------------------------------------------------------------------------

     Fiscal year 2009 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, 2009.
       The Senate bill contained an identical provision (sec. 
     414).
       The 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 2009 to provide operational support.
       The Senate bill contained an identical provision (sec. 
     415).
       The agreement includes this provision.
     Additional waiver authority of limitation on number of 
         reserve component members authorized to be on active duty 
         (sec. 416)
       The House bill contained a provision (sec. 416) that would 
     amend section 123a of title 10, United States Code, to 
     authorize the President to waive the limitations on the 
     number of reserve component personnel who can be on active 
     duty for operational support to provide assistance in 
     responding to a major disaster or emergency.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.

              Subtitle C--Authorization of Appropriations

     Military personnel (sec. 421)
       The House bill contained a provision (sec. 421) that would 
     authorize appropriations for military personnel.
       The Senate bill contained a similar provision (sec. 421).
       The agreement includes this provision.
       The following are the changes from the budget request for 
     the military personnel accounts:

                    [Changes in millions of dollars]

Increase in military pay raise                                    324.0
Restore military to civilian conversions-Navy                      26.8
Restore military to civilian conversions-Air Force                 38.8
Restore military to civilian conversions-Undistributed             35.5
Increase Air National Guard end strength                            3.3
Increase Army National Guard full-time support positions           85.0
Senior Leadership Diversity Commission                              0.3
Permanent prohibition on charging meals at MTFs                     1.0
Increase in maximum temporary lodging expenses                     37.0
Second family housing allowance for dual military couples           2.0
Nurse candidate accession bonus and monthly stipend                 2.0
New bonuses for psychologists and other mental health officers     13.0
Additional weight allowance for spouses                            13.0
Continuation of bonuses for certain service members                 1.0
Reduction of unobligated military personnel balances           -1,038.2
                                                       ________________
                                                       
  Total..........................................................-455.5


                   Legislative Provision Not Adopted

     Increased end strengths for Reserves on active duty in 
         support of the Army National Guard and Army Reserve and 
         military technicians (dual status) of the Army National 
         Guard
       The Senate bill contained a provision (sec. 416) that would 
     authorize additional Active Guard and Reserve (AGR) end 
     strength for the Army National Guard and Army Reserve, and 
     additional end strength for Army National Guard military 
     technicians (dual status).
       The House bill contained no similar provision.
       The agreement does not include the provision.

                   TITLE V--MILITARY PERSONNEL POLICY

             Subtitle A--Officer Personnel Policy Generally

     Mandatory separation requirements for regular warrant 
         officers for length of service (sec. 501)
       The House bill contained a provision (sec. 501) that would 
     amend section 1305 of title 10, United States Code, to 
     provide that regular warrant officers of the Navy, Marine 
     Corps, and Coast Guard who have at least 30 years of total 
     active service that could be credited to the officer shall be 
     retired 60 days after the date the warrant officer completes 
     that service. For regular Army warrant officers, the 
     provision would specify that only years of active service as 
     a warrant officer should be used in calculating 30 years of 
     active service for mandatory retirement.
       The Senate bill contained a similar provision (sec. 509).
       The agreement includes the House provision.
     Requirements for issuance of posthumous commissions and 
         warrants (sec. 502)
       The House bill contained a provision (sec. 502) that would 
     amend sections 1521 and 1522 of title 10, United States Code, 
     to replace the condition for a posthumous commission or 
     warrant that the death be in the line of duty with a 
     requirement for a certification by the secretary concerned 
     that, at the time of death, the member was qualified for 
     appointment to the next higher grade.
       The Senate bill contained a similar provision (sec. 510).
       The agreement includes the House provision with a technical 
     amendment.
     Authorized number of general officers on active duty in the 
         Army and Marine Corps, limited exclusion for joint duty 
         requirements, and increase in number of officers serving 
         in grades above major general and rear admiral (sec. 503)
       The House bill contained a provision (sec. 504) that would 
     amend sections 525 and 526 of title 10, United States Code, 
     to allow an increase of one general officer in the rank of 
     lieutenant general for the Marine Corps.
       The Senate bill contained a provision (sec. 501) that would 
     increase from 16.3 percent to 16.4 percent the percentage of 
     general and flag officers in a military service that may be 
     appointed above the grade of major general or rear admiral, 
     and exclude from the limitations of section 525 of title 10, 
     United States Code, those reserve general or flag officers on 
     active duty under orders specifying a period of active duty 
     of not longer than three years.
       The agreement includes the House provision with an 
     amendment that would amend section 526 of title 10, United 
     States Code, to increase the authorized number of Army 
     general officers on active duty from 302 to 307, with the 
     increased authorization reserved for Army general officers 
     who serve in acquisition positions and increase the number of 
     Marine Corps general officers on active duty from 80 to 81. 
     The provision would increase from 12 to 65 the number of 
     general and flag officer joint duty assignment positions that 
     the Chairman of the Joint Chiefs of Staff can exclude from 
     the limitations on general and flag officers on active duty, 
     five of which are reserved for general or flag officers who 
     serve in an acquisition position, including one assignment in 
     the Defense Contract Management Agency. The provision would 
     also amend section 525 of title 10, United States Code, to 
     increase from 16.3 percent to 16.4 percent the percentage of 
     general and flag officers in a military service that may be 
     appointed above the grade of major general or rear admiral.

[[Page 20551]]


     Modification of authority on Staff Judge Advocate to the 
         Commandant of the Marine Corps (sec. 504)
       The House bill contained a provision (sec. 551) that would 
     amend section 5046 of title 10, United States Code, to 
     require that the Staff Judge Advocate to the Commandant of 
     the Marine Corps serve in the grade of major general.
       The Senate bill contained a similar provision (sec. 507) 
     that would also exclude an officer serving in this grade and 
     position from the limitation on the authorized number of 
     officers serving in grades above brigadier general in the 
     Marine Corps.
       The agreement includes the Senate provision with a 
     technical amendment.
     Eligibility of reserve officers to serve on boards of inquiry 
         for separation of regular officers for substandard 
         performance and other reasons (sec. 505)
       The Senate bill contained a provision (sec. 506) that would 
     amend section 1187 of title 10, United States Code, to 
     authorize reserve officers to serve as members of boards of 
     inquiry convened to consider whether regular officers should 
     be retained on active duty. This implements a recommendation 
     of the Commission on the National Guard and Reserves 
     regarding elimination of policies which unnecessarily 
     distinguish reserve component personnel from their active 
     duty counterparts and thereby impede full integration.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Delayed authority to alter distribution requirements for 
         commissioned officers on active duty in general officer 
         and flag officer grades and limitations on authorized 
         strengths of general and flag officers (sec. 506)
       The Senate amendment contained a provision (sec. 502) that 
     would amend section 526 of title 10, United States Code, to 
     authorize the Secretary of Defense to designate up to 324 
     general and flag officer positions as joint duty assignments 
     that would be excluded from the limitation on the number of 
     general and flag officers in each service and would specify 
     the minimum number of officers required to serve in these 
     positions for each service. The provision would realign the 
     number of general and flag officers authorized to serve on 
     active duty in the Army from 302 to 222 officers; in the Navy 
     from 216 to 159 officers; in the Air Force from 279 to 206 
     officers; and in the Marine Corps from 80 to 59 officers. The 
     provision would also repeal section 721 of title 10, United 
     States Code, which limits the number of general and flag 
     officers authorized to serve in positions outside their own 
     service. The provision would also establish goals for the 
     number of general and flag officers in the Department of 
     Defense (DOD) and the military services who serve in 
     acquisition positions and who have significant contracting 
     experience.
       The House bill contained no similar provision.
       The agreement includes the provision with an amendment that 
     would delay implementation until 1 year after the Secretary 
     of Defense submits to Congress a report on the proposed 
     implementation of the provision. The amendment would also 
     amend sections 525 and 526 of title 10, United States Code, 
     to specify the distribution and authorized strength limits of 
     commissioned officers on active duty in general officer and 
     flag officer grades. Finally, the amendment would remove the 
     goals for the number of general and flag officers who serve 
     in acquisition positions as this is addressed elsewhere in 
     this bill.

                Subtitle B--Reserve Component Management

     Extension to other reserve components of Army authority for 
         deferral of mandatory separation of military technicians 
         (dual status) until age 60 (sec. 511)
       The House bill contained a provision (sec. 511) that would 
     amend section 10216(f) of title 10, United States Code, to 
     extend to the Secretary of the Air Force the same authority 
     previously granted to the Secretary of the Army to delay 
     mandatory separation of dual status military technicians for 
     years of service or other policy consideration until age 60.
       The Senate bill contained a similar provision (sec. 532).
       The agreement includes the Senate provision.
     Modification of authorized strengths for certain Army 
         National Guard, Marine Corps Reserve, and Air National 
         Guard officers and Army National Guard enlisted personnel 
         serving on full-time reserve component duty (sec. 512)
       The House bill contained a provision (sec. 512) that would 
     amend section 12011 of title 10, United States Code, to 
     increase the limit on the number of Marine Corps lieutenant 
     colonels authorized to serve on full-time reserve component 
     duty at the end of any fiscal year.
       The Senate bill contained a similar provision (sec. 417).
       The agreement includes the House provision with an 
     amendment that would also increase the limit on Army and Air 
     National Guard officers and Army National Guard enlisted 
     personnel serving on full-time reserve component duty.
     Clarification of authority to consider for a vacancy 
         promotion National Guard officers ordered to active duty 
         in support of a contingency operation (sec. 513)
       The House bill contained a provision (sec. 513) that would 
     amend section 14317 of title 10, United States Code, to 
     authorize the promotion of reserve component officers, 
     including National Guard officers, who are recommended for 
     promotion to fill a position vacancy under section 14315 of 
     title 10, United States Code, and who are ordered to active 
     duty in support of a contingency operation.
       The Senate bill contained a similar provision (sec. 534).
       The agreement includes the House provision.
     Increase in mandatory retirement age for certain Reserve 
         officers (sec. 514)
       The House bill contained a provision (sec. 514) that would 
     amend sections 12647 and 14702 of title 10, United States 
     Code, to increase the mandatory retirement age from age 60 to 
     age 62 for commissioned officers assigned to the Selective 
     Service System, as National Guard property and fiscal 
     officers, and Army National Guard officers assigned to a 
     headquarters or headquarters detachment of a State.
       The Senate bill contained a similar provision (sec. 533).
       The agreement includes the House provision.
     Age limit for retention of certain Reserve officers on 
         active-status list as exception to removal for years of 
         commissioned service (sec. 515)
       The House bill contained a provision (sec. 515) that would 
     authorize the Secretary of the Army and the Secretary of the 
     Air Force to retain Reserve officers in the grade of 
     lieutenant general beyond mandatory retirement for years of 
     service until the officer becomes 66 years of age.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Authority to retain Reserve chaplains and officers in medical 
         and related specialties until age 68 (sec. 516)
       The House bill contained a provision (sec. 516) that would 
     amend section 14703(b) of title 10, United States Code, and 
     section 324(a) of title 32, United States Code, to authorize 
     reserve component chaplains and medical officers to be 
     retained in an active status until the date on which the 
     officer becomes 68 years of age.
       The Senate bill contained a similar provision (sec. 535).
       The agreement includes the House provision.
     Modification of authorities on dual duty status of National 
         Guard officers (sec. 517)
       The Senate bill contained a provision (sec. 536) that would 
     amend section 325 of title 32, United States Code, to 
     authorize all National Guard officers, not just those in 
     command of National Guard units, to retain their state status 
     while serving on active duty when authorized by the President 
     and with the consent of the Governor or the commanding 
     general of the District of Columbia National Guard as 
     applicable. The provision would also allow the consent or 
     authorization to be given in advance for the purpose of 
     establishing the succession of command of a unit.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Study and report regarding Marine Corps personnel policies 
         regarding assignments in Individual Ready Reserve (sec. 
         518)
       The House bill contained a provision (sec. 517) that would 
     require the Secretary of the Navy to conduct a study on the 
     policies, procedures, and impact on personnel of the Marine 
     Corps Reserve relating to transfers between the Selected 
     Reserve and Individual Ready Reserve.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Report on collection of information on civilian skills of 
         members of the reserve components of the armed forces 
         (sec. 519)
       The Senate bill contained a provision (sec. 538) that would 
     require the Secretary of Defense to submit a report by March 
     1, 2009, on the feasibility, uses, and cost effectiveness of 
     collecting information about skills, qualifications, and 
     professional certifications possessed by members of the 
     reserve components.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.

         Subtitle C--Joint Qualified Officers and Requirements

     Joint duty requirements for promotion to general or flag 
         officer (sec. 521)
       The House bill contained a provision (sec. 521) that would 
     amend section 619a of title 10, United States Code, to 
     provide that with certain exceptions, an officer must be 
     designated as a joint qualified officer, rather than a joint 
     specialty officer, in accordance

[[Page 20552]]

     with section 661 of title 10, United States Code, before 
     being eligible for promotion to general or flag officer.
       The Senate bill contained a similar provision (sec. 503).
       The agreement includes the House provision with a technical 
     amendment.
     Technical, conforming, and clerical changes to joint 
         specialty terminology (sec. 522)
       The House bill contained a provision (sec. 522) that would 
     amend the terminology used in sections 661, 663, 665, and 667 
     of title 10, United States Code, to correspond with changes 
     made in section 516 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364), 
     replacing references to ``joint specialty officer'' with 
     ``joint qualified officer.''
       The Senate bill contained a similar provision (sec. 505).
       The agreement includes the House provision.
     Promotion policy objectives for joint qualified officers 
         (sec. 523)
       The House bill contained a provision (sec. 523) that would 
     amend section 662 of title 10, United States Code, to provide 
     that officers in the grade of major or lieutenant commander 
     and above who are designated as joint qualified officers are 
     expected, as a group, to be promoted to the next higher grade 
     at a rate not less than the rate for all officers of the same 
     armed force in the same grade and competitive category.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would retain the current requirement that 
     officers who are serving or have served on the joint staff 
     are expected, as a group, to be promoted to the next higher 
     grade at a rate not less than the rate for officers of the 
     same armed force in the same grade and competitive category 
     who are serving or have served on the headquarters staff of 
     their armed force.
     Length of joint duty assignments (sec. 524)
       The House bill contained a provision (sec. 524) that would 
     amend section 664 of title 10, United States Code, to align 
     prescribed joint duty assignment lengths with the joint 
     qualification system implemented pursuant to section 516 of 
     the John Warner National Defense Authorization Act for Fiscal 
     Year 2007 (Public Law 109-364), to take into account multiple 
     joint experiences in satisfying joint duty assignment 
     requirements.
       The Senate bill contained a similar provision (sec. 504).
       The agreement includes the House provision.
     Designation of general and flag officer positions on Joint 
         Staff as positions to be held only by reserve component 
         officers (sec. 525)
       The House bill contained a provision (sec. 525) that would 
     amend section 526 of title 10, United States Code, to allow 
     the Chairman of the Joint Chiefs of Staff to exempt up to 
     three reserve general and flag officers from counting against 
     the general and flag officer limitations.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Modification of limitations on authorized strengths of 
         reserve general and flag officers in active status 
         serving in joint duty assignments (sec. 526)
       The Senate bill contained a provision (sec. 531) that would 
     amend section 12004 of title 10, United States Code, to 
     exclude from the limitations on the numbers of reserve 
     general and flag officers in an active status those reserve 
     general and flag officers serving in joint duty assignments. 
     The number of reserve general and flag officers excluded 
     could not exceed 20 percent of the number of authorized flag 
     and general officers authorized for the service concerned.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment to also exclude from the limitations on the numbers 
     of reserve general and flag officers in an active status 
     Marine Corps reserve officers serving in joint duty 
     assignments.
     Reports on joint education courses available through the 
         Department of Defense (sec. 527)
       The House bill contained a provision (sec. 526) that would 
     amend section 10506(a)(3) of title 10, United States Code, to 
     require that service of an officer as the adjutant general of 
     the National Guard of a State be treated as joint duty 
     experience for assignment or promotion to any position 
     designated by law as open to a National Guard general 
     officer. The provision would require the Chief of the 
     National Guard Bureau to issue a report to the Chairman of 
     the Joint Chiefs of Staff and Congress recommending which 
     duty of officers of the National Guard in the Joint Force 
     Headquarters of the National Guard of the States should 
     qualify as joint duty or joint duty experience. The provision 
     would require that the Chairman of the Joint Chiefs of Staff 
     submit three annual reports to Congress on the joint 
     educational courses available through the Department. The 
     provision would also require Commander, United States 
     Northern Command, Commander, United States Pacific Command, 
     and the Chief of the National Guard Bureau, with the approval 
     of the Secretary of Defense, to jointly enter into a 
     memorandum of understanding regarding operational 
     relationships and individual roles and responsibilities 
     during responses to domestic emergencies.
       The Senate bill contained no similar provision.
       The agreement requires the Chairman of the Joint Chiefs of 
     Staff to report to Congress on the joint education courses 
     available through the Department in 3 successive years 
     starting in 2009.
       The Department is requested to expedite review of the 
     findings of the final report to Congress and the Secretary of 
     Defense of the Commission on the National Guard and Reserves, 
     dated January 31, 2008, as required elsewhere in this bill.

                Subtitle D--General Service Authorities

     Increase in maximum period of reenlistment of regular members 
         of the armed forces (sec. 531)
       The House bill contained a provision (sec. 531) that would 
     amend section 505(d) of title 10, United States Code, and 
     section 308(a) of title 37, United States Code, to increase 
     from 6 to 8 years the maximum period of reenlistment of 
     regular members of the armed forces.
       The Senate bill contained a similar provision (sec. 521).
       The agreement includes the House provision with a technical 
     amendment.
     Paternity leave for members of the armed forces (sec. 532)
       The Senate bill contained a provision (sec. 583) that would 
     amend section 701 of title 10, United States Code, to 
     authorize up to 21 days of leave for a male service member 
     whose spouse gives birth to a child. The leave would be in 
     addition to any other leave to which the service member is 
     entitled.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would mandate 10 days of paternity leave for 
     service members, and would authorize the secretaries 
     concerned to implement the benefit by service regulation.
     Pilot programs on career flexibility to enhance retention of 
         members of the armed forces (sec. 533)
       The House bill contained a provision (sec. 532) that would 
     authorize the secretaries of the military departments to 
     conduct pilot programs to evaluate the need for more 
     flexibility in career patterns of a limited number of active-
     duty officers and enlisted members. Under the pilot programs, 
     selected service members would leave active duty for a period 
     of up to 3 years, and then return to active duty in the same 
     grade and years of service that they held at the time they 
     were inactivated. Time spent while inactivated would not 
     count toward retirement eligibility, computation of retired 
     pay, or years of service.
       The Senate bill contained a similar provision (sec. 585) 
     that would provide that the authority to conduct pilot 
     programs would commence January 1, 2009, and end December 31, 
     2014. The provision would also require the secretaries of the 
     military departments to submit interim reports in 2010 and 
     2012. The Secretary of Defense would be required to submit a 
     final report no later than March 1, 2015, evaluating all the 
     pilot programs conducted under this authority.
       The agreement includes the Senate provision with an 
     amendment that would limit participation in the pilot 
     programs to 20 enlisted personnel and 20 officers per year 
     per service. The amendment would also establish that the 
     pilot program authority would commence January 1, 2009, and 
     that no member of the armed forces could be released from 
     active duty under a pilot program after December 31, 2012. 
     Finally, the amendment would require interim reports from the 
     service secretaries to the congressional defense committees 
     no later than June 1, 2011, and June 1, 2013, and a final 
     report from the Secretary of Defense no later than March 1, 
     2016.

                   Subtitle E--Education and Training

     Authorized strength of military service academies and repeal 
         of prohibition on phased increase in midshipmen and cadet 
         strength limit at Naval Academy and Air Force Academy 
         (sec. 540)
       The House bill contained a provision (sec. 541) that would 
     amend sections 6954 and 9342 of title 10, United States Code, 
     to extend the authority of the Secretary of the Navy and the 
     Secretary of the Air Force to increase the size of the 
     Brigade of Midshipmen and the Cadet Wing at the United States 
     Naval Academy and Air Force Academy respectively by up to 100 
     cadets per year to a maximum of 4,400 cadets.
       The Senate bill contained a similar provision (sec. 551) 
     that would provide that the authorized strength of the 
     Brigade of Midshipmen at the United States Naval Academy is 
     4,400 midshipmen, or such lower number as may be prescribed 
     by the Secretary of the Navy.
       The agreement includes the Senate provision with an 
     amendment that would provide that the maximum authorized 
     strengths of the Military Academy, the Naval Academy, and the 
     Air Force Academy are each 4,400 cadets or midshipmen.

[[Page 20553]]


     Promotion of foreign and cultural exchange activities at 
         military service academies (sec. 541)
       The House bill contained a provision (sec. 542) that would 
     amend chapters 403, 603, and 903 of title 10, United States 
     Code, to allow the military service academies to support 
     foreign and cultural exchange programs for up to two weeks a 
     year to foster the development of foreign language skills, 
     cross cultural interactions and understanding, and cultural 
     immersion of cadets and midshipmen.
       The Senate bill contained a similar provision (sec. 555).
       The agreement includes the House provision.
     Increased authority to enroll defense industry employees in 
         defense product development program (sec. 542)
       The House bill contained a provision (sec. 544) that would 
     amend section 7049 of title 10, United States Code, to 
     increase from 25 to 125 the number of defense industry 
     employees who could receive instruction at the Naval 
     Postgraduate School.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Expanded authority for institutions of professional military 
         education to award degrees (sec. 543)
       The House bill contained a provision (sec. 549) that would 
     authorize the President of the National Defense Intelligence 
     College, the President of the National Defense University, 
     the Commandant of the United States Army Command and General 
     Staff College, the Commandant of the United States Army War 
     College, the President of the Naval Postgraduate School, the 
     President of the Naval War College, the President of the 
     Marine Corps University, and the Commander of the Air 
     University, for both the Air Force Institute of Technology 
     and for the Air University, to confer appropriate degrees 
     upon graduates who meet degree requirements. A degree would 
     not be conferred under this authority unless the Secretary of 
     Education has recommended approval of the degree and the 
     college or university is accredited by the appropriate 
     civilian academic accrediting agency or organization.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Tuition for attendance of federal employees at the United 
         States Air Force Institute of Technology (sec. 544)
       The Senate bill contained a provision (sec. 552) that would 
     amend section 9314(c) of title 10, United States Code, to 
     require the United States Air Force Institute of Technology 
     to charge tuition for instruction of civilians from the 
     military departments, other components of the Department of 
     Defense, and other federal agencies, and to use these funds 
     to defray the costs of such instruction.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with a 
     technical amendment.
     Increase in number of permanent professors at the United 
         States Air Force Academy (sec. 545)
       The Senate bill contained a provision (sec. 508) that would 
     amend section 9331 of title 10, United States Code, to 
     increase from 21 to 25 the number of permanent professors at 
     the Air Force Academy.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would increase from 21 to 23 the number of 
     permanent professors at the Air Force Academy.
     Requirement of completion of service under honorable 
         conditions for purposes of entitlement to educational 
         assistance for reserve component members supporting 
         contingency operations (sec. 546)
       The House bill contained a provision (sec. 545) that would 
     amend section 16164 of title 10, United States Code, to 
     clarify that only service members who separate under 
     honorable conditions are eligible to use the educational 
     benefits under chapter 1607 of title 10, United States Code, 
     for a period of 10 years after separation.
       The Senate bill contained a similar provision (sec. 554).
       The agreement includes the Senate provision with an 
     amendment that would make this provision effective on the 
     date of enactment of this Act and apply to persons who 
     separate after the date of the enactment of the National 
     Defense Authorization Act for Fiscal Year 2008 (Public Law 
     110-181) who, as of the date of enactment of this Act, have 
     not used any of their entitlement under chapter 1607 of title 
     10, United States Code.
     Consistent education loan repayment authority for health 
         professionals in regular components and Selected Reserve 
         (sec. 547)
       The House bill contained a provision (sec. 546) that would 
     equate the maximum limits for loan repayment programs for 
     health professionals in the reserve components under section 
     16302 of title 10, United States Code, with the maximum 
     limits for loan repayment programs for active-duty health 
     professionals under section 2173 of title 10, United States 
     Code.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Increase in number of units of Junior Reserve Officers' 
         Training Corps (sec. 548)
       The House bill contained a provision (sec. 547) that would 
     require the Secretary of Defense, in consultation with the 
     secretaries of the military departments, to develop and 
     implement a plan to establish and support 4,000 Junior 
     Reserve Officers' Training Corps units by fiscal year 2020. 
     The section would also require the Secretary of Defense to 
     submit a report to the congressional defense committees that 
     would provide information on how the services will achieve 
     this goal, as well as other pertinent information, by March 
     31, 2009.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment to develop and implement a plan to establish and 
     support 3,700 Junior Reserve Officers' Training Corps units 
     by fiscal year 2020.
     Correction of erroneous Army College Fund benefit amounts 
         (sec. 549)
       The House bill contained a provision (sec. 548) that would 
     authorize the Secretary of the Army, through the Army Board 
     for Correction of Military Records, to consider, from January 
     1, 2009, through June 30, 2009, a request for the correction 
     of military records relating to the amount of the Army 
     College Fund benefit to which an applicant may be entitled 
     under an Army incentive program contract. The provision would 
     clarify that the Secretary may pay such amounts as the 
     Secretary considers necessary without regard to any limits on 
     the total combined amounts established for the Army College 
     Fund and the Montgomery G.I. Bill.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would allow consideration of such requests 
     through December 31, 2009.
     Enhancing education partnerships to improve accessibility and 
         flexibility for members of the Armed Forces (sec. 550)
       The House bill contained a provision (sec. 550) that would 
     authorize service secretaries to enter into partnership 
     agreements with educational institutions in the United States 
     for the purpose of developing plans to improve accessibility 
     and flexibility of college courses available to service 
     members; improving the application process for the armed 
     forces tuition assistance programs and raising awareness 
     regarding educational opportunities available to service 
     members; developing curriculum, distance education programs, 
     and career counseling designed to meet the professional, 
     financial, academic, and social needs of service members; and 
     assessing how resources may be applied more effectively to 
     meet the educational needs of service members.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.

               Subtitle F--Defense Dependents' Education

     Continuation of authority to assist local educational 
         agencies that benefit dependents of members of the armed 
         forces and Department of Defense civilian employees (sec. 
         551)
       The House bill contained a provision (sec. 571) 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 DOD civilian employees. 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 bill contained a similar provision (sec. 561) 
     that would authorize $30.0 million and $10.0 million for each 
     assistance program, respectively.
       The agreement includes the Senate provision with an 
     amendment that would authorize $35.0 million and $15.0 
     million for each program, respectively.
     Impact aid for children with severe disabilities (sec. 552)
       The Senate bill 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 agreement includes the Senate provision.
     Transition of military dependent students among local 
         educational agencies (sec. 553)
       The Senate bill contained a provision (sec. 563) that would 
     require the Secretary of Defense to work with the Secretary 
     of Education in any efforts to ease the transition of 
     military dependent students between Department of Defense 
     schools, schools of local

[[Page 20554]]

     educational agencies, and other schools. The provision would 
     authorize the Secretary of Defense to use funds of the 
     Department of Defense Education Activity for this purpose.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would make the authority temporary, expiring 
     on September 30, 2013. The amendment would also allow 
     distance learning and training programs for military students 
     and teachers.
     Calculation of payments for eligible federally connected 
         children under Department of Education's impact aid 
         program (sec. 554)
       The House bill contained a provision (sec. 572) that would 
     amend section 8003(c)(2) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7703(c)) to allow 
     calculation of impact aid payments for certain local 
     educational agencies to be based on student population data 
     from the current school year rather than the previous school 
     year's population.
       The Senate bill contained no similar provision.
       The agreement included the House provision with an 
     amendment that would amend the Elementary and Secondary 
     Education Act of 1965 to change the requisite number of 
     federally connected children that attend area schools daily 
     in order for a school district to receive impact aid from 
     6,500 to 5,000 students in fiscal year 2009.

                      Subtitle G--Military Justice

     Effective period of military protective orders (sec. 561)
       The House bill contained a provision (sec. 552) that would 
     amend chapter 80 of title 10, United States Code, to extend a 
     standing military protective order by a military commander 
     until the allegation prompting the protective order is 
     resolved by investigation, courts martial, or other command 
     determined adjudication, or the military commander issues a 
     new order.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would provide that a military protective order 
     issued by a military commander shall remain in effect until 
     the military commander terminates the order or issues a new 
     order.
     Mandatory notification of issuance of military protective 
         order to civilian law enforcement (sec. 562)
       The House bill contained a provision (sec. 553) that would 
     amend chapter 80 of title 10, United States Code, to require 
     the commander of a military installation to notify 
     appropriate civilian authorities in the event a military 
     protective order is issued against a member of the armed 
     forces when any individual involved in the order does not 
     reside on a military installation.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Implementation of information database on sexual assault 
         incidents in the armed forces (sec. 563)
       The House bill contained a provision (sec. 554) that would 
     require the Secretary of Defense to implement a centralized, 
     case-level database for the collection and maintenance of 
     information regarding sexual assaults involving members of 
     the armed forces.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the Secretary of Defense to 
     submit a report to the Committees on Armed Services of the 
     Senate and the House of Representatives on the status of the 
     Defense Incident-Based Reporting System and an explanation of 
     how this system will relate to the sexual assault database.

        Subtitle H--Decorations, Awards, and Honorary Promotions

     Replacement of military decorations (sec. 571)
       The House bill contained a provision (sec. 561) that would 
     amend chapter 57 of title 10, United States Code, to require 
     the secretary concerned to replace, on a one-time basis and 
     without charge, a military decoration upon the request of the 
     recipient of the military decoration or the next of kin of a 
     deceased recipient.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Authorization and request for award of Medal of Honor to 
         Richard L. Etchberger for acts of valor during the 
         Vietnam War (sec. 572)
       The House bill contained a provision (sec. 562) that would 
     authorize the President to award the Medal of Honor to 
     Richard L. Etchberger, who served in the United States Air 
     Force during the Vietnam War. This section would also waive 
     the statutory time limitation under section 8744 of title 10, 
     United States Code.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a technical 
     amendment.

                     Subtitle I--Military Families

     Presentation of burial flag to the surviving spouse and 
         children of deceased members of the armed forces (sec. 
         581)
       The House bill contained a provision (sec. 581) that would 
     amend section 1482 of title 10, United States Code, to 
     authorize the presentation of a burial flag to the surviving 
     spouse of a deceased service member when the surviving spouse 
     is not otherwise entitled to a flag as the person designated 
     to direct the disposition of the remains.
       The Senate bill contained a similar provision (sec. 641) 
     that would also authorize the presentation of a burial flag 
     to each child of a deceased service member.
       The agreement includes the House provision with an 
     amendment that would authorize the presentation of a burial 
     flag to each child of a deceased service member.
     Education and training opportunities for military spouses 
         (sec. 582)
       The House bill contained a provision (sec. 582) that would 
     authorize the Secretary of Defense to establish programs to 
     assist the spouse of a service member serving on active duty 
     in receiving education and training required for a degree, 
     credential, or professional licensure in order to expand 
     employment and career opportunities for spouses. The 
     provision would also authorize tuition assistance to pursue 
     such education and training.
       The Senate bill contained a provision (sec. 571) that would 
     authorize the Secretary to establish programs to provide or 
     make available to spouses of service members on active duty 
     education, training, and financial assistance to facilitate 
     the pursuit of a portable career.
       The agreement includes the House provision with an 
     amendment that would clarify that these programs may be used 
     to enable a spouse to pursue a portable career, and would 
     clarify the definition of a portable career.
     Sense of the Congress regarding honor guard details for 
         funerals of veterans (sec. 583)
       The House bill contained a provision (sec. 583) that would 
     express the sense of Congress that the secretaries of the 
     military departments should, to the maximum extent 
     practicable, provide honor guard details for the funerals of 
     veterans.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.

                       Subtitle J--Other Matters

     Prohibition on interference in independent legal advice by 
         the Legal Counsel to the Chairman of the Joint Chiefs of 
         Staff (sec. 591)
       The Senate bill contained a provision (sec. 586) that would 
     amend section 156(d) of title 10, United States Code, to 
     prohibit any officer or employee of the Department of Defense 
     from interfering with the ability of the legal counsel to the 
     Chairman of the Joint Chiefs of Staff to give independent 
     legal advice to the Chairman of the Joint Chiefs of Staff and 
     to the Joint Chiefs of Staff.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Interest payments on certain claims arising from correction 
         of military records (sec. 592)
       The House bill contained a provision (sec. 592) that would 
     require the service secretaries to pay interest on claims 
     arising from the correction of a military record that 
     involves setting aside a conviction by court-martial. The 
     provision would apply to any sentence of a court-martial set 
     aside by a corrections board after October 1, 2007.
       The Senate bill contained a provision (sec. 582) that would 
     authorize the Secretary of Defense and the service 
     secretaries to provide relief to a member or former member of 
     the armed forces who, in the determination of the Secretary 
     concerned, had suffered imprisonment pursuant to a court-
     martial conviction as a result of an injustice or error on 
     the part of the Department of Defense or any of its employees 
     acting in their official capacity. The relief provided would 
     include the payment of monies, including interest, from funds 
     available for emergency and extraordinary expenses under 
     section 127 of title 10, United States Code.
       The agreement includes the House provision with an 
     amendment that would specify that the interest paid be at a 
     rate determined by the Secretary concerned, unless the 
     Secretary concerned determines that the payment of interest 
     is inappropriate under the circumstances.
     Extension of limitation on reductions of personnel of 
         agencies responsible for review and correction of 
         military records (sec. 593)
       The House bill contained a provision (sec. 593) that would 
     amend section 1559(a) of title 10, United States Code, to 
     change the termination date for the limitation on reductions 
     of personnel of the service boards of correction of military 
     records from October 1, 2008, to December 31, 2010.
       The Senate bill contained no such provision.
       The agreement includes the House provision.
       The boards for correction of military records perform a 
     vital function in ensuring timely review and disposition of 
     applications for relief under chapter 79 of title 10, United 
     States Code. The Secretary of Defense is directed to submit a 
     report to the Committees on Armed Services of the Senate and 
     House

[[Page 20555]]

     of Representatives no later than July 1, 2009, regarding the 
     operation of the services' boards of correction. The report 
     should discuss the compliance by each service with the 
     statutory timeliness standards for disposition of 
     applications before corrections boards since 2001 and an 
     assessment whether the limitation on personnel reductions in 
     section 1559(a) continue to be necessary to ensure compliance 
     with processing time requirements.
     Modification of matching fund requirements under National 
         Guard Youth Challenge Program (sec. 594)
       The Senate bill contained a provision (sec. 537) that would 
     amend section 509(d) of title 32, United States Code, to 
     clarify that the limitation on assistance provided by the 
     Department of Defense to a State National Guard Youth 
     Challenge Program may not be construed as a limitation on the 
     amount of assistance that may be provided by other sources, 
     nor should contributions from other sources be included in 
     calculating the Department's share of the costs of operating 
     State programs.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Military salute for the flag during the national anthem by 
         members of the armed forces not in uniform and by 
         veterans (sec. 595)
       The Senate bill contained a provision (sec. 1081) that 
     would amend section 301 of title 36, United States Code, to 
     authorize veterans and members of the armed forces not in 
     uniform to render a military salute in the same manner as 
     members of the armed forces in uniform during the playing of 
     the national anthem.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Military Leadership Diversity Commission (sec. 596)
       The House bill contained a provision (sec. 595) that would 
     establish the Senior Military Leadership Diversity Commission 
     to study the diversity within the senior leadership of the 
     armed forces.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would establish the Military Leadership 
     Diversity Commission to conduct a comprehensive evaluation 
     and assessment of policies that provide for opportunities for 
     the promotion and advancement of minority members of the 
     armed forces, including minority members who are senior 
     officers.
     Demonstration project on service of retired nurse corps 
         officers as faculty at civilian nursing schools (sec. 
         597)
       The House bill contained a provision (sec. 941) that would 
     require the Secretary of Defense to establish a Department of 
     Defense School of Nursing, and would authorize the Secretary 
     to conduct a demonstration project to enable retired military 
     nurses to serve as faculty at civilian nursing schools.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would authorize the Secretary of Defense to 
     conduct a demonstration project to encourage retired military 
     nurses to serve as faculty at civilian nursing schools.
     Report on planning for participation and hosting of the 
         Department of Defense in international sports activities, 
         competitions, and events (sec. 598)
       The Senate bill contained a provision (sec. 584) that would 
     amend section 717 of title 10, United States Code, to include 
     the Military World Games as an international sports 
     competition in which members of the armed forces may be 
     authorized to participate. The provision would increase the 
     maximum amounts from $3.0 million to $6.0 million that the 
     Secretary of Defense may apportion among the military 
     departments, and from $100,000 to $200,000 for the Coast 
     Guard and Department of Homeland Security, that may be spent 
     during each successive 4 year period beginning on October 1, 
     2008, for participation in certain international sports 
     competitions. The provision would also require the Secretary 
     to submit to the Committees on Armed Services of the Senate 
     and the House of Representatives not later than October 1, 
     2009, a report setting forth a comprehensive plan for 
     participation in and planning for hosting of international 
     sports activities, competitions, and events.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would require the report only.


                   legislative provisions not adopted

     Extension of authority to reduce minimum length of active 
         service required for voluntary retirement as an officer
       The House bill contained a provision (sec. 503) that would 
     extend the period during which the Secretary of Defense may 
     authorize the secretaries of the military departments to 
     lower the years of active service as a commissioned officer 
     required for retirement as an officer from a minimum of 10 
     years to a minimum of 8 years.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Compensation for civilian President of Naval Postgraduate 
         School
       The House bill contained a provision (sec. 543) that would 
     authorize the Secretary of the Navy to compensate the 
     civilian President of the Naval Post Graduate School as the 
     Secretary prescribes, except that basic pay could not exceed 
     the rate of compensation authorized for Level I of the 
     Executive Schedule.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Advancement of Brigadier General Charles E. Yeager, United 
         States Air Force (Retired), on the retired list
       The House bill contained a provision (sec. 563) that would 
     entitle Brigadier General Yeager to hold the rank of major 
     general on the retired list of the Air Force.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
       Brigadier General Yeager is an extraordinary American hero. 
     During World War II he distinguished himself in aerial combat 
     over France and Germany by shooting down 13 enemy aircraft 
     including five on one mission. As an Air force test pilot he 
     played a pivotal role in the advancement of aviation. 
     Brigadier General Yeager made history on October 14, 1947, 
     when he became the first man to fly faster than the speed of 
     sound and on December 12, 1953, he also became the first man 
     to fly faster than twice the speed of sound. During the 
     Vietnam War he flew 127 missions over South Vietnam as the 
     Commander of the 405th Fighter Wing. He is one of only four 
     individuals to have received the Special Medal of Honor, the 
     non-combat equivalent of the Medal of Honor.
       For these and many other achievements in a remarkable life 
     of leadership, commitment, and achievement in service to the 
     Air Force and the United States, we urge the President to 
     reconsider Brigadier General Yeager's advancement on the 
     retired list and immediately nominate him for promotion to 
     the grade of Major General.
     Advancement of Rear Admiral Wayne E. Meyer, United States 
         Navy (Retired), on the retired list
       The House bill contained a provision (sec. 564) that would 
     authorize and request the President to appoint, by and with 
     the advice and consent of the Senate, Rear Admiral Wayne E. 
     Meyer to the grade of vice admiral on the retired list of the 
     Navy.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
       The Department of Defense is encouraged to review the 
     military records of Rear Admiral Meyer and to consider 
     whether he should be appointed to the grade of vice admiral 
     on the retired list of the Navy. If the Department concludes 
     that he should be so appointed, the Administration should 
     request legislation authorizing the appointment, with the 
     advice and consent of the Senate.
     Award of Vietnam Service Medal to veterans who participated 
         in Mayaguez rescue operation
       The House bill contained a provision (sec. 565) that would 
     authorize the secretary of a military department to award the 
     Vietnam Service Medal to eligible veterans in lieu of any 
     Armed Forces Expeditionary Medal awarded for participation in 
     the Mayaguez rescue operation of May 12 through May 15, 1975.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Retroactive award of Army Combat Action Badge
       The House bill contained a provision (sec. 566) that would 
     authorize the Secretary of the Army to award the Army Combat 
     Action Badge to individuals who, while a member of the Army, 
     participated in combat between December 7, 1941, and 
     September 18, 2001.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Inclusion of Reserves in providing federal aid for State 
         governments, enforcing federal authority, and responding 
         to major public emergencies
       The House bill contained a provision (sec. 591) that would 
     amend sections 331, 332, and 333 of title 10, United States 
     Code, to clarify that the President's authority to use the 
     armed forces, including units and members of the Army 
     Reserve, Navy Reserve, Air Force Reserve, Marine Corps 
     Reserve, and Coast Guard Reserve, for the purposes delineated 
     in those sections.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.

[[Page 20556]]

       This provision was requested by the Department of Defense 
     to give the President the maximum flexibility in employing 
     the armed forces, including the unique capabilities in the 
     Army, Navy, Marine Corps, and Coast Guard Reserves when 
     necessary to respond to major disasters or emergencies. Many 
     State governors have expressed concern about unity of effort 
     of State and federal forces in delivering emergency services 
     to citizens of their states and are concerned that they lack 
     sufficient authority to direct the efforts of federal forces, 
     including personnel and units of the armed forces.
       We agree that this proposal has significant merit. The 
     Department of Defense should engage with the community of 
     governors to work out an understanding of unity of effort 
     during domestic terrorist events and public emergencies. This 
     key underlying issue must be addressed to allow this and 
     other promising proposals to be enacted.
     Authority to order Reserve units to active duty to provide 
         assistance in response to a major disaster or emergency
       The House bill contained a provision (sec. 594) that would 
     amend section 12304(b) of title 10, United States Code, to 
     provide that when the President determines that it is 
     necessary to assist in responding to a major disaster or 
     emergency as defined in the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act (42 U.S.C. 5122), the 
     Secretary of Defense, and the Secretary of Homeland Security 
     with respect to the Coast Guard when not operating as a 
     service for the Navy, may be authorized to order any unit or 
     member of the Army Reserve, Air Force Reserve, Navy Reserve, 
     Marine Corps Reserve, or Coast Guard Reserve to active duty 
     for not more than 365 days.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
       This provision was requested by the Department of Defense 
     to give the President the maximum flexibility in employing 
     the armed forces, including the unique capabilities in the 
     Army, Navy, Marine Corps, and Coast Guard Reserves when 
     necessary to respond to major disasters or emergencies. Many 
     State governors have expressed concern about unity of effort 
     of State and federal forces in delivering emergency services 
     to citizens of their states and are concerned that they lack 
     sufficient authority to direct the efforts of federal forces, 
     including personnel and units of the armed forces.
       We agree that this proposal has significant merit. The 
     Department of Defense should engage with the community of 
     governors to work out an understanding of unity of effort 
     during domestic terrorist events and public emergencies. This 
     key underlying issue must be addressed to allow this and 
     other promising proposals to be enacted.
     Limitation on simultaneous deployment to combat zones of 
         dual-military couples who have minor dependents
       The House bill contained a provision (sec. 596) that would 
     authorize a member of the armed forces with minor dependents 
     to request a deferment of deployment to an area for which 
     imminent danger pay is authorized if the member has a spouse 
     who is a member of the armed forces deployed to such an area.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Additional funds to carry out funeral honor functions at 
         funerals for veterans
       The House bill contained a provision (sec. 597) that would 
     provide an additional $3.0 million for compliance with the 
     funeral honors requirements of section 1491 of title 10, 
     United States Code.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Protection of child custody arrangements for parents who are 
         members of the armed forces deployed in support of a 
         contingency operation
       The House bill contained a provision (sec. 4510) that would 
     amend Title II of the Servicemembers' Civil Relief Act (50 
     U.S.C. App. 521 et seq.) (SCRA) to provide that a court may 
     not modify or amend any previous judgment or order, or issue 
     a new order, that would change the custody arrangements for a 
     child of a servicemember deployed in support of a contingency 
     operation unless there is clear and convincing evidence that 
     it is in the best interest of the child. The provision would 
     also provide that a court may not consider the absence of a 
     service member by reason of deployment, or possibility of 
     deployment, in determining the best interest of the child.
       The Senate bill contained no similar provision.
       The agreement does not include this provision.
       It is the sense of Congress that, when addressing the best 
     interests of minor children in child custody cases, judges 
     should, whenever possible, allow service members to return 
     from deployment before issuing a permanent order regarding 
     child custody arrangements.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

     Fiscal year 2009 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 3.9 percent effective on January 1, 2009. This 
     across-the-board pay raise is 0.5 percent above the budget 
     request.
       The Senate bill contained an identical provision (sec. 
     601).
       The agreement includes this provision.
     Permanent extension of prohibition on charges for meals 
         received at military treatment facilities by members 
         receiving continuous care (sec. 602)
       The House bill contained a provision (sec. 602) that would 
     amend section 402 of title 37, United States Code, to make 
     permanent the prohibition on charges for meals received at 
     military treatment facilities by certain service members 
     receiving continuous care.
       The Senate bill contained a similar provision (sec. 616).
       The agreement includes the Senate provision.
     Increase in maximum authorized payment or reimbursement 
         amount for temporary lodging expenses (sec. 603)
       The House bill contained a provision (sec. 604) that would 
     increase the maximum authorized payment or reimbursement rate 
     for temporary lodging expenses from $180 per day to $290 per 
     day.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a technical 
     amendment.
     Availability of second family separation allowance for 
         married couples with dependents (sec. 604)
       The House bill contained a provision (sec. 605) that would 
     require the service secretaries to pay one member of a 
     married couple, both of whom are members of the uniformed 
     services who are residing together with dependents prior to a 
     qualifying deployment, a full family separation allowance 
     under section 427 of title 37, United States Code, and to pay 
     the other member one-half of such allowance.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the service secretaries to pay 
     each member of a married couple who qualify under this 
     provision a full family separation allowance under section 
     427 of title 37, United States Code.
     Extension of authority for income replacement payments for 
         reserve component members experiencing extended and 
         frequent mobilization for active duty service (sec. 605)
       The House bill contained a provision (sec. 607) that would 
     extend for 1 year the authority to pay income replacement for 
     reserve component members experiencing extended and frequent 
     mobilization for active duty service.
       The Senate bill contained a provision (sec. 614) that 
     included an identical extension.
       The agreement includes the House provision.

           Subtitle B--Bonuses and Special and Incentive Pays

     Extension of certain bonus and special pay authorities for 
         reserve forces (sec. 611)
       The House bill contained a provision (sec. 611) that would 
     extend for 1 year the authority to pay the Selected Reserve 
     reenlistment bonus; the Selected Reserve affiliation or 
     enlistment bonus; 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 bill contained an identical provision (sec. 
     611).
       The agreement includes this provision.
     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 until December 31, 2009, 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 specialties; the accession bonus for dental 
     officers; the accession bonus for pharmacy officers; the 
     accession bonus for medical officers in critically short 
     wartime specialties; and the accession bonus for dental 
     specialist officers in critically short wartime specialties.
       The Senate bill contained a similar provision (sec. 612).
       The agreement includes the House provision.
     Extension of special pay and bonus authorities for nuclear 
         officers (sec. 613)
       The House bill contained a provision (sec. 613) that would 
     extend for 1 year the authority to pay the special pay for 
     nuclear-qualified officers extending their period of active 
     duty; the nuclear career accession bonus; and the nuclear 
     career annual incentive bonus.

[[Page 20557]]

       The Senate bill contained an identical provision (sec. 
     613).
       The agreement includes this provision.
     Extension of authorities relating to payment of other title 
         37 bonuses and special pays (sec. 614)
       The House bill contained a provision (sec. 614) that would 
     extend for 1 year the authority to pay the aviation officer 
     retention bonus; assignment incentive pay; the reenlistment 
     bonus for active members; the enlistment bonus; the accession 
     bonus for new officers in critical skills; the incentive 
     bonus for conversion to military occupational specialty to 
     ease personnel shortage; the accession bonus for officer 
     candidates; and the retention bonus for members with critical 
     military skills or assigned to high priority units.
       The Senate bill contained a provision (sec. 614) that would 
     extend for 1 year the authority to pay the foregoing bonuses 
     and special pays and income replacement for reserve members 
     experiencing extended and frequent mobilizations.
       The agreement includes the House provision.
     Extension of authorities relating to payment of referral 
         bonuses (sec. 615)
       The House bill contained a provision (sec. 615) that would 
     extend for 1 year the authority to pay the health professions 
     referral bonus and the Army referral bonus under sections 
     1030 and 3252 of title 10, United States Code, respectively.
       The Senate bill contained a similar provision (sec. 615).
       The agreement includes the House provision.
     Increase in maximum bonus and stipend amounts authorized 
         under nurse officer candidate accession program and 
         Health Professions Stipend Program (sec. 616)
       The House bill contained a provision (sec. 616) that would 
     increase the bonus that may be paid to nurse officer 
     candidates under section 2130a of title 10, United States 
     Code, from $10,000 to $20,000, and the monthly stipend that 
     may be paid to such candidates from $1,000 to $1,250. The 
     provision would also increase the maximum initial installment 
     of the bonus from $5,000 to $10,000.
       The Senate bill contained a provision (sec. 553) that would 
     equate the authority for the stipend paid to baccalaureate 
     students in nursing or other health professions under the 
     Health Professions Stipend Program for health care 
     professionals in reserve components with the amount of the 
     stipend paid to participants in the Armed Forces Health 
     Professions Scholarship Program under section 2121(d) of 
     title 10, United States Code.
       The agreement includes the House provision with an 
     amendment that includes the provisions of section 553 of the 
     Senate bill, and equates the maximum monthly stipend that may 
     be paid to nurse officer candidates to the stipend paid under 
     section 2121(d) of title 10, United States Code.
     Maximum length of nuclear officer incentive pay agreements 
         for service (sec. 617)
       The House bill contained a provision (sec. 617) that would 
     amend section 312 of title 37, United States Code, to require 
     only that a qualifying agreement to remain on active duty be 
     for a period of not less than 3 years with the objective of 
     providing more flexibility in administering the nuclear 
     officer continuation pay.
       The Senate bill contained a similar provision (sec. 618).
       The agreement includes the House provision.
     Technical changes regarding consolidation of special pay, 
         incentive pay, and bonus authorities of the uniformed 
         services (sec. 618)
       The House bill contained a provision (sec. 618) that would 
     make technical changes to facilitate the utility of 
     provisions included in the initiative to reform special and 
     incentive pays adopted in the National Defense Authorization 
     Act for Fiscal Year 2008 (Public Law 110-181).
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a technical 
     amendment.
     Use of new skill incentive pay and proficiency bonus 
         authorities to encourage training in critical foreign 
         languages and foreign cultural studies and authorization 
         of incentive pay for members of precommissioning programs 
         pursuing foreign language proficiency (sec. 619)
       The House bill contained a provision (sec. 619) that would 
     amend section 353 of title 37, United States Code, to 
     authorize a skill proficiency bonus of up to $12,000 annually 
     to a member enrolled in an officer training program and 
     certain Senior Reserve Officers' Training Corps program 
     participants who agree to participate in educational programs 
     aimed at acquiring proficiency in critical foreign languages 
     or expertise in critical foreign cultural studies. The 
     provision would also require the Secretary of Defense to 
     conduct a pilot program through December 31, 2013, that would 
     pay a skill proficiency bonus to members of reserve 
     components who similarly participate in designated foreign 
     language or cultural studies programs.
       The Senate bill contained a similar provision (sec. 619) 
     that would create a new section 316a of title 37, United 
     States Code, to authorize the Secretary of Defense to pay 
     incentive pay of up to $3,000 per year to an individual 
     pursuing foreign language proficiency while enrolled in the 
     Senior Reserve Officers' Training Corps or the Marine Corps 
     Platoon Leaders Class.
       The agreement includes the House provision with an 
     amendment that would authorize the Secretary of Defense to 
     pay incentive pay to an individual pursuing foreign language 
     proficiency in a critical foreign language while enrolled in 
     the Senior Reserve Officers' Training Corps or the Marine 
     Corps Platoon Leaders Class.
     Accession and retention bonuses for the recruitment and 
         retention of officers in certain health professions (sec. 
         620)
       The House bill contained a provision (sec. 620) that would 
     designate qualified psychologists, registered nurses, and 
     other mental health professionals as determined by the 
     service secretaries, as critically short wartime specialties.
       The Senate bill contained a provision (sec. 617) that would 
     add a new section 301f to title 37, United States Code, to 
     authorize a multiyear retention bonus for uniformed 
     psychologists in the maximum amount of $25,000 per year for 
     up to 4 years. The provision would also add a new section 
     302m to title 37, United States Code, to authorize an 
     accession bonus for uniformed psychologists of up to $400,000 
     for an active-duty commitment of at least 4 years.
       The agreement includes the House provision with an 
     amendment that would add the multiyear retention bonus and 
     accession bonus for uniformed psychologists.

            Subtitle C--Travel and Transportation Allowances

     Special weight allowance for transportation of professional 
         books and equipment for spouses (sec. 621)
       The House bill contained a provision (sec. 632) that would 
     authorize an additional weight allowance of 200 pounds for 
     shipping materials associated with the employment or 
     community support activities of the service member's spouse.
       The Senate bill contained a provision (sec. 632) that would 
     authorize the service secretaries to permit an additional 
     weight allowance of up to 500 pounds for professional books 
     and equipment belonging to spouses of service members 
     changing their permanent duty station. The provision would 
     take effect October 1, 2009.
       The agreement includes the Senate provision with an 
     amendment that would make the provision effective upon date 
     of enactment of the Act.
     Shipment of family pets during evacuation of personnel (sec. 
         622)
       The House bill contained a provision (sec. 633) that would 
     authorize transportation, including payment of shipping and 
     quarantine costs, of two household pets in cases of 
     evacuation from a permanent station located in a foreign 
     area.
       The Senate bill contained a similar provision (sec. 631).
       The agreement includes the Senate provision with an 
     amendment that would subject the allowances for 
     transportation of family pets to regulations prescribed by 
     the Secretary of Defense that may specify limitations on the 
     types, size, and number of pets for which transportation may 
     be provided or reimbursement paid.

             Subtitle D--Retired Pay and Survivor Benefits

     Extension to survivors of certain members who die on active 
         duty of special survivor indemnity allowance for persons 
         affected by required Survivor Benefit Plan annuity offset 
         for Dependency and Indemnity Compensation (sec. 631)
       The House bill contained a provision (sec. 643) that would 
     extend the special survivor indemnity allowance enacted in 
     section 644 of the National Defense Authorization Act for 
     Fiscal Year 2008 (Public Law 110-181) to survivors of certain 
     service members who die on active duty.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Correction of unintended reduction in Survivor Benefit Plan 
         annuities due to phased elimination of two-tier annuity 
         computation and supplemental annuity (sec. 632)
       The House bill contained a provision (sec. 646) that would 
     require the Secretary of Defense to determine if the phased 
     elimination of the two-tier annuity computation system, 
     formerly a part of the Survivor Benefit Plan, and related 
     supplemental survivor annuities, resulted in some Survivor 
     Benefit Plan annuitants receiving a smaller annuity than they 
     would have received if the two-tier computation system had 
     not been eliminated, and to take such actions as necessary to 
     adjust the annuity amounts to eliminate the reduction.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.

[[Page 20558]]



    Subtitle E--Commissary and NonAppropriated Fund Instrumentality 
                        Benefits and Operations

     Use of commissary stores surcharges derived from temporary 
         commissary initiatives for reserve components and retired 
         members (sec. 641)
       The House bill contained a provision (sec. 651) that would 
     authorize the Secretary of Defense to use the proceeds 
     derived from surcharges imposed in connection with sales of 
     commissary merchandise to members of reserve components, 
     retired members, and others eligible for commissary benefits 
     through use of temporary and mobile equipment to offset the 
     cost of such initiatives.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Enhanced enforcement of prohibition on sale or rental of 
         sexually explicit material on military installations 
         (sec. 642)
       The House bill contained a provision (sec. 654) that would 
     require the Secretary of Defense to establish a Resale 
     Activities Review Board to make recommendations to the 
     Secretary regarding whether material sold or rented, or 
     proposed for sale or rental, on military installations is 
     barred from sale or rental due to its sexually explicit 
     nature.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.

                       Subtitle F--Other Matters

     Continuation of entitlement to bonuses and similar benefits 
         for members of the uniformed services who die, are 
         separated or retired for disability, or meet other 
         criteria (sec. 651)
       The House bill contained a provision (sec. 662) that would 
     require the service secretaries to pay the unpaid portions of 
     bonuses to, and prohibit the service secretaries from 
     recouping unearned portions of paid bonuses from, service 
     members or their estates in the case of members who die, 
     other than as a result of their own misconduct, or who are 
     retired or separated under chapter 61 of title 10, United 
     States Code. The provision would also authorize the service 
     secretaries to waive recoupment of unearned bonuses and to 
     pay the unpaid amounts of contracted bonuses in any 
     circumstance where failing to do so would be against equity 
     and good conscience or contrary to the best interests of the 
     United States.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would clarify that the prohibition against 
     requiring repayment of the unearned portion of any bonus, and 
     the requirement to pay out the remainder of any bonus not yet 
     paid, applies to service members who die while on active 
     duty, or service members who retire or separate due to a 
     disability that is determined to be combat-related as defined 
     in section 1413a(e) of title 10, United States Code.


                   Legislative Provisions Not Adopted

     Equitable treatment of senior enlisted members in computation 
         of basic allowance for housing
       The House bill contained a provision (sec. 603) that would 
     amend section 403 of title 37, United States Code, to provide 
     that the determination of what constitutes adequate housing 
     for members in the pay grade of E-8 with dependents shall be 
     equivalent to the standard in effect for members in the pay 
     grade of E-9 with dependents.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Stabilization of pay and allowances for senior enlisted 
         members and warrant officers appointed as officers and 
         officers reappointed in a lower grade
       The House bill contained a provision (sec. 606) that would 
     authorize a member of the armed forces who accepts an 
     appointment or reappointment as an officer, without a break 
     in service, to retain the pay and allowances to which the 
     member was entitled in the previous grade if it is more than 
     the pay and allowances to which the member is entitled in the 
     grade to which he is appointed or reappointed.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     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. 608) that would 
     mandate that pay raises for all service members during fiscal 
     years 2010 through 2013 be one-half of 1 percent higher than 
     the annual rise in the Employment Cost Index.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Increased weight allowance for transportation of baggage and 
         household effects for certain enlisted members
       The House bill contained a provision (sec. 631) that would 
     authorize an additional weight allowance for noncommissioned 
     officers in the grades E-5 through E-9 for shipping household 
     goods during permanent changes in station.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Travel and transportation allowances for members of the 
         reserve components of the armed forces on leave for 
         suspension of training
       The Senate bill contained a provision (sec. 633) that would 
     add a new section 411k to title 37, United States Code, to 
     authorize travel and transportation allowances for service 
     members on active duty for more than 30 days to travel from a 
     temporary duty station to their permanent duty station and 
     back again during times when training is suspended at the 
     temporary duty station for a period of 5 days or more.
       The House bill contained no similar provision.
       The agreement does not include the provision.
       We urge the services to be mindful of training suspensions 
     and minimal staffing periods when devising training schedules 
     for the reserve components. Suspension of training activities 
     for mobilized Reserve and National Guard units must be 
     carefully managed to avoid wasted time and unnecessary 
     absence from home duty stations, particularly during the 
     holiday season.
     Equity in computation of disability retired pay for reserve 
         component members wounded in action
       The House bill contained a provision (sec. 641) that would 
     change the method of calculating retired pay for reserve 
     component members who have been awarded the Purple Heart by 
     crediting the members with a year of active-duty service for 
     each year the members received at least 50 reserve retirement 
     points.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Effect of termination of subsequent marriage on payment of 
         Survivor Benefit Plan annuity to surviving spouse or 
         former spouse who previously transferred annuity to 
         dependent children
       The House bill contained a provision (sec. 642) that would 
     authorize surviving spouses or former spouses, who had 
     previously transferred their Survivor Benefit Plan annuity to 
     a child or children, to reclaim their eligibility for the 
     annuity after the termination of a subsequent marriage if the 
     child or children were no longer eligible for the annuity.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Repeal of requirement of reduction of SBP survivor annuities 
         by Dependency and Indemnity Compensation
       The Senate bill contained a provision (sec. 642) that would 
     eliminate the offset of Survivor Benefit Plan annuities by 
     the amount of Dependency and Indemnity Compensation received 
     from the Department of Veterans Affairs.
       House bill contained no similar provision.
       The agreement does not include the provision.
     Election to receive retired pay for non-regular service upon 
         retirement for service in an active reserve status 
         performed after attaining eligibility for regular 
         retirement
       The House bill contained a provision (sec. 644) that would 
     allow officers with at least 20 years of active-duty service 
     to retire and join the Selected Reserve and, after serving at 
     least 2 years in the Selected Reserve, to receive retired pay 
     in a higher grade if they are promoted after their active-
     duty retirement.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Recomputation of retired pay and adjustment of retired grade 
         of Reserve retirees to reflect service after retirement
       The House bill contained a provision (sec. 645) that would 
     amend section 10145 of title 10, United States Code, to 
     require recomputation of retired pay and adjustment of 
     retired grade of non-regular retirees recalled to an active 
     status in the Selected Reserve who complete not less than 2 
     years of service in that status.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Presumption of death for participants in Survivor Benefit 
         Plan in missing status
       The House bill contained a provision (sec. 647) that would 
     prohibit a determination of presumed death by the Secretary 
     of State for retired service members who are Survivor Benefit 
     Plan annuitants, and who have been kidnapped in Iraq or 
     Afghanistan.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
       While current law explicitly entitles an active-duty 
     service member to continued pay and allowances upon a 
     determination that

[[Page 20559]]

     the member is missing, retired pay is stopped when a retired 
     service member is determined to be missing, regardless of 
     whether the member is still in a direct employment 
     relationship with the Federal Government. Under the Survivor 
     Benefit Plan, commencement of payment of the survivor benefit 
     annuity may begin upon such a determination. We are sensitive 
     to the fact that the annuity is typically but a portion of 
     full retired pay. The Department of Defense must balance the 
     need to avoid erroneous payments to survivors with the need 
     to protect the interests of survivors in situations where 
     death cannot or should not be presumed. We urge the 
     Department to study whether retired pay should be stopped in 
     the case of retired service members who are still in a direct 
     employment relationship with the Federal Government, and to 
     recommend statutory changes to the Congress, as necessary.
     Eligibility for disability retired pay and separation pay of 
         certain former cadets and midshipmen with prior enlisted 
         service
       The House bill contained a provision (sec. 648) that would 
     extend retroactively the eligibility for disability retired 
     pay and separation pay to cadets and midshipmen with prior 
     enlisted service whose physical disabilities were incurred 
     after January 1, 2000.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Separation pay, transitional health care, and transitional 
         commissary and exchange benefits for members of the armed 
         forces separated under surviving son or daughter policy
       The Senate bill contained a provision (sec. 651) that would 
     entitle service members who are separated under the 
     Department of Defense surviving son or daughter policy to 
     separation pay, transitional health care, and transitional 
     commissary and exchange benefits.
       The House bill contained no similar provision.
       The agreement does not include the provision. The benefits 
     of this section were included in the Hubbard Act (Public Law 
     110-317) enacted August 29, 2008.
     Requirements for private operation of commissary store 
         functions
       The House bill contained a provision (sec. 652) that would 
     amend section 2485(a)(2) of title 10, United States Code, to 
     extend the moratorium on studies to compare the cost 
     effectiveness of commissary operations employing federal 
     civilian employees and private sector employees from December 
     31, 2008, to December 31, 2013.
       The Senate amendment contained no similar provision.
       The agreement does not include the House provision.
       Before initiating a cost comparison study of a commissary 
     store under Office of Management and Budget Circular A-76, we 
     recommend that the Secretary of Defense confirm that the 
     government workforce in question has transitioned to the 
     Defense Commissary Agency's Workforce of the Future and 
     ensure that the private sector competitor has demonstrated 
     experience in grocery store operations.
     Additional exception to limitation on use of appropriated 
         funds for Department of Defense golf courses
       The House bill contained a provision (sec. 653) that would 
     amend section 2491a of title 10, United States Code, to 
     authorize the use of appropriated funds to purchase and 
     maintain golf carts designed to accommodate persons with 
     disabilities and the use of such golf carts on military golf 
     courses.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Use of appropriated funds to pay post allowance or overseas 
         cost of living allowances to nonappropriated fund 
         instrumentality employees serving overseas
       The House bill contained a provision (sec. 656) that would 
     authorize the Secretary of Defense to pay post or cost of 
     living allowances to nonappropriated fund instrumentality 
     employees who are United States citizens and employed full-
     time at an overseas location utilizing appropriated funds. 
     Appropriated funds may be used to pay such allowances only if 
     they were due to a nonappropriated fund instrumentality 
     employee or former employee since December 1, 2001, but have 
     not been previously paid.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
       We are aware that there has been some confusion about the 
     requirement for nonappropriated fund entities to pay post 
     allowances at overseas locations when the employee is hired 
     locally. We are also aware that the Department of Defense is 
     reconsidering the current policy that requires post 
     allowances to be paid to nonappropriated fund employees who 
     are locally hired. Given the confusion over the specifics of 
     the policy, we believe that nonappropriated fund entities 
     should be protected from the burden of making additional 
     unexpected retroactive and current payments until the 
     Department's reassessment of the policy is completed. We 
     strongly urge the Secretary of Defense to identify and 
     allocate appropriated funding to pay post allowances to 
     locally hired nonappropriated fund employees at overseas 
     locations and ensure that no nonappropriated fund entity 
     incurs additional cost resulting from confusion over the 
     Department's policy on these matters.
     Study regarding sale of alcoholic wine and beer in commissary 
         stores in addition to exchange stores
       The House bill contained a provision (sec. 657) that would 
     require the Secretary of Defense to conduct a study to 
     evaluate the propriety, patron convenience, and financial 
     utility of including alcoholic wine and beer for sale in, at, 
     or by commissary stores, and to report the findings of this 
     study to Congress. This provision would also authorize the 
     Secretary to conduct a pilot program involving the sale of 
     alcoholic wine and beer in commissary stores.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Bonus to encourage Army personnel and other persons to refer 
         persons for enlistment in the Army
       The House bill contained a provision (sec. 661) that would 
     authorize the Secretary of the Army to train, directly or 
     through a contractor, members of the general public to refer 
     recruit candidates for enlistment. The provision would also 
     provide the Secretary greater flexibility on the timing of 
     referral bonus payments and the use of a contractor to manage 
     the payment of such bonuses.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Providing injured members of the armed forces information 
         concerning benefits
       The House bill contained a provision (sec. 663) that would 
     amend section 1651 of the National Defense Authorization Act 
     for Fiscal Year 2008 (Public Law 110-181) to add additional 
     requirements to the handbook required by that section.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Postal benefits program for members of the armed forces 
         serving in Iraq or Afghanistan
       The House bill contained a provision (sec. 664) 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 bill contained no similar provision.
       The agreement does not include this provision.

         TITLE VII--HEALTH CARE AND WOUNDED WARRIOR PROVISIONS

              Subtitle A--Improvements to 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 until September 30, 2009, the statutory prohibition on 
     increases in any premium, deductible, and copayment under 
     TRICARE; the maximum charge for inpatient care under TRICARE 
     Standard; and the enrollment fee for TRICARE Prime.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     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 2009.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Chiropractic health care for members on active duty (sec. 
         703)
       The House bill contained a provision (sec. 704) that would 
     require the Secretary of Defense to provide chiropractic 
     services for members of the uniformed services who are 
     entitled to care under section 1074(a) of title 10, United 
     States Code. The provision would also authorize the Secretary 
     to conduct demonstration projects to provide chiropractic 
     services to deployed members of the uniformed services.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the Secretary of Defense, not 
     later than September 30, 2009, to provide chiropractic 
     services to active duty service members at 11 additional 
     Military Treatment Facilities that do not currently provide 
     chiropractic services, the selection of which would be 
     decided by the Department of Defense.

[[Page 20560]]


     Calculation of monthly premiums for coverage under TRICARE 
         Reserve Select after 2008 (sec. 704)
       The House bill contained a provision (sec. 705) that would 
     require the Secretary of Defense to recalculate the monthly 
     premium for TRICARE Standard coverage. The premium could not 
     cost more than 28 percent of the total average monthly amount 
     for coverage based on actual cost data for the preceding 
     fiscal year. If the amount calculated based on actual cost 
     data is more than the amount in effect for the month of March 
     2006, then the Secretary would be required to offer coverage 
     at the March 2006 rate.
       The Senate bill contained a provision (sec. 701) that would 
     require the Secretary of Defense to calculate calendar year 
     2009 monthly premiums for TRICARE Standard coverage based on 
     the actual cost of coverage during calendar years 2006 and 
     2007. The provision would require the premiums for subsequent 
     years to be calculated using the actual cost of providing 
     benefits during the preceding calendar years.
       The agreement includes the Senate provision with an 
     amendment that would stipulate that calendar year 2009 
     monthly premium calculations must be limited to no more than 
     28 percent of the total average monthly amount for that 
     coverage, as determined by the cost of providing benefits 
     during calendar years 2006 and 2007, but may not exceed the 
     amount in effect for the month of March 2007. For subsequent 
     years, the premium calculation must be based on the actual 
     cost of providing benefits during the preceding calendar 
     years.
     Program for health care delivery at military installations 
         projected to grow (sec. 705)
       The House bill contained a provision (sec. 706) that would 
     require the Secretary of Defense to develop a plan to 
     establish a program to build cooperative health care 
     arrangements and agreements between military installations 
     projected to grow and local and regional civilian health care 
     systems. The provision would also require the Secretary to 
     implement such a program at each installation participating 
     in the pilot program conducted pursuant to section 721 of the 
     Ronald W. Reagan National Defense Authorization Act for 
     Fiscal Year 2005 (Public Law 108-375). The Secretary would be 
     required to submit an annual report to the Committees on 
     Armed Services of the Senate and House of Representatives 
     describing the results of the program.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would authorize the Secretary to develop a 
     plan, and that would delete the requirement that the program 
     be implemented at each installation participating in the 
     pilot program under section 721 of Public Law 108-375.
       We are encouraged by the Department of Defense's assessment 
     of the pilot programs for health care delivery established by 
     Public Law 108-375 in its July 2007 interim report on the 
     status of these programs. At the two sites selected to test 
     the program, Fort Drum, New York, and Yuma, Arizona, the 
     Department found that ``substantive partnerships, significant 
     cooperative health care arrangements, and agreements'' have 
     been established between each installation and its local 
     civilian medical community. We urge the Department of Defense 
     to take the best practices learned from these respective 
     programs and use them as a model for future initiatives 
     established under this section.
     Guidelines for combined medical facilities of the Department 
         of Defense and the Department of Veterans Affairs (sec. 
         706)
       The House bill contained a provision (sec. 707) that would 
     require the Secretaries of Defense and Veterans Affairs to 
     complete a written agreement including, at a minimum, plans 
     for patient priority categories, budgeting, staffing, 
     construction, and physical plant management before a facility 
     could be designated a combined federal medical facility of 
     the Department of Defense and the Department of Veterans 
     Affairs.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would add governance, training, contingency 
     planning, quality assurance, and information technology to 
     the list of minimum requirements for the written agreement.

                      Subtitle B--Preventive Care

     Waiver of copayments for preventive services for certain 
         TRICARE beneficiaries (sec. 711)
       The House bill contained a provision (sec. 711) that would 
     require the Secretary of Defense to waive all TRICARE 
     copayments for preventive services for all beneficiaries who 
     would otherwise pay copayments, and to ensure that a 
     beneficiary pays nothing for preventive services during a 
     year even if the beneficiary has not paid the amount 
     necessary to cover their annual deductible. The provision 
     would also authorize the Secretary to refund the copayment 
     amounts paid by certain Medicare-eligible beneficiaries for 
     preventive services obtained during fiscal year 2009. Covered 
     preventive services would include colorectal screening, 
     breast screening, cervical screening, prostate screening, 
     annual physical exams, and vaccinations.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would expand the list of covered preventive 
     services to include any other services as determined by the 
     Secretary of Defense.
       We believe that the Department of Defense should also 
     consult with and consider the recommendations of the U.S. 
     Preventive Services Task Force, as well as consider including 
     screenings for other preventable health care conditions such 
     as osteoporosis.
     Military health risk management demonstration project (sec. 
         712)
       The House bill contained a provision (sec. 712) that would 
     require the Secretary of Defense to conduct a demonstration 
     project evaluating the efficacy of providing monetary and 
     non-monetary incentives to assist enrolled beneficiaries to 
     improve and encourage healthy behaviors. The demonstration 
     project must include a wellness assessment with physiological 
     and biometric measures such as blood pressure, glucose level, 
     lipids, and nicotine use. Non-Medicare eligible retired 
     TRICARE Prime beneficiaries and their dependents who reside 
     in the demonstration project service area would be enrolled 
     in the demonstration project.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would offer, rather than require, eligible 
     beneficiaries to enroll in the demonstration project, and 
     would add weight to the list of measures to be included in 
     the wellness assessment.
     Smoking cessation program under TRICARE (sec. 713)
       The House bill contained a provision (sec. 713) that would 
     require the Secretary of Defense to establish a smoking 
     cessation program under TRICARE. The program would be made 
     available to all non-Medicare eligible beneficiaries covered 
     under TRICARE. The program would include, at a minimum: 
     pharmaceuticals used for smoking cessation through the mail-
     order pharmacy program at no cost to the beneficiary if 
     appropriate; access to a 24 hour, 7 days a week toll-free 
     quit line; and access to tobacco cessation materials.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would add counseling as a required program 
     element, and provide for involvement of the military chain of 
     command.
       We urge the Department of Defense to look at the work of 
     other nationally recognized programs and consider 
     implementing any appropriate best practices into its program.
     Preventive health allowance (sec. 714)
       The House bill contained a provision (sec. 714) that would 
     require the Secretary of Defense to conduct a demonstration 
     project to evaluate the efficacy of providing an annual 
     preventive health services allowance to eligible service 
     members, in order to increase the use of preventive health 
     services by those service members and their dependents.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would add to the list of preventive health 
     services weight and body mass screening.
     Additional authority for studies and demonstration projects 
         relating to delivery of health and medical care (sec. 
         715)
       The Senate bill contained a provision (sec. 712) that would 
     authorize the Secretary of Defense to conduct additional 
     studies and demonstrations relating to the delivery of health 
     and medical care, which may include:
       (1) projects to provide awards and incentives to TRICARE 
     covered service members and beneficiaries who obtain certain 
     health promotion and disease prevention health care services;
       (2) projects to provide awards and incentives to individual 
     health care professionals to encourage improved quality and 
     effectiveness of health care services;
       (3) projects to improve the medical and dental readiness of 
     the reserve components; and
       (4) projects to improve the continuity of health care 
     services for family members of mobilized members of the 
     reserve components, including payment of a stipend for 
     continuation of employer-provided health coverage.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would clarify that health promotion and 
     disease prevention health care services received by members 
     and covered beneficiaries are required to be obtained under 
     the TRICARE program. The amendment would also clarify that 
     personnel incentives available to individual health care 
     professionals should be made available to civilian personnel 
     as well as members of the armed forces.

                  Subtitle C--Wounded Warrior Matters

     Center of excellence in prevention, diagnosis, mitigation, 
         treatment, and rehabilitation of hearing loss and 
         auditory system injuries (sec. 721)
       The House bill contained a provision (sec. 721) that would 
     require the Secretary of Defense to establish within the 
     Department of

[[Page 20561]]

     Defense a center of excellence in the prevention, diagnosis, 
     mitigation, treatment, and rehabilitation of hearing loss and 
     auditory system injury. The Secretary would be required to 
     collaborate with the Secretary of Veterans Affairs, 
     institutions of higher education, and other appropriate 
     public and private entities to carry out the work of the 
     center.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
       We note that tinnitus, characterized by ringing in the 
     ears, can be a severely disabling condition that impacts 
     military personnel, particularly those exposed to blasts. The 
     genesis and nature of this condition requires further study, 
     including whether it disproportionately affects military 
     personnel, and its correlation to other combat related 
     neurological conditions.
     Clarification to center of excellence relating to military 
         eye injuries (sec. 722)
       The House bill contained a provision (sec. 722) that would 
     remove the phrase ``in combat'' from section 1623(d) of the 
     National Defense Authorization Act for Fiscal Year 2008 
     (Public Law 110-181) to match sections 1621 and 1623 of the 
     same Act.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
       We direct that not later than 30 days after the date of 
     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 
     implementation of the Vision Center of Excellence. The report 
     shall include, at a minimum, a description of the mission of 
     the center, the resources and funds available for the center 
     in fiscal years 2009 through 2013, and the planned programs 
     and priorities of the center.
     Center of excellence in the mitigation, treatment, and 
         rehabilitation of traumatic extremity injuries and 
         amputations (sec. 723)
       The House bill contained a provision (sec. 724) that would 
     require the Secretary of Defense and the Secretary of 
     Veterans Affairs to establish a competitive, peer-reviewed 
     research program to conduct peer-reviewed medical research 
     designed to develop scientific information aimed at saving 
     injured extremities, avoiding amputations, and preserving and 
     restoring the function of injured extremities. The Secretary 
     would also be required to submit a report on the plans for 
     establishment, management, and operation of this research 
     program.
       The Senate bill contained a similar provision (sec. 1066).
       The agreement includes the Senate provision with an 
     amendment that would add conducting research on saving 
     injured extremities, avoiding amputations, and preserving and 
     restoring the function of injured extremities to the 
     responsibilities of the center.
     Additional responsibilities for the Wounded Warrior Resource 
         Center (sec. 724)
       The Senate bill contained a provision (sec. 1064) that 
     would amend section 1616(a) of the Wounded Warrior Act (title 
     XVI of the National Defense Authorization Act for Fiscal Year 
     2008 (Public Law 110-181)) to require the Secretary of 
     Defense to provide referrals for legal assistance where 
     appropriate to wounded warriors, their families, and primary 
     caregivers.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
       We note that the intent of this provision is not to create 
     a new entitlement for legal assistance, but to provide a 
     referral service to connect wounded service members and their 
     families with their local judge advocate office or other 
     appropriate entity.
     Sense of Congress on research on traumatic brain injury (sec. 
         725)
       The Senate bill contained a provision (sec. 1065) that 
     would amend section 1621(c) of the National Defense 
     Authorization Act for Fiscal Year 2008 (Public Law 110-181) 
     to authorize the Secretary of Defense to conduct pilot 
     programs to promote or assess the efficacy of treatment 
     approaches for all forms of traumatic brain injury, to 
     include mild traumatic brain injury.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment to express the sense of Congress that the 
     requirement under section 1621(c)(7) to conduct basic science 
     and translational research on traumatic brain injury includes 
     pilot programs designed to test the efficacy of clinical 
     approaches, including the use of pharmacological agents. The 
     amendment would express support for continued joint research 
     with the National Institutes of Health in this area.
     Extension of Senior Oversight Committee with respect to 
         wounded warrior matters (sec. 726)
       The Senate bill contained a provision (sec. 1067) that 
     would require the Secretary of Defense and the Secretary of 
     Veterans Affairs to jointly take actions to continue the 
     operations of the Senior Oversight Committee established to 
     address concerns related to the treatment of wounded, ill, 
     and injured members of the armed forces and veterans until 
     September 30, 2011.
       The House bill contained no similar provision.
       The agreement contains the Senate provision with an 
     amendment to require the Secretary of Defense and the 
     Secretary of Veterans Affairs to continue the operations of 
     the Senior Oversight Committee until December 31, 2009, and 
     to report by August 31, 2009, on the future operations of the 
     Senior Oversight Committee.
     Modification of utilization of veterans' presumption of sound 
         condition in establishing eligibility of members of the 
         armed forces for retirement for disability (sec. 727)
       The Senate bill contained a provision (sec. 1061) that 
     would amend sections 1201 and 1203 of title 10, United States 
     Code, to adopt the same presumption of sound condition used 
     by the Department of Veterans Affairs in accordance with 
     section 1111 of title 38, United States Code, that a 
     disability is incurred while on active duty if the disability 
     was not noted at the time of a member's entrance on active 
     duty unless clear and unmistakable evidence demonstrates that 
     the disability existed before the member's entrance on active 
     duty and was not aggravated by active military service.
       The House bill contained no similar provision.
       The agreement includes this provision.
       We believe that the Department of Defense and the 
     Department of Veterans Affairs must make consistent 
     determinations as to whether a disability existed before the 
     member's entrance or was aggravated by active military 
     service.

                       Subtitle D--Other Matters

     Report on providing the Extended Care Health Option program 
         to dependents of military retirees (sec. 731)
       The House bill contained a provision (sec. 732) that would 
     require the Secretary of Defense to submit a report on 
     including autistic dependents of military retirees in the 
     Extended Care Health Option (ECHO) program.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would expand the scope of the report to cover 
     all dependents of retirees who participate in the ECHO 
     program, and clarify that the report should discuss including 
     such dependents for a limited transitional period following 
     retirement.
     Increase in cap on extended benefits under Extended Health 
         Care Option (ECHO) (sec. 732)
       The House bill contained a provision (sec. 733) that would 
     ensure that autistic children of members of the armed forces 
     enrolled in the Extended Health Care Option (ECHO) program 
     would be eligible for a minimum of $5,000 per month of 
     autistic therapy services.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would replace the monthly cap on services 
     under the ECHO program with an annual cap of $36,000.
       We are concerned that the needs of military dependent 
     children with autism are not being fully met due to the lack 
     of availability of providers nationwide to provide 
     therapeutic and other support services to children with 
     autism. We expect the demonstration project initiated under 
     TRICARE to go forward, incorporating to the maximum extent 
     practicable, improvements identified by military family 
     members. The demonstration project must complement other 
     essential services to military dependent children with 
     autism, including those authorized in section 587 of the 
     National Defense Authorization Act for Fiscal Year 2008 
     (Public Law 110-181). Those services include assignment of 
     case managers, development of individualized services plans, 
     and establishment of autism support centers.
       We direct the Secretary of Defense to report not later than 
     90 days after the enactment of this Act, and semi-annually 
     thereafter, on the status of implementation of the TRICARE 
     demonstration project, including the numbers of autistic 
     children served, the type and frequency of services provided, 
     the number of available providers by region, and whether 
     reimbursement levels are sufficient to retain qualified 
     providers in the TRICARE networks.
       Not later than February 1, 2009, the Secretary shall report 
     to the congressional defense committees on the feasibility of 
     establishing one or more autism support centers, as 
     authorized by Public Law 110-181. The report shall describe 
     the capabilities of such centers to serve military dependent 
     children with autism of all services, the potential efficacy 
     of such centers to meet the needs of military families with 
     children with a diagnosis of autism, as well as the potential 
     for training additional qualified providers of services to 
     children with autism. We believe that each center should 
     utilize medical, educational, and developmental therapies 
     that have been successfully used to treat children with 
     autism.

[[Page 20562]]


     Department of Defense task force on the prevention of 
         suicides by members of the armed forces (sec. 733)
       The House bill contained a provision (sec. 735) that would 
     require the Secretary of Defense to conduct a study to 
     identify the mental health risks associated with the 
     performance of military duties.
       The Senate bill contained a provision (sec. 581) that would 
     require the Secretary of Defense to develop a comprehensive 
     policy designed to prevent suicide by members of the armed 
     forces.
       The agreement includes the Senate provision with an 
     amendment that would require the Secretary of Defense to 
     establish a task force to examine matters relating to 
     prevention of suicide by members of the armed forces.
     Transitional health care for certain members of the armed 
         forces who agree to serve in the Selected Reserve of the 
         Ready Reserve (sec. 734)
       The House bill contained a provision (sec. 737) that would 
     provide transitional health care benefits to members who 
     separate from active duty and who agree to become a member of 
     the Selected Reserve.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would delete the language related to funding, 
     which is reflected in the tables.
     Enhancement of medical and dental readiness of members of the 
         armed forces (sec. 735)
       The House bill contained a provision (sec. 362) that would 
     authorize $22.3 million to be appropriated for first term 
     dental readiness, and $8.5 million to be appropriated for 
     demobilization dental treatment.
       The Senate bill contained a provision (sec. 711) that would 
     require the secretary of each military department to provide 
     to members of the Selected Reserve who are assigned to units 
     scheduled for deployment within 75 days after mobilization 
     annual medical screenings, a full physical examination for 
     members who are over the age of 40 every 2 years, and annual 
     dental screenings and dental care required to ensure that a 
     member meets the dental standards required for deployment, 
     all at no cost to the member. The provision would also 
     authorize the secretaries concerned to provide the same 
     services to other members of the Selected Reserve and to a 
     member of the Individual Ready Reserve with a deployment 
     responsibility, if those services are necessary to ensure 
     medical and dental readiness. In addition, the provision 
     would clarify that reserve components may use available 
     operation and maintenance funds to achieve these goals.
       The Senate provision would also authorize the Secretary of 
     Defense to waive, in whole or in part, during a time of 
     national emergency, the requirement for members of the 
     Selected Reserve enrolled in the TRICARE dental insurance 
     program to pay copayments for restorative care necessary to 
     meet dental readiness standards, in order to facilitate 
     readiness of a unit or individual scheduled for deployment. 
     Finally, the provision would require the Secretary of Defense 
     to submit a report on the policies and procedures to ensure 
     medical and dental readiness of service members.
       The agreement includes the Senate provision with an 
     amendment that would clarify that waivers of charges 
     determined necessary by the Secretary to ensure the readiness 
     of a unit or individual for deployment should be subject to 
     regulation and limited to dental services required for 
     readiness.
       We remind the Department of Defense that readiness includes 
     not only pre-deployment medical and dental work necessary to 
     make the member deployable, but also post-deployment medical 
     and dental care to bring the member back up to readiness 
     standards after they return from a long absence, where such 
     medical and dental care may not have been available.


                   Legislative Provisions Not Adopted

     Prohibition on conversion of military medical and dental 
         positions to civilian medical and dental positions
       The House bill contained a provision (sec. 703) that would 
     prohibit the military departments from converting any 
     military medical or dental position to a civilian medical or 
     dental position on or after October 1, 2008. This provision 
     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 Senate bill contained a provision (sec. 721) that would 
     repeal subsection (a) of section 721 of the National Defense 
     Authorization Act for Fiscal Year 2008 (Public Law 110-181), 
     which prohibits the military departments from converting any 
     military medical or dental position through September 30, 
     2012. The provision would also restore subsections (a) and 
     (b) of section 742 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364), 
     which requires certification by the secretary of a military 
     department that any planned conversion will not increase the 
     cost or decrease the quality of care or access to military 
     health care, and requires a review by the Comptroller General 
     of these certifications. The provision would keep the 
     requirement set forth in subsection (b) of section 721 of 
     Public Law 110-181 requiring the military departments to 
     restore any positions converted between October 1, 2004, and 
     September 30, 2008, that have not yet been filled by a 
     civilian back to military positions.
       The agreement does not include these provisions.
     Reserve component behavioral health care provider locator and 
         appointment assistance demonstration project
       The House bill contained a provision (sec. 708) that would 
     require the Secretary of Defense to conduct a demonstration 
     project to assess the feasibility and efficacy of providing a 
     behavioral health care provider locator and appointment 
     assistance service to members of the reserve components, and 
     to submit reports on this demonstration project.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Travel for anesthesia services for childbirth for dependents 
         of members assigned to very remote locations outside the 
         continental United States
       The Senate bill contained a provision (sec. 713) that would 
     authorize the Secretary of Defense to pay travel expenses for 
     a dependent of a service member assigned to a very remote 
     location outside the continental United States who requires 
     or elects anesthesia services for childbirth to a location in 
     the United States.
       The House bill contained no similar provision.
       The agreement did not include the Senate provision.
     National Casualty Care Research Center
       The House bill contained a provision (sec. 723) that would 
     require the Secretary of Defense to designate a National 
     Casualty Care Research Center at the Army Medical Research 
     and Materiel Command, for the purpose of establishing 
     additional linkages between military and civilian casualty 
     research.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Review of policies and processes related to the delivery of 
         mail to wounded members of the armed forces
       The House bill contained a provision (sec. 725) that would 
     require the Secretary of Defense to review the policies and 
     processes related to the delivery of letters, packages, 
     messages, and other communications that are intended as 
     measures of support and are addressed generally to wounded 
     and injured members of the armed forces in military medical 
     treatment facilities and other locations where members of the 
     armed forces are treated and rehabilitated.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Post-deployment mental health screening demonstration project
       The House bill contained a provision (sec. 726) that would 
     require the Secretary of Defense to conduct a demonstration 
     project to assess the feasibility and efficacy of providing a 
     face to face post-deployment mental health screening between 
     a service member and a mental health provider.
       The Senate bill contained no similar provision.
       The agreement does not include this provision.
     Report on stipend for members of reserve components for 
         health care for certain dependents
       The House bill contained a provision (sec. 731) that would 
     require the Secretary of Defense to submit a report on the 
     extent to which the Secretary has exercised the authority 
     provided in section 704 of the National Defense Authorization 
     Act for Fiscal Year 2008 (Public Law 110-181).
       The Senate bill contained no similar provision.
       The agreement does not include this provision.
     Report on implementation of recommendations contained in 
         report on health effects of exposure to depleted uranium
       The House bill contained a provision (sec. 734) that would 
     direct the Secretary of Defense to submit a report to 
     Congress describing the measures underway to implement the 
     report required by section 716 of the John Warner National 
     Defense Authorization Act for Fiscal Year 2007 (Public Law 
     109-364).
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.
     Implementation of recommendations of Department of Defense 
         Mental Health Task Force
       The House bill contained a provision (sec. 736) that would 
     require the Comptroller General of the United States to 
     conduct a review of the implementation by the Department of 
     Defense of the recommendations made by the Department of 
     Defense Task Force on Mental Health.
       The Senate bill contained no similar provision.

[[Page 20563]]

       The agreement does not include the provision.
     Inclusion of service members in inpatient status in wounded 
         warrior policies and protections
       The Senate bill contained a provision (sec. 1062) that 
     would amend section 1602(7) of the Wounded Warrior Act (title 
     XVI of the National Defense Authorization Act for Fiscal Year 
     2008 (Public Law 110-181)) to include inpatient service 
     members in the definition of a ``recovering service member'' 
     for purposes of policies and protections for wounded 
     warriors.
       The House bill contained no similar provision.
       The agreement does not include this provision.
     Clarification of certain information sharing between the 
         Department of Defense and Department of Veterans Affairs 
         for wounded warrior purposes
       The Senate bill contained a provision (sec. 1063) that 
     would amend section 1614(b)(11) of the Wounded Warrior Act 
     (title XVI of the National Defense Authorization Act for 
     Fiscal Year 2008 (Public Law 110-181)) to require the 
     Secretary of Defense and the Secretary of Veterans Affairs to 
     implement a process for transferring medical records of a 
     recovering service member from the Department of Defense to 
     the Department of Veterans Affairs when the transfer is 
     authorized by regulations implementing the Health Insurance 
     Portability and Accountability Act of 1996.
       The House bill contained no similar provision.
       The agreement does not include the provision.

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

             Subtitle A--Acquisition Policy and Management

     Assessment of urgent operational needs fulfillment (sec. 801)
       The House bill contained a provision (sec. 802) that would 
     require the Secretary of Defense to commission an independent 
     study and report on the effectiveness of the processes used 
     by the Department of Defense to identify, prioritize, and 
     meet urgent operational needs.
       The Senate bill contained a provision (sec. 813) that would 
     require the expedited review and validation of urgent 
     operational needs documents.
       The agreement includes the House provision with an 
     amendment that would require the independent study and report 
     to make specific recommendations as to how to ensure the 
     expedited review and validation of urgent operational needs 
     documents.
     Implementation of statutory requirements regarding the 
         national technology and industrial base (sec. 802)
       The House bill contained a provision (sec. 805) that would 
     authorize the Secretary of Defense to provide for the 
     application of a domestic industrial base evaluation factor 
     during source selection for a major defense acquisition 
     program.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment requiring the Secretary of Defense to issue 
     guidance regarding the implementation of certain existing 
     statutory requirements regarding the national technology and 
     industrial base. We understand that the Department of Defense 
     currently meets the requirement of section 2440, United 
     States Code, by conducting industrial capabilities 
     assessments.
     Commercial software reuse preference (sec. 803)
       The House bill contained a provision (sec. 806) that would 
     require the Secretary of Defense to ensure that contracting 
     officials reuse commercial computer software, whenever 
     practicable, instead of developing new software.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment requiring the Secretary to ensure that contracting 
     officials reuse commercial or off-the-shelf software, 
     whenever practicable, instead of developing new software.
     Internal controls for procurements on behalf of the 
         Department of Defense by certain non-defense agencies 
         (sec. 804)
       The Senate bill contained a provision (sec. 811) that would 
     modify requirements adopted in previous years for the 
     Inspector General of the Department of Defense (DOD) to 
     conduct joint reviews with the inspectors general of non-
     defense agencies to determine whether procurements conducted 
     by the non-defense agencies on behalf of DOD have been 
     conducted in compliance with defense procurement 
     requirements.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment streamlining the provision.

 Subtitle B--Provisions Relating to Major Defense Acquisition Programs

     Inclusion of major subprograms to major defense acquisition 
         programs under acquisition reporting requirements (sec. 
         811)
       The Senate bill contained a provision (sec. 801) that would 
     address the inclusion of certain information on major 
     subprograms in reports issued in accordance with the 
     requirements of chapter 144 of title 10, United States Code.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with a 
     technical amendment.
     Inclusion of certain major information technology investments 
         in acquisition oversight authorities for major automated 
         information system programs (sec. 812)
       The Senate bill contained a provision (sec. 802) that would 
     extend reporting requirements for major automated information 
     system programs to cover certain other major automated 
     information technology investments.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with a 
     clarifying amendment.
     Transfer of sections of title 10 relating to milestone A and 
         milestone B for clarity (sec. 813)
       The House bill contained a provision (sec. 843) that would 
     reverse sections of title 10 relating to milestone A and 
     milestone B.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment making technical changes to the requirement for 
     milestone A certifications.
     Configuration Steering Boards for cost control under major 
         defense acquisition programs (sec. 814)
       The House bill contained a provision (sec. 846) that would 
     require the Secretary of Defense to report to Congress on 
     certain major defense acquisition programs and to establish 
     Configuration Steering Boards (CSBs) for such programs.
       The Senate bill contained a provision (sec. 803) that would 
     require the Secretary to establish CSBs for all major defense 
     acquisition programs.
       The agreement includes the Senate provision with an 
     amendment modifying the membership of CSBs and adding a new 
     restriction on certain changes to programs receiving 
     Milestone B approval during fiscal year 2008.
     Preservation of tooling for major defense acquisition 
         programs (sec. 815)
       The House bill contained a provision (sec. 803) that would 
     require the preservation of all unique tooling associated 
     with the production of hardware for a major defense 
     acquisition program.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would streamline the requirement and the 
     waiver authority, to clarify that the Secretary of Defense 
     may waive the requirement to preserve unique production 
     tooling, or any category of unique production tooling, if he 
     determines that such a waiver is in the best interest of the 
     Department of Defense and so notifies Congress. We note that 
     the Secretary may delegate this authority, as he may delegate 
     any authority provided to him by statute.

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

     Definition of system for defense acquisition challenge 
         program (sec. 821)
       The House bill contained a provision (sec. 812) that would 
     clarify the meaning of the term ``system'' for the purpose of 
     the defense acquisition challenge program.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Technical data rights (sec. 822)
       The House bill contained a provision (sec. 814) that would 
     require the Secretary of Defense to issue policy guidance on 
     technical data rights in non-Federal Acquisition Regulation 
     agreements.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment providing the Secretary greater flexibility in the 
     drafting of the new guidance.
     Revision to the application of cost accounting standards 
         (sec. 823)
       The House bill contained a provision (sec. 815) that would 
     make the cost accounting standards apply to certain federal 
     contracts performed outside the United States.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment requiring the Cost Accounting Standards Board to 
     study the issue and determine whether the application of the 
     standards to contracts or subcontracts outside the United 
     States would benefit the Federal Government.
     Modification and extension of pilot program for transition to 
         follow-on contracts under authority to carry out certain 
         prototype projects (sec. 824)
       The Senate bill contained a provision (sec. 822) that would 
     extend for 4 years the authority for the Secretary of Defense 
     to carry out a pilot program under section 847 of the 
     National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136), and modify such authority.

[[Page 20564]]

       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment extending the authority for 2 years. We direct the 
     Secretary of Defense to report to the congressional defense 
     committees not later than 270 days after the date of the 
     enactment of this Act on the extent to which such authority 
     has been used and, if it has not been used, whether 
     modifications are needed to achieve the purpose of the 
     provision.
     Clarification of status of Government rights in designs of 
         Department of Defense vessels, boats, craft, and 
         components thereof (sec. 825)
       The House bill contained a provision (sec. 841) that would 
     clarify government rights in the designs of Department of 
     Defense vessels, boats, and craft, and components of such 
     vessels, boats, and craft.
       The Senate bill contained a similar provision (sec. 1011).
       The agreement includes the Senate provision with an 
     amendment to address designs of all Department of Defense 
     vessels, boats, craft, and components, regardless whether 
     they are developed at public or private expense.

Subtitle D--Provisions Relating to Acquisition Workforce and Inherently 
                         Governmental Functions

     Development of guidance on personal services contracts (sec. 
         831)
       The House bill contained a provision (sec. 822) that would 
     require the Secretary of Defense to develop guidance and 
     safeguards for the use of personal services contracts by the 
     Department of Defense.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment cross-referencing the definition of personal 
     services contracts in section 2330(a) of title 10, United 
     States Code.
     Sense of Congress on the performance by private security 
         contractors of certain functions in an area of combat 
         operations (sec. 832)
       The House bill contained a provision (sec. 824) that would 
     require the Secretary of Defense to modify existing 
     regulations to ensure that private security contractors are 
     not authorized to perform inherently governmental functions 
     in an area of combat operations.
       The Senate bill contained a similar provision (sec. 841) 
     that would also specify certain functions that constitute 
     inherently governmental functions when performed in highly 
     hazardous public areas.
       The agreement includes a provision that expresses the Sense 
     of Congress with regard to the performance of certain 
     functions by private security contractors in an area of 
     combat operations.
     Acquisition workforce expedited hiring authority (sec. 833)
       The House bill contained a provision (sec. 811) that would 
     authorize the Department of Defense to use direct hiring 
     authority for acquisition positions designated by the 
     Secretary of Defense as shortage positions.
       The Senate bill contained a similar provision (sec. 851).
       The agreement includes the House provision.
     Career path and other requirements for military personnel in 
         the acquisition field (sec. 834)
       The House bill contained a provision (sec. 813) that would 
     require the Department of Defense to establish policies and 
     issue guidance to ensure the proper development, assignment, 
     and employment of military personnel in the acquisition 
     field.
       The Senate bill contained a provision (sec. 502(e)) that 
     would establish minimum numbers of billets for general 
     officers and flag officers serving in acquisition positions 
     and in contracting positions in the military departments.
       The agreement includes the House provision with an 
     amendment that would require the Secretary of Defense to 
     ensure that a sufficient number of acquisition and 
     contracting billets are reserved for general and flag 
     officers with appropriate qualifications to ensure the 
     optimum management of the acquisition functions of the 
     Department of Defense. Elsewhere in the bill, we would 
     increase the authorized number of Army general officers 
     serving in acquisition positions by five, and authorize the 
     Chairman of the Joint Chiefs of Staff to exclude from 
     limitations on flag and general officers an additional five 
     positions, one of whom must be assigned to the Defense 
     Contract Management Agency.

          Subtitle E--Department of Defense Contractor Matters

     Ethics safeguards related to conflicts of interest (sec. 841)
       The House bill contained a provision (sec. 821) that would 
     require the Department of Defense to develop a standard 
     policy aimed at preventing personal conflicts of interest by 
     employees of Department of Defense contractors and implement 
     that policy through a standard contract clause.
       The House bill also contained a provision (sec. 4404) that 
     would require the Administrator for Federal Procurement 
     Policy to establish uniform, government-wide policies for the 
     prevention of personal and organizational conflicts of 
     interest by contractors and their employees and to implement 
     those policies through a standard clause or a set of standard 
     clauses.
       The Senate bill contained a similar provision (sec. 832) 
     that would require the Department of Defense to develop a 
     contract clause addressing financial conflicts of interest of 
     certain contractor employees.
       The agreement includes a provision that would combine the 
     requirements of the three provisions into a single, 
     government-wide provision. The provision would require the 
     development of a government-wide policy and a standard clause 
     or set of clauses regarding personal conflicts of interest by 
     contractor employees performing acquisition functions closely 
     associated with inherently governmental functions. The 
     provision would also require the Administrator for Federal 
     Procurement Policy to consider any additional revisions to 
     the Federal Acquisition Regulation that may be necessary to 
     address personal or organizational conflicts of interest by 
     contractors or their employees.
       We note that the Department of Defense Panel on Contracting 
     Integrity is also reviewing these issues and expect the Panel 
     to continue that review.
     Information for Department of Defense contractor employees on 
         their whistleblower rights (sec. 842)
       The Senate bill contained a provision (sec. 833) that would 
     require the Secretary of Defense to prescribe in regulations 
     a policy for informing Department of Defense (DOD) contractor 
     employees of whistleblower rights and protections.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment requiring the Secretary to ensure that DOD 
     contractor employees are informed of their whistleblower 
     rights and protections.
     Requirement for Department of Defense to adopt an acquisition 
         strategy for Defense Base Act insurance (sec. 843)
       The House bill contained a provision (sec. 850) that would 
     require the Secretary of Defense to adopt an acquisition 
     strategy for insurance required by the Defense Base Act 
     (section 1651 of title 42, United States Code) which 
     minimizes the cost of such insurance to the Department and 
     its contractors.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Report on use of off-shore subsidiaries by defense 
         contractors (sec. 844)
       The House bill contained a provision (sec. 852) that would 
     prohibit contractors from using foreign shell companies to 
     employ United States persons to perform Department of Defense 
     contracts.
       The Senate bill contained a provision (sec. 823) that would 
     ensure that an offeror for a Department of Defense contract 
     cannot receive a competitive advantage by reducing costs 
     through the use of overseas subsidiaries to avoid U.S. taxes.
       The agreement includes the House provision with an 
     amendment requiring a report by the Comptroller General on 
     the use of foreign shell companies by Department of Defense 
     contractors. We note that the tax issue has already been 
     addressed in section 302 of Public Law 110-245.
     Defense industrial security (sec. 845)
       The House bill contained a series of provisions (sec. 831-
     833) that would codify certain requirements regarding 
     facility clearances; foreign ownership, control and 
     influence; and congressional oversight of these requirements.
       The Senate bill contained no similar provision.
       The agreement includes a provision that would make the 
     Secretary of Defense responsible for the protection of 
     classified information disclosed to contractors of the 
     Department of Defense and require certain reports on the 
     manner in which the Secretary carries out this 
     responsibility.

          Subtitle F--Matters Relating to Iraq and Afghanistan

     Clarification and modification of authorities relating to the 
         Commission on Wartime Contracting in Iraq and Afghanistan 
         (sec. 851)
       The Senate bill contained a provision (sec. 843) that would 
     ensure that federal retirees serving as members or staff of 
     the Commission on Wartime Contracting in Iraq and Afghanistan 
     may be paid for their work without forfeiting retired pay.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Comprehensive audit of spare parts purchases and depot 
         overhaul and maintenance of equipment for operations in 
         Iraq and Afghanistan (sec. 852)
       The Senate bill contained a provision (sec. 844) that would 
     require the audit agencies of the military departments to 
     conduct thorough audits of spare parts purchases and depot 
     overhaul and maintenance of equipment for operations in Iraq 
     and Afghanistan.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would clarify

[[Page 20565]]

     that this provision may not be construed to require the 
     duplication of audit work that has already been performed by 
     Department of Defense audit agencies.
     Additional matters required to be reported by contractors 
         performing security functions in areas of combat 
         operations (sec. 853)
       The House bill contained a provision (sec. 847) that would 
     amend section 862 of the National Defense Authorization Act 
     for Fiscal Year 2008 (Public Law 110-181) to expand the 
     categories of incidents that must be reported by private 
     security contractors operating in areas of combat operations.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment reemphasizing the requirement for contractors of 
     all federal agencies, pursuant to section 862 of the National 
     Defense Authorization Act for Fiscal Year 2008 (Public Law 
     110-181), to comply with regulations prescribed by the 
     Secretary of Defense, other applicable laws and regulations, 
     and orders and directives issued by commanders on the 
     battlefield.
     Additional contractor requirements and responsibilities 
         relating to alleged crimes by or against contractor 
         personnel in Iraq and Afghanistan (sec. 854)
       The House bill contained a provision (sec. 849) that would 
     require the Secretary of Defense to require the reporting of 
     crimes against contractor personnel in Iraq and Afghanistan 
     and to ensure that the victims of such crimes receive 
     appropriate assistance.
       The Senate bill contained a similar provision (sec. 842). 
     The Senate provision would amend section 861 of the National 
     Defense Authorization Act for Fiscal Year 2008 (Public Law 
     110-181) to ensure that reporting and victim assistance 
     requirements would apply to contractors of all federal 
     agencies.
       The agreement includes the Senate provision with an 
     amendment combining the reporting and assistance requirements 
     of the two provisions.
     Suspension of statutes of limitations when Congress 
         authorizes the use of military force (sec. 855)
       The Senate bill contained a provision (sec. 1083) that 
     would amend the wartime suspension of the statute of 
     limitations in section 3287 of title 18, United States Code, 
     to apply in cases where Congress has enacted a specific 
     authorization for the use of the armed forces.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.

          Subtitle G--Governmentwide Acquisition Improvements

     Short title (sec. 861)
       The House bill contained a provision (sec. 4001) that would 
     provide a short title for Division D of the House bill.
       The Senate bill contained no similar provision.
       The agreement includes a provision that would provide a 
     short title for the government-wide acquisition subtitle of 
     Title VIII.
     Limitation on length of certain noncompetitive contracts 
         (sec. 862)
       The House bill contained a provision (sec. 4102) that would 
     limit the length of contracts entered on a noncompetitive 
     basis because of urgent and compelling circumstances.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would limit such contracts to a period of no 
     longer than one year and apply the limitation to contracts in 
     excess of the simplified acquisition threshold.
     Requirements for purchase of property and services pursuant 
         to multiple award contracts (sec. 863)
       The House bill contained a provision (sec. 4103) that 
     would: (1) extend on a government-wide basis certain 
     requirements already applicable to the Department of Defense 
     for purchases under multiple award contracts; and (2) 
     establish public notice requirements for sole source purchase 
     under such contracts.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a technical 
     amendment.
     Regulations on the use of cost-reimbursement contracts (sec. 
         864)
       The House bill contained a provision (sec. 4201) that would 
     require the issuance of government-wide regulations to 
     minimize the inappropriate use of cost-reimbursement 
     contracts.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would streamline reporting requirements and 
     simplify the provision.
     Preventing the abuse of interagency contracts (sec. 865)
       The House bill contained a provision (sec. 4202) that would 
     require the Office of Management and Budget to establish 
     guidelines for the use of interagency acquisitions.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Limitations on tiering of subcontractors (sec. 866)
       The House bill contained a provision (sec. 4204) that would 
     extend on a government-wide basis certain regulatory 
     requirements already applicable to the Department of Defense 
     with respect to excessive pass-through charges on contracts.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Linking of award and incentive fees to acquisition outcomes 
         (sec. 867)
       The House bill contained a provision (sec. 4205) that would 
     extend on a government-wide basis certain requirements 
     already applicable to the Department of Defense regarding the 
     linking of award and incentive fees to acquisition outcomes.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment clarifying that the Department of Defense will 
     continue to be subject to guidance on award and incentive 
     fees issued pursuant to section 814 of the John Warner 
     National Defense Authorization Act for Fiscal Year 2007 
     (Public Law 109-364).
     Minimizing abuse of commercial services item authority (sec. 
         868)
       The House bill contained a provision (sec. 4206) that would 
     extend on a government-wide basis certain regulatory 
     requirements already applicable to the Department of Defense 
     with respect to: (1) the purchase of commercial services; and 
     (2) the use of time and materials contracts.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment deleting the requirement with respect to time and 
     materials contracts.
     Acquisition workforce development strategic plan (sec. 869)
       The House bill contained a provision (sec. 4301) that would 
     establish an acquisition workforce development fund for 
     civilian agencies, similar to the fund already in place for 
     the Department of Defense.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment requiring the Administrator for Federal Procurement 
     Policy to develop a strategic plan for funding improvements 
     to support the development of the civilian acquisition 
     workforce.
     Contingency contracting corps (sec. 870)
       The House bill contained a provision (sec. 4302) that would 
     establish a government-wide contingency contracting corps.
       The Senate bill contained a provision (sec. 812) that would 
     establish a contingency contracting corps within the 
     Department of Defense (DOD).
       The agreement includes the House provision with an 
     amendment that would ensure that members of the Armed Forces 
     or DOD civilian employees who are members of the government-
     wide contingency contracting corps may not be deployed 
     without the concurrence of the Secretary of Defense or the 
     Secretary's designee. The provision would also preserve the 
     independent authority of the Secretary of Defense to deploy 
     members of the Armed Forces or DOD civilian employees, 
     including members of the government-wide contingency 
     contracting corps, in support of a contingency operation, as 
     defined in section 101(o)(13) of title 10, United States 
     Code.
     Access of Government Accountability Office to contractor 
         employees (sec. 871)
       The House bill contained a provision (sec. 4403) that would 
     ensure that the Government Accountability Office has access 
     to contractor employees for the purpose of conducting 
     interviews.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Database for federal agency contract and grant officers and 
         suspension and debarment officials (sec. 872)
       The House bill contained a series of provisions (sec. 4502-
     4504) that would require the establishment of a government-
     wide database of information regarding integrity and 
     performance of persons awarded federal contracts and grants.
       The Senate bill contained a provision (sec. 831), which 
     would require the establishment of a database of information 
     regarding the integrity and performance of persons awarded 
     Department of Defense contracts.
       The agreement includes the Senate provision with an 
     amendment that would require the establishment of a 
     government-wide database and making certain clarifying 
     changes.
     Role of interagency committee on debarment and suspension 
         (sec. 873)
       The House bill contained a provision (sec. 4505) that would 
     establish requirements for the Interagency Committee on 
     Debarment and Suspension.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.

[[Page 20566]]


     Improvements to the Federal Procurement Data System (sec. 
         874)
       The House bill contained a provision (sec. 4509) that would 
     require the Director of the Office of Management and Budget 
     to direct appropriate revisions to the Federal Procurement 
     Data System to facilitate the collection of complete, timely, 
     and reliable data on interagency contracting actions and on 
     other transactions.
       The House bill also contained a provision (sec. 4508) that 
     would require the Administrator of General Services to make 
     recommendations to Congress on steps needed to create a 
     centralized, comprehensive federal contracting and federal 
     grant database.
       The Senate bill contained no similar provisions.
       The agreement includes the House provisions with an 
     amendment that would combine them into a single section.

                       Subtitle H--Other Matters

     Expansion of authority to retain fees from licensing of 
         intellectual property (sec. 881)
       The House bill contained a provision (sec. 842) that would 
     clarify the authority for the Department of Defense and the 
     Department of Homeland Security to retain fees from licensing 
     of intellectual property.
       The Senate bill contained a similar provision (sec. 852) 
     applicable only to the Department of Defense.
       The agreement includes the House provision.
     Report on market research (sec. 882)
       The House bill contained a provision (sec. 845) that would 
     require the Secretary of Defense to submit a report to 
     Congress on market research conducted by the Department of 
     Defense (DOD) to identify commercial or nondevelopmental 
     items that could meet DOD needs.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment streamlining the reporting requirement.
     Report relating to munitions (sec. 883)
       The House bill contained a provision (sec. 848) that would 
     require the Secretary of Defense to report to the 
     congressional defense committees justifying any decision to 
     procure certain categories of ammunition from non-domestic 
     sources and providing a plan to develop a domestic producer 
     as the source for such ammunition by 2012.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment deleting the requirement that the report include a 
     plan to develop a domestic producer for the covered 
     categories of ammunition.
     Motor carrier fuel surcharges (sec. 884)
       The House bill contained a provision (sec. 851) that would 
     require that motor carriers: (1) pass on the amount of all 
     fuel surcharges to the person who bears the cost of such 
     fuel; and (2) make the amount of any fuel-related adjustment 
     publicly available on the internet.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require that: (1) the Secretary of 
     Defense take appropriate steps to ensure that, to the maximum 
     extent practicable, fuel-related adjustments are passed 
     through to the person who bears the cost of the fuel; (2) the 
     steps taken by the Secretary include the use of contract 
     clauses in contracts providing for fuel-related adjustments; 
     and (3) the Secretary publicly disclose any decision by the 
     Department of Defense to pay fuel-related adjustments under 
     such contracts (or a category of such contracts).
     Procurement by State and local governments of equipment for 
         homeland security and emergency response activities 
         through the Department of Defense (sec. 885)
       The Senate bill contained a provision (sec. 1031) that 
     would amend section 381 of title 10, United States Code, to 
     authorize the State and local governments to purchase 
     specialized homeland security and emergency response 
     equipment through the Department of Defense.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Review of impact of covered subsidies on acquisition of KC-45 
         aircraft (sec. 886)
       The House bill contained a provision (sec. 801) that would 
     require the Secretary of the Air Force to review a ruling by 
     the World Trade Organization (WTO) regarding subsidies to a 
     manufacturer of large commercial aircraft, including a notice 
     and comment process, and take certain actions on the basis of 
     such review.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the Secretary of Defense to 
     review the subsidies issue upon a ruling by the WTO, in 
     consultation with certain other officials and experts without 
     notice and public comment or the requirement to take any 
     action on the basis of the review.
     Report on the implementation of earned value management at 
         the Department of Defense (sec. 887)
       The House bill contained a provision (sec. 844) that would 
     require the Secretary of Defense to study and report to 
     Congress on the implementation of earned value management 
     systems by the Department of Defense and its contractors.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment extending the deadline for the completion of the 
     study and report.


                   Legislative Provisions Not Adopted

     Authorization of appropriations
       The House bill contained a provision (sec. 4507) that would 
     authorize funds for the Administrator of General Services to 
     establish a database of information regarding integrity and 
     performance of federal contractors.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Authorization of independent agencies
       The House bill contained a provision (sec. 4506) that would 
     address the participation of independent agencies in the 
     suspension and debarment system.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Comprehensive proposal analysis required during source 
         selection
       The House bill contained a provision (sec. 807) that would 
     require the Secretary of Defense to provide for the 
     consideration of costs borne by a foreign government in the 
     evaluation of a proposal for a major defense acquisition 
     program, a significant portion of which will be performed 
     outside the United States.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Disclosure of CEO salaries
       The House bill contained a provision (sec. 4501) that would 
     require certain contractors to disclose the names and total 
     compensation of their five most highly compensated officers.
       The Senate bill contained no similar provision.
       The agreement does not include the provision. This issue 
     has already been addressed in section 6202 of the Fiscal Year 
     2008 Supplemental Appropriations Act (Public Law 110-252).
     Limitation on performance of product support integrator 
         functions
       The House bill contained a provision (sec. 823) that would 
     prohibit contractors from performing product support 
     integrator functions.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Mandatory fraud reporting
       The House bill contained a provision (sec. 4402) that would 
     require contractors to report violations of Federal criminal 
     law or overpayments in connection with the award of 
     performance of contracts.
       The Senate bill contained no similar provision.
       The agreement does not include the provision. This issue 
     has already been addressed in section 6102 of the Fiscal Year 
     2008 Supplemental Appropriations Act (Public Law 110-252).
     Minimizing sole-source contracts
       The House bill contained a provision (sec. 4101) that would 
     require federal agencies to develop and implement plans to 
     minimize, to the maximum extent practicable, the use of 
     contracts entered into using procedures other than 
     competitive procedures.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Multiyear procurement authority for the Department of Defense 
         for the purchase of alternative and synthetic fuels
       The Senate bill contained a provision (sec. 821) that would 
     authorize the Secretary of Defense to enter multiyear 
     contracts for the purchase of alternative and synthetic 
     fuels.
       The House bill contained no similar provision.
       The agreement does not include the provision.
     Prohibition on procurement from beneficiaries of foreign 
         subsidies
       The House bill contained a provision (sec. 804) that would 
     prohibit the Secretary of Defense for entering a contract for 
     the procurement of goods or services from any foreign person 
     whom the United States has alleged, in proceedings under the 
     Agreement on Subsidies and Countervailing Measures, to have 
     received a prohibited subsidy.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Prohibitions on the use of lead systems integrators
       The House bill contained a provision (sec. 4203) that would 
     prohibit the award of new

[[Page 20567]]

     contracts for lead systems integrator functions in the 
     acquisition of major systems.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Protection of contractor employees from reprisal for 
         disclosure of certain information
       The House bill contained a provision (sec. 4401) that would 
     provide enhanced protections for contractor employees of non-
     defense agencies who blow the whistle on waste, fraud and 
     abuse in government contracting.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Repeal of requirements relating to the military system 
         essential item breakout list
       The Senate bill contained a provision (sec. 853) that would 
     repeal section 813 of the National Defense Authorization Act 
     for Fiscal Year 2004 (Public Law 108-136).
       The House bill contained no similar provision.
       The agreement does not include the provision.
     Requirement to buy military decorations, ribbons, badges, 
         medals, insignia, and other uniform accoutrements 
         produced in the United States
       The House bill contained a provision (sec. 655) that would 
     require military exchange stores and other nonappropriated 
     fund entities of the Department of Defense (DOD) to purchase 
     military decorations, ribbons, badges, medals, insignia, and 
     other uniform accoutrements produced in the United States, 
     subject to certain exceptions.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
       We understand that contracts entered by DOD nonappropriated 
     fund entities for the purchase of military decorations, 
     awards and insignia include clauses requiring that such 
     decorations, awards and insignia be manufactured, assembled 
     and produced in the United States unless there are no U.S. 
     manufacturing sources available. We believe that the 
     Secretary of Defense should take steps, including periodic 
     audits, to ensure contractor compliance with the terms and 
     conditions of these contracts, including terms and conditions 
     relating to product quality, conformance with technical 
     specifications, and point of origin.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

     Plan required for personnel management of special operation 
         forces (sec. 901)
       The House bill contained a provision (sec. 903) that would 
     require the commander of the special operations command to 
     submit a plan to the congressional defense committees on the 
     personnel management of special operations forces.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment clarifying that the Commander of the United States 
     Special Operations Command shall submit the required report 
     to the Secretary of Defense, who shall provide that report to 
     the congressional defense committees together with any 
     additional comments the Secretary of Defense and the Chairman 
     of the Joint Chiefs of Staff consider appropriate.
     Director of Operational Energy Plans and Programs (sec. 902)
       The House bill contained a provision (sec. 904) that would 
     establish a Director for Operational Energy Plans and 
     Programs within the Office of the Secretary of Defense and 
     senior operational energy officials within each of the 
     military services.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Corrosion control and prevention executives for the military 
         departments (sec. 903)
       The House bill contained a provision (sec. 905) that would 
     require the Assistant Secretary of each military department 
     with responsibility for acquisition, technology, and 
     logistics to designate an employee of the military department 
     to act as the senior official to coordinate department-level 
     Corrosion Prevention and Control Program activities.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would make the annual report provided by the 
     corrosion control and prevention executives of the military 
     departments due to the Secretary of Defense by December 31 
     each year. We understand that the first report submitted by 
     the corrosion control and prevention executives would be 
     December 2009.
     Participation of Deputy Chief Management Officer of the 
         Department of Defense on Defense Business System 
         Management Committee (sec. 904)
       The House bill contained a provision (sec. 906) that would 
     clarify the role of the Deputy Chief Management Officer of 
     the Department of Defense.
       The Senate bill contained a similar provision (sec. 902).
       The agreement includes the Senate provision with a 
     clarifying amendment.
     Modification of status of Assistant to the Secretary of 
         Defense for Nuclear and Chemical and Biological Defense 
         Programs (sec. 905)
       The Senate bill contained a provision (sec. 901) that would 
     amend section 142 of title 10, United States Code, to clarify 
     that the Assistant to the Secretary of Defense for Nuclear 
     and Chemical and Biological Defense is equivalent to an 
     assistant secretary of defense.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Requirement for the Secretary of Defense to prepare a 
         strategic plan to enhance the role of the National Guard 
         and Reserves (sec. 906)
       The House bill contained a provision (sec. 907) that would 
     require the Secretary of Defense to develop a plan for 
     enhancing the roles of the National Guard and reserves, and 
     submit a report on that plan to the Committees on Armed 
     Services of the Senate and the House of Representatives by 
     April 1, 2009.
       The Senate bill contained a similar provision (sec. 1053).
       The agreement includes the House provision with a 
     clarifying amendment.
     General Counsel to the Inspector General of the Department of 
         Defense (sec. 907)
       The Senate bill contained a provision (sec. 904) that would 
     provide for a General Counsel to the Inspector General of the 
     Department of Defense who would report only to the Inspector 
     General.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Business transformation initiatives for the military 
         departments (sec. 908)
       The Senate bill contained a provision (sec. 906) that would 
     require the Secretary of each military department, acting 
     through the Chief Management Officer of such department, to 
     carry out a business transformation initiative. The provision 
     would also require each military department to establish an 
     Office of Business Transformation to assist the Chief 
     Management Officer in carrying out the initiative.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment extending the timelines for the initiative and 
     clarifying the responsibilities of the new Office of Business 
     Transformation.

                      Subtitle B--Space Activities

     Extension of authority for pilot program for provision of 
         space surveillance network services to entities outside 
         United States Government (sec. 911)
       The House bill contained a provision (sec. 911) that would 
     extend the authority to continue the pilot program to provide 
     network surveillance assistance to entities outside the U.S. 
     Government.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Investment and acquisition strategy for commercial satellite 
         capabilities (sec. 912)
       The House bill contained a provision (sec. 912) that would 
     require the Secretary of Defense to conduct an assessment to 
     determine a recommended investment and acquisition strategy 
     for a broad range of commercial satellite capabilities. The 
     report on the strategy would be due February 2009.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would modify the due date of the report to 
     February 1, 2010. The assessment would address fiscal years 
     after 2010.
     Space posture review (sec. 913)
       The Senate bill contained a provision (sec. 911) that would 
     direct the Secretary of Defense, in conjunction with the 
     Director of National Intelligence, to conduct a comprehensive 
     review of the space posture of the United States. The review 
     would cover a 10 year period beginning February 1, 2009. The 
     Secretary would be required to submit the report no later 
     than December 1, 2009.
       The House bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would add industrial base policy to the list 
     of policies for which the provision requires an assessment of 
     interrelationships.

             Subtitle C--Chemical Demilitarization Program

     Responsibilities for Chemical Demilitarization Citizens' 
         Advisory Commissions in Colorado and Kentucky (sec. 921)
       The House bill contained a provision (sec. 921) that would 
     require the Secretary of the Army to transfer responsibility 
     for the Chemical Demilitarization Citizens' Advisory 
     Commissions in Colorado and Kentucky to the Program Manager 
     for Assembled Chemical Weapons Alternatives.
       The Senate bill contained a similar provision (sec. 1431).

[[Page 20568]]

       The agreement includes the Senate provision with a 
     clarifying amendment.
     Cost-benefit analysis of future treatment of hydrolysate at 
         Pueblo Chemical Depot, Colorado (sec. 922)
       The House bill contained a provision (sec. 922) that would 
     prohibit the Department of Defense from transporting 
     hydrolysate from the Pueblo Chemical Depot, Colorado, to an 
     off-site location for treatment, storage, or disposal during 
     fiscal year 2009, and would require a report containing a 
     cost-benefit analysis between on-site and off-site methods of 
     disposing of such hydrolysate.
       The Senate bill contained no similar provision.
       The agreement includes a provision that would require the 
     Secretary of Defense to conduct a cost-benefit analysis of 
     future options for treatment and disposal of hydrolysate at 
     the Pueblo Chemical Depot, Colorado, and to submit a report 
     to Congress, together with the budget request for fiscal year 
     2010, containing the results of that analysis. The provision 
     would also require the Secretary to provide notification to 
     Congress 60 days prior to commencing any transport of 
     hydrolysate from the Pueblo Chemical Depot to an off-site 
     location during fiscal year 2009, if he decides to conduct 
     such transport after the report is submitted.

                Subtitle D--Intelligence-Related Matters

     Technical changes following the re-designation of National 
         Imagery and Mapping Agency as National Geospatial-
         Intelligence Agency (sec. 931)
       The House bill contained a provision (sec. 931) that would 
     make certain technical changes in the United States Code and 
     other laws to reflect the changing of the name of the 
     National Imagery and Mapping Agency to the National 
     Geospatial-Intelligence Agency.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Technical amendments to title 10, United States Code, arising 
         from enactment of the Intelligence Reform and Terrorism 
         Prevention Act of 2004 (sec. 932)
       The House bill contained a provision (sec. 932) that would 
     make certain technical changes in title 10, United States 
     Code, to reflect enactment of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (Public Law 108-458).
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Technical amendments relating to the Associate Director of 
         the CIA for Military Affairs (sec. 933)
       The House bill contained a provision (sec. 933) that would 
     change section 528(c) in title 10, United States Code, to 
     reflect changing of the title of the position within the 
     Central Intelligence Agency (CIA) from the Associate Director 
     of the CIA for Military Support, to the Associate Director of 
     the CIA for Military Affairs.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.

                       Subtitle E--Other Matters

     Enhancement of authorities relating to Department of Defense 
         regional centers for security studies (sec. 941)
       The House bill contained a provision (sec. 942) that would 
     amend section 184(f) of title 10, United States Code, to 
     allow funds authorized under that section to be available for 
     programs that begin in that fiscal year but end in the 
     following one, starting with fiscal year 2009. The provision 
     would also establish a pilot program providing temporary 
     authority for the Secretary of Defense, with the concurrence 
     of the Secretary of State, to waive reimbursement of certain 
     costs of activities of Regional Centers in connection with 
     the participation of personnel of nongovernmental or 
     international organizations in those activities. The 
     provision would also require the Secretary of Defense to 
     report on the extent of nongovernmental and international 
     organization participation in regional center programs.
       The Senate bill contained a similar provision (sec. 1212).
       The agreement includes the Senate provision.
     Restriction on obligation of funds for United States Southern 
         Command development assistance activities (sec. 942)
       The House bill contained a provision (sec. 944) that would 
     require that the Secretary of Defense, within 30 days after 
     the date of enactment of this Act, to submit to the 
     congressional defense committees a report describing the 
     development assistance activities carried out by the United 
     States Southern Command (SOUTHCOM) and containing a 
     certification that such activities: will not negatively 
     impact the readiness of SOUTHCOM; do not divert resources 
     from funded or unfunded requirements of SOUTHCOM; are not 
     already, or will not be, undertaken by other federal 
     departments or agencies; and are designed, planned, and 
     conducted as derivative activities of SOUTHCOM's warfighting 
     responsibilities under title 10 of the United States Code.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would increase the time permitted for the 
     Secretary of Defense to deliver the required report to the 
     Congressional defense committees to 120 days.
     Authorization of non-conventional assisted recovery 
         capabilities (sec. 943)
       The House bill contained a provision (sec. 945) that would 
     codify authority for Joint Forces Command to act as the 
     Executive Agent for the non-conventional assisted recovery 
     (NAR) capabilities and authorize the Department to develop a 
     personnel recovery program for isolated personnel 
     representing all parts of the U.S. Government.
       The Senate bill contained a similar provision (sec. 1207) 
     that would authorize the commander of a combatant command, 
     with the concurrence of the relevant chief of mission, to 
     expend funds in fiscal years 2009 and 2010 to establish, 
     develop, and maintain NAR capabilities in a foreign country 
     if the commander determines that expenditure of such funds 
     for that purpose is necessary.
       The agreement includes a provision that would authorize the 
     commander of a combatant command, with the concurrence of the 
     relevant chiefs of mission, to expend funds in fiscal years 
     2009 through 2011 to establish, develop, and maintain NAR 
     capabilities and would require a notification to the 
     congressional defense committees of the use of this authority 
     within 72 hours of a combatant commander exercising this 
     authority.
     Report on homeland defense and civil support issues (sec. 
         944)
       The House bill contained a provision (sec. 946) that would 
     require the Secretary of Defense to submit a report on 
     progress made to address concerns raised by the Government 
     Accountability Office (GAO) related to U.S. Northern Command, 
     and would require Northern Command to perform a number of 
     functions related to State and federal domestic response 
     planning, capabilities, and coordination.
       The Senate bill contained a related provision (sec. 905) 
     that would express the sense of the Congress concerning the 
     importance of establishing and assigning to U.S. Northern 
     Command forces for the mission of managing the consequences 
     of an incident in the United States homeland involving a 
     chemical, biological, radiological, or nuclear device, or 
     high-yield explosives (CBRNE). The provision would also 
     require reports on progress toward achieving that goal, 
     including progress in addressing concerns raised by GAO 
     related to U.S. Northern Command.
       The agreement includes a provision that would require the 
     Secretary of Defense to submit a report to the congressional 
     defense committees on progress made to address the concerns 
     raised by GAO related to U.S. Northern Command, including 
     improved coordination with other agencies, and on plans and 
     progress to establish CBRNE consequence management response 
     forces.
     Report on National Guard resource requirements (sec. 945)
       The House bill contained a provision (sec. 947) that would 
     require the Chief of the National Guard Bureau to submit to 
     the Secretary of Defense, not later than 6 months after the 
     date of enactment of this Act, a report on the effectiveness 
     of the implementation of the various provisions in title 
     XVIII of the National Defense Authorization Act for Fiscal 
     Year 2008 (Public Law 110-181) and assessing the adequacy of 
     Department of Defense funding for the resource requirements 
     of the National Guard. The Secretary of Defense would be 
     required to submit the report, with any explanatory comments 
     the Secretary considers necessary, to Congress not later than 
     30 days after the Secretary receives the report.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the Chief of the National Guard 
     Bureau to submit to the Secretary of Defense a report on the 
     extent to which the various provisions in title XVIII of the 
     National Defense Authorization Act for Fiscal Year 2008 
     (Public Law 110-181) have been effective in giving the Chief 
     of the National Guard Bureau the proper set of authorities 
     and resources to perform the responsibilities and duties of 
     the Chief.


                   Legislative Provisions Not Adopted

     Revisions in functions and activities of Special Operations 
         Command
       The House bill contained a provision (sec. 901) that would 
     revise the statutory authority governing special operations 
     activities.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Requirement to designate officials for irregular warfare
       The House bill contained a provision (sec. 902) that would 
     require the Secretary of Defense to designate an Assistant 
     Secretary of Defense to be responsible for overall management 
     and coordination of irregular warfare activities. The 
     provision would also require the establishment of a single 
     executive agent for such activities.

[[Page 20569]]

       The Senate bill contained no similar provision.
       The agreement does not contain this provision.
       We note that the Secretary of Defense has authorized a 
     review of the management and execution of both current and 
     future irregular warfare activities throughout the Department 
     of Defense. We understand that the Secretary will soon 
     approve a Department Directive pertaining to irregular 
     warfare activities. We applaud the review effort, await the 
     completion of the approval process, and direct the Secretary 
     to provide the results of that review to the congressional 
     defense committees no later than 30 days after approval.
     Redesignation of the Department of the Navy as the Department 
         of the Navy and Marine Corps
       The House bill contained a provision (sec. 908) that would 
     redesignate the Department of the Navy as the Department of 
     the Navy and Marine Corps and would redesignate the position 
     of the Secretary of the Navy as the Secretary of the Navy and 
     Marine Corps.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Support to committee to review
       The House bill contained a provision (sec. 909) that would 
     require the Secretary of Defense to provide certain 
     information to the House Committee on Armed Services within 
     15 days after receiving a request.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Requirement for certain officers of the armed forces on 
         active duty in certain intelligence positions
       The Senate bill contained a provision (sec. 921) that would 
     require that the principal deputy to the senior service 
     intelligence officer be a commissioned officer of the armed 
     forces on active duty.
       The House bill contained no similar provision.
       The agreement does not include the provision.
     Transfer of management of Intelligence Systems Support Office
       The Senate bill contained a provision (sec. 922) that would 
     transfer management of the Intelligence Systems Support 
     Office and other projects and activities currently conducted 
     by the Office of the Under Secretary of Defense for 
     Intelligence to other components of the Department of 
     Defense.
       The House bill contained no similar provision.
       The agreement does not include the provision.
     Program on advanced sensor applications
       The Senate amendment contained a provision (sec. 923) that 
     would transfer management oversight of the Advanced Sensor 
     Applications Program (ASAP) to the Under Secretary of Defense 
     for Acquisition, Technology and Logistics and mandate other 
     aspects of the management of the program.
       The House bill contained no similar provision.
       The Senate recedes.
       The Deputy Secretary of Defense sent a letter to the 
     congressional defense and intelligence committees, dated July 
     22, 2008, outlining certain changes in the Department's 
     position on the ASAP effort. The conferees agree that the 
     revised funding and management approach described in the 
     Deputy Secretary's letter should help ensure that the 
     Department abides by congressional intent without the need 
     for immediate legislative intervention.
       The conferees agree to authorize $20.0 million for the ASAP 
     program for fiscal year 2009.
       Additional direction on the ASAP program is contained in 
     the classified annex to this report.
     Findings and sense of Congress regarding the Western 
         Hemisphere Institute for Security Cooperation
       The House bill contained a provision (sec. 943) that would 
     express the sense of Congress that the Western Hemisphere 
     Institute for Security Cooperation is one of the most 
     effective mechanisms that the United States has to build 
     relationships with future leaders throughout the Western 
     Hemisphere, influence the human rights records and democracy 
     trajectory of countries in the Western Hemisphere, and 
     mitigate the growing influence of non-hemispheric powers.
       The Senate bill contained no similar provision.
       The agreement does not include this provision.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

     General Transfer authority (sec. 1001)
       The House bill contained a provision (sec. 1001) that would 
     allow the Secretary of Defense to make transfers between any 
     amounts of authorizations for fiscal year 2009 in division A 
     of this Act. This section would limit the total amount of 
     transferred under this authority to $4.0 billion. This 
     section would also require prompt notification to Congress of 
     each transfer made.
       The Senate bill contained a similar provision (sec. 1001) 
     that would provide $5.0 billion in transfer authority.
       The agreement provides for transfer authority of $4.2 
     billion.
     One-time shift of military retirement payments (sec. 1002)
       The House bill contained a provision (sec. 1004) that would 
     shift a portion of the military retirement payments disbursed 
     in September 2013 to October 2013. The provision would also 
     require the Secretary of Defense to transfer $40.0 million 
     from the National Defense Stockpile Transaction Fund.
       The Senate bill contained no similar provision.
       The agreement contains this provision.
     Management of purchase cards (sec. 1003)
       The House bill contained a provision (sec. 1005) that would 
     require new safeguards and internal controls for the use of 
     purchase cards by the Department of Defense.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the Secretary of Defense to 
     report to Congress on the steps that the Department of 
     Defense has taken or plans to take to implement the 
     recommendations of a Government Accountability Office report 
     on actions needed to strengthen internal controls for the use 
     of purchase cards (GAO report 08-333).
     Codification of recurring authority on United States 
         contributions to the North Atlantic Treaty Organization 
         common-funded budgets (sec. 1004)
       The Senate bill contained a provision (sec. 1003) that 
     would authorize the U.S. contribution to the North Atlantic 
     Treaty Organization (NATO) common-funded budgets for fiscal 
     year 2008, including the use of unexpended balances.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that provides permanent authority for amounts 
     contributed by the Secretary of Defense in any fiscal year 
     for the NATO common-funded budgets to exceed the maximum 
     amount that would otherwise be applicable under the fiscal 
     year 1998 baseline limitation set out in the Senate 
     resolution of ratification of the Protocols to the North 
     Atlantic Treaty of 1949 on the Accession of Poland, Hungary, 
     and the Czech Republic. The amendment also requires the 
     Secretary of Defense to report annually to Congress regarding 
     U.S. contributions to the NATO common-funded budgets.
     Incorporation of funding decisions into law (sec. 1005)
       The House bill contained a provision (sec. 1431) that would 
     state that Executive Order No. 13457 shall not apply to this 
     Act.
       The Senate bill contained a provision (sec. 1002) that 
     would incorporate the funding tables into the Act.
       The agreement includes the Senate provision with a 
     clarifying amendment that would incorporate the authorized 
     amounts in funding tables into the Act. For the purposes of 
     this provision, a funding table means a list of specific 
     programs, projects and activities, and the dollar amounts and 
     adjustments to budget activities corresponding to such 
     programs, projects, and activities, but does not include a 
     table included in the joint explanatory statement in 
     compliance with Rule XLIV of the Standing Rules of the Senate 
     or Rule XXI of the Rules of the House of Representatives.
       The Government Printing Office (GPO) has informed us that 
     incorporating the funding tables into bill language would add 
     3 full days to the time required to prepare a bill for floor 
     consideration, even if the GPO does not have other high 
     priority work to accomplish at the time. This delay is in 
     addition to the day and a half it would require for the 
     committee staff to prepare the funding tables in a form that 
     could be processed by GPO, and to ensure the accuracy of 
     GPO's work. With only 3 days left for the House and the 
     Senate to consider the bill before the scheduled end of this 
     year's session of Congress, we have determined that 
     incorporating the funding tables into bill language was not 
     an option that was available to us.

          Subtitle B--Policy Relating to Vessels and Shipyards

     Conveyance, Navy drydock, Aransas Pass, Texas (sec. 1011)
       The House bill contained a provision (sec. 1011) that would 
     authorize the Secretary of the Navy to convey the floating 
     drydock AFDL-23, located at Aransas Pass, Texas, to Gulf 
     Copper Ship Repair, the company currently leasing the drydock 
     from the Navy. The Secretary would be allowed to place such 
     terms and conditions on the transfer as he feels appropriate, 
     and the company would be required to compensate the Federal 
     Government for the fair market value of the drydock, as 
     determined by the Secretary.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Report on repair of naval vessels in foreign shipyards (sec. 
         1012)
       The House bill contained a provision (sec. 1012) that would 
     amend section 7310 of title

[[Page 20570]]

     10, United States Code, to require the Secretary of the Navy 
     to submit a report at least 30 days before conducting repair 
     work on any vessel in a shipyard outside the United States or 
     Guam.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the Secretary to provide a 
     report, with the submission of the President's budget, 
     regarding any ship repair work conducted on any vessel in a 
     shipyard outside the United States or Guam during the 
     previous year.
     Report on plan for disposal of certain vessels stricken from 
         the Naval Vessel Register (sec. 1013)
       The House bill contained a provision (sec. 1015) that would 
     require the Secretary of the Navy to submit a report within 
     30 days to the congressional defense committees on the 
     contribution of scrapping vessels larger than 50,000 tons 
     displacement to the domestic market for steel and other 
     metals.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would allow the Secretary 180 days to complete 
     the report.
     Reimbursement of expenses for certain Navy mess operations 
         (sec. 1014)
       The Senate bill contained a provision (sec. 1012) that 
     would authorize the Secretary of Defense to fund from agency 
     operating accounts the cost of meals on United States naval 
     and naval auxiliary vessels for non-military personnel. For 
     the purposes of this provision, this includes nongovernmental 
     organization and host and partner nation participants in 
     civil-military operations and foreign national patients 
     treated during the conduct of civil-military operations, as 
     well as their escorts.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would place an annual limit of $1.0 million on 
     such costs and would require an annual report on the 
     Department's use of this authority.
     Policy relating to major combatant vessels of the strike 
         forces of the United States Navy (sec. 1015)
       The House bill contained a provision (sec. 1013) that would 
     amend the section 1012(c)(1) of the National Defense 
     Authorization Act for Fiscal Year 2009 (Public Law 110-181) 
     to add all amphibious ships larger than 15,000 dead weight 
     ton light ship displacement to the definition of major 
     surface combatants in that section. Section 1012 stated that 
     it is the policy of the United States to construct major 
     surface combatants of the strike forces of the United States 
     with integrated nuclear power systems.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.

                  Subtitle C--Counter-Drug Activities

     Extension of reporting requirement regarding Department of 
         Defense expenditures to support foreign counter-drug 
         activities (sec. 1021)
       The House bill contained a provision (sec. 1021) that would 
     extend, by 1 year, the requirement for the Secretary of 
     Defense to submit a report detailing the expenditure of funds 
     by the Department during fiscal year 2008 in direct and 
     indirect support of the counterdrug activities of foreign 
     governments.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a technical 
     amendment.
     Extension of authority for joint task forces to provide 
         support to law enforcement agencies conducting counter-
         terrorism activities (sec. 1022)
       The House bill contained a provision (sec. 1022) that would 
     extend the authority provided in section 1022(b) of the 
     National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136), which expires at the end of fiscal year 
     2008, through fiscal year 2009. The current authority 
     provides that a joint task force of the Department of 
     Defense, which is providing support to law enforcement 
     agencies conducting counterdrug activities, may also provide, 
     subject to all applicable laws and regulations, these law 
     enforcement agencies with support for their counterterrorism 
     activities.
       The Senate bill contained a nearly identical provision 
     (sec.1021).
       The agreement includes the provision.
       The agreement directs the Deputy Assistant Secretary of 
     Defense for Counternarcotics, Counterproliferation and Global 
     Threats to provide an annual briefing about the use of this 
     authority to the congressional defense committees.
     Extension of authority to support unified counter-drug and 
         counterterrorism campaign in Colombia and continuation of 
         numerical limitation on assignment of United States 
         personnel (sec. 1023)
       The House bill contained a provision (sec. 1023) that would 
     extend the authority provided in section 1021 of the Ronald 
     W. Reagan National Defense Authorization Act for Fiscal Year 
     2005 (Public Law 108-375) to use counterdrug funds to support 
     the Government of Colombia's unified campaign against 
     narcotics cultivation and trafficking, and against terrorist 
     organizations involved in such drug trafficking activities 
     through fiscal year 2009.
       The Senate bill contained a nearly identical provision 
     (sec. 1022).
       The agreement includes the provision.
     Expansion and extension of authority to provide additional 
         support for counter-drug activities of certain foreign 
         governments (sec. 1024)
       The House bill contained a provision (sec. 1024) that would 
     extend by 1 fiscal year the duration of authority for 
     assistance under section 1033 of the National Defense 
     Authorization Act (NDAA) for Fiscal Year (FY) 1998 (Public 
     Law 105-85), as amended by section 1021 of the NDAA for FY 
     2004 (Public Law 108-136), section 1022 of the John Warner 
     NDAA for FY 2007 (Public Law 109-364), and section 1022 of 
     the NDAA for FY 2008 (Public Law 110-181); would expand the 
     list of countries that could qualify for assistance under 
     section 1033 to include three West African countries; and 
     would increase the funding limitation under section 1033 from 
     $60.0 million to $65.0 million for fiscal year 2009.
       The Senate bill contained no similar provision.
       The agreement includes a provision that would extend by one 
     fiscal year the duration of this authority; would expand the 
     list of countries that could qualify for assistance under 
     section 1033 to include: El Salvador, Guinea-Bissau, 
     Honduras, and Senegal; and would increase the funding 
     limitation under section 1033 from $60.0 million to $75.0 
     million for fiscal year 2009.
     Comprehensive Department of Defense strategy for counter-
         narcotics efforts for United States Africa Command (sec. 
         1025)
       The House bill contained a provision (sec. 1025) that would 
     require the Secretary of Defense, in consultation with the 
     Secretary of State, to prepare a counterdrug plan for all 
     eligible governments under section 1033 of the National 
     Defense Authorization Act for fiscal year 1998 (Public Law 
     105-85) for fiscal year 2009 and updates thereafter, as well 
     as a region-wide, counterdrug plan for Africa, with a special 
     emphasis on West Africa and the Maghreb.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would expand the scope of this reporting 
     requirement to include the remainder of the African 
     continent.
     Comprehensive Department of Defense strategy for counter-
         narcotics efforts in South and Central Asian regions 
         (sec. 1026)
       The House bill contained a provision (sec. 1026) that would 
     require the Secretary of Defense to submit a report to the 
     congressional defense committees that outlines the 
     Department's role, missions, objectives, and budget in 
     support of the overall U.S. Government counternarcotics 
     strategy and activities in the south and central Asian 
     regions and other geographically proximate countries.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment which would provide the Department with additional 
     time to complete the report, as well as a technical change.

         Subtitle D--Miscellaneous Authorities and Limitations

     Enhancement of the capacity of the United States Government 
         to conduct complex operations (sec. 1031)
       The Senate bill contained a provision (sec. 1032) that 
     would authorize the Secretary of Defense to establish a 
     Center for Complex Operations. The center would facilitate 
     the activities of a consortium composed of education and 
     training institutions from across the U.S. Government in 
     order to increase unity of effort in complex operations.
       The House bill contained no similar provision.
       The agreement contains the Senate provision with an 
     amendment clarifying that the Secretary of Defense will seek 
     the concurrence of the Secretary of State to the extent that 
     the activities of the Center involve foreign government or 
     militaries, international organizations or international 
     nongovernmental organizations.
     Crediting of admiralty claim receipts for damage to property 
         funded from a Department of Defense working capital fund 
         (sec. 1032)
       The Senate bill contained a provision (sec. 1033) that 
     would provide that payments received by the United States in 
     settlement of an admiralty claim for damage or loss to 
     property that is operated and maintained using monies from a 
     Department of Defense working capital fund account would be 
     credited to the working capital fund which was used to 
     operate and maintain the damaged or lost property.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.

[[Page 20571]]


     Minimum annual purchase requirement for charter air 
         transportation services from carriers participating in 
         the Civil Reserve Air Fleet (sec. 1033)
       The Senate bill contained a provision (sec. 1034) that 
     would authorize the Secretary of Defense to guarantee higher 
     minimum levels of business than are currently authorized by 
     law to United States air carriers participating in the Civil 
     Reserve Air Fleet (CRAF).
       The House bill contained no similar provision.
       The agreement includes the Senate provision, amended to 
     provide authority to the Secretary to guarantee minimum 
     levels of business to CRAF participants operating passenger 
     travel contracts only.
     Semi-annual reports on status of Navy Next Generation 
         Enterprise Networks (NGEN) program (sec. 1034)
       The Senate bill contained a provision (sec. 1035) that 
     would modify the termination date of the base contract for 
     the Navy-Marine Corps Intranet (NMCI) program.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment establish a semi-annual reporting requirement on 
     the Navy's transition between the NMCI and NGEN programs.
       The NGEN program represents one of the largest, farthest 
     reaching, and complex acquisition programs and technology 
     deployments for the Navy and Marine Corps in the next decade. 
     We note with concern the lack of planning and oversight that 
     the Department of Defense has dedicated to the requirements 
     generation, acquisition strategy development, outreach to 
     industry, contracting mechanisms, realistic testing, and 
     transition planning for the NGEN program. The lack of 
     transparency and dialogue with industry about the acquisition 
     strategy for NGEN and the planned transition of assets and 
     intellectual property currently associated with the NMCI 
     program is a continuing concern.
       The Secretary of Defense is directed to keep the 
     congressional defense committees well informed about the 
     development of acquisition and transition strategies for 
     NGEN. It is expected that the semi-annual reporting 
     requirement in this provision will provide an efficient 
     mechanism to support that dialogue.
     Sense of Congress on nuclear weapons management (sec. 1035)
       The Senate bill contained a provision (sec. 1038) that 
     would find that the unauthorized transfer of nuclear weapons 
     from Minot Air Force Base, North Dakota, to Barksdale Air 
     Force Base, Louisiana, in August 2007; the unauthorized 
     transfer of classified intercontinental ballistic missile 
     parts, discovered in March 2008; and a lack of training and 
     staffing for nuclear matters, demonstrate a lack of attention 
     by the Department of Defense (DOD) to nuclear issues in 
     general. In addition, the provision would set forth the sense 
     of Congress that safety and security of nuclear weapons and 
     related equipment should be a high priority for the United 
     States; that the President should take steps to nominate an 
     individual to fill the position of the Assistant to the 
     Secretary of Defense for Nuclear and Chemical and Biological 
     Defense Programs; and that the Secretary of Defense should 
     establish a senior position in the DOD Office of Policy at an 
     assistant secretarial or deputy under secretarial level with 
     responsibility for nuclear policy issues.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would add an additional finding to the 
     provision. The amendment would set forth the sense of the 
     Congress that maintaining the safety and security of nuclear 
     weapons would be more easily achieved if greater attention 
     were paid to the nuclear matters in the Offices of the 
     Secretary of Defense, the Under Secretary of Defense for 
     Policy and the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics. The amendment would also set forth 
     the sense of the Congress that the Secretary of Defense 
     should clarify lines of responsibility and accountability for 
     nuclear weapons matters.
     Sense of Congress on joint Department of Defense-Federal 
         Aviation Administration executive committee on conflict 
         and dispute resolution (sec. 1036)
       The Senate bill contained a provision (sec. 1039) that 
     would express the sense of the Congress that the Secretary of 
     Defense should seek an agreement with the Administrator of 
     the Federal Aviation Administration to establish a Joint 
     Executive Committee to serve as the focal point for dispute 
     resolution and policy development, and as a mechanism for 
     identifying solutions to a range of mutual issues.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Sense of Congress on sale of new outsize cargo, strategic 
         airlift aircraft for civilian use (sec. 1037)
       The Senate bill contained a provision (sec. 1040) that 
     would encourage the Secretary of Defense, in consultation 
     with the Secretary of Transportation, to: (1) review the 
     benefits and feasibility of pursuing new production of a 
     commercial C-17 variant to determine whether such capability 
     would be in the national interest; and (2) if he determines 
     it to be in the national interest, take appropriate action 
     with the Federal Aviation Administration to achieve type 
     certification of such aircraft.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with a 
     clarifying amendment.

                    Subtitle E--Studies and Reports

     Report on corrosion control and prevention (sec. 1041)
       The House bill contained a provision (sec. 1041) that would 
     require the Department of Defense, through the Office of 
     Corrosion Policy and Oversight, to provide a report to the 
     Senate Committee on Armed Services and the House Committee on 
     Armed Services by February 1, 2009, regarding the potential 
     for improvements in corrosion control and prevention in 
     weapons systems by planning for corrosion control and 
     prevention earlier in the system requirements and acquisition 
     processes.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would change the due date of the report to not 
     later than 120 days after the date of enactment of the Act.
     Study on using Modular Airborne Fire Fighting Systems (MAFFS) 
         in a Federal response to wildfires (sec. 1042)
       The House bill contained a provision (sec. 1042) that would 
     require the Secretary of Defense to carry out a study on how 
     to utilize the Department's Modular Airborne Fire Fighting 
     Systems (MAFFFS) in all contingencies where there is a 
     Federal response to wildfires, and how to decrease costs of 
     using MAFFS when supporting National Interagency Fire Center 
     fire fighting operations. The provision would require that 
     the Secretary submit that report to the congressional defense 
     committees within six months of the date of enactment of this 
     Act.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Study on rotorcraft survivability (sec. 1043)
       The House bill contained a provision (sec. 1043) that would 
     require the Secretary of Defense and the Chairman of the 
     Joint Chiefs of Staff to conduct a study on rotorcraft 
     survivability.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Report on nuclear weapons (sec. 1044)
       The House bill contained a provision (sec. 1045) that would 
     require the Secretary of Defense, in consultation with the 
     Secretary of State, the Secretary of Energy, and the Director 
     of National Intelligence, to conduct a review of nonstrategic 
     nuclear weapons world wide, and submit a report to Congress 
     setting forth the results of the review. The report would be 
     due 180 days after the date of enactment of this Act.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would modify the scope of the review. The 
     review would cover nuclear weapons world wide and include a 
     description of each country's nuclear weapons arsenal and an 
     assessment of the various risks associated with nuclear 
     weapons deemed to be attractive to terrorists, states, and 
     other non-state actors. For those weapons that are deemed to 
     be attractive to terrorists and state and non-state actors, 
     the review would also include recommendations on mechanisms 
     and procedures to improve the security of such weapons, 
     monitor and track such weapons, and identify options to 
     transparently and verifiably dismantle and dispose of such 
     weapons. The President shall submit a report that would be 
     due 1 year after the date of enactment of this Act. The 
     report shall be unclassified but may have a classified annex.
     Report on compliance by Department of Defense with Guam tax 
         and licensing laws (sec. 1045)
       The House bill contained a provision (sec. 1047) that would 
     require the Secretary of Defense to report to Congress on 
     steps the Department is taking to ensure that defense 
     contractors performing work on Guam comply with local tax and 
     licensing requirements.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment simplifying the reporting requirement.
     Report on detention operations in Iraq (sec. 1046)
       The Senate bill contained a provision (sec. 1052) that 
     would require the Secretary of Defense to submit a detailed 
     report to the congressional defense committees on detention 
     operations at theater internment facilities and reintegration 
     centers in Iraq. The Senate provision would require that the 
     report

[[Page 20572]]

     contain information on changes in detention policies and 
     procedures intended to incorporate counterinsurgency 
     doctrine, and a description of policies and programs to 
     prepare detainees for reintegration upon their release.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment clarifying the elements to be included as part of 
     the report. We note that the description of how 
     counterinsurgency doctrine has been incorporated at theater 
     internment facilities in Iraq should include the changes, if 
     any, to procedures for reviewing the detention status of 
     individuals under detention at such facilities.
     Review of bandwidth capacity requirements of the Department 
         of Defense and the intelligence community (sec. 1047)
       The Senate bill contained a provision (sec. 1055) that 
     would direct the Secretary of Defense and the Director of 
     National Intelligence to conduct a joint review of the 
     current and future bandwidth capacity requirements of the 
     Department of Defense and the intelligence community over the 
     next 10 years. The review would also include a discussion of 
     any mitigation concepts, including operational or technical 
     options that might be used to address bandwidth capacity 
     shortfalls. Not later than 1 year after the date of enactment 
     of this Act, the Secretary and the Director would be required 
     to submit a report setting forth the results of the review to 
     the congressional defense committees and the intelligence 
     committees of the Senate and the House of Representatives. 
     The Secretary and the Director should include and fully 
     address in the review all means by which bandwidth is 
     provided, including ground, aerial, and satellite options.
       The provision would also direct the Secretary and the 
     Director to establish a formal process, for each major 
     defense acquisition or major system acquisition program, to 
     ensure during the Milestone B or key decision point B phase 
     of the acquisition process, that the bandwidth requirements 
     of each such system can be met.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would expand the assessment of bandwidth 
     capacities and capabilities to include airborne relays and 
     expand the elements of the assessment to include technologies 
     that could increase data transport.
     Review of findings and recommendations applicable to the 
         Department of Defense regarding electromagnetic pulse 
         attack (sec. 1048)
       The House bill contained a provision (sec. 1033) that would 
     extend the duration of the Commission to Assess the Threat to 
     the United States from Electromagnetic Pulse Attack (EMP 
     Commission) by 4 years to 2012, expand its scope and 
     membership, and authorize additional funds.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would direct the Secretary of Defense to 
     submit a report in each odd numbered year until 2015 that 
     sets forth the results of a review of the findings and 
     recommendations of the EMP Commission that are applicable to 
     the Department of Defense (DOD).
       We note that an electromagnetic attack on the United States 
     could have a devastating impact on the ability of the DOD and 
     the military services to carry out their missions. The EMP 
     Commission, over the course of 7 years has made extensive 
     findings and recommendations for the Department of Defense 
     and other Executive Branch agencies.

                       Subtitle F--Other Matters

     Additional information under annual submissions of 
         information regarding information technology capital 
         assets (sec. 1051)
       The House bill contained a provision (sec. 1061) that would 
     Clarify reporting requirements relating to budget submissions 
     for information technology capital assets.
       The Senate amendment contained a similar provision (sec. 
     331).
       The agreement includes a provision that clarifies and 
     reduces the burden on the Department of Defense in terms of 
     reporting on budget requests related to information 
     technology capital assets. The Department should continue to 
     work to ensure that public information on the information 
     technology budget is informative and provides visibility into 
     the use of public funds for these important activities.
     Submission to Congress of revision to regulation on enemy 
         prisoners of war, retained personnel, civilian internees, 
         and other detainees (sec. 1052)
       The House bill contained a provision (sec. 1064) that would 
     prohibit implementation of any successor regulation to Army 
     Regulation 190-8, Enemy Prisoners of War, Retained Personnel, 
     Civilian Internees, and Other Detainees (dated October 1, 
     1997) until 60 days after the Secretary of Defense submits 
     that successor regulation to the Committees on Armed Services 
     of the Senate and the House of Representatives.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Barnegat Inlet to Little Egg Inlet, New Jersey (sec. 1053)
       The House bill contained a provision (sec. 1067) that would 
     authorize the Secretary of the Army to pay the full cost of 
     removing munitions from the beach at Barnegat Inlet to Little 
     Egg Inlet, New Jersey.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would modify the language regarding 
     reimbursement for any non-federal expenses incurred.
     Standing advisory panel on improving coordination among the 
         Department of Defense, the Department of State, and the 
         United States Agency for International Development on 
         matters of national security (sec. 1054)
       The House bill contained a provision (sec. 1071) that would 
     require the Secretary of Defense, the Secretary of State, and 
     the Administrator of the U.S. Agency for International 
     Development (USAID) to jointly establish an advisory panel to 
     review the roles and responsibilities of the Department of 
     Defense, the Department of State, and the USAID on matters of 
     national security and make recommendations to improve 
     collaboration and coordination.
       The Senate bill contained no similar provision.
       The agreement contains the House provision with an 
     amendment allowing the Secretary of Defense, the Secretary of 
     State, and the Administrator of the USAID to jointly 
     establish an advisory panel to advise on ways to improve 
     coordination among the Department of Defense, the Department 
     of State, and USAID on matters relating to national security, 
     including reviewing their respective roles and 
     responsibilities.
     Reports on strategic communication and public diplomacy 
         activities of the Federal Government (sec. 1055)
       The House bill contained a provision (sec. 1074) that would 
     require the President to submit to Congress a report on a 
     comprehensive interagency strategy for public diplomacy and 
     strategic communication efforts for the Federal Government.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment. We note that numerous studies from 
     independent commissions, the Government Accountability 
     Office, and the Defense Science Board have indicated a lack 
     of clearly articulated strategic goals for the Federal 
     Government's efforts at strategic communication and public 
     diplomacy. Taken as a whole, these studies point to 
     deficiencies in the U.S. approach to this mission that have 
     not been adequately addressed by previous strategies, or by 
     any other official government initiative. For example, these 
     studies indicate that the Federal Government's approach to 
     strategic communication and public diplomacy has not been 
     effective enough at garnering greater participation from the 
     private sector, academic institutions or other non-
     governmental organizations. We commend the establishment of 
     the Global Strategic Engagement Center at the Department of 
     State, but note that its role within a whole-of-government 
     approach to strategic communication and public diplomacy 
     still needs to be further clarified.
     Prohibitions relating to propaganda (sec. 1056)
       The House bill contained a provision (sec. 1075) that would 
     prohibit the use of Department of Defense funds for 
     propaganda purposes not specifically authorized by law.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment. We intend the term ``publicity or 
     propaganda'', as used in the provision, to have the meaning 
     given to such term in decisions of the Government 
     Accountability Office on this subject.
     Sense of Congress on interrogation of detainees by contractor 
         personnel (sec. 1057)
       The House bill contained a provision (sec. 1077) that would 
     require the Secretary of Defense to revise applicable 
     regulations, not later than one year after the date of the 
     enactment of this Act, to prohibit the use of contractor 
     personnel to interrogate detainees.
       The Senate bill contained a similar provision (sec. 1036).
       The agreement includes the Senate provision with an 
     amendment expressing the Sense of Congress that the 
     interrogation of detainees is an inherently governmental 
     function and that within one year after the date of the 
     enactment of this Act, the Department of Defense should 
     develop the resources needed to ensure that all such 
     interrogations can be conducted by government personnel 
     rather than contractor employees.
     Sense of Congress with respect to videotaping or otherwise 
         electronically recording strategic intelligence 
         interrogations of persons in the custody of or under the 
         effective control of the Department of Defense (sec. 
         1058)
       The House bill contained a provision (sec. 1078) that would 
     require the Secretary of Defense to ensure that all strategic 
     intelligence interrogations of individuals in Department of 
     Defense (DOD) custody or under detention in a DOD facility 
     are videotaped or otherwise electronically recorded.

[[Page 20573]]

       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would express the Sense of Congress that the 
     Secretary of Defense should take the necessary actions to 
     ensure that all strategic interrogations of individuals in 
     DOD custody or under detention in a DOD facility are 
     videotaped or otherwise electronically recorded.
     Modification of deadlines for standards required for entry to 
         military installations in the United States (sec. 1059)
       The Senate bill contained a provision (sec. 1082) that 
     would amend section 1069 of the National Defense 
     Authorization Act for Fiscal Year 2008 (Public Law 110-181) 
     to extend deadlines for the establishment and implementation 
     of standards for entry to military installations in the 
     United States.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment modifying the deadlines.
     Extension of certain dates for Congressional Commission on 
         the Strategic Posture of the United States (sec. 1060)
       The House bill contained a provision (sec. 1032) that would 
     extend the due date for the final report of the Congressional 
     Commission on the Strategic Posture of the United States from 
     December 1, 2008 to March 1, 2009, and the sunset date for 
     the Commission from June 1, 2009, to September 30, 2009. The 
     provision would also direct the Commission to submit an 
     interim report no later than December 1, 2009.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that that would extend the due date of the final 
     report to April 1, 2009.
       The Commission should be prepared to brief Congress on the 
     results of the interim report when it becomes available.
     Technical and clarifying amendments (sec. 1061)
       The House bill contained a provision (sec. 1063) that would 
     make technical and clarifying amendments.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment adding additional technical and clarifying 
     language.
     Notification of Committees on Armed Services with respect to 
         certain nonproliferation and proliferation activities 
         (sec. 1062)
       The Senate bill contained a provision (sec. 1037) that 
     would direct the Departments of Defense, Energy, State, and 
     Commerce, and the Nuclear Regulatory Commission to keep the 
     Committees on Armed Services of the Senate and the House of 
     Representatives fully and currently informed with respect to 
     their activities to prevent the proliferation of weapons of 
     mass destruction and the Director of National Intelligence to 
     keep the committees currently informed with respect to the 
     current activities of foreign nations that are of 
     significance from the proliferation standpoint.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Assessment of security measures at consolidated center for 
         North American Aerospace Defense Command and United 
         States Northern Command (sec. 1073)
       The House bill contained a provision (sec. 1062) that would 
     prohibit the Secretary of Defense from relocating any mission 
     from Cheyenne Mountain Air Force Station until 30 days after 
     the Secretary submits a report to the congressional defense 
     committees with information concerning any such relocation.
       The Senate bill contained no similar provision.
       The agreement includes a provision that would require the 
     Secretary of Defense to conduct an assessment of the adequacy 
     of security measures for the consolidated command center for 
     North American Aerospace Defense Command (NORAD) and United 
     States Northern Command (USNORTHCOM), and to report on the 
     results of the assessment by no later than March 1, 2009. The 
     provision would also require the Secretary to ensure that 
     redundant facilities and equipment, along with appropriate 
     manning, are maintained at Cheyenne Mountain Air Force 
     Station until the Secretary of Defense certifies that 
     measures have been instituted that bring the consolidated 
     NORAD/USNORTHCOM command center into full compliance with 
     Protection Level One requirements.


                   Legislative Provisions Not Adopted

     Strategic Communication Management Board
       The House bill contained a provision (sec. 1031) that would 
     require the Secretary of Defense to establish a Strategic 
     Communication Management Board to provide interdepartmental 
     and interagency coordination for Department of Defense 
     strategic communication efforts.
       The Senate bill contained no similar provision.
       The agreement does not contain the provision.
     Studies to analyze alternative models for acquisition and 
         funding of interconnected cyberspace systems
       The House bill contained a provision (sec. 1044) that would 
     require the Secretary of Defense to contract for an 
     independent assessment on a variety of issues related to the 
     development, acquisition, and operational use of technologies 
     supporting network centric operations.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
       This provision contains aspects worthy of future 
     consideration by the Department of Defense, as well as 
     Congress, as they relate to acquisition of information 
     technology systems. For example, the development of a 
     taxonomy for understanding the key components of systems 
     supporting network centric operations is long overdue. The 
     National Defense Authorization Act for Fiscal Year 2008 
     (Public Law 110-181) contained a provision (sec. 887) that 
     required the Defense Science Board (DSB) to conduct a study 
     of policies and procedures for the acquisition of information 
     technology. This DSB study will address the majority of 
     issues raised by the House provision, and thus it would be 
     premature to commission another study until those results 
     have been reported back to Congress.
     Study on national defense implications of section 1083
       The House bill contained a provision (sec. 1046) that would 
     require the Department of Defense to study the national 
     defense implications of section 1083 of the National Defense 
     Authorization Act for Fiscal Year 2008 (Public Law 110-181).
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Study on methods to verifiably reduce the likelihood of 
         accidental nuclear launch
       The House bill contained a provision (sec. 1048) that would 
     direct the Secretary of Defense to carry out a study to 
     evaluate procedural and physical options to introduce time 
     delays into the nuclear weapons launch procedures of the 
     United States, Russia, and China.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.
     Sense of Congress honoring the Honorable Duncan Hunter
       The House bill contained a provision (sec. 1051) that would 
     express the sense of Congress honoring the Honorable Duncan 
     Hunter.
       The Senate bill contained no similar provision.
       The agreement does not include the provision. The material 
     from the provision is incorporated into section 1, the short 
     title of the bill.
     Sense of Congress in honor of the Honorable Jim Saxton, a 
         Member of the House of Representatives
       The House bill contained a provision (sec. 1052) that would 
     express the sense of Congress honoring the Honorable Jim 
     Saxton.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Sense of Congress honoring the Honorable Terry Everett, a 
         Member of the House of Representatives
       The House bill contained a provision (sec. 1053) that would 
     express the sense of Congress honoring the Honorable Terry 
     Everett.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Sense of Congress honoring the Honorable Jo Ann Davis, a 
         Member of the House of Representatives
       The House bill contained a provision (sec. 1054) that would 
     express the sense of Congress honoring the Honorable Jo Ann 
     Davis.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Authorization of appropriations for payments to Portuguese 
         nationals employed by the Department of Defense
       The House bill contained a provision (sec. 1065) that would 
     authorize payments for salary increases based on wage survey 
     data for fiscal years 2006 and 2007 to Portuguese nationals 
     employed by the Department of Defense.
       The Senate bill contained no similar provision.
       The agreement does not include this provision.
     State defense force improvement
       The House bill contained a provision (sec. 1066) that would 
     amend section 109 of title 32, United States Code, to 
     recognize state defense forces as an integral military 
     component of the United States, and would authorize the 
     Secretary of Defense to coordinate, assist, train, and 
     transfer excess equipment to a state defense force provided 
     the Secretary determines certain conditions are met.

[[Page 20574]]

       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Sense of Congress regarding the roles and missions of the 
         Department of Defense and other national security 
         institutions
       The House bill contained a provision (sec. 1068) that would 
     express the sense of Congress regarding coordination between 
     the Department of Defense and other national security 
     organizations.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Sense of Congress relating to 2008 supplemental 
         appropriations
       The House bill contained a provision (sec. 1069) that would 
     state the sense of Congress regarding readiness shortfalls.
       The Senate bill contained no similar provision.
       The agreement does not include this provision.
     Sense of Congress regarding defense requirements of the 
         United States
       The House bill contained a provision (sec. 1070) that would 
     state the sense of Congress regarding the funding of national 
     defense requirements.
       The Senate bill contained no similar provision.
       The agreement does not include this provision.
     Nonapplicability of the Federal Advisory Committee Act to the 
         Congressional Commission on the Strategic Posture of the 
         United States
       The House bill contained a provision (sec. 1072) that would 
     exempt the Congressional Commission on the Strategic Posture 
     of the United States from the applicability of the Federal 
     Advisory Committee Act (Public Law 92-463) or 5 U.S.C. App.
       The Senate bill contained no similar provision.
       The agreement does not include this provision.
     Study and report on the use of power management software
       The House bill contained a provision (sec. 1073) that would 
     require a report on the use of power management software.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
       The strides that the Department of Defense has made in 
     improving energy efficiency across the entire organization 
     are encouraging. The Department is working to increase the 
     fuel efficiency and alternative fuel options of its vast 
     fleet of vehicles, but also developing options for improving 
     the energy efficiency of its extensive information technology 
     (IT) enterprise. IT systems, including all of the desktop 
     computing, servers, routers, and associated equipment consume 
     significant quantities of energy, and any gains of efficiency 
     will likely translate to significant cost savings. The 
     adoption of innovative business practices will also help 
     contribute to the reduction of the energy consumption for 
     these resources. The Department should continue to undertake 
     further measures to reduce energy consumption in its 
     information technology enterprise, and keep industry and 
     academia aware of opportunities for them to support efforts 
     in this area.
     Public disclosure of names of students and instructors at 
         Western Hemisphere Institute for Security Cooperation
       The House bill contained a provision (sec. 1079) that would 
     require the Secretary of Defense to release to the public, 
     upon request, the names, ranks, countries of origin, and 
     other information of students and instructors of the Western 
     Hemisphere Institute for Security Cooperation.
       The Senate bill contained no similar provision.
       The agreement does not include this provision.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

     Authority to waive annual limitation on premium pay and 
         aggregate limitation on pay for federal civilian 
         employees working overseas (sec. 1101)
       The House bill contained a provision (sec. 1101) that would 
     extend for an additional year the authority of a head of a 
     federal agency to waive the limitations on the amount of 
     premium pay that may be given to a civilian employee who 
     performs certain work in an overseas location that falls 
     under the responsibility of the United States Central 
     Command, or in support of a military operation or responding 
     to an emergency declared by the President. The total 
     compensation would be limited to $212,100 for the calendar 
     year.
       The Senate bill contained a provision (sec. 1108) that 
     would authorize the head of an executive agency to waive 
     limitations on the aggregate of basic and premium pay, and on 
     allowances, differentials, bonuses, awards, and similar cash 
     payments payable during calendar year 2009 to an employee who 
     performs work in an overseas location under the area of 
     responsibility of the Commander, United States Central 
     Command in support of a contingency operation or an operation 
     in response to a declared emergency. The total amount payable 
     may not exceed the total annual compensation payable to the 
     Vice President under section 104 of title 3, United States 
     Code.
       The agreement includes the Senate provision with an 
     amendment that would account for the possibility of certain 
     employees no longer working under the area of responsibility 
     of the United States Central Command due to the changes that 
     would accompany the stand up of the United States Africa 
     Command. The amendment would also address the manner in which 
     premium pay caps and aggregate compensation limits are 
     handled.
     Temporary discretionary authority to grant allowances, 
         benefits, and gratuities to personnel on official duty in 
         a combat zone (sec. 1102)
       The House bill contained a provision (sec. 1107) that would 
     provide temporary discretionary authority to federal agencies 
     to grant allowances, benefits, and gratuities comparable to 
     those provided to members of the foreign service to an 
     agency's civilian employees on official duty in a combat 
     zone. This authority would expire in 2011.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Election of insurance coverage by federal civilian employees 
         deployed in support of a contingency operation (sec. 
         1103)
       The Senate bill contained a provision (sec. 1105) that 
     would authorize federal civilian employees deployed in 
     support of a contingency operation and Department of Defense 
     employees designated as emergency essential to elect to 
     receive automatic life insurance coverage upon notification 
     of deployment or designation. The provision would also 
     authorize such civilian employees to elect optional life 
     insurance or additional optional life insurance within 60 
     days after the employee's date of notification of deployment 
     or designation.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Extension of authority to make lump-sum severance payments 
         (sec. 1104)
       The House bill contained a provision (sec. 1102) that would 
     extend until the end of fiscal year 2014 the authority of the 
     Secretary of Defense or the secretaries of the military 
     departments to pay an employee the total amount of severance 
     pay in one lump sum.
       The Senate bill contained a similar provision (sec. 1107).
       The agreement includes the House provision.
     Extension of voluntary reduction-in-force authority of 
         Department of Defense (sec. 1105)
       The House bill contained a provision (sec. 1103) that would 
     extend, from 2010 to 2014, existing authorities under section 
     3502(f)(5) of title 5, United States Code, to allow an 
     employee who is not affected by a reduction in force (RIF) to 
     volunteer to be separated to protect another employee from 
     being involuntarily separated by RIF procedures.
       The Senate bill contained a provision (sec. 1106) that 
     would make permanent the authority under section 3502(f) of 
     title 5, United States Code.
       The agreement includes the House provision.
     Enhancement of authorities relating to additional positions 
         under the National Security Personnel System (sec. 1106)
       The Senate bill contained a provision (sec. 1103) that 
     would clarify the authority of the Department of Defense 
     (DOD) to utilize streamlined hiring practices under the 
     National Security Personnel System (NSPS).
       The House bill contained no similar provision.
       The agreement includes the Senate provision with a 
     clarifying amendment.
       The National Defense Authorization Act for Fiscal Year 2008 
     (Public Law 110-181) substantially revised the Department's 
     authority under the NSPS legislation, with the objective of 
     restoring the collective bargaining rights of DOD employees. 
     Unfortunately, proposed regulations, issued May 22, 2008, to 
     implement that legislation would restrict such rights by 
     unilaterally removing negotiable issues from the scope of 
     collective bargaining. In particular, the law provided that 
     while unions would not be able to negotiate over the ``rate 
     of pay,'' they would be permitted to bargain over 
     ``procedures and appropriate arrangements,'' as defined in 
     chapter 71 of title 5, United States Code regarding pay. 
     However, the proposed regulations define ``rate of pay'' so 
     broadly that it would be impossible to negotiate over any 
     procedures or appropriate arrangements. We intend to 
     carefully scrutinize the final regulation when published. 
     Should it fail to comport with the intent of Congress to 
     restore the collective bargaining rights of DOD employees, we 
     shall revisit the issue in the National Defense Authorization 
     Act for Fiscal Year 2010.
     Expedited hiring authority for health care professionals 
         (sec. 1107)
       The House bill contained a provision (sec. 1105) that would 
     amend section 1599c of title

[[Page 20575]]

     10, United States Code, to authorize the Secretary of Defense 
     to designate any category of medical or health care 
     professional position within the Department of Defense as a 
     shortage category position, and would authorize the Secretary 
     to recruit and appoint highly qualified individuals directly 
     to those designated positions. This bill would also extend 
     health care hiring authorities under this section until 
     September 30, 2012.
       The Senate bill contained a similar provision (sec. 1104).
       The agreement includes the House provision.
     Direct hire authority at personnel demonstration laboratories 
         for certain candidates (sec. 1108)
       The House bill contained a provision (sec. 1109) that would 
     authorize the Secretary of Defense to make a limited number 
     of appointments to positions at specified defense 
     laboratories using expedited hiring procedures.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that clarifies that the authority is intended for 
     the purposes of hiring a limited number of qualified 
     candidates with advanced degrees into scientific and 
     engineering positions in specified defense laboratories. 
     There are clear difficulties facing defense laboratories in 
     recruiting and retaining a highly qualified, technical 
     workforce to support their designated national security 
     missions. It is expected that this authority, if aggressively 
     implemented, will assist in addressing these challenges.
     Status reports relating to laboratory personnel demonstration 
         projects (sec. 1109)
       The House bill contained a provision (sec. 1110) that would 
     require status reports on the utilization of personnel 
     authorities granted to the Department of Defense related to 
     the laboratory personnel demonstration program.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that clarifies that the report should include 
     information on any defense laboratories that are seeking to 
     be newly designated as a demonstration laboratory and the 
     status of those applications. The amendment also clarifies 
     that the designation of a ``demonstration laboratory'' is 
     distinct from the designation of a ``science and technology 
     reinvention laboratory.''
     Technical amendment relating to definition of professional 
         accounting position for purposes of certification and 
         credentialing standards (sec. 1110)
       The House bill contained a provision (sec. 1104) that would 
     amend section 1599d(e) of title 10, United States Code, to 
     update the definition of a ``professional accounting 
     position.''
       The Senate bill contained a similar provision (sec. 1109).
       The agreement includes the Senate provision.
     Exceptions and adjustments to limitations on personnel and 
         reports on such exceptions and adjustments (sec. 1111)
       The House bill contained a provision (sec. 1106) that would 
     authorize the Secretary of Defense to adjust statutory 
     ceilings on management headquarters personnel.
       The Senate bill contained a provision (sec. 903) that would 
     repeal the ceilings.
       The agreement includes the House provision with an 
     amendment that would establish certain exceptions to the 
     ceilings and authorize the Secretary of Defense to adjust the 
     ceilings.


                   Legislative Provisions Not Adopted

     Department of Defense strategic human capital plans
       The Senate bill contained a provision (sec. 1101) that 
     would codify the requirement for the Secretary of Defense to 
     submit an annual strategic human capital plan and consolidate 
     the requirements of section 1122 of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163), 
     section 1102 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364), 
     and section 851 of the National Defense Authorization Act for 
     Fiscal Year 2008 (Public Law 110-181).
       The House bill contained no similar provision.
       The agreement does not include the provision.
     Conditional increase in authorized number of Defense 
         Intelligence Senior Executive Service personnel
       The Senate bill contained a provision (sec. 1102) that 
     would increase the authorized number of Defense Intelligence 
     Senior Executive Service personnel, provided that certain 
     conditions are met.
       The House bill contained no similar provision.
       The agreement does not include the provision.
     Requirement relating to furloughs during the time of a 
         contingency operation
       The House bill contained a provision (sec. 1108) that would 
     require the Secretary of Defense to certify that he has no 
     other legal measures available to avoid issuing furlough 
     notices to civilian employees of the Department of Defense on 
     the basis of a lack of funds during contingency operations.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
       We expect that execution of a furlough of civilian 
     employees during a contingency operation will be a measure of 
     last resort only, after all other alternative actions are 
     taken or considered, in order to avoid disruption of civilian 
     workforce operations.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                  Subtitle A--Assistance and Training

     Extension of authority to build the capacity of the Pakistan 
         Frontier Corps (sec. 1201)
       The House bill contained a provision (sec. 1201) that would 
     extend through fiscal year 2010 the authority under section 
     1206 of the National Defense Authorization Act for Fiscal 
     Year 2008 (Public Law 110-181) for the Secretary of Defense, 
     with the concurrence of the Secretary of State, to provide up 
     to $75.0 million in assistance to enhance the ability of the 
     Pakistan Frontier Corps to conduct counterterrorism 
     operations along the border between Pakistan and Afghanistan.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment to extend this authority through fiscal year 2009 
     and limit the authorized funding level for such assistance to 
     $25.0 million. We note that the Department of State intends 
     to seek Foreign Military Financing funding for the Pakistan 
     Frontier Corps program in fiscal year 2009 and encourage the 
     transition of funding for this program from the Department of 
     Defense to the Department of State.
     Availability across fiscal years of funds for military-to-
         military contacts and comparable activities (sec. 1202)
       The House bill contained a provision (sec. 1202) that would 
     amend section 168(e) of title 10, United States Code, to 
     allow funds authorized under that section in a fiscal year to 
     be used for programs that begin in that fiscal year but end 
     in the following one, starting with fiscal year 2009.
       The Senate bill contained a similar provision (sec. 1211).
       The agreement includes the Senate provision.
     Availability across fiscal years of funds to pay incremental 
         expenses for participation of developing counties in 
         combined exercises (sec. 1203)
       The House bill contained a provision (sec. 1203) that would 
     amend section 2010 of title 10, United States Code, to allow 
     funds authorized under that section in any fiscal year to be 
     available for programs that begin in that fiscal year but end 
     in the following one, beginning in fiscal year 2009.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a technical 
     amendment.
     Extension of temporary authority to use acquisition and 
         cross-servicing agreements to lend military equipment for 
         personnel protection and survivability (sec. 1204)
       The House bill contained a provision (sec. 1204) that would 
     extend the authority granted by section 1202 of the John 
     Warner National Defense Authorization Act for Fiscal Year 
     2007 (Public Law 109-364), as amended by section 1252 of the 
     National Defense Authorization Act for Fiscal Year 2008 
     (Public Law 110-181), through September 30, 2010. This 
     provision would also add two elements to the existing 
     reporting requirement regarding types and disposition of 
     equipment lent to foreign nations but not returned to the 
     United States.
       The Senate bill contained a provision (sec. 1206) that 
     would extend the section 1202 authority through September 30, 
     2013.
       The agreement includes the House provision with an 
     amendment to extend the section 1202 authority through 
     September 30, 2011.
     Authority for distribution to certain foreign personnel of 
         education and training materials and information 
         technology to enhance military interoperability with the 
         armed forces (sec. 1205)
       The House bill contained a provision (sec. 1205) that would 
     amend section 1207 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364) 
     to extend the authority through fiscal year 2009.
       The Senate bill contained a provision (sec. 1202) that 
     would make permanent the authority provided under section 
     1207 of the John Warner National Defense Authorization Act 
     for Fiscal Year 2007 (Public Law 109-364).
       The agreement includes the Senate provision with an 
     amendment that would require that the annual report on the 
     use of this authority, which is provided to the Committees on 
     Armed Services of the Senate and the House of 
     Representatives, also be provided to the Committee on Foreign 
     Relations of the Senate and the Committee on Foreign Affairs 
     of the House of Representatives.
     Modification and extension of authorities relating to program 
         to build the capacity of foreign military forces (sec. 
         1206)
       The House bill contained a provision (sec. 1206) that would 
     extend through fiscal year

[[Page 20576]]

     2010 the authority provided in section 1206 of the National 
     Defense Authorization Act for Fiscal Year 2006 (Public Law 
     109-163). The provision would also permit the use of funds 
     provided in a fiscal year for programs to build the capacity 
     of foreign military forces that began in that fiscal year but 
     continued into the next fiscal year.
       The Senate bill contained a provision (sec. 1204) that 
     would extend and modify the authority under section 1206 of 
     the National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163). The provision would expand the types of 
     security forces eligible to be trained and equipped under 
     this authority and increase the annual limitation on 
     authorized funding from $300.0 million to $400.0 million. The 
     provision would also extend the section 1206 authority 
     through September 30, 2011.
       The agreement includes the Senate provision with an 
     amendment that would expand the types of security forces 
     eligible to receive assistance under this section to include 
     maritime security forces for the purpose of building capacity 
     to conduct counterterrorism operations. The amendment would 
     also increase the authorized funding level to $350.0 million 
     per fiscal year. The amendment would allow funds available in 
     a fiscal year to be used for programs that begin in that 
     fiscal year but end in the next fiscal year. The amendment 
     would extend the section 1206 authority through September 30, 
     2011.
       The train and equip authority under section 1206 was 
     initiated as a pilot program and is generally intended to 
     address emerging needs for building the capacity of foreign 
     military forces, particularly those of developing or other 
     countries that otherwise would be unable to build this 
     capacity on their own. This authority is not intended to 
     duplicate or substitute for other foreign assistance 
     authorities, nor is it intended to sustain train and equip 
     programs over multiple years. We continue to view this 
     authority as provisional and intend to continue to carefully 
     monitor its implementation.
       Moreover, as clearly articulated in the conference report 
     accompanying the John Warner National Defense Authorization 
     Act for Fiscal Year 2007 (Public Law 109-364), we continue to 
     believe strongly that foreign assistance programs are more 
     appropriately funded through the foreign assistance accounts, 
     as administered by the Department of State, and expect future 
     budget requests to include sufficient funding for foreign 
     military assistance in those accounts.
       It is essential that the Department choose projects that 
     strictly meet the criteria stipulated by the authority--
     projects that will contribute directly to building the 
     capacity of a foreign country's national military forces to 
     conduct counterterrorist operations or participate in or 
     support military and stability operations in which the United 
     States armed forces are participants. When this authority is 
     used for counterterrorism purposes, nations that face a known 
     terrorist threat, and that do not have the resources to build 
     their military capacity without U.S. assistance, should be 
     given the highest priority.
     Extension of authority and increased funding for security and 
         stabilization assistance (sec. 1207)
       The House bill contained a provision (sec. 1207) that would 
     extend the authority provided under section 1207 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163), as amended by section 1210 of the 
     National Defense Authorization Act for Fiscal Year 2008 
     (Public Law 110-181), through September 30, 2010.
       The Senate bill contained a similar provision (sec. 1205) 
     that would extend the section 1207 authority through 
     September 30, 2011, and increase the authorized annual 
     funding level from $100.0 million to $200.0 million.
       The agreement includes the Senate provision with an 
     amendment that would extend the 1207 authority through 
     September 30, 2009. The amendment provides that up to $50.0 
     million in assistance under section 1207 may be provided to 
     the Republic of Georgia, without that assistance counting 
     against the authorized annual funding limit of $100.0 
     million. The amendment also clarifies that Section 1207 
     authority is not to be used to provide budgetary support to a 
     foreign country.
       The Congress established this authority as a temporary 
     measure to allow the Department of Defense to support 
     Department of State efforts to address security and 
     stabilization missions. Budget proposals for the Department 
     of State should provide adequate resources to accomplish 
     those missions without relying on this temporary transfer 
     authority, and we urge the administration to request 
     sufficient funding for the Department of State in future 
     budget submissions.
     Extension and expansion of authority for support of special 
         operations to combat terrorism (sec. 1208)
       The House bill contained a provision (sec. 1208) that would 
     make permanent the authority provided in section 1208 of the 
     Ronald Reagan National Defense Authorization Act for Fiscal 
     Year 2005 (Public Law 108-375) for the Secretary of Defense 
     to provide assistance to foreign forces, irregular forces, 
     groups or individuals supporting or facilitating military 
     operations by U.S. special operations forces to combat 
     terrorism. The provision would also increase the amount that 
     may be expended during any fiscal year from $25.0 million to 
     $35.0 million.
       The Senate bill contained a similar provision (sec. 1203) 
     that would extend the section 1208 authority through 2011 and 
     also increase the authorized annual funding level to $35.0 
     million.
       The agreement includes the Senate provision with an 
     amendment extending this authority through 2013.
     Increase in amount available for costs of education and 
         training of foreign military forces under Regional 
         Defense Combating Terrorism Fellowship Program (sec. 
         1209)
       The House bill contained a provision (sec. 1209) that would 
     amend section 2249(c) of title 10, United States Code, to 
     increase the authorized annual funding level for the Regional 
     Defense Combating Terrorism Fellowship Program from $25.0 
     million to $35.0 million.
       The Senate bill (sec. 1201) contained a similar provision.
       The agreement includes the Senate provision.

          Subtitle B--Matters Relating to Iraq and Afghanistan

     Limitation on availability of funds for certain purposes 
         relating to Iraq (sec. 1211)
       The House bill contained a provision (sec. 1211) that would 
     prohibit the use of funds authorized by this Act or any other 
     act to establish any military bases in Iraq for the permanent 
     stationing of United States Armed Forces in that country or 
     to establish U.S. control over Iraqi oil resources.
       The Senate bill contained a similar provision (sec. 2913) 
     applicable to the use of funds authorized by this Act only.
       The agreement includes the Senate provision.
     Report on status of forces agreements between the United 
         States and Iraq (sec. 1212)
       The House bill contained a provision (sec. 1212) that would 
     require the President to submit a report to the Committees on 
     Armed Services of the Senate and the House of 
     Representatives, the Senate Committee on Foreign Relations, 
     and the House Committee on Foreign Affairs within 90 days 
     after the date of enactment of this Act on any status of 
     forces agreement between the United States and the Republic 
     of Iraq.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Strategy for United States-led Provincial Reconstruction 
         Teams in Iraq (sec. 1213)
       The House bill contained a provision (sec. 1213) that would 
     require the President to establish a strategy for U.S.-led 
     Provincial Reconstruction Teams (PRTs) in Iraq to ensure 
     those PRTs are supporting the operational and strategic goals 
     of coalition forces in Iraq.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would clarify that the strategy established by 
     the President should also ensure that PRTs are developing the 
     capacity of Iraqi government and other civil institutions to 
     assume increasing responsibility for the formulation, 
     implementation, and oversight of reconstruction and 
     development activities.
     Commanders' Emergency Response Program (sec. 1214)
       The House bill contained a provision (sec. 1214) that would 
     amend section 1202 of the National Defense Authorization Act 
     for Fiscal Year 2006 (Public Law 109-163), as amended by 
     section 1205 of the National Defense Authorization Act for 
     Fiscal Year 2008 (Public Law 110-181), to modify the 
     authorized level of funding for the activities of the 
     Commanders' Emergency Response Program (CERP). The provision 
     would authorize $1.7 billion for the activities of this 
     program in fiscal year 2008, and $1.5 billion in fiscal year 
     2009. The provision would also impose a new limitation on the 
     amounts that could be obligated and expended through the CERP 
     in the Republic of Iraq during fiscal year 2009 of twice the 
     amount obligated during calendar year 2008 by the Government 
     of Iraq through the Government of Iraq CERP (I-CERP).
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would amend section 1202 of the National 
     Defense Authorization Act for Fiscal Year 2006 (Public Law 
     109-163), as amended by section 1205 of the National Defense 
     Authorization Act for Fiscal Year 2008 (Public Law 110-181), 
     to authorize $1.7 billion for the activities of this program 
     in fiscal year 2008, and $1.5 billion in fiscal year 2009. 
     The provision would also impose a limitation of $2.0 million 
     on the amount of U.S. CERP funds that could be contributed to 
     any individual humanitarian and reconstruction project in 
     Iraq. The provision would allow the Secretary of Defense to 
     waive this limitation if he determines that a waiver is 
     required to meet urgent humanitarian relief and 
     reconstruction requirements that will immediately assist the 
     Iraqi people. The provision would also require the Secretary, 
     or the Deputy Secretary of Defense, to certify that any 
     project that is

[[Page 20577]]

     funded with U.S. CERP funds at a level of $1.0 million or 
     more addresses urgent humanitarian relief and reconstruction 
     requirements that will immediately assist the Iraqi people. 
     The amendment would also require certain elements be included 
     in the quarterly CERP reports to the congressional defense 
     committees. The amendment also includes a sense of the 
     Congress that the Government of Iraq should assume increasing 
     responsibility for funding and carrying out projects 
     currently funded by the United States through CERP, and 
     should assume all costs associated with the Sons of Iraq as 
     expeditiously as possible.
     Performance monitoring system for United States-led 
         Provincial Reconstruction Teams in Afghanistan (sec. 
         1215)
       The House bill contained a provision (sec. 1215) that would 
     require the President to develop and implement a system for 
     monitoring the performance of U.S.-led Provincial 
     Reconstruction Teams (PRTs) in Afghanistan.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would clarify that the PRT-specific work 
     plans, required as part of the performance monitoring system, 
     will include plans for developing the capacity of the Afghan 
     government and other civil institutions to assume increasing 
     responsibility for the formulation, implementation, and 
     oversight of reconstruction and development activities.
     Report on command and control structure for military forces 
         operating in Afghanistan (sec. 1216)
       The House bill contained a provision (sec. 1216) that would 
     require the Secretary of Defense to report on the command and 
     control structure for military forces operating in 
     Afghanistan.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the Secretary of Defense to 
     report on any efforts to modify the chain of command 
     structure for military forces in Afghanistan to better 
     coordinate and de-conflict military operations and achieve 
     unity of command whenever possible in Afghanistan. We welcome 
     the decision to dual-hat the position of Commander, 
     International Security Assistance Force, and Commander, U.S. 
     Forces Afghanistan.
       The report required by this section, or the report required 
     by section 1230 of the National Defense Authorization Act for 
     Fiscal Year 2008 (Public Law 110-181), should identify which 
     offices in the U.S. and NATO ISAF military headquarters are 
     responsible for coordinating counternarcotics operations. 
     That report should also include an assessment of the 
     coordination between U.S. and NATO ISAF military forces, and 
     the Government of Afghanistan to coordinate and de-conflict 
     operations relating to or in support of the counternarcotics 
     activities of the national and provincial governments of 
     Afghanistan and of other Departments and agencies of the 
     United States and other member countries of NATO ISAF.
     Reports on enhancing security and stability in the region 
         along the border of Afghanistan and Pakistan (sec. 1217)
       The House bill contained a provision (sec. 1217) that would 
     add the Committee on Foreign Relations of the Senate and the 
     Committee on Foreign Affairs of the House of Representatives 
     as recipients of the notifications, required under section 
     1232(b) of the National Defense Authorization Act for Fiscal 
     Year 2008 (Public Law 110-181), relating to Department of 
     Defense Coalition Support Funds for Pakistan.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the Secretary of Defense to 
     provide copies of the notifications required under section 
     1232(b) to the Committee on Foreign Relations of the Senate 
     and Committee on Foreign Affairs of the House. The amendment 
     further specifies additional information to be provided in 
     the notification required under section 1232(b) or within 180 
     days if not submitted as part of the notification.
       The amendment to the House provision also requires the 
     Secretary of Defense to provide semi-annually the report 
     required by section 1232(a) on enhancing security and 
     stability in the region along the border of Afghanistan and 
     Pakistan.
       In addition, the amendment to the House provision requires 
     the Secretary of Defense to provide a report on the efforts 
     of the Department of Defense to address the findings and 
     implement the recommendations of the report by the Government 
     Accountability Office entitled ``Combating Terrorism: 
     Increased Oversight and Accountability Needed Over Pakistan 
     Reimbursement Claims for Coalition Support Funds.'' The 
     report's recommendations include: that the Department of 
     Defense consistently implement strong guidance concerning 
     reimbursements to the Pakistan Government; that the 
     Department of Defense define and formalize the roles and 
     responsibilities of the Department of Defense's Office of 
     Defense Representative to Pakistan concerning such 
     reimbursements; that the Department of Defense clarify 
     guidance for the Department of Defense Comptroller in 
     connection with such reimbursements; and that the Department 
     of Defense work with the Government of Pakistan to develop 
     procedures to allow the Office of the Defense Representative 
     to Pakistan or other U.S. representatives to conduct greater 
     oversight of such reimbursements.
     Study and report on Police Transition Teams to train, assist, 
         and advise units of the Iraqi Police Service (sec. 1218)
       The House bill contained a provision (sec. 1218) that would 
     require the Secretary of Defense to submit a report within 60 
     days after the date of enactment of this Act regarding the 
     staffing and funding of Police Training Teams in Iraq.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.

                       Subtitle C--Other Matters

     Payment of personnel expenses for multilateral cooperation 
         programs (sec. 1231)
       The House bill contained a provision (sec. 1231) that would 
     amend section 1051(a) of title 10, United States Code, to 
     authorize payment by the Secretary of Defense of the travel, 
     subsistence, and personal expenses of defense personnel of 
     developing countries in connection with the attendance of 
     such personnel at multilateral conferences, seminars, or 
     similar meetings when in the national security interests of 
     the United States.
       The Senate bill contained a similar provision (sec. 1213).
       The agreement includes the Senate provision with a 
     technical amendment.
     Participation of the Department of Defense in multinational 
         military centers of excellence (sec. 1232)
       The House bill contained a provision (sec. 1232) that would 
     extend through fiscal year 2009 the authority granted by 
     section 1205 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364), 
     as amended by section 1204 of the National Defense 
     Authorization Act for Fiscal Year 2008 (Public Law 110-181), 
     for Department of Defense personnel to participate in North 
     Atlantic Treaty Organization multinational military centers 
     of excellence.
       The Senate bill contained a provision (sec. 1214) that 
     would make permanent the authority granted by section 1205 of 
     the John Warner National Defense Authorization Act for Fiscal 
     Year 2007 (Public Law 109-364).
       The agreement includes the Senate provision with a 
     clarifying amendment.
     Review of security risks of participation by defense 
         contractors in certain space activities of the People's 
         Republic of China (sec. 1233)
       The House bill contained a provision (sec. 1233) that would 
     prohibit the Secretary of Defense from obligating or 
     expending any fiscal year 2009 or other fiscal year funds 
     available to the Department of Defense (DOD) for classified 
     work under contracts with a company if that company or 
     affiliate is engaged with the People's Republic of China in 
     the development of ``ITAR-free'' satellites. The restriction 
     could be waived following a certification by the Secretary of 
     Defense in consultation with the Secretary of State. The 
     requirement to implement the restriction would not take 
     effect until 60 days after enactment or if the Secretary of 
     Defense submits a report to the congressional defense 
     committees with a determination that implementation of the 
     requirement does not promote the national interest.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would direct the Secretary of Defense to 
     conduct a review to determine whether there are any security 
     risks associated with the participation by covered 
     contractors in certain space activities of the People's 
     Republic of China. The provision would direct the Secretary 
     of Defense to submit a report to the congressional defense 
     committees setting forth the conclusions of the review by 
     March 1, 2009.
       One of the elements of the review to be conducted is 
     whether there have been any incidents with respect to which a 
     determination has been made that an improper disclosure of 
     covered information occurred during the 5 year period 
     preceding the date of enactment. We would urge, in the event 
     that the Secretary determines that such an event has occurred 
     after the date of enactment and before the due date of the 
     report, that any such incident should be included to the 
     extent practicable.
       Given the nature of the subject matter in the report we 
     expect it to be classified, but to the extent practicable an 
     unclassified summary should be submitted.
     Report on Iran's capability to produce nuclear weapons (sec. 
         1234)
       The House bill contained a provision (sec. 1234) that would 
     direct the Director of National Intelligence (DNI) to submit 
     to Congress, 180 days after the enactment of this Act and 
     annually thereafter, an update of the National Intelligence 
     Estimate entitled ``Iran: Nuclear Intentions and 
     Capabilities'' dated November 2007. The issues to be 
     addressed in the report include, the status of

[[Page 20578]]

     Iran's uranium enrichment program; an estimate of the amount 
     of weapons grade material held by Iran; a description of 
     weaponization and delivery system activities; and an 
     assessment made by US allies of Iran's nuclear weapons 
     capabilities.
       The provision would direct the DNI to notify Congress 
     within 15 days if there were significant changes in the 
     Iranian program.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would direct the DNI to submit an annual 
     report on Iran's capacity to produce nuclear weapons. The 
     first report is due not later than 180 days after the date of 
     enactment of this Act. The report may be submitted in 
     classified form. The amendment would also modify the issues 
     to address the uranium enrichment program and to address 
     plutonium production capabilities. In addition, the President 
     would be required to notify Congress if Iran resumes its 
     nuclear weapons program.
       The report required by this provision shall be prepared 
     following standard procedures used to produce reports by the 
     national intelligence community and should include dissenting 
     opinions from other intelligence community elements.
     Employment for resettled Iraqis (sec. 1235)
       The House bill contained a provision (sec. 1235) that would 
     create a joint Department of Defense/Department of State 
     program for the purpose of hiring Iraqis, who supported the 
     United States' efforts in Iraq and have resettled in the 
     U.S., as interpreters, translators, and cultural awareness 
     instructors for agencies of the Federal Government.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Extension and modification of updates on report on claims 
         relating to the bombing of the Labelle Discotheque (sec. 
         1236)
       The Senate bill contained a provision (sec. 1231) that 
     would extend and modify a reporting requirement on the status 
     of negotiations between the Government of Libya and United 
     States claimants in connection with the bombing of the 
     Labelle Discotheque in Berlin, Germany, that occurred in 
     April 1986. The reporting requirement is an extension of 
     section 1225 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163) and section 1261 of the 
     National Defense Authorization Act for Fiscal Year 2008 
     (Public Law 110-181).
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would require the next report to be submitted 
     not later than 90 days following the enactment of this Act, 
     and that subsequent reports be submitted every 180 days 
     thereafter. The amendment would further terminate the 
     reporting requirement upon submission by the Secretary of 
     State to Congress of the certification described in the Libya 
     Claims Resolution Act (Public Law 110-301).
       We note the recent enactment of the Libya Claims Resolution 
     Act and are hopeful the cases of the American victims of 
     Libyan-sponsored acts of terrorism can be resolved in short 
     order. We will continue to monitor the implementation of the 
     Libya Claims Resolution Act.
     Report on utilization of certain global partnership 
         authorities (sec. 1237)
       The Senate bill contained a provision (sec. 1232) that 
     would require the Secretary of Defense, in consultation with 
     the Secretary of State, to submit a report not later than 
     December 31, 2010, on the implementation of certain Building 
     Global Partnership authorities.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Modification and repeal of requirement to submit certain 
         annual reports to Congress regarding allied contributions 
         to the common defense (sec. 1238)
       The Senate bill contained a provision (sec. 1051) that 
     would repeal certain requirements for the Secretary of 
     Defense to report annually on allied contributions to the 
     common defense and on costsharing by North Atlantic Treaty 
     Organization (NATO) allies.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would repeal the reporting requirement 
     regarding NATO cost sharing and modify the other reports to 
     require the Secretary of Defense to provide information on 
     allied annual defense spending and contributions to military 
     and stability operations in which United States Armed Forces 
     participate.


                   Legislative Provisions Not Adopted

     Declaration of policy relating to status of forces agreements 
         between the United States and Iraq
       The House bill contained a provision (sec. 1219) that would 
     declare that it is U.S. policy to ensure that any agreement 
     between the United States and Iraq on the status of U.S. 
     forces requires burdensharing by the Government of Iraq in 
     support of U.S. Armed Forces stationed in Iraq.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision. We note 
     that the agreement includes a provision (sec. 1508) calling 
     for the United States to initiate negotiations with Iraq on a 
     cost-sharing agreement relating to the costs of combined 
     operations of Iraqi Security Forces and Multi-National Force-
     Iraq.
     Limitation on certain status of forces agreements between the 
         United States and Iraq
       The House bill contained a provision (sec. 1220) that would 
     prohibit any agreement between the United States and Iraq 
     that obligates the United States to respond to internal or 
     external threats against Iraq from being in force with 
     respect to the United States unless the agreement is approved 
     by Congress, either in the form of a treaty or by an Act of 
     Congress enacted after the date of this Act.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision. It is 
     well established that any agreement that obligates the United 
     States to come to the defense of another country against 
     internal or external threats must be approved by Congress. 
     There is no need to restate the current state of existing law 
     in this Act.
     Report on long-term costs of Operation Iraqi Freedom and 
         Operation Enduring Freedom
       The House bill contained a provision (sec. 1221) that would 
     require the President to submit to Congress a report 
     estimating the long-term direct and indirect costs of 
     Operations Iraqi Freedom and Enduring Freedom under three 
     different scenarios.
       The Senate bill contained no similar provision.
       The agreement does not include the provision.
     Waiver of certain sanctions against North Korea
       The Senate bill contained a provision (sec. 1221) that 
     would provide the President with limited authority to waive, 
     with respect to North Korea, the application of sanctions 
     under section 102(b) of the Arms Export Control Act (22 
     U.S.C. 2799aa-1(b)). The President would be required to 
     notify Congress 15 days in advance of exercising such waiver 
     authority. In addition, the provision would require the 
     President to submit an annual report to Congress listing all 
     the waivers granted during the preceding year and describe in 
     detail the progress being made by North Korea in implementing 
     the commitments included in the Joint Statement of September 
     19, 2005, to abandon all nuclear weapons, existing nuclear 
     programs, and all other programs associated with the 
     elimination of the ability of North Korea to develop, deploy, 
     transfer, or maintain weapons of mass destruction or their 
     delivery systems.
       The House bill contained no similar provision.
       The agreement does not include the provision. A similar 
     provision was included in the Supplemental Appropriations Act 
     for Fiscal Year 2008 (Public Law 110-252).

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

     Specification of Cooperative Threat Reduction programs and 
         funds (sec. 1301)
       The House bill contained a provision (sec. 1301) that would 
     define the Cooperative Threat Reduction (CTR) programs, 
     define the funds authorized to be appropriated in section 301 
     of the bill, and authorize CTR funds to be available for 
     obligation for 3 years.
       The Senate bill contained a similar provision (sec. 1301)
       The agreement includes the House provision with a technical 
     amendment.
     Funding allocations (sec. 1302)
       The House bill contained a provision (sec. 1302) that would 
     authorize $445.1 million for the Cooperative Threat Reduction 
     (CTR) program.
       The Senate bill contained a similar provision that would 
     authorize $434.1 million (sec. 1302).
       The agreement includes the House provision with an 
     amendment that would authorize $434.1 million for the CTR 
     program, an increase of $20.0 million above the budget 
     request. In addition, the agreement would reduce the 
     notification period for obligations and expenditures to 15 
     days from 30 days. The Agreement would also authorize a 
     specific amount for each of the CTR program elements. The 
     agreement authorizes an increase of $10.0 million for new 
     initiatives including activities in states outside of the 
     former Soviet Union, $1.0 million for additional expenses 
     associated with the Russian chemical weapons destruction 
     activities, and an increase of $9.0 million for weapons of 
     mass destruction proliferation prevention in the former 
     Soviet Union.

                    TITLE XIV--OTHER AUTHORIZATIONS

                     Subtitle A--Military Programs

     Working capital funds (sec. 1401)
       The House bill contained a provision (sec. 1401) that would 
     authorize appropriations for the working capital funds of the 
     Department of Defense, including the Defense Commissary 
     Agency.
       The Senate bill contained an identical provision (sec. 
     1401).

[[Page 20579]]

       The agreement includes this provision.
     National Defense Sealift Fund (sec. 1402)
       The House bill contained a provision (sec. 1402) that would 
     authorize appropriations for the National Defense Sealift 
     Fund.
       The Senate bill contained a similar provision (sec. 1402).
       The agreement includes this provision.
     Defense Health Program (sec. 1403)
       The House bill contained a provision (sec. 1403) that would 
     authorize fiscal year 2009 funds for the Defense Health 
     Program and other programs.
       The Senate bill contained a similar provision (sec. 1403).
       The agreement includes this provision.
     Chemical agents and munitions destruction, Defense (sec. 
         1404)
       The House bill contained a provision (sec. 1404) that would 
     authorize appropriations for chemical agents and munitions 
     destruction.
       The Senate bill contained an identical provision (sec. 
     1404).
       The agreement includes this provision. 
     Drug Interdiction and Counterdrug Activities, Defense-wide 
         (sec. 1405)
       The House bill contained a provision (sec. 1405) that would 
     authorize fiscal year 2009 funds for drug interdiction and 
     counterdrug activities and other programs.
       The Senate bill contained a similar provision authorizing 
     appropriations for drug interdiction and counterdrug 
     activities (sec. 1405).
       The agreement includes the provision.

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[[Page 20584]]

     Defense Inspector General (sec. 1406)
       The House bill contained a provision (sec. 1406) that would 
     authorize appropriations for the Inspector General of the 
     Department of Defense.
       The Senate bill contained an identical provision (sec. 
     1406).
       The agreement includes this provision.
     National Defense Sealift Fund amendments (sec. 1407)
       The House bill contained a provision (sec. 1014) that would 
     change the definition of what vessels would be funded within 
     the National Defense Sealift Fund (NDSF) account, and would 
     strike subsection (J) of section 2218 of title 10, United 
     States Code, which allows the Secretary of Defense to 
     transfer resources within the NDSF if he determines that the 
     action serves the national defense interest.
       The Senate bill contained a similar provision (sec. 1432) 
     that would change the definition of what vessels would be 
     funded in the NDSF.
       The agreement includes the House provision.

                 Subtitle B--National Defense Stockpile

     Authorized uses of National Defense Stockpile funds (sec. 
         1411)
       The House bill contained a provision (sec. 1411) that would 
     authorize $41.2 million from the National Defense Stockpile 
     Transaction Fund for the operation and maintenance of the 
     National Defense Stockpile for fiscal year 2009. This section 
     would also permit the use of additional funds for 
     extraordinary or emergency conditions 45 days after Congress 
     receives notification.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Revisions to previously authorized disposals from the 
         National Defense Stockpile (sec. 1412)
       The House bill contained a provision (sec. 1412) that would 
     authorize revisions on limitations in National Defense 
     Stockpile (NDS) by amending section 3303(a) of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (Public Law 105-261), as amended most recently by 
     section 1412(b) of the National Defense Authorization Act for 
     Fiscal Year 2008 (Public Law 110-181) to increase the 
     Department's disposal authority from $1.1 billion to $1.5 
     billion.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would increase the Department's disposal 
     authority from $1.1 billion to $1.4 billion.
       We note that in June 2008 the Deputy Under Secretary of 
     Defense for Logistics and Materiel Readiness determined the 
     need to suspend, or limit, the authorized sales of selected 
     materials in the NDS inventory pending a review of critical 
     and strategic materials. This provision is not intended to 
     supersede this determination, but to provide additional 
     authority if the Department's review of materials justifies 
     continued sales.

                Subtitle C--Armed Forces Retirement Home

     Authorization of appropriations for Armed Forces Retirement 
         Home (sec. 1421)
       The House bill contained a provision (sec. 1421) that would 
     authorize $63.0 million to be appropriated for fiscal year 
     2009 from the Armed Forces Retirement Home Trust Fund for the 
     operation of the Armed Forces Retirement Home.
       The Senate bill contained a similar provision (sec. 1421).
       The agreement includes the Senate provision.

  TITLE XV--AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR OPERATION 
              IRAQI FREEDOM AND OPERATION ENDURING FREEDOM

                     Legislative Provisions Adopted

     Authorization of additional appropriations for operations in 
         Afghanistan and Iraq for fiscal year 2009 (sec. 1501)
       The House bill contained a series of provisions (sections 
     1501-1507 and 1509-1515) that would authorize $70.0 billion 
     in fiscal year 2009 appropriations for military operations in 
     Afghanistan and Iraq.
       The Senate bill contained a series of provisions (sections 
     1501-1512) that would authorize $19.9 billion in fiscal year 
     2009 funding for military operations in Afghanistan.
       The Senate bill also contained a series of provisions 
     (sections 1601-1613) that would authorize $49.6 billion in 
     fiscal year 2009 funding for military operations in Iraq.
       The agreement includes a provision that would authorize 
     $66.0 billion in fiscal year 2009 appropriations for 
     operations in Iraq and Afghanistan in accordance with the 
     funding provided in Chapter 2 of title IX of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252).
       The agreement would also authorize $2.1 billion for an 
     additional six C-17 aircraft.
     Requirement for separate display of budgets for Afghanistan 
         and Iraq (sec. 1502)
       The House bill contained a provision (sec. 1002) that would 
     require the Secretary of Defense, for any annual or 
     supplemental budget request of the Department of Defense, to 
     clearly and separately set forth any funding requested for 
     any U.S. operations in Afghanistan.
       The House bill also contained a provision (sec. 1003) that 
     would require a similar separate budget display for 
     operations in Iraq.
       The Senate bill contained a similar provision (sec. 1516) 
     that would require a separate budget display for funding of 
     operations in Afghanistan.
       The agreement combines the House and Senate provisions into 
     a single provision that would require separate budget 
     displays for operations in Afghanistan and operations in 
     Iraq.
     Joint improvised explosive device defeat fund (sec. 1503)
       The House bill contained a provision (sec. 1507) that would 
     authorize funding for the Joint Improvised Explosive Device 
     Defeat Fund (JIEDDF). This section would require that of the 
     funds appropriated to the Joint Improvised Explosive Device 
     Defeat Fund, $50.0 million shall be made available for the 
     rapid fielding of additional Aerial Reconnaissance Multi-
     Sensor platforms for tactical operations in Operation Iraqi 
     Freedom and Operation Enduring Freedom.
       The Senate bill contained two similar provisions (sec. 1505 
     and sec. 1605) both of which would authorize funding for the 
     Joint Improvised Explosive Device Defeat Fund.
       The agreement includes a provision authorizing funding for 
     the Joint Improvised Explosive Device Defeat Fund.
       We urge the Joint Improvised Explosive Device Defeat 
     Organization (JIEDDO) to direct $5.0 million each to ongoing 
     Marine Corps and Army efforts to develop specialized 
     improvised explosive device (IED) dog teams. The Marine Corps 
     program has already deployed IED dog teams embedded with 
     combat forces successfully to Iraq and intends to expand the 
     program. JIEDDO has been funding the development of 
     specialized IED dog team capabilities in the Army ($2.75 
     million in fiscal years 2008 and 2009), and the Army is now 
     fielding its first embedded IED dog team with a Brigade 
     Combat team (BCT). However, the Marine Corps needs additional 
     funds to sustain its research and development program, and 
     the Army will be able to field this counter-IED capability to 
     only one BCT in fiscal year 2009 unless JIEDDO provides 
     additional funds or the Army re-prioritizes its military 
     working dog budget. We direct the director of JIEDDO, the 
     Deputy Chief of Staff of the Army for Intelligence, and the 
     Army Provost Marshal General review this situation and notify 
     the Armed Services Committees of the Senate and the House of 
     Representatives of their decision within 30 days of the 
     enactment of this Act.
       Further, we also urge JIEDDO to continue funding at a level 
     of not less than $65.0 million the ongoing efforts of the 
     Irregular Warfare Support office under the Assistant 
     Secretary of Defense for Special Operations/Low Intensity 
     Conflict.
     Science & technology investment strategy to defeat or counter 
         improvised explosive devices (sec. 1504)
       The House bill contained a provision (sec. 1508) that would 
     limit the amount of funds that the Joint Improvised Explosive 
     Devise Defeat Organization (JIEDDO) may obligate for science 
     and technology (S&T) efforts until it delivers to Congress a 
     report describing its S&T strategy.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would require the Director of JIEDDO, jointly 
     with the Director for Defense Research and Engineering, to 
     develop and deliver to the congressional defense committees 
     an annual report outlining the Department of Defense's (DOD) 
     investment strategy for S&T to defeat and counter improvised 
     explosive devices (IEDs).
       According to DOD Directive 2000.19E, JIEDDO's mission is to 
     ``focus (lead, advocate, coordinate) all DOD actions in 
     support of the Combatant Commanders' and their respective 
     Joint Task Forces' efforts to defeat Improvised Explosive 
     Devices as weapons of strategic influence.'' Even more 
     specifically, it requires the Director of JIEDDO to 
     ``integrate all IED Defeat solutions throughout the 
     Department of Defense, seeking Interagency assistance, as 
     necessary, and identifying innovative near-term solutions.'' 
     While JIEDDO has actively invested in S&T efforts to support 
     its mission, it has neglected its responsibility to lead, 
     advocate and coordinate the Department's total S&T investment 
     in this area. If JIEDDO does not serve in this coordination 
     role, then the likelihood for duplicative and redundant 
     investment with Service and Defense Agencies investments 
     increases dramatically.
     Limitation on Iraq Security Forces Fund (sec. 1505)
       The House bill contained a provision (sec. 1512) that would 
     authorize fiscal year 2009 appropriations for the Iraq 
     Security Forces Fund (ISFF).
       The Senate bill contained a similar provision (sec. 1613).
       The agreement includes a provision that would subject funds 
     authorized in this title for the ISFF to the terms and 
     conditions of the National Defense Authorization Act for 
     Fiscal Year 2008 (Public Law 110-181). The

[[Page 20585]]

     funding authorization for this program is contained in 
     section 1501 of this Act. Additional restrictions on the use 
     of the ISFF for infrastructure projects are contained 
     elsewhere in this Act.
     Limitations on Afghanistan Security Forces Fund (sec. 1506)
       The House bill contained a provision (sec. 1513) that would 
     authorize fiscal year 2009 appropriations for the Afghanistan 
     Security Forces Fund (ASFF).
       The Senate bill contained a similar provision (sec. 1512).
       The agreement includes a provision that would subject funds 
     authorized in this title for the ASFF to the terms and 
     conditions of the National Defense Authorization Act for 
     Fiscal Year 2008 (Public Law 110-181). The funding 
     authorization for the ASFF is contained in section 1501 of 
     this Act.
     Special transfer authority (sec. 1507)
       The House bill contained a provision (sec. 1516) that would 
     authorize the transfer of up to $4.0 billion of war-related 
     funding authorizations in this title among the accounts in 
     this title.
       The Senate bill contained a similar provision (sec. 1514) 
     that would authorize transfers of up to $3.0 billion.
       The agreement includes the House provision.
       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.
     Prohibition on use of United States funds for certain 
         facilities projects in Iraq and contributions by Iraq to 
         combined operations and other activities in Iraq (sec. 
         1508)
       The House bill contained a provision (sec. 1512) that would 
     prohibit the use of certain funds for the acquisition, 
     conversion, rehabilitation, or installation of facilities for 
     the Iraqi Security Forces.
       The Senate bill contained a provision (sec. 1616) that 
     would prohibit the use of funds authorized by this Act to pay 
     for any large-scale infrastructure project commenced after 
     the date of enactment of this Act. The provision would also 
     require the United States Government to begin negotiating an 
     agreement with the Government of Iraq to share the costs of 
     combined operations between the Government of Iraq and Multi-
     National Force Iraq. The provision would further require that 
     the United States Government act to ensure that Iraqi funds 
     are used to pay the costs of training, equipping, and 
     sustaining the Iraqi Security Forces and the costs associated 
     with the Sons of Iraq.
       The agreement includes a provision that would prohibit the 
     use of certain funds for the acquisition, conversion, 
     rehabilitation, or installation of facilities for the use of 
     the Government of Iraq, political subdivisions of Iraq, or 
     agencies, departments or forces of the Government of Iraq or 
     its subdivisions. The provision would also require the United 
     States Government to begin negotiating an agreement with the 
     Government of Iraq to share the costs of combined operations 
     between the Government of Iraq and Multi-National Force-Iraq. 
     The provision would further require that the United States 
     Government act to ensure that Iraqi funds are used to pay the 
     costs of training, equipping, and sustaining the Iraqi 
     Security Forces.


                   Legislative Provisions Not Adopted

     Limitation on use of funds
       The Senate bill contained a provision (sec. 1515) that 
     would require the Secretary of Defense to provide a report to 
     Congress on the allocation of funding for operations in 
     Afghanistan at the line-item level 15 days prior to the 
     obligation of such funds.
       The House bill contained no similar provision.
       The agreement does not include this provision.
     Treatment as additional authorizations
       The House bill contained a provision (sec. 1517) that would 
     provide that the authorizations in this title are in addition 
     to any other authorizations in this Act.
       The Senate bill contained identical provisions relating to 
     funding for military operations in Afghanistan (sec. 1513) 
     and Iraq (sec. 1614).
       The agreement does not include this provision.
     Limitation on use of funds
       The Senate bill contained a provision (sec. 1615) that 
     would require the Secretary of Defense to provide a report to 
     Congress on the allocation of funding for operations in Iraq 
     at the line-item level 15 days prior to the obligation of 
     such funds.
       The House bill contained no similar provision.
       The agreement does not include this provision.

    TITLE XVI--RECONSTRUCTION AND STABILIZATION CIVILIAN MANAGEMENT


                     Legislative Provisions Adopted

     Short title (sec. 1601)

       The House bill contained a provision (sec. 1601) that would 
     provide that the title may be referred to as the 
     ``Reconstruction and Stabilization Civilian Management Act of 
     2008.''

       The Senate bill contained no similar provision.

       The agreement includes the House provision.


     Findings (sec. 1602)

       The House bill contained a provision (sec. 1602) that would 
     contain congressional findings regarding efforts to improve 
     U.S. capacity to prepare, plan for, and conduct stabilization 
     and reconstruction operations.

       The Senate bill contained no similar provision.

       The agreement includes the House provision.

     Definitions (sec. 1603)

       The House bill contained a provision (sec. 1603) that would 
     provide definitions for use in the Act.

       The Senate bill contained no similar provision.

       The agreement includes the House provision.


     Authority to provide assistance for reconstruction and 
         stabilization crises (sec. 1604)

       The House bill contained a provision (sec. 1604) that would 
     amend chapter 1 of part III of the Foreign Assistance Act of 
     1961 (Public Law 87-195) to provide authority for the 
     President to furnish stabilization or reconstruction 
     assistance to a country or region that is at risk of, in, or 
     is in transition from, conflict or civil strife if the 
     President determines it is in the national security interests 
     of the United States for U.S. civilian agencies or non-
     federal employees to do so. The provision also provided that 
     funds available for stabilization and reconstruction 
     assistance under this section would be funds made available 
     under any other provision of law and under other provisions 
     of the Foreign Assistance Act and transferred or reprogrammed 
     for the purposes of this section, subject to the procedures 
     applicable to a notification under section 634A of the 
     Foreign Assistance Act.

       The Senate bill contained no similar provision.

       The agreement includes the House provision with an 
     amendment that would allow funds available for stabilization 
     and reconstruction assistance under this section to be 
     limited to funds made available under other provisions of the 
     Foreign Assistance Act and transferred or reprogrammed for 
     the purposes of this section, subject to the procedures 
     applicable to a notification under section 634A of the 
     Foreign Assistance Act.


     Reconstruction and stabilization (sec. 1605)

       The House bill contained a provision (sec. 1605) that would 
     amend the State Department Basic Authorities Act of 1956 
     (Public Law 84-85) to add a new section establishing within 
     the Department of State the Office of the Coordinator for 
     Reconstruction and Stabilization, and authorize the Secretary 
     of State, in consultation with the Administrator of the U.S. 
     Agency for International Development and the heads of other 
     appropriate U.S. Government agencies, to establish and 
     maintain a Response Readiness Corps to provide assistance in 
     support of reconstruction and stabilization operations.

       The Senate bill contained no similar provision.

       The agreement includes the House provision with a 
     clarifying amendment.


     Authorities related to personnel (sec. 1606)

       The House bill contained a provision (sec. 1606) that would 
     authorize the Secretary of State, or the head of any U.S. 
     agency with respect to personnel of that agency, to extend 
     certain death gratuity, training, and travel expense benefits 
     or privileges, that are provided to members of the Foreign 
     Service under the Foreign Service Act of 1980 (Public Law 96-
     465), to any individual assigned, detailed, or deployed to 
     carry out reconstruction and stabilization activities under 
     the Reconstruction and Stabilization Civilian Management Act 
     of 2008.

       The Senate bill contained no similar provision.

       The agreement includes the House provision.

     Reconstruction and Stabilization Strategy (sec. 1607)

       The House bill contained a provision (sec. 1607) that would 
     require the Secretary of State, in consultation with the 
     Administrator of the U.S. Agency for International 
     Development, to develop an interagency strategy for 
     responding to stabilization and reconstruction operations.

       The Senate bill contained no similar provision.

       The agreement includes the House provision.

     Annual reports to Congress (sec. 1608)

       The House bill contained a provision (sec. 1608) that would 
     require the Secretary of State to report annually to the 
     Committee on Foreign Relations of the Senate and the 
     Committee on Foreign Affairs of the House of Representatives 
     on the implementation of the Reconstruction and Stabilization 
     Civilian Management Act of 2008.

       The Senate bill contained no similar provision.


[[Page 20586]]


       The agreement includes the House provision.

            Division B--Military Construction Authorizations

                     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 2009.
       The Senate bill contained an identical provision (sec. 
     2001).

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[[Page 20605]]

       The agreement includes this provision.
     Expiration of authorizations and amounts required to be 
         specified by law (sec. 2002)
       The House bill contained a provision (sec. 2002) that would 
     establish the expiration date for authorizations in this Act 
     for military construction projects, land acquisition, family 
     housing projects, and contributions to the North Atlantic 
     Treaty Organization infrastructure program, as October 1, 
     2011, or the date of enactment of an act authorizing funds 
     for military construction for fiscal year 2012, whichever is 
     later.
       The Senate bill contained an identical provision (sec. 
     2002).
       The agreement includes this provision.
     Effective date (sec. 2003)
       The Senate bill contained a provision that would provide 
     that titles XXI, XXII, XXIII, XXIV, XXV, XXVI, XXVII, and 
     XXIX of this Act take effect on October 1, 2008, or the date 
     of enactment of this Act, whichever is later.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.

                            TITLE XXI--ARMY


                     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 2009.
       The Senate bill contained a similar provision (sec. 2101).
       The 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 included in the joint explanatory 
     statement 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 2009. It would 
     also authorize funds for facilities that support family 
     housing, including housing management offices and housing 
     maintenance and storage facilities.
       The Senate bill contained an identical provision (sec. 
     2102).
       The agreement includes this provision.
     Improvements to military family housing units (sec. 2103)
       The House bill contained a provision (sec. 2103) that would 
     authorize funding for fiscal year 2009 to improve existing 
     Army family housing units.
       The Senate bill contained an identical provision (sec. 
     2103).
       The 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 2009. This provision would also provide an 
     overall limit on the cost of the fiscal year 2009 military 
     construction and family housing projects authorized for the 
     active-duty component of the Army.
       The Senate bill contained a similar provision (sec. 2104).
       The agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2008 projects (sec. 2105)
       The House bill contained a provision (sec. 2105) that would 
     cancel the authorization for several fiscal year 2008 
     military construction projects.
       The Senate bill contained no similar provision.
       The agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2007 projects (sec. 2106)
       The House bill contained a provision (sec. 2106) that would 
     modify the authorization for several fiscal year 2007 
     military construction projects.
       The Senate bill contained no similar provision.
       The agreement includes this provision.
     Extension of authorizations of certain fiscal year 2006 
         projects (sec. 2107)
       The House bill contained a provision (sec. 2107) that would 
     extend the authorization for certain Army fiscal year 2006 
     military construction projects until October 1, 2009, or the 
     date of enactment of an act authorizing funds for military 
     construction for fiscal year 2010, whichever is later.
       The Senate bill contained a similar provision (sec. 2105).
       The agreement includes the House provision.
     Extension of authorizations of certain fiscal year 2005 
         project (sec. 2108)
       The House bill contained a provision (sec. 2108) that would 
     extend the authorization for an Army fiscal year 2005 
     military construction project at Schofield Barracks, Hawaii, 
     until October 1, 2009, or the date of enactment of an act 
     authorizing funds for military construction for fiscal year 
     2010, whichever is later.
       The Senate bill contained a similar provision (sec. 2106).
       The agreement includes the House provision.

                            TITLE XXII--NAVY


                     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 2009.
       The Senate bill contained a similar provision (sec. 2201).
       The 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 included in the joint explanatory 
     statement 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 2009. It would 
     also authorize funds for facilities that support family 
     housing, including housing management offices and housing 
     maintenance and storage facilities.
       The Senate bill contained a similar provision (sec. 2202).
       The agreement includes the Senate provision.
     Improvements to military family housing units (sec. 2203)
       The House bill contained a provision (sec. 2203) that would 
     authorize funding for fiscal year 2009 to improve existing 
     Navy and Marine Corps family housing units.
       The Senate bill contained an identical provision (sec. 
     2203).
       The 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 2009. This provision would also 
     provide an overall limit on the cost of the fiscal year 2009 
     military construction and family housing projects authorized 
     for the active-duty component of the Navy and Marine Corps.
       The Senate bill contained a similar provision (sec. 2204).
       The agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2005 project (sec. 2205)
       The House bill contained a provision (sec. 2205) that would 
     increase the authorization for a Strategic Weapons Facility 
     Pacific project at Bangor, Washington.
       The Senate bill contained an identical provision (sec. 
     2205).
       The agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2007 projects (sec. 2206)
       The House bill contained a provision (sec. 2206) that would 
     increase the authorization for projects at the Naval Support 
     Activity, Suitland, Maryland, and at Naval Air Station, 
     Whidbey Island, Washington.
       The Senate bill contained an identical provision (sec. 
     2206).
       The agreement includes this provision.


                   Legislative Provision Not Adopted

     Report on impacts of surface ship homeporting alternatives
       The House bill contained a provision (sec. 2207) that would 
     prohibit the Secretary of the Navy from issuing a record of 
     decision for the proposed homeporting of additional ships at 
     Naval Station Mayport until at least 30 days after the date 
     on which the Secretary submits a report on the socio-economic 
     impact and economic justification of the preferred 
     alternatives identified in the final environmental impact 
     statement.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.

                         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 2009.
       The Senate bill contained a similar provision (sec. 2301).
       The 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 included in the joint explanatory 
     statement 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 2009. It 
     would also authorize funds for facilities that support family 
     housing, including housing management offices and housing 
     maintenance and storage facilities.
       The Senate bill contained an identical provision (sec. 
     2302).
       The agreement includes this provision.

[[Page 20606]]


     Improvements to military family housing units (sec. 2303)
       The House bill contained a provision (sec. 2303) that would 
     authorize funding for fiscal year 2009 to improve existing 
     Air Force family housing units.
       The Senate bill contained an identical provision (sec. 
     2303).
       The 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 2009. This provision would also provide an 
     overall limit on the cost of the fiscal year 2009 military 
     construction and family housing projects authorized for the 
     active-duty component of the Air Force.
       The Senate bill contained a similar provision (sec. 2304).
       The agreement includes this provision.
     Extension of authorizations of certain fiscal year 2006 
         projects (sec. 2305)
       The House bill contained a provision (sec. 2305) that would 
     extend the authorizations for certain Air Force fiscal year 
     2006 military construction projects until October 1, 2009, or 
     the date of enactment of an act authorizing funds for 
     military construction for fiscal year 2010, whichever is 
     later.
       The Senate bill contained an identical provision (sec. 
     2305).
       The agreement includes this provision.
     Extension of authorizations of certain fiscal year 2005 
         projects (sec. 2306)
       The House bill contained a provision (sec. 2306) that would 
     extend the authorizations for certain Air Force fiscal year 
     2005 military construction projects until October 1, 2009, or 
     the date of enactment of an act authorizing funds for 
     military construction for fiscal year 2010, whichever is 
     later.
       The Senate bill contained a similar provision (sec. 2306).
       The agreement includes the Senate provision.

                      TITLE XXIV--DEFENSE AGENCIES

               Subtitle A--Defense Agency Authorizations

     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 2009.
       The Senate bill contained a similar provision (sec. 2401).
       The 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 included in the joint explanatory 
     statement 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 bill contained a similar provision (sec. 2402).
       The agreement includes the Senate provision.
     Authorization of appropriations, defense agencies (sec. 2403)
       The House bill contained a provision (sec. 2403) that would 
     authorize appropriations for the military construction 
     projects of the defense agencies for fiscal year 2009. This 
     provision would also provide an overall limit on the cost of 
     the fiscal year 2009 military construction projects 
     authorized for the defense agencies.
       The Senate bill contained a similar provision (sec. 2403).
       The agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2007 projects (sec. 2404)
       The House bill contained a provision (sec. 2404) that would 
     amend section 2401 of the Military Construction Authorization 
     Act for Fiscal Year 2007 (division B of Public Law 109-364) 
     to increase the construction authorization for a project at 
     Fort Detrick, Maryland by $133.0 million.
       The Senate bill contained a similar provision (sec. 2404)
       The agreement includes the House provision.
     Modification of authority to carry out certain fiscal year 
         2005 projects (sec. 2405)
       The House bill contained a provision (sec. 2405) that would 
     terminate the military construction authorization provided in 
     the Military Construction Authorization Act for Fiscal Year 
     2005 (division B of Public Law 108-375) for a project at the 
     Defense Fuel Supply Point at Naval Air Station Oceana, 
     Virginia.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Extension of authorization of certain fiscal year 2006 
         project (sec. 2406)
       The House bill contained a provision (sec. 2406) that would 
     extend the authorization for a fiscal year 2006 military 
     construction project for the Defense Logistics Agency until 
     October 1, 2009, or the date of enactment of an act 
     authorizing funds for military construction for fiscal year 
     2010, whichever is later.
       The Senate bill contained an identical provision (sec. 
     2405).
       The agreement includes this provision.

          Subtitle B--Chemical Demilitarization Authorizations

     Authorized chemical demilitarization program construction and 
         land acquisition projects (sec. 2411)
       The House bill contained a provision (sec. 2411) that would 
     authorize military construction projects for the chemical 
     demilitarization program for fiscal year 2009.
       The Senate bill contained an identical provision (sec. 
     2411).
       The agreement includes this provision.
       The authorized amounts are listed on an installation-by-
     installation basis in this provision.
     Authorization of appropriations, chemical demilitarization 
         construction, defense-wide (sec. 2412)
       The House bill contained a provision (sec. 2412) that would 
     authorize specific appropriations for each line item 
     contained in the budget request for fiscal year 2009 for the 
     chemical demilitarization construction. This section would 
     also provide overall limit on the amount the chemical 
     demilitarization office may spend on military construction 
     projects.
       The Senate bill contained a similar provision (sec. 2412).
       The agreement includes the Senate provision with an 
     amendment making a technical correction.
     Modification of authority to carry out certain fiscal year 
         1997 project (sec. 2413)
       The House bill contained a provision (sec. 2413) that would 
     modify the authorization for a chemical demilitarization 
     construction project at Pueblo Army Depot, Colorado.
       The Senate bill contained an identical provision (sec. 
     2413).
       The agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2000 project (sec. 2414)
       The House bill contained a provision (sec. 2414) that would 
     modify the authorization for a chemical demilitarization 
     construction project at Blue Grass Army Depot, Kentucky.
       The Senate bill contained an identical provision (sec. 
     2414).
       The agreement includes this provision.

   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 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 bill contained an identical provision (sec. 
     2501).
       The agreement includes this provision.
     Authorization of appropriations, NATO (sec. 2502)
       The House bill contained a provision (sec. 2502) that would 
     authorize appropriations for the United States' contribution 
     to the North Atlantic Treaty Organization Security Investment 
     Program for fiscal year 2009.
       The Senate bill contained an identical provision (sec. 
     2502).
       The agreement includes this provision.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES


                     Legislative Provisions Adopted

     Authorized Army National Guard construction and land 
         acquisition projects (sec. 2601)
       The House bill contained a provision (sec. 2601) that would 
     authorize military construction projects for the Army 
     National Guard for fiscal year 2009.
       The Senate bill contained a similar provision (sec. 2601).
       The 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 included in the joint explanatory 
     statement provides the binding list of specific construction 
     projects authorized at each location.
     Authorized Army Reserve construction and land acquisition 
         projects (sec. 2602)
       The House bill contained a provision (sec. 2602) that would 
     authorize military construction projects for the Army Reserve 
     for fiscal year 2009.
       The Senate bill contained a similar provision (sec. 2602).
       The 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 included in the joint explanatory 
     statement provides the binding list of specific construction 
     projects authorized at each location.

[[Page 20607]]


     Authorized Navy Reserve and Marine Corps Reserve construction 
         and land acquisition projects (sec. 2603)
       The House bill contained a provision (sec. 2603) that would 
     authorize military construction projects for the Navy Reserve 
     and Marine Corps Reserve for fiscal year 2009.
       The Senate bill contained an identical provision (sec. 
     2603).
       The 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 included in the joint explanatory 
     statement provides the binding list of specific construction 
     projects authorized at each location.
     Authorized Air National Guard construction and land 
         acquisition projects (sec. 2604)
       The House bill contained a provision (sec. 2604) that would 
     authorize military construction projects for the Air National 
     Guard for fiscal year 2009.
       The Senate bill contained a similar provision (sec. 2604).
       The 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 included in the joint explanatory 
     statement provides the binding list of specific construction 
     projects authorized at each location.
     Authorized Air Force Reserve construction and land 
         acquisition projects (sec. 2605)
       The House bill contained a provision (sec. 2605) that would 
     authorize military construction projects for the Air Force 
     Reserve for fiscal year 2009.
       The Senate bill contained a similar provision (sec. 2605).
       The 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 included in the joint explanatory 
     statement 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. 2606) that would 
     authorize appropriations for reserve component military 
     construction projects for fiscal year 2009.
       The Senate bill contained a similar provision (sec. 2606).
       The agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2008 project (sec. 2607)
       The Senate bill contained a provision (sec. 2609) that 
     would amend section 2601 of the Military Construction 
     Authorization Act for Fiscal Year 2008 (division B of Public 
     Law 110-181) to increase the authorization for a project for 
     the Army National Guard at North Kingstown, Rhode Island, by 
     $5.0 million.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Extension of authorizations of certain fiscal year 2006 
         projects (sec. 2608)
       The House bill contained a provision (sec. 2607) that would 
     extend the authorizations for certain Guard and reserve 
     fiscal year 2006 military construction projects until October 
     1, 2009, or the date of enactment of an act authorizing funds 
     for military construction for fiscal year 2010, whichever is 
     later.
       The Senate bill contained an identical provision (sec. 
     2607).
       The agreement includes that provision.
     Extension of authorization of certain fiscal year 2005 
         project (sec. 2609)
       The House bill contained a provision (sec. 2608) that would 
     extend the authorization for an Army National Guard fiscal 
     year 2005 military construction project in California until 
     October 1, 2009, or the date of enactment of an act 
     authorizing funds for military construction for fiscal year 
     2010, whichever is later.
       The Senate bill contained an identical provision (sec. 
     2608).
       The agreement includes this provision.

         TITLE XXVII--BASE CLOSURE AND REALIGNMENT ACTIVITIES 

                       Subtitle A--Authorizations

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[[Page 20616]]

     Authorization of appropriations for base closure and 
         realignment activities funded through Department of 
         Defense base closure account 1990 (sec. 2701)
       The House bill contained a provision (sec. 2701) that would 
     authorize appropriations for fiscal year 2009 for ongoing 
     activities that are required to implement the decisions of 
     the 1988, 1991, 1993, and 1995 base realignment and closure 
     (BRAC) rounds.
       The Senate bill contained an identical provision (sec. 
     2701).
       The agreement includes this provision.
     Authorized base closure and realignment activities funded 
         through Department of Defense base closure account 2005 
         (sec. 2702)
       The House bill contained a provision (sec. 2702) that would 
     authorize military construction projects for fiscal year 2009 
     that are required to implement the decisions of the 2005 Base 
     Realignment and Closure (BRAC) round.
       The Senate bill included a similar provision (sec. 2702).
       The agreement includes the Senate provision.
       The table included in the joint explanatory statement lists 
     the specific projects 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. 2703) that would 
     authorize appropriations for military construction projects 
     for fiscal year 2009 that are required to implement the 
     decisions of the 2005 Base Realignment and Closure (BRAC) 
     round. This provision would also provide an overall limit on 
     the amount authorized for BRAC military construction 
     projects.
       The Senate bill contained a similar provision (sec. 2703).
       The agreement includes this provision.
       The State list contained in this joint explanatory 
     statement is the binding list of the specific amounts 
     authorized at each location.

        Subtitle B--Amendments to Base Closure and Related Laws

     Modification of annual base closure and realignment reporting 
         requirements (sec. 2711)
       The House bill contained a provision (sec. 2712) that would 
     modify the annual reporting requirements associated with the 
     2005 round of the Defense Base Closure and Realignment Act of 
     1990 (Public Law 101-510).
       The Senate bill contained a similar provision (sec. 2704)
       The agreement includes the House provision.
     Technical corrections regarding authorized cost and scope of 
         work variations for military construction and military 
         family housing projects related to base closures and 
         realignments (sec. 2712)
       The House bill contained a provision (sec. 2713) that would 
     make technical corrections to the Base Closure and 
     Realignment Act notification requirements for cost and scope 
     of work variations.
       The Senate bill contained a similar provision (sec. 2705).
       The agreement includes the House provision.

                       Subtitle C--Other Matters

     Independent design review of National Naval Medical Center 
         and military hospital at Fort Belvoir (sec. 2721)
       The House bill contained a provision (sec. 2721) that would 
     direct the Department of Defense to cease construction of the 
     replacement facilities until the Secretary of Defense 
     certifies the following items have been completed: a 90 
     percent construction design; an independent cost estimate to 
     complete the realignment of the Walter Reed Army Medical 
     Center; and a milestone schedule to complete the proposed 
     realignment.
       The Senate bill contained no similar provision.
       The agreement includes a provision that would state 
     congressional findings and would require an independent 
     design review of the new medical facilities, a new cost 
     estimate, and a schedule for the transition of operations to 
     the new facilities. The agreement is not intended to cease 
     construction of replacement facilities related to the closure 
     of Walter Reed Army Medical Center.
     Report on use of BRAC properties as sites for refineries or 
         nuclear power plants (sec. 2722)
       The House bill contained a provision (sec. 2722) that would 
     require a study evaluating the feasibility of using military 
     installations selected for closure under the base closure and 
     realignment process as locations for the construction of 
     petroleum or natural gas refineries or nuclear power plants.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.


                   Legislative Provision Not Adopted

     Repeal of commission approach for development of 
         recommendations in any future round of base closures and 
         realignments
       The House bill contained a provision (sec. 2711) that 
     would, with respect to any future base closure round, repeal 
     the independent commission that is provided for under the 
     Defense Base Closure and Realignment Act of 1990 (Public Law 
     101-510).
       The Senate bill contained no similar provision.
       The agreement does not include the provision.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

     Incorporation of principles of sustainable design in 
         documents submitted as part of proposed military 
         construction projects (sec. 2801)
       The House bill contained a provision (sec. 2801) that would 
     require the Department of Defense to incorporate sustainable 
     design concepts and life cycle analysis into a review of 
     options that would be submitted with the annual budget 
     documents.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Revision of maximum lease amount applicable to certain 
         domestic Army family housing leases to reflect previously 
         made annual adjustments in amount (sec. 2802)
       The House bill contained a provision (sec. 2803) that would 
     increase the maximum lease amount available to Army family 
     housing leases from $18,620 per unit to $35,000 per unit.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Use of military family housing constructed under build and 
         lease authority to house members without dependents (sec. 
         2803)
       The House bill contained a provision (sec. 2804) that would 
     allow service members without dependents to be assigned to 
     quarters leased pursuant to section 2835 of title 10, United 
     States Code. This authority would also allow the conversion 
     of the family housing units, previously provided by the 
     build-to-lease authority, to military unaccompanied housing.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Leasing of military family housing to Secretary of Defense 
         (sec. 2804)
       The House bill contained a provision (sec. 2805) that would 
     allow the Secretary of Defense to lease military family 
     housing in the National Capital Region.
       The Senate bill contained a similar provision (sec. 2804).
       The agreement includes the Senate provision.
     Improved oversight and accountability for military housing 
         privatization initiative projects (sec. 2805)
       The House bill contained a provision (sec. 2807) that would 
     modify the existing privatization authorities and provide 
     better visibility over, and management of privatization 
     projects. Specifically, it would: require the Department of 
     Defense to partner with the family housing developer; require 
     100 percent performance and payment bonds; require 
     competition for conveyance actions; repeal the authority to 
     assign service members to privatized family housing; and 
     require additional reporting associated with general and flag 
     officer quarters.
       The House bill also contained a provision (sec. 2808) that 
     would require a report on best business practices for the 
     execution of housing privatization initiatives.
       The Senate bill contained a provision (sec. 2803) that 
     would require enhanced oversight of, and reporting on, 
     housing privatization projects. The provision would require 
     greater interaction among the government and private entities 
     involved in these projects, establish minimum bonding levels 
     of 50 percent, specify procedures to be used in the case of 
     significant schedule or performance deficiencies, ensure that 
     the Department of Defense maintains a database of entities 
     that achieve unsatisfactory performance ratings on such 
     projects, and require the Department to identify and 
     establish regulations to implement best practices for 
     monitoring the progress and performance of housing 
     privatization projects.
       The agreement includes elements of the House and the Senate 
     provisions.
     Authority to use operation and maintenance funds for 
         construction projects inside the United States Central 
         Command and United States Africa Command areas of 
         responsibility (sec. 2806)
       The House bill contained a provision (sec. 2802) that would 
     extend the current use of operations and maintenance funds to 
     meet urgent military construction requirements outside the 
     United States for 1 year, through fiscal year 2009.
       The Senate bill contained a similar provision (sec. 2802) 
     that would exempt projects in Afghanistan from the 
     restriction against the use of this authority at 
     installations where the Department of Defense anticipates 
     having a long term presence. The Senate bill would also 
     modify the quarterly reporting requirement on the use of this 
     authority.
       The agreement includes the Senate provision with an 
     amendment that would provide an additional of $300.0 million 
     of authority for fiscal year 2009 that would be available

[[Page 20617]]

     only for urgent operational requirements in Afghanistan. The 
     agreement would also restrict the use of this authority to 
     the Central Command and Africa Command areas of 
     responsibility.
     Cost-benefit analysis of dissolution of Patrick Family 
         Housing LLC (sec. 2807)
       The Senate bill contained a provision (sec. 2805) that 
     would require the Secretary of the Air Force to submit to the 
     congressional defense committees a cost-benefit analysis 
     regarding the dissolution of the Patrick Family Housing LLC 
     created in connection with the privatization of military 
     family housing at Patrick Air Force Base, Florida, and would 
     prohibit the Secretary from dissolving that entity until this 
     analysis has been submitted.
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that requires the cost-benefit analysis be 
     submitted within 30 days of the date of enactment of this 
     Act, but would not restrict the dissolution of the LLC.

        Subtitle B--Real Property and Facilities Administration

     Clarification of congressional reporting requirements for 
         certain real property transactions (sec. 2811)
       The House bill contained a provision (sec. 2811) that would 
     clarify reporting requirements associated with civil works 
     and other real estate transactions.
       The Senate bill contained a similar provision (sec. 2812).
       The agreement contains the Senate provision.
     Authority to lease non-excess property of military 
         departments and Defense Agencies (sec. 2812)
       The House bill contained a provision (sec. 2812) that would 
     modify the Department of Defense's leasing authority and 
     restrict certain uses of that authority. Specifically, the 
     Department would be limited to leases of less than 50 years, 
     and would be limited on the use of proceeds derived from 
     leases. Also, the secretaries concerned would be required to 
     determine that property is not excess and would be required 
     to provide expanded notifications to the congressional 
     defense committees during the course of the lease review 
     process. The House bill would also prohibit the acceptance of 
     in-kind consideration for morale, welfare and recreation 
     activities. Finally, the secretary would be required to 
     submit a report 30 days before the secretary enters into a 
     lease that describes the agreement reached with the local 
     municipality on taxation issues and further describes the 
     proposed lessee payment.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that removes the restrictions on leases over 50 
     years and on receipt of in-kind consideration related to 
     morale, welfare and recreation activities and makes other 
     technical changes.
     Modification of utility system conveyance authority (sec. 
         2813)
       The House bill contained a provision (sec. 2813) that would 
     modify the existing utility privatization authorities and 
     provide the secretary concerned the discretion to convey 
     additional, discrete utility elements without competition to 
     an existing utility privatization interest, if certain 
     criteria are met.
       The Senate bill contained no similar provision.
       The agreement contains the House provision with an 
     amendment to the criteria for conveyances of additional 
     elements of a utility system.
     Defense access roads (sec. 2814)
       The House bill included a provision (sec. 2815) that would 
     require a needs assessment of the improvements needed in 
     cases where the Secretary of Defense determines that a 
     Department of Defense action has caused a significant 
     transportation impact. The House bill would also require the 
     Secretary of Defense to submit to the congressional defense 
     committees and the Committee on Transportation and 
     Infrastructure of the House of Representatives a report that 
     details the significant transportation impacts resulting from 
     actions of the Department of Defense since January 1, 2005.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
       The current Defense Access Road (DAR) eligibility criteria 
     contained in the Federal-aid Policy Guide of the Federal 
     Highway Administration do not consider the full range of 
     transportation impacts or requirements. We are aware that the 
     criteria currently do not account for safety and security 
     concerns for local roads, even though certain DAR projects 
     have been carried out in the past 5 years in order to correct 
     significant deficiencies threatening the safety of military 
     personnel. The Department of Defense is strongly encouraged 
     to consider incorporating the standards put forth by the 
     Transportation Research Board, which serves as an independent 
     adviser to the President, Congress, and federal agencies on 
     scientific and technical questions, in the Highway Capacity 
     Manual. This manual contains state-of-the-art techniques for 
     estimating road capacity and determining levels of service 
     for transportation facilities and modes. These techniques 
     have been adopted by the Federal Highway Administration as a 
     basis for assessing road requirements based on current 
     congestion and saturation levels for traffic flows on public 
     roads.
     Report on application of force protection and anti-terrorism 
         standards to gates and entry points on military 
         installations (sec. 2815)
       The Senate bill contained a provision (sec. 2841) that 
     would require the Secretary of Defense to submit to the 
     congressional defense committees, not later than February 1, 
     2009, a report on the implementation of Department of Defense 
     anti-terrorism/force protection (AT/FP) standards for main 
     gates or entry points of military installations.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
       We recognize the importance of AT/FP measures for 
     Department of Defense installations and facilities. We are 
     concerned that adequate funding has not been requested to 
     construct permanent facilities and infrastructure, including 
     fences, physical anti-terrorism barriers, large vehicle 
     inspection stations, and reinforced, blast-protected 
     facilities for guards since updated AT/FP standards were 
     adopted by the Department of Defense in 2003. Timely funding 
     of these requirements is necessary to protect the safety and 
     welfare of service members and their families. We expect the 
     Department of Defense to include, in conjunction with this 
     report, funding in the fiscal year 2010 budget and future-
     years defense program to ensure that main gates and entry 
     points at military installations comply with AT/FP standards.

           Subtitle C--Provisions Related to Guam Realignment

     Sense of Congress regarding military housing and utilities 
         related to Guam realignment (sec. 2821)
       The House bill contained a provision (sec. 2822) that would 
     express the sense of Congress that the Special Purpose 
     Entities proposed to support military family members in Guam 
     should closely follow the model and standards associated with 
     the privatized family housing initiative authorized by 
     subchapter IV of chapter 169 of title 10, United States Code. 
     Furthermore, it would express the sense of Congress that the 
     military and civilian utility systems on Guam should be 
     integrated to maximize effectiveness of the overall system.
       The Senate bill contained no similar provision.
       The agreement contains the House provision with an 
     amendment that would modify the sense of Congress to state 
     that any integration of the utility infrastructure should be 
     subject to appropriate cost-sharing and quality standards.
     Federal assistance to Guam (sec. 2822)
       The House bill contained a provision (sec. 2823) that would 
     express the sense of Congress that the Secretary of Defense, 
     in coordination with the Interagency Group on Insular 
     Affairs, should enter into a memorandum of understanding with 
     the Government of Guam to identify civilian infrastructure 
     associated with the capabilities expansion on Guam.
       The House bill also contained a provision (sec. 2824) that 
     would require the Comptroller General to submit a report on 
     the status of interagency coordination related to the 
     realignment of military forces in Guam.
       The Senate bill contained no similar provisions.
       The agreement modifies and combines the House provisions.
     Eligibility of the Commonwealth of the Northern Mariana 
         Islands for military base reuse studies and community 
         planning assistance (sec. 2823)
       The House bill contained a provision (sec. 2827) that would 
     authorize the Commonwealth of the Northern Mariana Islands to 
     be eligible to receive military base reuse studies and 
     community planning assistance.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Support for realignment of military installations and 
         relocation of military personnel on Guam (sec. 2824)
       The House bill contained a provision (sec. 2821) that would 
     establish an account for the purposes of centralizing 
     management and oversight of funding related to the 
     realignment of military installations on Guam and the 
     relocation of military personnel to Guam.
       The Senate bill contained no similar provision.
       The agreement contains the House provision with amendments 
     to the procedures under which the fund would operate. The 
     agreement also states the sense of Congress regarding the 
     participation of United States firms in projects related to 
     this relocation.

                      Subtitle D--Energy Security

     Certification of enhanced use leases for energy-related 
         projects (sec. 2831)
       The House bill contained a provision (sec. 2841) that would 
     require that, if a proposed enhanced use lease involves a 
     project related

[[Page 20618]]

     to energy production, and the term of the lease exceeds 20 
     years, the secretary of a military department may not enter 
     into the lease until 30 days after the Secretary of Defense 
     certifies to the congressional defense committees that the 
     lease is consistent with the Department of Defense energy 
     performance goals and the plan required by section 2911 of 
     title 10, United States Code.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Annual report on Department of Defense installations energy 
         management (sec. 2832)
       The House bill contained a provision (sec. 2842) that would 
     require the Secretary of Defense to report on efforts taken 
     to meet the new energy goals set forth in the Energy 
     Independence and Security Act of 2007 (Public Law 110-140) 
     and on efforts to meet certification requirements for 
     sustainable green-building standards for construction and 
     major renovations.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would clarify that the report should describe 
     Department of Defense efforts to meet the requirements in 
     section 433 of Public Law 110-140.

                      Subtitle E--Land Conveyances

     Land conveyance, former Naval Air Station, Alameda, 
         California (sec. 2841)
       The House bill contained a provision (sec. 2851) that would 
     require the Secretary of the Navy to convey the Former Naval 
     Air Station, Alameda, California, to the Alameda Reuse and 
     Redevelopment Authority, except those lands designated as 
     public benefit conveyances and certain other surplus lands.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would permit rather than require the 
     conveyance of the property and would make other technical 
     changes regarding the form of the consideration for the 
     property to be conveyed.
     Transfer of administrative jurisdiction, decommissioned Naval 
         Security Group Activity, Skaggs Island, California (sec. 
         2842)
       The House bill contained a provision (sec. 2860) that would 
     direct the Secretary of the Navy and the Secretary of the 
     Interior to negotiate a memorandum of agreement that 
     stipulates the conditions upon which the decommissioned Naval 
     Security Group Activity, Skaggs Island, Sonoma, California 
     would be transferred from the administrative jurisdiction of 
     the Department of the Navy to the United States Fish and 
     Wildlife Service for inclusion in the National Wildlife 
     Refuge System.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Transfer of proceeds from property conveyance, Marine Corps 
         Logistics Base, Albany, Georgia (sec. 2843)
       The Senate bill contained a provision (sec. 2821) that 
     would allow the Secretary of Defense to transfer the proceeds 
     from the sale of the Boyett Village Housing Complex at the 
     Marine Corps Logistics Base Albany, Georgia, into the Family 
     Housing Improvement Fund for carrying out military family 
     housing privatization activities.
       The House bill contained no similar provision.
       The agreement includes the Senate provision, but does not 
     direct the Department of Defense to comply with the use of 
     proceeds suggested in the Senate report.
     Land conveyance, Sergeant First Class M.L. Downs Army Reserve 
         Center, Springfield, Ohio (sec. 2844)
       The House bill contained a provision (sec. 2855) that would 
     authorize the Secretary of the Army to convey the Sergeant 
     First Class M.L. Downs Army Reserve Center, Springfield, Ohio 
     to the City of Springfield, Ohio for use for municipal 
     government services.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Land conveyance, John Sevier Range, Knox county, Tennessee 
         (sec. 2845)
       The House bill contained a provision (sec. 2856) that would 
     authorize the Secretary of the Army to convey 124 acres known 
     as the John Sevier Range in Knox County, Tennessee, to the 
     State of Tennessee for use as a public firing range and for 
     associated recreational activities.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.
     Land conveyance, Army property, Camp Williams, Utah (sec. 
         2846)
       The House bill contained a provision (sec. 2858) that would 
     authorize the Secretary of the Army to convey 608 acres and 
     308 acres, respectively, to the State of Utah for military 
     use by the Utah National Guard at Camp Williams, Utah.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would add a condition to the conveyance and 
     make other technical changes.
     Extension of Potomac Heritage National Scenic Trail through 
         Fort Belvoir, Virginia (sec. 2847)
       The House bill contained a provision (sec. 2859) that would 
     authorize the Secretary of the Army to enter into a 
     revocable-at-will easement with the Secretary of the Interior 
     to provide land along the perimeter of Fort Belvoir, 
     Virginia, to be used to extend the Potomac Heritage National 
     Scenic Trail.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a 
     clarifying amendment.

                       Subtitle F--Other Matters

     Revised deadline for transfer of Arlington Naval Annex to 
         Arlington National Cemetery (sec. 2851)
       The House bill contained a provision (sec. 2871) 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, 2011, to no later than 
     January 1, 2012.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Acceptance and use of gifts for construction of additional 
         building at National Museum of the United States Air 
         Force, Wright-Patterson Air Force Base (sec. 2852)
       The House bill contained a provision (sec. 2873) that would 
     authorize the Secretary of the Air Force to accept a gift 
     from the Air Force Museum Foundation that would allow 
     construction of the fourth building for the National Museum 
     of the United States Air Force at Wright-Patterson Air Force 
     Base, Ohio.
       The Senate bill contained no similar provision.
       The agreement contains the House provision with an 
     amendment that would require all funds used for design, 
     construction, and contract management of the fourth building 
     to come from gifts, or the proceeds of the investment of 
     those gifts.
     Lease involving pier on Ford Island, Pearl Harbor Naval Base, 
         Hawaii (sec. 2853)
       The House bill contained a provision (sec. 2875) that would 
     direct the Secretary of the Navy to enter into a 2 year lease 
     with the USS Missouri Memorial Association to use a pier on 
     Ford Island, Hawaii.
       The Senate bill contained no similar provision.
       The agreement contains the House provision with an 
     amendment that would require as a condition of the lease that 
     the Navy be allowed the use of the ex-USS Missouri, and of 
     the property leased to the Association, at no cost.
     Use of runway at NASJRB Willow Grove, Pennsylvania (sec. 
         2854)
       The House bill contained a provision (sec. 1076) that would 
     limit commercial use of the airfield at NASJRB Willow Grove, 
     Pennsylvania.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Naming of health facility, Fort Rucker, Alabama (sec. 2855)
       The House bill contained a provision (sec. 2876) that would 
     designate a health facility at Fort Rucker, Alabama, as the 
     ``Lyster Army/VA Health Clinic.''
       The Senate bill contained no similar provision.
       The agreement includes the House provision.


                   legislative provisions not adopted

     Increase in threshold for unspecified minor military 
         construction projects
       The Senate bill contained a provision (sec. 2801) that 
     would amend section 2805(a)(1) of title 10, United States 
     Code, by raising the cost ceiling of a construction project 
     authorized by this section from $2.0 million to $3.0 million. 
     This provision would also eliminate the separate threshold 
     for projects intended solely to correct deficiencies that are 
     life-threatening, health-threatening, or safety-threatening.
       The House bill contained no similar provision.
       The agreement does not include the Senate provision.
     Repeal of reporting requirement in connection with 
         installation vulnerability assessments
       The House bill contained a provision (sec. 2806) that would 
     repeal a reporting requirement regarding installation 
     vulnerability assessments.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.
     Modification of land management restrictions applicable to 
         Utah national defense lands
       The Senate bill contained a provision (sec. 2813) 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.

[[Page 20619]]

       The House bill contained no similar provision.
       The agreement does not include the provision.
     Permanent authority to purchase municipal services for 
         military installations
       The House bill contained a provision (sec. 2814) that would 
     extend the authority of the Secretary of the Army to purchase 
     local government services for Department of Defense 
     installations from the neighboring local governments to the 
     other military departments. This provision would also make 
     this authority permanent and would restrict the services that 
     could be purchased to refuse collection and disposal.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.
     Protecting private property rights during Department of 
         Defense land acquisitions
       The House bill contained a provision (sec. 2816) that would 
     direct officials of the Department of Defense to make every 
     effort to acquire real property by negotiation.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.
     Energy and environmental design initiatives in Guam military 
         construction and installations
       The House bill contained a provision (sec. 2825) that would 
     require that facilities constructed to support the military 
     expansion at Guam have energy efficiencies and energy 
     conservation measures incorporated into the overall design 
     process. Specifically, this section would require that 
     military construction projects on Guam incorporate Leadership 
     in Energy and Environmental Design to achieve not less than 
     the U.S. Green Building Council silver standard for new 
     construction.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.
     Department of Defense Inspector General report regarding Guam 
         realignment
       The House bill contained a provision (sec. 2826) that would 
     require the Inspector General of the Department of Defense to 
     submit a report to Congress within 180 days of the date of 
     enactment of this Act on the efforts of the Inspector General 
     to address potential waste and fraud associated with the 
     realignment of military forces in Guam.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.
     Prevailing wage applicable to Guam
       The House bill contained a provision (sec. 2828) that would 
     make the requirements of subchapter IV of chapter 31 of title 
     40, United States Code, applicable to military construction 
     of any facilities on Guam.
       The Senate bill contained no similar provision.
       The agreement does not include this provision.
     Expansion of authority of the military departments to develop 
         energy on military lands
       The Senate bill contained a provision (sec. 2831) that 
     would enable the Secretary of Defense to enter long-term 
     contracts for renewable energy from resources developed on 
     military lands.
       The House bill contained no similar provision.
       The agreement does not include the provision.
     Land conveyance, Norwalk Defense Fuel Supply Point, Norwalk, 
         California
       The House bill contained a provision (sec. 2852) that would 
     authorize the Secretary of the Air Force to convey 10 acres 
     at the Norwalk Defense Fuel Supply Point to the City of 
     Norwalk, California, for recreational purposes.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.
     Land conveyance, former Naval Station, Treasure Island, 
         California
       The House bill contained a provision (sec. 2853) that would 
     direct the Secretary of the Navy to convey the former Naval 
     Station Treasure Island, California, to the Treasure Island 
     redevelopment authority.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.
     Condition on lease involving Naval Air Station, Barbers 
         Point, Hawaii
       The House bill contained a provision (sec. 2854) that would 
     require the Secretary of the Navy and Ford Island Properties/ 
     Hunt Development to enter into a memorandum of understanding 
     with the Hawaii Community Development Authority to ensure 
     that the development plan for real property to be conveyed at 
     Barbers Point, Hawaii, conforms to Hawaii Community 
     Development Authority land use controls.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.
     Land conveyance, Bureau of Land Management land, Camp 
         Williams, Utah
       The House bill contained a provision (sec. 2857) that would 
     direct the Secretary of the Interior to convey 431 acres to 
     the State of Utah for military use by the Utah National Guard 
     at Camp Williams, Utah.
       The Senate bill contained no similar provision.
       The agreement does not include this provision.
     Decontamination and use of former bombardment area on island 
         of Culebra
       The House bill contained a provision (sec. 2872) that would 
     amend the Military Construction Authorization Act of 1974 
     (Public Law 93-166) to remove restrictions on environmental 
     remediation of the former bombardment area on the island of 
     Culebra, Puerto Rico.
       The Senate bill contained no similar provision.
       The agreement does not include this provision.
     Establishment of memorial to American Rangers at Fort 
         Belvoir, Virginia
       The House bill contained a provision (sec. 2874) that would 
     authorize the Secretary of the Army to permit the American 
     Ranger Memorial Association, Inc., to establish and maintain 
     a memorial at a suitable location at Fort Belvoir, Virginia.
       The Senate bill contained no similar provision.
       The agreement does not include the House provision.

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

                 Subtitle A--Fiscal Year 2008 Projects

     Authorized Army construction and land acquisition projects 
         (sec. 2901)
       The House bill contained a provision (sec. 2901) that would 
     authorize war-related military construction projects for the 
     Army.
       The Senate bill contained a similar provision (sec. 2901).
       The agreement includes this provision.
       The authorized amounts are listed on an installation-by-
     installation basis in this provision. These authorizations 
     are in addition to the projects and amounts authorized in 
     title XXIX of the Military Construction Authorization Act for 
     Fiscal Year 2008 (division B of Public Law 110-181).
     Authorized Navy construction and land acquisition projects 
         (sec. 2902)
       The House bill contained a provision (sec. 2902) that would 
     authorize war-related military construction projects for the 
     Navy.
       The Senate bill contained a similar provision (sec. 2902).
       The agreement includes this provision.
       The authorized amounts are listed on an installation-by-
     installation basis in this provision. These authorizations 
     are in addition to the projects and amounts authorized in 
     title XXIX of the Military Construction Authorization Act for 
     Fiscal Year 2008 (division B of Public Law 110-181). 
     Authorized Air Force construction and land acquisition 
         projects (sec. 2903)
       The House bill contained a provision (sec. 2903) that would 
     authorize war-related military construction projects of the 
     Air Force.
       The Senate bill contained a similar provision (sec. 2903).
       The agreement includes the Senate provision.
       The authorized amounts are listed on an installation-by-
     installation basis in this provision. These authorizations 
     are in addition to the projects and amounts authorized in 
     title XXIX of the Military Construction Authorization Act for 
     Fiscal Year 2008 (division B of Public Law 110-181).

[[Page 20620]]

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[[Page 20623]]

     Authorized Defense Agencies construction and land acquisition 
         projects (sec. 2904)
       The House bill contained a provision (sec. 2904) that would 
     authorize war-related military construction projects for the 
     defense agencies.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that reduces the amounts authorized.
     Termination of authority to carry out fiscal year 2008 Army 
         projects (sec. 2905)
       The House bill contained a provision (sec. 2905) that would 
     repeal the project authorizations for military construction 
     projects authorized in fiscal year 2008 for which no funds 
     were appropriated.
       The Senate bill contained a similar provision (sec. 2904).
       The agreement includes this provision.

                 Subtitle B--Fiscal Year 2009 Projects

     Authorized Army Construction and land acquisition projects 
         (sec. 2911)
       The Senate bill contained a provision (sec. 2911) that 
     would authorize $450.0 million for military construction 
     projects for the Army for fiscal year 2009. The Senate 
     provision would provide additional funding for warrior 
     transition unit facilities, primarily barracks. The funding 
     would be available 14 days after the Secretary of Defense 
     submits a report to Congress with a description and 
     justification of the specific projects to be funded.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Authorized Navy construction and land acquisition projects 
         (sec. 2912)
       The Senate bill contained a provision (sec. 2912) that 
     would authorize $50.0 million in military construction 
     projects for the Navy for fiscal year 2009. The Senate 
     provision would provide additional funding for warrior 
     transition unit facilities, primarily barracks. The funding 
     would be available 14 days after the Secretary of Defense 
     submits a report to Congress with a description and 
     justification of the specific projects to be funded.
       The House bill contained no similar provision.
       The agreement includes this provision.

 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 2009, 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 of Energy included $16.0 billion for atomic 
     energy defense activities, a 5.6 percent increase above the 
     fiscal year 2008 appropriated level. Of the total amount 
     requested:
       (1) $9.1 billion is for NNSA, of which
       (a) $6.6 billion is for weapons activities,
       (b) $1.2 billion is for defense nuclear nonproliferation 
     activities,
       (c) $828.1 million is for naval reactors, and
       (d) $404.1 million is for the Office of the Administrator;
       (2) $5.3 billion is for defense environmental cleanup;
       (3) $1.3 billion is for other defense activities; and
       (4) $247.4 million is for defense nuclear waste disposal.
       The budget request also included $7.6 million for energy 
     security and assurance within energy supply.
       We agree to authorize $16.1 billion for atomic energy 
     defense activities, an increase of $143.2 million above the 
     budget request.
       Of this amount, we authorize:
       (1) $9.8 billion for NNSA, of which
       (a) $6.6 billion would be for weapons activities, a 
     decrease of $7.0 million below the budget request,
       (b) $1.9 billion would be for defense nuclear 
     nonproliferation, an increase of $648.2 million above the 
     budget request,
       (c) $828.1 million would be for naval reactors, the amount 
     of the budget request, and
       (d) $404.0 million would be for the Office of the 
     Administrator, the amount of the budget request;
       (2) $5.3 billion would be for defense environmental cleanup 
     activities, the amount of the budget request;
       (3) $826.5 million would be for other defense activities, a 
     decrease of $487.0 million below the amount of the budget 
     request; and
       (4) $222.4 million would be for defense nuclear waste 
     disposal, a reduction of $25.0 million below the amount of 
     the budget request.
       We agree to authorize $7.6 million for energy security and 
     assurance, the amount of the budget request.
       The following table summarizes the budget request and the 
     authorizations:


                    Legislative Provisions Adopted 

     National Nuclear Security Administration (sec. 3101)
       The House bill contained a provision (sec. 3101) that would 
     authorize $9.3 billion for the activities of the National 
     Nuclear Security Administration (NNSA) for fiscal year 2009, 
     an increase of $204.7 million above the budget request.
       The Senate bill contained a similar provision (sec. 3101) 
     that would authorize $9.6 billion for the activities of the 
     NNSA for fiscal year 2009, an increase of $544.6 million 
     above the budget request.
       The agreement includes a provision (sec. 3101) that would 
     authorize $9.8 billion, an increase of $655.2 million above 
     the budget request.

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[[Page 20644]]

       Within NNSA, the provision would authorize $6.6 billion for 
     weapons activities, a decrease of $7.0 million; $1.9 billion 
     for defense nuclear nonproliferation, an increase of $648.2 
     million; $828.1 million for naval reactors, the amount of the 
     budget request, and $404.1 million for the Office of the 
     Administrator, the amount of the request.
       The budget request included $6.6 billion for weapons 
     activities. The provision would authorize $6.6 billion, a 
     decrease of $7.0 million below the budget request. The budget 
     request included $10.0 million for the Reliable Replacement 
     Warhead, no funds are provided for this item. The provision 
     would authorize an increase of $5.0 million above the budget 
     request for weapons dismantlement and disposition and a 
     decrease of $20.0 million below the budget request for pit 
     manufacturing. Within campaigns, the provision would 
     authorize a reduction of $5.0 million below the budget 
     request for test readiness, an increase of $5.0 million above 
     the budget request for enhanced surety, an increase of $3.0 
     million above the budget request for enhanced surveillance, 
     an increase of $14.6 million above the budget request for 
     inertial confinement fusion, and a decrease of $10.0 million 
     below the budget request for tritium readiness. Within 
     readiness in technical base and facilities, the provision 
     would authorize an increase of $1.0 million above the budget 
     request, which includes an increase of $10.0 million above 
     the budget request for the Lawrence Livermore National 
     Laboratory, an increase of $10.0 million above the budget 
     request for the Pantex Plant, and a decrease of $19.0 million 
     for the Kansas City Plant. We note that the $19.0 million 
     reduction for the Kansas City Plant is without prejudice. The 
     provision provides an additional $23.4 million above the 
     budget request for defense nuclear security.
       The budget request included $1.2 billion for defense 
     nuclear nonproliferation. The provision would authorize $1.9 
     billion for defense nuclear nonproliferation, an increase of 
     $648.2 million, including $487.0 million transferred from 
     nuclear energy for the mixed oxide fuel fabrication facility. 
     The provision would include an increase of $25.0 million 
     above the budget request for the Nonproliferation and 
     Verification Research and Development program including 
     technologies to support improved nuclear material forensic 
     and attribution capabilities and seismic research. The 
     provision would authorize a reduction of $5.8 million for the 
     Nonproliferation and International Security (NIS) program, of 
     which $5.0 million shall be applied to the Global Initiatives 
     for Proliferation (GIPP) Prevention and the balance shall be 
     applied across the NIS as a reduction for Global Nuclear 
     Energy Partnership activities including GIPP. The provision 
     would authorize an increase of $22.0 million above the budget 
     request for the International Nuclear Materials and 
     Cooperation program to secure nuclear weapons and weapons 
     materials outside the United States. Funding for the mixed 
     oxide fuel fabrication facility, $467.8 million, and $19.2 
     million for operations and maintenance for the U.S. surplus 
     fissile materials disposition, has been moved from nuclear 
     energy back to the NNSA to reflect that this is a 
     nonproliferation program. The NNSA is the responsible entity 
     within the Department of Energy to manage nonproliferation 
     programs. The provision would authorize an increase of $120.0 
     million above the budget request for the Global Threat 
     Reduction Initiative for highly enriched uranium reactor 
     conversion, to secure domestic research and test reactors, to 
     secure and remove U.S. origin high risk radiological sources, 
     to secure and remove international high risk radiological 
     sources, and to dispose of U.S. origin highly enriched 
     uranium located outside the United States.
       The budget request included $828.1 million for naval 
     reactors. The provision would authorize the amount of the 
     budget request.
       The budget request included $404.1 million for the Office 
     of the Administrator. The provision would authorize the 
     amount of the budget request.
     Defense environmental cleanup (sec. 3102)
       The Senate bill contained a provision (sec. 3102) that 
     would authorize $5.3 billion for environmental defense 
     cleanup activities, the amount of the budget request.
       The House bill contained a similar provision (sec. 3102) 
     that would authorize $5.3 billion, an increase of $20 million 
     above the budget request.
       The agreement includes the Senate provision that would 
     authorize $5.3 billion, the amount of the budget request.
       The agreement would authorize a number of projects not 
     included in the budget request. The Department of Energy 
     (DOE) has identified these projects as unfunded and not 
     included in the budget request but necessary to meet 
     environmental cleanup commitments and requirements. Due to 
     the uncertainty of the appropriations process for fiscal year 
     2009, the agreement would authorize these additional projects 
     but offset the amount of the cost of the additional projects 
     through the use of prior year balances. This will allow the 
     DOE discretion and flexibility in implementing these 
     additional projects should additional appropriated funds be 
     available. In the event that additional funds are not 
     available, the DOE would retain the flexibility to implement 
     these projects with prior year balances, or through 
     reprogramming actions should the decision be made to do so. 
     We view implementation of the additional projects as being 
     within the discretion of the Secretary.
       Funding for these projects is authorized by site and by 
     account. The increases for the sites and accounts are as 
     follows: Fernald, $13.5 million; 2012 completion projects at 
     the Hanford Site, $89.5 million; 2035 completion projects at 
     the Hanford Site, $45.0 million; Idaho National Laboratory, 
     $40.0 million; National Nuclear Security Administration 
     (NNSA) sites $85.101, which includes $5.0 million for NNSA/
     SPRU, $10.0 million for Nevada, $3.0 million for Sandia 
     National Laboratory, and $67.1 million for Los Alamos 
     National Laboratory; Oak Ridge reservation, $25.0 million; 
     Office of River Protection, $53.0 million; 2035 completion 
     projects at the Savannah River Site, $58.5 million; Waste 
     Isolation Pilot Project, $18.7 million; and safeguards and 
     security at the Hanford Site, $8.2 million.
     Other defense activities (sec. 3103)
       The Senate bill contained a provision (sec. 3103) that 
     would authorize $826.5 million for other defense activities, 
     a decrease of $487.0 million.
       The House bill contained a similar provision (sec. 3103) 
     that would authorize $1.3 billion for other defense 
     activities, an increase of $8.0 million.
       The agreement includes the Senate provision.
       The amount authorized is a decrease of $487.0 million from 
     the amount of the budget request. We recommend: $446.9 
     million for health, safety, and security, the amount of the 
     budget request; $186.0 million for legacy management, the 
     amount of the request; $6.6 million for the Office of 
     Hearings and Appeals; and $78.8 million for nuclear energy, a 
     decrease of $487.0 million from the budget request. We 
     recommend that the $487.0 million included in the budget 
     request for other defense activities for the mixed oxide fuel 
     fabrication facility be transferred to the National Nuclear 
     Security Administration.
     Defense nuclear waste disposal (sec. 3104)
       The House bill contained a provision (sec. 3104) that would 
     authorize $247.4 million for defense nuclear waste disposal, 
     the amount of the budget request.
       The Senate bill contained a similar provision (sec. 3104) 
     that would authorize $197.4 million for defense nuclear waste 
     disposal, a reduction of $50.0 million below the budget 
     request.
       The agreement includes the House provision with an 
     amendment that would authorize $222.4 million for defense 
     nuclear waste disposal, a reduction of $25.0 million below 
     the budget request.
     Energy security and assurance (sec. 3105)
       The House bill contained a provision (sec. 3105) that would 
     authorize $7.6 million for energy security and assurance at 
     the Department of Energy.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

     Modification of functions of Administrator for Nuclear 
         Security to include elimination of surplus fissile 
         materials usable for nuclear weapons (sec. 3111)
       The Senate bill contained a provision (sec. 3111) that 
     would amend section 2402(b)(1) of title 50, United States 
     Code, by adding a new paragraph assigning responsibility for 
     elimination of surplus fissile materials usable for nuclear 
     weapons to the Administrator for Nuclear Security.
       The House bill contained no similar provision.
       The agreement includes the Senate provision.
     Limitation on funding for project 04-D-125 Chemistry and 
         Metallurgy Research Replacement facility project, Los 
         Alamos National Laboratory, Los Alamos, New Mexico (sec. 
         3112)
       The House bill provided full funding for project 04-D-125, 
     the chemistry and metallurgy research replacement (CMRR) 
     facility project at the Department of Energy Los Alamos 
     National Laboratory.
       The Senate bill provided $50.2 million for CMRR, a 
     reduction of $50.0 million from the budget request.
       The agreement includes a provision that would authorize 
     $100.2 million for the CMRR, the amount of the budget 
     request, but would prohibit the Administrator of the National 
     Nuclear Security Administration (NNSA) from obligating more 
     than $50.2 million of the CMRR funding until 15 days after 
     the Administrator and the Defense Nuclear Facilities Safety 
     Board have each certified to the congressional defense 
     committees that the issues associated with the design of the 
     safety class systems at the CMRR and seismic related design 
     issues have been resolved.
     Nonproliferation and national security scholarship and 
         fellowship program (sec. 3113)
       The Senate bill contained a provision (sec. 3114) that 
     would direct the Administrator of the National Nuclear 
     Security Administration (NNSA) to establish a 
     nonproliferation

[[Page 20645]]

     scholarship program. The scholarship program would be 
     available to both undergraduate and graduate students in 
     disciplines to be determined by the NNSA administrator. A 
     student would be required to work as a Federal Government 
     employee or as a laboratory employee for 1 year for each year 
     that the student received support under the program.
       The House bill contained a similar provision (sec. 3113(a)) 
     that would establish a fellowship program for graduate 
     students in nuclear chemistry.
       The agreement includes the Senate provision with an 
     amendment that would direct the NNSA Administrator to 
     establish a scholarship program for nonproliferation and 
     national security programs at the Department of Energy. The 
     provision would authorize $3.0 million from funds available 
     to the Administrator to be used for the scholarship program 
     in fiscal year 2009.
       There is concern that experts in certain technical areas 
     critical to nonproliferation and national security programs, 
     such as radio-chemistry, are increasingly difficult for the 
     NNSA and the Department of Energy laboratories to attract and 
     retain.
     Enhancing nuclear forensics capabilities (sec. 3114)
       The House bill contained a provision (sec. 3113) that would 
     establish a fellowship program for graduate students in 
     nuclear chemistry and direct the Administrator of the 
     National Nuclear Security Administration (NNSA) to prepare 
     and carry out a research and development plan to improve the 
     speed and accuracy of nuclear forensics radiation measurement 
     equipment. In addition, the provision would direct the 
     Secretary of Energy to prepare a research and development 
     plan to support technical forensics and attribution 
     capabilities, including an international database on nuclear 
     material to allow prompt attribution of material or weapons.
       The provision would also amend the report on nuclear 
     forensics capabilities required to be submitted by section 
     3129(b) of the National Defense Authorization Act for Fiscal 
     Year 2008 (Public Law 110-181) to include a requirement to 
     identify any treaty, legislative, or regulatory actions 
     needed to establish the international database. The provision 
     would also direct the Secretary of Defense, in consultation 
     with the Secretary of Energy and Homeland Security, to submit 
     a report with respect to a nuclear forensics advisory panel.
       The provision would also require a series of reports 
     including, a report on the costs of the fellowship program; a 
     research and development plan with the costs to implement the 
     plan; a report on the research and development plan for 
     technical capabilities to enhance forensics and attribution; 
     and a report on the involvement of senior Executive Branch 
     leadership in nuclear terrorism preparedness exercises.
       The Senate bill contained a provision (sec. 3114) that 
     would establish a nonproliferation scholarship and fellowship 
     program.
       The agreement includes the House provision with an 
     amendment that would direct the Secretary of Energy to 
     establish, prepare and implement a research and development 
     plan to improve nuclear forensics capabilities in the 
     Department of Energy (DOE) and at the DOE national 
     laboratories. The Secretary of Energy should ensure that the 
     House Committee on Science and Technology receives a copy of 
     the report.
       In addition, the amendment would amend the report on 
     nuclear forensics capabilities required to be submitted by 
     section 3129(b) of the National Defense Authorization Act for 
     Fiscal Year 2008 (Public Law 110-181) to include a 
     requirement to identify any treaty, legislative, or 
     regulatory actions needed to establish the international 
     database.
       The amendment would also direct the President to submit a 
     report to the appropriate congressional committees on the 
     involvement of senior level Executive Branch leadership in 
     nuclear terrorism exercises including nuclear forensics 
     analysis.
       Elsewhere in the agreement there is a separate provision 
     that would establish a scholarship and fellowship program for 
     nonproliferation and national security.
     Utilization of contributions to International Nuclear 
         Materials Protection and Cooperation program and Russian 
         plutonium Disposition program (sec. 3115)
       The House bill contained a provision (sec. 3111) that would 
     establish the authority of the Secretary of Energy, in 
     consultation with the Secretary of State, to enter into 
     agreements with any person, including a foreign government or 
     entity, which the Secretary of Energy considers appropriate, 
     to accept funds to assist with the disposition of excess 
     Russian plutonium as part of the Russian Plutonium 
     Disposition program. Contributed funds would be maintained in 
     a separate account in the Treasury, and would be returned to 
     the donor if not used in 5 years. The provision would also 
     require the Secretary of Energy to submit a report on the 
     receipt and use of funds. The authority provided in the 
     provision would terminate on December 31, 2013.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that would modify existing authority that allows 
     the Department of Energy (DOE) to accept contributions for 
     other nonproliferation programs to allow DOE to accept 
     contributions for the Russian Plutonium Disposition Program 
     and for the International Nuclear Materials Protection and 
     Cooperation Program. The DOE authority to accept 
     contributions for these nonproliferation programs would 
     expire on December 31, 2015.
     Review of and reports on Global Initiatives for Proliferation 
         Prevention program (sec. 3116)
       The Senate bill contained a provision (sec. 3115) that 
     would direct the Administrator of the National Nuclear 
     Security Administration (NNSA) to conduct a review of the 
     Global Initiatives for Proliferation Prevention (GIPP) 
     program and submit a report on the review to the 
     congressional defense committees no later than February 1, 
     2009.
       The report would include a description of the goals for the 
     GIPP program and the criteria for partnership projects 
     together with recommendations regarding the future of 
     projects in Russia and the other countries of the former 
     Soviet Union as well as plans for projects in countries other 
     than the former Soviet Union. In addition, the report would 
     include a plan for completing all projects in the countries 
     of the former Soviet Union by 2012.
       The provision would also restrict funds associated with the 
     Global Nuclear Energy Partnership (GNEP).
       The House bill contained no similar provision.
       The agreement includes the Senate provision with an 
     amendment that would change the due date of the report to 
     October 1, 2009, and that would require a plan and criteria 
     for completing all partnership projects under the program, 
     not just in the countries of the former Soviet Union. In 
     addition, recognizing that each country has different needs 
     and presents different opportunities for partnerships, the 
     agreement does not include a deadline by which projects have 
     to be completed.
       The GNEP funding restriction is addressed in a separate 
     provision.
       We appreciate the GIPP program information recently 
     provided by the NNSA and the NNSA efforts to continue to 
     strengthen the management, implementation and oversight of 
     the program. This additional attention and oversight by the 
     NNSA will ensure that the GIPP program achieves its intended 
     nonproliferation objectives, and will address the concerns 
     the Government Accountability Office has raised about the 
     GIPP program. We also are encouraged that NNSA is reducing 
     unobligated and uncosted balances in GIPP program funding and 
     will re-baseline the program by December 2008 as part of its 
     Strategic Plan.
     Limitation on availability of funds for Global Nuclear Energy 
         Partnership (sec. 3117)
       The Senate bill contained a provision (sec. 3115(c)) that 
     would prohibit funds authorized to be appropriated for 
     defense nuclear nonproliferation and available for use in the 
     Global Initiatives for Proliferation Prevention program from 
     being used to support the Global Nuclear Energy Partnership 
     (GNEP).
       The House bill contained no similar provision. House Report 
     110-652 did not support using any defense nuclear 
     nonproliferation funds for GNEP.
       The agreement includes the Senate provision with an 
     amendment that would allow no more than $3.0 million of the 
     funds authorized to be appropriated by section 3101(a)(2) for 
     defense nuclear nonproliferation to be used for projects 
     specifically designed for the GNEP. None of the $3.0 million 
     amount shall be obligated until 30 days after the 
     Administrator of the National Nuclear Security Administration 
     (NNSA) submits to Congress a report describing in detail the 
     amount proposed to be used for GNEP and the specific 
     activities that would be funded.
       The agreement specifies that the $3.0 million is available 
     to be used for nonproliferation risk assessments relating to 
     the GNEP and related work on export control reviews.

                          Subtitle C--Reports

     Extension of deadline for Comptroller General report on 
         Department of Energy protective force management (sec. 
         3121)
       The House bill contained a provision (sec. 3112) that would 
     extend the due date for the Comptroller General to complete a 
     report on the management of the Department of Energy 
     protective forces to March 1, 2009.
       The Senate bill contained no similar provision.
       The agreement contains the House provision.
     Report on compliance with Design Basis Threat issued by the 
         Department of Energy in 2005 (sec. 3122)
       The Senate amendment contained a provision (sec. 3112) that 
     would direct the Secretary of Energy to submit a report on 
     the progress made by the Department of Energy (DOE) to 
     achieve compliance with the requirements of the 2005 design 
     basis threat (DBT) for each DOE site with Category I nuclear 
     materials. The DBT establishes the physical security 
     requirements for each DOE site. This report would be a 
     follow-on report to the 2006 DBT report, which laid out a 
     plan for each site to either be compliant by 2008 or obtain a 
     waiver. The provision would also

[[Page 20646]]

     direct the Secretary to conduct an assessment of the 2005 DBT 
     and to identify any necessary modifications, updates, or 
     revisions to the 2005 DBT. The committee is concerned that 
     several sites may not be in compliance with the 2005 DBT by 
     the end of 2008.
       The House bill contained no similar provision.
       The agreement contains the Senate provision.
     Modification of submittal of reports on inadvertent releases 
         of restricted data (sec. 3123)
       The Senate bill (sec. 3113) contained a provision that 
     would amend section 2672 of title 50, United States Code, to 
     make the annual report on inadvertent releases of restricted 
     data due every other year rather than annually. The provision 
     would further amend section 2672 to change the frequency of 
     the report that the Secretary of Energy submits to Congress 
     to identify the plans of various federal agencies to prevent 
     the inadvertent release of restricted data. The provision 
     would modify the frequency of the Department of Energy review 
     of the agencies' plans from periodic, which has been treated 
     by the Secretary as an annual requirement, to once every 2 
     years.
       The House bill contained no similar provision.
       The agreement contains the provision.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

     Authorization (sec. 3201)
       The House bill contained a provision (sec. 3201) that would 
     authorize $25.5 million for the activities of the Defense 
     Nuclear Facilities Safety Board, the amount of the budget 
     request.
       The Senate bill contained a similar provision (sec. 3201) 
     that would authorize $29.0 million for the activities of the 
     Defense Nuclear Facilities Safety Board, an increase of $3.5 
     million above the amount of the budget request.
       The agreement includes the House provision.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

     Authorization of appropriations (sec. 3401)
       The House bill contained a provision (sec. 3401) that would 
     authorize $19.1 million for the operation and maintenance of 
     the Naval Petroleum and Oil Shale Reserves.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.

                  TITLE XXXV--MARITIME ADMINISTRATION


                     legislative provisions adopted

     Authorization of appropriations for fiscal year 2009 (sec. 
         3501)
       The House bill contained a provision (sec. 3501) for the 
     authorization of appropriations for the Maritime 
     Administration of the Department of Transportation for fiscal 
     year 2009.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with clarifying 
     amendments for capital improvements at the United States 
     Merchant Marine Academy and maintenance and repair of school 
     ships of the various State Maritime Academies.
     Limitation on export of vessels owned by the Government of 
         the United States for the purpose of dismantling, 
         recycling, or scrapping. (sec. 3502)
       The House bill contained a provision (sec. 3502) that would 
     place limits on the export of vessels owned by the United 
     States government for the purpose of scrapping or recycling 
     in foreign shipyards.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Student incentive payment agreements. (sec. 3503)
       The House bill contained a provision (sec. 3503) that would 
     raise the maximum yearly incentive payment for students at 
     the various state maritime academies from $4,000 to $8,000 
     per year.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Riding gang member requirements (sec. 3504)
       The House bill contained a provision (sec. 3504) that would 
     amend section 1018 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364) 
     to require that riding gang members of vessels engaged in the 
     carriage of cargo for the Department of Defense possess a 
     merchant mariners' document issued under chapter 73 of title 
     46, United States Code, or a transportation security card 
     issued under section 70105 of such title. In addition, the 
     provision clarifies those personnel onboard such vessels at 
     the direction of the Secretary of Defense shall not be 
     classified as riding gang members under section 8106 of title 
     46, United States Code.
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Maintenance and repair reimbursement program for the maritime 
         security fleet (sec. 3505)
       The House bill contained a provision (sec. 3505) that would 
     direct the Administrator of the Maritime Administration to 
     seek to enter into agreements for the maintenance and repair 
     pilot program as authorized by section 5301 of title 46 
     United States Code, as amended by section 3503 of the 
     National Defense Authorization Act for Fiscal Year 2006 
     (Public Law 109-163).
       The Senate bill contained no similar provision.
       The agreement includes the House provision.
     Temporary program authorizing contracts with adjunct 
         professors at the United States Merchant Marine Academy 
         (sec. 3506)
       The House bill contained a provision (sec. 3506) that would 
     grant temporary authority to the Administrator of the 
     Maritime Administration to enter into contracts with Adjunct 
     Professors at the United States Merchant Marine Academy.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with an 
     amendment that grants temporary authority to the 
     Administrator to transition employees of the Academy's Non-
     Appropriated Funded Instrumentalities (NAFIs) to the General 
     Schedule. In addition, the amendment would grant authority to 
     the Administrator to accept and use conditional or 
     unconditional gifts of money or property for the benefit of 
     the Academy.
     Actions to address sexual harassment and violence at the 
         Untied States Merchant Marine Academy (sec. 3507)
       The agreement includes a provision that would direct the 
     Secretary of Transportation to direct the Superintendent of 
     the United States Merchant Marine Academy to prescribe a 
     policy on sexual harassment and sexual violence applicable 
     tot he cadets and other personnel of the Academy.
     Assistance for small shipyards and maritime communities (sec. 
         3508)
       The agreement includes a provision that would repeal 
     section 3506 of the National Defense Authorization Act for 
     Fiscal Year 2006 (Public Law 109-163) and add a new section 
     in chapter 541 of title 46, United States Code, for 
     assistance to small shipyards and maritime communities 
     clarifying the program's intent to provide assistance to 
     projects that would be effective in fostering efficiencies 
     and enhancing employee technical skills.
     Marine war risk insurance (sec. 3509)
       The agreement includes a provision that would extend the 
     authorities granted in section 53912 of title 46, United 
     States Code, to December 31, 2015.
     MARAD consultation on Jones Act Waivers (sec. 3510)
       The agreement includes a provision that would require that 
     the head of any agency responsible for the administration of 
     the navigation or vessel-inspection laws to obtain a 
     determination from the Administrator of the Maritime 
     Administration, acting in the capacity as Director, National 
     Shipping Authority, that sufficient United States flag 
     capacity does not exist to meet national defense requirements 
     prior to any waiver of those laws.
     Transportation in American vessels of government personnel 
         and certain cargoes (sec. 3511)
       The agreement includes a provision to amend section 55305 
     of title 46, United States Code, top clarify the requirements 
     of that section with respect to the transportation of 
     government personnel and cargo in American vessels.
     Port of Guam improvement enterprise program (sec. 3512)
       The House bill contained a provision (sec. 2829) that would 
     create a Port of Guam Improvement Enterprise Program to 
     provide for the planning, design, and construction of 
     projects for the Port of Guam to improve facilities, relieve 
     port congestion, and provide greater access to port 
     facilities.
       The Senate bill contained no similar provision.
       The agreement includes the House provision with a technical 
     amendment.

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