[House Report 108-774]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-774

======================================================================
 
 MAKING APPROPRIATIONS FOR THE DEPARTMENT OF HOMELAND SECURITY FOR THE 
     FISCAL YEAR ENDING SEPTEMBER 30, 2005, AND FOR OTHER PURPOSES

                                _______
                                

                October 9, 2004.--Ordered to be printed

                                _______
                                

Mr. Rogers of Kentucky, from the committee of conference, submitted the 
                               following

                           CONFERENCE REPORT

                        [To accompany H.R. 4567]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
4567) ``making appropriations for the Department of Homeland 
Security for the fiscal year ending September 30, 2005, and for 
other purposes'', having met, after full and free conference, 
have agreed to recommend and do recommend to their respective 
Houses as follows:

      That the House recede from its disagreement to the 
amendment of the Senate, and agree to the same with an 
amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert:
That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated, for the Department of 
Homeland Security for the fiscal year ending September 30, 
2005, and for other purposes, namely:

            TITLE I--DEPARTMENTAL MANAGEMENT AND OPERATIONS

            Office of the Secretary and Executive Management

      For necessary expenses of the Office of the Secretary of 
Homeland Security, as authorized by section 102 of the Homeland 
Security Act of 2002 (6 U.S.C. 112), and executive management 
of the Department of Homeland Security, as authorized by law, 
$85,034,000: Provided, That not to exceed $40,000 shall be for 
official reception and representation expenses.

              Office of the Under Secretary for Management

    For necessary expenses of the Office of the Under Secretary 
for Management, as authorized by sections 701-705 of the 
Homeland Security Act of 2002 (6 U.S.C. 341-345), $151,153,000: 
Provided, That not to exceed $3,000 shall be for official 
reception and representation expenses: Provided further, That 
of the total amount provided, $65,081,000 shall remain 
available until expended solely for the alteration and 
improvement of facilities, tenant improvements, and relocation 
costs to consolidate Department headquarters operations.

                 Office of the Chief Financial Officer

    For necessary expenses of the Office of the Chief Financial 
Officer, as authorized by section 103 of the Homeland Security 
Act of 2002 (6 U.S.C. 113), $13,000,000.

                Office of the Chief Information Officer

    For necessary expenses of the Office of the Chief 
Information Officer, as authorized by section 103 of the 
Homeland Security Act of 2002 (6 U.S.C. 113), and Department-
wide technology investments, $275,270,000; of which $67,270,000 
shall be available for salaries and expenses; and of which 
$208,000,000 shall be available for development and acquisition 
of information technology equipment, software, services, and 
related activities for the Department of Homeland Security, and 
for the costs of conversion to narrowband communications, 
including the cost for operation of the land mobile radio 
legacy systems, to remain available until expended: Provided, 
That none of the funds appropriated shall be used to support or 
supplement the appropriations provided for the United States 
Visitor and Immigrant Status Indicator Technology project or 
the Automated Commercial Environment.

                      Office of Inspector General

    For necessary expenses of the Office of Inspector General 
in carrying out the provisions of the Inspector General Act of 
1978 (5 U.S.C. App.), $82,317,000, of which not to exceed 
$100,000 may be used for certain confidential operational 
expenses, including the payment of informants, to be expended 
at the direction of the Inspector General.

          TITLE II--SECURITY, ENFORCEMENT, AND INVESTIGATIONS

                   BORDER AND TRANSPORTATION SECURITY

  Office of the Under Secretary for Border and Transportation Security

                         salaries and expenses

    For necessary expenses of the Office of the Under Secretary 
for Border and Transportation Security, as authorized by 
subtitle A of title IV of the Homeland Security Act of 2002 (6 
U.S.C. 201 et seq.), $9,617,000: Provided, That not to exceed 
$3,000 shall be for official reception and representation 
expenses.

    UNITED STATES VISITOR AND IMMIGRANT STATUS INDICATOR TECHNOLOGY

      For necessary expenses for the development of the United 
States Visitor and Immigrant Status Indicator Technology 
project, as authorized by section 110 of the Illegal 
Immigration Reform and Immigration Responsibility Act of 1996 
(8 U.S.C. 1221 note), $340,000,000, to remain available until 
expended: Provided, That of the funds appropriated under this 
heading, $254,000,000 may not be obligated for the United 
States Visitor and Immigrant Status Indicator Technology 
project until the Committees on Appropriations of the Senate 
and the House of Representatives receive and approve a plan for 
expenditure prepared by the Secretary of Homeland Security 
that:
            (1) meets the capital planning and investment 
        control review requirements established by the Office 
        of Management and Budget, including Circular A-11, part 
        7;
            (2) complies with the Department of Homeland 
        Security enterprise information systems architecture;
            (3) complies with the acquisition rules, 
        requirements, guidelines, and systems acquisition 
        management practices of the Federal Government;
            (4) is reviewed and approved by the Department of 
        Homeland Security Investment Review Board, the 
        Secretary of Homeland Security, and the Office of 
        Management and Budget; and
            (5) is reviewed by the Government Accountability 
        Office.

                     Customs and Border Protection

                         SALARIES AND EXPENSES

                    (INCLUDING RESCISSION OF FUNDS)

    For necessary expenses for enforcement of laws relating to 
border security, immigration, customs, and agricultural 
inspections and regulatory activities related to plant and 
animal imports; acquisition, lease, maintenance and operation 
of aircraft; purchase and lease of up to 4,500 (3,935 for 
replacement only) police-type vehicles; and contracting with 
individuals for personal services abroad; $4,534,119,000; of 
which $3,000,000 shall be derived from the Harbor Maintenance 
Trust Fund for administrative expenses related to the 
collection of the Harbor Maintenance Fee pursuant to section 
9505(c)(3) of the Internal Revenue Code of 1986 and 
notwithstanding section 1511(e)(1) of the Homeland Security Act 
of 2002 (6 U.S.C. 551(e)(1)); of which not to exceed $35,000 
shall be for official reception and representation expenses; of 
which not less than $131,436,000 shall be for Air and Marine 
Operations; of which not to exceed $156,162,000 shall remain 
available until September 30, 2006, for inspection and 
surveillance technology, unmanned aerial vehicles, and 
equipment for the Container Security Initiative; of which such 
sums as become available in the Customs User Fee Account, 
except sums subject to section 13031(f)(3) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 
58c(f)(3)), shall be derived from that account; of which not to 
exceed $150,000 shall be available for payment for rental space 
in connection with preclearance operations; of which not to 
exceed $1,000,000 shall be for awards of compensation to 
informants, to be accounted for solely under the certificate of 
the Under Secretary for Border and Transportation Security; and 
of which not to exceed $5,000,000 shall be available for 
payments or advances arising out of contractual or reimbursable 
agreements with State and local law enforcement agencies while 
engaged in cooperative activities related to immigration: 
Provided, That for fiscal year 2005, the aggregate overtime 
limitation prescribed in section 5(c)(1) of the Act of February 
13, 1911 (19 U.S.C. 267(c)(1)) shall be $35,000; and 
notwithstanding any other provision of law, none of the funds 
appropriated in this Act may be available to compensate any 
employee of the Bureau of Customs and Border Protection for 
aggregate overtime and premium pay, from whatever source, in an 
amount that exceeds such limitation, except in individual cases 
determined by the Under Secretary for Border and Transportation 
Security, or a designee, to be necessary for national security 
purposes, to prevent excessive costs, or in cases of 
immigration emergencies: Provided further, That of the total 
amount provided, $12,725,000 shall be for activities to enforce 
laws against forced child labor in fiscal year 2005, of which 
not to exceed $4,000,000 shall remain available until expended: 
Provided further, That none of the funds appropriated in this 
Act may be obligated to construct permanent Border Patrol 
checkpoints in the Bureau of Customs and Border Protection's 
Tucson sector: Provided further, That the Commissioner, Bureau 
of Customs and Border Protection, is directed to submit to the 
Committees on Appropriations of the Senate and the House of 
Representatives a plan for expenditure that includes location, 
design, costs, and benefits of each proposed Tucson sector 
permanent checkpoint: Provided further, That the Bureau of 
Customs and Border Protection shall relocate its tactical 
checkpoints in the Tucson sector at least an average of once 
every 14 days in a manner designed to prevent persons subject 
to inspection from predicting the location of any such 
checkpoint.
    In addition, of the funds appropriated under this heading 
in chapter 6 of title I of Public Law 108-11 (117 Stat. 583), 
$63,010,000 are rescinded.

                        AUTOMATION MODERNIZATION

    For expenses for customs and border protection automated 
systems, $449,909,000, to remain available until expended, of 
which not less than $321,690,000 shall be for the development 
of the Automated Commercial Environment: Provided, That none of 
the funds appropriated under this heading may be obligated for 
the Automated Commercial Environment until the Committees on 
Appropriations of the Senate and the House of Representatives 
receive and approve a plan for expenditure prepared by the 
Under Secretary for Border and Transportation Security that:
            (1) meets the capital planning and investment 
        control review requirements established by the Office 
        of Management and Budget, including Circular A-11, part 
        7;
            (2) complies with the Department of Homeland 
        Security's enterprise information systems architecture;
            (3) complies with the acquisition rules, 
        requirements, guidelines, and systems acquisition 
        management practices of the Federal Government;
            (4) is reviewed and approved by the Department of 
        Homeland Security Investment Review Board, the 
        Secretary of Homeland Security, and the Office of 
        Management and Budget; and
            (5) is reviewed by the Government Accountability 
        Office.

 AIR AND MARINE INTERDICTION, OPERATIONS, MAINTENANCE, AND PROCUREMENT

    For necessary expenses for the operations, maintenance, and 
procurement of marine vessels, aircraft, and other related 
equipment of the air and marine program, including operational 
training and mission-related travel, and rental payments for 
facilities occupied by the air or marine interdiction and 
demand reduction programs, the operations of which include the 
following: the interdiction of narcotics and other goods; the 
provision of support to Federal, State, and local agencies in 
the enforcement or administration of laws enforced by the 
Department of Homeland Security; and at the discretion of the 
Under Secretary for Border and Transportation Security, the 
provision of assistance to Federal, State, and local agencies 
in other law enforcement and emergency humanitarian efforts, 
$257,535,000, to remain available until expended: Provided, 
That no aircraft or other related equipment, with the exception 
of aircraft that are one of a kind and have been identified as 
excess to Bureau of Customs and Border Protection requirements 
and aircraft that have been damaged beyond repair, shall be 
transferred to any other Federal agency, department, or office 
outside of the Department of Homeland Security during fiscal 
year 2005 without the prior approval of the Committees on 
Appropriations of the Senate and the House of Representatives.

                              CONSTRUCTION

    For necessary expenses to plan, construct, renovate, equip, 
and maintain buildings and facilities necessary for the 
administration and enforcement of the laws relating to customs 
and immigration, $91,718,000, to remain available until 
expended.

                  Immigration and Customs Enforcement

                         SALARIES AND EXPENSES

    For necessary expenses for enforcement of immigration and 
customs laws, detention and removals, and investigations; and 
purchase and lease of up to 2,300 (2,000 for replacement only) 
police-type vehicles, $2,438,494,000, of which not to exceed 
$5,000,000 shall be available until expended for conducting 
special operations pursuant to section 3131 of the Customs 
Enforcement Act of 1986 (19 U.S.C. 2081); of which not to 
exceed $15,000 shall be for official reception and 
representation expenses; of which not to exceed $1,000,000 
shall be for awards of compensation to informants, to be 
accounted for solely under the certificate of the Under 
Secretary for Border and Transportation Security; of which not 
less than $102,000 shall be for promotion of public awareness 
of the child pornography tipline; of which not less than 
$203,000 shall be for Project Alert; and of which not to exceed 
$11,216,000 shall be available to fund or reimburse other 
Federal agencies for the costs associated with the care, 
maintenance, and repatriation of smuggled illegal aliens: 
Provided, That none of the funds appropriated shall be 
available to compensate any employee for overtime in an annual 
amount in excess of $35,000, except that the Under Secretary 
for Border and Transportation Security may waive that amount as 
necessary for national security purposes and in cases of 
immigration emergencies: Provided further, That of the total 
amount provided, $3,045,000 shall be for activities to enforce 
laws against forced child labor in fiscal year 2005, of which 
not to exceed $2,000,000 shall remain available until expended.

                          FEDERAL AIR MARSHALS

    For necessary expenses of the Federal Air Marshals, 
$662,900,000.

                       FEDERAL PROTECTIVE SERVICE

      The revenues and collections of security fees credited to 
this account, not to exceed $478,000,000, shall be available 
until expended for necessary expenses related to the protection 
of federally-owned and leased buildings and for the operations 
of the Federal Protective Service.

                        AUTOMATION MODERNIZATION

      For expenses of immigration and customs enforcement 
automated systems, $39,605,000, to remain available until 
expended: Provided, That none of the funds appropriated under 
this heading may be obligated until the Committees on 
Appropriations of the Senate and the House of Representatives 
receive and approve a plan for expenditure prepared by the 
Under Secretary for Border and Transportation Security that:
            (1) meets the capital planning and investment 
        control review requirements established by the Office 
        of Management and Budget, including Circular A-11, part 
        7;
            (2) complies with the Department of Homeland 
        Security enterprise information systems architecture;
            (3) complies with the acquisition rules, 
        requirements, guidelines, and systems acquisition 
        management practices of the Federal Government;
            (4) is reviewed and approved by the Department of 
        Homeland Security Investment Review Board, the 
        Secretary of Homeland Security, and the Office of 
        Management and Budget; and
            (5) is reviewed by the Government Accountability 
        Office.

                              CONSTRUCTION

      For necessary expenses to plan, construct, renovate, 
equip, and maintain buildings and facilities necessary for the 
administration and enforcement of the laws relating to customs 
and immigration, $26,179,000, to remain available until 
expended.

                 Transportation Security Administration

                           AVIATION SECURITY

    For necessary expenses of the Transportation Security 
Administration related to providing civil aviation security 
services pursuant to the Aviation and Transportation Security 
Act (Public Law 107-71; 115 Stat. 597), $4,323,523,000, to 
remain available until expended, of which not to exceed $3,000 
shall be for official reception and representation expenses: 
Provided, That of the total amount provided under this heading, 
not to exceed $2,049,173,000 shall be for passenger screening 
activities; not to exceed $1,452,460,000 shall be for baggage 
screening activities, of which $180,000,000 shall be available 
only for procurement of checked baggage explosive detection 
systems and $45,000,000 shall be available only for 
installation of checked baggage explosive detection systems; 
and not to exceed $821,890,000 shall be for airport security 
direction and enforcement presence: Provided further, That 
security service fees authorized under section 44940 of title 
49, United States Code, shall be credited to this appropriation 
as offsetting collections: Provided further, That, except as 
provided in the following proviso, the sum herein appropriated 
from the General Fund shall be reduced on a dollar-for-dollar 
basis as such offsetting collections are received during fiscal 
year 2005, so as to result in a final fiscal year appropriation 
from the General Fund estimated at not more than 
$2,500,523,000: Provided further, That the Government 
Accountability Office shall review, using a methodology deemed 
appropriate by the Comptroller General, the calendar year 2000 
cost information for screening passengers and property pursuant 
to section 44940(a)(2) of title 49, United States Code, of air 
carriers and foreign air carriers engaged in air transportation 
and intrastate air transportation and report the information 
within six months of enactment of the Act but no earlier than 
March 31, 2005, to the Committees on Appropriations of the 
Senate and House of Representatives; the House Transportation 
and Infrastructure Committee; and the Senate Committee on 
Commerce, Science, and Transportation: Provided further, That 
the Comptroller General, or any of the Comptroller General's 
duly authorized representatives, shall have access, for the 
purpose of reviewing such cost information, to the personnel 
and to the books; accounts; documents; papers; records 
(including electronic records); and automated data and files of 
such air carriers, airport authorities, and their contractors; 
that the Comptroller General deems relevant for purposes of 
reviewing the information sought pursuant to the provisions of 
the preceding proviso: Provided further, That the Comptroller 
General may obtain and duplicate any such records, documents, 
working papers, automated data and files, or other information 
relevant to such reviews without cost to the Comptroller 
General and the Comptroller General's right of access to such 
information shall be enforceable pursuant to section 716(c) of 
title 31, United States Code: Provided further, That the 
Comptroller General shall maintain the same level of 
confidentiality for information made available under the 
preceding provisos as that required under section 716(e) of 
title 31, United States Code: Provided further, That upon the 
request of the Comptroller General, the Secretary of the 
Department of Homeland Security shall transfer to the 
Government Accountability Office from appropriations available 
for administration expenses of the Transportation Security 
Administration, the amount requested by the Comptroller 
General, not to exceed $5,000,000, to cover the full costs of 
any review and report of the calendar year 2000 cost 
information conducted by the Comptroller General, with 15 days 
advance notice by the Transportation Security Administration to 
the Committees on Appropriations of the Senate and House of 
Representatives: Provided further, That the Comptroller General 
shall credit funds transferred under the authority of the 
preceding proviso to the account established for salaries and 
expenses of the Government Accountability Office, and such 
amount shall be available upon receipt and without fiscal year 
limitation to cover the full costs of the review and report: 
Provided further, That any funds transferred and credited under 
the authority of the preceding provisos that are not needed for 
the Comptroller General's performance of such review and report 
shall be returned to the Department of Homeland Security and 
credited to the appropriation from which transferred: Provided 
further, That beginning with amounts due in calendar year 2005, 
if the result of this review is that an air carrier or foreign 
air carrier has not paid the appropriate fee to the 
Transportation Security Administration pursuant to section 
44940(a)(2) of title 49 United States Code, the Secretary of 
Homeland Security shall undertake all necessary actions to 
ensure that such amounts are collected: Provided further, That 
such collections received during fiscal year 2005 shall be 
credited to this appropriation as offsetting collections and 
shall be available only for security modifications at 
commercial airports: Provided further, That if the Secretary 
exercises his discretion to set the fee under 44940(a)(2) of 
title 49 United States Code, such determination shall not be 
subject to judicial review: Provided further, That none of the 
funds in this Act shall be used to recruit or hire personnel 
into the Transportation Security Administration which would 
cause the agency to exceed a staffing level of 45,000 full-time 
equivalent screeners: Provided further, That notwithstanding 49 
U.S.C. 44923, the government's share of the cost for a project 
under any letter of intent shall be 75 percent for any medium 
or large hub airport.

                       MARITIME AND LAND SECURITY

    For necessary expenses of the Transportation Security 
Administration related to maritime and land transportation 
security grants and services pursuant to the Aviation and 
Transportation Security Act (Public Law 107-71; 115 Stat. 597), 
$48,000,000, to remain available until September 30, 2006.
    In addition, fees authorized by section 520 of Public Law 
108-90 shall be credited to this appropriation and shall be 
available until expended: Provided, That in fiscal year 2005, 
fee collections shall be used for initial administrative costs 
of credentialing activities.

                              INTELLIGENCE

    For necessary expenses for intelligence activities pursuant 
to the Aviation and Transportation Security Act (Public Law 
107-71; 115 Stat. 597), $14,000,000.

                        RESEARCH AND DEVELOPMENT

    For necessary expenses for research and development related 
to transportation security, $178,000,000, to remain available 
until expended: Provided, That of the total amount provided 
under this heading, $54,000,000 shall be available for the 
research and development of explosive detection devices.

                             ADMINISTRATION

      For necessary expenses for administrative activities of 
the Transportation Security Administration to carry out the 
Aviation and Transportation Security Act (Public Law 107-71; 
115 Stat. 597), $519,852,000, to remain available until 
September 30, 2006.

                       United States Coast Guard

                           OPERATING EXPENSES

      For necessary expenses for the operation and maintenance 
of the Coast Guard not otherwise provided for, purchase or 
lease of not to exceed 25 passenger motor vehicles for 
replacement only, payments pursuant to section 156 of Public 
Law 97-377 (42 U.S.C. 402 note) and section 229(b) of the 
Social Security Act (42 U.S.C. 429(b)), and recreation and 
welfare, $5,157,220,000, of which $1,204,000,000 shall be for 
defense-related activities; of which $24,500,000 shall be 
derived from the Oil Spill Liability Trust Fund to carry out 
the purposes of section 1012(a)(5) of the Oil Pollution Act of 
1990; and of which not to exceed $3,000 shall be for official 
reception and representation expenses: Provided, That none of 
the funds appropriated by this or any other Act shall be 
available for administrative expenses in connection with 
shipping commissioners in the United States: Provided further, 
That none of the funds provided by this Act shall be available 
for expenses incurred for yacht documentation under section 
12109 of title 46, United States Code, except to the extent 
fees are collected from yacht owners and credited to this 
appropriation: Provided further, That notwithstanding section 
1116(c) of title 10, United States Code, amounts made available 
under this heading may be used to make payments into the 
Department of Defense Medicare-Eligible Retiree Health Care 
Fund for fiscal year 2005 under section 1116(a) of such title.

                ENVIRONMENTAL COMPLIANCE AND RESTORATION

      For necessary expenses to carry out the Coast Guard's 
environmental compliance and restoration functions under 
chapter 19 of title 14, United States Code, $17,000,000, to 
remain available until expended.

                            RESERVE TRAINING

      For necessary expenses of the Coast Guard Reserve, as 
authorized by law; operations and maintenance of the reserve 
program; personnel and training costs; and equipment and 
services; $113,000,000.

              ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS

                    (INCLUDING RESCISSION OF FUNDS)

    For necessary expenses of acquisition, construction, 
renovation, and improvement of aids to navigation, shore 
facilities, vessels, and aircraft, including equipment related 
thereto; and maintenance, rehabilitation, lease and operation 
of facilities and equipment, as authorized by law, 
$982,200,000, of which $20,000,000 shall be derived from the 
Oil Spill Liability Trust Fund to carry out the purposes of 
section 1012(a)(5) of the Oil Pollution Act of 1990; of which 
$19,750,000 shall be available until September 30, 2009, to 
acquire, repair, renovate, or improve vessels, small boats, and 
related equipment; of which $2,500,000 shall be available until 
September 30, 2009, to increase aviation capability; of which 
$158,000,000 shall be available until September 30, 2007, for 
other equipment; of which $5,000,000 shall be available until 
September 30, 2007, for shore facilities and aids to navigation 
facilities; of which $73,000,000 shall be available for 
personnel compensation and benefits and related costs; and of 
which $723,950,000 shall be available until September 30, 2009, 
for the Integrated Deepwater Systems program: Provided, That 
the Commandant of the Coast Guard is authorized to dispose of 
surplus real property, by sale or lease, and the proceeds shall 
be credited to this appropriation as offsetting collections and 
shall be available until September 30, 2007, only for Rescue 
21: Provided further, That the Secretary of Homeland Security 
shall submit to the Congress, in conjunction with the 
President's fiscal year 2006 budget, a new Deepwater baseline 
that identifies revised acquisition timelines for each asset 
contained in the Deepwater program; a timeline and detailed 
justification for each new asset that is determined to be 
necessary to fulfill homeland and national security functions 
or multi-agency procurements as identified by the Joint 
Requirements Council; a detailed description of the revised 
mission requirements and their corresponding impact on the 
Deepwater program's acquisition timeline; and funding levels 
for each asset, whether new or continuing: Provided further, 
That the Secretary shall annually submit to the Congress, at 
the time that the President's budget is submitted under section 
1105(a) of title 31, a future-years capital investment plan for 
the Coast Guard that identifies for each capital budget line 
item--
            (1) the proposed appropriation included in that 
        budget;
            (2) the total estimated cost of completion;
            (3) projected funding levels for each fiscal year 
        for the next five fiscal years or until project 
        completion, whichever is earlier;
            (4) an estimated completion date at the projected 
        funding levels; and
            (5) changes, if any, in the total estimated cost of 
        completion or estimated completion date from previous 
        future-years capital investment plans submitted to the 
        Congress:
Provided further, That the Secretary shall ensure that amounts 
specified in the future-years capital investment plan are 
consistent to the maximum extent practicable with proposed 
appropriations necessary to support the programs, projects, and 
activities of the Coast Guard in the President's budget as 
submitted under section 1105(a) of title 31 for that fiscal 
year: Provided further, That any inconsistencies between the 
capital investment plan and proposed appropriations shall be 
identified and justified: Provided further, That consistent 
with the preceding provisos, the budget for fiscal year 2006 
that is submitted under section 1105(a) of title 31, United 
States Code, shall include an amount for the Coast Guard that 
is sufficient to fund delivery of a long-term maritime patrol 
aircraft capability that is consistent with the original 
procurement plan for the CN-235 aircraft beyond the three 
aircraft already funded in previous fiscal years.
    In addition, of the funds appropriated under this heading 
in Public Law 108-90, $16,000,000 are rescinded.

                         ALTERATION OF BRIDGES

    For necessary expenses for alteration or removal of 
obstructive bridges, $15,900,000, to remain available until 
expended.

              RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

    For necessary expenses for applied scientific research, 
development, test, and evaluation, and for maintenance, 
rehabilitation, lease and operation of facilities and 
equipment, as authorized by law, $18,500,000, to remain 
available until expended, of which $2,000,000 shall be derived 
from the Oil Spill Liability Trust Fund to carry out the 
purposes of section 1012(a)(5) of the Oil Pollution Act of 
1990: Provided, That there may be credited to and used for the 
purposes of this appropriation funds received from State and 
local governments, other public authorities, private sources, 
and foreign countries, for expenses incurred for research, 
development, testing, and evaluation.

                              RETIRED PAY

    For retired pay, including the payment of obligations 
otherwise chargeable to lapsed appropriations for this purpose, 
payments under the Retired Serviceman's Family Protection and 
Survivor Benefits Plans, payment for career status bonuses 
under the National Defense Authorization Act, and payments for 
medical care of retired personnel and their dependents under 
chapter 55 of title 10, United States Code, $1,085,460,000.

                      United States Secret Service

                         SALARIES AND EXPENSES

      For necessary expenses of the United States Secret 
Service, including purchase of not to exceed 610 vehicles for 
police-type use, which shall be for replacement only, and hire 
of passenger motor vehicles; purchase of American-made 
motorcycles; hire of aircraft; services of expert witnesses at 
such rates as may be determined by the Director; rental of 
buildings in the District of Columbia, and fencing, lighting, 
guard booths, and other facilities on private or other property 
not in Government ownership or control, as may be necessary to 
perform protective functions; payment of per diem or 
subsistence allowances to employees where a protective 
assignment during the actual day or days of the visit of a 
protectee requires an employee to work 16 hours per day or to 
remain overnight at his or her post of duty; conduct of and 
participation in firearms matches; presentation of awards; 
travel of Secret Service employees on protective missions 
without regard to the limitations on such expenditures in this 
or any other Act if approval is obtained in advance from the 
Committees on Appropriations of the Senate and the House of 
Representatives; research and development; grants to conduct 
behavioral research in support of protective research and 
operations; and payment in advance for commercial 
accommodations as may be necessary to perform protective 
functions; $1,172,125,000, of which not to exceed $25,000 shall 
be for official reception and representation expenses; of which 
not to exceed $100,000 shall be to provide technical assistance 
and equipment to foreign law enforcement organizations in 
counterfeit investigations; of which $2,100,000 shall be for 
forensic and related support of investigations of missing and 
exploited children; and of which $5,000,000 shall be a grant 
for activities related to the investigations of exploited 
children and shall remain available until expended: Provided, 
That up to $18,000,000 provided for protective travel shall 
remain available until September 30, 2006: Provided further, 
That of the total amount appropriated, not less than $5,000,000 
shall be available solely for the unanticipated costs related 
to security operations for National Special Security Events, to 
remain available until expended: Provided further, That the 
United States Secret Service is authorized to obligate funds in 
anticipation of reimbursements from agencies and entities, as 
defined in section 105 of title 5, United States Code, 
receiving training sponsored by the James J. Rowley Training 
Center, except that total obligations at the end of the fiscal 
year shall not exceed total budgetary resources available under 
this heading at the end of the fiscal year.

                           OPERATING EXPENSES

                         (RESCISSION OF FUNDS)

    Of the funds appropriated under this heading in chapter 6 
of title I of Public Law 108-11 (117 Stat. 581), $750,279 are 
rescinded.

     ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED EXPENSES

      For necessary expenses for acquisition, construction, 
repair, alteration, and improvement of facilities, $3,633,000, 
to remain available until expended.

                  TITLE III--PREPAREDNESS AND RECOVERY

   Office of State and Local Government Coordination and Preparedness

                     MANAGEMENT AND ADMINISTRATION

      For necessary expenses for the Office of State and Local 
Government Coordination and Preparedness, $3,546,000: Provided, 
That not to exceed $2,000 shall be for official reception and 
representation expenses.

                        STATE AND LOCAL PROGRAMS

    For grants, contracts, cooperative agreements, and other 
activities, including grants to State and local governments for 
terrorism prevention activities, notwithstanding any other 
provision of law, $3,086,300,000, which shall be allocated as 
follows:
            (1) $1,100,000,000 for formula-based grants and 
        $400,000,000 for law enforcement terrorism prevention 
        grants pursuant to section 1014 of the USA PATRIOT ACT 
        (42 U.S.C. 3714): Provided, That the application for 
        grants shall be made available to States within 45 days 
        after enactment of this Act; that States shall submit 
        applications within 45 days after the grant 
        announcement; and that the Office of State and Local 
        Government Coordination and Preparedness shall act 
        within 15 days after receipt of an application: 
        Provided further, That each State shall obligate not 
        less than 80 percent of the total amount of the grant 
        to local governments within 60 days after the grant 
        award.
            (2) $1,200,000,000 for discretionary grants, as 
        determined by the Secretary of Homeland Security, of 
        which--
                    (A) $885,000,000 shall be for use in high-
                threat, high-density urban areas, of which 
                $25,000,000 shall be available for assistance 
                to organizations (as described under section 
                501(c)(3) of the Internal Revenue Code of 1986 
                and exempt from tax section 501(a) of such 
                Code) as determined by the Secretary of 
                Homeland Security to be at high-risk of 
                international terrorist attack;
                    (B) $150,000,000 shall be for port security 
                grants, which shall be distributed under the 
                same terms and conditions as provided for under 
                Public Law 107-117;
                    (C) $5,000,000 shall be for trucking 
                industry security grants;
                    (D) $10,000,000 shall be for intercity bus 
                security grants; and
                    (E) $150,000,000 shall be for intercity 
                passenger rail transportation (as defined in 
                section 24102 of title 49, United States Code), 
                freight rail, and transit security grants:
        Provided, That no less than 80 percent of any grant 
        under this paragraph to a State shall be made available 
        by the State to local governments within 60 days after 
        the receipt of the funds: Provided further, That 
        section 1014(c)(3) of the USA PATRIOT ACT (42 U.S.C. 
        3714(c)(3)) shall not apply to grants under this 
        paragraph.
            (3) $50,000,000 shall be available for the 
        establishment of a technology transfer program: 
        Provided, That of the amount made available under this 
        paragraph, $10,000,000 is available to be used for 
        commercially-available equipment testing and validation 
        to determine appropriateness for inclusion in the 
        technology transfer program.
            (4) $336,300,000 for training, exercises, technical 
        assistance, and other programs:
Provided, That, none of the grants provided under this heading 
shall be used for the construction or renovation of facilities; 
except for a minor perimeter security project, not to exceed 
$1,000,000, as determined necessary by the Secretary of 
Homeland Security: Provided further, That the proceeding 
proviso shall not apply to grants under (2)(B) and (E) of this 
heading: Provided further, That grantees shall provide 
additional reports on their use of funds, as determined 
necessary by the Secretary of Homeland Security: Provided 
further, That funds appropriated for law enforcement terrorism 
prevention grants under paragraph (1) and discretionary grants 
under paragraph (2)(A) of this heading shall be available for 
operational costs, to include personnel overtime and overtime 
associated with Office of State and Local Government 
Coordination and Preparedness certified training, as needed: 
Provided further, That in accordance with the Department's 
implementation plan for Homeland Security Presidential 
Directive 8, the Office of State and Local Government 
Coordination and Preparedness shall provide State and local 
jurisdictions with nationally-accepted first responder 
preparedness levels no later than January 31, 2005; include in 
the fiscal year 2005 formula-based grant guidance guidelines 
for State and local jurisdictions to adopt national 
preparedness standards in fiscal year 2006; and issue final 
guidance on the implementation of the National Preparedness 
Goal no later than March 31, 2005: Provided further, That the 
fiscal year 2005 formula-based and law enforcement terrorism 
prevention grants under paragraph (1) shall be allocated in the 
same manner as fiscal year 2004.

                     FIREFIGHTER ASSISTANCE GRANTS

    For necessary expenses for programs authorized by the 
Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2201 
et seq.), $715,000,000, of which $650,000,000 shall be 
available to carry out section 33 (15 U.S.C. 2229) and 
$65,000,000 shall be available to carry out section 34 (15 
U.S.C. 2229a) of the Act, to remain available until September 
30, 2006: Provided, That not to exceed 5 percent of this amount 
shall be available for program administration.

                EMERGENCY MANAGEMENT PERFORMANCE GRANTS

    For necessary expenses for emergency management performance 
grants, as authorized by the National Flood Insurance Act of 
1968 (42 U.S.C. 4001 et seq.), the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 
the Earthquake Hazards Reductions Act of 1977 (42 U.S.C. 7701 
et seq.), and Reorganization Plan No. 3 of 1978 (5 U.S.C. 
App.), $180,000,000: Provided, That total administrative costs 
shall not exceed 3 percent of the total appropriation.

                         Counterterrorism Fund

    For necessary expenses, as determined by the Secretary of 
Homeland Security, to reimburse any Federal agency for the 
costs of providing support to counter, investigate, or respond 
to unexpected threats or acts of terrorism, including payment 
of rewards in connection with these activities, $8,000,000, to 
remain available until expended: Provided, That the Secretary 
shall notify the Committees on Appropriations of the Senate and 
the House of Representatives 15 days prior to the obligation of 
any amount of these funds in accordance with section 503 of 
this Act.

                  EMERGENCY PREPAREDNESS AND RESPONSE

 Office of the Under Secretary for Emergency Preparedness and Response

    For necessary expenses for the Office of the Under 
Secretary for Emergency Preparedness and Response, as 
authorized by section 502 of the Homeland Security Act of 2002 
(6 U.S.C. 312), $4,211,000.

            PREPAREDNESS, MITIGATION, RESPONSE, AND RECOVERY

    For necessary expenses for preparedness, mitigation, 
response, and recovery activities of the Directorate of 
Emergency Preparedness and Response, $239,499,000, including 
activities authorized by the National Flood Insurance Act of 
1968 (42 U.S.C. 4001 et seq.), the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 
the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7701 et 
seq.), the Federal Fire Prevention and Control Act of 1974 (15 
U.S.C. 2201 et seq.), the Defense Production Act of 1950 (50 
U.S.C. App. 2061 et seq.), sections 107 and 303 of the National 
Security Act of 1947 (50 U.S.C. 404, 405), Reorganization Plan 
No. 3 of 1978 (5 U.S.C. App.), and the Homeland Security Act of 
2002 (6 U.S.C. 101 et seq.): Provided, That of the total amount 
appropriated, $30,000,000 shall be for Urban Search and Rescue 
Teams, of which not to exceed 3 percent may be made available 
for administrative costs.

                           OPERATING EXPENSES

                         (RESCISSION OF FUNDS)

    Of the funds appropriated under this heading in chapter 6 
of title I of Public Law 108-11 (11 Stat. 581), $5,000,000 are 
rescinded.

                 ADMINISTRATIVE AND REGIONAL OPERATIONS

    For necessary expenses for administrative and regional 
operations of the Directorate of Emergency Preparedness and 
Response, $202,939,000, including activities authorized by the 
National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.), 
the Robert T. Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5121 et seq.), the Earthquake Hazards Reduction 
Act of 1977 (42 U.S.C. 7701 et seq.), the Federal Fire 
Prevention and Control Act of 1974 (15 U.S.C. 2201 et seq.), 
the Defense Production Act of 1950 (50 U.S.C. App. 2061 et 
seq.), sections 107 and 303 of the National Security Act of 
1947 (50 U.S.C. 404, 405), Reorganization Plan No. 3 of 1978 (5 
U.S.C. App.), and the Homeland Security Act of 2002 (6 U.S.C. 
101 et seq.): Provided, That not to exceed $3,000 shall be for 
official reception and representation expenses.

                         PUBLIC HEALTH PROGRAMS

    For necessary expenses for countering potential biological, 
disease, and chemical threats to civilian populations, 
$34,000,000.

              RADIOLOGICAL EMERGENCY PREPAREDNESS PROGRAM

    The aggregate charges assessed during fiscal year 2005, as 
authorized in title III of the Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1999 (42 U.S.C. 5196e), shall not be less 
than 100 percent of the amounts anticipated by the Department 
of Homeland Security necessary for its radiological emergency 
preparedness program for the next fiscal year: Provided, That 
the methodology for assessment and collection of fees shall be 
fair and equitable and shall reflect costs of providing such 
services, including administrative costs of collecting such 
fees: Provided further, That fees received under this heading 
shall be deposited in this account as offsetting collections 
and will become available for authorized purposes on October 1, 
2005, and remain available until expended.

                            DISASTER RELIEF

      For necessary expenses in carrying out the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.), $2,042,380,000, to remain available until 
expended.

            DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT

    For administrative expenses to carry out the direct loan 
program, as authorized by section 319 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5162), 
$567,000: Provided, That gross obligations for the principal 
amount of direct loans shall not exceed $25,000,000: Provided 
further, That the cost of modifying such loans shall be as 
defined in section 502 of the Congressional Budget Act of 1974 
(2 U.S.C. 661a).

                      FLOOD MAP MODERNIZATION FUND

    For necessary expenses pursuant to section 1360 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4101), 
$200,000,000, and such additional sums as may be provided by 
State and local governments or other political subdivisions for 
cost-shared mapping activities under section 1360(f)(2) of such 
Act, to remain available until expended: Provided, That total 
administrative costs shall not exceed 3 percent of the total 
appropriation.

                     NATIONAL FLOOD INSURANCE FUND

                     (INCLUDING TRANSFER OF FUNDS)

    For activities under the National Flood Insurance Act of 
1968 (42 U.S.C. 4001 et seq.), not to exceed $33,336,000 for 
salaries and expenses associated with flood mitigation and 
flood insurance operations; and not to exceed $79,257,000 for 
flood hazard mitigation, to remain available until September 
30, 2006, including up to $20,000,000 for expenses under 
section 1366 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4104c), which amount shall be available for transfer to 
the National Flood Mitigation Fund until September 30, 2006, 
and which amount shall be derived from offsetting collections 
assessed and collected pursuant to section 1307 of that Act (42 
U.S.C. 4014), and shall be retained and used for necessary 
expenses under this heading: Provided, That in fiscal year 
2005, no funds in excess of: (1) $55,000,000 for operating 
expenses; (2) $562,881,000 for agents' commissions and taxes; 
and (3) $30,000,000 for interest on Treasury borrowings shall 
be available from the National Flood Insurance Fund.

                     NATIONAL FLOOD MITIGATION FUND

      Notwithstanding subparagraphs (B) and (C) of subsection 
(b)(3), and subsection (f), of section 1366 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104c), $20,000,000, to 
remain available until September 30, 2006, for activities 
designed to reduce the risk of flood damage to structures 
pursuant to such Act, of which $20,000,000 shall be derived 
from the National Flood Insurance Fund.

                 national pre-disaster mitigation fund

      For a pre-disaster mitigation grant program pursuant to 
title II of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5131 et seq.), 
$100,000,000, to remain available until expended: Provided, 
That grants made for pre-disaster mitigation shall be awarded 
on a competitive basis subject to the criteria in section 
203(g) of such Act (42 U.S.C. 5133(g)), and notwithstanding 
section 203(f) of such Act, shall be made without reference to 
State allocations, quotas, or other formula-based allocation of 
funds: Provided further, That total administrative costs shall 
not exceed 3 percent of the total appropriation.

                       EMERGENCY FOOD AND SHELTER

      To carry out an emergency food and shelter program 
pursuant to title III of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11331 et seq.), $153,000,000, to 
remain available until expended: Provided, That total 
administrative costs shall not exceed 3.5 percent of the total 
appropriation.

TITLE IV--RESEARCH AND DEVELOPMENT, TRAINING, ASSESSMENTS, AND SERVICES

                  Citizenship and Immigration Services

      For necessary expenses for citizenship and immigration 
services, $160,000,000.

                Federal Law Enforcement Training Center

                         SALARIES AND EXPENSES

    For necessary expenses of the Federal Law Enforcement 
Training Center, including materials and support costs of 
Federal law enforcement basic training; purchase of not to 
exceed 117 vehicles for police-type use and hire of passenger 
motor vehicles; expenses for student athletic and related 
activities; the conduct of and participation in firearms 
matches and presentation of awards; public awareness and 
enhancement of community support of law enforcement training; 
room and board for student interns; a flat monthly 
reimbursement to employees authorized to use personal cell 
phones for official duties; and services as authorized by 
section 3109 of title 5, United States Code; $177,440,000, of 
which up to $36,174,000 for materials and support costs of 
Federal law enforcement basic training shall remain available 
until September 30, 2006; and of which not to exceed $12,000 
shall be for official reception and representation expenses: 
Provided, That the Center is authorized to obligate funds in 
anticipation of reimbursements from agencies receiving training 
sponsored by the Center, except that total obligations at the 
end of the fiscal year shall not exceed total budgetary 
resources available at the end of the fiscal year.

     ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED EXPENSES

    For acquisition of necessary additional real property and 
facilities, construction, and ongoing maintenance, facility 
improvements, and related expenses of the Federal Law 
Enforcement Training Center, $44,917,000, to remain available 
until expended: Provided, That the Center is authorized to 
accept reimbursement to this appropriation from government 
agencies requesting the construction of special use facilities.

           Information Analysis and Infrastructure Protection

                     MANAGEMENT AND ADMINISTRATION

    For salaries and expenses of the immediate Office of the 
Under Secretary for Information Analysis and Infrastructure 
Protection and for management and administration of programs 
and activities, as authorized by title II of the Homeland 
Security Act of 2002 (6 U.S.C. 121 et seq.), $132,064,000: 
Provided, That not to exceed $5,000 shall be for official 
reception and representation expenses.

                      ASSESSMENTS AND EVALUATIONS

    For necessary expenses for information analysis and 
infrastructure protection as authorized by title II of the 
Homeland Security Act of 2002 (6 U.S.C. 121 et seq.), 
$761,644,000, to remain available until September 30, 2006: 
Provided, That the Under Secretary for Information Analysis and 
Infrastructure Protection shall submit a report at the end of 
each quarter of the fiscal year to the Committees on 
Appropriations of the Senate and the House of Representatives 
on each sole-source contractual agreement entered into through 
the commitment of amounts available from funds appropriated 
under this heading by this or previous appropriations Acts, 
including the amount, recipient and purpose of the agreement.

                         Science and Technology

                     MANAGEMENT AND ADMINISTRATION

    For salaries and expenses of the immediate Office of the 
Under Secretary for Science and Technology and for management 
and administration of programs and activities, as authorized by 
title III of the Homeland Security Act of 2002 (6 U.S.C. 181 et 
seq.), $68,586,000: Provided, That not to exceed $3,000 shall 
be for official reception and representation expenses.

           RESEARCH, DEVELOPMENT, ACQUISITION, AND OPERATIONS

    For necessary expenses for science and technology research, 
including advanced research projects; development; test and 
evaluation; acquisition; and operations; as authorized by title 
III of the Homeland Security Act of 2002 (6 U.S.C. 181 et 
seq.), $1,046,864,000, to remain available until expended.

                      TITLE V--GENERAL PROVISIONS

    Sec. 501. No part of any appropriation contained in this 
Act shall remain available for obligation beyond the current 
fiscal year unless expressly so provided herein.
      Sec. 502. Subject to the requirements of section 503 of 
this Act, the unexpended balances of prior appropriations 
provided for activities in this Act may be transferred to 
appropriation accounts for such activities established pursuant 
to this Act: Provided, That balances so transferred may be 
merged with funds in the applicable established accounts and 
thereafter may be accounted for as one fund for the same time 
period as originally enacted.
    Sec. 503. (a) None of the funds provided by this Act, 
provided by previous appropriations Acts to the agencies in or 
transferred to the Department of Homeland Security that remain 
available for obligation or expenditure in fiscal year 2005, or 
provided from any accounts in the Treasury of the United States 
derived by the collection of fees available to the agencies 
funded by this Act, shall be available for obligation or 
expenditure through a reprogramming of funds that: (1) creates 
a new program; (2) eliminates a program, project, or activity; 
(3) increases funds for any program, project, or activity for 
which funds have been denied or restricted by the Congress; (4) 
proposes to use funds directed for a specific activity by 
either the House or Senate Committees on Appropriations for a 
different purpose; or (5) contracts out any functions or 
activities for which funds have been appropriated for Federal 
full-time equivalent positions; unless the Committees on 
Appropriations of the Senate and the House of Representatives 
are notified 15 days in advance of such reprogramming of funds.
    (b) None of the funds provided by this Act, provided by 
previous appropriation Acts to the agencies in or transferred 
to the Department of Homeland Security that remain available 
for obligation or expenditure in fiscal year 2005, or provided 
from any accounts in the Treasury of the United States derived 
by the collection of fees available to the agencies funded by 
this Act, shall be available for obligation or expenditure for 
programs, projects, or activities through a reprogramming of 
funds in excess of $5,000,000 or 10 percent, whichever is less, 
that: (1) augments existing programs, projects, or activities; 
(2) reduces by 10 percent funding for any existing program, 
project, or activity, or numbers of personnel by 10 percent as 
approved by the Congress; or (3) results from any general 
savings from a reduction in personnel that would result in a 
change in existing programs, projects, or activities as 
approved by the Congress; unless the Committees on 
Appropriations of the Senate and the House of Representatives 
are notified 15 days in advance of such reprogramming of funds.
    (c) Not to exceed 5 percent of any appropriation made 
available for the current fiscal year for the Department of 
Homeland Security by this Act or provided by previous 
appropriations Acts may be transferred between such 
appropriations, but no such appropriations, except as otherwise 
specifically provided, shall be increased by more than 10 
percent by such transfers: Provided, That any transfer under 
this section shall be treated as a reprogramming of funds under 
subsection (b) of this section and shall not be available for 
obligation unless the Committees on Appropriations of the 
Senate and the House of Representatives are notified 15 days in 
advance of such transfer.
     (d) Notifications pursuant to subsections (a), (b) and (c) 
of this subsection shall not be made later than June 30, except 
in extraordinary circumstances which imminently threaten the 
safety of human life or the protection of property.
    Sec. 504. Except as otherwise specifically provided by law, 
not to exceed 50 percent of unobligated balances remaining 
available at the end of fiscal year 2005 from appropriations 
for salaries and expenses for fiscal year 2005 in this Act 
shall remain available through September 30, 2006, in the 
account and for the purposes for which the appropriations were 
provided: Provided, That prior to the obligation of such funds, 
a request shall be submitted to the Committees on 
Appropriations of the Senate and the House of Representatives 
for approval in accordance with section 503 of this Act.
    Sec. 505. Funds made available by this Act for intelligence 
activities are deemed to be specifically authorized by the 
Congress for purposes of section 504 of the National Security 
Act of 1947 (50 U.S.C. 414) during fiscal year 2005 until the 
enactment of an Act authorizing intelligence activities for 
fiscal year 2005.
    Sec. 506. The Federal Law Enforcement Training Center shall 
establish an accrediting body, to include representatives from 
the Federal law enforcement community and non-Federal 
accreditation experts involved in law enforcement training, to 
establish standards for measuring and assessing the quality and 
effectiveness of Federal law enforcement training programs, 
facilities, and instructors.
    Sec. 507. None of the funds in this Act may be used to make 
a grant allocation, discretionary grant award, discretionary 
contract award, or to issue a letter of intent totaling in 
excess of $1,000,000 unless the Secretary of Homeland Security 
notifies the Committees on Appropriations of the Senate and 
House of Representatives at least 3 full business days in 
advance: Provided, That no notification shall involve funds 
that are not available for obligation.
    Sec. 508. Notwithstanding any other provision of law, no 
agency shall purchase, construct, or lease any additional 
facilities, except within or contiguous to existing locations, 
to be used for the purpose of conducting Federal law 
enforcement training without the advance approval of the 
Committees on Appropriations of the Senate and the House of 
Representatives, except that the Federal Law Enforcement 
Training Center is authorized to obtain the temporary use of 
additional facilities by lease, contract, or other agreement 
for training which cannot be accommodated in existing Center 
facilities.
    Sec. 509. The Director of the Federal Law Enforcement 
Training Center (FLETC) shall schedule basic and/or advanced 
law enforcement training at all four training facilities under 
FLETC's control to ensure that these training centers are 
operated at the highest capacity throughout the fiscal year.
    Sec. 510. None of the funds appropriated or otherwise made 
available by this Act may be used for expenses of any 
construction, repair, alteration, or acquisition project for 
which a prospectus, if required by the Public Buildings Act of 
1959, has not been approved, except that necessary funds may be 
expended for each project for required expenses for the 
development of a proposed prospectus.
    Sec. 511. For fiscal year 2005 and thereafter, none of the 
funds appropriated or otherwise made available by this Act 
shall be used to pursue or adopt guidelines or regulations 
requiring airport sponsors to provide to the Transportation 
Security Administration without cost building construction, 
maintenance, utilities and expenses, or space in airport 
sponsor-owned buildings for services relating to aviation 
security: Provided, That the prohibition of funds in this 
section does not apply to--
            (1) negotiations between the agency and airport 
        sponsors to achieve agreement on ``below-market'' rates 
        for these items, or
            (2) space for necessary security checkpoints.
    Sec. 512. None of the funds in this Act may be used in 
contravention of the applicable provisions of the Buy American 
Act (41 U.S.C. 10a et seq.).
      Sec. 513. The Secretary of Homeland Security is directed 
to research, develop, and procure certified systems to inspect 
and screen air cargo on passenger aircraft at the earliest date 
possible: Provided, That until such technology is procured and 
installed, the Secretary shall take all possible actions to 
enhance the known shipper program to prohibit high-risk cargo 
from being transported on passenger aircraft: Provided further, 
That the Secretary shall amend Security Directives and programs 
in effect on the date of enactment of this Act to, at a 
minimum, triple the percentage of cargo inspected on passenger 
aircraft.
    Sec. 514. The Commandant of the Coast Guard shall provide 
to the Congress each year, at the time that the President's 
budget is submitted under section 1105(a) of title 31, United 
States Code, a list of approved but unfunded Coast Guard 
priorities and the funds needed for each such priority in the 
same manner and with the same contents as the unfunded 
priorities lists submitted by the chiefs of other Armed 
Services.
    Sec. 515. (a) In General.--Chapter 449 of title 49, United 
States Code, is amended by inserting after section 44944 the 
following new section:

``Sec. 44945. Disposition of unclaimed money

    ``Notwithstanding section 3302 of title 31, unclaimed money 
recovered at any airport security checkpoint shall be retained 
by the Transportation Security Administration and shall remain 
available until expended for the purpose of providing civil 
aviation security as required in this chapter.''.
    (b) Annual Report.--Not later than 180 days after the date 
of enactment of this Act and annually thereafter, the 
Administrator of the Transportation Security Administration 
shall transmit to the Committee on Transportation and 
Infrastructure of the House of Representatives; the Committee 
on Appropriations of the House of Representatives; the 
Committee on Commerce, Science and Transportation of the 
Senate; and the Committee on Appropriations of the Senate, a 
report that contains a detailed description of the amount of 
unclaimed money recovered in total and at each individual 
airport, and specifically how the unclaimed money is being used 
to provide civil aviation security.
    (c) Clerical Amendment.--The analysis for chapter 449 of 
title 49, United States Code, is amended by adding the 
following new item after the item relating to section 44944:

``44945. Disposition of unclaimed money.''.
    Sec. 516. Notwithstanding section 3302 of title 31, United 
States Code, the Administrator of the Transportation Security 
Administration may impose a reasonable charge for the lease of 
real and personal property to Transportation Security 
Administration employees and for use by Transportation Security 
Administration employees and may credit amounts received to the 
appropriation or fund initially charged for operating and 
maintaining the property, which amounts shall be available, 
without fiscal year limitation, for expenditure for property 
management, operation, protection, construction, repair, 
alteration, and related activities.
    Sec. 517. The acquisition management system of the 
Transportation Security Administration shall apply to the 
acquisition of services, as well as equipment, supplies, and 
materials.
    Sec. 518. Notwithstanding any other provision of law, the 
authority of the Office of Personnel Management to conduct 
personnel security and suitability background investigations, 
update investigations, and periodic reinvestigations of 
applicants for, or appointees in, positions in the Office of 
the Secretary and Executive Management, the Office of the Under 
Secretary of Management, the Directorate of Science and 
Technology, and the Directorate of Information Analysis and 
Infrastructure Protection of the Department of Homeland 
Security is transferred to the Department of Homeland Security: 
Provided, That on request of the Department of Homeland 
Security, the Office of Personnel Management shall cooperate 
with and assist the Department in any investigation or 
reinvestigation under this section.
    Sec. 519. Section 312(g) of the Homeland Security Act of 
2002 (6 U.S.C. 192(g)) is amended to read as follows:
    ``(g) Termination.--The Homeland Security Institute shall 
terminate 5 years after its establishment.''.
    Sec. 520. Section 311(c)(2) of the Homeland Security Act of 
2002 (6 U.S.C. 191(c)(2)) is amended to read as follows:
            ``(2) Original appointments.--The original members 
        of the Advisory Committee shall be appointed to three 
        classes. One class of six shall have a term of 1 year, 
        one class of seven a term of 2 years, and one class of 
        seven a term of 3 years.''.
    Sec. 521. Notwithstanding any other provision of law, funds 
appropriated under paragraphs (1) and (2) of the State and 
Local Programs heading under title III of this Act are exempt 
from section 6503(a) of title 31, United States Code.
    Sec. 522. (a) None of the funds provided by this or 
previous appropriations Acts may be obligated for deployment or 
implementation, on other than a test basis, of the Computer 
Assisted Passenger Prescreening System (CAPPS II) or Secure 
Flight or other follow on/successor programs, that the 
Transportation Security Administration (TSA), or any other 
Department of Homeland Security component, plans to utilize to 
screen aviation passengers, until the Government Accountability 
Office has reported to the Committees on Appropriations of the 
Senate and the House of Representatives that--
            (1) a system of due process exists whereby aviation 
        passengers determined to pose a threat are either 
        delayed or prohibited from boarding their scheduled 
        flights by the TSA may appeal such decision and correct 
        erroneous information contained in CAPPS II or Secure 
        Flight or other follow on/successor programs;
            (2) the underlying error rate of the government and 
        private data bases that will be used both to establish 
        identity and assign a risk level to a passenger will 
        not produce a large number of false positives that will 
        result in a significant number of passengers being 
        treated mistakenly or security resources being 
        diverted;
            (3) the TSA has stress-tested and demonstrated the 
        efficacy and accuracy of all search tools in CAPPS II 
        or Secure Flight or other follow on/successor programs 
        and has demonstrated that CAPPS II or Secure Flight or 
        other follow on/successor programs can make an accurate 
        predictive assessment of those passengers who may 
        constitute a threat to aviation;
            (4) the Secretary of Homeland Security has 
        established an internal oversight board to monitor the 
        manner in which CAPPS II or Secure Flight or other 
        follow on/successor programs are being developed and 
        prepared;
            (5) the TSA has built in sufficient operational 
        safeguards to reduce the opportunities for abuse;
            (6) substantial security measures are in place to 
        protect CAPPS II or Secure Flight or other follow on/
        successor programs from unauthorized access by hackers 
        or other intruders;
            (7) the TSA has adopted policies establishing 
        effective oversight of the use and operation of the 
        system;
            (8) there are no specific privacy concerns with the 
        technological architecture of the system;
            (9) the TSA has, pursuant to the requirements of 
        section 44903 (i)(2)(A) of title 49, United States 
        Code, modified CAPPS II or Secure Flight or other 
        follow on/successor programs with respect to intrastate 
        transportation to accommodate States with unique air 
        transportation needs and passengers who might otherwise 
        regularly trigger primary selectee status; and
            (10) appropriate life-cycle cost estimates, and 
        expenditure and program plans exist.
    (b) During the testing phase permitted by paragraph (a) of 
this section, no information gathered from passengers, foreign 
or domestic air carriers, or reservation systems may be used to 
screen aviation passengers, or delay or deny boarding to such 
passengers, except in instances where passenger names are 
matched to a government watch list.
    (c) None of the funds provided in this or any previous 
appropriations Act may be utilized to develop or test 
algorithms assigning risk to passengers whose names are not on 
government watch lists.
    (d) None of the funds provided in this or any previous 
appropriations Act may be utilized to test an identity 
verification system that utilizes at least one database that is 
obtained from or remains under the control of a non-Federal 
entity until TSA has developed measures to determine the impact 
of such verification on aviation security and the Government 
Accountability Office has reported on its evaluation of the 
measures.
    (e) TSA shall cooperate fully with the Government 
Accountability Office, and provide timely responses to the 
Government Accountability Office requests for documentation and 
information.
    (f) The Government Accountability Office shall submit the 
report required under paragraph (a) of this section no later 
than March 28, 2005.
    Sec. 523. Section 835 of the Homeland Security Act of 2002 
(Public Law 107-296; 6 U.S.C. 395) is amended--
            (1) in subsection (a), by inserting before the 
        period ``, or any subsidiary of such an entity'';
            (2) in subsection (b)(1), by inserting ``before, 
        on, or'' after the ``completes'';
            (3) in subsection (c)(1)(B), by striking ``which is 
        after the date of enactment of this Act and''; and
            (4) in subsection (d), by striking ``homeland'' and 
        inserting ``national''.
    Sec. 524. None of the funds made available in this Act may 
be used to amend the oath of allegiance required by section 337 
of the Immigration and Nationality Act (8 U.S.C. 1448).
    Sec. 525. Notwithstanding any other provision of law, the 
fiscal year 2004 aggregate overtime limitation prescribed in 
subsection 5(c)(1) of the Act of February 13, 1911 (19 U.S.C. 
261 and 267) shall be $30,000.
    Sec. 526. Notwithstanding any other provision of law, 
notifications pursuant to section 503 of this Act or any other 
authority for reprogramming of funds shall be made solely to 
the Committees on Appropriations of the Senate and House of 
Representatives.
    Sec. 527. None of the funds appropriated by this Act may be 
used to process or approve a competition under Office of 
Management and Budget Circular A-76 for services provided as of 
June 1, 2004, by employees (including employees serving on a 
temporary or term basis) of Citizenship and Immigration 
Services of the Department of Homeland Security who are known 
as of that date as Immigration Information Officers, Contact 
Representatives, or Investigative Assistants.
    Sec. 528. None of the funds available in this Act shall be 
available to maintain the United States Secret Service as 
anything but a distinct entity within the Department of 
Homeland Security and shall not be used to merge the United 
States Secret Service with any other department function, cause 
any personnel and operational elements of the United States 
Secret Service to report to an individual other than the 
Director of the United States Secret Service, or cause the 
Director to report directly to any individual other than the 
Secretary of Homeland Security.
    This Act may be cited as the ``Department of Homeland 
Security Appropriations Act, 2005''.

    And the Senate agree to the same.

                                   Harold Rogers,
                                   Bill Young,
                                   Frank R. Wolf,
                                   Zach Wamp,
                                   Tom Latham,
                                   Jo Ann Emerson,
                                   Kay Granger,
                                   John E. Sweeney,
                                   Don Sherwood,
                                 Managers on the Part of the House.

                                   Thad Cochran,
                                   Ted Stevens,
                                   Arlen Specter,
                                   Pete V. Domenici,
                                   Mitch McConnell,
                                   Richard Shelby,
                                   Judd Gregg,
                                   Ben Nighthorse Campbell,
                                   Larry Craig,
                                Managers on the Part of the Senate.
                      JOINT EXPLANATORY STATEMENT

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 4567), making 
appropriations for the Department of Homeland Security (DHS) 
for the fiscal year ending September 30, 2005, and for other 
purposes, submit the following joint statement to the House and 
the Senate in explanation of the effects of the action agreed 
upon by the managers and recommended in the accompanying 
conference report.
      Senate Amendment: The Senate deleted the entire House 
bill after the enacting clause and inserted the Senate bill. 
The conference agreement includes a revised bill. Throughout 
the accompanying explanatory statement, the managers refer to 
the Committee and the Committees on Appropriations. Unless 
otherwise noted, in both instances, the managers are referring 
to the House Subcommittee on Homeland Security and the Senate 
Subcommittee on Homeland Security.
      The language and allocations contained in House Report 
108-541 and Senate Report 108-280 should be complied with 
unless specifically addressed to the contrary in the conference 
report and statement of managers. The statement of managers, 
while repeating some report language for emphasis, does not 
intend to negate the language referred to above unless 
expressly provided herein. In cases where both the House and 
Senate reports address a particular issue not specifically 
addressed in the conference report or joint statement of 
managers, the conferees have determined that the House report 
and Senate report are not inconsistent and are to be 
interpreted accordingly.
      In cases where the House or Senate report directs the 
submission of a report, such report is to be submitted to both 
the House and Senate Committees on Appropriations. Further, in 
a number of instances, House Report 108-541 and Senate Report 
108-280 direct agencies to report to the Committees by specific 
dates that have now passed. In those instances, and unless 
alternative dates are provided in the accompanying explanatory 
statement, agencies are directed to provide these reports to 
the House and Senate Committees on Appropriations no later than 
January 10, 2005.

            TITLE I--DEPARTMENTAL MANAGEMENT AND OPERATIONS

            Office of the Secretary and Executive Management

      The conferees agree to provide $85,034,000 instead of 
$80,227,000 as proposed by the House and $82,206,000 as 
proposed by the Senate. Funding shall be allocated as follows:

Immediate Office of the Secretary.......................      $2,141,000
Immediate Office of the Deputy Secretary................       1,112,000
Office of Security......................................      21,424,000
Chief of Staff..........................................       5,240,000
Executive Secretary.....................................       3,500,000
Special Assistant to the Secretary/Private Sector.......       3,781,000
Office for National Capital Region Coordination.........         688,000
Office of International Affairs.........................       1,200,000
Office of Public Affairs................................       8,120,000
Office of Legislative Affairs...........................       5,400,000
Office of General Counsel...............................      10,821,000
Office for Civil Rights and Civil Liberties.............      13,000,000
Citizenship and Immigration Services Ombudsman..........       3,546,000
Homeland Security Advisory Committee....................       1,287,000
Privacy Office..........................................       3,774,000
                    --------------------------------------------------------
                    ____________________________________________________
    Total...............................................      85,034,000

      Reductions have been made to individual offices within 
the Office of the Secretary and Executive Management because of 
large numbers of unfilled positions. The conferees believe that 
full-year funding is not necessary for salaries of employees 
that are not yet on board.

                      RECEPTION AND REPRESENTATION

      The conferees have provided not to exceed $40,000 for 
reception and representation expenses for the Office of the 
Secretary and Executive Management instead of not to exceed 
$45,000 as proposed by the House and not to exceed $50,000 as 
proposed by the Senate to be available for allocation within 
the Department. Separate reception and representation 
allowances have been provided directly to other departmental 
agencies.

                         BUDGET JUSTIFICATIONS

      For fiscal year 2006, the conferees direct that the 
Congressional budget justifications for all departmental 
offices be submitted in the same level of detail as the 
detailed table contained in the back of this report. These 
justifications should include detailed data and explanatory 
statements in support of each appropriations request, including 
tables that detail each departmental office's programs, 
projects, and activities for fiscal years 2005 and 2006. All 
funding and staffing changes for each individual office must be 
highlighted and explained, including separate discussions for 
personnel, compensation, and benefits; travel; training; and 
other services. The budget justifications should also include a 
table identifying the last year that authorizing legislation 
was provided by Congress for each program, project, or 
activity; the amount of the authorization; and the 
appropriation in the last year of the authorization.

                    CLASSIFIED BUDGET JUSTIFICATIONS

      Several components of the Department have classified 
programs that require preparation and submission of a separate 
classified budget justification document. These classified 
budget justification documents are to be submitted to the House 
and Senate Committees on Appropriations at the same time the 
unclassified budget justifications are transmitted.

                           OFFICE OF SECURITY

      The conferees agree to provide $21,424,000 instead of 
$21,824,000 as proposed by the House and $21,044,000 as 
proposed by the Senate. Sufficient funding has been provided 
within this appropriation for the Office of Security to rapidly 
process and adjudicate background investigations.

                CONSOLIDATION AND CO-LOCATION OF OFFICES

      The conferees direct the Department to regularly update 
the House and Senate Committees on Appropriations on office 
consolidations and co-location plans as discussed in the Senate 
report. The Department shall notify the Committees at least 10 
days prior to any public announcement of any changes to 
regional or field offices.

                               DETAILEES

      The conferees direct the Department to report to the 
House and Senate Committees on Appropriations on January 10, 
2005, and quarterly thereafter, on the number of detailees in 
the Department as well as those detailed to other executive and 
legislative agencies. These quarterly reports shall include the 
originating agency, salary, length of detail (including 
beginning and end dates), and purpose of each detail.

                       GENERAL AVIATION AIRPORTS

      The conferees direct the Secretary, in conjunction with 
the Transportation Security Administration and the Secret 
Service, to provide a report to the House and Senate Committees 
on Appropriations by March 1, 2005, on restoring access to 
Ronald Reagan Washington National Airport (DCA) and other 
general aviation airports within 15 miles of DCA for security-
qualified charter and general aviation operators.

           COUNTER MAN-PORTABLE AIR DEFENSE SYSTEMS (MANPADS)

      The conferees direct the Secretary to submit a report to 
the House and Senate Committees on Appropriations on the 
Counter MANPADS program as outlined by Section 530 of the 
Senate bill. The conferees do not agree to subsections (5) and 
(6) of the Senate bill. In lieu of these sections, the 
conferees expect the report to include an assessment of other 
technologies that have been evaluated by the Department that 
could be employed on commercial aircraft to address the threat 
posed by MANPADS.

                      TRANSPORTATION SECURITY PLAN

      The conferees direct the Secretary of Homeland Security, 
in consultation with the Secretary of Transportation, to 
develop, maintain, and submit to the House and Senate 
Committees on Appropriations no later than March 31, 2005, an 
integrated strategic transportation security plan. The plan 
shall identify and evaluate the United States transportation 
assets that need to be protected, set risk-based priorities for 
defending the assets identified, select the most practical and 
cost-effective ways of defending the assets identified, and 
assign transportation security roles and missions to the 
relevant federal, State, regional, and local authorities, and 
to the private sector. The conferees expect that future budget 
requests will be based on this integrated strategic 
transportation security plan. Should any part of this plan 
involve information that is properly classified under criteria 
established by Executive Order, that information shall be 
submitted separately in classified form.

                              DATA-MINING

      The conferees are concerned about the Department's 
possible use or development of data-mining technology. The 
conferees direct the DHS Privacy Officer, in consultation with 
the head of each Department of Homeland Security agency that is 
developing or using data-mining technology, to submit a report 
no later than 90 days after the end of fiscal year 2005 that 
provides: (1) a thorough description of the data-mining 
technology, the plans for use of such technology, the data that 
will be used, and the target dates for the deployment of the 
technology; (2) an assessment of the likely impact of the 
implementation of the technology on privacy and civil 
liberties; and (3) a thorough discussion of the policies, 
procedures, and guidelines that are to be developed and applied 
in the use of such technology for data-mining in order to 
protect the privacy and due process rights of individuals and 
to ensure that only accurate information is collected and used.

                              BUY AMERICAN

      The conferees include bill language prohibiting funds 
from being used in contravention of the applicable provisions 
of the Buy American Act. The House and Senate Committees on 
Appropriations expect to be notified when the Department 
deviates from this direction pursuant to permissible 
exceptions. The conferees direct the Inspector General to audit 
the Department's compliance with the Buy American Act and 
submit the report at the same time the President submits to 
Congress the budget for fiscal year 2006.
      The conferees direct the Secretary to issue a report to 
the Committees on Appropriations that describes the articles, 
materials, and supplies acquired by the Department during 
fiscal year 2005 that were manufactured outside of the United 
States as well as an itemized list of all waivers granted with 
respect to such articles, materials, or supplies under the Buy 
American Act. The report should include a summary of the total 
funds spent by the Department of Homeland Security on goods 
manufactured within the United States compared with funds spent 
on goods manufactured outside of the United States.

              Office of the Under Secretary for Management

      The conferees agree to provide $151,153,000 instead of 
$129,356,000 as proposed by the House and $175,579,000 as 
proposed by the Senate. The conferees have provided not to 
exceed $3,000 for reception and representation expenses instead 
of not to exceed $5,000 as proposed by the House. The Senate 
proposed no similar provision. Funding shall be allocated as 
follows:

Under Secretary for Management..........................      $1,434,000
Business Transformation Office..........................         920,000
Office of Procurement...................................       7,350,000
Office of Human Resources...............................       7,200,000
Office of Administration................................      27,270,000
Immigration Statistics..................................       5,898,000
Headquarters, Renovation and Relocation Expenses........      65,081,000
Human resources system..................................      36,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................     151,153,000

      The conferees have provided funding for the Offices of 
the Chief Financial Officer and the Chief Information Officer 
under separate accounts outside of the Office of the Under 
Secretary for Management, as proposed by the House. The Senate 
funded these two offices within the Office of the Under 
Secretary for Management.

                        INVESTMENT REVIEW BOARD

      Separate funding is not recommended for the Investment 
Review Board as proposed by the Senate. The House proposed 
$2,500,000. The conferees believe that the Department should 
continue to rely on its managers to establish, maintain, and 
support investment analysis and decision making, and to comply 
with statutory requirements.

                         OFFICE OF PROCUREMENT

      The conferees agree to provide $7,350,000 for the Office 
of Procurement within the Under Secretary for Management 
instead of $7,734,000 as a separate appropriation as proposed 
by the House and $7,024,000 as proposed by the Senate. Within 
this funding, the conferees direct the Chief Procurement 
Officer to hire five additional procurement staff instead of 
the nine staff proposed by the House.

                            DHS HEADQUARTERS

      The conferees agree to include $65,081,000 for the 
alteration and improvement of facilities, tenant improvements 
and relocation costs to consolidate Department headquarters 
operations as proposed by the House and Senate. The Department 
is directed to submit to the House and Senate Committees on 
Appropriations, no later than December 1, 2004, a facilities 
improvement and housing plan for the Nebraska Avenue Complex, 
NAC, Washington, DC, including: total cost of renovations and 
improvements for each Department-occupied building within NAC; 
by fiscal year, and including all out-year costs, the total 
cost for site and design, security upgrades and improvements, 
tenant improvements, and relocation costs; and, by building, a 
list of tenants including the total number of current and 
projected tenants. The Department is directed to notify the 
Committees 15 days prior to the obligation of funds. Such 
notification shall be consistent with the facilities 
improvement and housing plan.

                         HUMAN RESOURCES SYSTEM

      The conferees agree to provide $36,000,000 for the human 
resources system instead of $70,000,000 as proposed by the 
House and Senate. This funding shall be used for design, 
implementation, and program oversight of this new system in 
fiscal year 2005.

                           CONTRACT STAFFING

      The conferees direct the Department to report, no later 
than November 15, 2004, on the number of contract staff 
occupying positions budgeted to be filled by federal employees 
during fiscal year 2004 and projected for fiscal year 2005. 
This report should include the numbers of contract staff by 
component, and a plan, with milestones, for reducing its 
dependence on contract staff. The Department is directed to 
submit monthly updates on its progress against these milestones 
to the House and Senate Committees on Appropriations.

                          WORKING CAPITAL FUND

      The conferees direct the Department to issue a report by 
December 1, 2004, to the House and Senate Committees on 
Appropriations that identifies all centralized services, 
activities, and programs supported through the Working Capital 
Fund (WCF) in fiscal years 2004 and 2005. This report shall 
include a brief description of each activity, the basis for the 
pricing policy, the estimated cost for fiscal years 2004 and 
2005, and for any multi-year project, the total cost, scope, 
and schedule for completion. The report should also provide the 
total estimated cost of the activity by fiscal year and the 
estimated date for completion, the number of full-time federal 
employees funded in each activity, a list of each departmental 
organization that is allocating funds to the activity, and the 
funding each organization is providing in fiscal years 2004 and 
2005. Finally, the report should identify any cross-cutting 
initiatives or activities that benefit more than one 
organization that are not included in the WCF and explain the 
omission.
      The conferees expect all cross-cutting initiatives funded 
by multiple organizations for which funding has been approved 
by the Committees to be included in the WCF and the Committees 
are to be promptly notified of any additions, deletions, or 
changes that are made to the WCF during the fiscal year. Taxing 
departmental organizations for cross-cutting initiatives 
outside the WCF will not be approved by the House and Senate 
Committees on Appropriations. The conferees expect the 
Department to comply with reprogramming guidelines in the 
management of the WCF. The WCF is not to be used to support 
initiatives for which funding was requested in the budget and 
not approved when the appropriation was made.
      For fiscal year 2006, the same level of detailed 
information on the WCF is to be provided in the budget 
justification document submitted for the Departmental 
Operations account, with the corresponding information 
contained in the accounts for each organization that is funding 
the WCF.

                 Office of the Chief Financial Officer

      The conferees agree to provide $13,000,000 as proposed by 
the House instead of $14,670,000 as proposed by the Senate 
within the Office of the Under Secretary for Management. The 
conferees expect the Chief Financial Officer and Chief 
Information Officer to work closely together on key financial 
information technology modernizationprojects, such as the 
Electronically Managing Enterprise Resources for Government Efficiency 
and Effectiveness (eMerge 2) system.

                     MONTHLY REPORTING REQUIREMENTS

      The Department is directed to continue submitting to the 
House and Senate Committees on Appropriations a monthly budget 
execution report showing the status of obligations and costs 
for all components of the Department. The report should include 
the total obligational authority appropriated (new budget 
authority plus unobligated carryover), undistributed 
obligational authority, amount allotted, current year 
obligations, unobligated authority, beginning unexpended 
obligations, year-to-date costs, and ending unexpended 
obligations. This budget execution information is to be 
provided at the level of detail shown in the tables displayed 
at the end of this report for each departmental component and 
shall be submitted no later than 45 days after the close of 
each month.

                 FINANCIAL MANAGEMENT OF THE DEPARTMENT

      The conferees are concerned with the Department's 
execution of its financial responsibilities after numerous 
budgetary and management crises over the 18 months of the 
Department's existence, notably with the Bureau of Immigration 
and Customs Enforcement and the Transportation Security 
Administration. The Department and senior agency management are 
coping with major changes in the organizational environment, 
resources, and communication networks of new and radically 
expanding or changing agencies. It is, therefore, to be 
expected that the Department will experience direct and 
indirect costs and management problems as it integrates its 
agencies. The conferees also acknowledge that reconciling 
different systems and legacy accounting bureaucracies is 
difficult. Nonetheless, the conferees will not assent to a 
repeat of recent experience of shifting and multiple, last 
minute requests for funding relief, particularly when the 
Department and agencies can neither explain nor even fully 
understand their own financial condition. Such a level of 
uncertainty is inexplicable, and adversely affects the 
Department's ability to fulfill its missions and carry out 
Administration and Congressional policy.
      The conferees direct the Secretary and Department agency 
heads to devote the resources and managerial energy required to 
ensure that basic financial control and transparency in 
accounting are achieved, and avoid the waste and disruption 
caused by failure to carry out this fundamental management 
function. The conferees expect that agencies will establish 
baseline budgets and reconcile their financial records and 
accounting systems to provide sufficient information to the 
Department's Chief Financial Officer (CFO) to permit a clear 
understanding of financial resources available as well as 
existing and upcoming liabilities. The conferees further direct 
that the CFO include in the monthly budget execution report an 
update on the status of steps underway to improve financial 
management in critical agencies. Finally, the conferees expect 
that the Secretary and CFO will strive to ensure that required 
financial audits of the Department's components are conducted 
in a timely fashion and with full cooperation of agency 
personnel.

         TRANSPORTATION SECURITY ADMINISTRATION REPROGRAMMINGS

      The conferees are concerned that the Department of 
Homeland Security has submitted numerous reprogramming for the 
Transportation Security Administration (TSA) to the House and 
Senate Committees on Appropriations that TSA cannot fully 
explain and justify. In fiscal year 2004, three TSA 
reprogrammings were submitted. For each of these 
reprogrammings, TSA was unable to provide timely and consistent 
data to answer specific questions about the need for these 
actions. For instance, when the Department's reprogramming 
letter states that ``. . . $42,200,000 will be used to fund 
screener professional development to increase retention, and to 
cover higher benefit costs and increased supervision costs'', 
the conferees expect TSA to readily explain the dollars for 
each of these three items. Similarly, TSA has been unable to 
provide an accurate annual estimate for a variety of 
requirements, such as maintenance costs, and salaries and 
expenses, which has led to repeated reprogramming requests for 
additional funds to cover these activities throughout the year, 
at the expense of other TSA or Department programs. This causes 
the conferees to question the competency of TSA's estimating 
capabilities. Therefore, the conferees direct that the 
Department institute financial controls to enable TSA to live 
within its resource limitations to negate or minimize the need 
for reprogrammings. If a reprogramming is necessary for fiscal 
year 2005, it should provide sufficient basic information for 
it to be properly considered by the Committees and each 
specific funding increase and decrease should be fully 
explained and justified.

                              GRANT AWARDS

      The conferees are disappointed with the Department's pace 
for awarding homeland security grants, including grants for 
port security, intercity bus security, hazardous materials, 
pre-disaster mitigation, and funds for urban search and rescue 
teams. The conferees direct the Department to prepare a report 
by December 15, 2004, that lays out an expeditious and 
responsible schedule for making grants and awards for the funds 
made available by this Act, as well as for any prior year funds 
that remain available for obligation.

                Office of the Chief Information Officer

      The conferees agree to provide $275,270,000 for the 
Office of the Chief Information Officer (CIO) and Department-
Wide Technology Investments. Of this funding, $67,270,000 shall 
be for salaries and expenses and $208,000,000 for Department-
Wide Technology Investments. The House proposed $60,139,000 for 
the CIO and $211,000,000 for Department-Wide Technology 
Investments. The Senate proposed $68,396,000 for the CIO and 
$222,000,000 for Department-Wide Technology Investments. 
Funding shall be allocated in accordance with the funding 
recommendations detailed in the following table:

Salaries and Expenses...................................     $67,270,000
    Office of the Chief Information Officer.............      64,270,000
    Wireless Program, Salaries and Expenses.............       3,000,000
Information Technology Services.........................      91,000,000
    Enterprise Architecture & Portal Technology.........      13,000,000
    Geospatial mapping..................................       8,000,000
    Human Resources.....................................      21,000,000
    EMerge2.............................................      49,000,000
Security Activities.....................................      31,000,000
    Federal terrorist watch list integration............      10,000,000
    Enterprise Architecture.............................       9,000,000
    HS IT evaluation program (extra & intra net)........      12,000,000
Wireless Program........................................      86,000,000
    Replace legacy border components....................      16,000,000
    New investments in radio infrastructure borders.....      52,000,000
    Infrastructure optimization & upgrade...............      18,000,000
    SAFECOM*............................................             ---
                    --------------------------------------------------------
                    ____________________________________________________
        Total...........................................     275,270,000

*Funded under the Science and Technology Directorate.
---------------------------------------------------------------------------

        FINANCIAL INFORMATION TECHNOLOGY MODERNIZATION PROJECTS

      The conferees expect the CFO and CIO to work closely 
together on key financial information technology modernization 
projects, such as the eMerge 2 system.

                   GEOSPATIAL INFORMATION MANAGEMENT

      The conferees agree to provide $8,000,000 to create a 
Department-wide Geospatial Information System (E-GIS) 
capability under the direction of the CIO and direct the 
Secretary to create the Geospatial Management Office (GMO) 
within the CIO's office to oversee this activity. The GMO will 
be responsible for coordinating geospatial information needs, 
requirements, and other related spatial data activities that 
support the E-GIS capability defined by the GMO. The GMO will 
provide clear and concise policy direction across the 
Department needed for an E-GIS geospatial information 
capability. The conferees expect the GMO to guide the 
development and execution of the implementation plan for the 
geospatial enablement of the Department's mission systems. The 
CIO's office is directed to report to the House and Senate 
Committees on Appropriations by December 1, 2004, on a date by 
which the GMO will be established and operational and on the 
outline of the implementation plan.

                  PROGRAM, PROJECT AND ACTIVITY PLANS

      The conferees request the CIO to revise its report of 
April 20, 2004, on program, project and activity plans as 
directed within the Senate report. This revision should be 
submitted to the House and Senate Committees on Appropriations 
no later than February 8, 2005.
      The conferees further direct the CIO to submit to the 
House and Senate Committees on Appropriations by February 8, 
2005, a detailed program plan describing the scope, total 
estimated cost, cost by year, and the schedule for completion, 
including significant milestones, for each individual project 
currently underway and funded for fiscal year 2005 for 
information technology services, security activities, and 
wireless programs. This report should include the specified 
subject areas and associated level of detail as directed in the 
House report.

     WIRELESS PUBLIC SAFETY INTEROPERABLE COMMUNICATIONS (SAFECOM)

      The conferees agree to provide $11,000,000 for SAFECOM in 
the Science and Technology Directorate as proposed by the 
House. The Senate proposed funding of $11,000,000 for SAFECOM 
under the Department-Wide Technology Investments account.

                 Department-Wide Technology Investments

      The conferees have deleted a separate appropriation for 
Department-Wide Technology Investments and have included this 
funding with the Office of the Chief Information Officer.

                      Office of Inspector General

      The conferees agree to provide $82,317,000 as proposed by 
the House and the Senate. Within the amounts provided, the 
Inspector General should continue to fund its portion of the 
Department's yearly financial audit at the same level as 
provided in fiscal year 2004.
      The conferees direct the Inspector General to forward 
copies of all audit reports to the House and Senate Committees 
on Appropriations immediately after they are released and to 
make the Committees aware of any significant budgetary savings. 
The Inspector General is directed to withhold from public 
distribution for 15 days any final audit or investigation 
requested by the Committees.

          TITLE II--SECURITY, ENFORCEMENT, AND INVESTIGATIONS

                   Border and Transportation Security

  Office of the Under Secretary for Border and Transportation Security

                         Salaries and Expenses

      The conferees agree to provide $9,617,000, instead of 
$10,371,000 as proposed by the House and $8,864,000 as proposed 
by the Senate. The conferees also provide that not to exceed 
$3,000 is available for official representation and reception 
expenses. Neither the House nor the Senate bills contained this 
provision.

                      DENT--IAFIS INTEROPERABILITY

      The conferees are troubled by the security gap on the 
nation's borders caused by delays in linking the Automated 
Biometrics Identification System (IDENT), the fingerprint 
database managed by Customs and Border Protection (CBP) and US 
Visitor and Immigrant Status Indicator Technology (US-VISIT), 
with criminal history data contained in the Federal Bureau of 
Investigation's Integrated Automated Fingerprint Identification 
System (IAFIS). The conferees understand that by the end of 
calendar year 2004, interoperability will exist at airports, 
seaports, and the largest and busiest Border Patrol stations 
and land ports of entry. CBP and Immigration and Customs 
Enforcement (ICE) locations will not be completed until 
December 31, 2005. With implementation of a new visa tracking 
system and enrollment of millions of visitors into US-VISIT, it 
is essential that the Directorate of Border and Transportation 
Security collaborate with the Federal Bureau of Investigation 
to ensure that IDENT can retrieve, in real time, biometric 
information contained in the IAFIS database, and that the IAFIS 
database can retrieve, in real time, biometric information 
contained in IDENT.
      The conferees direct the Department to fund the full cost 
to achieve real time interoperability between these systems 
from the US-VISIT Appropriation, and direct the Under Secretary 
for Border and Transportation Security (BTS) to report, not 
later than 90 days after enactment of this Act, on the status 
of this effort, including steps the Department will take to 
integrate IAFIS into IDENT, funds needed, and a timetable for 
full integration. This report should address recommendations in 
the March, 2004 Department of Justice Inspector General report, 
which documented the need to integrate existing biometric 
databases.

                        CARGO CONTAINER SECURITY

      Over the past 3 years, Congress has provided over 
$200,000,000 for innovative programs designed to ensure safe 
and secure shipment of containerized goods from their initial 
point of loading to their final place of delivery in the United 
States, including Operation Safe Commerce (OSC), the Container 
Security Initiative (CSI), and the Customs-Trade Partnership 
Against Terrorism (C-TPAT). The conferees direct the Under 
Secretary for Border and Transportation Security to report to 
the House and Senate Committees on Appropriations no later than 
February 8, 2005, on the history, implementation, funding, and 
progress of the Department's cargo container security efforts. 
The report should identify: (1) steps the Department has taken 
to enhance shipping container security; (2) resources devoted 
to this in prior years and proposed to continue this security; 
(3) results of ongoing projects such as OSC, CSI, and C-TPAT; 
(4) the Departmental entity responsible for implementing 
improvements in security systems and approaches; and (5) 
specific steps each entity will take to implement these 
changes, with associated schedules for development and issuance 
of standards, policies, procedures, or regulations. In 
addition, the report should address the security of in-bond 
shipments as referenced within the House report.

      COORDINATION OF AVIATION AND MARINE OPERATIONS AND PLANNING

      The conferees strongly support the rationalization of the 
air and marine assets and organizations within the Department, 
and anticipate that the recent decision to transfer the Office 
of Air and Marine Operations (AMO) from ICE to CBP will serve 
to improve the ability of the Department and BTS to more 
effectively conduct their various homeland security, law 
enforcement, and related missions. With the presence of three 
significant aviation and maritime assets, facilities, and 
organizations within the Department, two within BTS, it is 
essential that those operations be coordinated both to gain the 
maximum benefits for the Department and related missions and 
support functions, as well as achieve efficiency and reduce 
redundancies from shared facilities and services.
      It is therefore more important than ever that BTS submit 
the detailed AMO modernization and recapitalization plan as 
directed by the conferees in fiscal year 2004, and as indicated 
in the report submitted to Congress in March, 2004, entitled 
``Role in Securing the Homeland.'' That report provided an 
overview of AMO current missions, priorities, and plans, as 
well as plans for future acquisitions and operational efforts. 
However, it did not describe resources and timetables for 
procurement and organizational change. Although the report said 
that actual spending plans would be included in 
themodernization plan to follow, no plan has been submitted. Similarly, 
the report only provided a total of on-board staff (1,017 of 1,215 
positions authorized) not the detailed, multi-year staffing plan 
requested.
      The ongoing review by the Joint Requirements Council and 
Aviation Management Council of DHS missions, requirements, and 
opportunities for strategic sourcing appears to have been a 
factor in the decision to transfer AMO. The conferees direct 
the Department to advise the House and Senate Committees on 
Appropriations on the status of the Department's review, and 
submit the final results of the study as soon as they become 
available.
      The conferees expect to be provided the details involved 
in integrating air and marine operations within BTS, and direct 
the Under Secretary for Border and Transportation Security, in 
consultation with the U.S. Interdiction Coordinator, to submit 
a report to the House and Senate Committees on Appropriations 
no later than February 15, 2005, on: (1) specific actions taken 
or planned to rationalize and coordinate air and marine assets 
and operations within CBP, including organizational structure; 
(2) plans for modernizing the air and marine assets of CBP, 
including staffing plans, in the detail specified in House 
Report 108-280; (3) a cost/benefit analysis of retrofitting the 
existing P-3 fleet to extend the useful life of these aircraft; 
and (4) the multiple air and marine missions of CBP, including 
their relation to Coast Guard operations.

    United States Visitor and Immigrant Status Indicator Technology

      The conferees agree to provide $340,000,000 as proposed 
by both the House and the Senate. Of these funds, $86,000,000 
is available for program management and operations, and 
$254,000,000 is subject to the requirement for a detailed 
expenditure plan, as proposed by the House. Funds are available 
until expended.
      The conferees continue to require a detailed expenditure 
plan and expect it to display detail greater than that provided 
for fiscal years 2003 and 2004. Such plans must reflect clear 
cost/benefit analyses associated with the increments being 
proposed for funding.

                     Customs and Border Protection

                         SALARIES AND EXPENSES

                    (INCLUDING RESCISSION OF FUNDS)

      The conferees agree to provide $4,534,119,000 for Customs 
and Border Protection (CBP), instead of $4,612,441,000 as 
proposed by the House and $4,615,960,000 as proposed by the 
Senate. This includes: $145,159,000 for inspection and 
detection technology investments, of which $50,000,000 shall be 
for radiation detection technology, and up to $30,000,000 shall 
be available for either radiation detection or non-intrusive 
inspection technology; $1,000,000 for a pilot study to monitor 
in-bond container shipments; $2,000,000 for the Immigration 
Security Initiative; $5,000,000 for the CBP Advanced Training 
Center; $500,000 to continue steel tariff training; $10,000,000 
for unmanned aerial vehicles; not less than $131,436,000 for 
the salaries and expenses for the Office of Air and Marine 
Operations; and a reduction of $23,000,000 to reflect the 
transfer of the Charleston training center to the Federal Law 
Enforcement Training Center. The conferees provide that not to 
exceed $35,000 shall be for official representation and 
reception expenses, as opposed to $40,000 proposed by both the 
House and Senate. The total appropriation includes a reduction 
of $193,308,000 in base budget shift to Immigration and Customs 
Enforcement.
      The following table specifies funding by budget activity:

Headquarters Management and Administration:
    Headquarters Management and Administration:.........  $1,172,838,000
Border Security Inspections and Trade Facilitation:
    Inspections, Trade and Travel Facilitation at Ports 
      of Entry..........................................   1,242,800,000
    Harbor Maintenance Fee Collection (Trust Fund)......       3,000,000
    Container Security Initiative.......................     126,096,000
    Other International Programs........................      57,300,000
    Customs-Trade Partnership Against Terrorism/FAST....      37,828,000
    Inspection and Detection Technology Investments.....     145,159,000
    Automated Targeting Systems.........................      29,800,000
    National Targeting Center...........................      16,100,000
    Other Technology Investments, Including Information 
      Technology........................................       1,000,000
    Training............................................      23,800,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Border Security Inspections and Trade 
      Facilitation......................................  $1,682,883,000
                    ========================================================
                    ____________________________________________________
Border Security and Control Between Ports of Entry:
    Border Security and Control.........................   1,413,800,000
    Air Program Operations..............................      37,300,000
    Unmanned Aerial Vehicles............................      10,000,000
    Integrated Surveillance and Intelligence System 
      Procurement.......................................      64,162,000
    Training............................................      21,700,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Border Security and Control Between 
      Ports of Entry....................................   1,546,962,000
                    ========================================================
                    ____________________________________________________
    Air and Marine Operations, Salaries and Expenses....     131,436,000
          Total, Salaries and Expenses:.................   4,534,119,000

                               RESCISSION

      The conferees rescind $63,010,000 of the funds provided 
in Public Law 108-11.

                   STAFFING PLAN AND BORDER STAFFING

      The conferees note that CBP has not submitted the 
staffing plan due December 1, 2003, as directed in the fiscal 
year 2004 conference agreement, House Report 108-280. The 
conferees support a comprehensive approach to border security, 
including both people and technology. The Congress has funded 
significant increases in hardware and systems investment in a 
number of areas, as well as additional border staffing, both 
Border Patrol and inspection personnel. The conferees strongly 
endorse the CBP approach to border enforcement with its ``one 
face at the border'' philosophy.
      The conferees therefore direct that the Department submit 
the pending staffing plan immediately, and submit an updated 
plan not later than 90 days after enactment of this Act. The 
plan shall include: actual on-board personnel for fiscal year 
2004; projected staffing for fiscal year 2005; positions 
authorized but vacant; full-time, part-time, and temporary 
positions funded through direct appropriations; full-time, 
part-time and temporary fee-funded positions; and staffing, by 
position, at each port of entry, Border Patrol station, or 
other border area location. The report should identify any new 
positions funded under this Act, should be consistent with 
staffing assumptions included in the CBP construction master 
plan that was due July, 2004, and should indicate how the CBP 
staffing allocation methodology factors in the deployment of 
complementary technology.

                           VEHICLE MANAGEMENT

      The conferees are aware that CBP is conducting a 
comprehensive review of its vehicle management plan. The 
conferees strongly support efforts to incorporate the Border 
Patrol vehicle fleet into this Bureau-wide fleet management 
plan. The conferees direct CBP to submit a detailed report, no 
later than February 8, 2005, as specified by the House and 
Senate reports.

               INTEGRATED SURVEILLANCE INFORMATION SYSTEM

      The conferees strongly support the use of technology to 
enhance the security of our nation's borders, particularly in 
the vast expanses between ports of entry. The Integrated 
Surveillance Information System (ISIS) is intended to detect 
border intrusions, interpret surveillance data, and transmit 
such information in real-time to Border Patrol, CBP, and the 
Department operations and analysis centers. The conferees are 
aware of significant gaps in integration of sub-systems that 
encompass the ISIS, and direct the Under Secretary for BTS to 
report no later than February 8, 2005, on the status of this 
effort. The conferees also direct CBP to submit a master plan 
for nationwide deployment of ISIS and associated surveillance 
and sensor technology with its fiscal year 2006 budget request, 
including a five-year capital acquisition plan, as specified in 
the Senate report. In addition, the conferees direct the 
Government Accountability Office to undertake a study of ISIS 
project management, and spending plans for ISIS investment and 
operations for fiscal years 2006-2010, to assess how well the 
project management and spending plans account for the different 
needs and environments of the land and maritime borders, and to 
assess how CBP investment in ISIS is aligned with the 
Department's enterprise architecture and technology standards.

                   ENFORCEMENT OF TRADE REMEDIES LAW

      The conferees have ensured that, of the amounts provided 
within this account, sufficient funds are available to enforce 
the anti-dumping authority contained in section 754 of the 
Tariff Act of 1930 (19 U.S.C. 1675c).
      The conferees direct CBP to submit a report to the House 
and Senate Committees on Appropriations by January 15, 2005, on 
the status of its implementation of recommendations by the U.S. 
Treasury Department's Office of the Inspector General report on 
implementation of the Continued Dumping and Subsidy Offset Act 
(CDSOA). The report should address: (1) the proper 
establishment of special accounts; (2) the need to pay 
claimants within 60 days after the end of the fiscal year 
(including the need to prepare and send checks in a timely 
fashion, and to make certain that the addresses to which they 
are sent are correct); (3) the need to address CBP's failure to 
collect millions of dollars in unliquidated entries (including 
the need for CBP to conduct timely liquidations upon receipt of 
liquidation instructions from the Department of Commerce, and 
for CBP not to liquidate in situations involving tardy notice 
of suspension of liquidation); (4) the need to address CBP's 
failure to collect millions of dollars in open (unpaid) duty 
bills and interest (including a determination of whether 
required posting of cash deposits rather than bonds would 
result in increased collections); (5) the need to establish 
standard operating procedures and adequate internal controls 
for the proper management of the CDSOA program; and (6) the 
progress and achievements of the CDSOA working group in 
addressing systemic issues identified in the report, along with 
any others relevant to proper administration of CDSOA.
      In addition, the conferees are aware that CBP intends to 
transfer administrative responsibility for the CDSOA program to 
its Office of Finance. The conferees expect CBP to establish an 
organization that is accessible and responsive and directs CBP 
to include in the report a detailed description of which 
offices have responsibility for external relations, litigation, 
denials, verifications, and payments.

                      COUNTERDRUG SUPPORT PROGRAM

      The Department of Homeland Security should work with the 
Department of Defense to permit the New Mexico National Guard 
to continue performing vehicle and cargo inspections in support 
of CBP and ICE missions, and CBP, in consultation with the 
Department of Defense, should report no later than March 1, 
2005, on what actions are planned.

                      CBP ADVANCED TRAINING CENTER

      The conferees include an increase of $5,000,000 above the 
fiscal year 2004 level to operate and equip the CBP Advanced 
Training Center. Although the budget requested funding for the 
operation of this center in the Federal Law Enforcement 
Training Center (FLETC) ``Salaries and Expenses'' account, the 
conferees expect this to continue to be a CBP facility and that 
DHS will not use its reorganization authority to effectuate its 
transfer elsewhere. Pursuant to Public Law 106-246, the 
training to be conducted at the facility shall be configured in 
a manner so that it does not duplicate or displace any FLETC 
training. The conferees expect that training currently being 
conducted at a FLETC facility shall not be moved to the new CBP 
training facility.

                   TEXTILE TRANSSHIPMENT ENFORCEMENT

      The conferees direct CBP to maintain its efforts at the 
level authorized by Section 352 of the Trade Act of 2002.

                         PRE-ARRIVAL PROCESSING

      The conferees are aware that the Department is working 
with government officials and private entities at Northern 
Border land ports of entry to securely expedite cargo, 
including such pre-clearance methods as the Pre-Arrival 
Processing System using barcode technology, and support 
expansion of such programs.

            AIR AND MARINE OPERATIONS, SALARIES AND EXPENSES

      The conferees agree to provide $131,436,000 for the 
salaries and expenses of AMO, which is to be transferred from 
ICE to CBP. This reflects salaries and expenses presently 
funded through the ICE Salaries and Expenses account, and 
includes an additional $3,000,000 for personnel and operations 
costs for the National Capital Region Air Branch and 
Coordination Center. The House provided $5,000,000 for this 
purpose.

                       OFFSETTING FEE COLLECTIONS

      The conferees continue to be concerned about the accuracy 
of estimates for fees supporting CBP operations, particularly 
for the Immigration User Fee. The conferees direct CBP to 
ensure that fee revenues are used first to fully fund base 
operations and adjustments, as supported by budget 
justification materials provided to the Congress, before 
undertaking any new initiatives. The conferees also direct the 
Department and CBP to inform the House and Senate Committees on 
Appropriations in a timely manner of potential short-term 
operational or programmatic impacts from reduced fee 
collections.

                        Automation Modernization

      The conferees agree to provide $449,909,000, as proposed 
by both the House and the Senate. Funds are available until 
expended. This includes funding as requested for the Automated 
Commercial Environment (ACE), the Integrated Trade Data System 
(ITDS), and the costs of the legacy Automated Commercial 
System. This funding includes not less than $321,690,000 for 
ACE and ITDS, of which $16,190,000 is for ITDS, all of which 
remains subject to approval of its expenditure plan before it 
may be obligated.

                      CBP AUTOMATION MODERNIZATION

      The conferees believe that ACE and CBP modernization 
should be integrated with, if not form the core of, the 
Department's information system and border security technology, 
the Container Security Initiative, and Automated Targeting 
Systems. The conferees direct CBP to address such issues in its 
quarterly reports on ACE implementation.

 Air and Marine Interdiction, Operations, Maintenance, and Procurement

      The conferees agree to provide $257,535,000, as proposed 
by the House, instead of $467,535,000 as proposed by the 
Senate. This had been requested as part of ICE Salaries and 
Expenses, but the conferees have moved this funding to CBP to 
reflect the decision by the Secretary of Homeland Security.

                     TETHERED AEROSTAT RADAR SYSTEM

      The conferees are concerned with an apparent lack of 
consensus about the scope and scale of the Tethered Aerostat 
Radar System among key stakeholders--AMO, the Department of 
Defense, the Office of National Drug Control Policy, and the 
Office of the United States Interdiction Coordinator (USIC). 
The conferees direct the Under Secretary for Border and 
Transportation Security, in consultation with USIC, to submit a 
joint report, no later than February 8, 2005, as specified in 
the House report.

                         AIRWING COMMUNICATIONS

      The conferees believe that interoperable communications 
are necessary to ensure that all airwings can communicate with 
local law enforcement personnel.

                              Construction

      The conferees agree to provide $91,718,000, as proposed 
by both the House and the Senate. Funds are available until 
expended.

               CONSTRUCTION MASTER PLAN AND SPENDING PLAN

      The conferees are disappointed that the updated 
construction master plan called for in the fiscal year 2004 
appropriation has not yet been submitted. The conferees direct 
the Department to submit that plan as soon as possible, and to 
submit a detailed spending plan for the fiscal year 2005 
construction account no later than February 8, 2005, which 
includes, but should not be limited to, the following 
information for each tactical and facility construction 
project, by sector, type of construction, and facility, for 
fiscal years 2005-2009: (1) explanation of the purpose of work; 
(2) total estimated project cost; (3) amount of funding 
provided by fiscal year; (4) a detailed cost breakout for 
construction, design, planning, project management; and (5) 
date each phase of the project began or is scheduled to begin 
and is to be completed.

                  Immigration and Customs Enforcement

                         SALARIES AND EXPENSES

      The conferees agree to provide $2,438,494,000, instead of 
$2,377,006,000 as proposed by the House and $2,513,438,000 as 
proposed by the Senate. This includes increases of: $11,000,000 
for alternatives to detention; $6,000,000 to reduce immigration 
court backlog; $14,000,000 for the Visa Security Unit and 
Overseas Operations; $30,000,000 for the Institutional Removal 
Program; $25,000,000 for benefit fraud enforcement; $5,000,000 
for worksite enforcement; $26,500,000 for detention bedspace 
support; $16,000,000 for compliance teams; $50,000,000 for 
fugitive operations (including associated detention and removal 
costs); $6,216,000 for the Guantanamo Migrant Operations 
Center; and $4,200,000 for the Cyber Crime Center. This 
reflects the transfer of $131,436,000 for salaries and 
expenses.
      The conferees provide that not to exceed $15,000 shall be 
for official representation and reception expenses, and that 
not to exceed $11,216,000 shall be available to reimburse 
federal agencies for their costs associated with smuggled 
aliens.
      The conferees also include an increase of $193,308,000 to 
reflect a permanent realignment in base funding for 
investigations and overseas operations through a shift from 
CBP. As noted in the section below, the conferees are closely 
following the continuing review by ICE and the Department of 
administrative and other mission responsibilities, with the 
goal of fully mapping the costs and requirements of ICE and 
other agencies formed as a result of being merged into the new 
department. The following table specifies funding by budget 
activity:

Headquarters Management and Administration:
      Personnel Compensation and Benefits, services and 
      other costs.......................................     $96,202,000
      Headquarters Managed IT Investment................     120,119,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Headquarters Management and 
      Administration....................................     216,321,000
                    ========================================================
                    ____________________________________________________
Investigations:
    Operations..........................................   1,055,345,000
    Training............................................      15,671,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Investigations..........................   1,071,016,000
                    ========================================================
                    ____________________________________________________
Intelligence:
    Headquarters Reporting Center.......................       4,882,000
    Operations..........................................      55,130,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Intelligence............................      60,012,000
                    ========================================================
                    ____________________________________________________
Detention and Removal Operations:
    Custody Management..................................     504,221,000
    Case Management.....................................     192,269,000
    Fugitive Operations.................................      35,242,000
    Institutional Removal Program.......................      33,719,000
    Alternatives to Detention...........................      14,202,000
    Transportation and Removal Program..................     311,492,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Detention and Removal Operations........   1,091,145,000
                    ========================================================
                    ____________________________________________________
        Total, Salaries and Expenses....................   2,438,494,000

                          FINANCIAL MANAGEMENT

      The conferees are extremely concerned about the financial 
health of ICE, and whether it has the systems and management in 
place to support the functioning of the agency. The adverse 
impact of hiring and spending freezes and uncertainty on the 
operations of this critical agency and the morale of its 
personnel cannot be ignored. The Department and ICE must 
significantly improve management and oversight of financial and 
administrative systems to prevent a repeat of the dramatic and 
unanticipated funding difficulties in fiscal years 2004 and 
expected in 2005. The conferees are disappointed that ICE has 
been unable to provide comprehensive data for fiscal year 2005 
operations prior to the consideration of the conference 
agreement.
      The conferees also expect that structural and management 
problems will be dealt with immediately and emphatically, and 
that improved analysis and planning systems will be put in 
place to give the agency, Department, and Congress a clear and 
transparent view of ICE's financial status. The conferees 
direct the Department's Chief Financial Officer and the 
Assistant Secretary for ICE to submit a detailed report no 
later than February 8, 2005, to the House and Senate Committees 
on Appropriations on the progress of its financial management 
overhaul. This report should include, but not be limited to, a 
detailed explanation of: (1) steps ICE is taking to address 
shortcomings of its present financial management systems; (2) 
how improved financial oversight will be carried out; (3) how 
ICE will improve its notification of financial irregularities; 
and (4) how reform of ICE financial management will be 
coordinated with the ``tri-bureau'' and ``shared-services'' 
efforts ICE carries out with CBP and U.S. Citizenship and 
Immigration Services (CIS).

                  USE OF IMMIGRATION EXAMINATIONS FEE

      The conferees are aware that the Department is studying 
the possibility of the ICE Office of General Counsel receiving 
reimbursement from the examinations fee account for the costs 
of workload related to CIS. The conferees believe that ICE does 
not currently have the ability to provide a detailed accounting 
of this potential examinations fee account spending to CIS. It 
is reasonable for CIS, as the client, to expect that ICE will 
have in place an adequate system to track attorney time spent 
on CIS-related cases, and provide that information to CIS in 
support of the annual bill for services rendered. The 
Department should ensure that such a tracking system is in 
place prior to any future proposal to allocate examinations fee 
funds to ICE.

                          CYBER CRIMES CENTER

      The conferees agree to provide $4,200,000 for additional 
computer forensic infrastructure, to include content-
addressable data storage, information technology services and 
staff, to expand the ICE Cyber Crime Center to ICE field 
offices.

                  CROSS-TRAINING OF ICE SPECIAL AGENTS

      The conferees are aware that some ICE special agents have 
been cross-trained to act as Federal Air Marshals (FAMs) in a 
``surge capacity'', with plans to train more in fiscal year 
2005. The conferees believe that this is not an effective use 
of resources or training, and that it no longer has the full 
support of either ICE or FAM management. The conferees believe 
this training program should be discontinued.

                      INCREASED DETENTION BEDSPACE

      The conferees agree to provide $16,500,000 in addition to 
the level of funding provided in the House and Senate bills, 
which would support an increase in detention capacity of 500 
beds for fiscal year 2005, leading to over 3,300 more removals 
of deportable aliens than currently planned.

                   TEXTILE TRANSSHIPMENT ENFORCEMENT

      The conferees direct ICE to maintain its efforts at the 
level authorized by Section 352 of the Trade Act of 2002.

                       offsetting fee collections

      The conferees continue to be concerned about the accuracy 
of estimates for fees supporting ICE operations, including the 
collection of fees for the Student and Exchange Visitor Program 
and the Immigration User Fee. The conferees direct ICE to 
ensure that fee revenues are used first to fully fund base 
operations and adjustments, as supported by budget 
justification materials provided to Congress, before 
undertaking any new initiatives. The conferees also direct the 
Department and ICE to inform the House and Senate Committees on 
Appropriations in a timely manner of potential short-term 
operational or programmatic impacts from reduced fee 
collections.

                          Federal Air Marshals

      The conferees agree to provide $662,900,000, as proposed 
by the House instead of $712,900,000 as proposed by the Senate. 
Within this total, $593,552,000 is for management and 
administrative expenses and $69,348,000 is for travel and 
training. Funding is available for one year as proposed by the 
Senate.

                  CROSS-TRAINING OF ICE SPECIAL AGENTS

      The conferees are aware that a number of ICE special 
agents have been cross-trained to serve as FAMs and that plans 
are in place to continue this training in fiscal year 2005. 
While ICE has previously described this effort as a means of 
developing a ``surge capacity'' to respond to a heightened 
threat condition, the conferees believe that it has not proven 
to be an effective use of resources or training, and that it no 
longer has the full support of either ICE or FAM management. 
The conferees believe this training program should be 
discontinued.

                         reporting requirement

      The conferees direct the Secretary to provide quarterly 
classified reports to the House and Senate Committees on 
Appropriations; the Senate Committee on Commerce, Science, and 
Transportation; and the House Committee on Transportation and 
Infrastructure on the number of individuals serving as FAMs, 
the number of FAMs who are women, minorities, or employees of 
agencies of the United States government other than the 
Department of Homeland Security; the percentage of domestic and 
international flights that have FAMs on board; and the rate at 
which individuals are leaving the Federal Air Marshal service. 
The first such report is due on January 15, 2005.

                             IDENTIFICATION

      The conferees are concerned about public identification 
of FAMs and strongly support the rapid development of 
procedures and policies, such as a credential, that do not 
expose FAMs when on official travel.

                       Federal Protective Service

      The conferees agree to provide $478,000,000, as proposed 
by both the House and the Senate.

                        Automation Modernization

      The conferees agree to provide $39,605,000, as proposed 
by both the House and the Senate. Funds are available until 
expended. The conferees also include a provision prohibiting 
the obligation of funds until the House and Senate Committees 
on Appropriations receive and approve an expenditure plan, as 
proposed by the House.

                              Construction

      The conferees agree to provide $26,179,000 as proposed by 
the House, and as specified by project in the Senate report.

                 Transportation Security Administration

                           Aviation Security

      The conferees agree to provide $4,323,523,000 instead of 
$4,270,564,000 as proposed by the House and $4,386,083,000 as 
proposed by the Senate. Within this total, not to exceed $3,000 
is available for official reception and representation expenses 
as proposed by the House and the Senate. In addition to the 
amounts appropriated, a mandatory appropriation of $250,000,000 
is available to support the Aviation Security Capital Fund. 
Bill language is also included that reflects the collection of 
$1,823,000,000 from aviation user fees, as authorized. Funding 
is provided as follows:

Passenger screening:
    Screening pilots (PP5)..............................    $129,654,000
    Passenger screeners, PC&B...........................   1,445,486,000
    Passenger screeners, training and other.............     140,614,000
    Human resource services.............................     150,000,000
    Checkpoint support..................................     123,500,000
    Secure flight.......................................      34,919,000
    Crew vetting........................................      10,000,000
    Registered traveler program.........................      15,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Passenger Screening.....................   2,049,173,000
                    ========================================================
                    ____________________________________________________
Baggage screening:
    Baggage screeners, PC&B.............................     848,860,000
    Baggage screeners, training and other...............     203,660,000
    Explosive detection systems purchase................     180,000,000
    Explosive detection systems installation............      45,000,000
    Maintenance.........................................     174,940,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Baggage Screening.......................   1,452,460,000
                    ========================================================
                    ____________________________________________________
Security direction and enforcement:
    Aviation regulation and other enforcement...........     230,000,000
    Airport management and staff........................     284,000,000
    Airport information technology and other support....     242,890,000
    Federal flight deck officer program.................      25,000,000
    Air cargo...........................................      40,000,000
    Flight school checks (non-add, transfer from DOJ)...       9,700,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Security Direction and Enforcement......     821,890,000

                            STAFFING LEVELS

      The conferees include bill language that caps the full-
time equivalent (FTE) screener workforce to up to 45,000 as 
proposed by the House. The conferees expect the Transportation 
Security Administration (TSA) to have no more than 45,000 full-
time equivalent screeners by the end of fiscal year 2005. The 
conferees recognize that TSA may need to realign its workforce 
throughout the year due to attrition or advances in detection 
technologies. TSA has the flexibility to hire screeners during 
the fiscal year at those airports where additional or 
replacement screeners are necessary to maintain aviation 
security and customer service. The 45,000 FTE level is 
therefore to be regarded as a cap and not a staffing mandate.

                    AVIATION SECURITY COSTS AND FEES

      The conferees include bill language, as proposed by the 
Senate, requiring the Government Accountability Office to 
conduct audits of air carriers' actual security costs for 
passenger and property screening incurred in calendar year 
2000. Based on the findings of the review, the Secretary shall 
collect any additional fees from air carriers and make them 
available for airport security modifications.

  PASSENGER AND BAGGAGE SCREENERS PERSONNEL, COMPENSATION AND BENEFITS

      The conferees agree to provide $1,445,486,000 for 
passenger screening and $848,860,000 for baggage screening 
activities for both Federal screeners as well as any contracts 
awarded under the opt-out program after November 18, 2004, for 
all airports other than the five current screening pilots. The 
conferees agree that TSA needs the flexibility to manage the 
opt-out program without the need for reprogramming actions for 
each individual contract. In addition to the report required by 
the House on cost savings resulting from opt-out, the conferees 
direct TSA to report on the following information regarding the 
opt-out program: (1) the number and location of each airport 
applying for participation under the opt-out program; (2) the 
decision by the Administrator on the application; (3) if an 
application by an airport is not accepted, the reasons why the 
application was not approved; and (4) the results of the 
competitive acquisition for contract screening services at 
those airports whose applications have been approved. The 
conferees direct that TSA provide the House and Senate 
Committees on Appropriations with advance notice 10 days before 
an announcement is made that an airport has been selected under 
the opt-out program. At the time the contract is awarded, TSA 
shall adjust its program, project, and activity line items to 
account for changes in third party private screening contracts 
and screener personnel, compensation and benefits to reflect 
the award of contracts under the opt-out program.

                          SCREENER COMPLAINTS

      The conferees understand that there have been a 
disproportionate number of complaints against TSA for alleged 
violations of equal employment opportunity and veterans 
preference laws as those laws apply to employment of personnel 
in TSA airport screener positions at the Louis Armstrong New 
Orleans International Airport. There also appears to be a 
significant backlog of unresolved complaints. The conferees 
direct the Administrator to submit a report to the House and 
Senate Committees on Appropriations no later than March 31, 
2005, on the personnel policies of the Department that apply to 
the employment of TSA airport screeners, particularly with 
regard to compliance with equal employment opportunity and 
veterans preference laws. The report should include an 
assessment of the extent of TSA's compliance with these laws, a 
discussion of any systemic problems that could have caused the 
circumstances giving rise to the disproportionate number of 
complaints, and the efforts being taken by the Administrator to 
eliminate the backlog of unresolved complaints and to correct 
any systemic problems at the Louis Armstrong New Orleans 
International Airport.

                           CHECKPOINT SUPPORT

      The conferees agree to provide $123,500,000 instead of 
$86,060,000 as proposed by the House and $161,060,000 as 
proposed by the Senate. Funding may be used for reconfiguration 
of airport checkpoints to expedite the flow of travelers; 
purchase, installation, and maintenance of checkpoint 
equipment; and electronic surveillance of checkpoints.
      TSA shall submit a report to the House and Senate 
Committees on Appropriations no later than February 10, 2005, 
on the agency's pilot programs to screen passengers and carry-
on baggage for explosives, as discussed in the Senate report.

                             SECURE FLIGHT

      The conferees agree to provide $34,919,000 as proposed by 
the Senate instead of $40,000,000 as proposed by the House. 
Previous year funding remains unobligated for this program that 
can be applied in fiscal year 2005. In addition, $10,000,000 
has been provided under a separate account for crew vetting, as 
proposed by the House. In the past, this funding was part of 
the CAPPS II/Secure Flight account.
      The conferees note that the Department appears to be 
moving in the right direction regarding aviation passenger 
prescreening by proposing to check all watch lists through the 
new Secure Flight program, as was recommended by the 9/11 
Commission. The conferees are concerned, however, that the 90 
days allotted by TSA to plan, test, and analyze this new system 
before it is fully implemented may be insufficient. The 
conferees encourage TSA to focus first on getting the watchlist 
checks operational, before undertaking any other efforts. The 
conferees expect TSA to cooperate fully with the Government 
Accountability Office in their review of the Secure Flight 
program.

                  EXPLOSIVE DETECTION SYSTEMS PURCHASE

      The conferees agree to provide $180,000,000 instead of 
$170,000,000 as proposed by the House and $210,000,000 as 
proposed by the Senate. The conferees continue to encourage 
competition among the vendors so that multiple Explosive 
Detection Systems (EDS) technologies are available to TSA and 
airports. The conferees are aware of next-generation in-line 
EDS machines that are currently being tested, certified, and 
piloted. Within the $180,000,000 provided, the conferees direct 
that not less than $30,000,000 be used to install these next-
generation explosive detection systems, particularly at medium 
and small airports, to permit more efficient handling of 
checked bags and reduce dependence on baggage screeners. These 
next-generation EDS systems are far smaller and less expensive 
than the current generation of screening units. The conferees 
believe that the expeditious deployment of these systems is 
essential for developing in-line solutions that do not require 
the costly, large-scale redesign and construction of baggage 
conveyor systems. Furthermore, although these next-generation 
machines have immediate application to checked-baggage 
screening, they also have the potential to cost-effectively 
enhance security at passenger checkpoints, transit stations, 
and other key facilities.

                EXPLOSIVE DETECTION SYSTEMS INSTALLATION

      In addition to the statutory allocation of $250,000,000 
in the Aviation Security Capital Fund, the conferees agree to 
provide $45,000,000 to assist the eight airports that have 
signed Letters of Intent to install explosive detection systems 
in-line with their baggage systems. The installation of in-line 
systems to screen checked baggage at our Nation's airports is a 
critical step in combating the terrorist threat against 
aviation. The use of in-line EDS is not only more effective 
than explosive trace detection (ETD) and stand-alone systems, 
but is considerably less costly to operate. Accordingly, it has 
been widely recognized that a high priority should be given to 
the installation of in-line baggage screening systems. Most 
recently, the 9/11 Commission recognized this need in its 
recommendations, urging TSA to ``expedite the installation'' of 
such systems.
      The conferees have included bill language requested by 
the President that permits the Aviation Security Capital Fund 
to be used to fund the eight Letters of Intent in fiscal year 
2005 with a 75 percent Federal share. Under tight budgetary 
constraints the conferees do not have sufficient funding to 
raise these projects to a 90 percent Federal share.
      The conferees direct TSA to comprehensively plan for 
expediting the installation of in-line EDS, including the 
formulation of detailed budget requirements that will provide 
for both equipment acquisition and the capital costs of 
installing such system configurations at airports. Consistent 
with fiscal year 2004 report language, TSA should submit 
quarterly reports on its plans for such in-line installations 
that include: (1) the universe of airports that may benefit 
from an in-line EDS system or other physical modifications; (2) 
a list of all airports where TSA has begun working on plans to 
move EDS machines in-line either through the Boeing contract 
design phases or directly with the airports; and (3) a list of 
airports that will be doing EDS enhancements, including moving 
systems in-line that are not funded via Letters of Intent. 
Costs associated with each airport's project and a tentative 
timeline for award and completion should be included. 
Additionally, the plan should include information reflecting 
the anticipated cost savings--particularly personnel savings--
that will be achieved from the use of in-line checked baggage 
systems contrasted with reliance on ETD and stand-alone 
systems. The conferees expect that TSA's planning will be 
conducted in consultation with aviation stakeholders (including 
airports, airlines, and EDS manufacturers).

               AVIATION REGULATION AND OTHER ENFORCEMENT

      The conferees agree to provide $230,000,000 as proposed 
by the House instead of $227,000,000 as proposed by the Senate. 
Within this funding, $3,000,000 has been provided to expand the 
number of canine teams deployed to inspect air cargo. Due to 
the increasing need for explosive detection capability in the 
transportation sector, the conferees encourage the Department 
to conduct a pilot project to assess the cost and performance 
effectiveness of utilizing private sector providers of 
explosive detection canines.

                               AIR CARGO

      The conferees agree to provide a total of $115,000,000 
for air cargo security. Of this total, $40,000,000 is for 100 
additional inspectors and enforcement activities and 
$75,000,000 is for research and development of technologies to 
provide more effective and efficient methods of detecting air 
cargo threats.
      Public Law 108-90, the Department of Homeland Security 
Appropriations Act of 2004, provided $85,000,000 to strengthen 
the oversight of air cargo security and for research and 
development of technological solutions for inspections of cargo 
carried on passenger aircraft. Public Law 108-90 also provided 
statutory language directing the Secretary to develop the best 
technology for the inspection and screening of air cargo on 
passenger aircraft at the earliest date possible and for the 
enhancement of the known shipper program. Given recent 
Department reports of low obligations for these programs, the 
conferees are concerned that the Department is not moving with 
sufficient speed to implement this direction. The conferees 
direct the Department to act expeditiously to fully obligate 
and expend the funding provided for air cargo security 
activities and direct TSA to provide quarterly reports to the 
House and Senate Committees on Appropriations beginning in 
December, 2004, on the use of all dollars obligated and plans 
for the use of unobligated balances.
      The conferees direct TSA to work more aggressively to 
strengthen air cargo security. In particular, TSA should 
strengthen the known shipper program to include regular 
security checks on all known shippers to assure that they are 
not compromising security standards. Similarly, TSA is directed 
to work with the indirect air carriers to assure that they 
abide by all security directives and information circulars 
relating to air cargo. TSA shall also validate the indirect air 
carriers security measures used when they consolidate freight 
and transport it to passenger and all-cargo aircraft to prevent 
unauthorized access.

                      DEPLOYABLE FLIGHT RECORDERS

      The ability to rapidly determine whether a security 
breach caused an aviation accident is critical. Therefore, the 
conferees direct TSA to work with the Federal Aviation 
Administration to determine whether it would improve security 
analysis in aviation accidents if deployable flight incident 
recorders were required aboard commercial passenger aircraft 
and to report back to the House and Senate Committees on 
Appropriations within 180 days of enactment of this Act.

                       Maritime and Land Security

      The conferees recommend a total funding level of 
$75,000,000 for staffing and activities within TSA's maritime 
and land security program. Of this total, $48,000,000 is a 
direct appropriation and $27,000,000 is available through 
offsetting collections. The House proposed $65,000,000 in 
direct appropriations and $67,000,000 in offsetting 
collections. The Senate proposed $44,000,000 in direct 
appropriations and $67,000,000 in offsetting collections. 
Funding shall be available until September 30, 2006, as 
proposed by the House instead of September 30, 2005, as 
proposed by the Senate. The following table specifies funding 
levels by budget activity:

Credentialing...........................................      $5,000,000
Transportation worker identification credential.........      15,000,000
Hazardous materials truck tracking......................       2,000,000
Hazardous materials safety..............................      17,000,000
Enterprise staffing.....................................      24,000,000
Rail security...........................................      12,000,000
Offsetting collections..................................    (27,000,000)
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Maritime and Land.......................      48,000,000

                   MARITIME AND LAND SECURITY GRANTS

      While funding has been provided for a variety of maritime 
and land security grants within the Office of State and Local 
Government Coordination and Preparedness (SLGCP), as proposed 
by the Senate, the conferees realize that TSA staff have the 
subject matter expertise on port, rail, intercity bus, and 
highway security. The conferees, therefore, direct TSA to work 
with SLGCP to review grant applications, determine eligibility, 
and make award determinations for these four grant areas.
      The conferees are concerned about the lack of priority-
setting in the intercity bus grant program. TSA and SLGCP 
should clearly identify priorities, including the importance of 
passenger screening and terminal security. It also is important 
to focus onthe unique structure of the intercity bus industry 
and the importance of fixed route intercity bus service.

            TRANSPORTATION WORKER IDENTIFICATION CREDENTIAL

      The conferees agree to provide $15,000,000 instead of 
$65,000,000 as proposed by the House and $53,000,000 as 
proposed by the Senate. Funding has been decreased for this 
program because of delays in prototyping and evaluating this 
credential. The conferees direct TSA to report back to the 
House and Senate Committees on Appropriations about the results 
of prototype testing before moving into the next phase. Of the 
total funding, $5,000,000 is a direct appropriation that will 
be used to develop and install necessary hardware and software 
at those sites producing and personalizing the transportation 
worker identification credentials. The additional $10,000,000 
appropriation will be offset throughout the fiscal year from 
application fees.

                             RAIL SECURITY

      The conferees agree to provide $12,000,000 instead of 
$11,000,000 as proposed by the House and $15,000,000 as 
proposed by the Senate. This level will support the deployment 
of up to 100 federal rail compliance inspectors and includes 
$2,000,000 for the deployment of canine explosive detection 
teams. In addition to funds provided under TSA, the conferees 
include $150,000,000 for rail security grants under the Office 
of State and Local Government Coordination and Preparedness, 
funding within the Science and Technology Directorate to 
research and design rail security requirements that could 
strengthen rail security nationwide, and funding within the 
Information Analysis and Infrastructure Protection Directorate 
to improve the security of rail corridors that carry hazardous 
materials.
      The conferees are aware of promising advances in train 
control technology that would allow a central operator the 
ability to remotely control the operation of a freight or 
passenger train in times of distress. The conferees believe 
development of such a system would enhance the security of the 
rail system, and direct TSA to implement projects that 
demonstrate and advance this technology.

                   HAZARDOUS MATERIALS TRUCK TRACKING

      The conferees have provided $2,000,000 to continue the 
previously funded program to coordinate tracking and monitoring 
truck shipments of hazardous materials.

                              Intelligence

      The conferees agree to provide $14,000,000 as proposed by 
both the House and the Senate.

                        Research and Development

      The conferees agree to provide $178,000,000 instead of 
$174,000,000 as proposed by the House and $181,000,000 as 
proposed by the Senate. Funding shall be allocated as follows:

Research and development, including Tech Center.........     $49,000,000
Next-generation explosive detection systems.............      54,000,000
Air cargo...............................................      75,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Research and Development................     178,000,000

              NEXT-GENERATION EXPLOSIVE DETECTION SYSTEMS

      The conferees agree to provide $54,000,000 instead of 
$50,000,000 as proposed by the House and $57,000,000 as 
proposed by the Senate. Of this total, $10,000,000 is for the 
Manhattan II project as proposed by the House.

                               AIR CARGO

      The conferees agree to provide $75,000,000 for air cargo 
research and development as proposed by both the House and the 
Senate. Of this total, $20,000,000 shall be used to accelerate 
the research and development of new technologies to detect 
explosives in air cargo bound for passenger and all-cargo 
aircraft, and for the acceleration of the air cargo inspection 
pilot program to additional locations, including airports 
experiencing extreme environmental conditions, to ensure 
equipment durability.

                             Administration

      The conferees agree to provide $519,852,000 instead of 
$524,852,000 as proposed by the House and $534,852,000 as 
proposed by the Senate. Funding shall be available until 
September 30, 2006, as proposed by the House. The following 
table specifies funding levels by budget activity:

Headquarters support....................................    $267,382,000
Mission support centers.................................       5,000,000
Information technology applications.....................     240,470,000
Corporate training......................................       7,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Administration..........................     519,852,000

                       UNITED STATES COAST GUARD

                           Operating Expenses

      The conferees agree to provide $5,157,220,000 instead of 
$5,171,220,000 as proposed by the House and $5,153,220,000 as 
proposed by the Senate. Within this total, $1,204,000,000 shall 
be available for defense-related activities, as proposed by the 
House instead of $1,090,000,000 as proposed by the Senate. 
Funding for operating expenses shall be allocated as follows:

Military Pay and Allowance:
    Military pay and allowances.........................  $2,161,114,000
    Military health care................................     544,785,000
    Permanent change of station.........................     101,928,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, military pay and allowance..............   2,807,827,000
                    ========================================================
                    ____________________________________________________
Civilian Pay and Benefits:
    Civilian pay and benefits...........................     456,110,000
    Pay for performance demonstration...................              --
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, civilian pay and benefits...............     456,110,000
                    ========================================================
                    ____________________________________________________
Training and Recruiting:
    Training and education..............................      81,407,000
    Recruitment.........................................      80,034,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, training and recruiting.................     161,441,000
                    ========================================================
                    ____________________________________________________
Operating Funds and Unit Level Maintenance:
    Atlantic Command....................................     153,427,000
    Pacific Command.....................................     175,377,000
    1st District........................................      43,367,000
    7th District........................................      52,004,000
    8th District........................................      36,302,000
    9th District........................................      23,265,000
    13th District.......................................      18,050,000
    14th District.......................................      12,512,000
    17th District.......................................      22,557,000
    Headquarters directorates...........................     312,322,000
    Headquarters managed units..........................      74,175,000
    Other activities....................................         767,000
      Subtotal, operating funds and unit level 
      maintenance.......................................     924,125,000
Centrally Managed Accounts:.............................     175,438,000
Immediate and Depot Level Maintenance:
    Aeronautical maintenance............................     222,384,000
    Electronic maintenance..............................      95,460,000
    Civil/Ocean engineering & shore facilities 
      maintenance.......................................     151,035,000
    Vessel maintenance..................................     154,400,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, immediate and depot level maintenance...     623,279,000
                    ========================================================
                    ____________________________________________________
Watch Standards:........................................       9,000,000
                    ========================================================
                    ____________________________________________________
        Total...........................................   5,157,220,000

      For the fiscal year 2006 budget justification and for 
reprogrammings pursuant to Section 503 of this Act, the Coast 
Guard shall use the six budget categories listed above 
(military pay and allowances, civilian pay and benefits, 
training and recruiting, operating funds and unit level 
maintenance, centrally managed accounts, and intermediate and 
depot level maintenance). However, notwithstanding 
reprogramming thresholds, the Coast Guard shall notify the 
House and Senate Committees on Appropriations of changes within 
program, projects, and activities of the 23 line items listed 
above as they occur.

                    BALLAST WATER MANAGEMENT PROGRAM

      The conferees agree to provide $4,000,000 as proposed by 
the Senate instead of $4,662,000 as proposed by the House.

                        AERONAUTICAL MAINTENANCE

      The conferees do not agree to language contained in the 
House report related to fluid outflow collection devices. The 
Senate had no comparable report language.

                            WATCH STANDARDS

      The conferees agree to provide $9,000,000 for the Coast 
Guard to come into compliance with its watch standards, which 
specify that an individual on duty or watch in a Coast Guard 
Search and Rescue Command Center facility should not work more 
than 12 hours in a 24-hour period, except in an emergency or 
unforeseen circumstance. The House provided $13,000,000 for 
this activity.

                     FOREIGN VESSEL SECURITY PLANS

      The conferees are concerned that the Coast Guard intends 
to rely on foreign governments to review foreign vessel 
security plans. The conferees expect the Coast Guard to use its 
Port State Control Program, a risk-based independent 
verification process, to ensure that foreign vessel security 
plans are adhered to and in place. The conferees also expect 
the Coast Guard to randomly assess the vessel security plans of 
vessels not identified by the Port State Control Program. The 
conferees direct the Coast Guard to report no later than March 
1, 2005, on the progress of this foreign vessel security 
oversight process, including the Coast Guard resources required 
to implement this process.

                            SECTOR COMMANDS

      The conferees direct the Coast Guard to adhere to 
reporting requirements addressed in the House report 30 days 
prior to moving any sector commands. As part of these 
decisions, the Coast Guard is encouraged to recognize the 
importance of existing Department of Defense capabilities to 
maximize coordination and eliminate redundancies when forming 
joint sector command centers with the Navy.

                    LIQUEFIED NATURAL GAS TERMINALS

      The Coast Guard shall submit a report to the House and 
Senate Committees on Appropriations, the Committee on Commerce, 
Science, and Transportation of the Senate, the Committee on 
Energy and Commerce of the House of Representatives, and the 
Committee on Transportation and Infrastructure of the House of 
Representatives not later than 90 days after the enactment of 
this Act on opportunities for integrating the process the Coast 
Guard uses to issue letters of recommendation for proposed 
liquefied natural gas terminals and the process by which the 
Federal Energy Regulatory Commission issues permits for such 
terminals under the National Environmental Policy Act. The 
report shall also include the advisability of requiring that 
Coast Guard responsibilities relating to vessel transit, 
facility security assessment and facility security plans under 
the Maritime Transportation Security Act be completed for a 
proposed liquefied natural gas terminal before a final 
environmental impact statement for such terminal is published 
under the Federal Energy Regulatory Commission process.

                           ICEBREAKING STUDY

      As discussed in the Senate report and the Coast Guard 
authorization bill for fiscal year 2005, the conferees require 
the National Academy of Sciences to study the role of Coast 
Guard icebreakers.

                   MARITIME SAFETY AND SECURITY TEAMS

      The conferees direct the Coast Guard to adhere to Senate 
report language on maritime safety and security teams.

                Environmental Compliance and Restoration

      The conferees agree to provide $17,000,000 as proposed by 
both the House and the Senate.

                            Reserve Training

      The conferees agree to provide $113,000,000 as proposed 
by the House instead of $117,000,000 as proposed by the Senate.

              Acquisition, Construction, and Improvements

                    (INCLUDING RESCISSION OF FUNDS)

      The conferees agree to provide $982,200,000 instead of 
$936,550,000 as proposed by the House and $1,062,550,000 as 
proposed by the Senate. Consistent with prior practice, bill 
language is included to distribute the total appropriation by 
separateobligation availabilities. The following table 
summarizes the recommended level by program, project, and activity:

Vessels and critical infrastructure:
    Great Lakes icebreaker replacement..................      $7,750,000
    Response boat medium................................      12,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, vessels and critical infrastructure.....      19,750,000
                    ========================================================
                    ____________________________________________________
Deepwater:
Aircraft
    Maritime patrol aircraft............................       5,250,000
    VTOL unmanned aerial vehicle (VUAV).................      43,000,000
    Capability enhancements for HH-60 Avionics..........      15,000,000
    Capability for HC-130 aircraft radar................       9,000,000
    HH-65 re-engining project...........................      99,000,000
    Covert surveillance aircraft........................      14,000,000
Surface Ships
    National security cutter............................     264,500,000
    Offshore patrol cutter requirements analysis........      25,000,000
    IDS patrol boat (110, to 123, conversion)...........      30,000,000
    Fast response cutter................................      30,000,000
    IDS small boats.....................................       2,300,000
    270, WMEC sustainment project for major equipment...      12,500,000
CHISR
    Command and control system for common operating 
      picture...........................................      31,000,000
    270, WMEC C4ISR upgrades............................       1,500,000
    Communications area master station upgrade at shore 
      sites.............................................      19,500,000
    SEI Equipment for 270, WMEC and 378, WHEC...........       1,600,000
Logistics
    ICGS Development....................................      15,100,000
    Shore sites.........................................       1,600,000
    Facilities required for future asset deployments....      23,100,000
ICGS Management                                               43,000,000
Government program management/ICGS                            38,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Deepwater...............................     723,950,000
                    ========================================================
                    ____________________________________________________
Aircraft:
    Armed helicopter equipment..........................       2,500,000
                    ========================================================
                    ____________________________________________________
Other equipment:
    Rescue 21...........................................     134,000,000
    Automatic Identification System.....................      24,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, other equipment.........................     158,000,000
                    ========================================================
                    ____________________________________________________
Shore facilities and aids to navigation facilities:
    Survey and design, shore operational and support 
      projects..........................................       1,000,000
    Minor AC&I shore construction projects..............       1,600,000
    Small arms range at ISC Honolulu, Hawaii............       1,600,000
    Waterway aids to navigation infrastructure..........         800,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, shore facilities and aids to navigation 
      facilities........................................       5,000,000
                    ========================================================
                    ____________________________________________________
Personnel and related support:
    Direct personnel costs..............................      72,500,000
    AC&I core...........................................         500,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, personnel and related support...........      73,000,000
                    ========================================================
                    ____________________________________________________
        Total...........................................    $982,200,000

      The conferees agree to bill language proposed by the 
House that requires the Secretary to annually submit to the 
Congress, with the budget request, a future years capital 
investment plan for the Coast Guard that identifies for each 
capital budget line item: (1) the proposed appropriation 
included in the budget, (2) the total estimated cost of 
completion, (3) proposed funding levels for each of the next 5 
fiscal years or until the project is completed, (4) an 
estimated completion date at the projected funding levels, and 
(5) changes from previous capital investment plans. The 
Secretary shall also ensure that amounts specified in future 
capital investment plans are consistent and that any 
inconsistencies between the capital investment plan and 
proposed appropriations are identified and justified.
      The conferees have also retained longstanding bill 
language, as proposed by the Senate, that authorizes any 
proceeds that result from the disposal of surplus real property 
be applied as offsetting collections and only available for 
Rescue 21.

                               DEEPWATER

      The conferees require the Secretary to submit to Congress 
at the time of the fiscal year 2006 budget request a new 
Deepwater baseline. This new baseline must include revised 
acquisition timelines for each asset that is necessary to 
fulfill homeland security functions or multi-agency 
procurements as identified by the Joint Requirements Council; a 
timeline and detailed justification for each new asset; a 
detailed description of the revised mission requirements and 
impact on the acquisition timeline; and funding levels for each 
asset the Coast Guard continues to believe is necessary to 
acquire as proposed by the House. The Senate has no comparable 
bill language.

                             LEGACY ASSETS

      The conferees direct the Coast Guard to report to the 
House and Senate Committees on Appropriations, within 30 days 
of enactment of this Act, on its plan for maintenance of all 
its legacy assets and the entity responsible, whether 
contractor or Coast Guard, for such maintenance and estimated 
costs, including the costs associated with each legacy asset 
and future funding requests planned by the Coast Guard. The 
Coast Guard is also directed to submit quarterly reports to the 
Committees on its actions with respect to this plan, beginning 
with the submission of the President's budget request for 
fiscal year 2006.

                       HH-65 RE-ENGINING PROJECT

      The conferees agree to provide $99,000,000 instead of 
$75,000,000 as proposed by the House and $115,000,000 as 
proposed by the Senate. In addition, the conferees direct the 
Coast Guard to reallocate to the HH-65 re-engining project: (1) 
the $4,000,000 provided in fiscal year 2003 for the development 
of a new fuel control system (FADEC), and (2) $5,700,000 
provided in fiscal year 2003 for additional 38 LTS-101-850 
engines. These funds are no longer needed for the original work 
because the current HH-65 engine is being replaced entirely by 
a different manufacturer.
      The conferees are aware that the Coast Guard's HH-65 
Dolphin helicopters are experiencing an alarming rate of engine 
failure and that the Commandant would like to re-engine these 
critical assets within a 24-month period. The conferees commend 
the Coast Guard for moving quickly to address this critical 
flight safety issue and direct that all of the funds 
appropriated for HH-65 re-engining in fiscal year 2005 and past 
legacy aircraft sustainment funds be used to accelerate the 
delivery of conversion kits and the re- engining schedule. The 
conferees believe that taking immediate and definitive action 
to return the HH-65 fleet to safe and reliable operations is 
the Coast Guard's highest aviation priority. The additional 
funding provided above the level requested in the budget shall 
be used to achieve a 24-month completion schedule. If the 
Commandant determines that the present re-engining operations 
of the Coast Guard are not capable of achieving a 24-month 
completion goal, then he shall contract with a second qualified 
facility to achieve this objective. The conferees expect any 
additional funding required to meet this schedule to be 
included in the President's fiscal year 2006 budget submission.

                      COVERT SURVEILLANCE AIRCRAFT

      The conferees agree to provide $14,000,000 for manned, 
covert, multi-sensor surveillance aircraft to perform maritime 
domain awareness missions as proposed by the House.

                            IDS PATROL BOAT

      The conferees agree to provide up to $30,000,000 for the 
IDS patrol boat in the Deepwater program. As part of Deepwater 
rebaselining, the Secretary in conjunction with the Coast Guard 
is directed to provide an analysis of operational patrol boat 
and other ship hours available over the past five years and 
over the next ten years under the rebaselined program. The 
analysis should include the hours contributed by each class of 
ship or patrol boat (fast response cutter, 110,, 123,, or a 
replacement patrol boat); a yearly retirement, conversion, and 
acquisition schedule (including costs) covering all ships and 
patrol boats; and a year by year count of the different vessels 
in the Coast Guard inventory over the timeframe requested. 
Given the current and future reliance of the Coast Guard on 
these vessels, it is imperative that the Congress has a clear 
schedule of current and outyear assets that will provide the 
requisite operational hours. This report should be provided to 
the House and Senate Committees on Appropriations no later than 
February 10, 2005.

                          AIRCRAFT DEPLOYMENTS

      The conferees direct the Coast Guard to adhere to Senate 
report language on support facilities for aircraft deployments.

                               RESCISSION

      The conferees rescind $16,000,000 from funding 
appropriated in fiscal year 2004 (Public Law 108-90) for Rescue 
21 due to contract delays and high unobligated balances.

                         Alteration of Bridges

      The conferees agree to provide $15,900,000 instead of 
$16,400,000 as proposed by the House and $15,400,000 as 
proposed by the Senate. Within this total, funds shall be 
allocated as follows:

Florida Avenue Bridge in New Orleans, Louisiana.........      $4,400,000
Chelsea Street Bridge in Chelsea, Massachusetts.........       1,000,000
Canadian Pacific Railroad Bridge in La Crosse, Wisconsin       2,000,000
Fourteen Mile Bridge, Mobile, Alabama...................       5,500,000
EJ&E Railroad Bridge in Morris, Illinois................       1,500,000
Burlington Northern Santa Fe Bridge in Burlington, Iowa.       1,500,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................      15,900,000

               Research, Development, Test and Evaluation

      The conferees agree to provide $18,500,000 as proposed by 
the Senate instead of $13,500,000 as proposed by the House 
within the Science and Technology Directorate. The conferees 
expect the Commandant of the Coast Guard to continue to 
coordinate with the Under Secretary for Science and Technology 
on research and development activities.

                              Retired Pay

      The conferees agree to provide $1,085,460,000 as proposed 
by both the House and the Senate.

                      UNITED STATES SECRET SERVICE

                         Salaries and Expenses

      The conferees agree to provide $1,172,125,000 instead of 
$1,179,125,000 as proposed by the House and $1,159,125,000 as 
proposed by the Senate. This includes: not to exceed $25,000 
for representation and reception expenses; $5,000,000, to 
remain available until expended, for Secret Service costs 
related to National Special Security Events; [$34,536,000 to 
support investigations of electronic crimes; $2,100,000 for 
forensic support to the National Center for Missing and 
Exploited Children (NCMEC) as well as a $5,000,000 grant to 
NCMEC.
      Funds shall be allocated as follows:

Protection:
    Protection of persons and facilities................    $571,640,000
    National Special Security Event Fund................       5,000,000
    Protective intelligence activities..................      53,989,000
    White House mail screening..........................      16,365,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Protection..............................     646,994,000
                    ========================================================
                    ____________________________________________________
Field Operations:
    Domestic field operations...........................     221,489,000
    International field office administration, 
      operations and training...........................      19,208,000
    Electronic crimes special agent program and 
      electronic crimes task forces.....................      34,536,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Field Operations........................     275,233,000
                    ========================================================
                    ____________________________________________________
Administration:
    Headquarters, management and administration.........     197,747,000
    National Center for Missing and Exploited Children..       7,100,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Administration..........................     204,847,000
                    ========================================================
                    ____________________________________________________
Training:
    Rowley training center..............................      45,051,000
                    ========================================================
                    ____________________________________________________
      Total, Salaries and Expenses......................  $1,172,125,000

                NATIONAL SPECIAL SECURITY EVENTS (NSSES)

      The conferees agree to provide not less than $5,000,000 
above the budget request for the Secret Service's unanticipated 
costs related to NSSEs, instead of $10,000,000 as proposed by 
the House. Funds are available until expended. The Conferees 
direct the Secret Service to budget for foreseeable costs 
related to NSSEs within its base budget. The Secret Service has 
the lead security responsibility for these events as authorized 
by Presidential Decision Directive 62 and 18 USC 3056 (e).

                 ELECTRONIC CRIMES TASK FORCES (ECTFS)

      The conferees agree to provide $34,356,000 instead of 
$36,356,000 as proposed by the House and $31,356,000 as 
proposed by the Senate. The $3,000,000 above the budget request 
is provided for the costs associated with the training and 
support of new Special Agents assigned to ECTFs. The Secret 
Service is directed to submit a deployment plan not later than 
February 8, 2005, to the House and Senate Committees on 
Appropriations, describing the staffing and other resources 
assigned to each ECTF, as specified in the House report. The 
Department is encouraged to apply any lapsed salary savings to 
fund ECTF requirements.

                           Operating Expenses

                         (RESCISSION OF FUNDS)

      The conferees rescind $750,279 of the funds provided in 
Public Law 108-11.

     Acquisition, Construction, Improvements, and Related Expenses

      The conferees agree to provide $3,633,000 as proposed by 
both the House and Senate. Funds are available until expended.

                  TITLE III--PREPAREDNESS AND RECOVERY

   Office of State and Local Government Coordination and Preparedness

      The conferees agree with the creation of the Office of 
State and Local Government Coordination and Preparedness 
(SLGCP), which merges the Office of State and Local Government 
Coordination with the Office for Domestic Preparedness (ODP). 
Administration and oversight of the following programs were 
moved to SLGCP from legacy agencies:
      Emergency Preparedness and Response Directorate.--
Metropolitan medical response system, first responder counter-
terrorism training assistance, assistance to firefighter 
grants, emergency management performance grants, state and 
local all-hazards emergency operations planning, Citizens 
Corps, interoperable communications equipment, and Community 
Emergency Response Teams.
      Office for Domestic Preparedness.--State domestic 
preparedness equipment support; law enforcement terrorism 
prevention; New York equipment replacement; national exercise 
program (TOPOFF) grants; multi-state anti-terrorism information 
exchange; terrorism early alert and strategic planning system; 
State Homeland Security Grant Program; and the Urban Area 
Security Initiative (UASI) Grant Program including UASI port 
security grants, UASI mass transit security grants, and UASI 
radiological defense systems.
      Transportation Security Administration.--Port Security 
Grants, Intercity Bus Security Grants, Operation Safe Commerce, 
and Trucking Industry Security Grants.
      The conferees understand that, while SLGCP will provide a 
single entry point for grant applications, the subject matter 
experts of those transferred grants will remain with the 
original legacy agencies. SLGCP shall continue to include these 
experts in the review of grant applications, the determination 
of eligibility, and making award determinations. The conferees 
agree that no more than 12 personnel from the Transportation 
Security Administration (TSA) and 51 personnel from the 
Emergency Preparedness and Response (EP&R) Directorate shall be 
transferred to SLGCP to assist in the administration of these 
grants.

                     MANAGEMENT AND ADMINISTRATION

      The conferees agree to provide $3,546,000 instead of 
$41,432,000 as proposed by the House and $25,000,000 as 
proposed by the Senate. Funds are provided for the management 
and administration expenses of the Office of State and Local 
Government Coordination. Management and administration expenses 
for the Office for Domestic Preparedness are provided as a 
percentage of the formula-based grants, as authorized by 
Section 1014 of the USA PATRIOT Act. Funding of not to exceed 
$2,000 is provided for official reception and representation 
expenses, as proposed by the House.

                        STATE AND LOCAL PROGRAMS

      The conferees agree to provide $3,086,300,000 instead of 
$3,423,900,000 as proposed by the House and $2,845,081,000 as 
proposed by the Senate.

Formula-Based Grants:
    Formula-Based Grants:...............................  $1,100,000,000
    Law Enforcement Terrorism Prevention Grants:........     400,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Formula-Based Grants....................   1,500,000,000
                    ========================================================
                    ____________________________________________________
Discretionary Grants:
    High-Threat, High-Density Urban Area Grants.........     885,000,000
    Rail and Transit Security Grants....................     150,000,000
    Port Security Grants................................     150,000,000
    Intercity Bus Security Grants.......................      10,000,000
    Trucking Security Grants............................       5,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Discretionary Grants....................   1,200,000,000
                    ========================================================
                    ____________________________________________________
Technology Transfer:
    Technology Transfer Program.........................      50,000,000
                    ========================================================
                    ____________________________________________________
National Programs:
    National Domestic Preparedness Consortium...........     135,000,000
    National Exercise Program...........................      52,000,000
    Metropolitan Medical Response System................      30,000,000
    Technical Assistance................................      30,000,000
    Demonstration Training Grants.......................      30,000,000
    Continuing Training Grants..........................      25,000,000
    Citizen Corps.......................................      15,000,000
    Evaluations and Assessments.........................      14,300,000
    Rural Domestic Preparedness Consortium..............       5,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, National Programs.......................   3,086,300,000
                    ========================================================
                    ____________________________________________________
        Total, State and Local Programs:................  $3,086,300,000
      The conferees view state and local jurisdictions' ability 
to detect, prevent and respond to a terrorist attack as a high 
priority. State and local responders are first to arrive on 
scene when a terrorist attack occurs and must be prepared to 
protect life and property. This function is inherently non-
federal, although federal resources and expertise are needed to 
manage the crisis, and provide support to state and local 
assets when an attack overwhelms their resources. For purposes 
of eligibility for funds under this heading, any county, city, 
village, town, district, borough, port authority, transit 
authority, intercity rail provider, commuter rail system, 
freight rail provider, water district, regional planning 
commission, council of government, Indian tribe with 
jurisdiction over Indian country, authorized tribal 
organization, Alaska Native village, independent authority, 
special district, or other political subdivision of any state 
shall constitute a ``local unit of government.''

                          FORMULA-BASED GRANTS

      The conferees agree to provide $1,100,000,000 instead of 
$1,250,000,000 as proposed by the House and $970,000,000 as 
proposed by the Senate. These funds are available to all states 
for purposes of training, procuring equipment (such as 
interoperable communications equipment), and conducting 
exercises, based on each state's approved, updated homeland 
security strategy. The conferees expect that these funds will 
be made available to states within 45 days after enactment of 
this Act, that states will have 45 days to apply after the 
grant is announced, and that SLGCP will act within 15 days of 
receipt of an application. The conferees also agree that no 
less than 80 percent of these funds shall be obligated by the 
state to local units of government within 60 days of the state 
receiving funds. None of the funds may be used for construction 
or overtime, except as provided in this Act. The conferees urge 
the Department to work with state and local governments to 
ensure that regional authorities, such as port, transit, or 
tribal authorities, are given dueconsideration in the 
distribution of state formula grants. Not to exceed 3 percent may be 
used for administrative expenses.
      The conferees are pleased with steps taken by the SLGCP 
to allow states and localities to reallocate State Homeland 
Security Grant Program funds to address emerging threats 
identified by credible assessments. The conferees understand 
that beginning with fiscal year 2004 grant funds, reallocation 
of funds for this purpose does not require prior approval by 
SLGCP, provided that reallocation of funds for activities 
pursued by states and localities are consistent with state 
homeland security strategies, within the scope of allowable 
program expenditures, and that such reallocation will be 
notified to SLGCP through the required, regularly scheduled 
programmatic report.

              LAW ENFORCEMENT TERRORISM PREVENTION GRANTS

      The conferees agree to provide $400,000,000 as proposed 
by the Senate instead of $500,000,000 as proposed by the House. 
The conferees expect that these funds will be made available to 
states within 45 days after enactment of this Act, that states 
will have 45 days to apply after the grant is announced, and 
that SLGCP will act within 15 days of receipt of an 
application. The conferees also agree that no less than 80 
percent of these funds shall be obligated by the state to local 
units of government within 60 days of the state receiving 
funds. Not to exceed 3 percent may be used for administrative 
expenses.
      Law enforcement terrorism prevention activities that 
involve compensation of overtime shall be limited to those 
specifically related to homeland security, such as providing 
expanded investigative and intelligence efforts. Funding may 
not be used to supplant ongoing, routine public safety 
activities of state and local law enforcement. State 
applications must certify that all requests for overtime comply 
with this requirement.

                          DISCRETIONARY GRANTS

      The conferees agree to provide $1,200,000,000 instead of 
$1,000,000,000 as proposed by the House and $1,328,000,000 as 
proposed by the Senate. Of these funds, $885,000,000 is made 
available to the Secretary for discretionary grants to high-
threat, high-density urban areas, instead of $900,000,000 as 
proposed by the House and $875,000,000 as proposed by the 
Senate. The Secretary shall consider credible threat, presence 
of critical infrastructure, population, vulnerability, 
cooperation of multiple jurisdictions in preparing domestic 
preparedness plans, and the identified needs of public agencies 
in determining the allocation of these funds. The conferees 
expect funds to be obligated no later than 60 days after 
enactment of the Act. The conferees also agree that no less 
than 80 percent of these funds shall be obligated by the state 
to local units of government within 60 days of the state 
receiving funds. Grants may be made to single or multiple 
jurisdictions in the same urban area. Of the funds made 
available for grants to high-threat, high-density urban areas, 
$25,000,000 is for grants to non-profit organizations 
determined by the Secretary to be at high risk of international 
terrorist attacks.
      The conferees agree that except for rail, transit, and 
port security grants, the use of grant funds for construction 
is prohibited. However, for those projects that specifically 
address enhanced security at critical infrastructure 
facilities, such as improved perimeter security, minor 
construction or renovation for necessary guard facilities, 
fencing, and related efforts, project construction or 
renovation not exceeding $1,000,000 is allowable, as deemed 
necessary by the Secretary. The conferees expect SLGCP to 
continue the practice of reimbursing eligible overtime expenses 
as designated in ODP Information Bulletin No. 127, dated August 
3, 2004.
      The conferees are aware that the Department has 
previously provided technical assistance to urban areas through 
the Urban Area Security Initiative. The conferees encourage 
SLGCP to consider urban area technical assistance requirements 
as part of normal technical assistance requests, which are 
funded under a separate account.

                     TRANSPORTATION SECURITY GRANTS

      Of the funds provided for Discretionary Grants, 
$150,000,000 is for port security grants; $150,000,000 is for 
rail, freight, and transit security grants; $10,000,000 is for 
intercity bus security grants; and $5,000,000 is for trucking 
security grants. Despite the consolidation of selected grant 
award functions within SLGCP, the conferees agree that TSA 
subject matter experts will remain within TSA and SLGCP shall 
continue to include these experts in the review of grant 
applications, the determination of eligibility, and making 
award determinations.
      The conferees are concerned that port security grants 
made to independent terminal operators are not coordinated at 
the state, local port authority, or Captain of the Port levels. 
The conferees direct that SLGCP ensure the coordination of all 
port security grants with the state, local port authority, and 
the Captain of the Port, to ensure all vested parties are aware 
of grant determinations and that the limited resources are 
maximized.
      The conferees are concerned about the lack of priority 
setting in the intercity bus grant program. It is important for 
the Department to clearly identify priorities, including the 
importance of passenger screening and terminal security, and 
focus on the unique structure of the intercity bus industry and 
the importance of fixed route service.

                      TECHNOLOGY TRANSFER PROGRAM

      The conferees agree to provide $50,000,000 as proposed by 
the House. The Senate proposed $50,000,000 under the Law 
Enforcement Terrorism Prevention Grants. The conferees are 
aware of the unique needs of jurisdictions in smaller 
communities that make it more difficult for them to identify, 
select, procure, practice and become proficient in specialized 
equipment and technology. The conferees direct SLGCP to develop 
a technology transfer program to assist smaller communities in 
acquiring and using commercially available technologies to 
prevent, deter, and respond to terrorist attacks, as identified 
in state homeland security strategies. This competitive program 
shall be a direct assistance program, not a grant program, and 
SLGCP will provide the equipment and technical assistance 
directly to the selected jurisdictions. This includes, but is 
not limited to, interoperable communications technology, 
defensive protective equipment for first responders, and 
vulnerability assessment technology appropriate to rural 
jurisdictions. A key element of this program shall be the 
provision of appropriate training and technical assistance to 
ensure effective integration of the technologies into the 
jurisdictions' response plans. This training should address the 
specialized equipment related issues found in small and rural 
communities, and solutions achieved by SLGCP's technology 
transfer program that address these issues. Of the amount 
provided, no more than $10,000,000 may be used for commercially 
available equipment testing and validation to determine 
appropriateness for inclusion in the technology transfer 
program.

                           NATIONAL PROGRAMS

      The conferees agree to provide $336,300,000 instead of 
$275,081,000 as proposed by the Senate. The House proposed 
$328,900,000 for these programs in separate accounts.

               NATIONAL DOMESTIC PREPAREDNESS CONSORTIUM

      Of the funds provided for National Programs, the 
conferees agree to provide $135,000,000 as proposed by the 
Senate instead of $130,000,000 as proposed by the House. Of 
these funds, $55,000,000 is for the Center for Domestic 
Preparedness.

                       NATIONAL EXERCISE PROGRAM

      Of the funds provided for National Programs, the 
conferees agree to provide $52,000,000 as proposed by both the 
House and Senate.

                          TECHNICAL ASSISTANCE

      Of the funds provided for National Programs, the 
conferees agree to provide $30,000,000 as proposed by the 
Senate instead of $7,600,000 as proposed by the House. Of these 
funds, $20,000,000 shall be for the Interoperable Communication 
Technical Assistance program, as proposed by the Senate. The 
House contained no similar provision.
      The conferees recognize the importance of interoperable 
communications standards, which are critical to the 
Department's efforts to improve communications nationally. 
Therefore, the Science and Technology Directorate shall 
expedite the development of these standards, and coordinate 
with SLGCP to ensure that SLGCP's technical assistance program 
incorporates these standards, as appropriate.

                  METROPOLITAN MEDICAL RESPONSE SYSTEM

      Of the funds provided for National Programs, the 
conferees agree to provide $30,000,000 instead of $50,000,000 
as proposed by the House. The Senate included no similar 
provision.

                     DEMONSTRATION TRAINING GRANTS

      Of the funds provided for National Programs, the 
conferees agree to provide $30,000,000 instead of $50,000,000 
as proposed by the House and $55,000,000 as proposed by the 
Senate. The conferees agree that these peer reviewed 
competitive grants shall be for first responder pilot and 
demonstration training projects, covering the local, regional, 
and national levels.

                       CONTINUING TRAINING GRANTS

      Of the funds provided for National Programs, the 
conferees agree to provide $25,000,000. The conferees agree to 
create this separate grant program to fund continuing first 
responder training efforts, instead of funding from a combined 
competitive training account as proposed by the House. The 
Senate contained no similar provision.

                      EVALUATIONS AND ASSESSMENTS

      Of the funds provided for National Programs, the 
conferees agree to provide $14,300,000 as proposed by the House 
instead of $3,081,000 as proposed by the Senate.

                             CITIZEN CORPS

      Of the funds provided for National Programs, the 
conferees agree to provide $15,000,000 instead of $20,000,000 
as proposed by the House and $30,000,000 as proposed by the 
Senate.

                 RURAL DOMESTIC PREPAREDNESS CONSORTIUM

      Of the funds provided for National Programs, the 
conferees agree to provide $5,000,000 for the development of a 
Rural Domestic Preparedness Consortium, as proposed by the 
House. The Senate included no similar provision. Training for 
rural first responders poses unique challenges when compared to 
their urban counterparts. This new consortium should provide a 
regional approach to rural first responder awareness level 
training, develop emerging training, and provide technical 
assistance in support of rural homeland security requirements. 
SLGCP is to provide a report to the House and Senate Committees 
on Appropriations on the creation of this consortium no later 
than January 15, 2005.

               HOMELAND SECURITY PRESIDENTIAL DIRECTIVE 8

      At the urging of both the Congress and the President, the 
Department is proceeding with a proposed plan to transition 
first responder grant programs to a risk- and threat-based 
allocation system. The conferees will monitor this progress so 
that the Congress can consider such a transition in fiscal year 
2006, with the exception of the guaranteed state minimum as 
prescribed in section 1014 of the USA PATRIOT Act of 2001. In 
this regard, the conferees direct that SLGCP continue the 
development of a universal list of first responder preparedness 
tasks, defined capabilities to accomplish those tasks grouped 
by the vulnerability of the jurisdiction, and performance 
metrics for each capability, as defined in the draft National 
Preparedness Goal. The conferees further direct SLGCP to 
establish a comprehensive rollout strategy to educate state and 
local jurisdictions on the finalized National Preparedness 
Goal. The conferees include bill language requiring SLGCP to 
provide state and local jurisdictions with nationally accepted 
preparedness levels of first responder capabilities no later 
than January 31, 2005; include in the fiscal year 2005 formula-
based grant guidance guidelines for the states to adopt 
national preparedness standards in fiscal year 2006; and issue 
final guidance on the implementation of the National 
Preparedness Goal, as required in Homeland Security 
Presidential Directive 8, no later than March 31, 2005.

                     FIREFIGHTER ASSISTANCE GRANTS

      The conferees agree to provide $715,000,000 instead of 
$650,000,000 as proposed by the House and $750,000,000 as 
proposed by the Senate. Of this amount, $65,000,000 shall be 
for firefighter staffing, as authorized by section 34 of the 
Federal Fire Prevention and Control Act of 1974, instead of 
$50,000,000 as proposed by the House. The Senate proposed 
$100,000,000 for this purpose in a separate account. Not to 
exceed 5 percent may be used for administrative expenses. Funds 
are available until September 30, 2006.
      The conferees are concerned by the Department's proposed 
shift in grant focus from all-hazards to placing priority on 
terrorism, and the proposed deletion of several eligible 
activities, specifically, wellness and fitness programs, 
emergency medical services, fire prevention programs, public 
education programs, and modifications of facilities for health 
and safety of personnel. The Department should continue the 
present practice of funding applications according to local 
priorities and those established by the United States Fire 
Administration (USFA); reinstate all previously eligible 
funding areas, continue direct funding of grants to fire 
departments and the peer review process for determining funding
 awards; and include the USFA during grant administration. The 
conferees further direct the Department to continue the 
practice of allowing the Alaska Village Initiatives to apply 
for grants on behalf of Alaskan communities, and make 
$3,000,000 available for implementation of section 205(c) of 
Public Law 108-129, the United States Fire Administration 
Reauthorization Act of 2003.

                EMERGENCY MANAGEMENT PERFORMANCE GRANTS

      The conferees agree to provide $180,000,000 instead of 
$236,000,000 as proposed by the Senate. The House proposed 
$170,000,000 under State and Local Programs. Not to exceed 3 
percent may be used for administrative expenses.
      The conferees agree that Emergency Management Performance 
Grants (EMPG) are vital to state and local emergency management 
systems, and therefore do not agree to shift from an all-
hazards to a terrorism-specific focus or to limit personnel 
expenses to 25 percent. The conferees direct the Department to 
continue funding personnel expenses without a limit and to 
continue current grant administrative practices, including 
grant allocation, in a manner identical to fiscal year 2004. 
Despite the consolidation of selected grant award functions 
within SLGCP, the conferees agree that EMPG subject matter 
experts will remain within EP&R and SLGCP shall continue to 
include these experts in the review of grant applications, 
determination of eligibility, and making award determinations. 
Furthermore, the conferees expect the EP&R regional emergency 
managers' relationship with state and local governments to 
continue.

                         Counterterrorism Fund

      The conferees agree to provide $8,000,000 instead of 
$10,000,000 as proposed by both the House and Senate. Funds are 
available until expended. The Secretary shall notify the House 
and Senate Committees on Appropriations 15 days prior to 
obligation of these funds.

                  Emergency Preparedness and Response

 OFFICE OF THE UNDER SECRETARY FOR EMERGENCY PREPAREDNESS AND RESPONSE

      The conferees agree to provide $4,211,000 as proposed by 
both the House and Senate.
      The conferees direct the Emergency Preparedness and 
Response (EP&R) Directorate to continue the practice of making 
balances from funds appropriated for disaster relief for the 
terrorist attacks of September 11, 2001, available to New York 
State at the request of the Governor of New York in 
coordination with the Mayor of New York City. Of the amounts 
available, $4,450,000 shall be for Project Liberty for 
personnel, families, and retirees of the New York City Fire 
Department and New York City Police Department, if requested by 
the Governor of New York.

            PREPAREDNESS, MITIGATION, RESPONSE, AND RECOVERY

      The conferees agree to provide $239,499,000 instead of 
$210,499,000 as proposed by the House and $231,499,000 as 
proposed by the Senate.

                        URBAN SEARCH AND RESCUE

      Of the funds provided for Preparedness, Mitigation, 
Response, and Recovery, the conferees agree to provide 
$30,000,000 for Urban Search and Rescue Teams as proposed by 
the Senate, instead of $7,000,000 as proposed by the House. Not 
to exceed 3 percent may be used for administrative expenses.

                         EMERGENCY HOUSING PLAN

      Of the funds provided for Preparedness, Mitigation, 
Response, and Recovery, the conferees agree to provide 
$2,000,000, as proposed by the House, in support of EP&R's 
emergency housing plan to evaluate and deploy new housing 
solutions which can be used in conjunction with traditional 
response and recovery solutions. These new solutions shall be 
collapsible so that they may stack for economical shipping and 
storage, expand during assembly to increase usable space, be 
sturdy enough to ensure multiple reuse in future deployments, 
and address both housing and other infrastructure needs. In 
light of recent natural disasters, the conferees and EP&R 
believe this evaluation of new housing and infrastructure 
solutions is very timely. The conferees direct a report on the 
evaluation and deployment of these new housing solutions be 
submitted to the House and Senate Appropriations Committees no 
later than January 14, 2005, and that emergency housing and 
infrastructure requirements be submitted with the fiscal year 
2006 budget request.

               NATIONAL INCIDENT MANAGEMENT SYSTEM (NIMS)

      Of the funds provided for Preparedness, Mitigation, 
Response, and Recovery, the conferees agree to provide 
$15,000,000 instead of $7,000,000 as proposed by both the House 
and Senate. The conferees expect the Department to implement a 
program concept for the NIMS Integration Center (NIC) that is 
anchored in multiple locations serving regional interests. As 
part of the NIMS mission the conferees strongly encourage the 
Department to establish regional centers to facilitate the 
development and deployment of NIMS training, education and 
publications.

         MINORITY EMERGENCY PREPAREDNESS DEMONSTRATION PROGRAM

      The conferees continue to be concerned with EP&R's slow 
progress in the implementation of the Minority Emergency 
Preparedness Demonstration Program. Notwithstanding the draft 
outline for such a program shared with the Committees earlier 
this year and the direction of the Committees over the past 
three years to implement this program, EP&R has not acted. The 
conferees direct EP&R to develop a pilot program for socio-
economically disadvantaged communities and underrepresented 
members of the population that assesses and analyzes the 
preparation and response of these communities and individuals 
to a widespread disaster affecting multiple states and regions. 
The program should utilize information gathered from 
organizations such as community based organizations, faith-
based institutions, historically black colleges and 
universities, and private organizations and businesses serving 
socio-economically disadvantaged communities and 
underrepresented populations. The Department is directed to 
implement this pilot program no later than December 1, 2004; if 
this program is not implemented by December 1, 2004, the 
Secretary is to provide a written justification to the House 
and Senate Committees on Appropriations as to why this 
direction is not being followed.

                             SHOCKOE CREEK

      The conferees direct EP&R to conduct an investigation of 
the Shockoe Creek drain field in Richmond, Virginia, to 
determine means of preventing future damage in that area from 
floods and other natural disasters.

                           OPERATING EXPENSES

                         (RESCISSION OF FUNDS)

      The conferees rescind $5,000,000 of the funds provided by 
Public Law 108-11.

                 ADMINISTRATIVE AND REGIONAL OPERATIONS

      The conferees agree to provide $202,939,000 instead of 
$203,939,000 as proposed by the House and $196,939,000 as 
proposed by the Senate. Within these funds, the conferees agree 
to provide $6,000,000 for the Document Management Support 
Program, instead of $7,000,000 as proposed by the House. 
Funding of not to exceed $3,000 is provided for official 
reception and representation funds as proposed by the Senate 
instead of $4,000 as proposed by the House.

                         PUBLIC HEALTH PROGRAMS

      The conferees agree to provide $34,000,000 as proposed by 
both the House and Senate.

                       BIODEFENSE COUNTERMEASURES

      The conferees agree with the budget estimate to make 
available in fiscal year 2005 $2,528,000,000 in obligation 
authority for fiscal years 2005-2008 pursuant to Public Law 
108-90.

              RADIOLOGICAL EMERGENCY PREPAREDNESS PROGRAM

      The conferees agree to provide for the receipt and 
expenditure of fees collected, as authorized by Public Law 105-
276, as proposed by both the House and Senate.

                            DISASTER RELIEF

      The conferees agree to provide $2,042,380,000 as proposed 
by the House instead of $2,221,000,000 as proposed by the 
Senate. The conferees do not agree to include $70,000,000 in 
emergency funding for the American Red Cross, as proposed by 
the Senate. These funds are addressed in the fiscal year 2004 
emergency supplemental, as requested by the President on 
September 14, 2004.
      The conferees direct the Under Secretary for Emergency 
Preparedness and Response to place special emphasis on the 
recruitment of American Indians, Alaska Natives, Native 
Hawaiians, and other minorities for positions within Disaster 
Assistance Employee cadres maintained by EP&R. The Under 
Secretary shall provide to the House and Senate Committees on 
Appropriations a report no later than 100 days after enactment 
of this Act which assesses the representation of American 
Indians, Alaska Natives, Native Hawaiians, and other minorities 
in the Disaster Assistance Employee cadres. The report should 
also identify recruitment strategies to increase the 
representation of such individuals in the cadres.

            DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT

      The conferees agree to provide $567,000 for 
administrative expenses as proposed by both the House and 
Senate. Gross obligations for the principal amount of direct 
loans shall not exceed $25,000,000 as proposed by both the 
House and Senate.

                      FLOOD MAP MODERNIZATION FUND

      The conferees agree to provide $200,000,000 as proposed 
by the Senate instead of $150,000,000 as proposed by the House. 
The conferees do not agree to Senate report language regarding 
the National Service Provider.

                     NATIONAL FLOOD INSURANCE FUND

                     (INCLUDING TRANSFER OF FUNDS)

      The conferees agree to provide $33,336,000 for salaries 
and expenses as proposed by both the House and Senate. The 
conferees further agree to provide up to $79,257,000 for flood 
mitigation activities and limitations of $55,000,000 for 
operating expenses, $562,881,000 for agents' commissions and 
taxes, and $30,000,000 for interest on Treasury borrowings as 
proposed by both the House and Senate.

                     NATIONAL FLOOD MITIGATION FUND

      The conferees agree to provide $20,000,000 by transfer 
from the National Flood Insurance Fund as proposed by the 
House. The Senate proposed $20,000,000 for flood mitigation by 
transfer under Mitigation Grant Programs. Funds are available 
until September 30, 2006.

                 NATIONAL PRE-DISASTER MITIGATION FUND

      The conferees agree to provide $100,000,000 as proposed 
by the House. The Senate proposed $150,000,000 for pre-disaster 
mitigation under Mitigation Grant Programs. Not to exceed 3 
percent may be used for administrative expenses. Funds are 
available until expended.
      The conferees are concerned by EP&R's slow progress in 
awarding fiscal year 2003 pre-disaster mitigation grants. These 
grants were only recently awarded and an excessive unobligated 
balance remains. The conferees direct EP&R to report no later 
than February 15, 2005, on any changes it intends to make in 
future grants, including an expeditious and reasonable 
obligation plan for awarding all unobligated funds. The report 
shall also describe feedback received from state hazard 
mitigation officers and an assessment of ways to streamline the 
application and award process.

                       EMERGENCY FOOD AND SHELTER

      The conferees agree to provide $153,000,000 as proposed 
by both the House and Senate. Not to exceed 3.5 percent may be 
used for administrative expenses. Funds are available until 
expended.

  TITLE IV--RESEARCH, DEVELOPMENT, TRAINING, ASSESSMENTS, AND SERVICES

                  Citizenship and Immigration Services

                         SALARIES AND EXPENSES

      The conferees agree to provide $160,000,000, as proposed 
by the House, instead of $140,000,000 as proposed by the 
Senate. This includes $140,000,000 for backlog elimination, as 
well as $20,000,000 for the historical records project to 
convert immigration records into an electronic, digitally-
accessible format.
      The conferees direct that no funding for the historical 
record project may be obligated until U.S. Citizenship and 
Immigration Services (CIS) submits a detailed expenditure plan 
to the House and Senate Committees on Appropriations for 
approval. Current estimates of examination fee collections, 
which constitute the majority of offsetting resources for CIS 
are $1,571,000,000. The conferees direct that not to exceed 
$5,000 of these collections shall be for official reception and 
representation expenses, as proposed by the House.
      The following table specifies funding by budget activity, 
and includes both direct appropriations and estimated 
collections:

Adjudication Services (fee accounts):
    Pay and Benefits....................................    $561,000,000
    Operating Expenses:
        District Operations.............................     284,000,000
        Service Center Operations.......................     217,000,000
        Asylum, Refugee, and International Operations...      73,000,000
        Records Operations..............................      65,000,000
                    --------------------------------------------------------
                    ____________________________________________________
          Total, Adjudication Services..................   1,200,000,000
                    ========================================================
                    ____________________________________________________
Backlog Reduction Initiatives (Direct Appropriations):
    Contracting Services................................     120,000,000
    Other...............................................      20,000,000
    Digitization........................................      20,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, Backlog Reduction Initiatives..............     160,000,000
                    ========================================================
                    ____________________________________________________
Information and Customer Services (fee accounts):
    Pay and Benefits....................................      78,000,000
    Operating Expenses:
        National Customer Service Center................      46,000,000
        Information Services............................      14,000,000
                    --------------------------------------------------------
                    ____________________________________________________
          Total, Information and Customer Services......     138,000,000
                    ========================================================
                    ____________________________________________________
Administration (fee accounts):
    Pay and Benefits....................................      43,000,000
    Operating Expenses..................................     190,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, Administration.............................     233,000,000
                    ========================================================
                    ____________________________________________________
        Total, Citizenship and Immigration Services.....   1,731,000,000

                        REGIONAL SERVICE CENTERS

      The conferees direct the Department to evaluate the 
distribution of staff and resources among the four CIS regional 
service centers, and submit a report no later than December 1, 
2004, with recommendations to normalize the petition processing 
times across the regional centers.

                             BENEFIT FRAUD

      The conferees have agreed to the Administration's request 
to increase the resources available for benefit fraud 
enforcement by decreasing the funds available to Immigration 
and Customs Enforcement (ICE) from the examinations fee 
account, and leaving those resources available to CIS, as 
proposed in the House report. These resources are to fund the 
Office of Fraud Detection and National Security (FDNS) Unit, as 
called for by the Government Accountability Office. The FDNS 
unit is responsible for developing, implementing, directing, 
and overseeing the joint CIS-ICE anti-fraud initiative, and 
conducting law enforcement/background checks on every 
applicant, beneficiary, and petitioner prior to granting any 
immigration benefits. CIS is to report by July 1, 2005, to the 
House and Senate Committees on Appropriations on the progress 
in implementing the joint anti-fraud initiative.

            Federal Law Enforcement Training Center (FLETC)

                         SALARIES AND EXPENSES

      The conferees agree to provide $177,440,000 instead of 
$183,440,000 as proposed by the House and $181,440,000 as 
proposed by the Senate. Funds above the budget request include 
a transfer of $21,000,000 for the Charleston, South Carolina, 
training facility. The conferees do not provide $2,000,000, as 
requested, for the transfer of the CBP Advanced Training 
Facility. At the department's request, the conferees do not 
include $2,000,000 for the pay for performance demonstration 
project.

     ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED EXPENSES

      The conferees agree to provide $44,917,000, instead of 
$37,917,000 as proposed by the House and $42,917,000 as 
proposed by the Senate. Funds above the budget request include 
$5,000,000 for renovation and construction needs at the 
Artesia, New Mexico, training center, as proposed by the 
Senate, and $2,000,000 for renovation and construction needs at 
the Charleston, South Carolina, training center.

                         FACILITIES MASTER PLAN

      An updated facilities Master Plan that identifies 
unfunded training facilities construction and renovation needs 
has not been submitted to the House and Senate Committees on 
Appropriations. The conferees direct FLETC to submit an updated 
Master Plan with the fiscal year 2006 budget request.

           Information Analysis and Infrastructure Protection

                     Management and Administration

      The conferees agree to provide $132,064,000 for 
management and administration to support 803 full-time 
equivalent positions as proposed by the House instead of 
$137,064,000 as proposed by the Senate. This includes 
$5,864,000 for the Office of the Under Secretary and 
$126,200,000 for other salaries and expenses. Funding of 
$35,000,000 for the Homeland Security Operations Center is 
funded under Assessments and Evaluation as proposed by the 
House. Within the amounts provided, not to exceed $5,000 is 
available for official reception and representation expenses as 
proposed by the House. The Senate proposed $20,000 in the 
Assessments and Evaluations account.
      The conferees agree to provide $22,940,000 for protective 
security field operations and expect that the deployment of 
personnel will be executed in accordance with direction 
provided in the House report.

                      Assessments and Evaluations

      The conferees agree to provide $761,644,000 instead of 
$722,512,000 as proposed by the House and $718,512,000 as 
proposed by the Senate. Funds are available until September 30, 
2006. Funding is allocated as follows:
        Program                                                   Amount
Critical infrastructure outreach & partnerships.........    $106,592,000
Critical infrastructure identification and evaluation...      77,861,000
National infrastructure simulation and analysis center 
    (NISAC).............................................      20,000,000
Protective actions......................................     191,647,000
Biosurveillance.........................................      11,000,000
Cyber security..........................................      67,380,000
National security emergency preparedness 
    telecommunications..................................     140,754,000
Competitive analysis and evaluation.....................       4,000,000
Threat determination and assessment.....................      21,943,000
Infrastructure vulnerability and risk assessment........      71,080,000
Evaluation and studies..................................      14,387,000
Homeland security operations center.....................      35,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, Assessments and Evaluations................     761,644,000

      The conferees have included up to $3,000,000 for the 
Under Secretary of Information Analysis and Infrastructure 
Protection (IAIP) to complete an analysis of whether the 
Department should require private sector entities to provide 
IAIP existing information about their security measures and 
vulnerabilities in order to improve IAIP's ability to evaluate 
critical infrastructure protections nationwide. The analysis 
should include all critical infrastructure, including chemical 
plants, evaluate the costs to the private sector for 
implementing such a requirement, the benefits of securing the 
information, and costs to IAIP to implement this requirement. 
The conferees direct the Government Accountability Office to 
review the quality of IAIP's analysis and report to the House 
and Senate Committees on Appropriations within three months 
after the analysis is complete.
      The conferees have included bill language requiring the 
Under Secretary for IAIP to provide a quarterly report to the 
House and Senate Committees on Appropriations on all sole-
source contractual agreements. The report shall include a 
listing of all sole-source contracts entered into, the 
recipient, the purpose of the contract, and a detailed 
explanation of why the competitive process was not followed. 
The conferees direct that the first report be submitted by 
November 15, 2004, and subsequent reports be submitted no later 
than 30 days following the completion of each quarter of the 
fiscal year.

           CRITICAL INFRASTRUCTURE OUTREACH AND PARTNERSHIPS

      The conferees agree to provide $106,592,000 instead of 
$91,592,000 as proposed by the Senate and $71,592,000 as 
proposed by the House.
      The conferees agree to provide $35,000,000 for computer 
hosting of departmental applications, network connectivity, and 
critical data storage under the direction of the Department's 
Chief Information Officer.

         CRITICAL INFRASTRUCTURE IDENTIFICATION AND EVALUATION

      The conferees agree to provide $77,861,000 as proposed by 
the House, instead of $64,730,000 as proposed by the Senate.

         NATIONAL INFRASTRUCTURE SIMULATION AND ANALYSIS CENTER

      The conferees agree to provide $20,000,000 instead of 
$16,000,000 as proposed by the House and $23,105,000 as 
proposed by the Senate.
      The conferees direct the Protective Security Division to 
obligate funds previously made available by Public Law 108-7 
for the NISAC at the earliest date possible.

                           PROTECTIVE ACTIONS

      The conferees agree to provide $191,647,000 as proposed 
by the House instead of $193,673,000 as proposed by the Senate.

                        NATIONAL ASSET DATABASE

      The conferees are aware that the National Asset Database 
(NADB), an inventory of the nation's critical infrastructure 
and key resources compiled from federal, state, local, and 
private sector input, now includes information on approximately 
30,000 assets, some 2,000 of which are considered of critical 
importance. Although IAIP continues to populate and refine the 
NADB, the Protective Security Division (PSD) has already begun 
completing Buffer Zone Protection Plans (BZPPs) for the sites 
it contains. These BZPPs are efforts to reduce vulnerabilities 
by extending the protected area from the critical 
infrastructure site out into the community. The conferees 
strongly support this initiative, and direct PSD to complete 
BZPPs for all critical assets in the NADB by the end of fiscal 
year 2005.

                         RAIL CORRIDOR SECURITY

      The conferees are aware that security measures are being 
implemented to improve the security of the Washington, DC, rail 
corridor through the cooperative efforts of freight rail 
operators, local law enforcement and first responders, and the 
federal government with the objective of reducing the risk of a 
terrorist attack on rail cars carrying hazardous materials. The 
conferees direct PSD to use existing resources within 
Protective Actions to begin applying this concept to other 
major metropolitan areas.

           DEVELOPMENT OF PROTOCOLS, POLICIES AND PROCEDURES

      While the conferees are supportive of the efforts of IAIP 
to implement protective measures using the funds provided 
within Protective Actions, the conferees are concerned about 
the lack of written protocols, policies, and procedures 
governing the use of these funds. The conferees believe that 
without such guidelines, there exists the potential for 
duplication of effort between this account and other funding 
sources, such as grant programs within the Office of State and 
Local Government Coordination and Preparedness, as well as the 
possibility that funds could be used in ways that might not be 
consistent with the overall goals of the Department's critical 
infrastructure protection efforts. In addition to the funds 
provided in the Act, the conferees are aware of unobligated 
balances that remain available for these purposes from prior 
year appropriations. The conferees direct IAIP to develop 
appropriate written guidelines for the use of Protective 
Actions funds for buffer zone protection plans and grants that 
preserve needed flexibility, while preventing potential 
duplication or misapplication, and to provide a report 
regarding this policy to the House and Senate Committees on 
Appropriations no later than November 30, 2004.

                             CYBER SECURITY

      The conferees agree to provide $67,380,000 as proposed by 
both the House and the Senate. The conferees agree to include 
$3,500,000 for ``live wire'' cyber exercises to build upon 
previous similar terrorist attacks on the Nation's cyber 
infrastructure to demonstrate the impact of a cyber-based 
attack on critical infrastructures and to highlight the 
interdependencies among critical infrastructures and underscore 
the requirement for enhanced cross-sector cooperation.
      The conferees support the National Cyber Security 
Division's (NCSD) efforts to monitor, predict, and prevent 
cyber attacks, and to minimize the damage and efficiently 
recover from attacks. The conferees encourage the NCSD to 
identify, assess, and implement preventative measures with 
organizations providing public health needs.

                  COMPETITIVE ANALYSIS AND EVALUATION

      The conferees agree to provide $4,000,000 instead of 
$3,868,000 as proposed by the House and $18,868,000 as proposed 
by the Senate.

                  HOMELAND SECURITY OPERATIONS CENTER

      The conferees agree to provide $35,000,000 as proposed by 
the House. Funding of $35,000,000 for the Homeland Security 
Operations Center was proposed by the Senate under the 
Management and Administration account.

                            NATIONAL ALERTS

      The conferees support the Department's use of the 
National Oceanic and Atmospheric Administration (NOAA) all-
hazards weather radio system as the foundation for the Homeland 
Security Advisory System and provide $10,000,000 for fiscal 
year 2005, the same amount provided in fiscal year 2004. These 
funds are for the distribution of NOAA radios to schools 
throughout the country on a priority basis and for satellite, 
digital broadcast, and other advanced technologies to 
disseminate vital warning information to ensure that the 
general public can moreeffectively be warned about terrorist 
threats and other emergencies. For fiscal year 2004 and fiscal year 
2005 funds, the conferees expect the Department to adhere to Section 
102(b)(2) of Public Law 107-296 in purchasing and distributing the NOAA 
radios to schools as deemed appropriate by the Secretary.
      The conferees direct the Secretary to work with the 
Chairman of the Federal Communications Commission to develop a 
legislative solution for a universal system for broadcasting 
national alerts. This will alleviate the need for separate 
negotiations between the Department and radio broadcasters, 
television broadcasters, and other telecommunications 
providers.

                      Science and Technology (S&T)

                     Management and Administration

      The conferees agree to provide $68,586,000 for management 
and administration to include 320 full-time equivalent 
positions as proposed by the House, instead of $42,550,000 as 
proposed by the Senate. Within the amounts provided, not to 
exceed $3,000 is available for official reception and 
representation expenses. The funding includes $6,315,000 for 
the immediate Office of the Under Secretary and $62,271,000 for 
other salaries and expenses. The conferees consolidate all 
salary expenses in one account and the recommendation reflects 
the salaries and expenses for laboratory facilities, including 
the National Biodefense Analysis and Countermeasures Center 
(NBACC), the Plum Island Animal Disease Center and the 
Environmental Measurements Laboratory previously funded under 
S&T's program account.
      The conferees are concerned about the substantial lack of 
communication within the management of S&T, which has resulted 
in misinformation being provided to Congress. The conferees 
strongly encourage S&T to review their management practices to 
improve upon internal communications. The conferees believe S&T 
should move expeditiously to develop a policy regarding the use 
of national laboratories, and direct S&T to report to the House 
and Senate Committees on Appropriations on this policy no later 
than October 15, 2004.

           Research, Development, Acquisition, and Operations

      The conferees agree to provide $1,046,864,000 instead of 
$1,063,713,000 as proposed by the House and $1,016,647,000 as 
proposed by the Senate. Funds are allocated as follows:
                                                                  Amount
Biological countermeasures..............................    $362,650,000
Nuclear and radiological countermeasures................     122,614,000
Chemical countermeasures................................      53,000,000
High explosives countermeasures.........................      19,700,000
Threat and vulnerability, testing and assessment........      65,800,000
Critical infrastructure protection......................      27,000,000
Conventional missions in support of DHS.................      54,650,000
      (total includes transfers from consolidated 
      transferred accounts).............................
Rapid prototyping program...............................      76,000,000
Standards...............................................      39,700,000
Emerging threats........................................      10,750,000
University programs/Homeland security fellowship 
    programs............................................      70,000,000
Consolidated transferred accounts.......................
National Biodefense Analysis & Countermeasures Center...      35,000,000
Counter MANPADS.........................................      61,000,000
SAFETY Act..............................................      10,000,000
Cyber Security..........................................      18,000,000
Interoperability and communications.....................      21,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, Research, development, acquisition, and 
      operations........................................   1,046,864,000

                       BIOLOGICAL COUNTERMEASURES

      The conferees agree to provide $362,650,000 as proposed 
by the House instead of $346,310,000 as proposed by the Senate. 
This funding level supports the budget request for the 
individual programs within biological countermeasures with the 
following exceptions: $9,350,000 is transferred to management 
and administration for salaries and expenses; and $35,000,000 
for the NBACC is funded as a separate program.

                NUCLEAR AND RADIOLOGICAL COUNTERMEASURES

      The conferees agree to provide $122,614,000 as proposed 
by the House instead of $127,810,000 as proposed by the Senate; 
$6,686,000 is transferred to management and administration for 
salaries and expenses.

                        CHEMICAL COUNTERMEASURES

      The conferees agree to provide $53,000,000 as proposed by 
the House instead of $52,400,000 as proposed by the Senate.

                     HIGH EXPLOSIVE COUNTERMEASURES

      The conferees agree to provide $19,700,000 instead of 
$9,700,000 as proposed by the House and $33,590,000 as proposed 
by the Senate. The conferees include $10,000,000 to develop and 
conduct simulated real-world exercises to validate a training 
program for the use of commercially-available equipment against 
suicide bombers in commuter and passenger rail environments.

            THREAT AND VULNERABILITY, TESTING AND ASSESSMENT

      The conferees agree to provide $65,800,000 instead of 
$68,900,000 as proposed by the House and $68,100,000 as 
proposed by the Senate.

                   CRITICAL INFRASTRUCTURE PROTECTION

      The conferees agree to provide $27,000,000 as proposed by 
the House, instead of $14,830,000 as proposed by the Senate. 
The conferees provide $12,000,000 to support existing work in 
research and development and application of technology for 
community based critical infrastructure protection efforts.

                CONVENTIONAL MISSIONS IN SUPPORT OF DHS

      The conferees agree to provide $54,650,000 instead of 
$44,000,000 as proposed by the House and $34,000,000 as 
proposed by the Senate. The conferees agree to merge this 
account with the consolidated transferred accounts, as proposed 
by the Senate. Additionally, the conferees provide $10,000,000 
to support the container security initiative, to accelerate the 
development of advanced sensors, and begin development of the 
Advanced Container Information Network in a joint U.S., 
international, and industry effort, as proposed by the House. 
The conference agreement includes $10,650,000 transferred from 
the consolidated transferred accounts as proposed by the 
Senate, instead of $24,150,000 as proposed by the House in a 
separate account. Funding is allocated as follows:

                                                                  Amount
Emergency Preparedness and Response.....................      $9,650,000
Border Transportation and Security......................      23,000,000
Secret Service..........................................       2,000,000
Federal Air Marshals....................................      10,000,000
Container security initiative...........................      10,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, Conventional Missions......................      54,650,000

                           RAPID PROTOTYPING

      The conferees agree to provide $76,000,000 as proposed by 
the House instead of $75,120,000 as proposed by the Senate.

                               STANDARDS

      The conferees agree to provide $39,700,000 instead of 
$39,699,000 as proposed by the House and $39,239,000 as 
proposed by the Senate.

                            EMERGING THREATS

      The conferees agree to provide $10,750,000 as proposed by 
the Senate instead of $21,000,000 as proposed by the House.

                UNIVERSITY PROGRAMS/FELLOWSHIP PROGRAMS

      The conferees agree to provide $70,000,000 as proposed by 
the House instead of $69,048,000 as proposed by the Senate.

                   CONSOLIDATED TRANSFERRED ACCOUNTS

      The conferees include no funding for consolidated 
transferred accounts. For these activities, $10,650,000 is 
provided under conventional missions in support of the 
Department as proposed by the Senate instead of $24,150,000 as 
proposed by the House in a stand-alone account. The conferees 
agree to fund Coast Guard research, development, test, and 
evaluation under Coast Guard as proposed by the Senate instead 
of within S&T as proposed by the House.

                       SAFETY ACT IMPLEMENTATION

      The conferees support the language in the House report 
that establishes an office to implement the requirements of the 
``Support Anti-terrorism by Fostering Effective Technologies 
Act of 2002'', (SAFETY Act), and directs S&T to streamline the 
application process and expedite approvals. The conferees 
further direct the SAFETY Act Implementation Office to provide 
a written report no later than January 1, 2005, to the House 
and Senate Committees on Appropriations that describes the 
process and procedure for prioritizing and reviewing SAFETY Act 
applications.

                  INTEROPERABILITY AND COMMUNICATIONS

      The conferees agree to provide $21,000,000 as proposed by 
the House, instead of $11,000,000 as proposed by the Senate.

                      TITLE V--GENERAL PROVISIONS

      Section 501. The conferees continue a provision that no 
part of any appropriation shall remain available for obligation 
beyond the current fiscal year unless expressly provided.
      Section 502. The conferees continue a provision that 
unexpended balances of prior appropriations may be merged with 
new appropriations accounts and used for the same purpose, 
subject to reprogramming guidelines.
      Section 503. The conferees continue and modify a 
provision that provides authority to reprogram appropriations 
within an account and to transfer not to exceed 5 percent 
between appropriations accounts with 15-day advance 
notification of the House and Senate Committees on 
Appropriations. A detailed funding table identifying each 
Congressional control level for reprogramming purposes is 
included at the end of this Report. These reprogramming 
guidelines shall be complied with by all agencies funded by the 
Department of Homeland Security Appropriations Act, 2005.
      The conferees expect the Department to submit 
reprogramming requests on a timely basis, and to provide 
complete explanations of the reallocations proposed, including 
detailed justifications of the increases and offsets, and any 
specific impact the proposed changes will have on the budget 
request for the following fiscal year and future-year 
appropriations requirements. Each request submitted to the 
House and Senate Committees should include a detailed table 
showing the proposed revisions at the account, program, 
project, and activity level to the funding and staffing (full-
time equivalent position) levels for the current fiscal year 
and to the levels requested in the President's budget for the 
following fiscal year.
      The conferees expect the Department to manage its 
programs and activities within the levels appropriated. The 
conferees are concerned with the number of reprogramming 
proposals submitted for consideration by the Department and 
remind the Department that reprogramming or transfer requests 
should be submitted only in the case of an unforeseeable 
emergency, or a situation that could not have been predicted 
when formulating the budget request for the current fiscal 
year. Further, the conferees note that when the Department 
submits a reprogramming or transfer request to the Committees 
on Appropriations and does not receive identical responses from 
the House and Senate, it is the responsibility of the 
Department to reconcile the House and Senate differences before 
proceeding, and if reconciliation is not possible, to consider 
the reprogramming or transfer request unapproved.
      The conferees would also like to clarify that this 
section applies to the Department's Working Capital Fund and 
that no funds may be obligated from the Working Capital Fund to 
fund programs, projects, or activities for which appropriations 
have been specifically rejected by the Congress, to initiate 
new programs or activities, or to augment the funds or 
personnel for any program, project, or activity above the 
levels appropriated by this Act.
      The Department is not to propose a reprogramming or 
transfer of funds after June 30th unless there are exceptional 
or extraordinary circumstances such that lives or property are 
placed in imminent danger.
      Section 504. The conferees continue a provision that not 
to exceed 50 percent of unobligated balances remaining at the 
end of fiscal year 2005 from appropriations made for salaries 
and expenses shall remain available through fiscal year 2006 
subject to reprogramming guidelines.
      Section 505. The conferees continue a provision that 
provides that funds for intelligence activities are deemed to 
be specifically authorized during fiscal year 2005 until the 
enactment of an Act authorizing intelligence activities for 
fiscal year 2005.
      Section 506. The conferees continue a provision that 
directs FLETC to establish an accrediting body to establish 
standards for assessing federal law enforcement training 
programs, facilities, and instructors.
      Section 507. The conferees continue and modify a 
provision that requires notification of the House and Senate 
Committees on Appropriations 3 business days before any grant 
allocation, discretionary grant award, discretionary contract 
award, or letter of intent totaling $1,000,000 or more is 
announced by the Department.
      Section 508. The conferees modify and continue a 
provision that no agency shall purchase, construct, or lease 
additional facilities for federal law enforcement training 
without advance approval of the House and Senate Committees on 
Appropriations.
      Section 509. The conferees modify and continue a 
provision that FLETC shall schedule basic and/or advanced law 
enforcement training at all four training facilities under its 
control to ensure that these training centers are operated at 
the highest capacity.
      Section 510. The conferees continue a provision that none 
of the funds may be used for any construction, repair, 
alteration, or acquisition project for which a prospectus, if 
required by the Public Buildings Act of 1959, has not been 
approved.
      Section 511. The conferees continue and make permanent a 
provision that none of the funds may be used to require airport 
sponsors to provide building modifications, utilities and 
expenses, or space to the TSA without cost for services related 
to aviation security.
      Section 512. The conferees continue a provision that none 
of the funds may be used in contravention of the Buy American 
Act.
      Section 513. The conferees continue and modify a 
provision that directs the Department to research, develop, and 
procure certified systems to inspect and screen air cargo on 
passenger aircraft at the earliest date possible, to enhance 
the known shipper program, and to triple the percentage of 
cargo inspected on passenger aircraft. TSA shall require cargo 
screened on passenger aircraft to meet the tripling threshold 
as measured by the average percentage of cargo inspected per 
day, per airline, per airport. The current minimum per flight 
shall also be maintained.
      Section 514. The conferees include a new provision that 
directs the Commandant of the Coast Guard to provide to 
Congress a list of approved but unfunded priorities each year 
at the time that the President's budget is submitted, as 
proposed by the House.
      Section 515. The conferees include a new provision that 
amends title 49 of the United States Code to provide for the 
disposition of unclaimed money recovered at airport security 
checkpoints, as proposed by the House.
      Section 516. The conferees include a new provision that 
allows TSA to impose a reasonable charge for the lease of real 
and personal property to TSA employees, as proposed by the 
House.
      Section 517. The conferees include a new provision that 
directs that the acquisition management system of TSA be 
applied to the acquisition of services, equipment, supplies, 
and materials, as proposed by the House.
      Section 518. The conferees include a new provision 
related to the transfer of the authority to conduct background 
investigations from the Office of Personnel Management to the 
Department, as proposed by the House and modified by the 
conferees. The conferees are concerned by delays in personnel 
security and suitability background investigations, update 
investigations and periodic reinvestigations for Departmental 
employees and, in particular for positions within the Office of 
the Secretary and Executive Management and the Directorates of 
Science and Technology and Information Analysis and 
Infrastructure Protection. The conferees direct that this 
authority be used to expeditiously process background 
investigations, including updates and reinvestigations, as 
necessary.
      Section 519. The conferees include a new provision that 
amends the Homeland Security Act to provide for the termination 
of the Homeland Security Institute 5 years after its 
establishment, as proposed by the House.
      Section 520. The conferees include a new provision that 
amends the Homeland Security Act so that of the original 
members of the Advisory Committee, one class of six shall have 
a term of 1 year, one class of seven a term of 2 years, and one 
class of seven a term of 3 years, as proposed by the House.
      Section 521. The conferees include a new provision that 
exempts funds appropriated under paragraphs (1) and (2) of the 
State and Local Programs heading under Title III of this Act 
from the provisions of the Cash Management Improvement Act, as 
proposed by the House.
      Section 522. The conferees continue and modify a 
provision that prohibits the use of funds for deployment or 
implementation of CAPPS II, Secure Flight, or other follow on/
successor programs until certain conditions are met.
      Section 523. The conferees include a new provision that 
amends the Homeland Security Act to clarify the provision on 
contracting with foreign entities, as proposed by the House and 
Senate.
      Section 524. The conferees include a new provision that 
directs that none of the funds may be used to amend the oath of 
allegiance required by section 337 of the Immigration and 
Nationality Act (8 U.S.C. 1448), as proposed by the House and 
the Senate.
      Section 525. The conferees include a new provision 
setting the fiscal year 2004 overtime limitation at $30,000 for 
Customs and Border Protection (CBP), as proposed by the Senate. 
The conferees modify the Senate language to eliminate 
reductions to CBP's salaries and expenses appropriation.
      Section 526. The conferees include a new provision 
regarding notifications.
      Section 527. The conferees include a new provision 
regarding competitive sourcing, as proposed by the House. The 
Senate bill contained a similar provision.
      Section 528. The conferees include a new provision that 
none of the funds may be used to alter the Secret Service from 
being anything but a distinct entity within the Department, to 
merge the Secret Service with any other agency or department 
function, or to alter the current reporting structure of the 
Secret Service, as proposed by the Senate.

                         Provisions Not Adopted

      The conference agreement deletes section 514 of the House 
bill amending the Homeland Security Act to establish a Chief 
Procurement Officer within the Department and to modify the 
reporting structure for the Chief Financial Officer and the 
Chief Information Officer.
      The conference agreement deletes section 525 of the House 
bill making an unspecified reduction of $50,000,000 to the 
Office of the Under Secretary for Management, and increasing 
firefighter assistance grants under Title III of this Act by 
the same amount.
      The conference agreement deletes Section 513 of the 
Senate bill prohibiting the use of funds for contracting out 
full time employee equivalent positions for which funds have 
been appropriated unless the House and Senate Committees on 
Appropriations are notified 15 days in advance. This provision 
is addressed in the statement of managers.
      The conference agreement deletes Section 515 of the 
Senate bill prohibiting the use of funds to process or approve 
a competition under Office of Management and Budget Circular A-
76 for services provided as of June 1, 2004, by certain 
employees of the Bureau of Citizenship and Immigration 
Services. This issue is addressed in Section 527.
      The conference agreement deletes section 517 of the 
Senate bill directing FEMA to investigate the Shockoe Creek 
drain field in Richmond, VA, to determine means of preventing 
future damage from floods and other natural disasters. This 
requirement is addressed in the statement of managers.
      The conference agreement deletes section 518 of the 
Senate bill providing an additional $200,000,000 for new ICE 
Air and Marine airbases, $50,000,000 for Federal Air Marshals, 
$50,000,000 for non-profit organization assistance through 
SLGCP, $50,000,000 for firefighter assistance grants, 
$20,000,000 for Emergency Management and Performance Grants 
(EMPGs), and extending Customs user fees until June 1, 2005.
      The conference agreement deletes section 519 of the 
Senate bill providing an additional $150,000,000 for CBP 
salaries and expenses, $100,000,000 for ICE salaries and 
expenses, $128,000,000 for rail and transit security grants, 
$36,000,000 for EMPGs, and extending Customs user fees until 
September 30, 2005.
      The conference agreement deletes section 520 of the 
Senate bill providing $5,000,000 out of the funds provided for 
Air and Marine Interdiction, Operations, Maintenance, and 
Procurement for a pilot project to test interoperable 
communications between the Northern Border Air Wing in 
Bellingham, WA and local law enforcement. This requirement is 
addressed in the statement of managers.
      The conference agreement deletes section 521 of the 
Senate bill requiring the development of an integrated 
transportation security plan no later than February 1, 2005. 
This requirement is addressed in the statement of managers.
      The conference agreement deletes section 522 of the 
Senate bill requiring a report on goods purchased by the 
Department that were manufactured outside the U.S. This 
requirement is addressed in the statement of managers.
      The conference agreement deletes section 524 of the 
Senate bill providing for the continued support of the New 
Mexico National Guard for the performance of vehicle and cargo 
inspection activities to support law enforcement activities. 
This requirement is addressed in the statement of managers.
      The conference agreement deletes section 525 of the 
Senate bill requiring a report on HSPD-7 regarding the mapping 
of the U.S. critical infrastructure, assessment of state and 
local resources, and the Department's plan for geospatial 
information systems management, and further requiring reporting 
on the Chief Information Officer's implementation of geospatial 
capability. This requirement is addressed in the statement of 
managers.
      The conference agreement deletes section 527 of the 
Senate bill requiring status reports on the number of active 
Federal Air Marshals every 90 days. This requirement is 
addressed in the statement of managers.
      The conference agreement deletes section 528 of the 
Senate bill requiring a report not later than 180 days after 
enactment on the personnel policies of the Department that 
apply to the employment of airport screeners in TSA with 
particular emphasis on compliance with equal opportunity and 
veterans preference laws. This requirement is addressed in the 
statement of managers.
      The conference agreement deletes section 529 of the 
Senate bill directing that none of the funds may be used for 
implementation of any policy or practice that reveals the 
identity of a Federal Air Marshal. This requirement is 
addressed in the statement of managers.
      The conference agreement deletes section 530 of the 
Senate bill requiring a report from the secretary on protecting 
commercial aircraft from MANPADS. This requirement is addressed 
in the statement of managers.
      The conference agreement deletes section 532 of the 
Senate bill requiring the submittal of data-mining reports from 
the head of each agency or relevant privacy officer 90 days 
after the end of fiscal year 2005. This requirement is 
addressed in the statement of managers.
      The conference agreement deletes section 533 of the 
Senate bill directing FEMA to provide $4,450,000 from within 
funds currently available to mental health counseling entities. 
This requirement is addressed in the statement of managers.
      The conference agreement deletes section 534 of the 
Senate bill reflecting the sense of the Senate that the 
Information Analysis and Infrastructure Protection Directorate 
should work with the American Red Cross. This requirement is 
addressed in the statement of managers.
      The conference agreement deletes section 535 of the 
Senate bill reflecting the sense of the Senate that the 
Director of SLGCP be authorized to reprogram State grant funds 
to address specific security requirements that arise after the 
State has submitted its application. This requirement is 
addressed in the statement of managers.
      The conference agreement deletes section 536 of the 
Senate bill directing FEMA to periodically report on the 
representation of American Indians, Alaska Natives, and Native 
Hawaiians in the Disaster Assistance Employee cadres. This 
requirement is addressed in the statement of managers.
      The conference agreement deletes section 537 of the 
Senate bill amending the Homeland Security Act to allow the 
Chief Financial Officer and the Chief Information Officer to 
report directly to the Secretary by striking dual report 
language.
      The conference agreement deletes section 538 of the 
Senate bill amending P.L. 108-137.
      The conference agreement deletes section 539 of the 
Senate bill authorizing the Secretary of Agriculture to deploy 
disaster liaisons to Department of Agriculture Service Centers 
in a federally declared disaster area whenever FEMA personnel 
are deployed in that area.

                       CONFERENCE RECOMMENDATIONS

      The conference agreement's detailed funding 
recommendations for programs in this bill are contained in the 
following table:


                   Conference Total--With Comparisons

      The total new budget (obligational) authority for the 
fiscal year 2005 recommended by the Committee of Conference, 
with comparisons to the fiscal year 2004 amount, the 2005 
budget estimates, and the House and Senate bills for 2005 
follow:

                        [In thousands of dollars]

New budget (obligational) authority, fiscal year 2004...     $37,048,446
Budget estimates of new (obligational) authority, fiscal 
    year 2005...........................................      32,189,925
House bill, fiscal year 2005............................      33,085,401
Senate bill, fiscal year 2005...........................      36,128,460
Conference agreement, fiscal year 2005..................      33,085,460
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 
      2004..............................................      -3,962,986
    Budget estimates of new (obligational) authority, 
      fiscal year 2005..................................        +895,535
    House bill, fiscal year 2005........................             +59
    Senate bill, fiscal year 2005.......................      -3,043,000

                                   Harold Rogers,
                                   Bill Young,
                                   Frank R. Wolf,
                                   Zach Wamp,
                                   Tom Latham,
                                   Jo Ann Emerson,
                                   Kay Granger,
                                   John E. Sweeney,
                                   Don Sherwood,
                                 Managers on the Part of the House.

                                   Thad Cochran,
                                   Ted Stevens,
                                   Arlen Specter,
                                   Pete V. Domenici,
                                   Mitch McConnell,
                                   Richard Shelby,
                                   Judd Gregg,
                                   Ben Nighthorse Campbell,
                                   Larry Craig,
                                Managers on the Part of the Senate.

                                  
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