[House Report 105-578]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-578
_______________________________________________________________________


 
            MILITARY CONSTRUCTION APPROPRIATIONS BILL, 1999

                                _______
                                

 June 16, 1998.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


   Mr. Packard, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4059]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for military construction, family housing, and 
base realignments and closures for the Department of Defense 
for the fiscal year ending September 30, 1999.

                                CONTENTS

                                                                   Page
Summary of Committee Recommendation..............................     2
Conformance With Authorization Bill..............................     3
Permanent Party Unaccompanied Personnel Housing..................     3
Fiscal Year 1999 Barracks Request................................     4
Child Development Centers........................................     5
Child Care Services--Outsourcing Initiative......................     6
Hospital and Medical Facilities..................................     6
Environmental Compliance Projects................................     7
Proposed Financing via Prior Year Savings........................     8
Transfer Authority...............................................     8
Advance Appropriations...........................................     8
Real Property Maintenance........................................     9
DOD Activities in Naples, Italy..................................    10
Korea Master Plan................................................    10
Program, Project and Activity....................................    11
Planning and Budgeting...........................................    11
Metric Conversion................................................    11
Military Construction:
    Army.........................................................    11
    Navy.........................................................    13
    Air Force....................................................    14
    Defense-wide.................................................    14
    Department of Defense Military Unaccompanied
        Housing Improvement Fund.................................    16
    Reserve Components...........................................    17
NATO Security Investment Program.................................    19
Family Housing Overview..........................................    20
Family Housing:
    Army.........................................................    25
    Navy.........................................................    26
    Air Force....................................................    27
    Defense-wide.................................................    28
Department of Defense Family Housing Improvement Fund............    28
Homeowners Assistance Fund, Defense..............................    30
Base Realignment and Closure:
    Overview.....................................................    31
    Part I.......................................................    37
    Part II......................................................    37
    Part III.....................................................    37
    Part IV......................................................    37
Changes in Application of Existing Law...........................    38
Compliance with Rule XIII--Clause 3..............................    40
Appropriations Not Authorized by Law.............................    40
Transfer of Funds................................................    41
Rescission of Funds..............................................    41
Constitutional Authority.........................................    41
Comparisons With Budget Resolution...............................    41
Advance Spending Authority.......................................    42
Five-Year Projection of Outlays..................................    42
Financial Assistance.............................................    42
State List.......................................................    42
Comparative Statement of New Budget Authority....................    60

                  Summary of Committee Recommendation

    The Administration's fiscal year 1999 budget request of 
$7,784,074,000 represents a decrease of $1,424,394,000, or 15 
percent, from the fiscal year 1998 appropriation of 
$9,208,468,000. The request includes $2,570,040,000 for 
military construction, $3,477,330,000 for family housing and 
$1,730,704,000 for activities associated with base closure and 
realignment.
    While there are aspects of the budget request that help to 
solve the long-term infrastructure problems faced by the 
Department of Defense, the Committee has some concerns over the 
request. For example, the Administration has committed itself 
to a serious barracks revitalization program. Yet, the request 
for barracks construction is $198,245,000 below last year's 
appropriation. And, family housing construction and operation 
and maintenance accounts are reduced by $385,768,000. The 
budget request would provide $592,846,000 for family housing 
construction, a reduction of $262,274,000 from current levels. 
Of this amount, $270,103,000 is requested for construction of 
new family housing units, a reduction of $168,686,000 or 38 
percent, from current spending. And, the request for 
improvements to existing family housing units is reduced by 
$95,588,000, or 23 percent from the current program. In 
addition, the budget request would reduce maintenance of family 
housing units a total of $68,086,000.
    The Committee believes it is imperative to address the 
severe backlog in readiness, revitalization and quality of life 
projects. The Committee has recommended an additional 
$450,000,000 above the Administration's fiscal year 1999 budget 
request to fund the planning and construction of several 
barracks, family housing and operational facilities.
    The total recommended appropriation for fiscal year 1999 is 
$8,234,074,000, a reduction of $974,394,000, or 11 percent, 
from fiscal year 1998 funding and an increase of $450,000,000 
above the fiscal year 1999 budget request. The appropriation 
includes $2,990,817,000 for military construction, 
$3,506,553,000 for family housing and $1,730,704,000 for 
activities associated with base closure and realignment. The 
following table provides a breakout of the highlights of the 
bill:

                                                                        
                                                                        
                                                                        
FY 1998 net appropriation.............................      $9.2 billion
President's Request...................................       7.8 billion
Subcommittee Recommendation...........................       8.2 billion
Decrease below FY 1998................................       974 million
Increase over President's Request.....................       450 million
                                                                        

Military Construction: $3.0 billion (37% of total bill), 
including:

  $635 million for barracks
  $31 million for child development centers
  $206 million for hospital and medical facilities
  $93 million for environmental compliance
  $47 million for the energy conservation improvement program
  $125 million for the chemical weapons demilitarization 
        program
  $169 million for NATO Security Investment Program
  $309 million for Guard and Reserve components

Family Housing: $3.5 billion (43% of total bill), including:

  $392 million for new family housing units, and for 
        improvements to existing units
  $242 million for Public-Private Ventures of family housing
  $2.8 billion for operation and maintenance of existing units

Base Realignment and Closure: $1.7 billion (21% of total bill), 
        including:
  $233 million for military construction and family housing
  $698 million for environmental cleanup
  $768 million for operations and maintenance

                  Conformance With Authorization Bill

    The House passed the National Defense Authorization Act for 
1999 (H.R. 3616) on May 21, 1998 by a vote of 357-60, which 
contains authorization for the military construction, family 
housing and base realignment and closure accounts included in 
this bill. Because Senate and conference action on the 
authorization had not been completed at the time this bill was 
prepared, the Committee is considering only projects 
recommended for authorization. All projects included in this 
bill are approved subject to authorization.

            Permanent Party Unaccompanied Personnel Housing

    The Department of Defense estimates that 43 percent of the 
enlisted force and 27 percent of the officers are single or 
unaccompanied personnel. Although 32 percent live in private 
off-base housing, the Department has over 390,252 men and women 
living in permanent party unaccompanied personnel housing. 
Approximately one-half of the barracks were built 30 or more 
years ago, with an average age of over 40 years. And, over 
77,000 spaces are still serviced by gang latrines. Of the total 
inventory approximately 36% are considered substandard and 
continuous maintenance is necessary to deal with such problems 
as asbestos, corroded pipes, inadequate ventilation, faulty 
heating and cooling systems, and peeling lead-based paint.
    In fiscal year 1997, the respective Services deficit count 
due to the lack of barracks spaces to house single service 
members or the need to replace or improve current spaces was 
238,000. As a result of the Congressional initiative to 
accelerate the barracks revitalization effort, current deficit 
estimates have been reduced to 154,628 single service members. 
The Department of Defense estimates current total costs to 
achieve desired end states at $8,650,000,000, as compared to 
$14,280,000,000 in fiscal year 1997. And, the timetable to 
accomplish the revitalization has decreased from over twenty 
years to thirteen years.
    The Committee understands that improving troop housing does 
not lie solely in new construction and renovations. Retiring 
the backlog of maintenance and repair, which is under the 
jurisdiction of the National Security Subcommittee, and an 
adequate funding commitment to prevent future backlogs plays an 
important role in this process. It is necessary to use many 
different approaches to help meet the unaccompanied housing 
need. The challenge is for a sustained overall commitment, at 
funding levels that will reduce the backlog of substandard 
spaces, reduce the housing deficits, and increase the quality 
of living conditions in a reasonable period of time.

                   fiscal year 1999 barracks request

    The Department of Defense has requested $566,722,000 to 
construct or modernize 33 barracks in fiscal year 1999. This is 
a reduction of $198,245,000 from the enacted fiscal year 1998 
appropriation.
    The Committee has approved the request of $566,722,000 in 
full. In order to help alleviate the deficit, an additional 
$67,950,000 is recommended. The total appropriation for 
unaccompanied housing recommended in this bill is $634,672,000.
    The following troop housing construction projects are 
recommended for fiscal year 1999:

                 FISCAL YEAR 1999 TROOP HOUSING PROJECTS                
------------------------------------------------------------------------
               Location                     Request        Recommended  
------------------------------------------------------------------------
Army:                                                                   
    Georgia--Fort Benning.............       28,600,000       28,600,000
    Hawaii--Schofield Barracks........       47,500,000       47,500,000
    Kentucky--Fort Campbell...........       41,000,000       41,000,000
    Missouri--Fort Leonard Wood.......                0       23,000,000
    North Carolina--Fort Bragg........       47,000,000       47,000,000
    North Carolina--Fort Bragg........                0       10,600,000
    Oklahoma--Fort Sill...............       20,500,000       20,500,000
    Texas--Fort Sam Houston...........       21,800,000       21,800,000
    Virginia--Fort Eustis.............       36,531,000       36,531,000
    Germany--Schweinfurt..............       18,000,000       18,000,000
    Korea--Camp Casey.................       13,400,000       13,400,000
    Korea--Camp Castle................       18,226,000       18,226,000
    Korea--Camp Humphreys.............        8,500,000        8,500,000
    Korea--Camp Stanley...............        5,800,000        5,800,000
                                       ---------------------------------
      Subtotal, Army..................      306,857,000      340,457,000
                                       =================================
Navy/Marine Corps/Naval Reserve:                                        
    Arizona--Yuma Marine Corps Air                                      
     Station..........................       11,010,000       11,010,000
    California--Camp Pendleton Marine                                   
     Corps Base.......................       12,400,000       12,400,000
    California--Camp Pendleton Marine                                   
     Corps Base.......................       15,840,000       15,840,000
    California--Miramar MCAS..........       29,570,000       29,570,000
    California--Naval Facility San                                      
     Clemente.........................        8,350,000        8,350,000
    Hawaii--Kaneohe Bay...............       27,410,000       27,410,000
    Hawaii--NSB Pearl Harbor..........        8,060,000        8,060,000
    Louisiana--New Orleans NAS........                0        9,520,000
    Mississippi--Gulfport Naval                                         
     Construction Battalion Center....       10,670,000       10,670,000
    South Carolina--Parris Island                                       
     Marine Corps Recruit Depot.......                0        8,030,000
    Texas--Ingleside NS...............                0       12,200,000
    Greece--Souda Bay Crete Naval                                       
     Support Activity.................        5,260,000        5,260,000
                                       ---------------------------------
      Subtotal, Navy..................      128,570,000      158,320,000
                                       =================================
Air Force/Air Force Reserve:                                            
    Alabama--Maxwell AFB..............       12,765,000       12,765,000
    Florida--Eglin AFB................        7,866,000        7,866,000
    Florida--Homestead ARB............                0        4,600,000
    Idaho--Mountain Home AFB..........        8,897,000        8,897,000
    Mississippi--Keesler AFB..........       29,770,000       29,770,000
    Nevada--Nellis AFB................        6,378,000        6,378,000
    Oklahoma--Tinker AFB..............        9,100,000        9,100,000
    Texas--Lackland AFB...............        6,800,000        6,800,000
    Germany--Spangdalem AB............        9,501,000        9,501,000
    Korea--Kunsan AB..................        5,958,000        5,958,000
    Korea--Osan AB....................        7,496,000        7,496,000
    United Kingdom--RAF Lakenheath....       15,838,000       15,838,000
    United Kingdom--RAF Mildenhall....       10,926,000       10,926,000
                                       ---------------------------------
      Subtotal, Air Force.............      131,295,000      135,895,000
                                       =================================
      Total...........................      566,722,000      634,672,000
------------------------------------------------------------------------

                       Child Development Centers

    The Committee has recommended an additional $7,900,000 
above the budget estimate of $23,148,000 for a total 
appropriation of $31,048,000 for new construction, or 
improvements, for child development centers. The Office of the 
Secretary of Defense established a goal of providing quality 
child care to 65% of the potential need in 1992. The Army met 
the 65% goal this year. The Marine Corps expects to reach the 
goal by 2002, and the Air Force and Navy are programmed to 
reach 65% by 2003. The Committee notes that to optimally meet 
the Department's demand an 80 percent goal must be achieved. 
The Committee recognizes the increased importance of these 
centers due to the rising number of single military parents, 
dual military couples and military personnel with a civilian 
employed spouse. The Department is encouraged to maintain all 
efforts possible to meet 80 percent of the child care need.
    The following child development center projects are 
provided for fiscal year 1999:

               FISCAL YEAR 1999 CHILD DEVELOPMENT CENTERS               
------------------------------------------------------------------------
               Location                     Request        Recommended  
------------------------------------------------------------------------
Army:                                                                   
    California--Fort Irwin............                0        5,100,000
    Belgium...........................        6,300,000        6,300,000
    Germany--Kitzingen Family Housing                                   
     (Wuerzburg)......................        4,250,000        4,250,000
                                       ---------------------------------
      Subtotal, Army..................       10,550,000       15,650,000
                                       =================================
Navy/Naval Reserve:                                                     
    Florida--Key West NAS.............        3,730,000        3,730,000
    Georgia--Albany Marine Corps                                        
     Logistics Base...................                0        2,800,000
    North Carolina--Cherry Point                                        
     Marine Corps Air Station.........        4,420,000        4,420,000
                                       ---------------------------------
      Subtotal, Navy..................        8,150,000       10,950,000
                                       =================================
Air Force/Air Force Reserve:                                            
    Maryland--Andrews AFB.............        4,448,000        4,448,000
                                       ---------------------------------
      Subtotal, Air Force.............        4,448,000        4,448,000
                                       =================================
      Total...........................       23,148,000       31,048,000
------------------------------------------------------------------------

              Child Care Services--Outsourcing Initiative

    The Department is conducting demonstration projects to 
review ways of providing child care services by using third 
party contracting. Currently the Navy is purchasing spaces in 
accredited child development centers by buying down the cost 
for military families. The Navy has awarded contracts in 
Jacksonville, Florida; Norfolk, Virginia; San Diego, 
California; and Pearl Harbor, Hawaii. The Defense Logistics 
Agency is testing the management and operation of a military-
constructed child development center by a private contractor in 
Dayton, Ohio. The Committee supports these efforts and directs 
the Department to report on the status and success of these 
demonstration projects, and any other efforts for third party 
contracting by February 1, 1999.

                    Hospital and Medical Facilities

    The budget request includes $206,732,000 for 25 projects 
and for unspecified minor construction to provide hospital and 
medical facilities, including both treatment facilities and 
medical support facilities. The Committee recommends full 
funding for the requested items for fiscal year 1999 as 
follows:

----------------------------------------------------------------------------------------------------------------
                    Location                                 Project title               Request     Recommended
----------------------------------------------------------------------------------------------------------------
California--Camp Pendleton......................  Medical/Dental Cl Repl (Margarita)     3,100,000     3,100,000
California--Camp Pendleton......................  Medical/Dental Cl Repl (San Mateo)     3,200,000     3,200,000
California--Edwards AFB.........................  Aerospace Medical Clinic Add/Alt..     6,000,000     6,000,000
California--San Diego Naval Hospital              Water Storage Tank................     1,350,000     1,350,000
California--Travis AFB..........................  Patient Movement Items Ops & Dist      1,700,000     1,700,000
                                                   Center.                                                      
Florida--Eglin AFB..............................  Central Energy Plant..............     9,200,000     9,200,000
Florida--Pensacola NAS..........................  Hospital Addition/Alteration/LSU..    25,400,000    25,400,000
Georgia--Moody AFB..............................  CMF Alteration/Dental Cl Add......    11,000,000    11,000,000
Georgia--Fort Stewart...........................  Medical/Dental Clinic Replacement.    10,400,000    10,400,000
Louisiana--Barksdale AFB........................  Clinic Addition/Alteration........     3,450,000     3,450,000
Mississippi--Keesler AFB........................  Bioenvironmental Eng Fac Repl.....       700,000       700,000
New Mexico--Holloman AFB........................  War Readines Material Warehouse...     1,300,000     1,300,000
North Carolina--Fort Bragg......................  44th Medical Brigade WRM Warehouse     6,500,000     6,500,000
North Dakota--Grand Forks AFB...................  Medical/Dental Clinic Add/Alt.....     5,600,000     5,600,000
Pennsylvania--Carlisle Barracks.................  Health Clinic Addition............     4,678,000     4,678,000
Texas--Fort Hood................................  Blood Donor Center................     3,100,000     3,100,000
Texas--Fort Hood................................  Primary Care Clinic...............    11,000,000    11,000,000
Virginia--Cheatham Annex........................  Fleet Hosp Spt Ops Operational         9,400,000     9,400,000
                                                   Warehouse.                                                   
Virginia--Cheatham Annex........................  Fleet Hosp Support Operation Admin     1,900,000     1,900,000
                                                   Office.                                                      
Virginia--Portsmouth Naval Hospital               Hospital Replacement Phase X......    17,954,000    17,954,000
Washington--Bangor Naval Submarine Base           Disease Vector Ecology & Control       5,700,000     5,700,000
                                                   Center.                                                      
Washington--Bremerton Naval Hospital              Hospital Addition/Alteration......    28,000,000    28,000,000
Washington--McChord AFB                           Clinic/WRM Warehouse Replacement..    20,000,000    20,000,000
Italy--Sigonella Naval Air Station                Flight Line Dispensary............     5,300,000     5,300,000
United Kingdom--Royal Air Force Lakenheath        Hospital Annex Replacement........    10,800,000    10,800,000
                                                                                     ---------------------------
      Total.....................................    ................................   206,732,000   206,732,000
----------------------------------------------------------------------------------------------------------------

                   Environmental Compliance Projects

    The total budget request and appropriation for 18 projects 
needed to meet environmental compliance is $92,534,000. The 
Federal Facilities Compliance Act requires all federal 
facilities to meet both federal and State standards. These 
projects are considered Class I violations and are out of 
compliance; have received an enforcement action from the 
Environmental Protection Agency, the State, or local authority; 
and/or a compliance agreement has been signed or consent order 
received. Environmental projects that areClass I violations are 
required to be funded, and therefore are placed at the top of the 
priority list.
    Following is a listing of all environmental compliance 
projects funded in this bill:

------------------------------------------------------------------------
            Installtion                 Project title       Recommended 
------------------------------------------------------------------------
Army:                                                                   
    Fort Lewis, WA................  Tank Trail Erosion         2,000,000
                                     Mitigation, Yakima                 
                                     Range.                             
Navy:                                                                   
    PWC Pearl Harbor, HI..........  Sewer Outfall             22,877,000
                                     Extension.                         
    PWC Pearl Harbor, HI..........  Steam Condensate           6,090,000
                                     Return System.                     
    NSWC Div, Indian Head, MD.....  Annealing Oven             6,680,000
                                     Facility.                          
    NETC Newport, RI..............  Boiler Plate               5,630,000
                                     Modifications.                     
Air Force:                                                              
    Maxwell AFB, AL...............  Fire Training              1,837,000
                                     Facility.                          
    Eglin AFB, FL.................  Fire Training              1,823,000
                                     Facility.                          
    MacDill AFB, FL...............  Fire Training              2,494,000
                                     Facility.                          
    Kirtland AFB, NM..............  Fire Training              1,774,000
                                     Facility.                          
    Grand Forks AFB, ND...........  Fire Training              2,686,000
                                     Facility.                          
    Vance AFB, OK.................  Fire Training              1,823,000
                                     Facility.                          
Defense Logisitics Agency:                                              
    DFSP Jacksonville Annex, FL...  Replace Fuel Tanks,       11,020,000
                                     Mayport Annex.                     
    DFSP Jacksonville, FL.........  Replace Fuel Tanks..      11,000,000
    DFSP Camp Shelby, MS..........  Replace Bulk Fuel          5,300,000
                                     Facility.                          
    DFSP Fort Sill, OK............  Replace Fuel Storage       3,500,000
                                     Facility.                          
    Various Locations.............  Conforming Storage         1,300,000
                                     Facility.                          
Air National Guard:                                                     
    Alpena County National Airport  Sanitary Lines......       3,900,000
    Hector Field..................  Regional Fireman             800,000
                                     Training Facility.                 
                                                         ---------------
      Total.......................  ....................      92,534,000
------------------------------------------------------------------------

   Proposed Financing of Current Year Programs Via Prior Year Savings

    The budget request for fiscal year 1999 proposed partial 
financing of current year programs via prior year savings, as 
follows:

                                                                        
                                                                        
                                                                        
Family Housing, Army..................................        $1,639,000
Family Housing, Navy and Marine Corps.................         6,323,000
Family Housing, Air Force.............................         7,584,000
                                                       -----------------
   Total..............................................        15,546,000
                                                                        


    If program execution has resulted in identifiable prior 
year savings within individual projects, the correct financing 
method is to detail such savings and to request rescissions of 
funds by account and by fiscal year. The Committee directs the 
Department to follow the conventional rescission procedure in 
future budget submissions.

                           Transfer Authority

    The budget request proposed a general provision which would 
allow the transfer of up to $200,000,000 between any accounts 
in the bill, and this could be accomplished at the 
determination of the Secretary of Defense and upon the approval 
of OMB. Congress would be given an ``after the fact'' 
notification. The Committee believes that the existing 
reprogramming procedures are sufficient in solving urgent, high 
priority funding problems within available resources and denies 
this request.

                         Advance Appropriations

    The Department of Defense has requested advance 
appropriations in the amount of $568,550,000. Advance 
appropriations have not been requested in the past for large 
construction projects such as replacement hospitals, chemical 
demilitarization facilities, and comprehensive weapons beddown 
programs. A noteworthy example is the Portsmouth Naval Hospital 
for which the tenth and final increment is requested in fiscal 
year 1999. It is clearly impossible to project costs and 
execution schedules that far into the future. The Committee's 
experience with reprogramming requests is sufficient to 
demonstrate that cost estimates a single year into the future 
may be less than fully reliable.
    In addition, specific projects were not listed in the C-1 
as phased projects and contained no documentation of which 
projects were to receive advance appropriations. For example, 
the West Point Cadet Physical Development Center was requested 
at $12,000,000 for fiscal year 1999. The state listing made no 
mention that this was Phase I of an $85,000,000 project. 
Following is a breakout of the individual projects which total 
the $568,550,000 advance appropriation request. The Committee 
denies all of the advance appropriations and directs the 
Department to request these funds in the appropriate fiscal 
year.

 ADVANCE APPROPRIATIONS INCLUDED IN FY 1999 MILITARY CONSTRUCTION BUDGET
                                 REQUEST                                
------------------------------------------------------------------------
     Account and fiscal year         Amount         Location/project    
------------------------------------------------------------------------
MilCon, Army:                                                           
    2000........................   $72,000,000  Pine Bluff, AR:         
                                                 Ammunition             
                                                 Demilitarization       
                                                 Facility, Phase IV.    
    2000........................    60,750,000  Newport, IN: Ammunition 
                                                 Demilitarization       
                                                 Facility, Phase II.    
    2000........................    13,000,000  Fort Leavenworth, KS:   
                                                 Disciplinary Barrackes,
                                                 Phase III.             
    2000........................    58,500,000  Aberdeen, MD: Ammunition
                                                 Demilitarization       
                                                 Facility, Phase II.    
    2000........................    29,000,000  West Point, NY: Cadet   
                                                 Physical Development   
                                                 Center, Phase II.      
    2000........................     9,000,000  Umatilla, OR: Ammunition
                                                 Demilitarization       
                                                 Facility, Phase V.     
    2000........................    15,000,000  Fort Hood, TX: Railhead 
                                                 Facility, Phase II.    
    2000........................    36,000,000  Roi Namur, Kwajalein:   
                                                 Power Plant, Phase II. 
                                 --------------                         
      Subtotal..................   293,250,000  ........................
                                 ==============                         
MilCon, Army:                                                           
    2001........................    17,000,000  Pine Bluff, AR:         
                                                 Ammunition             
                                                 Demilitarization       
                                                 Facility, Phase V.     
    2001........................    87,500,000  Newport, IN: Ammunition 
                                                 Demilitarization       
                                                 Facility, Phase III.   
    2001........................    85,000,000  Aberdeen, MD: Ammunition
                                                 Demilitarization       
                                                 Facility, Phase III.   
                                 --------------                         
      Subtotal..................   189,500,000  ........................
                                 ==============                         
MilCon, Army:                                                           
    2002........................    13,800,000  Newport, IN: Ammunition 
                                                 Demilitarization       
                                                 Facility, Phase IV.    
    2002........................    14,500,000  Aberdeen, MD: Ammunition
                                                 Demilitarization       
                                                 Facility, Phase IV.    
    2002........................    44,000,000  West Point, NY: Cadet   
                                                 Physical Development   
                                                 Center, Phase III.     
                                 --------------                         
      Subtotal..................    72,300,000  ........................
                                 ==============                         
MilCon, Navy:                                                           
    2000........................    13,500,000  Norfolk NS, VA: Berthing
                                                 Pier, Phase II.        
                                 ==============                         
      Grand total...............   568,550,000  ........................
------------------------------------------------------------------------

                       Real Property Maintenance

    The Department is directed to continue to provide the real 
property maintenance backlog at all installations for which 
there is a requested construction project in future budget 
submissions. This information is to be provided on Form 1390. 
In addition, for all troop housing requests, the Form 1391 is 
to continue to show all real property maintenance conducted in 
the past two years and all future requirements for 
unaccompanied housing at that installation.

            Real Property Maintenance: Reporting Requirement

    The Service Secretary concerned is directed to notify the 
Military Construction Subcommittee of the Appropriations 
Committee before carrying out any repair project with an 
estimated cost in excess of $10,000,000. Further, the Committee 
continues to expect the general rules for repairing a facility 
under Operation and Maintenance account funding will be as 
follows:
    Components of the facility may be repaired by replacement, 
and such replacement can be up to current standards or codes.
    Interior rearrangements and restorations may be included as 
repair, but additions, new facilities, and functional 
conversions must be performed as military construction 
projects.
    Such projects may be done concurrent with repair projects, 
as long as the final conjunctively funded project is a complete 
and usable facility.

                    DOD Activities in Naples, Italy

    The Secretary of Defense is to report to the Committee on 
the current status of the relocation of the 16th Air Force 
Headquarters from Aviano Air Base, Italy to Naples, Italy and 
the move of Commander in Chief US Naval Forces, Europe from 
London, England to Naples, Italy. In particular, OSD is 
directed to look at the feasibility of using the newly 
constructed facilities at the Naval Support Activity, 
Capodichino, Italy in lieu of leased facilities. This report 
should be submitted to the Committee no later than December 1, 
1998.

                           Korea Master Plan

    Over the past 40 years there have been a number of 
facilities master plans for the Korean Peninsula. These plans 
have been adjusted many times as the force structure has 
evolved to respond to the changing threat, and, in particular, 
as obsolete equipment has been retired and modern systems have 
been fielded.
    A new facilities master plan (dated July 31, 1997) has been 
submitted to the Committee during January of 1998, and this 
document is intended to serve as a 20-year plan. The Committee 
commends United States Forces Korea (USFK) on this Theater 
Master Plan, which is designed to link all proposed near-term 
capital investments with the long-term strategic outlook. This 
process has promise for bringing more discipline into the 
programming and budgeting cycles.
    The Committee is disappointed that there is still a large 
inventory of inadequate facilities being utilized by U.S. 
forces stationed in Korea. Two major inhibitors to programming 
and budgeting for replacement facilities have been constant 
change in the force structure mix and attendant relocation of 
units among installations. This has had the effect of making it 
very likely that a new unit moving into existing installation 
will not find barracks and/or support facilities that meet its 
requirements. The Committee supports the introduction of modern 
weapons and equipment as a force multiplier, and recognizes 
that such changes will drive facilities requirements to some 
extent. However, many force structure changes and relocations 
have been made at the direction of Army leadership, and have 
been modified by changes in leadership with insufficient 
attention to facilities requirements.
    The current policy of USFK is to minimize the number of 
installations, to move out of the cities, to build around 
``hub'' installations, and to privatize infrastructure 
operations where feasible. The Committee supports these 
efforts, but is concerned about the potential for significant 
and adverse facilities impacts. The Committee believes that 
force stability is key to ensuring that soldiers and airmen are 
provided adequate facilities in which to live and work.
    The Committee will expect to be kept fully informed of 
modifications to the Theater Master Plan (dated July 31, 1997), 
and will expect any modifications to include detailed listing 
of any proposed unit relocations and equipment changes as well 
as cost/benefit analyses of such relocations and changes. 
Further, the Committee will expect that all future requests for 
construction projects on the Korean peninsula will be in 
support of this Theater Master Plan, and that any change, 
adjustment, deviation, or exception from this Theater Master 
Plan will be justified in detail to the Military Construction 
Subcommittee of the Appropriations Committee.

                     Program, Project and Activity

    For the purposes of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (Public Law 99-177) as amended by 
the Balanced Budget and Emergency Deficit Control Reaffirmation 
Act of 1987, (Public Law 100-119), the term ``Program, Project 
and Activity'' will continue to be defined as the appropriation 
account.

                         Planning and Budgeting

    The Committee relies on officials in the Department of 
Defense to provide the most honest assessment of competing 
facilities needs, based on the most informed judgment of 
military requirements. The Committee understands and supports 
the process the Department employs to identify requirements, to 
prioritize those requirements, and to live within budgetary 
constraints. It is the view of the Committee that the best way 
to accomplish this task is to have a disciplined long-range 
planning process, with annual adjustments to meet changing 
circumstances. The Committee supports efforts within the 
Services and within the Under Secretary of Defense 
(Comptroller) to formulate and present a coherent Future Years 
Defense Plan at the project level of detail, and encourages 
efforts to reconcile annual adjustments in this plan.

                           Metric Conversion

    The Committee directs the Comptroller of the Department of 
Defense to assure that any Form 1390/1391 which is presented as 
justification in metric measurement shall include 
parenthetically the English measurement.

                      Military Construction, Army

Fiscal year 1998 appropriation..........................    $714,377,000
Fiscal year 1999 estimate...............................     790,876,000
Committee recommendation in the bill....................     780,599,000
Comparison with:
    Fiscal year 1998 appropriation......................     +66,222,000
    Fiscal year 1999 estimate...........................     -10,277,000

    The Committee recommends a total of $780,599,000 for 
Military Construction, Army for fiscal year 1999. This is a 
decrease of $10,277,000 below the budget request for fiscal 
year 1999, and an increase of $66,222,000 above the 
appropriation for 1998.

                   chemical demilitarization program

    The budget request proposes that a total of $125,300,000 
should be appropriated under the ``Military Construction, 
Army'' account for chemical demilitarization facilities. As in 
prior years, the Committee recommends that these amounts be 
appropriated under the ``Military Construction, Defense-wide'' 
account, in order to facilitate the tracking of expenses for 
the Chemical Demilitarization Program, and to avoid distorting 
the size of the Army's military construction program. It is the 
Committee's view that this is an accounting decision, and that 
it will have no impact on the operation of the program or on 
administrative overhead expenses within the Office of the 
Secretary of Defense.

              california--fort irwin: defense access roads

    The Committee is aware of serious safety issues caused by 
the publicly accessible road network used by the National 
Training Center at Fort Irwin, California, as well as the 
operational constraints imposed by this road network. The 
Committee understands that there is an increased volume of 
traffic associated with the installation, and that a 
deteriorating safety situation has caused numerous accidents, 
including fatalities. The Secretary of the Army should review 
this situation and consider recommending that these roads be 
designated as defense access roads, and report his findings to 
the Committee by September 11, 1998.

       florida--miami: southcom headquarters and land acquisition

    At the time the U.S. Southern Command (SOUTHCOM) relocated 
from Panama, the Committee received assurances that no Military 
Construction or Family Housing investment would be required to 
accomplish the relocation, and that any and all facilities 
would be acquired by lease. The budget request includes 
$26,700,000 to purchase a facility adjacent to the Miami 
International Airport that is currently being leased as the 
SOUTHCOM headquarters. The building was occupied under an 
interim lease, and the Army signed a final lease on February 
27, 1998. This final lease provides for a firm term of ten 
years, with annual payments subject to the availability of 
funds, and the lease does not include a buy-out provision.
    In the aftermath of the Khobar Towers and Oklahoma City 
incidents, the Defense Special Weapons Agency conducted a force 
protection assessment and determined that the existing leased 
building requires a 19 acre security buffer. The Army then 
determined that acquisition of such a buffer would require 
approval by the Office of Management and Budget (OMB). OMB 
determined that the combined leases for the building and land 
met its criteria and policy considerations requiring either 
purchase or a capital lease. Therefore, OMB directed the Army 
to include a budget request for the purchase of both the 
building and the land.
    This is a special case, in that the headquarters building 
is not located on a military installation. The Committee is 
concerned that the Army decided on this location, lacking a 
security perimeter that would have been inherent to any 
existing military installation. The selected location also 
lacked supporting facilities such as unaccompanied housing, 
family housing, commissary, child care, medical facilities, 
dependent schools, and morale and welfare facilities. Further, 
planned construction of an additional runway at Miami 
International Airport will put the leased building in the glide 
path 100 percent of the time (a violation of Department of 
Defense guidelines).
    The Committee recommends no funds for acquisition of either 
the leased building or additional land. The Secretary of 
Defense is directed to report by January 15, 1999, on plans for 
acquisition of leased land for a security buffer, if required, 
as well as on consideration of relocating the SOUTHCOM 
headquarters from this leased location to an existing military 
installation.

massachusetts--westover air reserve base: military entrance processing 
                                station

    The Committee is concerned about potential slippage in the 
Army's plan to provide a Military Entrance Processing Station 
at Westover Air Reserve Base. Therefore, the Army is directed 
to accelerate the design of this project, and to include the 
required construction funding in its fiscal year 2000 budget 
request.

                new jersey--fort monmouth: traffic study

    The Committee is concerned over reports of severe traffic 
congestion at the main gate to Fort Monmouth, at the 
intersection of New Jersey Route 35 and Tinton Avenue. The Army 
is directed to report to the Committee by January 15, 1999 on 
traffic impacts outside the main gate, and on the need for on-
post and off-post traffic improvements.

                           italy--camp darby

    The Secretary of the Army is directed to report to the 
Committee by December 1, 1998 on the current and future use of 
Camp Darby, Italy. This report should include the status of all 
NATO Security Investment Program funds to be expended at this 
installation.

               korea--camp casey: physical fitness center

    The Committee is aware that the existing physical fitness 
center at Camp Casey is antiquated and under-sized to support 
an authorized fiscal year 1998 military population of 6,069. 
The existing facility is a 37-year-old quonset hut structure, 
requiring constant maintenance, is energy inefficient, and at 
25,644 square feet is severely undersized to serve the soldiers 
stationed at Camp Casey. The Army is directed to accelerate 
design and include this physical fitness center in the fiscal 
year 2000 budget request.

                      Military Construction, Navy

Fiscal year 1998 appropriation..........................    $683,666,000
Fiscal year 1999 estimate...............................     468,150,000
Committee recommendation in the bill....................     570,643,000
Comparison with:
    Fiscal year 1998 appropriation......................    -113,023,000
    Fiscal year 1999 estimate...........................    +102,493,000

    The Committee recommends a total of $570,643,000 for 
Military Construction, Navy for fiscal year 1999. This is an 
increase of $102,493,000 above the budget request for fiscal 
year 1999, and a decrease of $113,023,000 below the 
appropriation for fiscal year 1998.

   california--corona fleet analysis detachment: measurement science 
                               laboratory

    The Navy is directed to accelerate the design of the 
Measurement Science Laboratory, and to include funding for this 
project in its fiscal year 2000 budget request.

        california--port hueneme: combat systems integration lab

    The Navy is directed to accelerate the design of the Combat 
Systems Integration Lab at the Port Hueneme Division of the 
Naval Surface Warfare Center, and to include funding for this 
project in its fiscal year 2000 budget request.

                    Military Construction, Air Force

Fiscal year 1998 appropriation..........................    $701,855,000
Fiscal year 1999 estimate...............................     454,810,000
Committee recommendation in the bill....................     550,475,000
Comparison with:
    Fiscal year 1998 appropriation......................    -151,380,000
    Fiscal year 1999 estimate...........................     +95,665,000

    The Committee recommends a total of $550,475,000 for 
Military Construction, Air Force for fiscal year 1999. This is 
an increase of $95,665,000 above the budget request for fiscal 
year 1999, and a decrease of $151,380,000 below the 
appropriation for fiscal year 1998.

kansas--McConnell afb: kc-135 squadron operations/aircraft maintenance 
                                unit #3

    The Air Force is directed to accelerate the design of the 
KC-135 Squadron Operations/Aircraft Maintenance Unit #3 project 
at McConnell AFB, and to include the required construction 
funding in its fiscal year 2000 budget request.

new york--rome laboratory: consolidated intelligence and reconnaissance 
                               laboratory

    The Committee is aware of the planned construction of a 
consolidated Intelligence and Reconnaissance Laboratory at the 
Air Force's Research Laboratory in Rome, New York, which will 
create operational and economic efficiencies in place of 
current structures available for this mission. The Air Force is 
directed to accelerate the design of this project, and to 
include the required construction funding in its fiscal year 
2000 budget request.

                  Military Construction, Defense-wide

Fiscal year 1998 appropriation..........................    $646,342,000
Fiscal year 1999 estimate...............................     491,675,000
Committee recommendation in the bill....................     611,075,000
Comparison with:
    Fiscal year 1998 appropriation......................     -35,267,000
    Fiscal year 1999 estimate...........................    +119,400,000

    The Committee recommends a total of $611,075,000 for 
Military Construction, Defense-wide for fiscal year 1999. This 
is an increase of $119,400,000 above the budget request for 
fiscal year 1999 and a decrease of $35,267,000 below the 
appropriation for fiscal year 1998.

               CHEMICAL WEAPONS DEMILITARIZATION PROGRAM

    The budget request includes a total of $125,300,000 for the 
following funding increments for the chemical weapons 
demilitarization program for fiscal year 1999:

------------------------------------------------------------------------
      State             Installation           Project         Amount   
------------------------------------------------------------------------
Arkansas.........  Pine Bluff Arsenal...  Ammunition         $16,500,000
                                           demilitarizatio              
                                           n facility                   
                                           (Phase III).                 
Indiana..........  Newport AAP..........  Ammunition          27,500,000
                                           demilitarizatio              
                                           n facility                   
                                           (Phase I).                   
Indiana..........  Newport AAP..........  Ammunition           2,000,000
                                           demilitarizatio              
                                           n support.                   
Maryland.........  Aberdeen PG..........  Ammunition          26,500,000
                                           demilitarizatio              
                                           n facility                   
                                           (Phase I).                   
Maryland.........  Aberdeen PG..........  Ammunition           1,850,000
                                           demilitarizatio              
                                           n support.                   
Oregon...........  Umatilla AD..........  Ammunition          50,950,000
                                           demilitarizatio              
                                           n facility                   
                                           (Phase IV).                  
                                                           -------------
    Total........  .....................  ................   125,300,000
------------------------------------------------------------------------

    The budget request proposes that these amounts should be 
appropriated under the ``Military Construction, Army'' account. 
As in prior years, the Committee recommends that these amounts 
be appropriated under the ``Military Construction, Defense-
wide'' account, in order to facilitate the tracking of expenses 
for the Chemical Demilitarization Program, and to avoid 
distorting the size of the Army's military construction 
program.
    The following chart displays the scope of the military 
construction investment in the overall chemical 
demilitarization program:

                          CHEMICAL DEMILITARIZATION PROGRAM MILITARY CONSTRUCTION COSTS                         
                                 [Current year dollars in millions/fiscal year]                                 
----------------------------------------------------------------------------------------------------------------
                                          FY97                                                                  
                Project                    and     FY98      FY99      FY00     FY01    FY02    FY03     Total  
                                          prior                                                                 
----------------------------------------------------------------------------------------------------------------
PM-Chem Demil Training Facility........    16.1  ........  ........  ........  ......  ......  ......      16.1 
Tooele, UT Facility....................   198.0  ........  ........  ........  ......  ......  ......     198.0 
Anniston, AL Facility..................   150.0      9.9   ........      7.0   ......  ......  ......     166.9 
Depot Support..........................    14.3  ........  ........  ........  ......  ......  ......      14.3 
Umatilla, OR Facility..................    76.0     57.43     51.0       9.0   ......  ......  ......     193.43
Depot Support..........................    11.2  ........  ........  ........  ......  ......  ......      11.2 
Pine Bluff AR Facility.................    49.0  ........     16.5      72.0     17.0  ......  ......     154.5 
Depot Support..........................  ......     10.0   ........  ........  ......  ......  ......      10.0 
Pueblo, CO \1\ Facility................  ......  ........  ........     12.0     52.0    96.5    34.0     194.5 
Depot Support..........................     6.3  ........  ........  ........  ......  ......  ......       6.3 
Blue Grass, KY Facility................  ......  ........  ........     12.0     52.0    92.0    30.8     186.8 
Depot Support..........................  ......  ........  ........     11.2   ......  ......  ......      11.2 
Aberdeen, MD Facility..................  ......  ........     26.5      58.5     85.0    14.5  ......     184.5 
Depot Support..........................  ......  ........      1.85  ........  ......  ......  ......       1.85
Newport, IN Facility...................  ......  ........     27.5      60.75    87.5    13.8  ......     189.55
Depot Support..........................  ......  ........      2.0   ........  ......  ......  ......       2.0 
Planning & Design......................   105.3      9.2   ........  ........  ......  ......  ......     114.5 
                                        ------------------------------------------------------------------------
      Total............................   626.2     86.53    125.35    242.45   293.5   216.8    64.8   1,665.63 
----------------------------------------------------------------------------------------------------------------
\1\ Funding requirement may change pending assessment of Assembled Chemical Weapon Assessment Program in        
  consonance with Public Law 104-208.                                                                           

    The following chart displays the timetable and the 
milestones for completion of the chemical demilitarization 
program:

                           CHEMICAL DEMILITARIZATION PROGRAM TIMETABLE AND MILESTONES                           
----------------------------------------------------------------------------------------------------------------
               Location                 Start of construction    Start of systemization         Operations      
----------------------------------------------------------------------------------------------------------------
Johnston Atoll \1\...................  .......................  .......................  3QFY90-4QFY00          
Tooele, UT...........................  .......................  .......................  4QFY96-4QFY03          
Anniston, AL.........................  3QFY97.................  2QFY00.................  2QFY02-1QFY06          
Umatilla, OR.........................  3QFY97.................  3QFY00.................  2QFY02-3QFY05          
Pine Bluff, AR.......................  4QFY98.................  3QFY01.................  2QFY03-3QFY06          
Pueblo, CO \2\.......................  On Hold................  .......................  On Hand                
Blue Grass, KY \2\...................  On Hold................  .......................  .......................
Aberdeen, MD \3\.....................  1QFY99.................  3QFY02.................  2QFY04-1QFY05          
Newport, IN \3\......................  1QFY99.................  4zQFY02................  3QFY04-1QFY05          
----------------------------------------------------------------------------------------------------------------
\1\ Full-scale operations began 2QFY94.                                                                         
\2\ Schedule on-hold as directed by Public Law 104-208 pending technology evaluation by Program Manager for     
  Assembled Chemical Weapon Assessment.                                                                         
\3\ Schedule represents employment of neutralization-based technology. Start of construction milestones         
  represents the ``start of design/build'' effort.                                                              

                 energy conservation investment program

    In future budget submissions, the Committee will expect 
project-level information on the Energy Conservation Investment 
Program (ECIP) to be presented in tabular form, rather than in 
Form 1391 level of detail.

                    energy recovery controller units

    The Committee is aware of the possibility of significant 
energy cost savings through the use of energy recovery 
controller units in military family housing units. The 
Department is directed to explore this technology, and to 
evaluate the savings to investment ratios and payback periods 
related to the possible use of such units in the San Diego, 
California, area. The Committee directs the Secretary of 
Defense to report the findings of this evaluation by January 
15, 1999.

 Department of Defense Military Unaccompanied Housing Improvement Fund

    Two years ago, the Committee initiated and appropriated 
$5,000,000 for the Military Unaccompanied Housing Improvement 
Fund in order to demonstrate its support for privatization. The 
Committee notes that the Program and Financing statement for 
the Fund shows that the full $5,000,000 available in this 
account will be obligated during fiscal year 1998. The 
Committee is concerned that the market for private development 
of barracks is minimal and that the Department has not yet 
identified any requirements against the $5,000,000 appropriated 
in fiscal year 1997. The Secretary of Defense is to report to 
the Committee by December 1, 1998 on the progress and 
feasibility of continuing this initiative.

                                Overview

    The National Defense Authorization Act for fiscal year 
1996, P.L. 104-106, established new authorities to increase the 
use of the private sector and capital to improve unaccompanied 
housing. The authorities include: direct loans and loan 
guarantees to private developers; leasing of new housing; 
investments in nongovernmental entities; rental guarantees; 
differential lease payments and conveyance or lease of existing 
property and facilities.
    The Military Unaccompanied Housing Improvement Fund will be 
used to build or renovate unaccompanied housing, mixing or 
matching the various authorities contained in the 
authorization, and utilize private capital and expertise to the 
maximum extent possible. This fund is to contain appropriated 
and transferred funds from military construction accounts, and 
the total value in budget authority of all contracts and 
investments undertaken may not exceed $150,000,000. Sources for 
transfers into the funds are solely to be derived from funds 
appropriated for the acquisition or construction of military 
unaccompanied housing. Transfers into the fund are authorized 
contingent upon a 30-day notification by the Secretary of 
Defense to the appropriate committees of Congress. Proceeds 
from investments, leases, and conveyances are to be deposited 
into this Fund, and any use of the Fund is subject to annual 
appropriations. The Military Unaccompanied Housing Improvement 
Fund is to be administered as a single account without fiscal 
year limitations and the authority to enter into contracts and 
partnerships and to make investments shall expire on September 
30, 2000.

                         Reporting Requirements

    The Committee notes Section 124 of the General Provisions 
of this bill requires the Secretary of Defense to notify 
Congressional Committees sixty days prior to issuing a 
solicitation for a contract with the private sector for 
unaccompanied military personnel housing.
    The Service Secretary concerned may not enter into any 
contract until after the end of the 21-day period beginning on 
the date the Secretary concerned submits written notice of the 
nature and terms of the contract to the appropriate Committees 
of Congress. To clarify existing reporting requirements, this 
21-day notification requirement applies to any project, 
regardless of whether it is financed entirely by transfer of 
funds into the Military Unaccompanied Housing Improvement Fund, 
or it is fully financed within funds available in the Military 
Unaccompanied Housing Improvement Fund, or it is funded by 
combining transferred funds with funds available in the Fund.
    Budget justification documents are to display project and 
administrative costs. No transfer of appropriated funds into 
the account may take place until after the end of the 30-day 
period beginning on the date the Secretary of Defense submits 
written notice and justification for the transfer to the 
appropriate Committees of Congress. The Appropriations 
Committee expects to receive prior notification of all such 
transfers of funds.

               Military Construction, Reserve Components

Fiscal year 1998:
    Appropriation.......................................    $460,533,000
    Supplemental Appropriation..........................       3,700,000
      Total.............................................     464,233,000
Fiscal year 1999 estimate...............................     179,529,000
Committee recommendation in the bill....................     309,025,000
Comparison with:
    Fiscal year 1998 total appropriation................    -155,208,000
    Fiscal year 1999 estimate...........................    +129,496,000

    The Committee recommends a total of $309,025,000 for 
Military Construction, Reserve Components for fiscal year 1999. 
This is an increase of $129,496,000 above the budget request 
for fiscal year 1999, and a decrease of $155,208,000 below the 
total appropriation for fiscal year 1998.
    The Committee's recommended action on each Reserve 
Component is reflected in the State list at the end of this 
report.
    The Committee recommends approval of Military Construction, 
as follows:

------------------------------------------------------------------------
               Component                    Request        Recommended  
------------------------------------------------------------------------
Army National Guard...................      $47,675,000      $70,338,000
Air National Guard....................       34,761,000       97,701,000
Army Reserve..........................       71,287,000       71,894,000
Naval Reserve.........................       15,271,000       33,721,000
Air Force Reserve.....................       10,535,000       35,371,000
                                       ---------------------------------
      Total...........................      179,529,000      309,025,000
------------------------------------------------------------------------

                          Army National Guard

                 Annual Reporting Requirement--Backlog

    The Committee directs the Secretary of the Army and the 
Director of the Army National Guard to continue to make a joint 
report annually on the current backlog of facilities 
requirements of the Army National Guard to be submitted 
concurrently with the annual budget request.

          annual reporting requirement--armory infrastructure

    The Secretary of the Army, the Director of the National 
Guard Bureau, and the Director of the Army National Guard are 
directed to continue to report jointly to the Committee by 
January 1, 1999 on the status of armory infrastructure.

            california--los angeles/azusa: readiness center

    The Committee directs the Secretary of the Army to report 
by January 15, 1999 on the plan and schedule for the 
consolidation and replacement of existing armories in Los 
Angeles, California.

        west virginia--camp dawson (kingwood): readiness center

    Funding for this project was appropriated in fiscal year 
1998. The project was proposed for line-item veto, and was re-
submitted in the budget request for fiscal year 1999. 
Subsequently, Congress overrode the proposed line-item veto. 
Therefore, the project is fully funded and no further funding 
is required.

                           Air National Guard

                     unspecified minor construction

    Within funds provided for Unspecified Minor Construction, 
the Committee directs the Air National Guard to carry out 
projects to upgrade the control tower and to upgrade airfield 
facilities at the Stanly County Airport in North Carolina.

                              Army Reserve

     utah--salt lake city: u.s. army reserve center/organizational 
                            maintenance shop

    The fiscal year 1998 appropriations bill provided 
$12,714,000 for this relocation effort. However, the project 
was proposed for line-item veto, and was re-submitted in the 
budget request for fiscal year 1999. Subsequently, Congress 
overrode the proposed line-item veto. Therefore, the amount 
included in the budget request is not required, but an 
increment above the fiscal year 1998 appropriation is required. 
Therefore, the Committee recommends $5,076,000 as the second 
phase of funding for this project, to match the total 
authorized amount of $17,790,000.

                       future years defense plan

    It is the Committee's view that section 123 of Public Law 
104-196 constitutes a continuing permanent requirement for the 
Army National Guard and the Air National Guard to present the 
Future Years Defense Plan to Congress concurrent with the 
President's budget submission for each fiscal year. The 
Committee will expect subsequent submissions of the Future 
Years Defense Plan to include explanatory notes justifying any 
modification of prior year plans.

     North Atlantic Treaty Organization Security Investment Program

                                                                        
                                                                        
                                                                        
Fiscal year 1998 appropriation........................      $152,600,000
Fiscal year 1999 estimate.............................       185,000,000
Committee recommendation in the bill..................       169,000,000
Comparison with:                                                        
    Fiscal year 1998 appropriation....................       +16,400,000
    Fiscal year 1999 estimate.........................       -16,000,000
                                                                        

    The Committee recommends a total of $169,000,000 for the 
North Atlantic Treaty Organization Security Investment Program 
(NSIP). This is a decrease of $16,000,000 below the budget 
request for fiscal year 1999 and an increase of $16,400,000 
above the appropriation for fiscal year 1998.
    For 1999, the NATO nations have agreed on a funding level 
of approximately $730,000,000. Of this amount, the U.S. 
requirement is based on a cost share which averages about 26%. 
In addition to the recommended appropriation of 
$169,000,000,approximately $11,000,000 is expected to be available from 
recoupments from prior year U.S. funded work, and from deobligation of 
NATO funds for previously obligated projects that were reduced in scope 
or canceled.
    The Committee continues to support full U.S. participation 
in the NSIP program. Recent expenditures do not support fiscal 
year 1999 expenditures as foreseen by the Department of 
Defense. The foreign currency fluctuation has increased the 
value of the U.S. dollar against most other NATO nation's 
currencies. Also, additional recoupments of the U.S. 
prefinanced funds should be realized. Therefore, the Committee 
has reduced the budget request by $16,000,000 and notes that 
this is a $16,400,000 increase above fiscal year 1998. This 
funding should be sufficient to satisfy the Secretary's 
commitments to NATO.
    The Department of Defense is directed to continue to report 
to the Committees on Appropriations, on a quarterly basis, the 
following information:
          (1) NATO nations share of construction costs based on 
        fund authorizations;
          (2) NATO nations shares of procurement costs based on 
        fund authorizations; and
          (3) A listing of all obligations incurred that 
        quarter broken out by infrastructure category and 
        procurement category. This listing should show the 
        total project costs, the U.S. cost share and all other 
        NATO nations cost shares.

                             NATO Expansion

    The Committee continues the requirement that no funds will 
be used for projects (including planning and design) related to 
the enlargement of NATO and the Partnership for Peace, unless 
Congress is notified 21 days in advance of the obligation of 
funds. In addition, the Committee's intent is that Section 110 
of the General Provisions shall apply to this program.
    The Department of Defense is directed to identify 
separately the level of effort anticipated for NATO enlargement 
and for Partnership for Peace for that fiscal year in future 
budget justifications.

                             Family Housing

                                Overview

    The need for military family housing has changed with the 
all-volunteer structure of the force. In the mid-1950s forty-
two percent of the force was married, compared to sixty-one 
percent today. The percentage of service members with families 
will continue to grow, and the nature of an all-volunteer force 
implies greater expectations for the availability, size and 
amenities of family housing. At the same time, the Department 
is faced with a changing military environment due to overseas 
reductions, domestic base closures, major force reductions, and 
increased deployments.
    Today, the family housing program is even more important 
because it provides a quality of life incentive which attracts 
and retains dedicated individuals to serve in the military. 
However, the housing deficiencies are a severe disincentive to 
reenlistment. Testimony before the Committee states that it 
costs over $34,200 to recruit and train and enlist a member of 
the Army for the first assignment. This investment is lost each 
time a soldier must be replaced. The Committee has no question 
that housing is directly linked to readiness, morale and 
retention.
    While this Committee has focused on the need for adequate 
family housing over the years, resources have been scarce. The 
family housing crisis exists today due to the majority of 
housing in the Department's inventory being substandard; high 
cost areas where housing deficits exist; and problems young 
families are facing who cannot afford to live in local 
communities.
    DOD policy is that married couples will live off-base when 
the economy can support them, and about two-thirds of all 
military families do reside off-base. Where there is sufficient 
affordable housing in the community and commuting distances are 
not over one hour, most of these families are doing well. 
However, 12 percent of military families living in civilian 
communities are in substandard housing. This is often the case 
when rents are excessive or a family can only afford to live in 
distant, isolated, and sometimes unsafe neighborhoods. This is 
occurring more often because housing allowances are covering 
only 80 percent of the cost of civilian housing, on average. 
Many younger families only have one car and are faced with 
driving distances of over an hour to the installation. In some 
instances, families are choosing to remain separated simply 
because suitable, affordable housing is not available at a new 
assignment.
    The Department of Defense has a total of 313,000 on-base 
housing units in its inventory, with an average age of 36 
years. Two-thirds of the inventory is over 30 years old and 
requires a substantial annual investment to meet maintenance 
requirements. Over the years, the majority of these homes have 
gone without adequate maintenance and repair. And over fifty 
percent of the inventory, or 187,810 units, is in need of major 
improvements or replacement at a total cost of $15,064,808,000.
    Unsuitable units require a major investment in maintenance 
and repair to correct deteriorated infrastructure, provide 
basic living standards and meet contemporary code requirements 
for electrical and mechanical systems, and for energy 
efficiency. Examples provided to the Committee of a typical 
scenario military families face include: severe health and 
safety deficiencies such as electrical systems and water pipes 
needing replacement; non-working or inefficient heating and 
cooling systems; nails coming through the ceilings and floors; 
kitchen cabinets water-logged and sinking; ceiling and wall 
paint chipped and peeling; screens with holes in them; doors 
coming apart; malfunctioning smoke detectors; light fixtures 
broken, and stoves and ovens with elements not working. The 
current backlog of deferred maintenance and repair totals in 
excess of $2,780,000,000. When housing units are not adequately 
maintained, eventually they must be closed and abandoned or 
demolished. Families who could have been housed in these units 
must then live off-base. In turn, this creates an additional 
expense for payment of housing allowances.
    Aside from the problems confronting the current inventory, 
the Department estimates a new construction deficit of 51,330 
units at a cost of $5,309,274,000. It will be necessary to use 
many different approaches to help meet the current family 
housing need. The challenge is for a sustained overall 
commitment, at funding levels that will reduce the backlog of 
inadequate houses, reduce the housing deficits, and increase 
the quality of living conditions in a reasonable period of 
time. The Department estimates it will take over 
$20,374,082,000 to correct the existing problem.
    The following chart provides a Service breakout of the 
current family housing deficit, both in units and in cost of 
new construction, replacement, improvements and deferred 
maintenance and repair:

                                                                                                                
                                                                                                                
                                         DEFICITS (CURRENT PROJECTIONS)                                         
                                             [Dollars in thousands]                                             
----------------------------------------------------------------------------------------------------------------
                                                    New                                                         
                                                construction     Replacement      Improvement      Grand total  
----------------------------------------------------------------------------------------------------------------
Army:                                                                                                           
    Number of Units.........................           10,322           87,027  ...............           97,349
    Costs...................................       $1,300,000       $5,700,000  ...............       $7,000,000
Navy:                                                                                                           
    Number of Units.........................           15,000            4,500           22,800           42,300
    Costs...................................         $681,100         $695,800       $1,447,800       $2,824,700
Air Force:                                                                                                      
    Number of Units.........................           16,000           30,000           31,000           77,000
    Costs...................................       $2,016,000       $3,780,000       $2,480,000       $8,276,000
Marine Corps:                                                                                                   
    Number of Units.........................           10,008              511           11,972           22,491
    Costs...................................       $1,312,174         $114,639         $846,569       $2,273,382
Total DoD:                                                                                                      
    Number of Units.........................           51,330          122,038           65,772          239,140
    Costs...................................       $5,309,274      $10,290,439       $4,774,369      $20,374,082
----------------------------------------------------------------------------------------------------------------

                         construction overview

    The Committee is concerned over the fiscal year 1999 budget 
request for family housing new construction and construction 
improvements of $592,846,000. Housing continues to be a top 
priority, yet the Department's budget represents a reduction of 
$262,274,000 or 31%, from the fiscal year 1998 appropriation 
for new construction and construction improvements. The 
Committee strongly believes it is imperative that construction 
funding levels must be maintained, along with any privatization 
efforts, to help resolve the serious family housing deficits. 
The Committee recommends total funding of $642,196,000 for 
family housing construction and improvements for fiscal year 
1999, an increase of $49,350,000 above the budget request. 
However, of this amount $235,438,000 has been funded under the 
Department of Defense Family Housing Improvement Fund.

                        new housing construction

    The fiscal year 1999 request is $270,103,000 to build 1666 
units of new family housing for all Services. This is 
$166,686,000 or 38 percent, under the fiscal year 1998 enacted 
level. The Committee has approved all requested projects for 
new construction. In addition, the Committee has recommended an 
additional $30,550,000 to construct 205 units of new family 
housing. The total appropriation for new construction is 
$300,653,000. However, of this amount $105,484,000 has been 
funded under the Department of Defense Family Housing 
Improvement Fund. Details of the Committee's recommendations 
for new construction are provided in this report under the 
individual component accounts and the Department of Defense 
Family Housing Improvement Fund. The Committee expects that 
none of the approved projects will be reduced in scope.
    It is the understanding of the Committee, that upon a 30-
day notification from the Secretary of Defense, and approval of 
the Committee, funds appropriated for a new construction 
project may be transferred to the Defense Family Housing 
Improvement Fund for the purpose of a private sector pilot 
project at the same location.

                       construction improvements

    A total of $322,743,000 has been requested for post-
acquisition construction for all services to improve 4028 
housing units. This is a decrease of $95,588,000, or 23 
percent, from the fiscal year 1998 enacted level. Post-
acquisition construction is focused on modernizing existing 
units that are uneconomical to repair. In addition, the 
Committee has provided an additional $18,800,000 for 
construction improvement projects which are listed in this 
report under the individual component accounts, to improve an 
additional units. The total appropriation for post-acquisition 
construction is $341,543,000 and will improve 4303 units of 
family housing. However, of this amount $129,954,000 has been 
funded under the Department of Defense Family Housing 
Improvement Fund.
    It is the understanding of the Committee, that upon a 30-
day notification from the Secretary of Defense, and approval of 
the Committee, funds appropriated for a construction 
improvement project may be transferred to the Defense Family 
Housing Improvement Fund for the purpose of a private sector 
pilot project at the same location.
    The Committee continues the restriction on the amount 
invested in improving foreign source housing units. The three-
year limitation on overseas units is $35,000. If the components 
intend to program improvements to specific units which exceed 
$35,000 over a period of three years, total funding should be 
requested in one year. The justification for each unit should 
identify all improvements and major maintenance work done in 
the past three years, and all improvements and major 
maintenance planned in the following three years.

                       operation and maintenance

    The fiscal year 1999 request for operation and maintenance 
expenses totals $2,846,920,000, a decrease of $133,110,000 from 
the fiscal year 1998 appropriation. The Committee recommends an 
appropriation of $2,835,093,000 for fiscal year 1999. These 
accounts provide for annual expenditures for maintenance and 
repair, furnishings, management, services, utilities, leasing, 
interest, mortgage insurance and miscellaneous expenses. Of the 
total request for operation and maintenance, $1,272,567,000 is 
for maintenance and repair of existing housing, a reduction of 
$68,086,000 from fiscal year 1998 levels.
    The Committee directs that any savings from foreign 
currency re-estimations in the family housing operation and 
maintenance accounts be applied for maintenance of existing 
family housing units. The Comptroller is directed to report to 
the Committee on the allocation of this savings by December 1, 
1998.
    Expenditures from this account for general and flag officer 
quarters are to be reported in accordance with the guidelines 
previously established and reiterated later in this report. The 
Committee also continues the direction that the details of all 
other expenditures from this account which exceed $15,000 per 
unit, per year for major maintenance and repair of non-general 
and flag officer quarters be included as part of the 
justification material. The general provision limiting 
obligations from this account to no more than 20 percent of the 
total in the last two months of the fiscal year is included in 
this year's bill.
    The Committee continues the restriction on the transfer of 
funds between the operation and maintenance accounts. The 
limitation is ten percent to all primary accounts and 
subaccounts. Such transfers are to be reported to the Committee 
within thirty days of such action.

                   general and flag officer quarters

    The existing reporting requirements for general and flag 
officer quarters continue in full force and effect, in order to 
control expenditures for high cost quarters. The purpose of 
these requirements is to ensure that the total amount of all 
obligations for maintenance and repair (excluding operations) 
on each general or flag officer quarters is limited to $25,000 
per year, unless specifically included in the annual budget 
justification material. This continues the policy initiated in 
1984 and developed and elaborated over several years, to ensure 
that separate controls are established for orderly planning and 
programming to accomplish this work.
    Recognizing the uncertainties involved in accurately 
forecasting ``change in occupancy'' work, the Committee 
continues the following previously established notification 
requirement. The Committee must be notified when maintenance 
and repair costs for a unit will exceed the amount submitted in 
the budget justification by 25 percent or $5,000, whichever is 
less. The Committee must also be notified when maintenance and 
repair costs will exceed $25,000 for a unit not requested in 
the budget justification.
    Notifications of each proposed expenditure must be 
submitted over the signature of the Service Secretary for case-
by-case review and approval. Each Service is directed to 
continue to limit out-of-cycle submissions to one per year, 
except for situations which are justified as emergencies or 
safety-related.

                     leasing reporting requirement

    The Committee continues the reporting requirement for both 
domestic and foreign leases. For domestic leases (not funded by 
the Defense Family Housing Improvement Fund), the Department is 
directed to report quarterly on the details of all new or 
renewal domestic leases entered into during the previous 
quarter which exceed $12,000 per unit per year, including 
certification that less expensive housing was not available for 
lease. For foreign leases, the Department is directed to: 
perform an economic analysis on all new leases or lease/
contract agreements where more than 25 units are involved; 
report the details of any new or renewal lease exceeding 
$20,000 per year (as adjusted for foreign currency fluctuation 
from October 1, 1987, but not adjusted for inflation), 21 days 
prior to entering into such an agreement; and base leasing 
decisions on the economic analysis.

exclusion of asbestos and lead-based paint removal from maintenance and 
                             repair limits

    The Committee continues the requirement of an after-the-
fact notification where asbestos and/or lead-based paint 
removal costs cause the maintenance and repair thresholds of 
$15,000 for a military family housing unit, or $25,000 for a 
General or Flag Officer Quarters, to be exceeded. The 
notification shall include work, scope, cost break-out and 
other details pertinent to asbestos and/or lead-based paint 
removal work and shall be reported on a semi-annual basis.

                         reprogramming criteria

    The reprogramming criteria that apply to military 
construction projects (25 percent of the funded amount or 
$2,000,000, whichever is less) also apply to new housing 
construction projects and to improvement projects over 
$2,000,000.

           family housing--fiscal year 2000 budget submission

    The Committee directs the Comptroller of Defense to 
thoroughly review the Service Component's, particularly the 
Navy's, budget submissions for fiscal year 2000 to ensure that 
all family housing maintenance and construction improvements 
are funded in the appropriate sub-accounts.

                      family housing master plans

    The individual components are in the process of developing 
family housing master plans to meet the goal of eliminating the 
inadequate housing inventory by 2010 using the combination of 
traditional construction, privatization and demolition. The Air 
Force intends to have its Family Housing Master Plan completed 
by December 1998. The Committee will expect to be advised as 
these plans develop.

                          Family Housing, Army

                                                                        
                                                                        
                                                                        
Fiscal year 1998 appropriation........................    $1,337,868,000
Fiscal year 1999 estimate.............................     1,208,173,000
Committee recommendation in the bill..................     1,180,537,000
Comparison with:                                                        
    Fiscal year 1998 appropriation....................      -157,331,000
    Fiscal year 1999 estimate.........................       -27,636,000
                                                                        

    The Committee recommends a total of $1,180,537,000 for 
Family Housing, Army for fiscal year 1999. This is a decrease 
of $27,636,000 below the budget request for fiscal year 1999, 
and a decrease of $157,331,000 below the appropriation for 
fiscal year 1998. However, a total of $41,400,000 has been 
funded under the Department of Defense Family Housing 
Improvement Fund.

                              construction

    The Committee recommends $41,700,000 for new construction, 
instead of $70,100,000, as requested, as shown below. The 
Committee notes that projects totalling $41,400,000 are funded 
under the DOD Family Housing Improvement Fund.

----------------------------------------------------------------------------------------------------------------
                       Location/Project                        Number of Units     Requested       Recommended  
----------------------------------------------------------------------------------------------------------------
Army:                                                                                                           
    Alabama--Redstone Arsenal................................              118       14,000,000       14,000,000
    Hawaii--Schofield Barracks...............................               64       14,700,000       14,700,000
    North Carolina--Fort Bragg...............................            (170)       19,800,000            \1\ 0
    Texas--Fort Hood.........................................            (154)       21,600,000            \1\ 0
    Virginia--Fort Lee.......................................               80                0       13,000,000
                                                              --------------------------------------------------
      Total, Army............................................              262       70,100,000       41,700,000
----------------------------------------------------------------------------------------------------------------
\1\ Projects funded under DOD Family Housing Improvement Fund.                                                  

                       Construction Improvements

    The following project is to be accomplished within the 
additional amount provided for construction improvements:

------------------------------------------------------------------------
           Location/Project             Number of units    Recommended  
------------------------------------------------------------------------
    Kentucky--Fort Campbell...........              104        8,800,000
------------------------------------------------------------------------

                 Family Housing, Navy and Marine Corps

Fiscal year 1998:
    Appropriation.......................................  $1,370,336,000
    Supplemental appropriation..........................      18,100,000
      Total.............................................   1,388,436,000
Fiscal year 1999 estimate...............................   1,196,083,000
Committee recommendation in the bill....................   1,045,750,000
Comparison with:
    Fiscal year 1998 total appropriation................    -342,686,000
    Fiscal year 1999 estimate...........................    -150,333,000

    The Committee recommends a total of $1,045,750,000 for 
Family Housing, Navy and Marine Corps for fiscal year 1999. 
This is a decrease of $150,333,000 below the budget request for 
fiscal year 1999, and a decrease of $342,686,000 below the 
total appropriation for fiscal year 1998. However, a total of 
$160,333,000 has been funded under the Department of Defense 
Family Housing Improvement Fund.

                              Construction

    The Committee recommends $29,125,000 for new construction, 
instead of $59,504,000, as requested, as shown below. The 
Committee notes that a project in the amount of $30,379,000 is 
funded under DOD Family Housing Improvement Fund.

----------------------------------------------------------------------------------------------------------------
                       Location/Project                        Number of units     Requested       Recommended  
----------------------------------------------------------------------------------------------------------------
Navy:                                                                                                           
California-Lemoore Naval Air Station.........................            (162)       30,379,000            \1\ 0
Hawaii-Naval Complex, Oahu...................................              150       29,125,000       29,125,000
                                                              --------------------------------------------------
      Total, Navy............................................              150       59,504,000       29,125,000
----------------------------------------------------------------------------------------------------------------
\1\ Project funded under DOD Family Housing Improvement Fund.                                                   

                       Construction Improvements

    The following project is to be accomplished within the 
additional amount provided for construction improvements:

------------------------------------------------------------------------
           Location/Project             Number of units    Recommended  
------------------------------------------------------------------------
    California--Camp Pendleton........              171       10,000,000
------------------------------------------------------------------------

    The Committee notes that $129,954,000 in requested 
construction improvements has been funded under the Department 
of Defense Family Housing Improvement Fund. Those projects are 
listed under that section of this report.

     washington--naval station puget sound, everett: real property 
                               conveyance

    Section 125 of this bill provides an appropriation of 
$6,000,000 in proceeds from the sale of land and family housing 
units at Paine Field. This funding will be used to acquire 
additional housing units for Naval Station Everett, as part of 
the follow-on Public Private Venture project at Everett.

                       Family Housing, Air Force

Fiscal year 1998:
    Appropriation.......................................  $1,125,943,000
    Supplemental appropriation..........................       2,400,000
      Total.............................................   1,128,343,000
Fiscal year 1999 estimate...............................   1,016,030,000
Committee recommendation in the bill....................     993,084,000
Comparison with:
    Fiscal year 1998 total appropriation................    -135,259,000
    Fiscal year 1999 estimate...........................     -22,946,000

    The Committee recommends a total of $993,084,000 for Family 
Housing, Air Force for fiscal year 1999. This is a decrease of 
$22,946,000 below the budget request for fiscal year 1999, and 
a decrease of $135,259,000 below the total appropriation for 
fiscal year 1998. However, a total of $33,705,000 has been 
funded under the Department of Defense Family Housing 
Improvement Fund.

                              Construction

    The Committee recommends $124,344,000 for new construction, 
instead of $140,499,000 as requested, as shown below. The 
Committee notes that project totalling $33,705,000 are funded 
under the DOD Family Housing Improvement Fund.

----------------------------------------------------------------------------------------------------------------
                       Location/Project                        Number of units     Requested       Recommended  
----------------------------------------------------------------------------------------------------------------
Air Force:                                                                                                      
    Alabama--Maxwell AFB.....................................              143       16,300,000       16,300,000
    Alaska--Eielson AFB......................................               46       12,932,000       12,932,000
    California--Edwards AFB..................................               48       12,580,000       12,580,000
    California--Vandenberg AFB...............................               95       18,499,000       18,499,000
    Delaware--Dover AFB......................................             (55)        8,998,000            \1\ 0
    Florida--MacDill AFB.....................................               48        7,609,000        7,609,000
    Florida--Patrick AFB.....................................             (46)        9,692,000            \1\ 0
    Florida--Tyndall AFB.....................................              122       14,500,000       14,500,000
    Nebraska--Offutt AFB.....................................  ...............          900,000          900,000
    Nebraska--Offutt AFB.....................................  ...............          870,000          870,000
    Nebraska--Offutt AFB.....................................               90       12,212,000       12,212,000
    Nevada--Nellis AFB.......................................               60                0       10,550,000
    New Mexico--Kirtland AFB.................................               37        6,400,000        6,400,000
    Ohio--Wright Patterson AFB...............................             (40)        5,600,000            \1\ 0
    Texas--Dyess AFB.........................................             (64)        9,415,000            \1\ 0
    Texas--Sheppard AFB......................................               65                0        7,000,000
    Washington--Fairchild AFB................................  ...............        1,692,000        1,692,000
    Washington--Fairchild AFB................................               14        2,300,000        2,300,000
                                                              --------------------------------------------------
      Total, Air Force.......................................              768      140,499,000      124,344,000
----------------------------------------------------------------------------------------------------------------
\1\ Project funded under DDD Family Housing Improvement Fund.                                                   

                       operation and maintenance

    The request of $789,995,000 has been reduced by $4,791,000, 
as contained in the House-passed authorization bill. It is the 
Committee's intent that the appropriation of $388,659,000 for 
the maintenance of real property not be reduced.

                      Family Housing, Defense-wide

                                                                        
                                                                        
                                                                        
Fiscal year 1998 appropriation........................       $37,674,000
Fiscal year 1999 estimate.............................        37,244,000
Committee recommendation in the bill..................        37,244,000
Comparison with:                                                        
    Fiscal year 1998 appropriation....................          -430,000
    Fiscal year 1999 estimate.........................                 0
                                                                        

    The Committee recommends a total of $37,244,000 for Family 
Housing, Defense-wide for fiscal year 1999. This is equal to 
the budget request for fiscal year 1999, and a decrease of 
$430,000 below the appropriation for fiscal year 1998.

         Department of Defense Family Housing Improvement Fund

                                                                        
                                                                        
                                                                        
Fiscal year 1998 appropriation........................                $0
Fiscal year 1999 estimate.............................         7,000,000
Committee recommendation in the bill..................       242,438,000
Comparison with:                                                        
    Fiscal year 1998 appropriation....................      +242,438,000
    Fiscal year 1999 estimate.........................      +235,438,000
                                                                        

    The Committee recommends a total of $242,438,000 for the 
Department of Defense Family Housing Improvement Fund for 
fiscal year 1999. This is an increase of $235,438,000 above the 
budget request for fiscal year 1999, and an increase of 
$242,438,000 above the appropriation for fiscal year 1998. Of 
the total appropriation, the Committee recommends a limitation 
of $7,000,000 on total administrative expenses of the Housing 
Revitalization Support Office, as requested. In addition, the 
Committee recommends appropriations of $235,438,000 under the 
Family Housing Improvement Fund rather than the Family Housing, 
Construction accounts as requested for those projects that the 
Department notified the Committee on May 15, 1998 that it 
intends to execute under privatization authorities. The 
projects are as follows:

----------------------------------------------------------------------------------------------------------------
                                                                        New        Construction                 
                 Service, State and Installation                   construction    improvements        Total    
----------------------------------------------------------------------------------------------------------------
Army:                                                                                                           
    North Carolina--Fort Bragg..................................     $19,800,000  ..............  ..............
    Texas--Fort Hood............................................      21,600,000  ..............  ..............
                                                                 -----------------------------------------------
      Subtotal Army.............................................      41,400,000               0      41,400,000
                                                                 ===============================================
Navy:                                                                                                           
    California:                                                                                                 
        Lemoore NAS.............................................      30,379,000       2,089,000  ..............
        Monterey NPGS...........................................  ..............       7,016,000  ..............
        San Diego CNB...........................................  ..............      24,798,000  ..............
        San Diego CNB...........................................  ..............       4,851,000  ..............
    Connecticut--New London NSB.................................  ..............       6,321,000  ..............
    Illinois--Great Lakes CNB...................................  ..............      12,632,000  ..............
    Maryland:                                                                                                   
        Annapolis USNA..........................................  ..............       4,340,000  ..............
        Annapolis USNA..........................................  ..............       4,304,000  ..............
    New Jersey--Earle NWS.......................................  ..............       6,723,000  ..............
    Pennsylvania--Willow Grove NAS..............................  ..............         598,000  ..............
    Texas--Corpus Christi NAS...................................  ..............       7,558,000  ..............
    Virginia--Norfolk PWC.......................................  ..............       8,010,000  ..............
    Washington--Whidbey Island NAS..............................  ..............       9,764,000  ..............
                                                                 -----------------------------------------------
      Subtotal, Navy............................................      30,379,000      99,004,000     129,383,000
                                                                 ===============================================
Marine Corps:                                                                                                   
    North Carolina                                                                                              
        Camp Lejeune MCB........................................  ..............      17,417,000  ..............
        Cherry Point MCAS.......................................  ..............      13,533,000  ..............
                                                                 -----------------------------------------------
      Subtotal, Marine Corps....................................               0      30,950,000      30,950,000
                                                                 ===============================================
      Subtotal, Navy and Marine Corps...........................      30,379,000     129,954,000     160,333,000
                                                                 ===============================================
Air Force:                                                                                                      
    Delaware--Dover AFB.........................................       8,998,000  ..............  ..............
    Florida--Patrick AFB........................................       9,692,000  ..............  ..............
    Ohio--Wright-Patterson AFB..................................       5,600,000  ..............  ..............
    Texas--Dyess AFB............................................       9,415,000  ..............  ..............
                                                                 -----------------------------------------------
      Subtotal, Air Force.......................................      33,705,000               0      33,705,000
                                                                 ===============================================
      Grand Total...............................................     105,484,000     129,954,000     235,438,000
----------------------------------------------------------------------------------------------------------------

                                overview

    The National Defense Authorization Act for Fiscal Year 1996 
(P.L. 104-106) addressed the family housing crisis by 
authorizing a five year private sector pilot project to replace 
or renovate approximately 200,000 units of family housing 
within the United States, its territories and possessions, and 
in Puerto Rico, but not overseas. Authority was granted to: 
guarantee mortgage payments and rental contracts to developers 
as incentives to build family housing; authorize commercial-
style lease agreements for family housing; and engage in joint 
ventures with developers to construct family housing on 
government property.
    The Family Housing Improvement Fund is used to build or 
renovate family housing, mixing or matching various authorities 
in the authorization, and utilizing private capital and 
expertise to the maximum extent possible. The Fund is to 
contain appropriated and transferred funds from family housing 
construction accounts, and the total value in budget authority 
of all contracts and investments undertaken may not exceed 
$850,000,000. Proceeds from investments, leases, and 
conveyances are to be deposited into this Fund, and any use of 
the Fund is subject to annual appropriations. The Family 
Housing Improvement Fund is to be administered as a single 
account without fiscal year limitations. This authority to 
enter into contracts and partnerships and to make investments 
shall expire on September 30, 2000.

                          administrative costs

    The Committee continues its intent that the sole source of 
funds available for planning, administrative, and oversight 
costs relating to military family housing privatization 
initiatives be provided from the appropriations contained in 
this account. Administrative costs have been limited to 
$7,000,000 for fiscal year 1999.

                         reporting requirements

    Budget justification documents are to continue to display 
project and administrative costs. In addition, projects slated 
for Public-Private Ventures are to be requested under the 
Family Housing Improvement Fund instead of the Family Housing, 
Construction accounts.
    The Committee notes Section 124 of the General Provisions 
of this bill which requires the Secretary of Defense to notify 
Congressional Committees sixty days prior to issuing a 
solicitation for a contract with the private sector for 
military family housing.
    The Service Secretary concerned may not enter into any 
contract until after the end of the 21-day period beginning on 
the date the Secretary concerned submits written notice of the 
nature and terms of the contract to the appropriate committees 
of Congress.
    To clarify existing reporting requirements, this 21-day 
notification requirement applies to any project, regardless of 
whether it is financed entirely by transfer of funds into the 
Family Housing Improvement Fund, or it is fully financed within 
funds available in the Family Housing Improvement Fund, or it 
is funded by combining transferred funds with funds available 
in the Family Housing Improvement Fund.
    In addition, no transfer of appropriated funds into the 
account may take place until after the end of the 30-day period 
beginning on the date the Secretary of Defense submits written 
notice and justification for the transfer to the appropriate 
committees of Congress. The Appropriations Committee expects to 
receive prior notification of all such transfers of funds.

                  Homeowners Assistance Fund, Defense

                                                                        
                                                                        
                                                                        
Fiscal year 1998 appropriation........................                $0
Fiscal year 1999 estimate.............................        12,800,000
Committee recommendation in the bill..................         7,500,000
Comparison with:                                                        
    Fiscal year 1998 appropriation....................        +7,500,000
    Fiscal year 1999 estimate.........................        -5,300,000
                                                                        

    The Committee recommends $7,500,000 for the Homeowners 
Assistance Fund. This is a decrease of $5,300,000 below the 
budget request for fiscal year 1999, and an increase of 
$7,500,000 above the appropriation for fiscal year 1998. 
Requirements for fiscal year 1998 were financed by revenue and 
prior year carryover.
    The Homeowners Assistance Fund is a non-expiring revolving 
fund which finances a program for providing assistance to 
homeowners by reducing their losses incident to the disposal of 
their homes when military installations at or near where they 
are serving or employed are ordered to be closed or the scope 
of operations is reduced. The Fund was established in 
recognition of the fact that base closure and reduction actions 
can have serious economic effects on local communities. The 
Fund receives funding from several sources: appropriations, 
borrowing authority, reimbursable authority, prior fiscal year 
unobligated balances, revenue from sale of acquired properties, 
and recovery of prior year obligations.
    The total estimated requirements for fiscal year 1999 are 
estimated at $109,735,000 and will be funded with 
appropriations, revenue from sales of acquired property and 
prior year unobligated balances. The Committee has reduced the 
budget request by $5,300,000 based on estimated unobligated 
balances at the end of fiscal year 1999.

                      Base Realignment and Closure

                                overview

    The Congress has appropriated, to date, a net total of 
$17,807,526,000 for the Base Realignment and Closure program 
for fiscal years 1990 through 1998. In the bill for fiscal year 
1999, the Committee is recommending total funding of 
$1,730,704,000 under two accounts, as requested. These funds 
are necessary to ensure closure schedules can be met and 
anticipated savings will be realized. In addition, funding is 
essential for accelerated cleanup which is necessary for reuse 
of surplus properties and future job creation.
    The Committee, in appropriating such funds, has provided 
the Department with the flexibility to allocate funds by 
Service, by function and by base. The Committee, in recognizing 
the complexities of realigning and closing bases and providing 
for environmental restoration, has provided such flexibility to 
allow the Office of the Secretary of Defense to monitor the 
program execution of the Services and to redistribute 
unobligated balances as appropriate to avoid delays and to 
effect timely execution of realignment and closures along with 
environmental restoration.
    The following table displays the total amount appropriated 
for each round of base closure including amounts recommended 
for fiscal year 1999:

                                          BASE REALIGNMENT AND CLOSURE                                          
                           [Total funding, fiscal year 1990 through fiscal year 1999]                           
----------------------------------------------------------------------------------------------------------------
                                       Fiscal year 1990                                                         
                                        through fiscal    Fiscal year 1998   Fiscal year 1999        Total      
                                          year 1997          enacted\3\        recommended                      
----------------------------------------------------------------------------------------------------------------
Part I..............................     $2,672,830,000                 NA                 NA     $2,672,830,000
Part II \1\.........................      5,157,562,000       $116,754,000                 NA      5,274,316,000
Part III \2\........................      5,971,933,000        768,702,000       $433,464,000      7,174,099,000
Part IV.............................      1,944,347,000      1,175,398,000      1,297,240,000      4,416,985,000
                                     ---------------------------------------------------------------------------
      Total.........................     15,746,672,000      2,060,854,000      1,730,704,000    19,538,230,000 
----------------------------------------------------------------------------------------------------------------
\1\ Includes transfer of $133,000,000 from ``Homeowners Assistance Fund, Defense.''                             
\2\ Includes: Rescission of $507,692,000 (P.L. 103-211); rescission of $32,000,000 (P.L. 104-6).                
\3\ Includes rescissions enacted in Public Law 105-18, as follows: Part II--$35,391,000; Part III--$75,638,000; 
  and Part IV--$22,971,000.                                                                                     

                       environmental restoration

    Since the start of the current process for Base Realignment 
and Closure, Military Construction Appropriations Acts have 
appropriated a net total of $17,807,526,000 for the entire 
program for fiscal years 1990 through 1998. Within this total, 
the Department has allocated $4,984,400,000 for activities 
associated with environmental restoration.
    The Committee is concerned that the design and cost of 
environmental restoration efforts should be tailored to match 
the proposed re-use of an installation in order to assure that 
costs are reasonable and affordable. Therefore, the Committee 
continues to recommend statutory language to establish a 
ceiling on the level of funding for environmental restoration, 
unless the Secretary of Defense determines additional 
obligations are necessary and notifies the Committees on 
Appropriations of his determination and the necessary reasons 
for the increase.
    The following table displays the statutory ceiling 
established by the Committee and is equal to the Department's 
execution plan for fiscal year 1999.

------------------------------------------------------------------------
                                                            Ceiling on  
                                                          environmental 
                Account                  Total program     restoration  
                                                              costs     
------------------------------------------------------------------------
BRAC III..............................     $433,464,000     $271,800,000
BRAC IV...............................    1,297,240,000      426,036,000
                                       ---------------------------------
      Total...........................    1,730,704,000      697,836,000
------------------------------------------------------------------------

    The Committee directs the Department of Defense to devote 
the maximum amount of resources to actual cleanup and, to the 
greatest extent possible, to limit resources expended on 
administration, support, studies, and investigations.

                    california--army base, rio visa

    The Committee is aware of two major problems at the Army 
Base in Rio Visa, California, slated for closure by the 1995 
Base Realignment and Closure Commission, that present a serious 
threat to human safety. These include severely deteriorated 
buildings which have exposed asbestos panels and present lead 
paint dangers and hazardous motor oil and underground storage 
tank wastes that necessitate environmental cleanup. The 
Committee expects the Department of the Army to demolish the 
unsafe buildings and complete the environmental cleanup within 
existing appropriations in an expedited fashion to ensure 
conveyance of the base. The Army is directed to report to the 
Committee by July 15, 1998 on this matter.

                   california--norton air force base

    The Committee is concerned that thirty-one buildings, 
covering 52.9 acres, of the former Norton AFB were built 
between 1940 and 1945 and contain great quantities of asbestos 
and lead based paint which present a threat to human safety. 
The Committee expects the Air Force to use remaining BRAC I 
funds to safely demolish these contaminated structures labeled 
A through H. The Air Force is directed to report to the 
Committee by July 15, 1998 on this matter.

                 california--presidio of san francisco

    The Committee directs the Secretary of the Army to report 
by January 15, 1999 on the current status of environmental 
remediation activities at the Presidio of San Francisco, 
including the estimated dates for completion of such 
activities.

                      california--treasure island

    The Committee directs the Secretary of the Navy to report 
by January 15, 1999 on the planned disposition of ramps, access 
roads, and rights of way from the San Francisco Bay Bridge to 
the Treasure Island Naval Station, including an evaluation of 
the need for seismic upgrades and the possible transfer of such 
property to the State of California.

     florida--naval research laboratory underwater sound reference 
                               detachment

    The Committee is aware that the Sound Lab is a unique 
situation in that it is surrounded for a significant distance 
on all sides by residential development. Serious concern exists 
for the safety of children in the area since the community will 
have very easy access to Lake Gem Mary after the Navy departs 
the area. The Committee expects the Navy to demolish the two 
large metal docks that extend into the center of the lake with 
remaining BRAC I funds to ensure a tragedy will not occur at 
the Lake. The Navy is directed to report to the Committee by 
July 15, 1998 on this matter.

 Kentucky--Louisville Naval Ordnance Station: Environmental Restoration

    The Secretary of the Navy is directed to report to the 
Committee by January 15, 1999 on the current status of ongoing 
efforts at the Louisville Naval Ordnance Station, with emphasis 
on the following activities:
    Contaminated floor removal/replacement;
    Environmental sampling;
    Electrical distribution system maintenance;
    Removal and disposal of contaminated materials and debris;
    Completion of Navy operational closure requirements; and
    Groundwater remediation (ensuring that ongoing operations 
            at the facility are unimpeded by the appropriate 
            remediation of metals contaminated groundwater).
    This report is to include the estimated dates for 
completion of all remediation activities.

               Future Costs of Environmental Restoration

    Since the first appropriations were enacted for the Base 
Realignment and Closure Program in fiscal year 1990, the 
Committee has been concerned that the full cost of this effort 
should be clearly defined and displayed. In hearings before the 
Committee this year, the Department has testified that, upon 
completion of the Base Realignment and Closure Program, it 
intends to program and budget for all further costs of 
environmental restoration at base realignment and closure sites 
in the Operations and Maintenance accounts. The Committee 
strongly objects to this approach, based on the Department's 
estimate that such requirements will total $686,900,000 in 
fiscal year 2001 and approximately $500,000,000 annually 
thereafter until completion.
    In order to continue the consolidation of all expenses 
related to base realignment and closure, the Department is 
directed to submit a legislative proposal for the establishment 
of a Treasury account entitled ``Base Realignment and Closure 
Environmental Restoration''. Further, the Department is 
directed to program and budget for environmental restoration 
efforts related to the four rounds of Base Realignment and 
Closure performed from 1988 through 1995 under such account for 
all such expenses.

                         construction projects

    The Department of Defense has requested a total of 
$232,719,000 within the fiscal year 1999 budget request for 
base realignment and closure for construction projects funded 
under the Base Realignment and Closure Accounts, Parts III and 
IV. The Committee recommends full funding for these important 
projects. The Committee provides approval and appropriated 
funds for the following construction projects as contained in 
Executive Summary of Justification Data submitted to Congress 
February, 1998, as subsequently revised and as modified by 
reprogramming actions requested through May 26, 1998:

------------------------------------------------------------------------
                                                      BRAC      Amount  
        Component/State/Project description          round   (thousands)
------------------------------------------------------------------------
Navy BRAC III Construction, Fiscal Year 1999:                           
    Nevada:                                                             
        Naval Air Station, Fallon:                                      
            Bachelor Officer Quarters Phase II (P-                      
             XX1T)................................      III       11,100
                                                            ------------
              Subtotal Navy BRAC III Nevada.......  .......       11,100
                                                            ============
              Total for Navy BRAC III                                   
               Construction, Fiscal Year 1999.....  .......       11,100
                                                            ============
Army BRAC IV Construction, Fiscal Year 1999:                            
    Alaska:                                                             
        Fort Greely:                                                    
            Munitions Storage Facility (PN 47461).       IV        1,550
                                                            ------------
              Subtotal Army Alaska................  .......        1,550
                                                            ============
    Colorado:                                                           
        Fitzsimons Army Medical Center:                                 
            Warehouse Addition (PN 47653).........       IV        1,550
            Reserve Center (PN 50296).............       IV        2,750
                                                            ------------
              Subtotal Army Colorado..............  .......        4,300
                                                            ============
    Indiana:                                                            
        Crane Army Ammunition Activity:                                 
            Surveillance Test Facility (PN 50057).       IV        1,850
                                                            ------------
              Subtotal Army Indiana...............  .......        1,850
                                                            ============
    Maryland:                                                           
        Fort Detrick:                                                   
            Physical Fitness Center (PN 48153)....       IV        3,050
        Fort Meade:                                                     
            Administrative Facility (PN 46307)....       IV       12,000
            Administrative Facility Renovation (PN                      
             47770)...............................       IV        2,900
            Administrative Facility (PN 47237)....       IV        6,300
                                                            ------------
              Subtotal Army Maryland..............  .......       24,250
                                                            ============
    New York:                                                           
        Fort Totten:                                                    
            Storage Facility (PN 46258)...........       IV        1,900
                                                            ------------
              Subtotal Army New York..............  .......        1,900
                                                            ============
    Pennsylvania:                                                       
        Letterkenny Army Depot:                                         
            Enclave Fencing (PN 49714)............       IV        1,150
                                                            ------------
              Subtotal Army Pennsylvania..........  .......        1,150
                                                            ============
    Virginia:                                                           
        Fort Pickett:                                                   
            Reserve Center (PN 46354).............       IV        3,100
        Fort Lee:                                                       
            WAC Museum (PN 50091).................       IV        2,400
                                                            ------------
              Subtotal Army Virginia..............  .......        5,500
                                                            ============
    Various Locations:                                                  
        Program Management........................       IV        2,350
                                                            ------------
          Subtotal Army Various...................  .......        2,350
                                                            ============
          Total for Army BRAC IV Construction,                          
           Fiscal Year 1999.......................  .......       42,850
                                                            ============
Army BRAC IV Family Housing Construction, FY 1999:                      
    Alaska:                                                             
        Fort Wainwright:                                                
            Family Housing (4 units) (PN 47530)...       IV        1,700
                                                            ------------
              Total Army BRAC IV Family Housing                         
               Construction, Fiscal Year 1999.....  .......        1,700
                                                            ============
Navy BRAC IV Construction, Fiscal Year 1999:                            
    California:                                                         
        Naval Air Weapons Station, Point Mugu:                          
            Aviation Support Facilities (260U)....       IV        1,500
            Maintenance and Training Facilities...       IV       12,800
                                                            ------------
              Subtotal Navy California............  .......       14,300
                                                            ============
    District of Columbia:                                               
        Naval District of Washington:                                   
            NAVSEASYSCOM Headquarters Building                          
             Relocation (009U)....................       IV       71,543
                                                            ------------
              Subtotal Navy District of Columbia..  .......       71,543
                                                            ============
    Hawaii:                                                             
        Naval Telecommunications Center, Makalapa:                      
            Building Addition (935U)..............       IV          920
                                                            ------------
              Subtotal Navy Hawaii................  .......          920
                                                            ============
    Massachusetts:                                                      
        Naval Security Group Activity, Boston:                          
            Defense Courier Service Building                            
             (935U)...............................       IV          850
                                                            ------------
              Subtotal Navy Massachusetts.........  .......          850
                                                            ============
    Tennessee:                                                          
        Naval Support Activity, Memphis:                                
            Building Renovation (329U)............       IV        4,200
                                                            ------------
              Subtotal Navy Tennessee.............    4,200        4,200
                                                            ============
    Texas:                                                              
        Naval Air Station, Corpus Christi:                              
            Sled Ramp Facility and Land                                 
             Acquisition (421U)...................       IV       13,313
                                                            ------------
              Subtotal Navy Texas.................  .......       13,313
                                                            ============
    Virginia:                                                           
        Naval Station, Norfolk:                                         
            Building Renovations and Alterations                        
             (317U)...............................       IV        3,970
        Naval Air Station, Oceana:                                      
            Strike Fighter Weapons School                               
             Additions (163U).....................       IV        4,073
                                                            ------------
              Subtotal Navy Virginia..............  .......        8,043
                                                            ============
              Total for Navy BRAC IV Construction,                      
               Fiscal Year 1999...................  .......      113,169
                                                            ============
Air Force BRAC IV Construction, Fiscal Year 1999:                       
    New York:                                                           
        Stewart International Airport, Newburgh:                        
            Communications Training Complex (WHAY                       
             95963)...............................       IV        6,000
                                                            ------------
              Subtotal Air Force New York.........  .......        6,000
                                                            ============
    Oklahoma:                                                           
        Tinker AFB:                                                     
            Alter Product Management (WWYK990032).       IV        2,300
            Alter Engine Test Cell (WWYK993200)...       IV        3,800
            Add/Alter Fuel Air Facility                                 
             (WWYK993201A)........................       IV        1,300
                                                            ------------
              Subtotal Air Force Oklahoma.........  .......        7,400
                                                            ============
    Texas:                                                              
        Kelly AFB:                                                      
            Security Fence/Gates (MBPB993205R1)...       IV          400
            Vehicle OPS/Maintenance Complex                             
             (MBPB993213R1).......................       IV        6,200
            Fuel Operations Facility                                    
             (MBPB993214R1).......................       IV        1,200
            Reconfigure Utility Systems                                 
             (MBPB993230).........................       IV        2,500
                                                            ------------
              Subtotal Air Force Texas............  .......       10,300
                                                            ============
    Utah:                                                               
        Hill AFB:                                                       
            Gas Turbine Engine Test Cells                               
             (KRSM993009).........................       IV        2,100
            Alter Produce Management/Composites                         
             Beddown (KRSM983102).................       IV        5,300
            F-117 Radar Facility (KRSM983002).....       IV        1,100
                                                            ------------
              Subtotal Air Force Utah.............  .......        8,500
                                                            ============
    Various Locations:                                                  
        Planning and Design (BCL99RD4)............       IV          700
                                                            ============
          Total Air Force BRAC IV Construction, FY                      
           1999...................................  .......       32,900
                                                            ============
Defense Logistics Agency BRAC IV Construction, FY                       
 1999:                                                                  
    Utah:                                                               
        Defense Distribution Depot, Hill AFB,                           
         Utah:                                                          
            General Purpose Warehouse.............       IV       31,000
                                                            ------------
              Subtotal Defense Logistics Agency                         
               Utah...............................  .......       31,000
                                                            ============
              Total DLA BRAC IV Construction, FY                        
               1999...............................  .......      $31,000
------------------------------------------------------------------------

                       Administrative Provisions

    The Department of Defense is required to notify the 
appropriate Committees of Congress 21 days prior to the 
initiation of any new project which has not been included in 
the Department's budget request for the current (or any 
previous) fiscal year. If the Department wishes to finance a 
previously approved prior year project in the current fiscal 
year, no notification is required.

                  Base Realignment and Closure, Part I

    The Committee notes that fiscal year 1995 was the last year 
for appropriations into this account.

                 Base Realignment and Closure, Part II

    The Committee notes that fiscal year 1998 was the last year 
for appropriations into this account.

                 Base Realignment and Closure, Part III

Fiscal year 1998:
    Appropriation.......................................    $768,702,000
    Supplemental appropriation..........................       1,020,000
      Total.............................................     769,722,000
Fiscal year 1999 estimate...............................     433,464,000
Committee recommendation in the bill....................     433,464,000
Comparison with:
    Fiscal year 1998 total appropriation................    -336,258,000
    Fiscal year 1999 estimate...........................               0

    The Committee recommends a total of $433,464,000 for Base 
Realignment and Closure, Part III for fiscal year 1999. This is 
equal to the budget request for fiscal year 1999 and a decrease 
of $336,258,000 below the total amount appropriated for fiscal 
year 1998. Below is the recommended distribution of funds:

                                                                        
                       Activity                              Amount     
                                                                        
Military Construction.................................       $11,100,000
Family Housing........................................                 0
Environmental.........................................       271,800,000
Operations and Maintenance............................       140,778,000
Military Personnel (PCS)..............................         9,734,000
Other.................................................            52,000
Revenues..............................................                 0
                                                       -----------------
      Total...........................................      $433,464,000
                                                                        

                 Base Realignment and Closure, Part IV

Fiscal year 1998:
    Appropriation.......................................  $1,175,398,000
Fiscal year 1999 estimate...............................   1,297,240,000
Committee recommendation in the bill....................   1,297,240,000
Comparison with:
    Fiscal year 1998 appropriation......................    +121,842,000
    Fiscal year 1999 estimate...........................               0

    The Committee recommends a total of $1,297,240,000 for Base 
Realignment and Closure, Part IV for fiscal year 1999. This is 
equal to the budget request for fiscal year 1999 and an 
increase of $121,842,000 above the amount appropriated for 
fiscal year 1998. Below is the recommended distribution of 
funds:

                                                                        
                       Activity                              Amount     
                                                                        
Military Construction.................................      $219,919,000
Family Housing........................................         1,700,000
Environmental.........................................       426,036,000
Operations and Maintenance............................       627,344,000
Military Personnel (PCS)..............................        12,598,000
Other.................................................         9,643,000
Revenues..............................................                 0
                                                       -----------------
      Total...........................................    $1,297,240,000
                                                                        

                 Changes in Application of Existing Law

    Pursuant to clause 3 of rule XXI of the House of 
Representatives, the following statements are submitted 
describing the effect of provisions in the accompanying bill 
which directly or indirectly change the application of existing 
law.
    Language is included in various parts of the bill to 
continue on-going activities which require annual authorization 
or additional legislation, which to date has not been enacted.
    The bill includes a number of provisions which place 
limitations on the use of funds in the bill or change existing 
limitations and which might, under some circumstances, be 
construed as changing the application of existing law.
    The bill provides that appropriations shall remain 
available for more than one year for some programs for which 
the basic authority legislation does not presently authorize 
such extended availability.
    A provision of the ``Military Construction, Defense-wide'' 
account which permits the Secretary of Defense to transfer 
funds to other accounts for military construction or family 
housing.
    A provision of the ``Base Realignment and Closure Account, 
Part III'' states that not more than $271,800,000 of the funds 
appropriated shall be available solely for environmental 
restoration.
    A provision of the ``Base Realignment and Closure Account, 
Part IV'' states that not more than $426,036,000 of the funds 
appropriated shall be available solely for environmental 
restoration.
    Section 101 of the General Provisions states that none of 
the funds appropriated in Military Construction Appropriations 
Acts shall be expended for payments under a cost-plus-a-fixed-
fee contract for construction, where cost estimates exceed 
$25,000, to be performed within the United States, except 
Alaska, without the specific approval in writing of the 
Secretary of Defense.
    Section 102 of the General Provisions permits use of funds 
for hire of passenger motor vehicles.
    Section 103 of the General Provisions permits use of funds 
for Defense Access Roads.
    Section 104 of the General Provisions prohibits 
construction of new bases inside the continental United States 
for which specific appropriations have not been made.
    Section 105 of the General Provisions limits the use of 
funds for purchase of land or land easements.
    Section 106 of the General Provisions prohibits the use of 
funds to acquire land, prepare a site, or install utilities for 
any family housing except housing for which funds have been 
made available.
    Section 107 of the General Provisions limits the use of 
minor construction funds to transfer or relocate activities 
among installations.
    Section 108 of the General Provisions prohibits the 
procurement of steel unless American producers, fabricators, 
and manufacturers have been allowed to compete.
    Section 109 of the General Provisions prohibits payment of 
real property taxes in foreign nations.
    Section 110 of the General Provisions prohibits 
construction of new bases overseas without prior notification.
    Section 111 of the General Provisions establishes a 
threshold for American preference of $500,000 relating to 
architect and engineer services in Japan, in any NATO member 
country, and in the Arabian Gulf.
    Section 112 of the General Provisions establishes 
preference for American contractors for military construction 
in the United States territories and possessions in the Pacific 
and on Kwajalein Atoll, or in the Arabian Gulf, except bids by 
Marshallese contractors for military construction on Kwajalein 
Atoll.
    Section 113 of the General Provisions requires the 
Secretary of Defense to give prior notice to Congress of 
military exercises involving construction in excess of 
$100,000.
    Section 114 of the General Provisions limits obligations 
during the last two months of the fiscal year.
    Section 115 of the General Provisions permits funds 
appropriated in prior years to be available for construction 
authorized during the current session of Congress.
    Section 116 of the General Provisions permits the use of 
expired or lapsed funds to pay the cost of supervision for any 
project being completed with lapsed funds.
    Section 117 of the General Provisions permits obligation of 
funds from more than one fiscal year to execute a construction 
project, provided that the total obligation for such project is 
consistent with the total amount appropriated for the project.
    Section 118 of the General Provisions allows expired funds 
to be transferred to the ``Foreign Currency Fluctuations, 
Construction, Defense'' account.
    Section 119 of the General Provisions directs the Secretary 
of Defense to report annually regarding the specific actions to 
be taken during the current fiscal year to encourage other 
member nations of the North Atlantic Treaty Organization, 
Japan, Korea, and United States allies in the Arabian Gulf to 
assume a greater share of the common defense burden.
    Section 120 of the General Provisions allows transfer of 
proceeds from ``Base Realignment and Closure Account, Part I'' 
to the continuing Base Realignment and Closure accounts.
    Section 121 of the General Provisions prohibits expenditure 
of funds except in compliance with the Buy American Act.
    Section 122 of the General Provisions states the Sense of 
the Congress notifying recipients of equipment or products 
authorized to be purchased with financial assistance provided 
in this Act to purchase American-made equipment and products.
    Section 123 of the General Provisions permits the transfer 
of funds from Family Housing, Construction accounts to the DOD 
Family Housing Improvement Fund.
    Section 124 of the General Provisions requires the 
Secretary of Defense to notify Congressional Committees sixty 
days prior to issuing a solicitation for a contract with the 
private sector for military family housing or military 
unaccompanied housing.
    Section 125 of the General Provisions appropriates 
$6,000,000 in previously authorized proceeds from the sale of 
land and family housing units at Paine Field, Washington.
    Section 126 of the General Provisions states the sense of 
Congress regarding the naming of a road at Fort Bragg, North 
Carolina.
    The Committee recommends deleting the following General 
Provisions which were included in the fiscal year 1998 Military 
Construction Appropriations Act (Public Law 105-45), because 
these provisions are no longer required [section numbers refer 
to sections contained in Public Law 105-45]:
    Section 124 stating that the sole source of planning, 
administrative, and oversight costs incurred by the Housing 
Revitalization Support Office must come from the DOD Family 
Housing Improvement Fund. This provision is no longer required 
because it is now contained in the appropriations paragraph for 
the ``Department of Defense Family Housing Improvement Fund'' 
account.
    Section 125 reducing the appropriation of various accounts 
in the bill.
    Section 126 regarding a Special Forces Training Facility at 
Key West Naval Air Station, Florida.
    Section 127 regarding the lease of property on Waipio 
Peninsula, Honolulu, Hawaii.

                  Compliance With Rule XIII--Clause 3

    In compliance with clause 3 of rule XIII of the House of 
Representatives, the Committee reports that it recommends no 
changes in existing law made by the bill, as reported.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3 of rule XXI of the House of 
Representatives, the following table lists the appropriations 
in the accompanying bill which are not authorized by law:

  Military Construction, Army
  Military Construction, Navy
  Military Construction, Air Force
  Military Construction, Defense-wide
  Military Construction, Army National Guard
  Military Construction, Air National Guard
  Military Construction, Army Reserve
  Military Construction, Naval Reserve
  Military Construction, Air Force Reserve
  North Atlantic Treaty Organization Security
  Investment Program
  Family Housing, Construction, Army
  Family Housing, Operation and Maintenance, Army
  Family Housing, Construction, Navy and Marine Corps
  Family Housing, Operation and Maintenance, Navy and Marine 
        Corps
  Family Housing, Construction, Air Force
  Family Housing, Operation and Maintenance, Air Force
  Family Housing, Construction, Defense-wide
  Family Housing, Operation and Maintenance, Defense-wide
  Department of Defense Family Housing Improvement Fund
  Base Realignment and Closure Account, Part III
  Base Realignment and Closure Account, Part IV

    The Committee notes that authorization for appropriations 
in this bill is contained in H.R. 3616, which passed the House 
on May 21, 1998. It is anticipated the authorization will be 
enacted into law later this year.

                           Transfer of Funds

    Pursuant to clause 1(b) of rule X of the House of 
Representatives, a statement is required describing the 
transfer of funds provided in the accompanying bill. Sections 
115, 118, 120, and 123 of the General Provisions, and language 
included under ``Military Construction, Defense-wide'' provide 
certain transfer authority.

                          Rescission of Funds

    In compliance with clause 1(b) of rule X of the House of 
Representatives, the Committee reports that it recommends no 
rescissions in the bill, as reported.

                        Constitutional Authority

    Clause 2(l)(4) of rule XI of the Rules of the House of 
Representatives states that:

          Each report of a committee on a bill or joint 
        resolution of a public character, shall include a 
        statement citing the specific powers granted to the 
        Congress in the Constitution to enact the law proposed 
        by the bill or joint resolution.

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America which 
states:

          No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * *

    Appropriations contained in this bill are made pursuant to 
this specific power granted by the Constitution

                   Comparisons With Budget Resolution

    Section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, requires that the report accompanying a bill providing 
new budget authority contain a statement detailing how that 
authority compares with the reports submitted under section 
302(b) of the Act for the most recently agreed to concurrent 
resolution on the budget for the fiscal year. This information 
follows:

                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                302(b) Allocation                         This bill             
                                     ---------------------------------------------------------------------------
                                       Budget authority       Outlays        Budget authority       Outlays     
----------------------------------------------------------------------------------------------------------------
Discretionary.......................             $8,235             $9,100             $8,234             $8,963
Mandatory...........................                  0                  0                  0                  0
----------------------------------------------------------------------------------------------------------------

                       Advance Spending Authority

    This bill provides no advance spending authority.

                    Five-Year Projection of Outlays

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following information was 
provided to the Committee by the Congressional Budget Office.

                        [In thousands of dollars]                       
                                                                        
                                                                        
                                                                        
Budget authority, fiscal year 1999....................        $8,234,000
Outlays:                                                                
    1999..............................................         2,615,000
    2000..............................................         2,739,000
    2001..............................................         1,557,000
    2002..............................................           787,000
    2003 and beyond...................................           395,000
                                                                        

    The bill will not affect the levels of revenues, tax 
expenditures, direct loan obligations, or primary loan 
guarantee commitments under existing law.

          Financial Assistance to State and Local Governments

    In accordance with section 308(a)(1)(C) of Public Law 93-
344, the new budget authority and outlays provided by the 
accompanying bill for financial assistance to State and local 
governments are as follows:

                        [In millions of dollars]                        
                                                                        
                                                                        
                                                                        
New budget authority..................................                 0
Fiscal year 1998 outlays resulting therefrom..........                 0
                                                                        

                               State List

    The following is a complete listing, by State and country, 
of the Committee's recommendations for military construction 
and family housing projects:






                                
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