House Report 108-607 - MILITARY CONSTRUCTION APPROPRIATIONS BILL, 2005

[House Report 108-607]
[From the U.S. Government Publishing Office]

108th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 108-607

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

MILITARY CONSTRUCTION APPROPRIATIONS BILL, 2005

_______

July 15, 2004.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

_______

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

R E P O R T

[To accompany H.R. 4837]

The Committee on Appropriations submits the following
report in explanation of the accompanying bill making
appropriations for military construction, family housing, and
base realignment and closure for the Department of Defense for
the fiscal year ending September 30, 2005.

CONTENTS

Page
Purpose of the Bill.............................................. 2
Conformance With Authorization Bill.............................. 2
Summary of Committee Recommendation.............................. 2
General Statement................................................ 7
Budgetary Cap on Housing Privatization........................... 7
Sustainment, Restoration, and Modernization...................... 8
Military Construction:
Army......................................................... 9
Navy and Marine Corps........................................ 10
Air Force.................................................... 11
Defense-wide................................................. 12
Army National Guard.......................................... 13
Air National Guard........................................... 14
Army Reserve................................................. 14
Naval Reserve................................................ 15
Air Force Reserve............................................ 15
NATO Security Investment Program................................. 16
Family Housing Overview.......................................... 16
Family Housing:
Army......................................................... 18
Navy and Marine Corps........................................ 20
Air Force.................................................... 20
Defense-wide................................................. 21
Department of Defense Family Housing Improvement Fund............ 22
Homeowners Assistance Fund, Defense.............................. 22
Chemical Demilitarization Construction, Defense-wide............. 23
Base Realignment and Closure Account............................. 23
General Provisions............................................... 24
Changes in Application of Existing Law........................... 26
Definition of Program, Project and Activity...................... 26
Appropriations Not Authorized by Law............................. 27
Transfer of Funds................................................ 29
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
State List....................................................... 30

Purpose of the Bill

The Military Construction Appropriations bill provides
funds for planning, design, construction, alteration, and
improvement of facilities and 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
North Atlantic Treaty Organization Security Investment Program.
The bill also provides funds to execute projects identified by
the base realignment and closure authorities. Finally, the bill
provides funds for the Department of Defense Chemical
Demilitarization Construction program.

Conformance With Authorization Bill

On May 20, 2004, the House passed the National Defense
Authorization Act for 2005 (H.R. 4200) by a vote of 391 to 34.
At this time, conference action on the legislation has not
concluded; therefore, projects in this bill are approved
subject to authorization.

Summary of Committee Recommendation

The Committee recommends $10,003,000,000 in new budget
authority for the Military Construction Appropriations bill.
This recommendation is $449,625,000 above the President's
request and $162,139,000 above the fiscal year 2004 enacted
level. The following table compares amounts recommended in the
bill to the President's request and amounts appropriated in
fiscal year 2004:

General Statement

Several witnesses from the Army, Navy, Marine Corps, Air
Force, and the Office of the Secretary of Defense emphasized to
this Committee that we remain a nation at war. Current
operations relating to the Global War on Terrorism, including,
but not limited to Iraq and Afghanistan, combined with the
other security commitments of the United States and homeland
defense, place a great burden on the armed services. The
Committee believes the ultimate purpose of this bill is to
support our service men and women and their families.
The challenges to military infrastructure at this time are
numerous. The Secretary of Defense set the goal of achieving a
67-year recapitalization rate across all facilities by 2008,
but even at this rate, the Department will not bring facilities
up to an average readiness rating of C-2 until the end of
fiscal year 2010.
It is therefore with disappointment that the Committee
notes the continuing inadequacy of military construction budget
requests. As a percentage of the overall defense budget,
military construction and family housing expenditures have
declined since the mid-1990s. The Committee understands that
much of the growth in the defense budget in recent years has
been due to operations and maintenance costs related to the
Global War on Terrorism. At the same time, the Committee
believes that the relatively small amounts needed to build and
maintain good infrastructure and family housing yield
tremendous benefits in terms of readiness, quality of life, and
recruitment and retention rates of our service men and women.
Yet the Committee notes that the military construction budget
requests for the active and reserve components represent a cut
of $378,697,000 and $110,545,000, respectively, from the fiscal
year 2004 enacted level. Underfunding military construction
with the expectation that Congress will fill in the gaps is an
unwise and unsustainable budget strategy. The Committee is
encouraged by indications that more substantial increases in
military construction budget requests are forthcoming beginning
in fiscal year 2006, and will continue to scrutinize those
requests to ensure that those budgets are sufficiently matched
to the Department's goals.

Budgetary Cap on Housing Privatization

The Committee fully supports the Military Housing
Privatization Initiative (MHPI). Where it has been undertaken,
privatized family housing for service members and their loved
ones has dramatically improved the quality of life, resulting
in residencies that are commensurate with the sacrifices that
our service men and women are called on to make. By helping to
ensure that inadequate housing is eliminated by the end of the
decade, MHPI has a direct and positive impact on recruitment
and retention rates, which are crucial to maintaining the
excellence of the All Volunteer Force.
While the Committee believes that the services should
continue to rely on local housing markets as much as possible,
privatized military housing represents the next best option in
many cases. Before the end of this calendar year, the statutory
cap limiting total Federal government contributions to
$850,000,000 for privatized family housing will be reached.
Without legislative relief, MHPI will come to a halt,
endangering numerous planned housing projects. Unfortunately,
the Congressional Budget Office (CBO) has indicated that it
will score any such legislation differently than in the past,
rendering passage more difficult.
The Committee believes that CBO's approach is unmerited and
greatly exaggerates the financial risk to the Federal
government. While the Committee acknowledges the need for
fiscal discipline, especially in this time of budget deficits,
MHPI saves the Federal government money by leveraging private
capital. The average ratio of private to Federal dollars is
11:1. Without MHPI, much of the family housing that would
otherwise be built by leveraging private capital would
necessarily be funded through traditional construction
accounts. The inability to leverage private capital would
entail a great loss of efficiency and likely delay the
elimination of inadequate family housing well into the next
decade of budget cycles.
The Secretary of Defense has established a department-wide
goal of eliminating inadequate family housing by the end of
fiscal year 2007. Without MHPI, achieving this goal is nearly
impossible. The Committee therefore strongly supports current
efforts to raise or eliminate the budgetary cap on MHPI and
address scoring methodology changes proposed by CBO.

Sustainment, Restoration, and Modernization

The Committee continues to be concerned about the
inadequacy of sustainment, restoration, and modernization (SRM)
funds budgeted by the services. Although SRM funds are not
appropriated in this bill, the level of SRM funds requested,
enacted, and expended has a direct impact on the quality of all
Department of Defense facilities. While the services submitted
budgets that ostensibly fund 95 percent of the required SRM
level, the Committee is not confident this level will hold
through budget execution, primarily due to the migration of
funds to support underfunded base operations support accounts.
Nor does the Committee have confidence that all installations
will be treated equitably in the allocation of SRM funds.
All services use C-ratings to measure facility readiness,
with C-1 being the best and C-4 the worst. Although these
ratings are subject to slightly differing interpretations by
each service, it is fair to say that C-3 and C-4 ratings
negatively impact a facility's ability to effectively support
the mission. The Committee notes the percentages of C-3 and C-4
rated facilities as follows: 65 percent for the Army, 64
percent for the Navy, 50 percent for the Marine Corps, and 59
percent for the Air Force. Facilities in this shape have a
direct impact on men and women in uniform, undermining
readiness and endangering safety. The Committee therefore
strongly urges the Administration to fully fund both SRM and
base operating support for all services and ensure these levels
are maintained through budget execution.
The Department is directed to continue describing on form
1390 the backlog of SRM requirements at installations with
future construction projects. For troop housing requests, form
1391 should describe any SRM conducted in the past two years.
Likewise, future requirements for unaccompanied housing at the
corresponding installation should be included. 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. Such replacement can be up to current standards or
codes.
Interior arrangements and restorations may be
included as repair.
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.

Military Construction, Army

Fiscal year 2004 appropriation........................ $1,426,724,000
Fiscal year 2005 budget request....................... 1,771,285,000
Committee recommendation in the bill.................. 1,862,854,000
Comparison with:
Fiscal year 2004 appropriation.................... 436,130,000
Fiscal year 2005 budget request................... 91,569,000

The Committee recommends an appropriation of $1,862,854,000
for Military Construction, Army, for fiscal year 2005. This is
an increase of $436,130,000 above the fiscal year 2004 enacted
level and an increase of $91,569,000 above the budget request.
Alabama--Fort Rucker: Aircraft Maintenance Hangar.--Of the
amount provided for planning and design in this account, the
Committee directs that not less than $750,000 be made available
for the design of this facility.
California--Sierra Army Depot: Amedee Army Airfield Runway
Extension.--Of the amount provided for planning and design in
this account, the Committee directs that not less than $561,000
be made available for the design of this project.
Georgia--Fort Benning: Receptee Barracks Expansion.--Of the
amount provided for planning and design in this account, the
Committee directs that not less than $2,250,000 be made
available for the design of this facility.
Georgia--Fort Gordon: Law Enforcement Complex.--Of the
amount provided for planning and design in this account, the
Committee directs that not less than $310,000 be made available
for the design of this facility.
Kentucky--Bluegrass Depot: Consolidated Shipping Center.--
Of the amount provided for planning and design in this account,
the Committee directs that not less than $365,000 be made
available for the design of this facility.
North Carolina--Raleigh: Joint Forces Headquarters Armed
Forces Reserve Center.--The Committee recognizes the importance
of the North Carolina Joint Forces Headquarters Readiness
Center to the Army National Guard and requests the National
Guard Bureau to provide a status report on the planning and
design for this facility no later than February 1, 2005. The
committee also encourages the Department to consider including
this project in the next Future Year Defense Program.
Pennsylvania--Tobyhanna: Child Development Center.--Of the
amount provided for planning and design in this account, the
Committee directs that not less than $278,000 be made available
for the design of this facility.
Virginia--Fort A.P. Hill: Combined Arms Collective Training
Facility.--Of the amount provided for planning and design in
this account, the Committee directs that not less than $486,000
be made available for the design of this facility.
Virginia--Fort Belvoir: Access Roads.--Of the amount
provided for planning and design in this account, the Committee
directs that not less than $500,000 be made available for the
design of this project.
Army Aviation Restructuring and Revitalization.--The Army
announced on February 23, 2004 its intention to restructure and
revitalize the Army Aviation program. In addition to the
purchase of 800 new aircraft and the modernization of 1,400
helicopters, the plan envisions the transformation of the
Reserve component of Army Aviation. As a result of the
cancellation of the Comanche helicopter program, the
Administration submitted a budget amendment requesting the
reallocation of $30,000,000 from the Comanche program to the
Military Construction, Army National Guard account in fiscal
year 2005. The Committee understands that these funds are
intended to provide a head start on the Reserve component of
Army Aviation restructuring. The Committee, however, believes
that additional information is required to assess the impact of
Army Aviation restructuring on Army facilities. The Committee
therefore directs the Army to submit by September 10, 2004 a
report on future plans for Army Aviation Support Facilities and
all other projects required or affected by restructuring (e.g.,
runways). The report should include, for as many fiscal years
as information is available, the installations at which new or
modernized aircraft are to be delivered, the type of aircraft
and date of delivery, and the projected cost of associated
military construction.

Military Construction, Navy and Marine Corps

Fiscal year 2004 appropriation........................ $1,238,366,000
Fiscal year 2005 budget request....................... 1,060,455,000
Committee recommendation in the bill.................. 1,081,042,000
Comparison with:
Fiscal year 2004 appropriation.................... (157,324,000)
Fiscal year 2005 budget request................... 20,587,000

The Committee recommends an appropriation of $1,081,042,000
for Military Construction, Navy and Marine Corps, for fiscal
year 2005. This is a decrease of $157,324,000 below the fiscal
year 2004 enacted level and an increase of $20,587,000 above
the budget request.
California--Miramar MCAS: East Gate Physical Security.--Of
the amount provided for planning and design in this account,
the Committee directs that not less than $268,000 be made
available for the design of this project.
California--China Lake NAWC: Advanced Sensor Integration
Facility.--Of the amount provided for planning and design in
this account, the Committee directs that not less than $250,000
be made available for the design of this facility.
California--Naval Postgraduate School: Spanagel Hall.--The
Committee is aware the Navy is in the process of conducting a
space requirement for Spanagel Hall. The Navy is also in the
process of making a determination of whether replacement or
renovation of the existing facility is the right acquisition
approach. The Committee encourages the Navy to move this
project forward in an expeditious manner.
Florida--Jacksonville NAS: Construct Aircraft Parking Apron
(III).--Of the amount provided for planning and design in this
account, the Committee directs that not less than $150,000 be
made available for the design of this project.
Florida--Jacksonville NAS: Consolidated Operational Support
Facility.--Of the amount provided for planning and design in
this account, the Committee directs that not less than $150,000
be made available for the design of this facility.
Pennsylvania--Norfolk NSY Philadelphia DET: Improve Inside
Machine Shops.--Of the amount provided for planning and design
in this account, the Committee directs that not less than
$1,032,000 be made available for the design of this facility.
Energy Conservation.--In addition to energy conservation
programs for military construction projects funded through the
Energy Conservation Improvement program, the Department of
Defense has the authority to develop geothermal resources on
military lands and keep the proceeds from the sale of
electricity generated from those resources for use by the
Department, including military construction projects. The
Committee understands the Department of the Navy's Geothermal
Program Office is responsible for managing and developing these
resources for the military. The Committee encourages the Navy
to expand opportunities to use this authority for military
construction projects, such as the use of triple junction
amorphous silicon photovoltaic roofing. The Committee requests
the Navy to provide a report to the Committee on actions taken
to incorporate section 2867 of title 10 U.S.C. into the
military construction program no later than January 14, 2005.

Military Construction, Air Force

Fiscal year 2004 appropriation........................ $1,337,301,000
Fiscal year 2005 budget request....................... 663,964,000
Committee recommendation in the bill.................. 797,865,000
Comparison with:
Fiscal year 2004 appropriation.................... (539,436,000)
Fiscal year 2005 budget request................... 133,901,000

The Committee recommends an appropriation of $797,865,000
for Military Construction, Air Force, for fiscal year 2005.
This is a decrease of $539,436,000 below the fiscal year 2004
enacted level and an increase of $133,901,000 above the budget
request.
Florida--Cape Canaveral: Security Forces Operational
Facility.--Of the amount provided for planning and design in
this account, the Committee directs that not less than $880,000
be made available for the design of this facility.
Florida--MacDill AFB: CENTCOM Consolidation.--Of the amount
provided for planning and design in this account, the Committee
directs that not less than $8,000,000 be made available for the
design of this facility.
Idaho--Mountain Home AFB: Logistics Readiness Center.--Of
the amount provided for planning and design in this account,
the Committee directs that not less than $1,340,000 be made
available for the design of this facility.
Kansas--McConnell AFB: Consolidated Mobility Processing
Center.--Of the amount provided for planning and design in this
account, the Committee directs that not less than $1,332,000 be
made available for the design of this facility.
Nebraska--Offutt AFB: Repair Runway.--Of the amount
provided for planning and design in this account, the Committee
directs that not less than $497,000 be made available for the
design of this project.
Nevada--Nellis AFB: Fire and Crash Rescue Station.--Of the
amount provided for planning and design in this account, the
Committee directs that not less than $837,000 be made available
for the design of this facility.
North Dakota--Minot AFB: Dock 1 Multi-purpose Hangar
Project.--Of the amount provided for planning and design in
this account, the Committee directs that not less than $890,000
be made available for the design of this facility.
Washington--Fairchild AFB: Mission Support Complex.--Of the
amount provided for planning and design in this account, the
Committee directs that not less than $670,000 be made available
for the design of this facility.

Military Construction, Defense-wide

Fiscal year 2004 appropriation........................ $581,347,000
Fiscal year 2005 budget request....................... 709,337,000
Committee recommendation in the bill.................. 718,837,000
Comparison with:
Fiscal year 2004 appropriation.................... 137,490,000
Fiscal year 2005 budget request................... 9,500,000

The Committee recommends an appropriation of $718,837,000
for Military Construction, Defense-wide, for fiscal year 2005.
This is an increase of $137,490,000 above the fiscal year 2004
enacted level and an increase of $9,500,000 above the budget
request. Within this appropriation is $50,000,000 for the
Energy Conservation Improvement Program, the same as the fiscal
year 2004 level.
Use of Steel in Military Construction.--The Committee
understands the Department of Defense uses cold-formed steel
for the framing of both residential and non-residential
construction projects in tropical and coastal regions due to
steel's enhanced resistance to hurricanes, mold, rot and insect
problems that frequently occur in these areas. Steel framing,
which is produced domestically, may also hold other advantages
in terms of fire resistance and life cycle costs. The Committee
encourages the Department to explore opportunities for
expanding the use of steel to other regions for military
construction projects.
Use of Sustainable Design Standards by the Department of
Defense.--The Committee encourages the Department to utilize
sustainable building design and construction methods of
maximize the efficient use of renewable, recycled, and
environmentally sound materials. However, concerns have been
expressed that certain rating systems adopted by the Department
to assess the standards of sustainable design and construction
of facilities may unfairly discriminate against domestic
producers of wood construction products. Therefore, the
Committee requests the Secretary of Defense submit a report to
the Committee by June 1, 2005 that describes: (1) the standards
used by each military department to assess the use of
sustainable design and construction methods, including credits
provided for products made from renewable and recycled
materials; (2) the extent to which such standards comply with
the requirements of section 6002 of the Resource Conservation
and Recovery Act, section 6962 of title 42 U.S.C., Executive
Order 13101, Office of Management and Budget Circular A-119,
and other applicable requirements of law and regulation; and
(3) the extent to which the standards adopted by each military
department unfairly discriminate against the use of products
and materials manufactured in the United States. The Committee
expects the Secretary to take appropriate action to address any
noncompliance with applicable requirements of law or regulation
and any unfair discrimination against any U.S. manufactured
materials identified during the course of this review.
Water-Saving Technology.--The Committee is aware that the
Department of Defense has installed water-free urinals in some
new facilities. These devices may reduce a facility's cost to
taxpayers by reducing water and sewer bills, as well as
maintenance and repair costs. These devices also can yield
environmental and hygienic benefits. The Committee encourages
the Department to utilize this and other water-saving
technology when building or improving facilities.

Military Construction, Army National Guard

Fiscal year 2004 appropriation........................ $311,592,000
Fiscal year 2005 budget request....................... 295,657,000
Committee recommendation in the bill.................. 394,100,000
Comparison with:
Fiscal year 2004 appropriation.................... 82,508,000
Fiscal year 2005 budget request................... 98,443,000

The Committee recommends an appropriation of $394,100,000
for Military Construction, Army National Guard, for fiscal year
2005. This is an increase of $82,508,000 above the fiscal year
2004 enacted level and an increase of $98,443,000 above the
budget request.
Florida--Daytona Beach: Joint Armed Forces Reserve
Center.--Of the amount provided for planning and design in this
account, the Committee directs that not less than $789,000 be
made available for the design of this facility.
Indiana--Gary: Joint Armed Forces Reserve Center.--Of the
amount provided for planning and design in this account, the
Committee directs that not less than $844,000 be made available
for the design of this facility.
Mississippi--Camp Shelby: Wastewater Treatment Facility.--
Of the amount provided for unspecified minor construction in
this account, the Committee directs that not less than
$2,700,000 be made available for the construction of this
facility.
Nebraska--Lincoln: Joint Forces Headquarters.--Of the
amount provided for planning and design in this account, the
Committee directs that not less than $614,000 be made available
for the design of this facility.
North Carolina--Raleigh: Joint Forces Headquarters Armed
Forces Reserve Center.--The Committee recognizes the importance
of the North Carolina Joint Forces Headquarters Readiness
Center to the Army National Guard and requests the National
Guard Bureau to provide a status report on the planning and
design for this facility no later than February 1, 2005. The
Committee also encourages the Department to consider including
this project in the next Future Year Defense Program.
Pennsylvania--Hermitage: Readiness Center.--Of the amount
provided for planning and design in this account, the Committee
directs that not less than $485,000 be made available for the
design of this facility.
Tennessee--Nashville: Readiness Center Addition/Alteration
Phase II.--Of the amount provided for planning and design in
this account, the Committee directs that not less than
$1,999,000 be made available for the design of this facility.
Tennessee--Smyrna: Reserve Center.--Of the amount provided
for planning and design in this account, the Committee directs
that not less than $935,000 be made available for the design of
this facility.
Virginia--Winchester: Armory.--Of the amount provided for
planning and design in this account, the Committee directs that
not less than $530,000 be made available for the design of this
facility.
Washington--Gray Field: Aviation Readiness Center.--Of the
amount provided for planning and design in this account, the
Committee directs that not less than $2,014,000 be made
available for the design of this facility.

Military Construction, Air National Guard

Fiscal year 2004 appropriation........................ $222,908,000
Fiscal year 2005 budget request....................... 127,368,000
Committee recommendation in the bill.................. 180,533,000
Comparison with:
Fiscal year 2004 appropriation.................... (42,375,000)
Fiscal year 2005 budget request................... 53,165,000

The Committee recommends an appropriation of $180,533,000
for Military Construction, Air National Guard, for fiscal year
2005. This is a decrease of $42,375,000 below the fiscal year
2004 enacted level and an increase of $53,165,000 above the
budget request.
Alabama--Montgomery Regional Airport: Composite Operations
Training Facility.--Of the amount provided for planning and
design in this account, the Committee directs that not less
than $772,000 be made available for the design of this
facility.
Colorado--Greeley Airport: Space Warning System Squadron
Support Facility.--Of the amount provided for planning and
design in this account, the Committee directs that not less
than $509,000 be made available for the design of this
facility.
Illinois--Springfield: Base Entrance 183rd Fighter Wing.--
Of the amount provided for planning and design in this account,
the Committee directs that not less than $300,000 be made
available for the design of this project.
Iowa--Fort Dodge: Vehicle Maintenance and Communications
Training Facility.--Of the amount provided for planning and
design in this account, the Committee directs that not less
than $375,000 be made available for the design of this
facility.
Missouri--Rosencrans Airport: Fire and Crash Rescue
Station.--Of the amount provided for planning and design in
this account, the Committee directs that not less than $650,000
be made available for the design of this facility.
New York--Westhampton: Pararescue Complex.--Of the amount
provided for planning and design in this account, the Committee
directs that not less than $990,000 be made available for the
design of this facility.
New York--Stewart IAP: Replace Fire and Crash Rescue
Station.--Of the amount provided for planning and design in
this account, the Committee directs that not less than $501,000
be made available for the design of this facility.

Military Construction, Army Reserve

Fiscal year 2004 appropriation........................ $88,451,000
Fiscal year 2005 budget request....................... 87,070,000
Committee recommendation in the bill.................. 116,521,000
Comparison with:
Fiscal year 2004 appropriation.................... 28,070,000
Fiscal year 2005 budget request................... 29,451,000

The Committee recommends an appropriation of $116,521,000
for Military Construction, Army Reserve, for fiscal year 2005.
This is an increase of $28,070,000 above the fiscal year 2004
enacted level and an increase of $29,451,000 above the budget
request.
California--Garden Grove: Army Reserve Center/OMS/Unheated
Storage.--Of the amount provided for planning and design in
this account, the Committee directs that not less than $843,000
be made available for the design of this facility.

Military Construction, Naval Reserve

Fiscal year 2004 appropriation........................ $45,498,000
Fiscal year 2005 budget request....................... 25,285,000
Committee recommendation in the bill.................. 30,955,000
Comparison with:
Fiscal year 2004 appropriation.................... (14,543,000)
Fiscal year 2005 budget request................... 5,670,000

The Committee recommends an appropriation of $30,955,000
for Military Construction, Naval Reserve, for fiscal year 2005.
This is a decrease of $14,543,000 below the fiscal year 2004
enacted level and an increase of $5,670,000 above the budget
request.

Military Construction, Air Force Reserve

Fiscal year 2004 appropriation........................ $62,032,000
Fiscal year 2005 budget request....................... 84,556,000
Committee recommendation in the bill.................. 111,725,000
Comparison with:
Fiscal year 2004 appropriation...................... 49,693,000
Fiscal year 2005 budget request..................... 27,169,000

The Committee recommends an appropriation of $111,725,000
for Military Construction, Air Force Reserve, for fiscal year
2005. This is an increase of $49,693,000 above the fiscal year
2004 enacted level and an increase of $27,169,000 above the
budget request.
Ohio--Youngstown ARS: Joint Services Lodging Facility Phase
I.--Of the amount provided for planning and design in this
account, the Committee directs that not less than $954,000 be
made available for the design of this facility.

North Atlantic Treaty Organization Security Investment Program

Fiscal year 2004 appropriation........................ $161,300,000
Fiscal year 2005 budget request....................... 165,800,000
Committee recommendation in the bill.................. 165,800,000
Comparison with:
Fiscal year 2004 appropriation...................... 4,500,000
Fiscal year 2005 budget request..................... ................

The Committee recommends an appropriation of $165,800,000
for the North Atlantic Treaty Organization Security Investment
Program (NSIP). This is an increase of $4,500,000 above the
fiscal year 2004 enacted level and the same level as the budget
request.
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.
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 the Secretary of
Defense to notify the Committee 30 days prior to taking such
action.

Family Housing Overview

Fiscal year 2004 appropriation........................ $3,820,100,000
Fiscal year 2005 budget request....................... 4,171,596,000
Committee recommendation in the bill.................. 4,151,766,000
Comparison with:
Fiscal year 2004 appropriation...................... 331,666,000
Fiscal year 2005 budget request..................... (19,830,000)

The Committee recommends a total appropriation of
$4,151,766,000 for the family housing construction and
operation and maintenance accounts for fiscal year 2005. This
is an increase of $331,666,000 above the fiscal year 2004
enacted level and a decrease of $19,830,000 below the budget
request. The decrease below the request is within the operation
and maintenance accounts and is explained under general and
flag officer quarters and under the individual account
sections. The operation and maintenance accounts provide funds
to pay for maintenance and repair, furnishings, management,
services, utilities, leasing, interest, mortgage insurance, and
miscellaneous expenses.
Historically, housing for military personnel and their
families has been a low priority for the Department of Defense.
Consequently, the inventory is old and in many cases
substandard. In January 2001, the Department estimated that out
of 300,000 total housing units worldwide, approximately 180,000
(or 60 percent) were inadequate. The Committee is pleased to
note that progress has been made to reduce this percentage. At
the beginning of fiscal year 2004, the number of inadequate
units had been reduced to 120,000 (or 47 percent) of 256,000
total units. With the budget effort supported in this bill and
assuming the continuation of the Military Housing Privatization
Initiative (MHPI), the number of inadequate units will be
reduced to 61,000 by the end of fiscal year 2005. The Committee
fully approves the Secretary of Defense's goal to eliminate
inadequate housing by the end of fiscal year 2007, with the
exception of four Air Force installations in fiscal year 2008
and Air Force overseas housing in 2009.
Achieving that goal depends on two key factors. The first
is the continuation of the MHPI. The Committee has noted its
concern about the future of this program in the beginning of
this report. The second is the commitment of the services and
the Administration to request an increased level of funding for
fiscal years 2006 and 2007. The Committee strongly supports
continuation of MHPI and expects to see future budget requests
follow through on the commitment to eliminate inadequate
housing.
General and Flag Officer Quarters.--The Committee is
concerned by the often large expenditures on renovations and
repairs for general and flag officer quarters (GFOQ),
especially within the Navy and Marine Corps. A May 2004 General
Accounting Office (GAO) report indicated that, of the 13 cases
in which actual costs of major repair projects exceeding
$100,000 went over budget, all were Navy and Marine Corps
projects. The GAO report additionally found that 45 percent of
cost increases for Marine Corps major renovation projects that
exceeded budgets by 10 percent were ``customer driven,'' or
demanded by officers residing in those quarters. According to
the GAO report, housing officials indicated that, ``controlling
costs due to customer requests is directly related to a housing
officer's ability to say no to requests that could be perceived
as excessive and draw scrutiny upon the service.''
The Committee believes that, in order to arrest this
problem, the Navy and Marine Corps should ensure customer-
driven cost increases for GFOQ repair and renovation projects
are reviewed at the regional level before final approval. The
Committee notes that the overwhelming majority--93 percent--of
GFOQ repair and renovation projects reviewed by GAO across all
services were completed within budget, and commends the
services on their general performance.
In order to further improve such performance, the Committee
supports the recommendations of the House Armed Services
Committee for increasing congressional oversight of GFOQ
maintenance, including lowering the reporting threshold to
$20,000. In addition, the Committee reduced the family housing
operations and maintenance account for each service by the
following amounts: $2,400,000 for the Army, $8,200,000 for the
Navy and Marine Corps, and $230,000 for the Air Force. These
amounts represent the President's request for GFOQ repairs and
maintenance.
Family Housing Operations and Maintenance.--The Committee
is very concerned by the migration of funds among accounts and
sub-accounts within the services' family housing operations and
maintenance (O&M) accounts. In response to a Committee request,
the GAO reported in May 2004 that reprogramming of O&M funds is
frequent and substantial across all services, reaching levels
of 20, 40 and even 60 percent relative to the original
appropriation for individual accounts and sub-accounts. While
the sum of these reprogrammings did not reach the 10 percent
threshold required for congressional notification, the shifting
of funds is significant enough that the Committee believes
further information is necessary. The Committee therefore
directs each service to report to the Committee on
reprogramming of funds within family housing operations and
maintenance, including the net amount and percentage of funds
transferred into or out of each account and sub-account during
fiscal year 2004. This information should be provided no later
than the President's budget submission for fiscal year 2006,
and may be included with budget justification materials.
Inadequate Housing.--The fiscal year 2004 conference report
noted the lack of a uniform definition of ``inadequate''
housing covering all the services. The report also noted that
the lack of a uniform definition creates inequities between
services, between installations, and even among homes on the
same installation. The report accordingly directed the
Department of Defense to establish a uniform procedure for
identifying inadequate housing by October 1, 2003. The
Committee notes that as of the date of this report, no standard
has been instituted. While the Committee fully supports the
goal of eliminating inadequate housing by fiscal year 2007, no
military families should be left behind in the accomplishment.
This situation remains unacceptable and the Committee directs
the Secretary of Defense to report on the progress of its
efforts to form a standard definition of inadequate housing no
later than 30 days after the enactment of this Act.
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, 2005. Likewise, only 10 percent of funds made
available to the construction and operation and maintenance
sub-accounts may be transferred between the sub-accounts. Such
transfers must be reported to the Committee within 30 days of
such action.
Leasing Reporting Requirement.--As in prior years, the
Secretary of Defense is directed to report quarterly on the
details of all new or renewal domestic leases entered into
during the previous quarter that exceed $15,000 per unit per
year, including certification that less expensive housing was
not available for lease. For foreign leases, the Department is
directed to: (1) perform an economic analysis on all new leases
or lease/contract agreements where more than 25 units are
involved; (2) 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 (3) 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) apply to new
housing construction projects and improvement projects over
$2,000,000 as well.

Family Housing Construction, Army

Fiscal year 2004 appropriation........................ $289,440,000
Fiscal year 2005 budget request....................... 636,099,000
Committee recommendation in the bill.................. 636,099,000
Comparison with:
Fiscal year 2004 appropriation...................... 346,659,000
Fiscal year 2005 budget request..................... ................

The Committee recommends an appropriation of $636,099,000
for Family Housing Construction, Army, for fiscal year 2005.
This is an increase of $346,659,000 above the fiscal year 2004
enacted level and the same as the budget request. The
appropriation includes $394,900,000 to construct new family
housing units, $211,990,000 to improve existing units, and
$29,209,000 for planning and design. This funding level will
provide the budget request of $136,590,000 for the
privatization of family housing at 6 installations, and
supports the elimination of 12,076 inadequate family housing
units.
The Committee is very supportive of the Army's efforts to
secure the return of land at the former Fort Ord in order to
expand its RCI project at the Ord Military Community. The
Committee is pleased to note that the Army recently resolved
outstanding issues--save one--that will allow the Army to gain
control over the Fort Ord parcel known as the ``Stilwell
Kidney'' on which the Army can build military housing, as well
as enter into public-private partnership relations for
developing other civilian housing for government workers.
The Committee acknowledges that the terms of the Army's
agreement include 114 acre feet of surplus Army water that
shall be conveyed to the City of Seaside, California, of which
39 acre feet shall be used for development of workforce
housing. The Army is expected to build approximately 300 units
of housing for military families on the Kidney on land that
will be gifted back to the U.S. Government. The Army's LLC
partner, Clark Pinnacle, is required to provide water for and
to build (or contract out to build) 120 units of workforce
housing on the Kidney that will be made available on a
preferential basis to government and public employees. Further,
the Army with its LLC partner, will provide water for and build
(or contract out to build) a yet-to-be-determined number of
market rate houses on the Kideny--the final outstanding issue.
This market rate housing will be only in numbers as needed to
provide the financial wherewithal to underwrite the RCI units
on the Kidney but no more than 150 units. Prior to finalizing
the contract for this Kidney deal, the Committee directs Army
to submit to the Committee a final figure and justification on
the number of market rate units Army will build. The Committee
expects that water furnished to the market rate housing
development shall be only for the purpose of supporting housing
and only in the acre feet necessary to support those specified
units.

Family Housing Operation and Maintenance, Army

Fiscal year 2004 appropriation........................ $1,044,446,000
Fiscal year 2005 budget request....................... 928,907,000
Committee recommendation in the bill.................. 926,507,000
Comparison with:
Fiscal year 2004 appropriation...................... (117,939,000)
Fiscal year 2005 budget request..................... (2,400,000)

The Committee recommends an appropriation of $926,507,000
for Family Housing Operation and Maintenance, Army, for fiscal
year 2005. This is a decrease of $117,939,000 below the fiscal
year 2004 enacted level and a decrease of $2,400,000 below the
budget request. The decrease is to be taken from the
Maintenance and Real Property account for general and flag
officer quarters.

Family Housing Construction, Navy and Marine Corps

Fiscal year 2004 appropriation........................ $143,685,000
Fiscal year 2005 budget request....................... 139,107,000
Committee recommendation in the bill.................. 139,107,000
Comparison with:
Fiscal year 2004 appropriation.................... (4,578,000)
Fiscal year 2005 budget request................... ................

The Committee recommends an appropriation of $139,107,000
for Family Housing Construction, Navy and Marine Corps, for
fiscal year 2005. This is a decrease of $4,578,000 below the
fiscal year 2004 enacted level and the same as the budget
request. The appropriation includes $27,002,000 to construct
new family housing units and $112,105,000 to improve existing
units. This funding level will provide the budget request of
$102,105,000 for the privatization of family housing at 6
installations, and supports the elimination of 8,202 inadequate
family housing units.
The Committee is aware that the Navy has entered into
negotiations with a contractor team for the privatization of
family housing and potential divestiture of properties no
longer viable for continued Navy use within Navy Region
Northwest, including housing at Submarine Base, Bangor; Naval
Undersea Warfare Center, Keyport; Naval Magazine, Indian
Island; Naval Station, Bremerton; Olalla; Kingston; Bainbridge
Island; Fort Lawton; Magnolia (Quarters A); Brier; Naval Radio
Station, Jim Creek; and Naval Air Station, Whidbey Island. The
Committee is also aware that the Navy has agreed to consult
with the State Historic Preservation Officer and other
interested parties, including the City of Seattle to consider
the interests and concerns of surrounding neighborhoods and
local jurisdictions. The Committee supports the Navy's
commitment to work with all parties to achieve a mutually
beneficial outcome in maintaining Discovery Park as a regional
resource.

Family Housing Operation and Maintenance, Navy and Marine Corps

Fiscal year 2004 appropriation........................ $841,358,000
Fiscal year 2005 estimate............................. 704,504,000
Committee recommendation in the bill.................. 696,304,000
Comparison with:
Fiscal year 2004 appropriation.................... (145,054,000)
Fiscal year 2005 budget request................... (8,200,000)

The Committee recommends an appropriation of $696,304,000
for Family Housing Operation and Maintenance, Navy and Marine
Corps, for fiscal year 2005. This is a decrease of $145,054,000
below the fiscal year 2004 enacted level and a decrease of
$8,200,000 below the budget request. The decrease is to be
taken from the Maintenance of Real Property account for general
and flag officer quarters.

Family Housing Construction, Air Force

Fiscal year 2004 appropriation........................ $637,718,000
Fiscal year 2005 budget request....................... 846,959,000
Committee recommendation in the bill.................. 846,959,000
Comparison with:
Fiscal year 2004 appropriation.................... 209,241,000
Fiscal year 2005 budget request................... ................

The Committee recommends an appropriation of $846,959,000
for Family Housing Construction, Air Force, for fiscal year
2005. This is an increase of $209,241,000 above the fiscal year
2004 enacted level and the same as the budget request. The
appropriation includes $570,340,000 to construct new family
housing units, $238,353,000 to improve existing units, and
$38,266,000 for planning and design. The funding level will
provide the budget request of $82,863,000 for the privatization
of family housing at 6 installations, and supports the
elimination of 14,268 inadequate family housing units.

Family Housing Operation and Maintenance, Air Force

Fiscal year 2004 appropriation........................ $823,055,000
Fiscal year 2005 budget request....................... 863,896,000
Committee recommendation in the bill.................. 854,666,000
Comparison with:
Fiscal year 2004 appropriation.................... 31,611,000
Fiscal year 2005 budget request................... (9,230,000)

The Committee recommends an appropriation of $854,666,000
for Family Housing Operation and Maintenance, Air Force, for
fiscal year 2005. This is an increase of $31,611,000 above the
fiscal year 2004 enacted level and a decrease of $9,230,000
below the budget request. The decrease is to be taken as
follows: $230,000 from the Maintenance of Real Property account
for general and flag officer quarters, $2,500,000 from the
Furnishings account, and $6,500,000 from the Management
account. The Air Force requested an increase in the Management
account despite the fact that the total inventory of housing
units is expected to decrease by 14,268 units in fiscal year
2005, suggesting a 23 percent increase in the per unit
management cost. The Committee finds this increase unjustified
and the reduction in the Management account represents one-half
of the difference between the requested amount and the amount
that would be necessary without this per unit cost increase.
The Committee also finds that the per unit cost increase in the
Furnishings account is also unjustified, and the request also
has been accordingly reduced.

Family Housing Construction, Defense-wide

Fiscal year 2004 appropriation........................ $350,000
Fiscal year 2005 budget request....................... 49,000
Committee recommendation in the bill.................. 49,000
Comparison with:
Fiscal year 2004 appropriation.................... (301,000)
Fiscal year 2005 budget request................... ................

The Committee recommends an appropriation of $49,000 for
Family Housing Construction, Defense-wide, for fiscal year
2005. This is a decrease of $301,000 below the fiscal year 2004
enacted level and the same as the budget request. The
recommended amount is solely for the improvement of existing
units.

Family Housing Operation and Maintenance, Defense-wide

Fiscal year 2004 appropriation........................ $49,440,000
Fiscal year 2005 budget request....................... 49,575,000
Committee recommendation in the bill.................. 49,575,000
Comparison with:
Fiscal year 2004 appropriation.................... 135,000
Fiscal year 2005 budget request................... ................

The Committee recommends an appropriation of $49,575,000
for Family Housing Operation and Maintenance, Defense-wide, for
fiscal year 2005. This is an increase of $135,000 above the
fiscal year 2004 enacted level and the same as the budget
request.

Department of Defense Family Housing Improvement Fund

Fiscal year 2004 appropriation........................ $ (9,392,000)
Fiscal year 2005 budget request....................... 2,500,000
Committee recommendation in the bill.................. 2,500,000
Comparison with:
Fiscal year 2004 appropriation.................... 11,892,000
Fiscal year 2005 estimate......................... ................

The Committee recommends an appropriation of $2,500,000 for
the Department of Defense Family Housing Improvement Fund
(FHIF) for fiscal year 2005. This is an increase of $11,892,000
above the fiscal year 2004 enacted level and the same as the
budget request. The Military Construction Appropriations Act,
2004 (PL 108-132) appropriated $300,000 to the Fund while
rescinding $9,692,000 for a project that was no longer
required. The Department is directed to continue providing
quarterly status reports on each privatization project.
The FHIF is authorized by section 2883, title 10, United
States Code, and provides the Department of Defense with
authority to finance joint ventures with the private sector to
revitalize and to manage the Department's housing inventory.
The statute authorizes the Department to use limited
partnerships, make direct and guaranteed loans, and convey
Department-owned property to stimulate the private sector to
increase the availability of affordable, quality housing for
military personnel.
The FHIF is used to build or renovate family housing by
mixing or matching various legal authorities, and by utilizing
private capital and expertise to the maximum extent possible.
The Fund is administered as a single account without fiscal
year limitations and contains appropriated and transferred
funds from family housing construction accounts.

Homeowners Assistance Fund, Defense

The Committee recommends no appropriation for the
Homeowners Assistance Fund. The fund is financed by revenue
from the sale of acquired properties and prior year unobligated
balances. The total program estimate for fiscal year 2005 is
$11,542,373.
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 realignment and closure
(BRAC). A service member may access the fund if the value of
the home decreases due to 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.

Chemical Demilitarization Construction, Defense-wide

Fiscal year 2004 appropriation........................ $119,815,000
Fiscal year 2005 budget request....................... 81,886,000
Committee recommendation in the bill.................. 81,886,000
Comparison with:
Fiscal year 2004 appropriation.................... (37,929,000)
Fiscal year 2005 budget request................... ................

The Committee recommends an appropriation of $81,886,000
for Chemical Demilitarization Construction, Defense-wide, for
fiscal year 2005. This is a decrease of $37,929,000 below the
fiscal year 2004 enacted level and the same as the budget
request. The following chart displays the fiscal year 2005
increments included in the bill:

----------------------------------------------------------------------------------------------------------------
State/Installation Project Request Recommended
----------------------------------------------------------------------------------------------------------------
Colorado: Pueblo Depot Activity Ammunition Demilitarization $44,792,000 $44,792,000
Facility (Ph-VI)
Kentucky: Blue Grass Army Depot Ammunition Demilitarization 37,094,000 37,094,000
Facility (Ph-V)
-------------------------------
Total................................... ................................ 81,886,000 81,886,000
----------------------------------------------------------------------------------------------------------------

The Chemical Demilitarization Construction, Defense-wide
account provides funds for the design and construction of full-
scale chemical disposal facilities and associated projects to
upgrade installation support facilities and infrastructures
required to support the Chemical Demilitarization program.

Base Realignment and Closure Account

Fiscal year 2004 appropriation........................ $370,427,000
Fiscal year 2005 budget request....................... 246,116,000
Committee recommendation in the bill.................. 246,116,000
Comparison with:
Fiscal year 2004 appropriation.................... (124,311,000)
Fiscal year 2005 budget request................... ................

The Committee recommends an appropriation of $246,116,000
for the Base Realignment and Closure Account (BRAC) for fiscal
year 2005. This is a decrease of $124,311,000 below the fiscal
year 2004 enacted level and the same as the budget request. In
addition to the amount appropriated, the Department projects
revenues of $115,000,000 from the sale of land for a total
program level of $361,116,000.
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. The four BRAC
rounds netted savings of approximately $15,500,000,000 through
fiscal year 2001. The Department estimates the costs avoided
from fiscal year 2002 and beyond are approximately
$6,000,000,000 per year.
The Congress has appropriated a net total of
$22,706,132,000 for the BRAC program from fiscal years 1990
through 2004. Within this amount, the Department has allocated
$8,405,146,000 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.--A controlled burn at Fort Ord last
year burned out of control and scorched nearly three times as
much acreage as planned. The Committee encourages the Army to
use this unexpected opportunity to conduct additional
remediation activities as appropriate.

General Provisions

The Administration proposed eliminating several general
provisions enacted in P.L. 108-132, including sections 111,
113, 119, 122, 123, 126, 127, and 128. The Committee retains
each provision with the exception of 128, which established the
Commission on the Review of Overseas Military Facility
Structure of the United States.
The Administration proposed one new general provision
allowing funds in the Ford Island Improvement Account to be
appropriated and expended for the purposes specified in 10
U.S.C. 2814(i)(1) or until transferred pursuant to the
provisions 10 U.S.C. 2814(i)(3). The Committee did not include
this provision.
The Committee includes a new general provision to require
the Department to provide a written response to inquiries made
by the subcommittee within 21 days.
General Provisions included in the bill are as follows:
Section 101 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 permits the hire of passenger motor vehicles.
Section 103 permits funds to be expended on the
construction of defense access roads under certain
circumstances.
Section 104 prohibits construction of new bases in the
United States without a specific appropriation.
Section 105 limits the use of funds for the purchase of
land or land easements that exceed 100% of value.
Section 106 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 limits the use of minor construction funds to
be transferred or relocated from one installation to another.
Section 108 prohibits the procurement of steel unless
American producers, fabricators, and manufacturers have been
allowed to compete.
Section 109 limits appropriations from being used to pay
real property taxes in foreign nations.
Section 110 prohibits the use of funds to initiate a new
installation overseas without prior notification.
Section 111 establishes a preference for American
architectural and engineering services where the services are
in Japan, NATO member countries, and the Arabian Gulf.
Section 112 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 requires the Secretary of Defense to give prior
notice to Congress of military exercises where construction
costs exceed $100,000.
Section 114 limits obligations to no more than 20 percent
during the last two months of the fiscal year.
Section 115 permits DOD to make available funds
appropriated in prior years for new projects authorized during
the current session of Congress.
Section 116 permits the use of expired or lapsed funds to
pay the cost of supervision for any project being completed
with lapsed funds.
Section 117 provides that funds for military construction
projects are available until the end of the fourth fiscal year
following the fiscal year in which funds are appropriated,
subject to certain conditions.
Section 118 allows the transfer of expired funds to the
``Foreign Currency Fluctuations, Construction, Defense''
account. This provision has been included in every Military
Construction Appropriations Act since 1992. Once transferred
these funds become available for obligation until expended.
Scorekeeping rule 6 requires that extending expired balances be
scored as new appropriations in the year that they become
available.
Section 119 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 authorizes the transfer of proceeds from ``Base
Realignment and Closure Account, Part I'' to the continuing
Base Realignment and Closure accounts.
Section 121 permits the transfer of funds from Family
Housing, Construction accounts to the DOD Family Housing
Improvement Fund.
Section 122 limits the obligation of funds for Partnership
for Peace Programs.
Section 123 requires the Secretary of Defense to notify
Congressional Committees sixty days prior to issuing a
solicitation for a contract with the private sector for
military family housing.
Section 124 provides transfer authority to the Homeowners
Assistance Program.
Section 125 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 $20,000 per year without notification.
Section 126 limits funds from being transferred from this
appropriations measure to any instrumentality of the United
States Government without authority from an appropriation Act.
Section 127 prohibits funds appropriated for the NATO
Security Investment Program from being obligated or expended
for the purpose of missile defense studies.
Section 128 requires the Secretary of Defense or any other
official of the Department of Defense to respond in writing to
a question or inquiry submitted by the chairman or another
member of the subcommittee within 21 days.
Section 129 increases the limitation in 10 U.S.C.
2883(g)(1) on the amount of budget authority for the
privatization of military family housing to $1,350,000,000. The
section also provides that this section shall not be subject to
scoring for purposes of the Congressional Budget and
Impoundment Control Act of 1974.
Section 130 designates the fitness center at Homestead Air
Reserve Base, Florida, the Sam Johnson Fitness Center in honor
of the Honorable Sam Johnson.

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 raising the statutory cap on budget
authority for privatizing military family housing by
$500,000,000.
Language is included designating a fitness center at
Homestead Air Reserve Base, Florida.

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, 2003, 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 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:

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 114, 117, 119, 120, and 123 of the General Provisions,
and language included under ``Military Construction, Defense-
wide'' provide certain transfer authority.

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 Budget
authority Outlays authority Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary............................... 10,003 10,015 11,208 10,149
Mandatory................................... 0 0 0 0
----------------------------------------------------------------------------------------------------------------
\1\ The amount provided in this bill is $1,205 million above the 302(b) suballocation due to a Congressional
Budget Office (CBO) interpretation of the scoring of section 129. This section does not actually appropriate
funds; appropriated amounts in this bill are within the 302(b) suballocation. The Committee is working with
concerned parties to address CBO's scoring interpretation.

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 millions of dollars]

Budget authority, fiscal year 2005...................... $11,208
Outlays:
2005................................................ 2,592
2006................................................ 4,259
2007................................................ 3,226
2008................................................ 1,525
2009 and beyond..................................... 4,008

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.

State List

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