[House Report 107-533]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-533

======================================================================



 
            MILITARY CONSTRUCTION APPROPRIATIONS BILL, 2003

                                _______
                                

 June 25, 2002.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 5011]

    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, 2003.

                                CONTENTS

                                                                   Page
Purpose of the Bill..............................................     2
Conformance With Authorization Bill..............................     2
Summary of Committee Recommendation..............................     2
Items of Special Interest........................................     5
Defense Emergency Response Fund..................................     6
Barracks Privatization...........................................     6
Accrual Funding of Retirement Costs and Post-Retirement Health 
  Benefits.......................................................     7
Sustainment, Restoration and Modernization.......................     8
Construction Costs...............................................     8
Geothermal Heat Pump Technology..................................     8
Fiscal Year 2003 Barracks Request................................     9
Child Development Centers........................................    10
Hospital and Medical Facilities..................................    11
Military Construction:
    Army.........................................................    11
    Navy.........................................................    12
    Air Force....................................................    13
    Defense-wide.................................................    14
    Army National Guard..........................................    15
    Air National Guard...........................................    16
    Army Reserve.................................................    17
    Naval Reserve................................................    17
    Air Force Reserve............................................    18
NATO Security Investment Program.................................    18
Family Housing Overview..........................................    19
Family Housing:
    Army.........................................................    20
    Navy.........................................................    21
    Air Force....................................................    22
    Defense-wide.................................................    22
Department of Defense Family Housing Improvement Fund............    23
Homeowners Assistance Fund, Defense..............................    23
Base Realignment and Closure.....................................    23
General Provisions...............................................    24
Changes in Application of Existing Law...........................    27
Definition of Program, Project and Activity......................    27
Appropriations Not Authorized by Law.............................    28
Transfer of Funds................................................    28
Rescission of Funds..............................................    28
Constitutional Authority.........................................    29
Comparisons With Budget Resolution...............................    29
Five-Year Projection of Outlays..................................    29
Financial Assistance to State and Local Governments..............    30
Statement of General Performance Goals and Objectives............    30
Full Committee Votes.............................................    30
State List.......................................................    30
Comparative Statement of New Budget Authority....................    57

                          Purpose of the Bill

    The Military Construction Appropriations bill provides 
funding for planning, design, construction, alteration, and 
improvement of facilities, including family housing, located on 
reserve and active duty military installations around the 
world. Additionally, the bill provides funds for the U.S. share 
of the NATO Security Investment Program (NSIP). Finally, the 
bill provides funds to execute projects required under the base 
realignment and closure (BRAC) authorities.

                  Conformance With Authorization Bill

    On May 9, 2002, the House passed the National Defense 
Authorization Act for 2003 (H.R. 4546) by a vote of 359 to 58. 
At this time, conference action on the legislation has not 
occurred; therefore, projects in this bill are approved subject 
to authorization.

                  Summary of Committee Recommendation

    The Committee recommends $10,083,000,000 in new budget 
(obligational) authority for the Department of Defense, 
Military Construction Appropriations bill. This recommendation 
is $541,424,000 above the President's request and $521,400,000 
below the fiscal year 2002 appropriation. The following table 
compares the amounts proposed in the bill to amounts 
appropriated in fiscal year 2002.


                       Items of Special Interest

    The fiscal year 2003 request for military construction is 
$8,947,192,000, which is $1,657,208,000, or 15 percent, below 
the fiscal year 2002 enacted level of $10,604,400,000. However, 
included as part of the Defense Emergency Response Fund (DERF) 
request in the Defense Appropriations Bill is $594,384,000 of 
military construction projects. To evaluate these projects 
properly, they have been transferred from the Defense 
Appropriation request to the Military Construction request. 
Thus, the combined Military Construction request is 
$9,541,576,000, or $1,062,824,000 below last year's enacted 
level.
    Consider the following effects of the reduction:
           Operational and training facilities are 
        reduced $580 million, or 37 percent;
           Maintenance and production facilities are 
        cut $635 million, or 59 percent;
           Community facilities are reduced by $196 
        million, or 51 percent; and,
           Research and development facilities are 
        reduced by $151 million, or 82 percent.
    Cuts below the baseline are recommended despite a 
Department of Defense (DOD) report that rates 68 percent of the 
Department's facility categories as C-3, which means the 
facilities have serious deficiencies that might impede mission 
readiness, or C-4, which means the facilities cannot support 
mission requirements. Moreover, as a direct result of the cuts, 
the recapitalization rate--which is the rate at which buildings 
are renovated or replaced--increases from 83 years to 150 
years.
    Little justification for the cut is provided other than 
tough choices are necessary with a tight military budget. Yet 
the President's request increases defense spending by $48 
billion. It strains credulity that additional military 
construction spending could not be found with an increase of 
this magnitude. The unavoidable conclusion is that the 
Administration's rhetoric regarding the importance of quality 
of life for troops and their families does not coincide with 
the facts.
    There are bright spots in the budget. Dormitories continue 
to be constructed at a rapid pace. Overseas construction 
funding is increased. Privatization of the housing inventory is 
moving forward aggressively.
    The Committee is pleased with the results of the re-
negotiation of the Korean Special Measures Agreement (SMA), 
which increases the level of host nation funding committed by 
the Republic of Korea (ROK). Likewise, the Committee commends 
DOD for requesting adequate funds for the NATO Security 
Investment Program (NSIP). The amount requested should keep the 
United States from temporarily blocking projects due to 
shortfalls in U.S. obligation authority.
    Nevertheless, the Committee is frustrated that the 
Administration did not maintain current spending levels 
especially when there are many legitimate facility needs. As 
this Committee asserts year after year, it is imperative to 
address the long-term infrastructure problems of military 
installations. Poor facility conditions are not only unsafe--
they hamper readiness and decrease troop retention.

                    Defense Emergency Response Fund

    The President's fiscal year 2003 budget request includes 
$20,055,000,000 for the Defense Emergency Response Fund (DERF) 
account to support DOD's efforts to respond to and protect 
against terrorist acts on the United States. Of the amount, 
$594,384,000 is to address anti-terrorism/force protection 
vulnerabilities at installations worldwide. Though requested in 
the fiscal year 2003 Defense Appropriations legislation, these 
projects fall under the jurisdiction of the Military 
Construction Appropriations Subcommittee. To reflect properly 
these requirements in the fiscal year 2003 budget, the 
Committee has subtracted the request from the Defense 
Appropriations bill and added it to this appropriations 
measure.
    When questioned about the military construction projects 
included in the DERF account, the Under Secretary of Defense 
(Comptroller) explained that the requirements were developed at 
the end of the OSD/OMB budget review and time did not allow 
them to be included in the proper appropriations account. 
Therefore, the Administration decided to place the DERF 
military construction projects in the Defense Appropriations 
bill.
    The Committee commends the Department for seeking funds for 
these critical security enhancement projects at installations 
within the United States and overseas. The process used to 
request these funds, however, is irregular and inappropriate. 
If validated funding requirements are determined subsequent to 
budget submission, the Administration should transmit a budget 
amendment to the Congress in the proper format and is directed 
to do so in the future.
    The following table summarizes the DERF request and 
Committee recommendation by account:

------------------------------------------------------------------------
                                                            Committee
                Account                   DERF request    recommendation
------------------------------------------------------------------------
Military Construction, Army...........     $100,000,000     $100,000,000
Military Construction, Navy...........      220,730,000      209,430,000
Military Construction, Air Force......      190,597,000      180,597,000
Military Construction, Defense-wide...       31,300,000       24,700,000
Military Construction, Air National           8,933,000        8,933,000
 Guard................................
Military Construction, Naval Reserve..        7,117,000        7,117,000
Military Construction, Air Force              6,076,000        6,076,000
 Reserve..............................
Family Housing Operations and                29,631,000       29,631,000
 Maintenance, Air Force...............
                                       ---------------------------------
      Total...........................      594,384,000      566,484,000
------------------------------------------------------------------------

    The Committee recommends appropriating $566,484,000, which 
is $27,900,000 below the budget request. This reduction affects 
four projects: (1) it eliminates a redundant $6,000,000 
training facility; (2) it eliminates a $4,000,000 visiting 
quarters associated with the redundant training facility; (3) 
it eliminates an access road improvements project for 
$11,300,000; and (4) it reduces the request for a new Northern 
Command Headquarters from $25,000,000 to $18,400,000. The state 
list at the back of the report designates DERF-requested 
projects in the project title line.

                      Navy Barracks Privatization

    The Department of Navy has requested funds to expand their 
family housing privatization efforts to unaccompanied housing. 
The Navy is currently developing three bachelor housing pilot 
projects--Hampton Roads and Quantico in Virginia and Camp 
Pendleton in California. The Committee agrees there may be real 
opportunities for applying privatization authorities to 
unaccompanied housing needs and supports the Department of 
Navy's efforts.
    The Committee believes a ``pilot project'' approach is the 
best method by which to study the efficacy of this initiative 
and encourages the Department to evaluate lessons learned 
before expanding the effort to other installations. These 
projects must be self-sustaining, the life cycle costs need to 
be beneficial to the taxpayer, and good business practices 
should drive transactions rather than Office of Management and 
Budget (OMB) scoring requirements. The Department is directed 
to keep the Committee informed of the initiative's progress.

Accrual Funding of Retirement Costs and Post-Retirement Health Benefits

    The President's budget included a legislative proposal 
under the jurisdiction of the House Committee on Government 
Reform to charge to individual agencies, starting in fiscal 
year 2003, the fully accrued costs related to retirement 
benefits of Civil Service Retirement System employees and 
retiree health benefits for all civilian employees. The budget 
also requested an additional dollar amount in each affected 
discretionary account to cover these accrued costs.
    Without passing judgment on the merits of this legislative 
proposal, the Committee has reduced the dollar amounts of the 
President's request shown in the ``Comparative Statement of New 
Budget Authority'' and other tables in this report to exclude 
the accrual-funding proposal. The disposition by Congress of 
the legislative proposal is unclear at this time. Should the 
proposal be passed by Congress and enacted, the Committee will 
make appropriate adjustments to the President's request to 
include accrual amounts.
    The Committee further notes that administration proposals 
requiring legislative action by the authorizing committees of 
Congress are customarily submitted in the budget as separate 
schedules apart from the regular appropriations requests. 
Should such a proposal be enacted, a budget amendment formally 
modifying the President's appropriation request for 
discretionary funding is then transmitted to the Congress.
    The Committee is concerned that this practice, which has 
always worked effectively for both Congress and past 
administrations, was not followed for the accrual funding 
proposal. In this case, the Office of Management and Budget 
(OMB) decided to include accrual amounts in the original 
discretionary appropriations language request. These amounts 
are based on legislation that has yet to be considered and 
approved by the appropriate committees of Congress. This led to 
numerous misunderstandings both inside and outside of Congress 
of what was the ``true'' President's budget request. The 
Committee believes that, in the future, OMB should follow long-
established procedures with respect to discretionary spending 
proposals that require legislative action.
    The accounts reduced in this bill are as follows:

------------------------------------------------------------------------
                        Account                              Amount
------------------------------------------------------------------------
Military Construction, Army...........................      -$26,083,000
Military Construction, Navy...........................       -10,470,000
Family Housing Operations and Maintenance, Army.......        -3,267,000
Family Housing Operations and Maintenance, Defense-              -37,000
 wide.................................................
                                                       -----------------
      Total...........................................       -39,857,000
------------------------------------------------------------------------

              Sustainment, Restoration, and Modernization

    The Department is directed to continue describing on form 
1390 the backlog of Sustainment, Restoration, and Modernization 
needs at installations with future construction projects. For 
troop housing requests, form 1391 should describe any 
Sustainment, Restoration, and Modernization conducted in the 
past two years, and future requirements for unaccompanied 
housing at the corresponding installation. Additionally, the 
forms should include English equivalent measurements for 
projects presented in metric measurement. Rules for funding 
repairs of facilities under the Operation and Maintenance 
account are described below:
     Components of the facility may be repaired by 
replacement, and such replacement can be up to current 
standards or codes.
     Interior arrangements 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 concurrently with repair 
projects, as long as the final conjunctively funded project is 
a complete and usable facility.
     The appropriate service secretary shall notify the 
appropriate committees 21 days prior to carrying out any repair 
project with an estimated cost in excess of $7,500,000.

                           Construction Costs

    The Committee directs the Department to provide an economic 
analysis by January 15, 2003, regarding the costs of complying 
with section 2821 of Title 10, United States Code, compared to 
the cost of conventional construction. The analysis should 
include the ramifications of this provision on existing Status 
of Forces agreements that do not permit importation of U.S. 
modular construction or building materials. In addition to the 
actual costs, the comparison should include the costs of 
shipping, maintenance, and maintaining architectural 
compatibility with the surrounding construction.

                    Geothermal Heat Pump Technology

    The Committee is interested in exploring new building 
technologies particularly if their use is practical and reduces 
life cycle costs of construction. Geothermal heat pumps are an 
established technology with a proven track record of lowering 
power consumption by as much as 60 percent over conventional 
HVAC systems. Several large-scale geothermal heat pump 
installations at military bases, most notably Fort Polk in 
Louisiana and Camp Lejeune in North Carolina, have demonstrated 
the technology's potential to significantly reduce energy 
consumption and minimize life cycle maintenance costs. 
Therefore, the Committee directs DOD and the service components 
to educate themselves about the pros and cons of this 
technology and to consider whether it can be effectively 
incorporated into military facilities.

                               Land Swaps

    Currently, the National Guard and the Reserve components 
have authority to conduct land swaps as long as receipts from 
the transaction are retained for use by the service components. 
Savings to both military construction and operations and 
maintenance accounts occur when such land swaps result in the 
consolidation of installations and in the reduction of excess 
land. The Committee directs DOD to explore ways to increase the 
use of this authority.

                Joint Homeland Defense Training Facility

    The Committee encourages the Department of Defense to 
promote collaborative training to increase our preparedness and 
to protect our nation from future terrorist attacks. The 
Committee directs the Department of Defense to review a 
proposal for a Joint Homeland Defense Training Facility for the 
Northeast at the Massachusetts Military Reservation. This 
critical facility would provide interagency, anti-terrorist, 
homeland defense, and crisis response training and operations 
for the northeast region of the United States, and have an 
excellent location within a 1.5-hour drive from two state 
capitals and major airports. The Defense Department is directed 
to submit a report on this review to the Committee no later 
than January 1, 2003.

                   Fiscal Year 2003 Barracks Request

    The Committee recommends appropriating $1,176,190,000 to 
construct or modernize 12,819 barracks spaces in fiscal year 
2003. This recommendation is $9,600,000 above the request and 
$97,943,000 below the amount enacted in fiscal year 2002. This 
recommendation results in construction or renovation of 56 
additional barracks spaces and maintains DOD's goal of 
eliminating all inadequate barracks by 2008.
    The following troop housing construction projects are 
recommended for fiscal year 2003:

                 FISCAL YEAR 2003 TROOP HOUSING PROJECTS
------------------------------------------------------------------------
              Location                     Request         Recommended
------------------------------------------------------------------------
Army:
    Alaska--Fort Richardson.........       $21,000,000       $21,000,000
    Colorado--Fort Carson...........        42,000,000        42,000,000
    Georgia--Fort Benning...........        45,000,000        45,000,000
    Hawaii--Schofield Barracks......        49,000,000        49,000,000
    Hawaii--Schofield Barracks......        42,000,000        42,000,000
    Kansas--Fort Riley..............        41,000,000        41,000,000
    Kentucky--Fort Campbell.........        49,000,000        49,000,000
    Maryland--Fort Detrick..........        16,000,000        16,000,000
    New York--Fort Drum.............                 0         8,000,000
    North Carolina--Fort Bragg......        50,000,000        50,000,000
    North Carolina--Fort Bragg......        50,000,000        50,000,000
    Texas--Fort Hood................        45,000,000        45,000,000
    Washington--Fort Lewis..........        50,000,000        50,000,000
    Belgium--Shape HQ...............        13,600,000        13,600,000
    Germany--Bamberg................        10,200,000        10,200,000
    Germany--Grafenwoehr............        13,200,000        13,200,000
    Germany--Mannheim...............        42,000,000        42,000,000
    Italy--Vicenza..................        31,000,000        31,000,000
    Korea--Camp Carroll.............        20,000,000        20,000,000
    Korea--Camp Hovey...............        25,000,000        25,000,000
    Korea--Camp Humphreys...........        36,000,000        36,000,000
    Korea--Camp Walker..............        10,200,000        10,200,000
    Korea--K16 Airfield.............        40,000,000        40,000,000
    Qatar...........................         8,600,000         8,600,000
                                     -----------------------------------
      Subtotal, Army................       749,800,000       757,800,000
                                     ===================================
Navy/Marine Corps:
    California--Camp Pendleton......        23,230,000        23,230,000
    California--Twenty-nine Palms...        25,770,000        25,770,000
    Illinois--Great Lakes...........        43,360,000        43,360,000
    Illinois--Great Lakes...........        41,740,000        41,740,000
    Maryland--Andrews AFB...........         9,680,000         9,680,000
    Mississippi--Pascagoula.........                 0        12,000,000
    Virginia--Quantico..............        10,280,000        10,280,000
    Virginia--Quantico..............         5,040,000         5,040,000
    Virginia--Yorktown..............        15,020,000        15,020,000
    Virginia--Norfolk...............        37,310,000        37,310,000
    Washington--Bremerton...........        35,120,000        35,120,000
    Greece--Larissa.................        14,800,000        14,800,000
    Guam--Mariana Islands...........        13,400,000        13,400,000
                                     -----------------------------------
      Subtotal, Navy................       274,750,000       286,750,000
                                     ===================================
Air Force:
    Arizona--Davis-Monthan AFB......         9,110,000         9,110,000
    Florida--Hulburt Field..........         9,000,000         9,000,000
    Louisiana--Barksdale AFB........        10,900,000        10,900,000
    Mississippi--Keesler AFB........        22,000,000        22,000,000
    Nevada--Nellis AFB..............        12,280,000        12,280,000
    North Carolina--Pope AFB........         9,700,000         9,700,000
    Ohio--Wright-Patterson AFB......        10,400,000                 0
    Texas--Lackland AFB.............        18,500,000        18,500,000
    Texas--Sheppard AFB.............        10,000,000        10,000,000
    Virginia--Langley AFB...........         8,320,000         8,320,000
    Korea--Osan AB..................        15,100,000        15,100,000
                                     -----------------------------------
      Subtotal, Air Force...........       135,310,000       124,910,000
                                     ===================================
Naval Reserve:
    Georgia--Atlanta................         6,730,000         6,730,000
                                     -----------------------------------
      Subtotal, Naval Reserve.......         6,730,000         6,730,000
                                     ===================================
      Total.........................     1,166,590,000     1,176,190,000
------------------------------------------------------------------------

                       Child Development Centers

    The Committee recommends $17,570,000 for child development 
centers. This is $6,870,000 above the budget request and 
$26,740,000 below last year's enacted level.
    Child Development Centers (CDCs) remain critically 
important for military families, especially single parents, 
dual-income families, and spouses left behind during 
deployments, and the Committee commends the individual services 
on the quality of care CDCs provide.
    The Committee recommends appropriating funds for the 
following child development center projects in fiscal year 
2003:

               FISCAL YEAR 2003 CHILD DEVELOPMENT CENTERS
------------------------------------------------------------------------
               Location                     Request        Recommended
------------------------------------------------------------------------
Army:
    Germany--Bamberg..................       $7,000,000       $7,000,000
    Italy--Vicenza....................        3,700,000        3,700,000
                                       ---------------------------------
      Subtotal, Army..................       10,700,000       10,700,000
                                       =================================
Navy/Marine Corps:
    Rhode Island--Newport.............                0        6,870,000
                                       ---------------------------------
      Subtotal, Navy..................                0        6,870,000
                                       =================================
      Total...........................       10,700,000       17,570,000
------------------------------------------------------------------------

                    Hospital and Medical Facilities

    Consistent with the budget request, the Committee 
recommends appropriating $150,541,000 for hospitals and medical 
facilities which is the same as the President's request and 
$48,285,000 below last year's enacted level. The request 
includes $147,178,000 for five projects and $3,363,000 for 
unspecified minor construction.
    The Committee recommends appropriating funds for the 
following hospital and medical facilities:

----------------------------------------------------------------------------------------------------------------
                   Location                               Project title               Request       Recommended
----------------------------------------------------------------------------------------------------------------
Alaska--Elmendorf AFB.........................  Contractor Claim................     $10,400,000     $10,400,000
Alaska--Fort Wainwright.......................  Hospital Replacement Phase IV...      53,000,000      53,000,000
Hawaii--Hickam AFB............................  Life Skills Clinic Replacement..       2,700,000       2,700,000
Germany--Spangdahlem AB.......................  Hospital Replacement............      39,629,000      39,629,000
Italy--Naples.................................  Medical/Dental Facility               41,449,000      41,449,000
                                                 Replacement.
Worldwide Various.............................  Unspecified Minor Construction..       3,363,000       3,363,000
                                                                                 -------------------------------
      Total...................................   ...............................     150,541,000     150,541,000
----------------------------------------------------------------------------------------------------------------

                      Military Construction, Army


                        (INCLUDING RESCISSIONS)




Fiscal year 2002:
    Appropriation.....................................    $1,778,256,000
    Rescission........................................       -36,400,000
    Emergency Appropriation (P.L. 107-117)............        20,700,000
      Total...........................................     1,762,556,000
Fiscal year 2003 estimate.............................     1,450,438,000
    Defense Emergency Response Fund Request...........       100,000,000
      Total 2003 President's Request..................     1,550,438,000
Recommended Appropriation.............................     1,514,557,000
    Rescission (General Provision Sec. 128)...........       -13,676,000
    Rescission........................................        -5,000,000
      Total Committee recommendation in the bill......     1,495,881,000
Comparison with:
    Fiscal year 2002 appropriation....................      -266,675,000
    Fiscal year 2003 estimate.........................       -54,557,000


    The Committee recommends appropriating $1,495,881,000 for 
Military Construction, Army, for fiscal year 2003. This is a 
decrease of $54,557,000 below the budget request and a decrease 
of $266,675,000 below the fiscal year 2002 appropriation.
    Chemical Demilitarization.--The budget request proposes, as 
it has for several years, that chemical demilitarization 
projects be appropriated in this account. However, the 
Committee recommends that the request of $167,631,000 be 
appropriated in the ``Military Construction, Defense-wide'' 
account in order to avoid distorting the size of the Army's 
military construction program.
    Georgia-Fort Stewart: Command and Control Facility.--Of the 
additional amount provided for planning and design in this 
account, the Committee directs that not less than $1,600,000 be 
made available to design this facility.
    New Mexico--White Sands Missile Range: Sewage Plant 
Upgrade.--Of the additional amount provided for unspecified 
minor construction in this account, the Committee directs that 
not less than $1,050,000 be made available to complete this 
upgrade.
    Texas--Fort Bliss: Upgrade Water Distribution System/
Replace Elevated Water Tanks.--The Committee is aware that the 
water distribution system at Fort Bliss in Texas is failing. To 
address this problem, the Committee provides $10,200,000 to 
upgrade the system in fiscal year 2003. However, the Committee 
rescinds $5,000,000 from a similar project provided in the FY 
2002 Military Construction Appropriations Act, 2002 (Public Law 
107-64). The fiscal year 2002 project to replace elevated water 
tanks at Fort Bliss is no longer needed.
    Troop Housing in Korea.--The Committee commends the 
Department of the Army for the 26 percent increase in funding 
for installations and facilities in Korea. The budget increase 
is directed entirely towards the construction of troop 
barracks, which sends a positive message to our soldiers that 
their quality of life is a top priority. In future budget 
submittals, the Committee encourages the Army to continue 
improving the facilities on military installations in Korea.

                      Military Construction, Navy


                         (INCLUDING RESCISSION)




Fiscal year 2002:
    Appropriation.....................................    $1,144,221,000
    Rescission........................................       -19,588,000
    Emergency Appropriation (P.L. 107-117)............         2,000,000
      Total...........................................     1,126,633,000
Fiscal year 2003 estimate.............................       884,661,000
    Defense Emergency Response Fund Request...........       220,730,000
      Total 2003 President's Request..................     1,105,391,000
Recommended Appropriation.............................     1,245,765,000
    Rescission (General Provision Sec. 128)...........        -1,340,000
      Total Committee recommendation in the bill......     1,244,425,000
Comparison with:
    Fiscal year 2002 appropriation....................      +117,792,000
    Fiscal year 2003 estimate.........................      +139,034,000


    The Committee recommends appropriating $1,244,425,000 for 
Military Construction, Navy, for fiscal year 2003. This is an 
increase of $139,034,000 above the budget request and an 
increase of $117,792,000 above the fiscal year 2002 
appropriation.
    California--North Island Naval Air Station: Child 
Development Center.--Of the additional amount provided for 
planning and design in this account, the Committee directs that 
not less than $250,000 be made available to design this 
facility.
    New Jersey--Lakehurst Naval Air Engineering Station: EMALS 
Land Based Test Site.--The Committee commends the Secretary of 
the Navy for including the necessary funding in the budget 
request to design the Electromagnetic Aircraft Launch System 
(EMALS) Land Based Test Site at Lakehurst Naval Air Engineering 
Station in New Jersey. The Committee believes this project is a 
critical component of the CVN-X program and supports the 
Secretary's intent to request full funding for the project in 
fiscal year 2004.
    Spain--Madrid: Navy Exchange (NEX)/Morale, Welfare, 
Recreation (MWR) Facility.--The Committee recommends excluding 
$2,890,000 for construction of this facility. The Committee is 
reluctant to provide funds for this project until negotiations 
regarding NATO's command and force structure are complete.
    Washington--Whidbey Island Naval Air Station: Fire 
Station.--Of the additional amount provided for planning and 
design in this account, the Committee directs that not less 
than $180,000 be made available to design this facility.

                    Military Construction, Air Force


                         (INCLUDING RESCISSION)




Fiscal year 2002:
    Appropriation.....................................    $1,194,880,000
    Rescission........................................        -4,000,000
    Emergency Appropriation (P.L. 107-117)............        46,700,000
      Total...........................................     1,237,580,000
Fiscal year 2003 estimate.............................       644,090,000
    Defense Emergency Response Fund Request...........       190,597,000
      Total 2003 President's Request..................       834,687,000
Recommended Appropriation.............................       964,302,000
    Rescission (General Provision Sec. 128)...........       -10,281,000
      Total Committee recommendation in the bill......       954,021,000
Comparison with:
    Fiscal year 2002 appropriation....................      -283,559,000
    Fiscal year 2003 estimate.........................      +119,334,000


    The Committee recommends appropriating $954,021,000 for 
Military Construction, Air Force, for fiscal year 2003. This is 
an increase of $119,334,000 above the budget request and a 
decrease of $283,559,000 below the fiscal year 2002 
appropriation.
    C-17 Facilities.--The budget request for ``Military 
Construction, Air Force'' includes $30,569,000 for various C-17 
facilities at classified locations. Since the budget 
submission, the Air Force Mobility Roadmap has been released 
designating Travis AFB and March ARB in California as C-17 
beddown sites. As a result of this announcement, the Committee 
provides funding for the various C-17 facilities at their newly 
designated sites. Of the amount requested, $6,700,000 is 
transferred to the ``Military Construction, Air Force Reserve'' 
account. The remaining funds are provided in the ``Military 
Construction, Air Force'' account as follows:

------------------------------------------------------------------------
       Location/installation            Project title          Cost
------------------------------------------------------------------------
California: Travis AFB............  C-17 Flight               $4,600,000
                                     Simulator.
California: Travis AFB............  C-17 Parts Store....       8,000,000
California: Travis AFB............  Electrical,               11,269,000
                                     Utilities and
                                     Supporting
                                     Infrastructure.
                                                         ---------------
      Total.......................  ....................      23,869,000
------------------------------------------------------------------------

    Delaware--Dover AFB: Air Traffic Control Tower.--Of the 
additional amount provided for planning and design in this 
account, the Committee directs that not less than $675,000 be 
made available to design this facility.
    Florida--Tyndall AFB: 1st Air Force Operations Support 
Center.--Of the additional amount provided for planning and 
design in this account, the Committee directs that not less 
than $2,160,000 be made available to design this facility.
    Georgia--Robins AFB: Corrosion Control Paint Facility.--Of 
the additional amount provided for planning and design in this 
account, the Committee directs that not less than $2,430,000 be 
made available to design this facility.
    Mississippi--Columbus AFB: Fire Crash/Rescue Station.--Of 
the additional amount provided for planning and design in this 
account, the Committee directs that not less than $549,000 be 
made available to design this facility.
    South Dakota--Ellsworth AFB: 37th Bomb Wing Facility.--The 
Committee is aware that a bomb wing facility is needed for the 
37th Bomb Squadron to plan, brief, critique combat crews, and 
direct flight operations. The Committee encourages the Air 
Force to make this project a priority within the Future Years 
Defense Plan.
    Worldwide Classified--Classified Location: Classified 
Project.--The Committee denies funding for this project due to 
a lack of justification material.

                  Military Construction, Defense-wide


              (INCLUDING RESCISSION AND TRANSFER OF FUNDS)




Fiscal year 2002:
    Appropriation.....................................      $840,558,000
    Rescission........................................       -69,280,000
    Emergency Appropriation (P.L. 107-117)............        35,000,000
      Total...........................................       806,278,000
Fiscal year 2003 estimate.............................       740,535,000
    Defense Emergency Response Fund Request...........        31,300,000
      Total 2003 President's Request..................       771,835,000
Recommended Appropriation.............................       901,066,000
    Rescission (General Provision Sec. 128)...........        -2,976,000
      Total Committee recommendation in the bill......       898,090,000
Comparison with:
    Fiscal year 2002 appropriation....................       +91,812,000
    Fiscal year 2003 estimate.........................      +126,255,000


    The Committee recommends appropriating $898,090,000 for 
Military Construction, Defense-wide, for fiscal year 2003. This 
is an increase of $126,255,000 above the budget request and an 
increase of $91,812,000 above the fiscal year 2002 level.
    Chemical Demilitarization.--The 1986 National Defense 
Authorization Act (Public Law 99-145) authorized the Chemical 
Demilitarization program for the purpose of destroying all U.S. 
stockpiled chemical agents and weapons by April 29, 2007. In 
1991, Congress expanded the law to include the destruction of 
chemical warfare material not part of the stockpile such as 
buried munitions and former weapons production facilities. The 
Department of the Army is the agent responsible for program 
management and oversight. As requested by the President, the 
Committee recommends appropriating $167,631,000 for chemical 
demilitarization projects, which is $4,869,000 above the amount 
appropriated in fiscal year 2002. The following chart displays 
the fiscal year 2003 funding increments:

----------------------------------------------------------------------------------------------------------------
         State                   Installation                   Project               Request       Recommended
----------------------------------------------------------------------------------------------------------------
Arkansas...............  Pine Bluff Arsenal.........  Non-stockpile Ammunition       $18,937,000     $18,937,000
                                                       Demo Shop.
Colorado...............  Pueblo Depot...............  Ammunition Demil. Facility      38,000,000      38,000,000
                                                       (Ph. IV).
Indiana................  Newport Ammo. Plant........  Ammunition Demil. Facility      61,494,000      61,494,000
                                                       (Ph. V).
Kentucky...............  Blue Grass Army Depot......  Ammunition Demil. Facility      10,300,000      10,300,000
                                                       (Ph. III).
Kentucky...............  Blue Grass Army Depot......  Ammunition Support               8,300,000       8,300,000
                                                       Facility (Ph. III).
Maryland...............  Aberdeen Proving Ground....  Ammunition Demil. Facility      30,600,000      30,600,000
                                                       (Ph. V).
                                                                                 -------------------------------
      Total............    .........................    ........................     167,631,000     167,631,000
----------------------------------------------------------------------------------------------------------------

    The budget request includes a legislative provision that 
makes $84,400,000 for the chemical demilitarization 
construction program contingent upon the program meeting 
milestones to be agreed upon by the Office of the Secretary of 
Defense and the Office of Management and Budget. The Committee 
is concerned that some performance measures could hinder the 
Department's efforts to carry out this program as effectively 
and efficiently as possible. The Committee recommends retaining 
the language but only if the agreed upon performance standards 
enable DOD to accelerate the program.
    Moreover, the Committee endorses the Army's proposal to 
accelerate the neutralization of the chemical agents located at 
these sites and urges DOD to execute it as quickly as possible. 
The chemical agents stored at these sites create potential 
terrorist targets and should be destroyed as quickly as 
possible. Therefore, adequate military construction funding for 
the chemical weapons facilities is essential to achieving this 
goal. Likewise, accelerating the program will enable the United 
States to meet its obligations under the Chemical Weapons 
Convention Treaty.
    Maryland--Uniformed Services University of Health Sciences: 
Consolidated Nursing School.--Of the additional amount provided 
for planning and design in this account, the Committee directs 
that not less than $1,300,000 be made available to design this 
facility.

               Military Construction, Army National Guard





Fiscal year 2002 appropriation........................      $405,565,000
Fiscal year 2003 estimate.............................       101,595,000
Committee recommendation in the bill..................       159,672,000
Comparison with:
    Fiscal year 2002 appropriation....................      -245,893,000
    Fiscal year 2003 estimate.........................       +58,077,000


    The Committee recommends appropriating $159,672,000 for 
Military Construction, Army National Guard, for fiscal year 
2003. This is an increase of $58,077,000 above the budget 
request and a decrease of $245,893,000 below the fiscal year 
2002 appropriation.
    Alabama--Haleyville: Armed Forces Reserve Center.--Of the 
additional amount provided for planning and design in this 
account, the Committee directs that not less than $990,000 be 
made available to design this facility.
    Connecticut--Windsor Locks: Armed Forces Reserve Center.--
Of the additional amount provided for planning and design in 
this account, the Committee directs that not less than 
$1,126,000 be made available to design this facility.
    Georgia--Ft. Stewart/Hunter Army Airfield: Aviation Support 
Facility.--Of the additional amount provided for planning and 
design in this account, the Committee directs that not less 
than $1,158,000 be made available to design this facility.
    Massachusetts--Methuen: Readiness Center.--Of the 
additional amount provided for planning and design in this 
account, the Committee directs that not less than $659,000 be 
made available to design this facility.
    Massachusetts--Worcester: Readiness Center Utility 
Upgrades.--Of the additional amount provided for unspecified 
minor construction in this account, the Committee directs that 
not less than $586,000 be made available to execute this 
project.
    Mississippi--Tupelo: Readiness Center.--Of the additional 
amount provided for planning and design in this account, the 
Committee directs that not less than $879,000 be made available 
to design this facility.
    Rhode Island--North Kingstown: Army Aviation Support 
Facility.--Of the additional amount provided for planning and 
design in this account, the Committee directs that not less 
than $2,014,000 be made available to design this facility.
    South Dakota--Camp Rapid: Barracks.--The Committee is aware 
that two new replacement barracks and their supporting 
infrastructure are necessary at Camp Rapid. These buildings 
will replace tin huts that were built in 1970 and that do not 
support unit training, administration, supply, security, or 
command and control. The Committee encourages the Army National 
Guard to make this project a priority within the Future Years 
Defense Plan.
    Washington--Camp Murray: Readiness Center.--Of the 
additional amount provided for planning and design in this 
account, the Committee directs that not less than $856,000 be 
made available to design this facility.

               Military Construction, Air National Guard





Fiscal year 2002 appropriation........................      $253,386,000
Fiscal year 2003 estimate.............................        53,473,000
    Defense Emergency Response Fund Request...........         8,933,000
      Total 2003 President's Request..................        62,406,000
Total Committee recommendation in the bill............       119,613,000
Comparison with:
    Fiscal year 2002 appropriation....................      -133,773,000
    Fiscal year 2003 estimate.........................       +57,207,000


    The Committee recommends appropriating $119,613,000 for 
Military Construction, Air National Guard, for fiscal year 
2003. This is an increase of $57,207,000 above the budget 
request and a decrease of $133,773,000 below the fiscal year 
2002 appropriation.
    Massachusetts--Otis ANGB: Fire Crash Rescue Station/Control 
Tower.--Of the additional amount provided for planning and 
design in this account, the Committee directs that not less 
than $1,650,000 be made available to design this facility.
    Minnesota--Duluth IAP: Aircraft Maintenance Complex and 
Shops (Phase II).--Of the additional amount provided for 
planning and design in this account, the Committee directs that 
not less than $1,110,000 be made available to design this 
facility.
    Tennessee--Nashville: Replace Aircraft Maintenance Complex 
(Phase II).--Of the additional amount provided for planning and 
design in this account, the Committee directs not less than 
$347,000 be made available to design this facility.

                  Military Construction, Army Reserve





Fiscal year 2002 appropriation........................      $167,019,000
Fiscal year 2003 estimate.............................        58,779,000
Total Committee recommendation in the bill............        99,059,000
Comparison with:......................................
    Fiscal year 2002 appropriation....................       -67,960,000
    Fiscal year 2003 estimate.........................       +40,280,000


    The Committee recommends appropriating $99,059,000 for 
Military Construction, Army Reserve, for fiscal year 2003. This 
is an increase of $40,280,000 above the budget request and a 
decrease of $67,960,000 below the fiscal year 2002 
appropriation.
    Pennsylvania--Northeastern Pennsylvania: Joint Reserve 
Center.--The Committee is aware that Army National Guard and 
Army Reserve facilities in the Scranton, Pennsylvania, area are 
in poor condition and need to be replaced or renovated. Joint 
use facilities between the various components of the Defense 
Department is encouraged by the Committee as a means to 
optimize military construction and operation and maintenance 
funds while enhancing joint training and the total force 
concept. Therefore, the Committee directs the Army Reserve to 
explore the feasibility of establishing a Joint Reserve Center 
in Northeastern Pennsylvania to replace aging Guard and Reserve 
facilities. The Army Reserve is directed to submit a report no 
later than January 31, 2003 on the progress and feasibility of 
this initiative.

                  Military Construction, Naval Reserve





Fiscal year 2002:
    Appropriation.....................................       $53,201,000
    Rescission........................................          -925,000
      Total...........................................        52,276,000
Fiscal year 2003 estimate.............................        51,554,000
    Defense Emergency Response Fund Request...........         7,117,000
      Total 2003 President's Request..................        58,671,000
Total Committee recommendation in the bill............        75,821,000
Comparison with:
    Fiscal year 2002 appropriation....................       +23,545,000
    Fiscal year 2003 estimate.........................       +17,150,000


    The Committee recommends appropriating $75,821,000 for 
Military Construction, Naval Reserve, for fiscal year 2003. 
This is an increase of $17,150,000 above the budget request and 
an increase of $23,545,000 above the fiscal year 2002 
appropriation.
    Louisiana--Naval Air Station New Orleans.--The Committee 
has provided $7,400,000 for Phase III of the Joint Reserve 
Center project at the Joint Reserve Base, Naval Air Station, 
(JRBNAS) New Orleans. This Joint Reserve Center continues to 
meet the Committee's long stated policy goals of a truly 
``joint'' facility for military service elements in the entire 
region. While the current project includes a number of regional 
elements of the Navy, Marine Corps, Air Force and Army Reserve 
forces, the Army Reserve has yet to embrace truly the jointness 
capabilities of this Center for the 377th Theatre Area Army 
Command (TAACOM).
    The Committee believes the 377th is a critical logistics 
unit for several active Army and service deployment 
contingencies. Current plans of the Army Reserve are to keep 
all elements of the 377th TAACOM at its existing location 
within the region at some distance from the JRBNAS. The JRBNAS, 
New Orleans, is a major military airfield with existing 
deployment and joint service capabilities that should be fully 
utilized. Including the 377th TAACOM footprint within the scope 
of the Joint Reserve Center is appropriate; therefore, the 
Committee recommends that the Secretary of the Army and the 
Secretary of the Navy report to the Subcommittee on Military 
Construction prior to October 15, 2002, about the feasibility 
of including the Army Reserve in the Joint Reserve Center 
project.
    The Committee is also aware that a new high voltage 
distribution system is needed at the JRBNAS at Belle Chasse, 
Louisiana. The current high voltage system is over 30 years old 
and is listed as severely deteriorated and very ``high 
maintenance.'' A new system is critically needed to replace the 
overhead system with a more efficient, low maintenance 
underground system that would not be susceptible to damage from 
trees, heavy winds, and oversized military equipment. 
Therefore, the Committee encourages the Navy to make this 
project a priority and program the requirement within the 
Future Years Defense Plan.

                Military Construction, Air Force Reserve





Fiscal year 2002 appropriation........................       $74,857,000
Fiscal year 2003 estimate.............................        31,900,000
    Defense Emergency Response Fund Request...........         6,076,000
      Total 2003 President's Request..................        37,976,000
Total Committee recommendation in the bill............        75,276,000
Comparison with:
    Fiscal year 2002 appropriation....................          +419,000
    Fiscal year 2003 estimate.........................       +37,300,000


    The Committee recommends appropriating $75,276,000 for 
Military Construction, Air Force Reserve, for fiscal year 2003. 
This is an increase of $37,300,000 above the budget request and 
an increase of $419,000 above the fiscal year 2002 
appropriation.
    California--March ARB: C-17 Facilities.--The Committee 
provides $6,700,000 for C-17 facilities at March ARB in 
California. These funds were requested in the ``Military 
Construction, Air Force'' account at a classified location 
because formal C-17 basing announcements had not been made 
prior to budget submission. Recently, March ARB has been 
designated a C-17 beddown site by the Air Force Mobility 
Roadmap. The Committee provides funds for the following 
facilities:

------------------------------------------------------------------------
       Location/installation            Project title          Cost
------------------------------------------------------------------------
California: March ARB.............  C-17 Alter Squadron       $1,700,000
                                     Operations Facility.
California: March ARB.............  C-17 Alter Co-             3,000,000
                                     located Life
                                     Support Building.
California: March ARB.............  C-17 Alter General         2,000,000
                                     Maintenance Shops.
                                                         ---------------
      Total.......................  ....................       6,700,000
------------------------------------------------------------------------

     North Atlantic Treaty Organization Security Investment Program





Fiscal year 2002 appropriation........................      $162,600,000
Fiscal year 2003 estimate.............................       168,200,000
Committee recommendation in the bill..................       168,200,000
Comparison with:
    Fiscal year 2002 appropriation....................        +5,600,000
    Fiscal year 2003 estimate.........................                 0


    The NATO Security Investment Program (NSIP) consists of 
annual contributions by NATO member countries. The program 
finances the costs of construction needed to support the roles 
of the major NATO commands. The investments cover facilities 
such as airfields, fuel pipelines and storage, harbors, 
communications and information systems, radar and navigational 
aids, and military headquarters. The U.S. share of the NSIP for 
fiscal year 2003 is $179,200,000, or roughly 25 percent of the 
total NSIP program amount of $729,600,000.
    Consistent with the budget request, the Committee 
recommends $168,200,000 for the NSIP, which is an increase of 
$5,600,000 above the appropriation for fiscal year 2002. To 
offset the total U.S. share of the program, $11,000,000 is from 
recoupments of prior year funds.
    Occasionally, the U.S. has been forced to delay temporarily 
the authorization of projects due to shortfalls in U.S. 
obligation authority. The Committee directs DOD to notify the 
Committee 30 days prior to taking such action.
    The Committee is concerned about the long-term programmatic 
costs associated with NATO's decision to realign its 
headquarters. The budget request proposes to appropriate funds 
for housing and other community support facilities at two new 
NATO Joint Command Headquarters in Europe--one in Larissa, 
Greece and the other in Madrid, Spain. The Committee recommends 
against providing funds for two flag officer quarters in 
Larissa and a support facility in Madrid until negotiations on 
NATO's command and force structure are completed.

                        Family Housing Overview

    Historically, housing for military personnel and their 
families has been a low priority for DOD. Consequently, the 
inventory is old and in most cases is substandard. DOD 
estimates that 180,000 of the 300,000 military family housing 
units it owns and operates are substandard and that it would 
cost more than $16 billion to improve or replace them.
    To ameliorate the costs associated with providing decent 
housing, Congress authorized the Military Housing Privatization 
Initiative. The initiative's intent is to create more housing 
quickly, to attract private capital, and to make the private 
sector responsible for providing routine maintenance.

                        Committee Recommendation

    The Committee recommends appropriating $4,247,804,000 for 
the family housing construction and operations and maintenance 
accounts for fiscal year 2003, which is an increase of 
$1,344,000 above the budget request and $152,065,000 above the 
fiscal year 2002 appropriation.
    The operations and maintenance accounts provide funds to 
pay for maintenance and repair, furnishings, management, 
services, utilities, leasing, interest, mortgage insurance, and 
miscellaneous expenses.

                        Foreign Currency Savings

    The Committee directs that savings from foreign currency 
re-estimates be used to maintain existing family housing units. 
The Comptroller is directed to report to the Committee on how 
these savings are allocated by December 1, 2003. Likewise, only 
10 percent of funds made available to the construction and 
operation and maintenance accounts may be transferred between 
the accounts. Such transfers must be reported to the Committee 
within thirty days of such action.

                     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 that 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 new or renewal lease that exceeds $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.

                         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 improvement projects over $2,000,000.

                   Family Housing Construction, Army


                         (INCLUDING RESCISSION)




Fiscal year 2002 appropriation........................      $312,742,000
Fiscal year 2003 estimate.............................       283,346,000
Recommended Appropriation.............................       283,346,000
    Rescission (General Provision Sec. 128)...........        -4,920,000
      Total Committee recommendation in the bill......       278,426,000
Comparison with:
    Fiscal year 2002 appropriation....................       -34,316,000
    Fiscal year 2003 estimate.........................        -4,920,000


    The Committee recommends appropriating $278,426,000 for 
Family Housing Construction, Army, for fiscal year 2003. This 
recommendation is a decrease of $4,920,000 below the budget 
request, and a decrease of $34,316,000 below the fiscal year 
2002 appropriation. The appropriation includes $27,942,000 to 
construct new family housing units, $239,751,000 to improve 
existing units, and $15,653,000 for planning and design. 
Section 128 of the General Provisions rescinds $4,920,000 from 
this account.

            Family Housing Operations and Maintenance, Army





Fiscal year 2002 appropriation........................    $1,089,573,000
Fiscal year 2003 estimate.............................     1,119,007,000
Committee recommendation in the bill..................     1,119,007,000
Comparison with:
    Fiscal year 2002 total appropriation..............       +29,434,000
    Fiscal year 2003 estimate.........................                 0


    The Committee recommends appropriating $1,119,007,000 for 
Family Housing Operations and Maintenance, Army, for fiscal 
year 2003. This is equal to the budget request and is an 
increase of $29,434,000 above the fiscal year 2002 
appropriation.

           Family Housing Construction, Navy and Marine Corps


                         (INCLUDING RESCISSION)




Fiscal year 2002 appropriation........................      $331,780,000
Fiscal year 2003 estimate.............................       375,700,000
Recommended Appropriation.............................       380,268,000
    Rescission (General Provision Sec. 128)...........        -2,652,000
      Total Committee recommendation in the bill......       377,616,000
Comparison with:
    Fiscal year 2002 total appropriation..............       +45,836,000
    Fiscal year 2003 estimate.........................        +1,916,000


    The Committee recommends appropriating $377,616,000 for 
Family Housing Construction, Navy and Marine Corps, for fiscal 
year 2003. This is an increase of $1,916,000 above the budget 
request and an increase of $45,836,000 above the fiscal year 
2002 appropriation. The appropriation includes $229,519,000 to 
construct new family housing units, $139,468,000 to improve 
existing units, and $11,281,000 for planning and design. 
Section 128 of the General Provisions rescinds $2,652,000 from 
this account.
    Greece--Larissa: Construct Two Flag Officer Quarters.--The 
budget request includes $1,232,000 to construct two new Flag 
Officer Quarters to support a new NATO Subregional Command 
Headquarters. The Committee recommends against providing funds 
for this project until negotiations on NATO's command and force 
structure have been completed.

    Family Housing Operations and Maintenance, Navy and Marine Corps





Fiscal year 2002 appropriation........................      $910,095,000
Fiscal year 2003 estimate.............................       867,788,000
Committee recommendation in the bill..................       867,788,000
Comparison with:
    Fiscal year 2002 total appropriation..............       -42,307,000
    Fiscal year 2003 estimate.........................                 0


    The Committee recommends appropriating $867,788,000 for 
Family Housing Operations and Maintenance, Navy and Marine 
Corps, for fiscal year 2003. This is equal to the budget 
request and is a decrease of $42,307,000 below the fiscal year 
2002 appropriation.
    Housing Privatization Support Costs.--The Committee 
transfers $4,327,000 from the Department of Navy's maintenance 
of real property account to the housing privatization support 
cost account. This amount reflects the increased costs 
associated with an accelerated rate of housing privatization 
transactions.

                 Family Housing Construction, Air Force


                         (INCLUDING RESCISSION)




Fiscal year 2002 appropriation........................      $550,703,000
Fiscal year 2003 estimate.............................       676,694,000
Recommended Appropriation.............................       689,824,000
    Rescission (General Provision Sec. 128)...........        -8,782,000
      Total Committee recommendation in the bill......       681,042,000
Comparison with:
    Fiscal year 2002 appropriation....................      +130,339,000
    Fiscal year 2003 estimate.........................        +4,348,000


    The Committee recommends appropriating $681,042,000 for 
Family Housing Construction, Air Force, for fiscal year 2003. 
This recommendation is an increase of $4,348,000 above the 
budget request and is an increase of $130,339,000 above the 
fiscal year 2002 appropriation. The appropriation includes 
$429,568,000 to construct new family housing units, 
$226,068,000 to improve existing units, and $34,188,000 for 
planning and design. Section 128 of the General Provisions 
rescinds $8,782,000 from this account.

          Family Housing Operations and Maintenance, Air Force





Fiscal year 2002 appropriation........................      $844,715,000
Fiscal year 2003 estimate.............................       844,419,000
    Defense Emergency Response Fund Request...........        29,631,000
      Total 2003 President's Request..................       874,050,000
Committee recommendation in the bill..................       874,050,000
Comparison with:
    Fiscal year 2002 total appropriation..............       +29,335,000
    Fiscal year 2003 estimate.........................                 0


    The Committee recommends appropriating $874,050,000 for 
Family Housing Operations and Maintenance, Air Force, for 
fiscal year 2003. This appropriation is the same as the budget 
request and is an increase of $29,335,000 above the fiscal year 
2002 appropriation.

               Family Housing Construction, Defense-wide





Fiscal year 2002 appropriation........................          $250,000
Fiscal year 2003 estimate.............................         5,480,000
Committee recommendation in the bill..................         5,480,000
Comparison with:
    Fiscal year 2002 appropriation....................        +5,230,000
    Fiscal year 2003 estimate.........................                 0


    The Committee recommends appropriating $5,480,000 for 
Family Housing Construction, Defense-wide, for fiscal year 
2003. This is equal to the budget request and is an increase of 
$5,230,000 above the fiscal year 2002 appropriation. The 
appropriation includes $5,230,000 to improve existing units.

        Family Housing Operations and Maintenance, Defense-wide





Fiscal year 2002 appropriation........................       $43,762,000
Fiscal year 2003 estimate.............................        42,395,000
Committee recommendation in the bill..................        42,395,000
Comparison with:
    Fiscal year 2002 appropriation....................        -1,367,000
    Fiscal year 2003 estimate.........................                 0


    The Committee recommends appropriating $42,395,000 for 
Family Housing, Defense-wide, for fiscal year 2003. The 
recommendation is equal to the budget request and is a decrease 
of $1,367,000 below the fiscal year 2002 appropriation.

         Department of Defense Family Housing Improvement Fund





Fiscal year 2002 appropriation........................        $2,000,000
Fiscal year 2003 estimate.............................         2,000,000
Committee recommendation in the bill..................         2,000,000
Comparison with:
    Fiscal year 2002 appropriation....................                 0
    Fiscal year 2003 estimate.........................                 0


    The Family Housing Improvement Fund is administered as a 
single account without fiscal year limitations and contains 
appropriated and transferred funds from family housing 
construction accounts. 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 deposited into this fund and its use is subject 
to annual appropriations.
    Consistent with the budget request, the Committee 
recommends $2,000,000 for the Department of Defense Family 
Housing Improvement Fund for fiscal year 2003, which is equal 
to the fiscal year 2002 appropriation. The Department is 
directed to continue providing quarterly status reports on each 
privatization project.

                  Homeowners Assistance Fund, Defense





Fiscal year 2002 appropriation........................       $10,119,000
Fiscal year 2003 estimate.............................                 0
Committee recommendation in the bill..................                 0
Comparison with:
    Fiscal year 2002 appropriation....................       -10,119,000
    Fiscal year 2003 estimate.........................                 0


    The Homeowners Assistance Fund is a non-expiring revolving 
fund that provides assistance to homeowners. The fund was 
established to ameliorate adverse impacts on the economies of 
local communities caused by base closures or realignments. 
Service members may access the fund if the value of their home 
decreases because of a BRAC. The account receives funds 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.
    Consistent with the budget request, the Committee 
recommends no appropriation for the Homeowners Assistance Fund 
for fiscal year 2003, which is $10,119,000 below the 
appropriation for fiscal year 2002. Total requirements for 
fiscal year 2003 are estimated to be $15,657,000 and will be 
funded with revenue from sales of acquired properties and prior 
year unobligated balances.

                  Base Realignment and Closure Account





Fiscal year 2002 appropriation........................      $632,713,000
Fiscal year 2003 estimate.............................       545,138,000
Committee recommendation in the bill..................       545,138,000
Comparison with:
    Fiscal year 2002 appropriation....................       -87,575,000
    Fiscal year 2003 estimate.........................                 0


    The Defense Authorization Amendments and Base Closure and 
Realignment Act of 1988 (Public Law 100-526) and the Defense 
Base Closure and Realignment Act of 1990 (Public Law 101-510) 
authorized four base realignment and closure (BRAC) rounds 
between 1988 and 1995 to reduce excess military bases and 
infrastructure. Ninety-seven major domestic installations were 
closed and several facilities were realigned. Savings of 
$14,800,000,000 were realized through fiscal year 2001.
    Consistent with the budget request, the Committee 
recommends $545,138,000 for the Base Realignment and Closure 
account for fiscal year 2003. This amount is a decrease of 
$87,575,000 below the appropriation for fiscal year 2002.
    To date, the Congress has appropriated a net total of 
$21,774,567,000 for the BRAC program from fiscal years 1990 
through 2002. Within this total, the Department has allocated 
$7,462,686,000 for activities associated with environmental 
restoration.
    The Committee has provided the Department with the 
flexibility to allocate funds by service component, by 
functions, and by base. Recognizing the complexities of 
providing for environmental restoration of properties, the 
Committee has provided flexibility to allow the Office of the 
Secretary of Defense to monitor program execution to 
redistribute unobligated balances as appropriate to avoid 
delays and to effect timely execution of environmental cleanup 
responsibilities.
    California--Fort Ord: Hazardous Waste Removal.--The 
Department of Army is working to develop, demonstrate, and 
validate innovative technologies to address the remediation of 
lead-based paint, asbestos, and polychlorinated biphenyls 
generated from the removal of the 12th Street Corridor building 
at the former Fort Ord in California. The Committee urges the 
Department of Army to continue this effort until a successful 
technology is validated. A successful technology solution from 
this effort will be beneficial for other closed or realigned 
defense installations facing similar challenges.
    Unexploded Ordnance.--This year, the Committee held a 
hearing on Unexploded Ordnance (UXO). Drawing on experts from 
Congress, the Office of the Secretary of Defense (OSD), the 
service components, and the former Fort Ord, members were 
exposed to a broad range of UXO issues.
    Of primary concern to the Committee is the state of UXO 
detection and removal technology. The current process requires 
troops to dig manually and identify visually all potential UXO. 
Over 90 percent of these digs yield false positives, they put 
troops at risk of injury or death, and they contribute to the 
exorbitant cost of UXO removal.
    The Committee is interested in staying abreast of UXO 
issues as they relate to the Military Construction Subcommittee 
and directs DOD, on an annual basis, to provide inventories and 
clean up costs of UXO at Base Realignment and Closure (BRAC) 
sites to the Committees on Appropriations. In addition, the 
Committee encourages DOD to continue funding critical UXO 
technology and environmental clean-up initiatives in order to 
ensure the productive use of former military sites in the 
future.

                           General Provisions

    The Administration proposed eliminating several general 
provisions enacted in P.L. 107-64: sections 111, 113, 119, 122, 
124, 125, and 128-132. The Committee recommends retaining every 
provision except for sections 124 and 128-132. Additionally, 
the Administration proposed a new section 122 that would allow 
up to $70,000,000 to be transferred among any accounts in the 
bill. The Committee did not include this provision. General 
Provisions included in the bill are as follows:
    Section 101 of the General Provisions limits DOD from 
spending funds appropriated in this Act for payments under a 
cost-plus-a-fixed-fee contract for construction where cost 
estimates exceed $25,000. An exception for Alaska is provided.
    Section 102 of the General Provisions permits the hire of 
passenger motor vehicles.
    Section 103 of the General Provisions permits funds to be 
expended on the construction of defense access roads under 
certain circumstances.
    Section 104 of the General Provisions prohibits 
construction of new bases inside the continental United States 
without a specific appropriation.
    Section 105 of the General Provisions limits the use of 
funds for purchase of land or land easements that exceed 100% 
of value.
    Section 106 of the General Provisions prohibits the use of 
funds to acquire land, prepare sites, or install utilities for 
family housing except housing for which funds have been 
appropriated.
    Section 107 of the General Provisions limits the use of 
minor construction funds to be transferred or relocated from 
one installation to another.
    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 limits appropriations 
from being used to pay real property taxes in foreign nations.
    Section 110 of the General Provisions prohibits 
construction of new bases overseas without prior notification 
to the Committee on Appropriations.
    Section 111 of the General Provisions establishes a 
preference for American architectural and engineering services 
where the services are in Japan, NATO member countries, and the 
Arabian Gulf.
    Section 112 of the General Provisions establishes a 
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 where construction costs exceed $100,000.
    Section 114 of the General Provisions limits obligations to 
no more than 20 percent during the last two months of the 
fiscal year.
    Section 115 of the General Provisions permits DOD to make 
available funds appropriated in prior years for new projects 
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 the transfer 
of expired funds to the ``Foreign Currency Fluctuations, 
Construction, Defense'' account.
    Section 119 of the General Provisions requires the 
Secretary of Defense to report annually on actions taken during 
the current fiscal year to encourage other member nations of 
the NATO, Japan, Korea, and United States allies in the Arabian 
Gulf to assume a greater share of defense costs.
    Section 120 of the General Provisions authorizes the 
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 the 
availability of funds to any entity that violates 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. New language proposed by the 
Administration is included.
    Section 124 of the General Provisions requires the 
Secretary of Defense to notify congressional defense committees 
of all family housing privatization solicitations and 
agreements which contain any clause providing consideration for 
base realignment and closure, force reductions, and extended 
deployments.
    Section 125 of the General Provisions provides transfer 
authority to the Homeowners Assistance Program. New language 
proposed by the Administration is included.
    Section 126 of the General Provisions requires that 
appropriations from this Act be the sole source of all 
operation and maintenance for flag and general officer quarter 
houses and limits the repair on these quarters to $35,000 per 
year. Language proposed by the Administration is not included.
    Section 127 of the General Provisions authorizes the Navy 
to use gift funds until September 30, 2006, to renovate the 
historic residences of the Marine Corps at 8th and I in 
Washington, D.C.
    Section 128 of the General Provisions rescinds $44,627,000 
from various accounts to reflect savings from favorable foreign 
currency fluctuations.
    Section 129 of the General Provisions limits funds from 
being transferred from this appropriation measure into any new 
instrumentality without authority from an appropriation Act.
    Section 130 of the General Provisions limits funds from 
being expended to prepare conveyance documents at the former 
Fort Ord in California, intended for use for housing 
development, as defined in the redevelopment plant for Fort 
Ord.
    Section 131 of the General Provisions transfers amounts 
appropriated for a physical fitness center at Camp Kyle, Korea, 
to a similar project at Camp Bonifas, Korea.

              House of Representatives Report Requirements

    The following items are included in accordance with various 
requirements of the rules of the House of Representatives.

                 Changes in Application of Existing Law

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill that directly or indirectly change the 
application of existing law.
    Language is included in various parts of the bill to 
continue on-going activities that 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.
    Language is included that enables various appropriations to 
remain available for more than one year for some programs for 
which the basic authority legislation does not presently 
authorize such extended availability.
    Language is included under Military Construction, Defense-
wide, which permits the Secretary of Defense to transfer funds 
to other accounts for military construction or family housing.
    Language is included under Military Construction, Defense-
wide, conditioning Department of Army's receipt of $84,400,000 
on notification that it is able to meet milestones for 
construction of chemical weapons destruction facilities.
    Language is included under Base Realignment and Closure 
Account, Part IV, limiting the amount of funds that shall be 
available solely for environmental restoration.
    Language is included under the General Provisions 
authorizing gift funds to be used to renovate the Marine Corps 
Barracks at 8th and I in Washington, D.C.
    Language is included in the General Provisions limiting 
funds from this appropriation measure from being transferred to 
any new government instrumentality without authority from an 
appropriation Act.
    Language is included in the General Provisions limiting 
funds from being expended to prepare conveyance documents at 
the former Fort Ord in California.
    Language is included in the General Provisions that 
transfers amounts appropriated for a physical fitness center at 
Camp Kyle, Korea, to a similar project at Camp Bonifas, Korea.

              Definition of 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), and by the Budget Enforcement 
Act of 1990 (Public Law 101-508), the following information 
provides the definitions of the terms ``program, project and 
activity'' for appropriations contained in the Military 
Construction Appropriations Act. The term ``program, project, 
and activity'' shall include the most specific level of budget 
items, identified in the Military Construction Appropriations 
Act, 2002, the accompanying House and Senate reports, and the 
conference report of the joint explanatory statement of the 
managers of the committee of conference.
    In carrying out any sequestrations, the Department of 
Defense (DOD) and related agencies shall carry forth the 
sequestration order in a manner that would not adversely affect 
or alter Congressional policies and priorities established for 
the DoD and the related agencies, and no program, project, and 
activity should be eliminated or reduced to a level of funding 
that would adversely affect DOD's ability to effectively 
continue any program, project, and activity.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law:

                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                  Appropriations
                                                    Last year of   Authorization   in last year   Appropriations
                  Agency/Program                   authorization       level            of         in this bill
                                                                                   authorization
----------------------------------------------------------------------------------------------------------------
Military Construction, Army......................          2002       $1,762.556      $1,762,556      $1,514,557
Military Construction, Navy......................          2002        1,126,633       1,126,633       1,245,765
Military Construction, Air Force.................          2002        1,237,580       1,237,580         964,302
Military Construction, Defense-wide..............          2002          806,278         806,278         901,066
Military Construction, Army National Guard.......          2002          405,565         405,565         159,672
Military Construction, Army National Guard.......          2002          253,386         253,386         119,613
Military Construction, Army Reserve..............          2002          167,019         167,019          99,059
Military Construction, Naval Reserve.............          2002           52,276          52,276          75,821
Military Construction, Air Force Reserve.........          2002           74,857          74,857          75,276
North Atlantic Treaty Organization Security                2002          162,600         162,600         168,200
 Investment Prog.................................
Family Housing Construction, Army................          2002          312,742         312,742         283,346
Family Housing Operation and Maintenance, Army...          2002        1,089,573       1,089,573       1,119,007
Family Housing Construction, Navy and Marine               2002          331,780         331,780         380,268
 Corps...........................................
Family Housing Operation and Maintenance, Navy             2002          910,095         910,095         867,788
 and Marine......................................
Family Housing Construction, Air Force...........          2002          550,703         550,703         689,824
Family Housing Operation and Maintenance, Air              2002          844,715         844,715         874,050
 Force...........................................
Family Housing Construction, Defense-wide........          2002              250             250           5,480
Family Housing Operation and Maintenance, Defense-         2002           43,762          43,762          42,395
 wide............................................
Department of Defense Family Housing Improvement           2002            2,000           2,000           2,000
 Fund............................................
Howeowners Assistance Fund, Defense..............          2002           10,119          10,119               0
Base Realignment and Closure.....................          2002          632,713         632,713         545,138
----------------------------------------------------------------------------------------------------------------

                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, a statement is required describing 
the transfer of funds provided in the accompanying bill. 
Sections 118, 120, 123, 125, and 129 of the General Provisions, 
and language included under ``Military Construction, Defense-
wide'' provide certain transfer authority.

                          Rescission of Funds

    In compliance with clause 3(f)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee recommends 
rescissions of:
          Military Construction, Army--$18,676,000
          Military Construction, Navy--$1,340,000
          Military Construction, Air Force--$10,281,000
          Military Construction, Defense-wide--$2,976,000
          Family Housing Construction, Army--$4,920,000
          Family Housing Construction, Navy--$2,652,000
          Family Housing Construction, Air Force--$8,782,000

                        Constitutional Authority

    Clause 3(d)(1) of rule XIII 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

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives requires an explanation of compliance with 
section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, which 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 of the Act for the most recently agreed to 
concurrent resolution on the budget for the fiscal year from 
the Committee's section of 302(a) allocation.

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   302(b) allocation                     This bill \1\
                                         -----------------------------------------------------------------------
                                          Budget authority       Outlays      Budget authority       Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary...........................            10,083            10,058            10,083            10,052
Mandatory...............................                 0                 0                 0                 0
----------------------------------------------------------------------------------------------------------------
\1\ Does not include scoring of the FY 2002 Supplemental.

                    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 table contains 
five-year projections associated with the budget authority 
provided in the accompanying bill:

                        [In thousands of dollars]

Budget authority, fiscal year 2003......................     $10,083,000
Outlays:
    2003................................................       2,703,000
    2004................................................       3,797,000
    2005................................................       2,225,000
    2006................................................         791,000
    2007 and beyond.....................................         522,000

    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 the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the financial assistance to 
State and local governments is as follows:

                        [In millions of dollars]

New budget authority....................................               0
Fiscal year 2001 outlays resulting therefrom............               0

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:
    There were no recorded votes.

                               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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